Governor David A. Paterson today announced a total of $3,495,000 in grants as part of New York’s continuing efforts to address the subprime mortgage crisis. This brings the total grants awarded this summer to $9.4 million. Consistent with the previous grants announced in July and earlier this month, the grants announced today will be provided to non-profit agencies for homeownership assistance and foreclosure prevention counseling, advocacy and legal services. Governor Paterson has repeatedly demonstrated that addressing the mortgage crisis is a priority of his administration, exemplified by the passage and signing of historic subprime legislation this summer and supported by these grant programs.

“In recent weeks it has been demonstrated in dramatic fashion that government can be called upon to help the largest of banks or businesses in times of financial crisis, but we also have an obligation to help out individual homeowners. These grants will help some of the most distressed New Yorkers keep their homes,” said Governor Paterson. “By assisting individual homeowners, we can strike at the root of what started this national fiscal crisis. Foreclosures are sometimes unavoidable, but they are bad for the business that makes the loan and even worse for the borrower who loses their home. We need to take every step possible to stop unnecessary foreclosures from happening, for the good of our entire economy.”

The New York State Division of Housing and Community Renewal (DHCR) awarded $2,776,000 from the State’s $25 million Subprime Foreclosure Prevention Program to six non-profit organizations around the State to help homeowners at risk of foreclosure. Additionally, the Banking Department awarded $719,000 in grants to nine agencies to provide foreclosure prevention services from a $2 million settlement fund from prior Banking Department enforcement actions.

(YWN Desk – NYC)