ACLU and Center for Popular Democracy file FOIA lawsuit over efforts to limit municipalities' foreclosure prevention options

Submitted by Anonymous (not verified) on Fri, 12/06/2013 - 1:03pm

Press release from ACLU: SAN FRANCISCO – The American Civil Liberties Union and the Center for Popular Democracy today filed a lawsuit under the Freedom of Information Act (FOIA) to compel the Federal Housing Finance Agency (FHFA) to provide details about the agency's relationship with the financial industry and its efforts to block municipalities from using eminent domain to prevent foreclosures.

Banks have foreclosed on millions of homes, and vast numbers of homeowners remain at risk of losing their homes to foreclosure because their mortgages are "underwater," meaning homeowners owe more than their properties are now worth. Communities with large African-American and Latino populations such as Richmond, Calif., and Irvington, N.J., have been particularly hard hit.

"For years, communities of color across the nation were targeted by banks peddling subprime toxic mortgages, greatly contributing to the current foreclosure crisis," said Udi Ofer, executive director of the ACLU of New Jersey. "Now communities are responding by considering novel approaches to help save their neighborhoods. Municipalities should be able to consider all of their options."

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The complaint, Alliance of Californians for Community Empowerment, et al. v. Federal Housing Finance Agency, was filed in the U.S. District Court for the Northern District of California. It was brought by the ACLU, the ACLU of Northern California, the ACLU of New Jersey, and the Center for Popular Democracy on behalf of a number of community groups across the country.

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