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U.S Department of Housing and Urban Development
U.S. Department of the Treasury

Spotlight on the Housing Market

in Riverside-San BernardinoOntario, California

Spotlight on the Riverside-San Bernardino-Ontario, California Metropolitan S

The Obama Administration's Efforts to Stabilize The Housing Market and Help American Homeowner

The Riverside–San Bernardino‐Ontario Metropolitan StaEsEcal Area (Riverside MSA), which includes Riverside and San Bernardi
hit areas in the state of California and the naEon following the housing market downturn. The mortgage crisis in the Riverside M
from other regions, both in the sheer magnitude of the problem and in the severity of home value declines.  Declining property 
preceded by rapidly rising home prices fueled in part by unsustainable adjustable rate mortgages that were widely available at t
AdministraEon’s broad approach to stabilizing the housing market has been very acEve.  This bimonthly addendum to the Admi
trends and condiEons in the local economy and the impact of the AdministraEon’s efforts to stabilize the housing market and he
  

Population Growth, Employment, and Housing Market:

Housing Crisis Slowed                       
Ri

The Riverside MSA has seen rapid populaEon growth since 2000, increasing by 30 percent – a total of 
U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban The Housing| Marketof Policy Development and Research | July 2011
970,100 ‐‐ to more than 4.2 million as of April 2010. More than 70 percent of the MSA’s growth during the 
first half of the 2000’s was due to new residents moving into the area. Strong employment growth led to 
the populaEon increasing by an average of 109,500, or 3.4 percent a year from 2000 to 2007. Since 2007, 

Date

Riverside M

                  
The Riverside-San Bernardino-Ontario Metropolitan Statistical Area (Riverside MSA), which includes Riverside and San Bernardino Counties in 4/1/00
as the housing crisis began and the local economy weakened, populaEon growth slowed to an average of 
7/1/07
                  
63,900, or 1.6 percent, annually.   
California, has been one of the hardest hit areas in the state of California and the nation following the housing market downturn. The mortgage crisis
4/1/10
                  
 
Source: Census Bureau
in Riverside and in many other parts of California is unique – both in the sheer magnitude of the problem and in the severity of home value declines. (2000 Decennial, 20
The current fragility in Riverside’s housing market - with much lower property values and many severely underwater mortgages - is the result of several
prior years of rapidly rising home prices supported by widely available, but unsustainable, adjustable rate mortgages. However, the Administration’s
AZer strong growth in the mid‐2000s, employment began to drop in the fourth quarter of 2007 and conEnued a steep decline through the third qu
broad approach to stabilizing the housing market has been the source of real help to homeowners in Riverside and surrounding cities. This bimonthly
employment situaEon in Riverside has remained stagnant.  As of the first quarter 2011, employment totaled 1.1 million – approximately the same a
addendum to theBernardino-Ontario, California Metropolitan Statistical Area conditions in the local economy and the impact of the
Administration’s housing scorecard provides a percent during the same period.  Local employment remains 164,800 jobs below pre‐recession levels with construcEon jobs accounEng for 46 perce
summary of trends and
ght on the Riverside-San
residenEal and commercial construcEon. The average unemployment rate, at 14.2 percent for the 12 months ending May 2011, is higher than the n
Administration’s efforts to stabilize the housing market and help local homeowners.
naEonal average unemployment rate during the same period was 9.3 percent, down slightly from 9.8 percent a year ago.  

The Obama Administration's Efforts to Stabilize The Housing Market and Help American Homeowners - July 2011

Population Growth,
Employment, and Housing
Market:

Riverside–San Bernardino‐Ontario Metropolitan StaEsEcal Area (Riverside MSA), which includes Riverside and San Bernardino CounEes in California, has been one of the hardest 
reas in the state of California and the naEon following the housing market downturn. The mortgage crisis in the Riverside MSA, as in much of the state of California is different 
 other regions, both in the sheer magnitude of the problem and in the severity of home value declines.  Declining property values and severely underwater mortgages were 
Job Market Conditions are Stabilizing
eded by rapidly rising home prices fueled in part by unsustainable adjustable rate mortgages that were widely available at the Eme.   It is also an area in which the 
Quarterly Nonfarm Employment 
inistraEon’s broad approach to stabilizing the housing market has been very acEve.  This bimonthly addendum to the AdministraEon’s housing scorecard provides a summary of 
ds and condiEons in the local economy and the impact of the AdministraEon’s efforts to stabilize the housing market and help local homeowners.  
1,300 

