For Immediate Release: 5/8/2009 3:15 pm
Boston, MA (February 2, 2009) - Using its ability to provide private-sector funds for affordable housing and neighborhood stabilization, MHP has committed $250,000 in bank grant funding to advance receivership initiatives in Worcester and Springfield.
The receivership initiative is an effort to work with municipalities to stabilize troubled properties and prevent the displacement of tenants. Many properties, whether going through foreclosure processes or simply due to neglect, face condemnation for violations of the state sanitary code. Violations include no heat as well as more significant problems threatening the health and safety of the occupants.
"When properties become so neglected by landlords, intervention by the city with the support of receivership program administrators and local housing courts is seen as necessary to avoid the displacement of families," said CHI Senior Advisor Rita Farrell. "The receivership initiative aims to support cities and receivers when property owners have reneged on their responsibilities."
In Springfield, city officials have been working closely with MHP and HAP, Inc. to structure a program that responds to a significant number of sanitary code violations that are threatening to displace many households.
In December alone, an excess of 20 no-heat cases were reported to Springfield city officials. In some cases, families were displaced from their homes because of inaction by the owners to correct the heating problem. Using MHP funds to repair and/or fill oil tanks, known as the "quick" heat receivership option, is an extremely high priority in the city.
"The receivership program is another tool that, in some instances, allows us to make minor repairs or provide utilities when an owner is unable or unwilling to do so," said Carl Dietz, acting director of the Springfield Office of Housing. "With this program, we can often times preserve tenancy and prevent the need to relocate families from their homes, which is especially disruptive when children are involved."
In Worcester, MHP has designated Worcester Community Housing Resources (WCHR) as the program administrator and is supporting the city of Worcester's efforts to use receivership to stabilize properties and neighborhoods.
Worcester City Manager Michael V. O'Brien said that "in recent months the Administration's Property Review Team has helped more than 30 families stay in their homes through the use of receivership. These are properties that we have been able to stabilize, rather than condemn. We are very grateful to MHP and the Attorney General for their timely and much needed assistance to bolster and sustain the successful use of housing receivership."
"Worcester Community Housing Resources commends Massachusetts Housing Partnership for their commitment to affordable housing and neighborhood stabilization," added Matthew E. Wally, WCHR's executive director. "In order to mitigate a threat as daunting as foreclosure we are fortunate to be working alongside such great partners as MHP and the City of Worcester."
MHP is pursuing additional funds needed to continue the receivership initiative and possibly expand the program to New Bedford and other cities. MHP has collaborated with the state Department of Housing and Community Development and the Attorney General's office to provide technical assistance to communities in need of receivership program administration.
MHP is a public non-profit housing organization that is funded by the banking industry due to a 1990 state law that requires companies that purchase Massachusetts banks to provide funds to MHP for affordable housing. Since then, MHP's loan pool has grown to over $1 billion and it has financed over 15,000 rental housing units, helped over 12,000 families purchase their first home and has provided technical assistance to over 300 communities in their efforts to increase affordable housing.
For further information, contact MHP's Rita Farrell at rfarrell@mhp.net.
