Jack Conway is busily touting the millions and millions in housing settlements obtained by Kentucky. Of course, he claims that he obtained them (fact: 49 attorneys general reached the settlement, not just Jack). We’re not focusing on that.
The real issue is the hype that a ton of money is flowing into Louisville.
Here he is at this morning’s presser:
Kentucky is receiving $19.2 million from the settlement.
Here’s the breakdown of the allocation of funds, direct from Conway’s release:
- $1.5 million to the City of Louisville. $750,000 to the city’s Vacant Abandoned Property Initiative that targets properties in Louisville that have been abandoned by foreclosing on the city liens to return them to productive use and the property tax rolls. The money is eligible for a match by the Bloomberg Foundation. $500,000 to the Targeted Demolition Program that addresses the problem of blight by removing deteriorated structures that have been abandoned. $250,000 to the Affordable Housing Trust Fund, which provides grants to organizations dedicated to creating or preserving affordable housing for low and moderate-income families.
- $7.5 million to the Kentucky Housing Corporation (KHC). $3 million to the NeighborWorks Alliance, which will leverage matching grants for an additional $7.5 million. Funds will be provided to federally-supported housing programs that cover all of Kentucky’s 120 counties to assist with purchase and rehabilitation of existing properties, purchase and rehabilitation of affordable rental properties, and purchase of mortgages to restructure payment in an effort to allow homeowners to retain properties. $3 million to establish a down payment pool and closing cost assistance pool for owners who want to purchase vacant or foreclosed properties. $1.5 million to the Homeownership Protection Center, which will fund 19 Kentucky Housing Corporation approved counseling agencies that provide foreclosure prevention and pre-purchase counseling.
- $250,000 to each of the four regional Legal Aid centers in Kentucky. Money will be used to assist homeowners who are going through the foreclosure process or seeking to avoid foreclosure.
- $4 million to update the Kentucky All Schedule Prescription Electronic Reporting Program. Money will be used to enhance software to ensure compliance with House Bill 1, Kentucky’s newly enacted prescription drug abuse law.
- $5 million to the Office of the Attorney General to assist consumers and investigate mortgage and securities issues. This includes potential litigation regarding MERS involvement in wrongful foreclosures.
- $150,000 to the Cabinet for Health and Family Services. Funds will provide lead abatement through the Division of Public Health.
As you can see, very few dollars are flowing to Louisville despite it being the hardest hit city in the Commonwealth of Kentucky.
It’s important to know hard dollar figures while the hype floods your news outlets, television stations and talk radio today.