National Mortgage Settlement

Wed, 2012-06-06 12:00 -- athompson

 This year's session is drawing to a close and tomorrow is the last day! Here is where the National Mortgage Settlement ended up:

After much activity and discussion concerning how the funds were going to be allocated and rather than adopting the proviso that was suggested by United Way, Affordable Housing Coalition, SC Appleseed Legal Justice Center, and the Local Housing Trust Funds, the current versions of proviso 90.19 and the proviso 90.20 propose a different approach.

The present version of proviso 90.19 basically establishes that instead of getting the entire amount of money (as it was previously expressed in the earlier verison of the proviso), the Department of Commerce's Deal Closing Fund will be getting 10 million dollars.


Proviso 90.20 outlines how non-recurring revenue coming from different sources is to be spent. Section 8 and section 8.1 with part of the funds coming from the National Mortgage Settlement and they establish that 5 million are to be given to the Housing Finance and Development Authority under the following stipulations:

  1. Forty percent of the funds appropriated for Homeowner's Foreclosure Assistance to be used to fund the South Carolina Legal Services "for the purpose of representing individuals in foreclosure or who need loss mitigation assistance and to provide counseling to assist individuals in avoiding foreclosure"
  2. The remaining sixty percent must be used for Multifamily Bond Program, and fifteen of the total proceeds will be used to fund the three local housing funds: Lowcountry Housing Trust, Community Works of Carolina, and the Midlands Housing Trust Fund.

The rest of the funds (17 million) will be credited to the general fund.

 

Although the provisos are not exactly as United Way and the other organizations had suggested, it is important to highlight that some of the funds are actually being used for relief of distressed borrowers and the direct funding of various housing agencies.
 

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