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AppalReD receives share of mortgage settlement

Ralph B. Davis
Managing Editor

11 months 28 days 2 hours ago |194 Views | | | Email | Print

PRESTONSBURG — The Appalachian Research and Development Fund will be one of the beneficiaries of a national multimillion-dollar legal settlement with mortgage lenders.


Attorney General Jack Conway announced Monday that AppalReD will receive $250,000 from the state’s $19.2 million share of the settlement.


“I am proud to say that the money I secured on behalf of Kentucky will be going to help people and communities who were harmed by the mortgage foreclosure crisis,” General Conway said. “This settlement will provide second chances for people who’ve lost their homes, help revitalize properties that have been abandoned, and develop affordable housing in communities throughout our Commonwealth.”


AppalReD provides legal assistance to low-income families in 37 counties in Eastern Kentucky. Lance Daniels, director of the organization, said the money AppalReD receives from the settlement will directly help victims of the 2008 mortgage meltdown by being used to represent families facing foreclosure.


“This $250,000 will help AppalReD Legal Aid continue to represent homeowners who are facing foreclosure or having any foreclosure issues,” Daniels said. “From 2008 to the present, our offices handled well over 1,000 foreclosure cases for low-income families throughout our 37-county service area. We want to continue this type of representation and utilize the grant money recently awarded to us to help needy families from losing their homes in foreclosure cases.”


Other recipients of the money include:

  • $1.5 million to the City of Louisville. $750,000 to the city’s Vacant Abandoned Property Initiative that targets properties in Louisville that have been abandoned by foreclosing on the city liens to return them to productive use and the property tax rolls. The money is eligible for a match by the Bloomberg Foundation. $500,000 to the Targeted Demolition Program that addresses the problem of blight by removing deteriorated structures that have been abandoned. $250,000 to the Affordable Housing Trust Fund, which provides grants to organizations dedicated to creating or preserving affordable housing for low and moderate-income families.
  • $7.5 million to the Kentucky Housing Corporation (KHC). $3 million to the NeighborWorks Alliance, which will leverage matching grants for an additional $7.5 million. Funds will be provided to federally-supported housing programs that cover all of Kentucky’s 120 counties to assist with purchase and rehabilitation of existing properties, purchase and rehabilitation of affordable rental properties, and purchase of mortgages to restructure payment in an effort to allow homeowners to retain properties. $3 million to establish a down payment pool and closing cost assistance pool for owners who want to purchase vacant or foreclosed properties. $1.5 million to the Homeownership Protection Center, which will fund 19 Kentucky Housing Corporation approved counseling agencies that provide foreclosure prevention and pre-purchase counseling.
  • $250,000 to each of the three other regional Legal Aid centers in Kentucky. Money will be used to assist homeowners who are going through the foreclosure process or seeking to avoid foreclosure.
  • $4 million to update the Kentucky All Schedule Prescription Electronic Reporting Program. Money will be used to enhance software to ensure compliance with House Bill 1, Kentucky’s newly enacted prescription drug abuse law.
  • $5 million to the Office of the Attorney General to assist consumers and investigate mortgage and securities issues. This includes potential litigation regarding MERS involvement in wrongful foreclosures.
  • $150,000 to the Cabinet for Health and Family Services. Funds will provide lead abatement through the Division of Public Health.

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