Santander donates $1.3M to Providence as part of discriminatory lending settlement

PROVIDENCE – Santander Bank, N.A. has committed a total of $1.3 million in grants to support low- and moderate-income neighborhoods as part of a settlement with the city in connection with a lawsuit that had been filed over discriminatory lending practices.

The lawsuit, City of Providence v. Santander Bank, N.A., was filed in U.S. District Court for Rhode Island against the bank’s U.S. operations in May. The lawsuit has since been dropped by the city, according to the mayor’s office.

The city had alleged that the financial institution ?discriminated against the city’s minority communities by refusing to make prime mortgage loans ?as required by the Fair Housing Act.

Mayor Angel Taveras said the money from Santander shows its commitment to the city.

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“It’s going to help families who need the help buying a house as well,” Taveras said.

He said the money also will help with down payments and closing costs associated with home buying.

“For me, this is about helping people buy homes,” Taveras said.

The grants are to be awarded to three organizations:

  • $350,000 to the Providence Community Library to support programs in low- and moderate-income neighborhoods, with special focus on financial literacy and homeownership.
  • $450,000 to AS220, a nonprofit community arts center, to support the development of its mixed-use gateway project to be located at 204-206 Broad St.
  • $500,000 to Rhode Island Local Initiatives Support Corporation to establish and administer a new program to award grants to help cover mortgage down payments and closing costs for low- and moderate-income residents.

The grants are expected to be finalized before the end of the year; the first grants are expected to be awarded in first quarter of 2015.
Santander Bank and the city of Providence look forward to working together as partners to strengthen the community, according to a press release from the mayor’s office.

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