IN "EMERGENCY mortgage aid bogged down," you write that, according to White House spokesman Tony Fratto, the $4 billion in community stabilization funding in the pending housing legislation "would most likely benefit the banks that now own the properties."
This is not true. No one wins from foreclosures. After a foreclosure, both the former homeowner and the lender incur significant losses, often as much as 50 cents on the dollar. If enacted, the proposed funding would restore more than 1,200 foreclosed properties across Massachusetts to productive use, providing safe, affordable housing for low- and moderate-income families and helping to heal communities plagued by vacancy and abandonment.
In addition, rehabilitating those homes is anticipated to generate nearly 1,500 new jobs in this state alone, most of which would be in construction. The benefits to Massachusetts families, neighborhoods, and economy - not banks - are clear. Under the Senate-passed formula, Massachusetts stands to benefit from $74.3 million in direct funds for neighborhood stabilization. With nearly 20,000 homes in foreclosure across the state, this funding is much needed.
AARON GORNSTEIN
Executive director
Citizens' Housing and Planning Association
Boston 
