CNYCN Newsletter 2nd Edition
Center for New York City Neighborhoods Newsletter
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Date: NOVEMBER 15, 2010 |
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About CNYCN
CNYCN in the News
CNYCN Publications
CNYCN has recorded over 10,000 homeowner intakes as of 9/2010.
The majority of homeowners are in fixed rate "prime" mortgages. Job loss remains the
primary cause for mortgage distress.
Loan Types at Intake
NYC Current Lis
Pendens Status 10/2010: 13,000 Filings, Heading to 18,000 by Year End.
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In This Issue:
CNYCN, Struggling Homeowners and Clergy Meet with Treasury Secretary Geithner
WASHINGTON, DC – On Wednesday, November 3rd, CNYCN attended a face to face meeting in Washington DC with Treasury Secretary Geithner and senior Treasury officials to discuss the current status of the foreclosure crisis. This meeting was organized by People Improving Communities through Organizing (PICO), a national community organizing entity that works with faith-based and community nonprofits to advocate for the needs of low income communities. The meeting was attended by 40 members of a nationwide coalition of clergy, Michael Hickey and Jennifer Murphy from CNYCN, struggling homeowners, and other advocates to present specific proposals for how the Administration can take a new, practical approach to fighting foreclosures and increasing the number of loan modifications.
Five key issues were discussed during the meeting:
- A call for a temporary, targeted freeze on foreclosures of owner-occupied homes to insure that proper foreclosure actions were being promulgated;
- A request to seek new strategies allowing forbearances of up to 12 months for unemployed homeowners;
- Encouragement to employ principal reductions strategies;
- Seeking greater enforcement and oversight of HAMP and modification programs in general;
- The assignment of a White House official to coordinate among various federal agencies to improve the national foreclosure strategy.
"We were impressed by the pragmatic nature of the details of each of these proposals, as they were backed by carefully researched and technical recommendations," said Michael Hickey. "We believe that we made some headway, particularly on the issues of extending unemployment supports to homeowners and implementing a targeted pause of foreclosures for owner-occupied properties. We look forward to Treasury's response to our proposals, and a follow up meeting with Assistant Treasury Secretary Michael Barr."
Secretary Geithner agreed that issues 1 and 2 were already under consideration by Treasury, and that they hoped to make substantive recommendations on these issues in the near future. The Secretary was less supportive of calls for principal reduction and enforcement, stating that limited federal funds, the complex federal legislative environment, and proscriptions on Treasury's ability to regulate hindered advancing the issues.
You can see the memo outlining the proposals at:
http://www.piconetwork.org/admin/documents/files/10-10-11-PICO-Foreclosure-Memo-revised-10-11-02-v2.pdf
"Secretary Geithner was sympathetic to our analysis, and it was clear that Treasury is trying to figure out its capacity to compel servicers to do more loan modifications," said Rev. Lucy Kolin from PICO National Network. "And that's where we may disagree. We think Treasury has much more power to hold the banks accountable than they've been willing to use."
CNYCN also met with White House domestic policy staff member Derek Douglas on the same topic. Mr. Douglas was very supportive and knowledgeable about foreclosure prevention efforts and federal programs. He requested detailed policy proposals on the issues of extending unemployment and principal reduction, which attendees collectively took as a hopeful sign. Mr. Douglas also agreed to connect the group with Diana Farrell in the National Economic Council, who currently manages foreclosure prevention policy for the administration.
The Center for NYC Neighborhoods and NYC DCA Office of Financial Empowerment Receive $848,384 for Expansion of Services to Homeowners at Risk of Foreclosure
New York, NY – The Center for New York City Neighborhoods (CNYCN) and the New York City Department of Consumer Affairs Office of Financial Empowerment (DCA's OFE) have been awarded $848,384 by the New York State Division of Housing and Community Renewal (DHCR) to provide free financial counseling services and to extend CNYCN's Call Center operations for at risk homeowners.
