Schneiderman on where the JPMorgan Chase money is going

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Eric Schneiderman. (Jessica Alaimo)
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ALBANY—Attorney General Eric Schneiderman will control the distribution of the bulk of the $613 million New York is about to receive from a settlement with JPMorgan Chase, and said today that most of that money will go toward providing housing and financial relief to victims of the 2009 housing crisis and Superstorm Sandy. 

J.P. Morgan Chase will likely pay the state of New York $613 million, as part of its $13 billion settlement with the U.S. Department of Justice over the 2009 housing crisis. 

Schneiderman said the state’s share of the settlement will be spent on housing and economic issues.

“We want the money to go to help the people who were hurt," he said at a press conference. 

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Of the $613 million coming to the state, 15 percent will go to the general fund and 85 percent will be controlled by Schneiderman, who said he’ll be seeking requests for proposals.

Some money will be used for counseling storm victims facing foreclosure and propping up municipal land banks, which allow cities and towns to buy vacant homes.

“It recognizes the harm done by the reckless behavior of Chase, not just to our families but our communities,” Schneiderman said. “The settlement dedicates funding to address problems of vacant properties. Every community in upstate New York has been grappling with these issues.”

Some funds will also go to help Superstorm Sandy victims get low rates on new loans.

“We’re now finally going to be able to inject enough money into the housing market, you’ll see a faster rise in home prices to get the economy moving again,” Schneiderman said.

More settlements are likely, Schneiderman said.