Housing bill sparks hope in hard-hit SB County

From Rep. Joe Baca:

"Today's housing stimulus legislation is a good bill. It provides mortgage refinancing assistance that will help families facing foreclosure keep their homes, and help many other families avoid foreclosures in the future. It also helps to shore up Fannie Mae and Freddie Mac, and creates stronger regulations so the GSEs will remain sound in their ability to provide affordable housing financing for American families."

"The bill also contains language from two important provisions that I authored, and successfully fought to include in the final version that passed the House. The first of these provisions protects American consumers by requiring that brokers and lenders fully disclose the terms and true costs of all home loans three days after application and at least seven days before closing. The second provision ensures funding is available for in-person home counseling and outreach to families in delinquency or in danger of foreclosure. I believe this access to in-person outreach and in-person counseling is essential in helping homeowners who are behind on their payments work out their loan options so that they can keep their homes."

"This legislation is especially critical for the Inland Empire, which currently ranks fifth in the nation in foreclosures. With 8,500 homeowners experiencing foreclosure every day, the American people cannot wait any longer for this emergency housing assistance."

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From Rialto Redevelopment Director Robb Steel:

Steel said the city is dealing with about 900 vacant homes and 200 more in early stages of foreclosure, numbers up from just a handful as recently as early 2006.

"Hopefully, this legislation will come through and help turn off the spigot of new foreclosures," Steel said.

Steel said the key to new legislation is how much money will come available to the city for preventive measures to stanch the flow of fleeing homeowners.

"We want to keep homeowners from losing their homes, that's number 1," Steel said.
Steel said his strategy in Rialto is three pronged, and it needs resources. First, its assistance and education to keep sinking homeowners afloat. Second is to use code enforcement and other inspectors to manage and maintain vacant homes to keep them from falling into ruin. Third, and most drastically, is to buy up property and resell.

"We don't want homes to be abandoned, deteriorate and then ultimately go to renters," Steel said.

The key question of this legislation is still unanswered: How much money the city can get.

"The question is how much trickles down and gets to us here," Steel said. "I assume we'll do well, you would think we would do well because we're in one of the hardest hit areas."
Steel added that he expects the market to play some role in softening the blow as steeply discounted prices lure buyers.

"This has been a perfect storm for bad news on housing prices," Steel said. "Now is the time for people on the sidelines to step in and get affordable homes."

Steel estimated that median prices in Rialto had plummeted about 40 percent since the 2006 peak. Similarly steep drops have occurred in nearby city Fontana, where a glut of newer homes have exacerbated the downturn.

"The boomtowns have really paid the price," Steel said.

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From Don Gee, Deputy Director, Economic Development Agency, San Bernardino:

"This is a good beginning, but it's a large problem," Gee said.

Gee said the sheer scale of foreclosures and homeowners on the brink means any potential federal dollars would likely amount to a "drop in the bucket."

"But we need all the help we can get," Gee said.

On the local level, the city could use funding for outreach, education and even direct help for homeowners with loans they are having trouble keeping up with.
As for buying up vacant properties to prevent, Gee said that may be a tactic, but the overwheliming costs limit its effectiveness.

"You're talking about big money to do that," Gee said.

San Bernardino has about 63,000 housing units, 40,000 of which are single family homes.

Of those, 1,500 to 3,000 on a given day are in foreclosure, Gee estimated, a number likely to dwarf any funding opportunities to directly buy.

"Even with $10 million, you're probably talking about 50 houses," Gee said.

But Gee added that even a few purchases in a few neighborhoods could have a psychological impact much greater than the dollars.

"It shows a concerted effort to help, to stabilize," Gee said.

Gee said the crucial question is how federal aid would fit with measures at the state level to provide an array of resources and tools.

"We're cautiously optimistic," Gee said. "The city can benefit, and combined with state and local resources, this can make a difference. But we just don't know yet how this will all be dispersed and implemented."
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From Rancho Cucamonga's Linda Daniels:

In Rancho Cucamonga, the housing crisis has resulted in fewer
foreclosures and less neighborhood decay than in many surrounding
cities, said city Redevelopment Director Linda Daniels.

With less pressure to slow the foreclosure rate and fewer residents
teetering on the brink, Daniels is more hopeful about the new loan
regulations and safeguards than prospects for direct financial aid.

Daniels said key provisions in the federal bill are those which
tighten lending standards, which Daniels said could put in a system
that limits the depth of future crises.