Finance
2:10 pm
Wed July 17, 2013

Peoria LISC benefiting from national bank settlement

Peoria’s Local Initiatives Support Corporation, or LISC, is getting money from a national settlement to help revitalize the city’s struggling neighborhoods. The new organization is getting part of a $25 billion settlement with the country’s five largest bank mortgage providers. The banks were accused of fraudulent practices during foreclosure proceedings including "robo-signing."

Illinois Attorney General Lisa Madigan announced Tuesday that Peoria LISC is getting $3 million. The group will use the money to tear down 20 buildings on the East Bluff and create 30 new homes. Half of the homes will be for sale and the others will be used as rental properties for the special needs population.Madigan says $70 million is being distributed across the state as part of the settlement to help communities hardest hit by the national foreclosure crisis.