Neighborhood Stabilization: Local Partnerships Are Rebuilding Communities

A Look Inside ... Partnerships Provide Models for Rebuilding Neighborhoods

This edition of the OCC's Community Developments Insights highlights partnerships for banks working to dispose of foreclosed properties in creative ways that preserve affordable housing opportunities and stabilize communities. This report reviews initiatives and strategies for building partnerships among banks or mortgage servicers and nonprofit organizations, for-profit affordable housing developers, government entities, and others that are implementing plans to create affordable rental or homeownership opportunities and revitalize areas affected by foreclosed properties.

Barry Wides, Deputy Comptroller for Community Affairs, Office of the Comptroller of the Currency (OCC)

This Community Developments newsletter highlights the emerging partnerships that national banks and other mortgage lenders are forging with state and local leaders to revitalize communities hurt by high rates of foreclosure.

These partnerships, and the strategies they are creating and using, are already reaping rewards. Most importantly, their efforts serve as models for lenders and community leaders across the nation working to advance community development and stabilization in their own neighborhoods.

Community development partnerships provide banks and other lenders with new strategies to reduce burgeoning portfolios of real estate owned (REO) properties even as they serve the needs of customers and distressed communities. They give low- and moderate-income home buyers the chance to buy properties in neighborhoods hard hit by high foreclosure rates and blight.

Partnerships help to bring new life to troubled communities across the nation. But much work remains to be done, and national banks can play a critical, leadership role in helping to revitalize distressed neighborhoods.

The OCC and its District Community Affairs Officers, in fulfilling its mission to ensure a safe and sound banking system, are dedicated to helping national banks be leaders in providing community development financing, investments, and retail services to underserved communities and customers. It is crucial, particularly in these tough economic times, that national banks continue to serve the credit needs of neighborhoods in low- and moderate-income areas hard hit by high foreclosure rates and that they remain vigilant to their responsibilities under the Community Reinvestment Act.

With these goals in mind, the OCC, in this newsletter, details the work of a vanguard of national banks, nonprofit organizations, and community groups that are working to rebuild our nation's neighborhoods.

By highlighting these nascent efforts, the OCC hopes to inspire other lenders and community leaders to build on this work and to encourage them to forge new community development partnerships to renew neighborhoods in their own backyards.