14 
145 

4/1/2000

120 

 

S

 

14 

Area employment declined steeply through the third
quarter of 2009 and has since remained stagnant.
140 
Nearly 1.1 million people were employed in the MSA
135 
as of March 2011 – approximately the same as a year
ago – while the nation saw a 1 percent job growth rate
130 
during the same period. Local payrolls remain 164,800
125 
jobs below pre-recession levels with construction jobs
accounting for nearly half of local job losses. The
120 
average unemployment rate was 14.2 percent for the 12
months ending May 2011, the same as a year prior. The
nationalYear and Quarter 
average unemployment rate during the same
Riverside  MSA 
NaEon (right  axis) 
period was 9.3 percent, down slightly from 9.8 percent
ed Data  
 Labor  StaEsEcs  a year ago.
Millions 

145 

12 
10 
8 
6 
4 
2 
0 

Riverside MSA (Not Seasonally Adjusted) 
 

Source: Bureau of Labor StaEsEcs 

Spotlight on Riverside MSA | Page 1

0 

NaEon (right  axis) 

Monthly Unemployment Rate (Percent) 

16 

Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)
150 

2 

Year and Quarter 

Unemployment Rate Remains High

1.6%

6 
4 

125 

From Prior Date
3.4%

8 

130 

3,254,800

7/1/2007
4,048,900
Job Market Conditions are Stabilizing
Quarterly Nonfarm Employment  4,224,900
4/1/2010

10 

Millions 

135 

he mid‐2000s, employment began to drop in the fourth quarter of 2007 and conEnued a steep decline through the third quarter of 2009.  Since the third quarter of 2009, the 
Riverside  MSA 
Housing Crisis Slowed
 Riverside has remained stagnant.  As of the first quarter 2011, employment totaled 1.1 million – approximately the same as a year ago, while the naEon had a job growth rate of 1 
Seasonally Adjusted Data  
 period.  Local employment remains 164,800 jobs below pre‐recession levels with construcEon jobs accounEng for 46 percent of local job losses due to the slowdown in both 
Population Growth in Riverside
Source: Bureau of Labor  StaEsEcs 
cial construcEon. The average unemployment rate, at 14.2 percent for the 12 months ending May 2011, is higher than the naEon and the same as a year ago. In comparison, the 
 
Riverside MSA
Annual Growth Rate
loyment rate during the same period was 9.3 percent, down slightly from 9.8 percent a year ago.  

Population

12 

140 

Thousands 

1,250 
The Riverside MSA has seen rapid population growth
since 2000, increasing by 30 percent – a total of
1,200 
970,100 – to more than 4.2 million as of April 2010.
Employment, and Housing Market:
Housing Crisis Slowed                                                        Population Growth in 
een rapid populaEon growth since 2000, increasing by 30 percent – a total of  the first half of
More than 70 percent of growth during
Riverside
1,150 
4.2 million as of April 2010. More than 70 percent of the MSA’s growth during the 
Annual Growth Rate From 
the 2000’s was due to new residents moving into the
as due to new residents moving into the area. Strong employment growth led to 
Date
Riverside MSA Population
Prior Date
area. Strong employment gains drove a 3.4 percent
g by an average of 109,500, or 3.4 percent a year from 2000 to 2007. Since 2007, 
1,100 
‐
4/1/00
                            3,254,800
an and the local economy weakened, populaEon growth slowed to an average of 
population increase between 2000 and 2007. Since
7/1/07
                            4,048,900
3.4%
nnually.   
4/1/10
                            4,224,900
1.6%
1,050 
then, as the housing crisis began and the local economy
Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)
weakened, population growth slowed to an annual
average of 63,900, or 1.6 percent.

