Homeowners, lawmakers, and advocates call for New York State to fund a crucial statewide program protecting homeowners from foreclosures and deed scams
The Homeowner Protection Program (HOPP) needs $40 million in the FY2025 budget in order to serve the hundreds of thousands of New Yorkers at risk of losing their homes, disproportionately in communities of color
ALBANY, N.Y. (March 14, 2024) — The Legal Aid Society of Northeastern NY (LASNNY), providing free civil legal aid to low-income upstate New Yorkers, joined Empire Justice, elected officials, and housing rights advocates from across the state in a rally at the New York State Capitol calling on Governor Hochul to reinstate funding for the Homeowner Protection Program (HOPP) in her Executive Budget. HOPP is the state’s only program, comprised of 89 nonprofit housing counseling and legal service providers across the that provides free legal help and housing counseling to homeowners targeted by mortgage fraud, scams, and foreclosures in every county of the state. Both the state Senate and Assembly included $40 million for HOPP in their one-house bills this week.
With the rate of foreclosure risk rising since the pandemic, HOPP is crucial to fighting displacement, gentrification, and the hollowing out of communities of color who after decades of exclusionary redlining and targeting for predatory loans by big banks, are still being assailed by an array of bad actors. Last year’s monthly average of mortgage delinquency in New York was 15 percent among Black and Hispanic homeowners, more than double that of White homeowners.
“HOPP is a longstanding network relied upon by the court system and the laws protecting New York homeowners, “ said Nic Rangel, executive director of The Legal Aid Society of Northeastern New York. “HOPP is critical in preserving and promoting homeownership which bridges the wealth gap for our communities of color.”
“There is an affordable housing crisis in New York, and it can’t be addressed without HOPP, the only funding dedicated to protecting homeownership in the state,” said Jim Dukette, HOPP Anchor Partner program director at Empire Justice Center. “The most affordable home is the one you live in. HOPP advocates not only help the most vulnerable New Yorkers navigate the complex systems involved in the foreclosure process but also mitigate the inequities in those systems. HOPP needs to be fully funded in the final budget, for New York homeowners and communities.”
Historically, each $1 million invested in HOPP yields a return of over $5 million in tax and property cost savings. Last year, more than 20,000 people received assistance from the program — protecting their rights in court, lowering their bill payments, and preventing avoidable foreclosures with home-saving solutions that benefit homeowners, lenders, and local governments.
While legislative leaders have included the necessary $40 million in funding in their spending bills, homeowners and advocates called on Gov. Hochul to honor that allotment — and not let this crucial program become a bargaining chip in budget negotiations.
“For over a decade, HOPP has consistently benefited our communities and helped mitigate the effects of the affordable housing crisis by helping thousands of homeowners avert the loss of generational wealth that results when homes are lost to foreclosure or to scams such as deed theft,” said Senator Brian Kavanagh, Chair of the Senate Housing Committee. “Without HOPP funding, the program will cease to function, leaving cash-strapped homeowners without the legal representation, counseling and advice they need when dealing with well-represented banks, mortgage servicers, and scammers.”
“New York State has the unfortunate distinction of ranking among the states with the lowest rates of homeownership. Cities across our state have seen major upticks in foreclosure over the last year. The HOPP program provides desperately needed support to the many fine housing counseling and legal services organizations that throw a lifeline to those at risk of foreclosure,” said Assemblymember Linda B. Rosenthal, Chair of the Assembly Committee on Housing. “After being omitted from the Executive Budget proposal, I am proud that the Assembly restored the $40 million in funding for this program and will be working over the coming weeks to ensure it remains in our final budget.”
Funding for the HOPP program runs out July 15, 2024, potentially leaving struggling homeowners with nowhere to turn.
###
