Around The District

Illinois

Study Reports: Peoria is a resurgent city
At a recent Peoria area Community Economic Development Roundtable Roundtable Forum, local banking, housing, economic, governmental, regulatory, nonprofit and for-profit organizations met to discuss their respective financial programs, products, services, and institutional needs.

Rick Mattoon, a Federal Reserve Bank of Chicago senior economist and economic advisor, delivered the keynote address, "An Outlook on the U.S., the Midwest, and Peoria." Mattoon cited a study from the Boston Fed entitled: "Reinvigorating Springfield's Economy: Lessons from Resurgent Cities." The report classified Peoria as one of ten resurgent U.S. cities from which the city of Springfield (MA) could draw valuable lessons. The report stated that across the ten cities, industry mix, demographics, and geography were not the dominant factors in their renewal. Rather, the principal factor is social capital – leadership from government, nonprofit and business sectors, although the authors noted that Peoria's economy had diversified significantly over the past several decades.

For additional information, contact the Consumer and Community Affairs division of the Federal Reserve Bank of Chicago at (312) 322-8232.

Indiana

Forum on Foreclosure Scams
On October 21, 2009, the Federal Reserve Bank's Community Affairs Division held an Indianapolis community development forum. The guest speaker was Gabrielle Owens, Section Chief of the Consumer Protection Division, Office of the Indiana Attorney General (OAG). Ms. Owens discussed foreclosure scams and the legal requirements for foreclosure consultants in the state of Indiana.

The OAG has seen an explosion of consumer complaints concerning foreclosure consultants. In 2008, the OAG received 19 complaints about foreclosure consultants from consumers. As of September 29, 2009, consumers had filed 101 complaints against foreclosure consultants.

Ms. Owens indicated that in late 2008, the OAG launched a proactive project to identify and investigate foreclosure consultants operating or soliciting in Indiana. The proactive project proved to be a huge success. As of September 29, 2009, the OAG had launched 146 investigations as a result of this project.

In addition, the program director of Community Affairs, Desiree Hatcher presented and discussed the Federal Reserve's Foreclosure Avoidance Scam ads that direct consumers to free resources on avoiding foreclosure scams at www.federalreserve.gov.

Foreclosure Prevention Workshop
As part of the Federal Reserve Bank of Chicago's Indiana Money Smart Week, on October 21, 2009, the Bank's Community Affairs division participated in a foreclosure prevention workshop, which was hosted by the Indiana Foreclosure Prevention Network. The event, held in Indianapolis, provided participants with an opportunity to meet face to face with their lender in an effort to find alternatives to possible foreclosure proceedings. In addition, participants waiting to meet with lenders were provided with presentations throughout the day on topics including: the Role of the Federal Reserve's Community Affairs Division, Money Smart Wee, Strategies for Rebuilding your Credit, and the Rights of Consumers who are Facing Foreclosure.

Iowa

Iowa continues to support tourism as economic development engine
As we reported in April of this year, Iowa continues to attract tourists in significant numbers, fueling economic development as a result.

One of the vehicles Iowa uses to support tourism is a state fund called the Vision Iowa Program. This program, according to a news release of September 9, 2009 by the Office of the Governor, "provides financial incentives to communities for the construction of recreational, cultural, educational or entertainment facilities that enhance the quality of life in Iowa." The news release further states that, under the program called Community Attraction and Tourism (CAT), the Fund has already provided 322 grants for over $120 million to leverage local and private funds. Iowa's governor, Chet Culver, announced that a $96,000 Vision Iowa grant will go to the city of Belle Plaine for construction of a new recreational aquatic center. The total project will cost over $2.5 million and is expected to be completed by next summer.

For more information, see www.iowalifechanging.com/news, or call Troy Price, Governor's Office, (515) 725-3085.

Michigan

New Foreclosure Web site
The Detroit Office of Foreclosure Prevention and Response (FPR) has created a new website geared to help residents learn their options and hopefully spur them to take action.

Every day, hundreds of Detroit families face the challenge of figuring out how to afford keeping their family home. Many families have never faced a challenge like this before, and are not sure what to do. Others are completely overwhelmed and walk away.

The purpose of this website is to help families keep and stay in their homes by connecting people to one centralized location with free information and resources related to the foreclosure process.

The Foreclosure website will provide the facts about the foreclosure process: what to do if help is needed, how to work with lenders, locate free housing counselors, and avoid foreclosure rescue scams.

According to the Detroit Office of Foreclosure Prevention and Response (FPR) web site, it is "an independent public/private model serving as a centralized clearinghouse to share tools, resources and recommendations to leverage and enhance the work of our dedicated partners throughout the City of Detroit to reduce the effects of the foreclosure crisis on families and neighborhoods."

FPR does not provide any direct service to individuals. To view the web site, go to www.foreclosuredetroit.org.

Wisconsin

SBA ARC Loans more popular in Wisconsin
The U.S. Small Business Administration (SBA) recently released data showing a higher level of participation in Wisconsin, by both lenders and borrowers, in the SBA's America's Recovery Capital (ARC) program. With 220 loans made by 68 different lenders, Wisconsin is the second highest user of the program behind Minnesota.

The ARC loan program was created in the American Recovery and Reinvestment Act of 2009. ARC loans are interest-free loans of up to $35,000, with principal payment deferred for up to twelve months and 100% guaranteed by the SBA. The loans are intended to help eligible small businesses weather economic trouble by helping to make payments on existing loans.



For a complete list of participating lenders by and the total number of ARC loans made by state, visit: http://www.sba.gov/sba_recovery_arc_lenders.pdf/.