Press Statement
| For Immediate Release | Contact | Phone |
| October 16, 2008 | Phyllis Salowe-Kaye, Executive Director, NJCA |
973-643-8800 |
Governor Corzine's Economic Proposal
Statement of Phyllis Salowe-Kaye,
Executive Director of New Jersey Citizen Action
Governor Jon Corzine's proposal to direct $45 million in state funding to homeowners facing foreclosure provides the framework of what needs to become a significant effort to deliver direct relief to those who live and work on Main Street as opposed to those who benefited from the $700 billion bailout of Wall Street. By providing funding for additional foreclosure counseling, attorneys, catch-up money and gap financing, the plan takes a first step in addressing the severe housing crisis New Jersey homeowners are facing as the tsunami of foreclosures moves throughout our state.
A Mortgage Conciliation Program modeled on a program implemented in Philadelphia is an important component of the Governor's program that will need to be fully developed. The funding authorized in the Governor's plan will also permit developers to acquire and rehabilitate properties that become vacant due to foreclosures will help stabilize neighborhoods battered by foreclosures. However the estimated 1500 New Jerseyans in danger of losing their homes who would benefit from the Governor's Proposal is just a drop in the bucket when New Jersey has almost 50,000 foreclosures have taken place in this year alone. Much more can and should be done.
The Governor must make the passage of the New Jersey Homeowner Security Act (S1599/ A2511) within the next 45 days an administrative priority sponsored by Senator Ronald Rice and Assembly Majority Leader Bonnie Watson Coleman the bill will provide almost $45 Million of Non Taxpayer funds to address New Jersey's growing foreclosure crisis. The bill would require lenders who foreclose on property to pay a $2,000.00 impact fee that would be put into a fund to provide foreclose relief and neighborhood stabilization thus forcing those who have played a major role in causing the problems our homeowners are facing to become part of the solution.
In the past 13 years, as the state's largest statewide HUD certified Housing Counseling Agency 12,000 NJCA clients have closed on below market rate, 30 year fixed mortgages with no point or PMI. Our clients have a negligible foreclosure rate according to our participating lenders. At the same time our foreclosure counseling has increased beyond all expectations severely straining our resources as we see four times as many clients as last year.
Meeting the basic necessities of life — food, shelter and heat — are increasingly out of reach for more and more New Jersey residents. Our country's economic crisis hurts everyone but it hurts our low income working families, senior citizens on fixed incomes and the disabled most profoundly — and this winter's heating crisis literally creates life or death situations.
Today, the Governor has outlined a framework for addressing NJ's winter heating crisis. We commend the Governor for his commitment to addressing this crisis quickly and in a creative and comprehensive manner. His immediate proposals to increase LIHEAP funding and program eligibility levels expand assistance for residents who heat their homes with oil are a positive and necessary first step.
We know more can and should be done including improvements in the state's Universal Service Fund program and implementation of more aggressive efficiency programs for low income households that will permanently reduce energy usage and lower costs well into the future. The Governor's commitment to continuing a comprehensive evaluation of all state and federal programs in this area and review our progress in 60 days is also to be commended. We look forward to working with the Governor, his staff, members of the Cabinet and our partners and allies in the coming days on these critical issues.
New Jersey Citizen Action is the state's largest independent citizen watchdog coalition with more than 60,000 members and over 100 affiliate organizations. For more information on New Jersey Citizen Action, visit our website at www.njcitizenaction.org.
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