CHICAGO, Ill. – Illinois Attorney General Lisa Madigan announced Wednesday that $70 million of settlement funding will be used to help rebuild Illinois communities that have been devastated by the national foreclosure crisis.
The funding stems from a historic $25 billion national settlement last year with the country’s five largest bank mortgage providers. It addressed allegations of widespread robo-signing and other fraudulent practices during foreclosure proceedings.
The Local Initiatives Support Corporation (LISC) in Peoria will receive $3 million of the funds to support the demolition of 20 buildings and creation of 30 new homes in Peoria’s East Bluff neighborhood. Half of the new homes will be rental properties for the special needs population.
The funding aims to rebuild and rehabilitate vacant and abandoned properties in order to turn around neighborhoods and provide critical housing counseling to homeowners and renters to build stable communities.