BERWYN ONE OF 6 COMMUNITIES PICKED BY GOVERNOR QUINN

[tony la]

Governor Quinn Announces Plan to Revitalize Vacant, Foreclosed Homes in Six Communities .
Friday, 03 February 2012

BERWYN--(ENEWSPF)--February 3, 2012. Governor Pat Quinn was joined today by Cook County Board President Toni Preckwinkle and six Cook County mayors to announce a new initiative to return vacant, foreclosed properties to productive use. An initiative laid out in the Governor's State of the State address earlier this week, the Illinois Building Blocks Pilot Program will rehabilitate vacant properties and increase affordable housing in the communities of Berwyn, Chicago Heights, Maywood, Park Forest, Riverdale and South Holland.

In the pilot phase of the program announced today, a $55 million joint commitment from the state of Illinois and Cook County will help the six communities stabilize neighborhoods, protect property values, preserve the existing local tax base and increase affordable housing stock. The localities selected for the pilot have been among those hardest hit by the foreclosure crisis.

"The Illinois Building Blocks Pilot Program is a strategic effort to help stabilize communities struggling with the foreclosure crisis," Governor Quinn said. "By turning vacant properties into affordable housing, we're assisting existing homeowners, strengthening hard-hit neighborhoods and boosting affordable homeownership options for working families."

Abandoned properties burden communities by creating blight, attracting crime and reducing the local tax rolls. On average, homes located the same block as a foreclosed property can drop $8,000 to $10,000 in value.

Returning properties to productive use benefits communities by creating jobs and increasing local revenue from property taxes and real estate taxes. Communities also benefit from increased consumer spending by contractors, as well as residents furnishing their new homes. The increase in affordable housing stock helps families starting out or starting again, and promotes economic growth.

"I am excited to partner with Governor Quinn and the state of Illinois in this joint effort to stem the tide of the foreclosure crisis in our underserved communities, and revitalize Cook County's neighborhoods," Cook County President Preckwinkle said. "We must continue to focus on a regional economic development strategy that more effectively leverages our resources to spur economic growth, and the Building Blocks program is a step in the right direction."

The Illinois Building Blocks Program, administered by the Illinois Housing Development Authority (IHDA), has three components:

Financing to rehabilitate vacant properties to prepare them for productive use and for sale;
Assistance to homeowners to purchase homes in pilot communities; and
Support for existing homeowners in the communities to prevent additional foreclosures.
The rehabilitation component includes $40 million from the Illinois Jobs Now! capital program and $10 million from Cook County to facilitate the acquisition and rehabilitation of vacant properties within the targeted areas. As the rehabbed homes are sold, funds are replenished into the revolving fund to purchase and rehabilitate additional properties. The pilot program could rehabilitate at least 500 properties in the six communities.

The second component provides $5 million in assistance for homeowners to purchase vacant properties, including those rehabilitated in the pilot project. Grants of $10,000 for down payment and closing cost assistance are available for up to 500 homebuyers purchasing vacant properties. The program also includes affordable first position mortgages for qualified buyers in order to make the cost of purchasing vacant homes in the communities as affordable as possible. The pilot also permits a lower FICO score threshold, so that a greater number of potential homebuyers can qualify for loans.

The Illinois Building Blocks Program will also help current homeowners in the six communities by providing tools to prevent foreclosure. The efforts will build on the Illinois Foreclosure Prevention Network (KeepYourHomeIllinois.org), launched in the Governor's State of the State address. Programs in the six communities will include free one-on-one foreclosure counseling, loan modifications, and access to financial assistance to homeowners who have trouble paying their mortgage payments due to unemployment or under-employment.

The Illinois Building Blocks Pilot Program builds upon existing efforts already under way in many of these communities, particularly federally-funded Neighborhood Stabilization Program (NSP) development. Under Governor Quinn, Illinois has committed $58 million in NSP funding and is already restoring nearly 450 foreclosed or vacant housing units in Illinois, creating an estimated 580 jobs.

"With the highest inventory of foreclosed homes in the nation, the Chicago region requires a focused foreclosure response like the Illinois Building Blocks Pilot Program," said Mary Kenney, IHDA Executive Director. "This program represents a multifaceted approach and is an important part of Governor Quinn's overall housing strategy to address the economic, public safety and quality of life issues caused by abandoned and foreclosed properties."

The Illinois Housing Development Authority (www.ihda.org) is an independent, self-supporting bonding authority that finances the creation and preservation of affordable housing throughout Illinois. Since 1967, IHDA has allocated more than $10.6 billion to finance more than 215,000 affordable housing units for the residents of Illinois.

[OakParkSpartan]

The pilot also permits a lower FICO score threshold, so that a greater number of potential homebuyers can qualify for loans.

Um...how did we get in this mess again?

[Mrs.Pete]

The pilot also permits a lower FICO score threshold, so that a greater number of potential homebuyers can qualify for loans.

Wasn't kinda sketchy FICO scores part of the reason for forclosures?

[HKay]

Lets see...Quinn plus Preckwinkle, add a few mil in cash, mix with the known history of corruption, add a dash of gross incompetence, shake well...what could possibly go wrong?

[berwynson]

.............will also help current homeowners in the six communities by providing tools to prevent foreclosure.  .........

