Ohio to Receive $172 Million in Federal Foreclosure Aid
The Hannah Report - March 29, 2010
The U.S. Department of Treasury announced Monday a list of five states that will receive federal funds as a part of the Obama administration's program targeting states with high areas of foreclosures - a list that includes Ohio.
Ohio Democrats had criticized the administration after five states were announced for targeted assistance, but Ohio was not on the list despite having one of the higher foreclosure rates in the nation.
The second round of funding for the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets program sends $600 million to states for programs that help families stay in their homes or avoid disclosure.
Ohio is slated to receive $172 million in funding, the most of any of the states in the second round. Also receiving funding are North Carolina, South Carolina, Oregon and Rhode Island.
Housing finance agencies in states qualifying for the money will be required to submit plans to the Treasury for review before becoming eligible for funding.
Gov. Ted Strickland praised the announcement.
"Too many Ohio homeowners have struggled to keep their homes as a result of the economic recession," he said in a statement. "I thank the Obama administration for recognizing the economy's impact on Ohio and providing these resources, which will allow many families to maintain homeownership. These resources will also build on the work of Save the Dream Ohio, a state partnership that is helping Ohio families avoid foreclosures."
The governor's office said the state's Save the Dream Ohio program will work with the Ohio Housing Finance Agency to administer the funds.
The first round of funding totaling $1.5 billion was announced in February and went to Arizona, California, Florida, Michigan and Nevada.
Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio (COHHIO), said the funds are great news for Ohio, but said it is not "a windfall that's going to fix our foreclosure crisis on its own."
Faith urged the Ohio Senate to pass legislation that addresses foreclosures. He is scheduled to attend a press conference Tuesday with Rep. Mike Foley (D-Cleveland), the sponsor of HB3, which includes provisions to put a moratorium on foreclosures and add a filing fee for foreclosure actions.
"Foreclosure prevention help at the state level has been sitting idle in the Senate for nearly a year," Faith said. "I hope we can make the most of these federal funds by passing state legislation quickly."