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The Community Restoration Corporation (CRC) was created three years ago to address the problem of low-value assets that destabilize communities. The assets, typically owned by financial institutions and lenders, remain in limbo due to inactivity and the high cost of moving forward with foreclosure. These properties are vacant or occupied by tenants who are unsure about their future. They destabilize neighborhoods because no one takes responsibility for their upkeep.
In response to this situation, HPN, in partnership with the National Community Stabilization Trust (NCST), created the Community Resolution Corporation. CRC acquires assets which are donated by their owners along with cash contributions; CRC then works with local nonprofits, government and land banks to resolve their disposition. When properties are occupied, Resolution Specialists work with residents to either prevent foreclosure or find the most appropriate housing alternatives. When vacant, CRC engages local stakeholders to pursue local stabilization strategies.
In early 2014, a major servicer transferred over 250 notes to CRC, along with an almost $5 million contribution that is being used to either resolve the delinquent loans or improve or demolish blighted properties. Several major servicers have expressed interest in making similar donations of the low-value assets in their portfolios.
The Community Restoration Corporation is a nonprofit partnership among HPN, the National Community Stabilization Trust, the F.B. Heron Foundation and Ford Foundation, and received initial financial support from Goldman Sachs.
For more information, contact Danielle Samalin.