Massachusetts Gets Federal Funds to Combat Foreclosures

October 1st, 2008

Foreclosure remedial plans have started rolling and Massachusetts has got federal funds ($54.8 million) to combat the growing menace of foreclosures.

One of the worst affected regions stretches from Worcester to Springfield. HUD is providing the funds. Boston has been given $4.23 million, Springfield $ 2.57million, Worcester $2.39 million and Brockton $2.15 million. The Commonwealth received the largest chunk of grant with $43.47 million. The money would be distributed throughout the state. Tina Brooks of Massachusetts Executive Office of Housing and Economic Development said that their target is to see that the funds are utilized on purchasing and refurbishing foreclosed units. Each cent would be put into use to contain foreclosures advancing in this way.

State and local officials had been awaiting release of these funds. It is a part of the housing stabilization grant that was passed by Congress last summer to help those regions that have been particularly hard hit by foreclosures.

Across Massachusetts foreclosure listings doubled to 8,804 from 4,920 postings of the previous year. It showed a double jump by Warren Group that is engaged in tracking foreclosures. In August there were 998 foreclosures noted.

Thomas M. Menino, the Mayor of Boston commented, “Foreclosure is a personal tragedy for families but also a disaster for neighborhoods.” He wanted to place the funds on the right bleeding spot to plug it. He said that the city would concentrate on the worst hit areas like Worcester, Hyde Park and Roxbury. The strategy is to purchase and repair foreclosed houses and then offer financial as well as technical help to potential new nest builders who want to settle in these localities. Already 12 units have been bought situated on Hendry Street, Dorchester. This was a badly mauled foreclosure zone.

The government bodies have 18 months time to utilize the funds. HUD reported that money would also be allowed to be used for economically weak buyers so as to cover the down payments or closing fees. HUD is also planning to hold local conferences as well as a national housing summit in Washington on 7th and 8th October. Steve Preston of HUD said, “To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way.” He added that the real work had begun and HUD was standing strongly behind those states and communities that have taken the worst battering from the sub-prime debacle.