Date

16 
150 

NaEon (Seasonally Adjusted) 

7.5 

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

7.0 
6.5 
6.0 
5.5 

ends in Mortgage Delinquencies and Foreclosures:   

5.0 

rside MSA homeowners have struggled with some of the highest levels of mortgage delinquency and 
closure in the naSon. As of May 2011, Riverside and San Bernardino CounSes had, respecSvely, the 7th and 9th 
est number of mortgages in the naSon that were 90+ days delinquent or in the process of foreclosure, 
rding to LPS Applied AnalyScs:  these seriously delinquent loans represent about 12 percent of acSve 
U.S. Department of Housing and Urban Development
tgages in the two counSes, compared to less than 8 percent in the naSon.  Due in part to the efforts of 
erous state and local organizaSons and municipaliSes in partnership with the federal government, the number 
riously delinquent mortgages in the Riverside MSA declined during the past year from 107,800 in May 2010 
Source: Reis, Inc. 
resenSng over 16 percent of then acSve mortgages) to 78,000 in May 2011, according to CoreLogic. However, 
ly half of all mortgages in the Riverside area (47%) are in negaSve equity ‐‐ more than twice the naSonal rate 
The home sales market remains soft in the Riverside
3% ‐‐ according to CoreLogic, represenSng addiSonal loans potenSally at risk.  

Office and Help American Homeowners
The Obama Administration’s Efforts to Stabilize The Housing| Marketof Policy Development and Research | July 2011
Year and Quarter 

Riverside MSA 

NaSon 

Existing and New Single-Family Home Sales:
MSA. Existing home sales rose in 2008 and 2009,
Riverside Compared to the Nation
though the boost was due in part to sales of distressed
Annual Home Sales (thousands)  
homes – foreclosures and short sales – which currently
represent 57 percent of all existing home sales in the
7,000 
120 
Foreclosure Completion Rates in Riverside Outpace The Nation
MSAFirst Quarter 2011 with 32 percent nationally. Local home
compared
Since April 1, 2009
6,000 
100 
sales fell in 2010 and continue to decline in 2011.
Area
Foreclosure 
Foreclosure 
During the first four months of 2011, existing home sales
Foreclosure Rate
Foreclosure Rate
5,000 
Completions
Completions
80 
declined by 18 percent compared with the first four
4,000 
erside MSA 
                      7,628  2010, while                     79,609  sales declined 45
0.5%
5.4%
months of
new home
60 
Nation 
                  215,046 
0.2%
               2,068,092 
1.6%
percent, according to CoreLogic. The high proportion
3,000 
Foreclosure Rates as Percent of All Housing Units;
of distressed sales has
40 
 Data through May 2011 for Foreclosures since 2009 kept Riverside home prices
2,000 
 Realty Trac and Census Bureau
depressed. The CoreLogic repeat-sales house price index
20 
1,000 
shows that home prices in Riverside rose faster and fell
farther than in the rest of the nation. Home prices in
0 
0 
Riverside dropped 54 percent from their peak in August
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
NaSon: ExisSng Sales (right axis) 
NaSon: New Sales (right axis) 
Riverside MSA: ExisSng  Sales 
Riverside MSA: New  Sales 
2006 to their low in May 2009 -- a much steeper descent
than the national average peak-to-low decline of 31
