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August 14, 2008

NACEDA says all neighborhoods hit by foreclosure must be targeted by relief fundsMortgagePress.comForeclosures, NACEDA, Community Development Block Grants, National Alliance of Community Economic Development Associations, HUD
As the federal government prepares for the distribution of the
$3.9 billion in Community Development Block Grants (CDBG) funding
for the purchase and resale of foreclosed properties to prevent
neighborhood blight, the National Alliance of Community Economic
Development Associations (NACEDA) wants to ensure that no
communities hit by foreclosure are ignored and that community
development groups have the tools they need to reverse the strain
of foreclosures on their neighborhoods.
It is estimated that 8,500 families a day are falling into
foreclosure and one in every eight homes is projected to enter
foreclosure over the next five years, according to recent Senate
hearing records. These Neighborhood Stabilization funds, found in
the recently enacted Housing Relief legislation, will help to
reverse this devastating impact.
"Every family and every community deserves decent, affordable
housing, and this foreclosure crisis has put that basic human right
in jeopardy," said NACEDA Executive Director Jane DeMarines.
"Community Development Corporations (CDCs) must be a part of the
solution to this crisis. They are on the front lines in foreclosure
mitigation and vacant property distribution and are invested in
their communities for the long term."
NACEDA represents more than 2,400 CDCs through state, city and
regional associations that are working on the frontlines of
revitalization of low-income neighborhoods nationwide, including
foreclosure counseling, and vacant property disposition, trying to
prevent further disinvestment of their communities. The U.S.
Department of Housing and Urban Development (HUD) has the task of
creating regulations to implement the new CDBG funding program.
NACEDA and other groups involved in foreclosure relief have been
meeting with HUD. Additionally, NACEDA has provided written
comments on behalf of its members, including the following:
Neighborhood Stabilization Funds: NACEDA Areas of
Concern
1. Find a way to recognize small areas of populations where
neighborhood foreclosures are particularly steep, but where the
city foreclosure data may not be.
2. Ensure funding allocated via community non-profits, rather
than for-profits, who could subvert the process by "flipping"
foreclosed properties.
3. Homes sold to individuals: Enforce home buying counseling
requirement.
4. Allow funding for due diligence/predevelopment work,
including capacity building, to ensure strategic redevelopment
occurs; protecting the integrity of the program.
5. Non-profits should be able to earn fees for development
commensurate with the risk they are taking and subject to the
degree of rehab provided.
"NACEDA's membership is concerned that funds be administered
fairly and with careful consideration, as they recognize the
importance and difficulty of this undertaking," said DeMarines.
"They are active in vacant property issues, forming alliances with
government and other non-profits to create specific entities to
purchase foreclosed properties to be rehabbed for affordable
housing. In particular, our members are concerned about keeping the
housing affordable for the long term."
For more information, visit www.NACEDA.org.

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