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FORECLOSURE CRISIS:

Also:

What’s happening in Lawrence and what steps are we taking to remedy

the situation?

Celebrating Triumphs, Lifetime Achievements

and Giving Back

LawrenceC o m m u n i t y W o r k s

Recent Foreclosure Statistics

FY08 – Commonwealth of Massachusetts:

• 522 foreclosure auctions in Lawrence

• 6th highest number in the Commonwealth

• More than 10 times the state average among all 351 Massachusetts communities

(Source: Massachusetts Department of Housing & Community Development, Neighborhood Stabilization Program; www.mass.gov)

FY08 – Lawrence CommunityWorks:

• 194 First Time Homebuyer Graduates

• 43 Graduates purchased their first home

• 190 families counseled through foreclosure mitigation

• 30% achieving a positive outcome with their servicers or receiving further legal or emergency assistance

• 67% still working with their counselor to find a solution

• 3% forced to foreclose or file bankruptcy

The SituationFor the past two months, our whole country

has been reeling from the seismic shocks in the financial markets. But for the past two years, LCW has been dealing with the warning tremors in Lawrence, where the fault lines of the sub-prime market were painfully evident in the form of predatory loans, equity-stripping, home fore-closures and evictions—well before the markets tumbled. During this time, there have been over 1,500 foreclosure filings in the City, most of them a result of skyrocketing rate resets on question-able loans.

The good news in all this is that of the 150+ homebuyers that LCW has educated, sup-ported, and prepared during this time, less than 1% have fallen into foreclosure. That is not only a great success rate, but powerful evidence that it has been irresponsible lend-ing, not low-income home-buyers, who are responsible for this crisis. However, we are still facing an uphill battle in a City that is hemorrhag-ing family assets and housing value, while accumulating vacant, neglected foreclosed properties at an alarming rate. So what are we doing to fight this?

Keeping People in Their HomesThe single best solution to this crisis, for fami-

lies, lenders, and communities, is keeping peo-ple—homeowners and renters—in their homes. LCW’s three full-time homeownership counselors spend hours with families, providing credit and budget counseling, negotiating mortgage loan modifications with lenders, and connecting peo-ple to refinancing, short sale, and legal help (for both owners and renters). Over the past year, we have counseled nearly 200 families; about 30% of whom have had positive outcomes, and many of whom are still in process. Our biggest obstacle has been getting a timely and appropriate re-sponse from loan servicing companies.

Reclaiming Foreclosed PropertiesWith crucial support from the Commonwealth

and private investors, LCW is buying vacant bank-owned properties in the City’s North Common neighborhood, using a “cluster-based” approach

for maximum impact. Most of these properties have “good bones” but are in deplorable condi-tion, with years of deferred maintenance and recent vandalism. We already have site control of 10 units in the neighborhood. We will renovate these properties for both affordable rental and homeownership for Lawrence families, and hope to reclaim as many as 50 properties over the next three years. Again, the biggest barrier to our work has been the responsiveness of the banks that own these buildings.

Building PartnershipsLike many issues facing the

City, the foreclosure problem needs people working togeth-er on solutions. LCW is the lead agent in the Home Pres-ervation Coalition of the Merri-mack Valley, a partnership that includes Neighborhood Legal Services, Arlington Community Trabajando, Homeowner Op-tions for Mass Elders, and both the Coalition for a Better Acre and Community Teamwork, Inc. of Lowell. We support each other by sharing infor-mation and resources, cross-referring clients, and develop-ing best practices. LCW also works closely with state and

City officials to develop local solutions. In July of this year we co-sponsored a regional Lender Fair with the City of Lawrence and the MA Office of Consumer Affairs. The fair hosted nine lenders and drew nearly 400 people—the largest turnout in the state—many of whom were able to initiate the modification process with their lenders.

Changing the GameFinally, LCW is working closely with all our

partners—residents, other agencies, and public officials—to provide information and public en-gagement opportunities that can shape good public policy. These efforts range from briefings and testimony at public hearings and conferenc-es, to collective action that shines a spotlight on the worst practices of the top foreclosing lend-ers, to negotiations with banks and servicers on statewide approaches to eviction and property disposition. This is critical not just to short-term efforts to repair the damage that’s been done, but to long-term “seismic retrofits” that will cre-ate a safer future.

Foreclosure Update:How LCW is Beating Back the Foreclosure Tide

LCW recently acquired 4 housing units at 67-69 Newbury Street, and is looking to put together a

scattered site rehab rental housing portfolio.

year-old Queyron Nolberto first began homeownership

counseling in July 2007 with an interest in purchasing one of LCW’s affordable townhouses at Scarito Homes. With an overwhelming appetite for learning, Queyron took full advantage of all the programs LCW had to offer. After our first-time homebuyer workshop and intensive one-on-one counseling with Homeownership Education Director, Juan Bonilla, Queyron participated in our first “Welcome Home” IDA cohort, an accelerated individual development account program for mortgage-ready participants. After saving for 6 months and accumulating $4800 through his IDA account (his $1200, matched with $3600 through private funds raised by LCW), Queyron began the house-hunting process as properties were being foreclosed around our neighborhood.

