January 16, 2009

NEWS FROM THE MAYOR

Dear Friends,

Yesterday I received a phone call from U.S. Department of Housing and Urban Development Secretary Steve Preston informing me the City's Neighborhood Stabilization Action Plan to spend its $9.2 million allocation was approved.

The City's plan includes assistance for homebuyers purchasing foreclosed properties, rental unit rehabilitation, large project rental development, acquisition, rehabilitation and resale for homeownership, demolition of unsafe structures, and a land bank.

In addition to receiving the $9.2 million, the City is also applying for Neighborhood Stabilization Program (NSP) funds from the State of Wisconsin's $38 million allocation in order to address the full scope of the crisis.  Additional funds secured from the state will be used to bolster activities already identified in the City's action plan.

For the last two years, the City of Milwaukee and many partners have been working to address foreclosure issues and the impacts of subprime and predatory lending in the community.

In September of last year, I convened the Milwaukee Foreclosure Partnership Initiative (MFPI)- a public-private partnership of lenders, foundations and community stakeholders with the primary goal of addressing the foreclosure crisis using a three-tiered approach:  Prevention, Intervention and Stabilization.

NSP funding will provide a considerable resource for the City's foreclosure efforts.  However, it is important to note that Milwaukee's approach to the foreclosure crisis goes beyond tackling the issue of abandoned and foreclosed properties funded by the NSP.  It includes a broader community strategy to assist homeowners who are being foreclosed on, or who are in danger of losing their homes to foreclosure.

The City and its partners recognize that intervention and prevention strategies for homeowners and prospective homeowners are also critical to addressing the foreclosure issue in Milwaukee and are working through the MFPI to implement innovative programs and resources in these areas.

As of today, there are 1,868 foreclosed properties identified in Milwaukee.  An additional 4,841 foreclosure filings have been opened.

The challenge before us is great.  We are prepared to begin further addressing the needs of Milwaukee's neighborhoods affected by the foreclosure crisis.

 Sincerely,

Mayor, City of Milwaukee 

Visit my website at: http://www.city.milwaukee.gov/mayor