We have been able to prevent many Maryland families from losing their homes, thanks to the foreclosure reform measures enacted last year and our HOPE initiative which provides counseling and financial assistance to distressed homeowners. But foreclosures continue to climb in communities across the state, with loss of income accounting for the bulk of that increase.

Meanwhile, our unemployment rate stands at more than seven percent - up three percentage points over last year.

This shift in the nature of the crisis makes our effort to save families’ homes a bit more complicated.

Complicated, yes, but not impossible.

Whatever their situation, a distressed homeowner’s first step should be to contact our free 24-hour counseling hotline at 877-462-7555.

Our HOPE Hotline provides reliable, objective, up-to-date advice so that homeowners are made aware of the full range of options available to them.

We know beyond any shadow of a doubt that a fully informed homeowner is a homeowner empowered to choose the option that best meets their family’s needs.

Raymond Skinner
Secretary

FEATURE STORY

Governor Martin O’Malley announced in 2007 that Maryland was committed to providing assistance to imperiled homeowners as a wave of foreclosures swept through the state. Noting that homes represent the largest investment for many families and the equity in those homes was their greatest asset, the governor launched the Home Owners Preserving Equity program (HOPE) program to help protect and preserve that asset.

At the outset it was clear that this housing problem would require the resources of the Maryland Department of Housing and Community Development. At the same time, reports of deceptive and unfair lending practices and the reality of less than robust foreclosure protection laws in Maryland dictated that the Maryland Department of Labor Licensing and Regulation lend its expertise and resources as well.

However, the DHCD and DLLR partnership was not the only story behind the efforts to assist beleaguered homeowners.

In 2007, Maryland was feeling the ill effects of an impending recession. The state budget was under severe pressure and funding cuts were required at practically every level of state government.

Yet in the face of dwindling state resources, there were limited funds available through an entity created by the General Assembly in 1992, know as the Maryland Affordable Housing Trust. Traditional uses for the funds, which were generated by payments of a portion of the interest generated from title company escrow accounts, included helping nonprofit developers and supporting other efforts that preserved affordable housing.

However, when skyrocketing home foreclosures threatened to destabilize Maryland communities, MAHT weighed-in with $1 million for program funding.

Ultimately, those funds were instrumental in allowing DHCD to take the lead in fighting the foreclosure threat through partnerships with nonprofit housing counseling agencies across the state. Those agencies became the first line of defense for many homeowners who did not know where to turn. DHCD quickly established a hotline to receive calls from distressed homeowners. The hotline, in turn, referred many of the callers to the counseling organizations that had received grants made possible with MAHT funds.

A clear mandate from Governor O’Malley to assist Maryland homeowners and the willingness of partners such as DLLR and a host of nonprofit housing counseling agencies to work tirelessly to help remains critical in this administration’s decisive response to the foreclosure crisis in Maryland.

The $1 million in funding provided by MAHT underpins what continues to be a response other states across the country may emulate.

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BREAKING NEWS

Maryland Announces Opening of Green Grant Energy Efficiency Program

ANNAPOLIS , MD (September 1) – Governor O’Malley announced the opening of the Green Grant Rental Housing Preservation Program to promote energy efficiency and green building concepts while helping preserve affordable housing in communities affected by the federal Base Realignment and Closure process. The Green Grant is partially funded through a $4.5 million award which Maryland received from the John D. and Catherine T. MacArthur Foundation earlier this year. Learn more

Nominations for Maryland Asset Building and Community Development Network Awards Close September 16

SYKESVILLE, MD (September 1) - Nominations for the Maryland Asset Building and Community Development Network’s 2009 Awards of Excellence must be submitted by 5 p.m. on September 16. The ABCD Network represents nonprofit organizations and small government agencies that implement and integrate asset building and community development. The Awards of Excellence recognize those organizations and agencies that exemplify the network’s holistic approach to community building in three areas – advocacy, innovation and collaboration. Get the nomination form.

Distressed Families Get Personal Attention at Foreclosure Prevention Workshop

SPRINGDALE,MD (August 29) – Secretary Skinner and Lt. Governor Anthony Brown were the keynote speakers at a foreclosure prevention workshop at the Charles Flowers High School. Modeled on successful forums hosted by Seventh District Congressman Elijah Cummings, over 1,000 distressed homeowners met face-to-face with housing counselors, received pro bono legal advice and sat down with lenders to find personalized solutions to stave off foreclosure. Learn more

Fitch Rates Maryland CDA’s 2009 A Housing Revenue Bonds ‘AA ’; Assigns Stable Outlook

NEW YORK (August 28) - Fitch Ratings has assigned an ‘AA’ rating to the Maryland Community Development Administration’s $32.7 million residential revenue bonds, 2009 series A, citing “the current coverage levels within the portfolio, inclusion of a significant level of fully insured or guaranteed loans, strong reserves levels, as well as the administration’s successful management track record and established program-oversight abilities.” Moody’s assigned an ‘Aa2’ rating to the bonds, citing as strengths the portfolio’s solid asset to debt ratio and the fact that “management has been proactive at mitigating program risks.”