The funding will allow CNYCN to continue operating its foreclosure prevention hotline, which takes calls from New York City's 311 general information line, and also support the development of a new pilot program to place DCA's OFE's Financial Empowerment Center counselors within the CNYCN Network of housing counseling agencies. Thanks to this public funding, OFE financial counselors will work alongside HUD-certified housing and legal experts to provide comprehensive housing and financial counseling services to New York City homeowners in distress.
CNYCN Call Center
"Since its inception in early 2009, CNYCN's Call Center has communicated with over 10,000 homeowners through incoming calls, outreach calls and mailings, directing them to free housing counseling and legal services provided by over 70 organizations located in all five boroughs," said Michael Hickey, Executive Director of CNYCN. "DHCR's original award enabled the founding of our Call Center, and with this additional funding we will not only be able to continue this important consumer service, but extend even deeper supports to assist homeowners suffering from job loss and other economic pressures."
NYC Homeowners can be connected to the Call Center by simply dialing 311 and saying "foreclosure" to receive free services within the CNYCN network. DHCR had supported the initial development of the Call Center, and the new funding CNYCN will expand Call Center services so that operators can play a more active role in reaching and supporting homeowners fighting foreclosure.
CNYCN/OFE Pilot for Financial Counselor Outreach
The new initiative will help reach communities historically underserved by financial education providers, such as those in Staten Island, and communities with high rates of foreclosure and unemployment, including the North Bronx, northwestern Queens, Jamaica, and East New York.
"Homeowners in need are rarely struggling with their mortgages in isolation – consumer debt, household budgeting, identity theft, and other financial concerns can make an already overwhelming process feel impossible," said Jonathan Mintz, Commissioner of the Department of Consumer Affairs. "By providing New Yorkers with the 'gold standard' of financial education – one on one financial counseling – in concert with the foreclosure prevention services already offered by CNYCN, we will be able to arm clients with the tools and resources necessary to address all components of their financial picture."
The Department of Consumer Affairs Office of Financial Empowerment (OFE) is the first local government initiative in the nation with a mission to educate, empower, and protect New Yorkers with low incomes so they can build assets and make the most of their financial resources. OFE is the first program to be implemented under the Center for Economic Opportunity as part of Mayor Bloomberg's aggressive efforts to fight poverty in New York City. The City's free Financial Empowerment Centers help New Yorkers take control of their debt, improve their credit, deal with debt collection, create a budget, open a bank account, and much more. One-on-one financial counseling is provided by professional counselors in person or by phone in English, Spanish, and Chinese.
The financial empowerment counselors will work alongside the CNYCN Network Partner counselors in assisting clients who have received trial mortgage modifications to achieve a level of financial planning that allows them to reduce debt and make timely payments thereby increasing their chances of obtaining a permanent modification. They will enable clients with high non-mortgage debt to qualify for government programs such as HAMP and the Mortgage Assistance Program (MAP), and ensure that clients accessing government programs remain current on their payments. They will also support clients with budgeting strategies that can reduce their debt and improve their ability to make housing-related payments.
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Network Highlight for October 2010:
Chhaya CDC – Lead Network Partner for Queens Rise Up & Stay Put! Home Rescue Fair – Celebrates its 10-year Anniversary
Chhaya CDC was the local lead organizer of our successful Rise Up & Stay Put! Home Rescue Fair at York College with over 1,100 homeowners in attendance. Chhaya is now celebrating its 10-year Anniversary as it embarks on the next decade in providing stable housing and securing sustainable communities for South Asian and other immigrant communities in Queens.
Chhaya's trademark is its holistic approach to housing with a goal of integrating South Asians into the planning and community life of neighborhoods in Queens. Chhaya provides programs and services to South Asian immigrants in order to stabilize them in their communities through access to better education, health care, financial stability and energy conservation awareness. Chhaya's work encompasses a wide array of programs including foreclosure prevention, homeownership education and counseling, |
Chhaya YouTube Channel◊ |
tenant rights, finding legal solutions for illegally converted apartments, and voter registration. This year, Chhaya mobilized 100,000 South Asians and others in the U.S. Census effort in neighborhoods throughout Queens.
