Statement from NACEDA Executive Director Jane DeMarines

Housing Legislation Will Lessen Foreclosure Damage to Low-Income Neighborhoods

On behalf of community development groups working to revitalize neighborhoods across the country, the National Alliance of Community Economic Development Associations (NACEDA) applauds Congress for passing, and the President for signing, the housing relief bill: H.R. 3221.

We especially value their efforts in including the $3.9 billion in Community Development Block Grants (CDBG) funding for the purchase and resale of foreclosed properties to prevent neighborhood blight. These Neighborhood Stabilization funds will help to reverse the devastating impact on neighborhoods wracked by foreclosures. Additionally, tens of thousands of homeowners across the country may be spared foreclosure through new FHA expansion and programs.

An analysis by Credit Suisse Bank predicts an additional 1.4 million foreclosures will occur in the next two years, and possibly 6.5 million by 2012. The majority of these foreclosures are occurring in moderate and low-income neighborhoods. The housing bill recognizes this need with the Neighborhood Stabilization funding for cities and communities to deal with the long-term devastation of foreclosed properties.

Our organization represents more than 2,400 community development corporations (CDCs) through state, city and regional associations that are working on the frontlines of revitalization of low-income neighborhoods nationwide, including foreclosure counseling, and vacant property disposition, trying to prevent further disinvestment of their communities.

While each foreclosure is devastating to the families involved, each also impacts the value of the entire neighborhood and vacant properties become a breeding ground for crime and blight. The current housing legislation is correct in recognizing the need to deal with a problem that can grow exponentially if not dealt with aggressively.

###

About NACEDA and the CDC Industry

Through its member network state associations NACEDA represents more than 2,400 community development corporations. In 2005, as an industry total (aggregate) CDCs produced/created: 1.3 million homes (since 1988), 774,000 new jobs and 126 million sq feet of commercial/industrial space, housing for special needs populations and nearly 2/3 of CDCs offer homeownership counseling. Visit our website: www.NACEDA.org.