Sources: CoreLogic, HUD/Census  Bureau, and NaSonal AssociaSon of Realtors 
percent. While the overall market remains fragile, local
home prices have shown signs of stabilizing since May
Spotlight on the Riverside-San Bernardino-Ontario, California Metropolitan Statistical Area
Share of Distressed Mortgages Remains High, But Is Declining
2009 and are currently higher than their 2009 lows. The
Mortgages 90+ Days Delinquent (Percent) 
local rental market is improving with on the Riverside-San Bernardino-Ontario, California Metropolitan Statistical Area
home sales market remains soP in the Riverside MSA. ExisSng home sales rose in 2008 and 2009, though 
Spotlight apartment vacancy
boost was due in part to sales of distressed homes ‐‐ foreclosures and short sales – which CoreLogic 
20 
Riverside Price Declines More Severe Than in Nation, Market Remains Fragile
rates at 6 percent in the first quarter of 2011, down
ently puts at 57 percent of all exisSng homes sales in the MSA compared with 32 percent naSonally. 
Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 
 home sales market remains soP in the Riverside MSA. ExisSng home sales rose in 2008 and 2009, though 
18 
from 8 percent a year earlier and slightly below the
ording to CoreLogic, home sales fell in 2010 and conSnue to decline in 2011.  In the first four months of 
boost was due in part to sales of distressed homes ‐‐ foreclosures and short sales – which CoreLogic 
Riverside Price Declines More Severe Than in Nation, Market Remains Fragile
1, exisSng home sales declined by 18 percent compared with the first four months of 2010, while new home 
national average of 6.2 percent according to Reis Inc.
16 
ently puts at 57 percent of all exisSng homes sales in the MSA compared with 32 percent naSonally. 
Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 
s declined 45 percent. The high proporSon of distressed sales has kept Riverside home prices depressed. The 
ording to CoreLogic, home sales fell in 2010 and conSnue to decline in 2011.  In the first four months of 
The average rent for a Riverside apartment, at $1,040, is
14 350 
Logic repeat‐sales house price index shows that Riverside home prices rose and then fell by far more than 
1, exisSng home sales declined by 18 percent compared with the first four months of 2010, while new home 
e naSon.  Home prices in Riverside dropped 54 percent from their peak in August 2006 to their trough in 
just 1 percent higher than a year ago. The average rent
12 
s declined 45 percent. The high proporSon of distressed sales has kept Riverside home prices depressed. The 
 2009, much greater than the peak‐to‐trough decline in naSonal home prices of 31 percent.  Local home 
350 
nationwide increased by 1.9 percent to $1,047 during
eLogic repeat‐sales house price index shows that Riverside home prices rose and then fell by far more than 
300 
es have shown signs of stabilizing since May 2009 and are currently higher than their lowest level of 2009, 
10 
he naSon.  Home prices in Riverside dropped 54 percent from their peak in August 2006 to their trough in 
the same period.
ough the overall sales market remains fragile. The local rental market has improved with apartment vacancy 