"Tools" to prevent foreclosure:

Stop folks from losing their jobs.
Stop folks from buying homes "no money down".
Stop giving folks taxpayer-supplied monies to buy/remain in their homes, both rented and owned.
Block banks from doing what the definition of "banking" implies.
And on, and on, ad nauseum.

Dig deep enough, and it surfaces that government manipulation of our economy was as largely responsible for the present economy as any other factor. (for example: steal the funds from the declared-sacrosanct S/S system).

berwynson

[watcher]

The pilot also permits a lower FICO score threshold, so that a greater number of potential homebuyers can qualify for loans.

Wasn't kinda sketchy FICO scores part of the reason for forclosures?

Good question. What you say has been implied, but the question has not been answered.
Losing 10 million jobs didn't help either? Somebody with great FICO scores and no job?
Somebody with so-so FICO scores and a job? Somebody with no FICO score at all, but a steady cash flow?

You'd think with our hi-tech resources, it would be an easy matter to end the endless speculation, finger pointing,  SWAGging and nail down the proximate source of the problem. That hasn't happened.

Why do you think that is?

[pkd50]

Chicago Heights, Maywood, Park Forest, Riverdale and South Holland?  Never did I think Berwyn would be lumped in with these towns for anything.  I hope it works out well.

[tony la]

Everyone has some valid points.  Just let me say the minimum fico score today is around 620.  The minimum score allowed under this program is 600.  Not a huge difference.  Again it means nothing without  confidence in your present job, or a job period.  Four years ago when money was falling from the sky they were accepting 560.

I have some reservations about the program, I must say.  There will be some bumps in the road on this program, hopefully they will catch them quick, and have the ability to rite the ship when it happens.

The program requires foreclosure prevention counseling before and after the loan is made.

[bigolo]

f@CKING GREAT! Daley dumps his section eight on Berwyn! Quinn, dumps people who can't or will not pay the mortgage on Berwyn! Damn, this used to be a good town!!! 

[bigolo]

To all who think that gangs and violence ruin this town, all you have to do is look at your politicians and Banker's faces ! They are the one's who are truly fucking this community up! WOW!

[bigolo]

Just wait until next year's tax bill comes in the mail! I'm starting to think we are nothing more than a bunch of law abiding suckers! I guess it pays to have nothing! Fuck this! Enough is Enough!!!

[buzz]

What do you mean wait ?  I already rec'd my 1st installment, due March 1.

[bigolo]

So did I! And It was a little more than last year's first installment! They will
keep asking for more, more, and more! Fucked up hey!

[buzz]

There must be something wrong with me.  I can't even get angry about this shit.
  I can only think about how much hurt could have been avoided if the banks would have helped families from the very beginning.  They could have re-structured loans/re-financed for a good percentage of those folks.  Those properties wouldn't be vacant, in need of repair, an eye sore for the community.  And they wouldn't be costing tax payers this money.

[bigolo]

 

[Terri]

Chicago Heights, Maywood, Park Forest, Riverdale and South Holland?  Never did I think Berwyn would be lumped in with these towns for anything.  I hope it works out well.

There goes the rising.

[Bonster]

Chicago Heights, Maywood, Park Forest, Riverdale and South Holland?  Never did I think Berwyn would be lumped in with these towns for anything.  I hope it works out well.

There goes the rising.

I thought that went with the ghetto cameras. 

[berwyn senator]

Why was Berwyn picked? I have to believe there are communities that are in worse shape. Will this just be a repeat of what created this whole mess, to begin with. Will the illegal conversions be removed before these homes are resold? Are they again going to be sold to the same kind that left them to begin with? Berwyn needs to take control and not just leave our future up to these fool politicians! They never do things out of the kindness of their hearts,or for our best interest,their pockets come first!!!

[justme]

The pilot also permits a lower FICO score threshold, so that a greater number of potential homebuyers can qualify for loans.

Wasn't kinda sketchy FICO scores part of the reason for forclosures?

Exactly. So give it a few years and we will have another foreclosure mess. It's about giving people money for homes that they cannot afford. Oh sure give them the down payment but what happens when tax bills come out and their mortgage payment increases? When they need to do major home repairs? It will be exactly what happened last time, it's  a never ending circle. They will just up and leave. People who have no business buying houses will once again create another mess. And it's not like the job situation is going to improve any time soon.  Now I am all for helping those who have lived in their homes for years and all of a sudden lose their job or get sick and cannot afford to make mortgage payments-by all means help them as long as they can provide records of steady payments, income, etc. But stop giving financial assistance to anyone just because they have  a pulse. And those credit counseling don't do  any good. The people next door to me went through this. They got a balloon loan and now their house is literally falling apart because they can't afford repairs and they have fallen 6 months behind on their water bill. And this was mostly because they were not exactly accurate on their loan application about their income. (Don't ask how I know this, I just do  ) 

It would be interesting to find out why Berwyn was picked. I mean what is the foreclosure stats for Cicero vs. Berwyn that lead to us being picked?

[mustang54]

  Senator the question you asked is what has bothered me for a while now. "Are they again going to be sold to the same kind that left them to begin with? " They could be sold to worse! The homes are now worth far less than when those people bought them.