WASHINGTON, D.C. – Following last month’s record-setting $16.65 billion settlement between Bank of America and the U.S. Department of Justice to resolve widespread homeowner abuses, U.S. Sens. Sherrod Brown (D-OH) and Rob Portman (R-OH) sent a letter to Bank of America, urging the company to direct part of the settlement’s consumer relief funds to revitalize Ohio neighborhoods.

“Ohio’s communities bore the brunt of the abusive and illegal tactics used by big banks to deceive homeowners during the depths of the housing crisis,” Brown said. “It’s time that the big banks make right for these practices and reinvest in Ohio communities. By securing these funds, we can help families stay in their homes and rebuild their neighborhoods. I urge Bank of America to invest in Ohio.”

“Foreclosures and declining home prices have hit many of Ohio’s neighborhoods and it’s crucial that the private and public sector work together on neighborhood stabilization efforts,” Portman said.

In the letter, Brown and Portman outlined the devestating impact the housing crisis had on Ohio communities and the role these funds would play in revitalizing Ohio’s hardest hit areas through blight elimination, home rehabilitation, and foreclosure prevention. Their letter urged Bank of America to work with Ohio’s community organizations that have led neighborhood stabilization efforts in their communities.

"I would like to thank Senators Brown and Portman for their leadership on this issue in helping us to secure dollars from the Bank of America settlement for Ohio's distressed communities,” Jim Rokakis, Thriving Communities Institute Director said. “There are critical unmet needs in the areas of demolition, rehabilitation, and foreclosure counseling that this settlement can help to address."

The letter to Bank of America can be seen below:

September 12, 2014

Gary G. Lynch

Global General Counsel

Head of Compliance & Regulatory Relations

Bank of America

1 Bryant Park

New York, NY 10036

 

Dear Mr. Lynch:

More than six years after the financial crisis devastated homeowners and investors, Ohio communities continue to feel the effects of the housing market downturn. Years of declining home values, foreclosures, and homes standing empty have taken an especially large toll on Ohio neighborhoods. While foreclosures have declined, approximately 50,000 abandoned properties across the state have fallen into disrepair and many more Ohioans are in danger of losing their homes to foreclosure.

Bank of America’s recent settlement with the Department of Justice authorizes credits for activities that fight foreclosure and blight, including: demolition costs; real-estate-owned (REO) property donations; financial contributions to non-profit organizations performing rehabilitation; and donations to housing counseling and legal aid organizations. As you develop a plan to allocate consumer relief, we urge you to work with the Ohio community groups who have led neighborhood stabilization efforts in their communities, which are among the hardest hit communities in both the state and the nation. Drawing on years of experience in the neighborhoods they serve, these local partners have already developed a comprehensive plan to strengthen our state’s struggling communities through blight elimination, home rehabilitation, and foreclosure prevention.

Bank of America has a long history as a lender, employer, and neighbor to millions of Ohio homeowners and investors. We urge you to continue this partnership by utilizing the strong network of community organizations and leaders in Ohio to provide vital resources that will help revitalize our neighborhoods and housing market. Thank you for considering this important matter. 

          

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