FOR IMMEDIATE RELEASE
September 20 , 2007
Contact: Carissa Cardone, 312-612-1049, Cardone@tricomassociates.com
Erin Angell, 202-220-6317, eangell@nw.org
Ohio Housing Finance Agency Adds $3.1 Million to NeighborWorks Ohio Foreclosure Prevention Tool Box
New Fund is First to Assist Middle Income Homeowners
Ohio Groups Create New Loan Product to Fight Foreclosures
Columbus, Ohio – Twelve Ohio nonprofits that are part of the NeighborWorks® Ohio Foreclosure Prevention Initiative, will participate in distributing $3.1 million in flexible loans from the Ohio Housing Finance Agency (OHFA). In combination with an investment of over $3 million from NeighborWorks® America, this is a much-needed foreclosure prevention boost in Ohio.
The OHFA grant will assist middle income homeowners and provide up to $3,000 in zero percent deferred soft second loans to borrowers facing foreclosure, with a possibility of going up to $5,000 depending on the amount of the mortgage payment.
The OHFA funds, together with the previous award of $1.5 million from the Office of Housing and Community Partnerships and the NeighborWorks grants, are expected to enable the Ohio organizations to assist over 1,500 Ohio families in avoiding foreclosure.
“This is another tool in the toolbox that will help us rebuild Ohio communities,” said Lou Tisler, executive director of Neighborhood Housing Services of Greater Cleveland, the organization administering the OHFA funds. “We were looking for a way to help families with higher incomes but who are getting behind on their mortgage and on the verge of getting into trouble. Now we can help more low- and middle-income borrowers, which is important because this problem is spreading into middle-income neighborhoods. Some organizations actually had a waiting list for these grants because there were so many families who weren’t eligible for the previous funds meant for low income families,” said Tisler.
NeighborWorks organizations educate homeowners through financial literacy, homeownership education and counseling, working with the Homeowner’s™ HOPE Hotline – 888-995-HOPE (4673) – to connect homeowners at risk of foreclosure with HUD-certified counselors.
“OHFA generally focuses on first-time homebuyer products, so this is one of their first sustainability-focused products,” said Tisler. “Coupled with a refinance product they recently made available, OHFA is enabling organizations in the NeighborWorks Ohio Foreclosure Prevention Initiative to develop the cutting edge products that will help all levels of homebuyers get out of this crisis.”
Sparked by 1978 legislation, NeighborWorks America created the NeighborWorks network of community development nonprofits charged with closing the homeownership gap; improving financial literacy; rebuilding and repairing properties; developing affordable multifamily units; and, using community development strategies to improve safety and build wealth. In 2007, NeighborWorks America will provide over $75 million in grants to its national network of 244 nonprofit organizations operating in 4,500 communities.
The need for NeighborWorks organizations has never been greater. High quality, affordable rental housing is needed to build healthy and sustainable communities. Personal debt is rising among consumers. Mortgages are becoming increasingly complex and risky, which means homeowners are becoming progressively more susceptible to foreclosure. And, stubborn wealth gaps persist.
“As stewards of taxpayer dollars, NeighborWorks ensures our investments are working in ways that truly make a difference,” said NeighborWorks America Great Lakes District Director Paul Poston. “We thank Congress and our other private, philanthropic and public funders who make our work to empower consumers and strengthen neighborhoods possible.”
For more information about the Ohio NeighborWorks Foreclosure Prevention program, please contact Carissa Cardone at 312-612-1049 or Cardone@tricomassociates.com or Erin Angell, 202-220-6317 or eangell@nw.org.
The 12 participating organizations in Ohio are: Columbus Housing Partnership; East Akron Neighborhood Development Corporation; Neighborhood Conservation Services of Barberton, Inc.; Home Ownership Center of Greater Cincinnati; Neighborhood Housing Services of Greater Cleveland; St. Mary Development Corporation; Neighborhood Housing Services of Toledo, Inc.; Neighborhood Housing Services of Hamilton, Inc.; Neighborhood Development Services; Rural Opportunities, Inc. Ohio; Corporation for Ohio Appalachian Development; and Neighborhood Housing Partnership of Greater Springfield.
About NeighborWorks America
NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. To date, we have assisted nearly 850,000 low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 235 community development organizations working in 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $12.4 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals. www.nw.org.
back to top
