White Paper and Invitation: Coalition for Occupied Homes in Foreclosure

The Coalition for Occupied Homes in Foreclosure (COHIF) was formed in response to the wave of foreclosures that has affected communities across Massachusetts. While widespread predatory lending practices left homeowners vulnerable to foreclosure, falling property values have prevented owners from avoiding foreclosure through sale or refinancing of their homes. To make matters worse, the “bundling” and sale of loans – often multiple times – on the secondary mortgage market has left mortgage loans in the hands of investors and servicers unable or unwilling to negotiate loan modifications or “short sales.” Neighborhoods that were the targets of predatory lending practices and those where a high proportion of homeowners are struggling financially have witnessed multiple foreclosures on a single block. The foreclosure crisis threatens the stability of owners, tenants, and the surrounding community.

COHIF’s overarching goal is to stabilize residents, properties and neighborhoods in foreclosure, with a focus on small scale rental properties that are vulnerable to another cycle of irresponsible speculation reminiscent of the 1960s and 1970s. In the short‐term, we seek to prevent displacement of owners and tenants; looking to the future, our focus is on developing long term strategies to create sustainable, community and/or resident‐controlled housing that will preserve affordability permanently and promote neighborhood stability. The purpose of this roundtable is to bring together developers, CBOs, property managers, government officials, funders, tenant leaders and organizers, advocates, and others with the capacity and the will to develop concrete solutions to this problem. By addressing head‐on the problems surrounding scattered‐site, small scale development and management, we propose to overcome these barriers and develop a workable model for long‐term neighborhood stabilization.

This white paper and invitation outline issues and suggested strategic approaches to dealing with this complex, multifaceted problem - all based on the experience of attempting to stabilize communities for the last three years.