HOMEOWNERS fortunate enough to finance the purchase of their homes at affordable, predictable rates have watched with concern as millions of Americans are dragged into what has become the worst mortgage-foreclosure crisis in modern history. Although individual circumstances may vary, the ripple effect of this crisis poses a very real danger to us all, and particularly to the extraordinary momentum that Providence has attained as a city over the past several years.

The strengthening of our neighborhoods has always been a top priority for my administration. Working hand-in-hand with residents, community-development corporations and other partners, we have ushered in billions in new investments and created safer streets through community policing, comprehensive after-school opportunities and other innovative programs.

Despite our considerable progress, Providence has not escaped the economic slowdown and foreclosure crisis that has swept across America. Locally, more than 1,500 homes have been foreclosed on, threatening our momentum and, most importantly, hurting thousands of working families. Consequently, we have taken action to mitigate this threat and protect our neighborhoods using all available resources.

Last fall the City of Providence was proud to join Rhode Island Housing in announcing the opening of its new Help Center, where a team of eight professional housing counselors is busy providing advice and assistance to residents in danger of losing their homes. Their expertise has already helped dozens of Providence homeowners make informed financial decisions and, most important, avoid foreclosure and the loss of their homes.

Foreclosed properties can sit vacant for months while the financial institutions that own them, sometimes based as far away as Europe, decide how to proceed. From the bank’s perspective these are simply lines on a ledger sheet, yet we are called upon to pick up the broken pieces at a considerable cost. This situation is particularly frustrating, as these vacant structures become targets for vandalism and crime, and they depress the value of surrounding properties while dampening neighborhood spirits overall. As a result, I have proposed an ordinance that assesses penalties against banks and other lending institutions that hold onto these properties without regard to the detrimental effect that this has on the surrounding homes and neighborhood.

Additionally, a new loan product offered as part of the City’s Housing Trust program provides the funds to turn vacant and vandalized property into occupied housing stock. Qualified applicants can use these funds to cover unexpected expenses and repairs that might otherwise keep them from becoming homeowners. We also support CDCs and other community-based organizations that offer financial counseling services to keep our families from losing their homes in the first place, ensuring that our neighborhoods remain strong and healthy.

This past March, I announced that Providence was one of the first cities in the region to request a $10 million Section 108 loan from the U.S. Department of Housing and Urban Development (HUD). These funds facilitate the acquisition, rehabilitation and re-sale of foreclosed homes through zero-interest and low-interest loans and will be repaid through future Community Development Block Grant (CDBG) allocations. Providence will benefit greatly from this economic stimulus, generating new employment opportunities for construction workers, subcontractors and others in the building trades and real-estate industry. I am pleased that the Providence City Council understands the urgency of this and has taken the first step in approving this loan request. It is in the best interest of our city that the council move quickly to complete the process so we can secure these much needed funds. These resources will allow us to help many Providence families during this very difficult time.

Homeownership is an essential part of the American Dream and is fundamental to the strength of our families and neighborhoods. It generates wealth and increases people’s sense of community and neighborhood pride. For many families, because of this foreclosure crisis, homeownership has become a primary source of stress.

As I listen to residents in Elmhurst, the Reservoir Triangle and many other city neighborhoods, I hear about the great difficulties many of our families face today. I am confident that as a nation we will soon overcome this economic slump. Even so, my administration is working hard to minimize the threat of foreclosure for Providence families and to protect the great progress in our neighborhoods.

David N. Cicilline is mayor of Providence.