St. Croix Source, August 11, 2016
The V.I. Legal Assistance Foundation is getting $368,000 as part of a federal settlement with Bank of America. The money has to go toward legal assistance to prevent mortgage foreclosure and to community redevelopment.
The V.I. Legal Assistance Foundation supports legal aid for V.I. residents and overseas charitable contributions from interest on money held in trust by the courts during civil disputes.
Eric Green, the independent monitor of the settlement, announced the V.I. distribution on Wednesday.
The foundation headquartered in Christiansted is one of 56 legal-assistance organizations in the United States and territories receiving funds under the settlement, which settled legal claims arising from mortgage-related activities by Bank of America and its subsidiaries.
A distribution was made earlier to NeighborWorks America, a national, congressionally chartered nonprofit organization that provides training and support for community-based redevelopment programs in the United States and Puerto Rico.
The distributions, totaling more than $490 million nationwide, were triggered in December by President Barack Obama’s signing into law an act extending federal tax relief through 2016 to homeowners who otherwise would have incurred income-tax liability from mortgage debt forgiveness they received under consumer-relief provisions of the settlement. The money being distributed to the nonprofit organizations is from a fund established under the settlement to provide federal tax assistance to homeowners in case Congress failed to extend the tax-relief legislation.
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