State plan to take back foreclosed homes

LYNN – Gov. Deval Patrick along with state housing and finance officials Monday unveiled a new plan, the first of its kind in the U.S., to take back foreclosed properties in cities like Lynn, Peabody, Revere and Salem in an effort to stabilize blighted neighborhoods.The non-profit Citizens’ Housing and Planning Association (CHAPA), in conjunction with the Patrick administration and a wide range of financial and housing organizations in cities and towns throughout the state, launched the Massachusetts Foreclosed Properties Initiative during a ceremony in New Bedford.”Homeowners and neighborhoods here in New Bedford and across Massachusetts are feeling the harmful effects of the nation’s foreclosure crisis,” said Gov. Patrick. “By connecting banks that own foreclosed properties with organizations that create affordable housing opportunities, we can and we will revitalize communities throughout our commonwealth.”CHAPA designed the program in response to a rise in Massachusetts foreclosure deeds last year, up nearly 400 percent from 2006.These properties – more than 12,000 – are disproportionately concentrated in low- and moderate-income neighborhoods and are causing destabilization in many communities, including New Bedford, according to CHAPA.”Our goal with this program is to stabilize neighborhoods affected by this crisis by reducing vacant and abandoned units and by providing property tax revenues to municipalities who need it now more than ever,” said Aaron Gornstein, executive director for CHAPA. “We are also aiming to ensure that the sales of these properties are done in a sustainable manner that does not set the stage for a future cycle of foreclosures or property decline.”According to Gornstein, CHAPA will serve as a foreclosed properties clearinghouse connecting banks that own foreclosed properties with local organizations, which will purchase the properties and upgrade these homes for low and moderate income families. The goal is to get these properties revitalized, re-occupied and back on the tax rolls.The program’s local partners include approximately 50 housing organizations and 30 municipal partners, including Lynn, Peabody, Revere and Salem. Other partner communities include: Attleboro, Barnstable, Billerica, Boston, Brockton, Chelsea, Chicopee, Fall River, Falmouth, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Marlborough, Marshfield, Methuen, Milford, New Bedford, Quincy, Somerville, Springfield, Taunton, Weymouth and Worcester.In Lynn, participating organizations include Affordable Housing Associates of Lynn, Lynn Investing in Neighborhood Corporation, Lynn Housing Authority and Neighborhood Development, and Neighborhood Development Associates.The program includes two main components: Participating banks will provide a first look to eligible purchasers prior to listing the property on the open market. During this time period, the seller will provide local organizations with physical access to the property and offer an adjusted sale price for the property.In the second part of the program, the participating banks will provide the opportunity for local organizations to purchase multiple properties in a community as part of a bulk sale, particularly in areas with a higher concentration of foreclosed properties. This will allow them to renovate properties on a whole block or in larger areas of a neighborhood, thereby having a greater impact on revitalization efforts, Gornstein said.”The key to economic revival in New Bedford is promoting and maintaining safe, vibrant neighborhoods. This program can accomplish this by enabling families to invest in our city through home ownership. Every family dreams of having a house to call their own. And, owner occupied houses increase the value of all other homes in the immediate neighborhood and across the city,” said New Bedford Mayor Scott W. Lang.