y 2009, much greater than the peak‐to‐trough decline in naSonal home prices of 31 percent.  Local home 
s reported by Reis Inc. at 6 percent in the first quarter of 2011, down from 8 percent a year earlier and 
es have shown signs of stabilizing since May 2009 and are currently higher than their lowest level of 2009, 
tly less than the naSonal average.  The average rent for a Riverside apartment, at $1,040, was up 1 percent 
ough the overall sales market remains fragile. The local rental market has improved with apartment vacancy 
m a year ago. NaSonally, the vacancy rate over this period improved to 6.2 percent from 8.0 percent, while 
s reported by Reis Inc. at 6 percent in the first quarter of 2011, down from 8 percent a year earlier and 
average rent increased 1.9 percent to $1,047.  
htly less than the naSonal average.  The average rent for a Riverside apartment, at $1,040, was up 1 percent 
m a year ago. NaSonally, the vacancy rate over this period improved to 6.2 percent from 8.0 percent, while 
average rent increased 1.9 percent to $1,047.  

8 
300 
250 
6 

Trends in Mortgage
Delinquencies and Foreclosures:

Homeowners in Riverside and San Bernardino have
struggled with some of the highest levels of mortgage
delinquency and foreclosure in the nation. As of May
2011, Riverside and San Bernardino Counties were
ranked 7th and 10th in the nation for the most mortgages
that were 90 or more days delinquent or in the process
of foreclosure, according to LPS Applied Analytics.
Through the efforts of numerous state and local entities
in partnership with the federal government, the number
of mortgages at risk of foreclosure (90 or more days
delinquent or in the process of foreclosure) in the Riverside
area declined from 103,560 in May 2010 to 74,250 in
May 2011, according to LPS Applied Analytics. Similarly,
CoreLogic data shows that the share of mortgages 90
or more days delinquent dropped from 17 percent to 12
percent over the past year, which was larger than the
national decline from 8 to 7 percent over the same period.
Realty Trac data show that completed foreclosures have
nds in Mortgage DelinquenciesRiverside over the past year, dropping
also declined in and Foreclosures:   
side MSA homeowners have struggled with some of the highest levels of mortgage delinquency and 
from 9,400 in the first quarter of 2010 to 7,600 in the first
losure in the naSon. As of May 2011, Riverside and San Bernardino CounSes had, respecSvely, the 7th and 9th 
ends in Mortgage Delinquencies and Foreclosures:   
st number of mortgages in the naSon that were 90+ days delinquent or in the process of foreclosure, 
quarter of 2011, although lender process reviews continue
rside MSA homeowners have struggled with some of the highest levels of mortgage delinquency and 
rding to LPS Applied AnalyScs:  these seriously delinquent loans represent about 12 percent of acSve 
closure in the naSon. As of May 2011, Riverside and San Bernardino CounSes had, respecSvely, the 7th and 9th 
to affect foreclosure completions locally and nationally.
gages in the two counSes, compared to less than 8 percent in the naSon.  Due in part to the efforts of 
est number of mortgages in the naSon that were 90+ days delinquent or in the process of foreclosure, 
erous state and local organizaSons and municipaliSes in partnership with the federal government, the number 
However, the data continue to paint a mixed picture as
rding to LPS Applied AnalyScs:  these seriously delinquent loans represent about 12 percent of acSve 
riously delinquent mortgages in the Riverside MSA declined during the past year from 107,800 in May 2010 
tgages in the two counSes, compared to less than 8 percent in the naSon.  Due in part to the efforts of 
nearly half of all mortgages in the Riverside area (47%)
esenSng over 16 percent of then acSve mortgages) to 78,000 in May 2011, according to CoreLogic. However, 
erous state and local organizaSons and municipaliSes in partnership with the federal government, the number 
y half of all mortgages in the Riverside area (47%) are in negaSve equity ‐‐ more than twice the naSonal rate 
are in negative equity – more than twice the national rate
eriously delinquent mortgages in the Riverside MSA declined during the past year from 107,800 in May 2010 
% ‐‐ according to CoreLogic, represenSng addiSonal loans potenSally at risk.  
of 23% as reported by CoreLogic -- representing more
resenSng over 16 percent of then acSve mortgages) to 78,000 in May 2011, according to CoreLogic. However, 
ly half of all mortgages in the Riverside area (47%) are in negaSve equity ‐‐ more than twice the naSonal rate 
homeowners and loans potentially at risk.

4  250 
200 
2 
200 
0 150 
150 
100 
Riverside MSA 

Foreclosure Completion Rates in Riverside Outpace The Nation

Riverside MSA 

Source: CoreLogic 

NaSon 

Riverside MSA 

Source: CoreLogic 

NaSon 

Local Rental Vacancy Rates Similar to the Nation
Quarterly Apartment Rental Vacancy Rates (Percent) 

9.0 

Local Rental Vacancy Rates Similar to the Nation
Quarterly Apartment Rental Vacancy Rates (Percent) 

8.5 
9.0 
8.0 
8.5 
7.5 
8.0 
7.0 
7.5 
6.5 
7.0 
6.0 
6.5 
5.5 
6.0 
5.0 
5.5 
5.0 
Year and Quarter 
Riverside MSA 
Year and Quarter 

NaSon 

Riverside MSA 

NaSon 

Source: Reis, Inc. 
Source: Reis, Inc. 

3% ‐‐ according to CoreLogic, represenSng addiSonal loans potenSally at risk.  

