06 November 2008
SUOZZI ANNOUNCES MEASURES TO PREVENT
& ALLEVIATE FORECLOSURES IN NASSAU COUNTY
Calls on banks to put 90-day moratorium on foreclosures
Mineola, NY – Nassau County Executive Thomas R. Suozzi, joined by financial institutions, servicers, developers and not-for-profits, today announced a framework for the Neighborhood Stabilization Program in Nassau County and the formation of the Long Island Housing Crisis Task Force, which will mitigate foreclosures in Nassau County and on Long Island.
Nassau County's Office of Housing and Intergovernmental Affairs (OHIA) has received a grant of $7,767,916 for the Office of Housing and Urban Development's (HUD) new Neighborhood Stabilization Program (NSP). In order to maximize the benefit to Nassau County residents, Nassau County will be teaming up with JP Morgan Chase, Citi and other mortgage lenders, in addition to not-for-profit organizations and developers to stabilize communities. The Long Island Housing Crisis Task Force is a public private partnership created to address the growing foreclosure crisis in Nassau County.
In light of JP Morgan Chase's decision not to place any loans in foreclosure for at least 90 days while it develops new payment plans for at-risk homeowners, Nassau County Executive Suozzi today called on all mortgage lenders to implement a 90-day moratorium on all foreclosures. This will prevent more homes from going into immediate foreclosure and instead provide a 90-day "grace period" to seek re-financing options and Loss Mitigation Counseling Services.
"Nassau County residents are being affected more and more every day by the economic crisis the rest of the nation is experiencing. With over 6,000 foreclosure filings, it is clear that our residents are in need of assistance and the $7.8 million grant will enable us to provide some relief to communities and residents that were hardest hit by the foreclosures," said County Executive Suozzi. "The services provided by the Nassau County Office of Housing and Intergovernmental Affairs, The Long Island Housing Crisis Task Force, and grants provided by various Federal and State agencies will all encourage sustainable homeownership in Nassau County."
The $7.9 million grant is provided through HUD's Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008 and totals $3.92 billion nationally. Addressing the crisis of rising foreclosures and falling home values, these funds will provide targeted emergency assistance to state and local governments for acquisition and redevelopment of foreclosed properties that might otherwise become sources of abandonment and blight within their communities.
In determining the allocations, HUD followed Congress's direction that grants be targeted to areas based on the number/percent of foreclosures, sub-prime mortgages and mortgage defaults and delinquencies. HUD took a data driven approach to this process, relying on numerous data sets from government agencies and private sources.
The NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. In addition, the Agency seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers, under this program, obtain a mortgage loan from a lender who agrees to comply with sound lending practices.
Nassau County's Office of Housing and Intergovernmental Affairs has issued a Request for Qualifications and is accepting responses through November 7, 2008. Any interested parties may complete an application, to be found online at: http://www.nassaucountyny.gov/agencies/OHIA/NassauCountyOHIAapplications.html
Nassau County residents in need of homeowner assistance may contact the following services. All services are provided free of charge by the County.
- Nassau County Homeownership Foreclosure Hotline
- Home Equity Conversion Mortgage Counseling, Loss Mitigation, Mortgage Delinquency & Default Resolution Counseling
- (516) 571-HOME (4663)
- Nassau County Homeownership Center HUD Certified Housing Counseling Agency
- Fair Housing Assistance, Home Improvement & Rehabilitation Counseling, Homebuyer Education, Mobility & Relocation Counseling, Money Debt Management, Postpurchase Counseling, Predatory Lending, Prepurchase Counseling, Renters Assistance and Services for Homeless
- (516) 572-1903
