ACORN Shutting Down

The Association of Community Organizations for Reform Now Inc., a group that often over the years had an adversarial relationship with lenders but also partnered with some on occasion, said it plans to bring its operations to a close over the coming months. ACORN said it will be closing its remaining state affiliates and field offices by April 1 as well as developing a plan to resolve its outstanding debts and other obligations. The group lost its government funding after right-wing political activists pretending to be involved in prostitution distributed a video of a group representative advising the "prostitute" to misrepresent her profession in financial dealings. The group has responded by noting, among other things, that one of the activists involved in creating the video has been arrested in a separate incident. It also said it has challenged the loss of government funds in court and received a ruling in its favor. Nevertheless, the group has decided the obstacles are too great to continue operating. While the larger organization is folding, some previously involved are still operating under different names. Two separate groups of people who previously were involved with ACORN's New York and California affiliates, for example, have said they are respectively establishing new organizations in those states.