In search of funding for JALA foreclosure mediation


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  • | 12:00 p.m. February 15, 2010
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by Mike Sharkey

Staff Writer

The economy may be leveling off and may even be recovering a little. Unemployment has steadied and home sales are slowly creeping up.

However, the national and local foreclosure problem isn’t getting any better. In Jacksonville, thousands of foreclosures are filed a month. Many of those homeowners will be able to negotiate with their lenders on their own. Some will have the luxury of hiring a private attorney.

The rest are caught in the middle and desperately need the assistance of attorneys from Jacksonville Area Legal Aid. Last year, with help from the City and every other organization willing to donate, JALA opened a foreclosure mediation office on the Northside and staffed it with two attorneys and support staff.

Earlier this year, due to funding issues, that office closed. Now, a handful of City Council members are looking at creative ways to reopen the office. One proposal, in the form of draft legislation sponsored by Council member Glorious Johnson, would take $112,500 out of the Council contingency and use it to fund the office.

Last week, Council Vice President Jack Webb and Council member Kevin Hyde talked about that option and others that may exist.

“That wipes out the special contingency. There will be nothing left,” said Peggy Sidman, an attorney with the Office of General Counsel, adding the fund originally had $250,000 in it.

Last year, Council provided $59,000 out of the same fund.

“There will be resistance if we wipe out the entire contingency fund,” said Hyde.

According to JALA Executive Director Michael Figgins, the Jacksonville Community Foundation is willing to help. Last year, JCF provided $30,000 worth of assistance to fund the office.

“The JCF is considering providing a similar or lesser amount to JALA for Ribault for 2010, but it was clear than (sic) any award will be contingent on additional City funding,” said Figgins in an e-mail to Johnson’s executive council assistant.

Webb said he plans to meet with representatives of the mayor’s office to discuss potential funding sources for JALA’s foreclosure mediation office.

Hyde also raised the issue of levying a fine on those convicted of certain criminal acts. He said a Florida Statute permits such a fine, which is used by Miami-Dade County. The fee is $85 and the entire amount would go directly to JALA.

However, Hyde has met with Chief Judge Don Moran who Hyde said was leery of the idea.

“Moran’s reaction was tepid to say the least,” he said, adding there is already a “laundry list” of fees assessed to criminals and collecting those fees can be difficult to impossible.

Hyde added the fee has been challenged in the state’s court system.

“My read on it is that it appears to be Constitutional,” said Hyde. “I think it can be done. I am comfortable with the legality of it. If we allocate the entire $85 to JALA, that would be a large source of revenue to help foreclosure mediation. The bottom line is, we haven’t filed the legislation yet out of respect for the courts.”

According to Hyde, Moran asked him to further discuss the matter with JALA’s board of directors.

“I can’t think of a better use of the money,” said Hyde.

Since Johnson’s legislation is still in draft form and Moran isn’t close to approving the new fees, the JALA foreclosure mediation office will remain closed for now.

“It looks as if any relief for JALA is some time away,” said Webb.

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