While we do not recommend that our first time homebuyers buy their first home at foreclosure auction, Queyron was determined to

find the silver lining in this foreclosure mess. Queyron stayed in close contact with Juan, his counselor, received lots of support and guidance through the process and asked a lot of questions about the property, loan options and future implications of his purchase.

Armed with sound education and cautious advice

from Juan, Queyron bought a house at a foreclosure auction. The single-family home was in good condition and Queyron was able to purchase the property for $30,000. He financed the purchase through a MassHousing/Mass Advantage loan through Metro Credit Union, and continues his learning at LCW through our post-purchase education and counseling.

A silver lining indeed…..Of the 9 participants who saved through LCW’s first Welcome Home IDA cohort, 3 have closed on their first homes, 2 are under contract and the other 4 are searching for the right option for them. A second Welcome Home IDA cohort for mortgage-ready participants will launch in November.

A silver lining 25

The Nolbertos’ new home on Hazel Place

Elizabeth, Kaylee and Queyron Nolberto on the porch of their new home

Union Crossing will serve as an important model for other developers seeking to create a “triple bottom line” benefit for families, busi-ness, and the environment. This is especially important in the current economic climate, as unprecedented numbers of people in our City are being forced out of their homes due to fore-closures and oil prices that are reaching historic highs

– both of which are hurting working families, particularly in Lawrence. Union Crossing has designed an insulation strategy that will conserve more than 50% of heat energy compared to a conventional mill redevelopment, and this efficiency will save money for the residents.

To find out more about the energy efficient design at Union Crossing, please visit

the architects’ website, and read the entire Union Cross-ing Master plan in the client area at:

www.coldhamandhartman.com

Username: unionPassword: crossing(all lowercase)

Phase 1 of Union Crossing includes the redevelopment of Building 9 into 60 units of high-quality, energy-efficient, and healthy rental housing. These units are designed to fit the needs of Lawrence families in terms of rent, amenities and com-munity.

To insure that this high-quality, healthy housing is designed and developed to meet the needs of Law-rence families, the com-

munity has been involved in the planning process of Union Crossing from the beginning, and the final design and prod-uct is the result of a true com-munity process that improves the housing stock across the spectrum of incomes repre-sented in the local community.

The Union Crossing proj-ect encourages equity and promotes housing choice, all within walking distance to em-ployment and transportation options. With the connection

to LCW’s programs, such as to IDA accounts, job training, and financial literacy training, the Union Crossing project enhances the mobility of its residents and provides greater opportunity for access to jobs.

If you would like to get more in-formation about the project or would like to join the planning committee, please contact the Project Manager Katy Easterly at 978-722-2621.

UNION CROSSINGUPDATE

Union Crossing Energy System Design

view looking south accross walkway andgreen deck to new entrance to Building 9

LCWBY THE NUMBERS

OUR MEMEBERSHIP IS

4,071AND GROWING

WE REGISTERED

507 NEW LAWRENCE

VOTERS

MOVEMENT CITY

SENT

14 SENIORSTO COLLEGE

With over 300 friends, family and community members in attendance, LCW was proud to honor and celebrate the good works of one of our found-ers and champions, Attorney Armand Hyatt, on September 26. In what was a first in the LCW Hall of Records – we successfully kept the event a secret from Armand, who was completely surprised when he walked into the J.J. Levis Pa-per Building. The Levis Paper Building is owned by Juan and Lou Yepez, who were abso-

If music is a dynamic fusion of mathematics and creativity, Abdiel O. Perez, LCW’s Staff Accountant, is uniquely quali-fied to be a true maestro! A talented guitar player and teacher, as well as an aspir-ing CPA, Abdiel has a passion for both music and numbers. Born and raised in Lawrence, Abdiel attended and graduat-ed from Lawrence High School in 2003. Then, in 2007, Abdiel graduated from the Western New England College School of Business in Springfield, MA,

lutely amazing and generous in their support (and patience) as LCW staff and volunteers transformed the industrial space into a stunning, illumi-nated room surrounded by beautiful silhouettes created by Movement City Art Instruc-tor Flyn Costello.

With scrumptious tastings supplied by Shadi’s Restau-rant, Simply Elegant Catering, The Colosseum Restaurant and Piro’s Bakery, guests enjoyed a lively evening of

and received his Bachelor’s degree in Accounting.

