Foreclosure

The last two years have seen significant changes in the Massachusetts housing market and the national economy. The market has significantly slowed and many Massachusetts communities are seriously impacted by sub-prime mortgage lending practices and the home foreclosure crisis that threatens the economic stability of households and communities across the nation. The neighborhood revitalization gains that CDCs spearheaded in their communities after the last housing downturn in the early 1990’s are threatened by disinvestment and destabilization as significant numbers of foreclosed and distressed properties are placed on the market. During 2008 in some communities, housing values have fallen which severely impacts home sales, tax collection, and the movement of households in to and out of the neighborhood.

The home foreclosure crisis illustrates why MACDC works to promote equitable neighborhood change that is sustainable across periods of market strength and weakness. Neighborhood revitalization efforts must include equitable and sustainable strategies so that change benefits both current and new residents in the short and long-term.

A significant legislative win was achieved last November, when Massachusetts passed one of the most comprehensive foreclosure prevention laws in the nation. MACDC, and our allies, worked with the Governor and the Legislature to create Chapter 206, An Act Preserving and Protecting Homeownership. Chapter 206 was part of MACDC’s LIFT Campaign, launched by our members in 2006.

MACDC played a leadership role in the State’s newly created Foreclosed Properties Task Force. The Task Force was formed by MACDC, CHAPA, and the Urban Land Institute, which hosted a forum on foreclosed properties in January of 2008 that was the springboard for the Task Force. MACDC and the Task Force are creating a broad-based state initiative to reclaim foreclosed properties that are threatening our communities including help for non-profits and cities who want to purchase properties from lenders who have foreclosed, adequate subsidy funding to ensure that the properties are properly renovated and secured as long term affordable housing, assistance to homebuyers who purchase foreclosed properties, advocacy for tenants who are often evicted from such properties, support for cities to strengthen code enforcement, and support for the nonprofit organizations that play such a crucial role in this effort.