Foreclosure plan aims to shield renters

PROVIDENCE, R.I. (WPRI) - In an effort to protect families from foreclosure, Providence Mayor David Cicilline unveiled two ordinances Monday morning during a news conference in the city's Olneyville neighborhood.

"Unfortunately, this foreclosure crisis is having a devastating impact on our neighborhoods, pushing too many families to the brink of homelessness," said Cicilline. "The proposed ordinances address the need for bold action to protect families, many of whom find themselves faced with sudden eviction, with no recourse."

The first proposal, Tenants Protection Against Foreclosures Ordinance, is meant to protect renters from eviction when their apartments are subject to foreclosure proceedings.

A proposed state law, that would have provided similar requirements, failed in the General Assembly last year. Rhode Island Housing Executive Director Richard Godfrey applauded Providence for stepping in to provide that protection.

"No one can relocate in three days. I couldn't pack up one room in my house in three days, let alone moving in three days," Godfrey said. "We need basic, reasonable protection for tenants."

The second proposal, Foreclosure Mediation Ordinance, would require financial institutions and property owners to engage in mediation with a HUD-approved counselor before moving ahead with a foreclosure.

Cicilline said a similar mediation program in Philadelphia has prevented or delayed foreclosures in nearly 80 percent of the 552 cases that went into mediation.

The number of foreclosures in Providence has doubled over the past year, from 718 in 2007 to 1,577 in 2008. Cicilline said the problem has only been exacerbated by the state's high unemployment rate.

Both ordinances have been sent to City Council for approval.

In the meantime, Godfrey urged anyone facing foreclosure to contact the Rhode Island Housing HelpCenter at 401-457-1130