New nonprofit aims to prevent mortgage foreclosures.

Mayor Michael R. Bloomberg and city council Speaker Christine Quinn announced a new not-for-profit organization, the Center for NYC Neighborhoods (CNYCN), to assist homeowners at risk of mortgage foreclosure throughout the five boroughs.

The Center for NYC Neighborhoods will be an independent entity that will fund a major expansion and coordination of counseling and referral services, legal assistance, loan remediation, preventive outreach and education, training, research and advocacy around sub-prime lending and mortgage foreclosures. The initiative has a projected budget of $5.3 million in the first year and will assist 18,000 New Yorkers annually. It will be the largest, most comprehensive program of its kind in the nation. Funding in the first year will include $1 million from the administration via the Department of Housing Preservation and Development and $1.8 million from the City Council. In addition to these significant public funding commitments, the City and the CNYCN planning committee are actively seeking philanthropic support and expect to raise the remainder of the funds from private and foundation sources.

Over the past eight months, HPD helped convene a planning group consisting of private foundations, financial institutions, federal banking agencies, community organizations and citywide not-for-profits to develop a foreclosure prevention program that will help thousands of troubled New York City homeowners. The funding raised by the Center for NYC Neighborhoods will significantly expand the counseling and legal assistance available to home owners

The Center will serve as a clearinghouse for foreclosure prevention best practices, conduct ongoing training to build capacity of local groups, and implement quality controls to ensure that New Yorkers are receiving first-rate counseling and legal services. Renters facing eviction due to an owner's foreclosure can also use the Center. The Center will not be providing bailouts to lenders or homeowners, but the Center's partners will help assess the capacity of the borrower to pay for a home, and to identify best options for the borrower to preserve their home equity, credit, and savings, and to avoid scams, bankruptcy and foreclosure where possible.

New Yorkers will be able to access the services of the Center for NYC Neighborhoods by dialing 311, the City's customer service center, as well as through direct walk-ins to participating community-based organizations. The Center will be governed by a Board of Directors, consisting of representatives from government, philanthropic institutions, the lending industry, academia, community based organizations and community leaders.