Abdiel grew up under the watchful eye of his father, the Pastor Reverend Cecilio Perez, who encouraged him and his brothers to take music les-sons so that they could play in his Vine Street church on Sundays. Through his church, Abdi not only learned to play and love the guitar, but he also established a connection to the North Common Neigh-borhood that remains today.

toasting and roasting of our dear friend Armand. We were graced by a wonderful perfor-mance by the Berklee College of Music All Star Band, which showcased some Movement City alums. The night would not be complete, however, without the incredible jam session of Lead Singer and Executive Director Bill Traynor, Guitarist and Staff Accoun-tant Abdiel Perez, with Board Member and Guest of Honor Armand Hyatt on harmonica. We think it is safe to say that

Abdiel has been part of the LCW Finance Department since July 2007, working and learning under the watchful eye of another Cecilio - Cecilio Hernandez, LCW’s CFO and also a Pastor. A young man with a great future and a great sense of humor (you will most likely hear him laughing when you step into the Hennigan Center), Abdiel is a joy to work with for all of us at LCW! Thank you for all that you bring to the Network Abdi!!

no other event if the Merri-mack Valley has had a perfor-mance quite like this one, as bluesy numbers from the Roll-ing Stones and Eric Clapton brought the crowd to its feet.

And on top of the wonder-ful celebration, LCW was able to raise over $23,000 towards the Scholarship Fund. Thank you to all of our sponsors and guests for making this such a magical night for us all.

STAFF SPOTLIGHT: ABDIEL PEREz

CelebratingArmand Hyatt

Movement

City Summer

Achievem

ent Cer

emony

Yovani & G

abriela @ MC

Graduation

Sovereign Check PresentationGuides and Amigos

LCW and The Savings Bank

MC Summer Program’s In A Yellow Wood

State Rep. David T

orrisi @

Farnham Court

National Night Out Armand and Julia

Alma & Melkys @Foreclosure Summit

Residency Walk for Peace

Senator Kerry @ Our House

LCW

candid

s

Lawrence CommunityWorks and Movement City are blessed to have young alumni like Diogenes Alex Diaz. Alex as we know him, or Dio as he is known at Deloitte where he works on a variety of management and IT consulting projects, discovered an opportunity to give back to Movement City through his company’s Jeans Day Charity Program. Alex nominated Movement City to be a recipient of monies raised by Deloitte employees. In exchange of a minimum $5 contribution, employees could come to work in jeans on specific Fridays. Alex and the Deloitte family generously donated $873 to Movement City. Thanks to Alex we have a new friend in Deloitte Consulting and look forward to more ways in which we can work together.

“I am a firm believer that if you do not know where you came from and acknowledge those who have helped you along your life’s journey, you will not know where you are going. While I was in high school, Movement City provided me with an environment where I was able to explore my

true identity and self worth. As a result, Movement City is the foundation of who I am today and of all of my success. Since graduating from Northeastern University, I have taken every opportunity to say thanks to Movement City, whether by volunteering or providing new resources and opportunities to advance their mission. Today, I work for Deloitte Consulting LLP, a firm that is extremely committed to community service. Due to the various community service initiatives and fundraising opportunities Deloitte provides, and my commitment to both Deloitte and Movement City, I knew it would just be a matter of time before I would be able to foster a relationship between Deloitte and Movement City.”

-- Diogenes Alex Diaz

Lawrence Community-Works is proud to announce that it has been selected to receive a $25,000 award from the TD Charitable Foundation for their “Hous-ing for Everyone” competi-tion. Of the 423 applications received across the TD Bank

footprint from Maine to Florida, only 48 organizations were awarded. LCW finished in 3rd place in Massachusetts, and was completely surprised by TD staff when they came to visit for the “final interview.” “TD Banknorth staff did a great job of keeping this a surprise,” said Lisa Torrisi, Director of Resource Development for LCW. “They called and told us we had made it to the final round of the process and they had a few out-standing questions that they would like to review in a final interview. I brought department heads and directors together for the interview and told them we needed to bring our ‘A-game’, but when we saw the TD staff walk in with balloons we knew there was something else to this visit.” TD Banknorth employees Chris Comeau and Maria Fina were on hand to de-liver the outstanding news. Of the LCW reaction to the visit, Comeau noted in an email, “… I will just say that it would be an understatement to call this morning’s check presentation a success!”

With last year’s transition into our new space, and so much activity going on at LCW, we left one little thing behind at our 60 Island Street home…. OUR WEB-SITE! New phones, new servers and new technol-ogy left us without a web presence for a bit of time, and with all eyes on the foreclosure tsunami that hit our neighborhood, we sim-ply forgot about our web-site for a little while. All that changed this summer with the launch of our new and improved website that

houses all the goings-on of LCW – and that’s a lot. We were faced with the challenge of showcasing all of our programming in an exciting and professional manner, while at the same time leaving room for the creative spirit of each of our endeavors. While it is still a work in progress, we are excited to be back in cyberspace and look forward to future interac-tive modules for members and visitors to use. Please check us out at:

w w w. l c wo r k s . o r g

W E B S I T E L A U N C H

Member Profile: Movement City Alum Gives Back

LCW Wins TD Banknorth’s Housing for Everyone Award

LCW is back up in cyber space

Save the Date

Saturday, January 24, 2009

Annual Meeting and

(New) Convention

at the South Lawrence East School

Stay Tuned For Details . . .

LawrenceC o m m u n i t y W o r k sOur House Campus168 Newbury StreetLawrence, MA 01841