Direct grants and investments part of companies' efforts to preserve neighborhoods and help families stay in homes
CHARLOTTE, N.C., May 1 /PRNewswire/ -- Bank of America and CountrywideFinancial Corporation today provided additional details regarding the $35million neighborhood preservation and foreclosure prevention package announcedlast week in Chicago. The commitment includes foreclosure prevention effortsby both financial institutions.
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The package, which is comprised of both grants and low-cost loan/investments in nonprofit organizations, addresses the nation's ongoingmortgage foreclosure crisis and will complement efforts undertaken by the U.S.government and other housing agencies, such as the $180 million allocationfrom U.S. Department of Housing and Urban Development (HUD) toNeighborWorks(R) America to boost the capacity of both national and localnonprofits engaged in foreclosure prevention and mitigation activities.
'Foreclosures have devastating social and economic consequences onfamilies and communities,' said Andrew D. Plepler, president, Bank of AmericaCharitable Foundation. 'Both Bank of America and Countrywide recognize thatwe have a shared responsibility to strengthen our neighborhoods by helpingindividuals and families keep their homes. We are pleased to do our part toaddress this ongoing crisis.'
The Bank of America neighborhood preservation and foreclosure preventionpackage includes:
- $10 million in direct grants from the Bank of America Charitable Foundation to enhance the capabilities of national and local nonprofit organizations focused on foreclosure prevention counseling and mitigation. Estimates indicate at least 40,500 people will receive counseling or other support services as a result of these grants. - $15 million in program related investments (PRI), a long-term, repayable loan/investment offered at below-market interest rates to help nonprofit organizations preserve affordable housing and rental units in deeply impacted cities by acquiring and redeploying foreclosed properties.
