Half of Foreclosure Fraud Settlement Hard Dollars Diverted Away From Housing Programs By States

McClatchy catches us up on the issue, based on a new report put out yesterday by Enterprise Community Partners, a housing advocacy group:

 

While states have announced plans to use $977 million of their direct payments for housing and foreclosure-related assistance, $989 million will go to fill budget shortfalls or for non-housing purposes, according to a report released Thursday by Enterprise Community Partners, a national affordable housing and community development group.

The report, which updated an earlier analysis, found that six states – Missouri, California, South Carolina, Georgia, Alabama and New Jersey – ignored the agreed-upon uses for the money entirely by directing nothing for housing-related activities.

It said that 23 states are using all, or nearly all, of their settlement money for housing, while five others – New York, North Carolina, Washington, Massachusetts and Kentucky – have dedicated between 70 percent and 89 percent for housing purposes.

Fourteen others, including Idaho and Illinois, are using less than half of their funds for the intended purposes.

 

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