Contact: Nathan Britton, Boxer,
Scott Gerber or Phil LaVelle, Feinstein,
SENATORS BOXER AND FEINSTEIN
EXPRESS DISAPPOINTMENT IN CALIFORNIA’S SHARE OF HUD FORECLOSURE GRANTS,
URGE MORE FEDERAL AID
as foreclosures in state soar past half-million
Washington, DC – U.S. Senators Barbara Boxer and Dianne Feinstein
(both D-CA) today expressed deep disappointment with the Department of Housing
and Urban Development’s allocation of foreclosure grants to California.
Under the agency’s
allocation announced today, California will
receive less federal assistance than Florida, despite having 274,013 more
foreclosure filings so far this year, according to RealtyTrac.
California will receive $529 million, approximately
13 percent of the total funds, despite accounting for more than 25 percent of
all foreclosures nationwide.
“This makes no
sense, and is totally unacceptable,” Senators Boxer and Feinstein wrote in a
letter to HUD Secretary Steve Preston.
So far this year,
561,223 foreclosures have been filed in California, and the state is on pace to see
more than 841,000 foreclosure filings this year.
Eight of the 10
metropolitan areas with the highest foreclosure rates in the nation are in
and entire neighborhoods are being decimated in the hardest hit areas of the
state. This includes Stockton, which has been
referred to as America’s foreclosure capital, where
one in 25 homes is in foreclosure.
Following is the
text of their letter:
The Honorable Steve Preston
U.S. Department of Housing and Urban
451 7th Street,
Washington, D.C. 20410
Dear Secretary Preston:
We write to express our deep disappointment
with the funding allocations announced today for the $3.9 billion in Community
Development Block Grants (CDBG) under the Housing and Economic Recovery Act of
2008 to states and localities to redevelop foreclosed and abandoned properties,
and to combat blight in neighborhoods.
Frankly, it is beyond us how California – which has nearly twice the amount of
foreclosure filings than Florida (561,223 compared to 287,210) – could
receive less assistance. This makes no sense, and is totally unacceptable.
California ranks at or near the top of all categories
used in determining the CDBG allocations under the Act: number and percentage of
foreclosed homes in each state or locality, and number and percentage of
subprime mortgages and mortgage default and
California is the most populous state in the nation,
and it is bearing the brunt of the foreclosure crisis. Foreclosures are
accelerating at an alarming rate, and our state accounts for more than 25
percent of all foreclosures in the Nation. The foreclosure rate in
roughly three times the national average, with 1 foreclosure filing for every
130 households in the state last month. There have now been over 561,223
foreclosures filed in California in 2008. At this rate, more than
840,000 foreclosures will be filed in our state this year.
Entire neighborhoods in several of our
cities, such as Stockton, are being decimated, and this crisis
poses a serious threat to the state’s economy. More federal help is urgently
needed, and we request that a detailed explanation of how the funding
allocations were determined be provided to us as soon as