Stimulus funds sought to fight foreclosures
Boston Community Capital is applying for $50 million in federal stimulus funds in an effort to dramatically expand its assistance to Massachusetts residents facing home foreclosure.
The nonprofit agency, whose mission is to build stronger communities, hopes to receive the money under a neighborhood stabilization program that is part of the American Recovery and Reinvestment Act.
Since last November, the 25-year-old Boston group has committed almost $4 million to buy vacant houses, lend money to small developers rehabilitating empty properties, and help struggling homeowners hold onto or buy back their homes.
“We’re ready now to completely scale up and really keep many more people in their homes than we’ve been able to do so far,’’ said Elyse Cherry, chief executive of Boston Community Capital.
The stimulus funds will be targeted at low- and moderate-income residents in Massachusetts cities hit hard by foreclosures: Boston, Chelsea, Revere, Everett, Lynn, Lawrence, Worcester, Fall River, and New Bedford. In some cases, homeowners who have lost their jobs or had their wages cut can no longer afford to pay their mortgages. At the same time, falling home values make it difficult for many to refinance loans because they owe more than their properties are worth.
Last year, there were 12,430 foreclosures in the state, a 62 percent increase from 2007. During the first three months of this year, 2,755 homeowners lost their properties to foreclosure.
Boston Community Capital’s goal is to assist homeowners before they are forced to move out. “The more we can keep homes from being vacant, the better off the neighborhoods are,’’ Cherry said.
Some of the agency’s staff members are working on the grant application over the holiday weekend to meet the July 17 deadline. The money, part of $1.93 billion in federal funds dedicated to combating the impact of home foreclosures nationwide, is expected to be awarded by the US Department of Housing and Urban Development in the fall.
“We have systems in place, and we’re ready to roll,’’ Cherry said.
Boston Community Capital doesn’t plan to stop at $50 million. The agency is attempting to secure $100 million in private funds, Cherry, said.
Katie Johnston Chase can be reached at johnstonchase@globe.com. 