Chhaya is the only HUD-certified agency serving the South Asian community in New York City and therefore plays a critical role in conducting targeted research on the impact of foreclosure crisis.
Chhaya has experienced rapid growth over the past 10 years. Its staff of 13 come from diverse fields and includes a team of counselors and organizers for service and advocacy work. Chhaya supports not just South Asian populations, but other ethnic groups as well (foreclosure services are 55% Asian and 45% other populations). Chhaya's language capacity includes Hindi, Urdu, Bangla, Nepali and Tibetan. Most of the clients come from Southeast Queens, Richmond Hill and South Ozone Park. Chhaya serves approximately 200 clients with one-on-one counseling, another 500 a year through educational workshops. Chhaya reaches thousands of residents through media, working extensively with local ethnic press.
"We are very proud of our 10-year milestone as we have proven ourselves to our community and the mainstream by showing concrete impacts improving local communities," said Seema Agnani, Chhaya's Executive Director. "I can think of two special moments in the past decade when we made important strides for our community, Queens and New York City as a whole. The first was after September 11, when we helped hundreds of tenants, cab drivers and restaurant owners who had trouble showing that their earnings were negatively impacted by this crisis, or they were affected by unjust immigration policies. The second most important milestone was the formation of our relationships with CNYCN, National Council of La Raza and National CAPACD enabling us to help Queens homeowners avoid foreclosure. We are now an important community resource for South Asians but also for the whole borough of Queens."
Chhaya is planning to transition into a membership organization and is launching a membership drive next year. Chhaya will also focus on neighborhood stabilization and energy efficiency work. This fall, Chhaya will organize outreach campaigns working with block associations, faith based institutions, and others to increase energy awareness among homeowners and to promote access to existing weatherization programs. This work seeks to mitigate the negative health impacts of poor housing stock and reduce the disproportionate financial burdens of high energy and water costs on low-income homeowners. Chhaya will concentrate on Richmond Hill, Ozone Park, Briarwood and Jamaica, and will conduct door to door outreach informing people about available options.
www.chhayacdc.org/. |
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Center for NYC Neighborhoods Honored at National Pro Bono Week
The Center for NYC Neighborhoods (CNYCN) was honored at the National Pro Bono Week October 25th kickoff event, organized by the New York State Courts and the Office of the Mayor for its "outstanding work in providing free legal services to New Yorkers in difficult financial circumstances." The Certificate of Recognition was signed by Mayor Bloomberg.
CNYCN's recognition was presented to Michael Hickey by Deputy Mayor for Legal Affairs and Counsel Carol Robles-Román who praised the organization for its commitment of helping thousands of distressed homeowners in New York City. Deputy Mayor Robles-Roman said that she was especially pleased with CNYCN's large scale Rise Up & Stay Put! Home Rescue Fairs that brought free services from lenders, attorneys and housing counselors to more than 1,700 homeowners this summer.
This recognition comes on the heels of the new NYC Service initiative that CNYCN and other legal service partners launched with Mayor Bloomberg earlier this year: recruiting pro bono attorneys to provide free legal support for homeowners facing foreclosure. This initiative focuses on providing homeowners legal assistance during the mandatory "settlement conference." The program was designed to increase the availability and effectiveness of free legal representation for those facing foreclosure by training and dispatching volunteer attorneys to expand legal services provided by non-profit organizations. Settlement conferences represent a much-needed opportunity to many homeowners who are often unaware of their rights. Homeowners who are supported in these proceedings with legal advice have a more informed understanding of their options and obligations, and are more likely to avoid foreclosure.
The other honorees included the Brooklyn Bar Association, City Bar Justice Center, Civil Legal Advice and Resource Office, CUNY School of Law LaunchPad for Justice Fellows and Incubator Attorneys, Legal Services NYC, New York City Appleseed, New York County Lawyers Association, and New York Legal Assistance Group.
Homeowners facing foreclosure proceedings who are interested in retaining free legal services should go to www.nyc.gov or call 311. |
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