Latest in Neighborhood Restoration Strategy Includes Enhanced Down Payment Assistance to Promote Responsible Homeownership

Mayor Thomas M. Menino today hosted hundreds of potential homebuyers at the Perkins Community Center in Dorchester for Boston’s first ‘Homebuyer Fair’ at which residents were able to talk with realtors, mortgage lenders, nonprofit housing councilors, and City staff about foreclosed property homeownership opportunities. Fair attendees learned that the Department of Neighborhood Development’s Boston Home Center will now offer up to $25,000 in down payment assistance to buyers of foreclosed properties located in the City’s hardest hit neighborhoods.

More than 500 potential homebuyers attended Saturday's Boston Home Center Homebuyer Fair at the Perkins Community Center in Dorchester.

DND Director Evelyn Friedman (far left) and DND Deputy Director for DND's Boston Home Center, Bill Cotter (far right), were joined by representatives from the Greater Boston Real Estate Board at the Homebuyer Fair.

"We’re hoping to give qualified homebuyers the support they need to purchase properties currently tied up by big banks that can be difficult to deal with. And we have a lot of partners here today who are aiding us in these efforts," said Mayor Menino. "We don’t want to waste any time in getting the bank-owned homes in our neighborhoods back into the hands of new homeowners."

Partnering organizations included eight lenders, fourteen nonprofit community development corporations and housing counseling organizations, and nearly thirty local realtors.  

The Homebuyer Fair is part of the City’s ongoing efforts to restore those communities hardest hit by the foreclosure crisis of the last year and a half. While Boston has not been as badly affected as some other cities across the nation, there are currently some 982 Real Estate Owned (REO) homes in Boston (properties that were bought back by the lender at the foreclosure auction and have not resold in the open market).

Today’s event follows the Mayor’s recent announcement that Boston has been approved to receive $4.23 million from the U.S. Department of Housing and Urban Development (HUD) as part of the federal Neighborhood Stabilization Program (NSP), which Congress approved last July with the passage of the "Economic and Housing Recovery Act of 2008." The City also expects to benefit from a matching grant from the state’s total $43 million allocation of these funds, also to aid the City’s foreclosure relief efforts.

Menino said the funds will compliment the City’s existing work through the Foreclosure Intervention Team (FIT) to restore neighborhoods by supporting the renovation of properties acquired by the City and private developers, while also allowing the provision of new financial and technical assistance to those interested in purchasing a vacant home.

Department of Neighborhood Development (DND) Director Evelyn Friedman said approval for the federal funds was conditioned on the creation and subsequent HUD approval of a plan to spend the award in accordance with Congressional intent.  The target area for the City’s NSP program is comprised of 43 census tracts located in neighborhoods with the largest declines in market values, and that have a high number of REO properties, among other criteria. This includes the three FIT target areas previously identified by the City last year.  

Under the new program name, Cash to Close Limited, the Boston Home Center will provide eligible homebuyers of foreclosed properties in NSP areas up to $15,000 in down payment assistance, and provide up to $25,000 to eligible buyers of homes in FIT areas. Qualified recipients of this new financial assistance must complete the Boston Home Center’s Homebuyer 101 course and How to Buy a Foreclosed Property seminar, prior to approval.

"This fair is a one-stop-shopping approach to affordable home buying opportunities in today’s market," said Friedman. "In giving homebuyers direct access to foreclosed properties, our partnering mortgage lenders, homebuyer education, and financial assistance, we’ve created a unique opportunity that we hope some Boston residents will take advantage of."

The City’s popular free How to Buy a Foreclosed Property seminar, at which residents learn about the foreclosure sales process, related legal issues, how to obtain a mortgage, and home repair resources, was offered to fair attendees twice during the course of the day. A financial assistance information session was also offered, providing residents with information about all financial resources offered through the City.

The City’s Foreclosure Prevention Initiative took off in late 2005, as the Department of Neighborhood Development tracked an unusual spike in foreclosures rates. Between 2006 and 2008, Boston has been affected by approximately 1,750 foreclosures. During the same time period, however, the Boston Home Center has been able to help more than 450 homeowners avert foreclosure, preserving an estimated $135 million dollars in home values.

The Boston Home Center (BHC), one of four program divisions of DND, provides first-time homebuyers with educational courses and financial assistance, and markets homes developed for income-eligible, first-time homebuyers. The BHC also assists homeowners with education and foreclosure prevention counseling, and encourages strong, stable neighborhoods by providing residents with financing and technical assistance to maintain and improve their homes. 

For more information about the City’s foreclosure prevention or homebuyer assistance programs, visit www.bostonhomecenter.com. 

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