I Would Have Voted for the Foreclosure Prevention Act of 2008 as a Member of Congress-- for Riverside County’s Families and Futu

[courtesy of California Progress Report]

By Julie Bornstein
President of the Campaign for Affordable Housing and
Democratic candidate for Congress

The American Dream of owning one’s own home is on life support and not getting the attention it needs. For too long housing policy has been relegated to fourth tier status and now that neglect is in evidence. Foreclosures are up, sale prices are down and housing affordable to working families and seniors is still hard to find.

California’s rate of foreclosure is over twice the national average; the number of mortgage foreclosures reported for Riverside County for first quarter 2008 was over 161 percent higher than first quarter 2007. Among California Counties, the actual number of Riverside County foreclosures, 15,022, is second only to Los Angeles County (20,000). At the same time, the median price in Riverside County fell from $344,370 in October 2007 to $307,500 in February 2008.

Those are the facts and the figures, but the toll on Riverside County families and the impact on the economy are more severe. Here are some of the consequences: 2008 forecasts 94,300 housing starts compared to 194,000 in 2006; property taxes and real estate transfer taxes that fund local services will decline significantly resulting in additional job losses.

Even this wave of foreclosures makes it harder, not easier, for Californians to have a place to call home, either rented or owned. The overall supply of housing has not increased compared to the need but is declining. Californians continue to pay monthly mortgages that are three times the national average and minimum qualifying incomes must be 2.5 times the national average. Fewer households are qualifying for market-rate financing while the number of families that need rental and owner housing they can afford will continue to grow.

In response to the worsening crisis, the Federal Housing Administration (FHA) is making some changes to its FHASecure program so it can serve more homeowners. The changes are welcome but they are not enough.