NEW YORK, NY December 06, 2007 —Local community groups trying to help homeowners caught in the growing foreclosure crisis will get some assistance from the city. WNYC's Bob Hennelly reports.

REPORTER: The Bloomberg administration and the City Council have teamed up to fund the Center for NYC Neighborhoods. It will support local groups helping thousands of families in danger of losing their homes. Sarah Ludwig directs a citywide non-profit that is working with the city.

LUDWIG: The foreclosure crisis affects not only individuals, but entire neighborhoods and I would say also jeopardizes our entire local and regional economies.

REPORTER: City officials and consumer advocates say outreach is critical to help at risk households consolidate their outstanding consumer debt, which in turn can help them hold on to their homes. According to a recent NYU study, at least half of the homeowners in the city's poorest neighborhoods are saddled with high cost sub-prime loans. For WNYC, I'm Bob Hennelly.