Billions in Aid for Foreclosure Crisis Containment

September 24th, 2008 | Tags: Foreclosure Crisis

Billions of dollars are being earmarked for foreclosure crisis containment. The funding will be made by Citi and Citi Foundation to help housing bodies in 12 communities across USA. It will be in the form of grants to enable them to give technical help to invigorate the communities with low to modest income. The latter group has been the worst hit by the foreclosure crisis. The call of the hour is to provide residential shelters for them.

The grants are being given through Citi Foundation Neighborhood Stabilization Planning Grants programme. It will also give technical help so that communities can avail of the $3.9 billion that is being set aside for this purpose by the recently passed bill – Housing and Recovery Art of 2008.

Citi took the initiative in announcing a support plan that will provide for private resources to help the communities to reach the federal funds. The total amount in the hands of Citi is over $1 million. It will be utilized for planning out grants of approximately $100,000 for each community. The money will make it possible for the local organizations dealing with housing to make programmes that will be specific to the needs of that particular community. It is hoped that this will bring out some form of stabilization after the disruption caused by the ongoing foreclosure crisis. The implementation work will be in the hands of HPN or Housing Partnership Network. This is an alliance at the national level that is a non-profit body with high levels of efficiency. It includes local members from selected cities.

Eric Eve of Citi said that the primary target of Citi is not only to see that foreclosure victims continue to stay in the houses that are their homes but also that this is done quickly “to support communities that are seeing the effects of foreclosures”. Citi was proud to implement the plans regarding the proper utilization of the funds that are being poured in help struggling communities so that they can make the most of these grants. New life has to be breathed in into these communities by purchasing and repairing foreclosed houses. Cit has taken on the leadership in this matter and endeavouring to mitigate the harm that has been done by the foreclosure crisis. The increased number of vacant foreclosed units has led to a proliferation of crime and spread of disease like the West Nile virus.