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The money can also be transferred through multiple federal or state agencies, Epstein said. For example, Affordable Housing Centers of America — a Chicago-based ACORN offshoot — has received funds through Illinois’ housing finance agencies, he said.
As part of the $1.1 billion payout, Illinois Attorney General Lisa Madigan will get $110.8 million.
The money “will go towards remediating the effects of historical levels of foreclosures … legal aid services, housing counselors, guidance counselors, outreach to buyers, funds to community revitalization initiatives,” said her deputy press secretary, Maura Possley.
But “there will be checks and balances,” she insisted.
When pressed by TheDC for evidence that the funds will be allocated without concern for partisan advantage, she said the interview was “getting to a point where it is insulting. … We’re in the initial stages of setting up this plan, and there will be effective checks and balances in place.”
Some of the Democratic attorneys general have already said they will use their money to spur further lawsuits against the banks.
New York Attorney General Eric Schneiderman gets at least $93.7 million. “New York will be able to distribute these funds to legal aid, homeowner assistance and advocacy organizations to help distressed individuals facing foreclosure or servicer abuse,” said a Feb. 9 statement on his website.
Iowa Attorney General Tom Miller was the lead AG in the negotiations with the banks, and came away with a promise of $15.3 million.
The money will help fund “a 911 help hotline, a legal aid structure … [and] future consumer-enforcement efforts,” said Geoff Greenwood, Miller’s spokesman.
Nevada Attorney General Catherine Cortez Masto is slated to receive $60.1 million, which adds to a prize of $30 million won from a related lawsuit against Bank of America.
The money will be used to “fund statewide consumer protection efforts, support homeowner protection efforts through legal aid, and most importantly increase resources for criminal financial fraud investigations and prosecutions,” said Masto’s spokesman, Jennifer Lopez.
The $25 billion deal did not grant the banks sanctuary from further lawsuits or investigations that may generate far more revenue for Democratic lawyers and progressive groups. Those investigations include one run by Schneiderman.
Some states are trying to redirect their shares of the $2.5 billion toward priorities unrelated to housing, Estevao complained.
In Missouri, Attorney General Chris Koster announced that he’ll send $40 million to the state legislature, and Democratic Gov. Jay Nixon has said he’ll push for the funding to be sent to state’s universities.
Many of the 27 Republican attorneys general are sending their funds to their legislatures.
In Virginia Republican Attorney General Ken Cuccinelli is sending nearly all of his $69.6 million to the legislature. Up to $900,000 of the money will be used to top up the “Regulatory, Consumer Advocacy, Litigation and Enforcement Revolving Trust Fund.”
Georgia’s take of $104.1 million will be sent to the state treasury.
Michigan’s slice of $101.8 million will go to the legislature, but Republican Attorney General Bill Schuette is asking that $6 million be used for the “investigation and prosecution of foreclosure-related crimes … [and] consumer protection education and assistance.”
New Jersey’s portion, $75.5 million, is slated for “various state housing programs.”
In Wisconsin, Republican Attorney General J.B. Van Hollen directed that $25.6 million of the state’s $31.6 million payout be used to close a state shortfall, and not be spent on local, Democratic-affiliated advocacy groups.
The announcement was furiously criticized by Milwaukee Mayor Tom Barrett, who said, “not one dime should be used to fund the unbalanced state budget.”
NEXT: Other GOP AGs have not announced how they will spend the money
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