LISC’s Building Sustainable Communities approach results in innovative stabilization strategies that are responsive to local market conditions. These strategies go beyond foreclosure mitigation to support a broad range of community development objectives, including affordable housing, family income and wealth building, job creation, and crime prevention. Select examples of these local responses are highlighted here to illustrate the breadth of LISC’s vacant properties and foreclosure response efforts.
- In communities across the country, including New York City and Washington, D.C., LISC is providing financial and technical assistance to community organizations that are rehabilitating foreclosed and vacant properties to create affordable homeownership opportunities.
- In cities with weak real estate markets and surplus properties, like Detroit and Kalamazoo, LISC, along with partner the Center for Community Progress, has supported the creation and growth of land banks—public authorities that acquire, hold, manage and redevelop foreclosed properties to combat blight, stabilize neighborhoods and promote reinvestment.
- In response to the economic downturn, many LISC sites, including the Mid-South Delta and Phoenix, support foreclosure prevention and homeownership counseling. Studies have shown that counseling not only reduces delinquencies and foreclosure, but also may increase homeowners’ credit scores, giving families access to lower interest loan products.
- In many cities, the foreclosure crisis is closely linked to loss of jobs. In Milwaukee and Detroit, LISC launched pilot workforce development programs that employ low-income residents in deconstructing vacant homes and selling reusable materials. These deconstruction programs offer a green alternative to demolition.
- In places including the Twin Cities and Chicago, LISC is supporting collaborative efforts to direct private and public resources to areas that have been disproportionally affected by the mortgage foreclosure crisis.
Local Examples:
