In the current economic crisis, one of the first impediments to neighborhood success that must be removed is foreclosures and the accompanying blight, decay, and property value decline.
It started out as a snowball at the top of the mountain with the subprime mortgage debacle. But as it continues to make its way down a steep slope, millions of Americans are getting swept up into what amounts to nothing less than an avalanche of personal destruction. Many, through no fault of their own, are losing their jobs, and as a result, are losing their homes, healthcare, life savings, sense of self respect and more.
Billions of dollars are supposed to be flowing out of Washington in an effort to stimulate the economy and aid the troubled financial and automobile industries. The good news for minority and women’s business enterprises (M/WBEs) is that there appears to be a serious commitment on the part of the Obama administration to ensure that a significant share of the approximately $500 billion in stimulus funding to be spent through FY 2010 will flow to M/WBEs. The bad news is that a very small share of contracts and subcontracts from the $700 billion in bailout funds is going to M/WBEs. In addition, almost $15 billion of funds directed at “unsticking” small business lending is being held up as the Treasury Department, the Small Business Administration (SBA), and lenders struggle to agree on terms that banks will accept.
From Section 8 vouchers to private homeownership is a long, steep climb, especially when you get cancer and your mother dies! But for Vivian Pummill, who completed that journey on New Year’s Day, perseverance paid! Pummill spent the first day of this New Year moving into her own home starting a whole new chapter in a story that began four years ago with a homeownership class at the Rural Ulster Preservation Company (RUPCO) in Kingston, NY.
The public accountability and transparency of CRA has motivated banks to make trillions of dollars of loans, investments, and services to low- and moderate-income communities. Often, I compare bank report cards to student report cards – I certainly would have worked harder in school if my report card was available on the internet for public review.