Tax Credit Assistance Program Used to Expand Affordable Housing, Create Jobs

CROWNSVILLE,MD (August 20) - Secretary Skinner announced that 15 shovel-ready multifamily housing projects will receive more than $31.7 million of Tax Credit Assistance Program funding through the American Reinvestment and Recovery Act, expanding available affordable housing for hardworking families in nine Maryland jurisdictions and adding hundreds of jobs to the state’s beleaguered economy. Learn more

Hispanic Families Face Additional Challenges in their Battle to Save Their Homes

COLUMBIA,MD (August 19) - Secretary Skinner and members of the Governor’s Commission on Hispanic Affairs heard heartbreaking testimony from families whose fight to save their homes from foreclosure was made more difficult because of language and cultural differences and the predatory practices of some unscrupulous lenders. Learn more

Harford County Project Will Generate Jobs, Add Affordable Housing for BRAC Workers

EDGEWOOD,MD (August 20) - Secretary Skinner joined Harford County Executive David Craig and others for groundbreaking at the Washington Court development, a 26-acre project in the heart of Edgewood that will generate new jobs for the state’s troubled economy and add affordable housing in a region that is expected to see an influx of workers through the Base Closure and Realignment process. DHCD contributed $1.5 million to the project through the Neighborhood Conservation Initiative and $450,000 through the Community Legacy program. Learn more

HUD Announces New Guidelines for Making Home Affordable Loan Modification Program

WASHINGTON (July 30) - New guidelines announced by U.S. Department of Housing and Urban Development Secretary Shaun Donovan will allow borrowers with FHA loans to significantly reduce their monthly mortgage payments under the Obama administration’s Home Affordable Modification Program. The program permanently reduces a family’s monthly mortgage payment through the use of a partial claim, which defers the repayment of mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off. Learn more

NEWS TICKER

Shovel-ready’ housing projects around state get stimulus funds - August 20, Baltimore Sun

Unemployment Spike Compounds Foreclosure Crisis - August 18, Washington Post

Courting Foreclosures: Relations between struggling homeowners and lenders reach a new low - August 6, Gazette Newspapers

State Officials Urge Homeowners to Seek Help Before It Becomes Too Late - August 6, Washington Post

CALENDAR

September 12

• Foreclosure Prevention Workshop

  Homeowners facing foreclosure will work with housing counselors, attorneys and lenders to find alternatives to foreclosure. Secretary Skinner will speak. Call Harry T. Spikes (410) 685-9199. Host: Rep. Elijah Cummings Time: 9 a.m. to 3 p.m. Location: Woodlawn High School, 1801 Woodlawn Dr., Gwynn Oak, MD

• Buying into Baltimore Home Buying Fair & Neighborhood Tour 2009

First time homebuyers receive information on various home buying programs offered by the state. Call Julie French (410) 637-3750. Host: Live Baltimore Time: 10 a.m. Location: Baltimore City College High School, 3220 The Alameda, Baltimore, MD

September 19

• Home Buyer Education Workshop

First time homebuyers receive information on various home buying programs in Maryland. Call Shaneece Hudson (410) 327-1200. Host: Neighborhood Housing Service of Baltimore Time: 9 a.m. to 4 p.m. Location: NHS of Baltimore, 819 Park Ave., Baltimore, MD

• Save Your Home & Credit

Spanish speaking homeowners who are facing foreclosure receive counseling assistance and information. Call Gladys Rojas (301) 766-2055. Host: Comunidad Latina de Washington County Time: 2 p.m. Location: Washington County Library, 100 S. Potomac St., Hagerstown, MD

September 26

• Foreclosure Prevention Workshop

Citizens facing foreclosure meet with lenders and counselors one-on-one. Call Tamara-Lee Brooks (410) 334-3072. Host: Rep. Frank Kratovil Time: 1 p.m. – 6 p.m. Location: Maces Lane Middle School, 1101 Maces Lane, Cambridge, MD

• Prince George’s County Housing Crisis & Foreclosure Assistance Workshop

Homeowners receive one-on-one assistance with the current housing and foreclosure crisis, including information about programs for homeowners. Call Terrance Taylor (301) 474-0119. Host: Rep. Steny Hoyer & Mt. Ennon Baptist Church Time: 9 a.m. Location: Mt. Ennon Baptist Church, 9832 Piscataway Rd., Clinton, MD

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