Foreclosure Completion Rates in Riverside Outpace The Nation
First Quarter 2011
Since April 1, 2009

NaSon 

Source: CoreLogic 
100 

120 

Existing and New Single-Family Home Sales:
Riverside Compared to the Nation
Annual Home Sales (thousands)  
Existing and New Single-Family Home Sales:
Riverside Compared to the Nation

Spotlight 100  Riverside MSA | Page 2
on
120 

Annual Home Sales (thousands)  

7,000 
6,000 
7,000 

6,000 

100 

Area

Foreclosure 
Completions

Foreclosure Rate

Foreclosure 
Completions

Foreclosure Rate

               2,068,092 

1.6%

U.S Department of Housing and Urban Development
rside MSA 
                      7,628 
0.5%
                     79,609 
5.4%
U.S. Department of the Treasury

Nation 
                  215,046 
0.2%
Foreclosure Rates as Percent of All Housing Units;
Data through May 2011 for Foreclosures since 2009
 Realty Trac and Census Bureau

5,000 

80 

4,000 
60 
3,000 
40 

2,000 

20 

1,000 

0 

0 

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban The Housing| Marketof Policy Development and Research | July 2011
2003 

2004 

2005 

NaSon: ExisSng Sales (right axis) 

2006 

2007 

NaSon: New Sales (right axis) 

2008 

Riverside MSA: ExisSng  Sales 

2009 

2010 

Riverside MSA: New  Sales 

Sources: CoreLogic, HUD/Census  Bureau, and NaSonal AssociaSon of Realtors 

Foreclosure Completion Rates in Riverside Outpace The Nation
First Quarter 2011
Area

Foreclosure
Completions

Foreclosure
Rate

Share of Distressed Mortgages Remains High, But Is Declining

Since April 1, 2009
Foreclosure
Completions

Mortgages 90+ Days Delinquent (Percent) 

Foreclosure
Rate

20 
18 

Riverside
MSA

7,628

0.5%

79,609

5.4%

Nation

215,046

0.2%

2,068,092

1.6%

16 
14 
12 
10 

Note: Foreclosure Rates as Percent of All Housing Units; Data through May
2011 for Foreclosures since 2009
Source: Realty Trac and Census Bureau

8 
6 
4 
2 

The Administration’s Efforts to
Stabilize the Riverside Housing
Market:

0 

Riverside MSA 

NaSon 

Source: CoreLogic 

Spotlight on the Riverside-San Bernardino-Ontario, California Metropolitan Statistical Area

The Administration’s Efforts to Stabilize the Riverside MSA Market:

From the launch of the Administration’s assistance
From April 1, 2009 through the end of May 2011, 74,500 mortgage assistance intervenJons have 
programs through the end of May 2011, approximately
been offered to Riverside area homeowners through the AdministraJon’s assistance programs 
(Home Affordable ModificaJon Program and FHA’s loss miJgaJon and early delinquency  been
132,000 mortgage assistance interventions have
intervenJon programs).  An addiJonal 55,000 to 56,000 proprietary modificaJons are esJmated to 
offered to homeowners in the Riverside metropolitan
have been offered through Hope Now Alliance servicers, bringing the total for the metropolitan area 
to about 130,000 intervenJons offered. While some homeowners may have received help from more 
area. More than 76,000 interventions were offered
than one program, the number of Jmes assistance has been offered is nearly two‐thirds higher than 
through the Home Affordable Modification Program
the number of foreclosures completed during this period (80,000) in the Phoenix MSA.    
  
(HAMP) and the Federal Housing Administration (FHA)
In addiJon to offers of mortgage aid to homeowners, the AdministraJon’s Neighborhood 
loss mitigation and early delinquency intervention
StabilizaJon Program (NSP) and Hardest Hit Fund (HHF) have both contributed toward achieving 
programs. An estimated additional 56,000 proprietary
housing market stability in the Riverside MSA.  
  
modifications have been offered through Hope Now
Sixteen jurisdicJons in the Riverside MSA have received NSP grants. These include the Town of Apple 
Alliance servicers. While some homeowners may have
Valley, the ciJes of Corona, Fontana, Hemet, Hesperia, Moreno Valley, Ontario, Rancho Cucamonga, 
Rialto, Riverside, San Bernardino, Victorville, Perris, Indio, and the counJes of Riverside and San 
received help from more than one program, the number
Bernardino.  
of times assistance has been offered is two-thirds higher
 
  
than the number of foreclosures completed during this
 
period (80,000) in the Riverside MSA.
 
 
 
In addition to offers of mortgage aid to homeowners, the
 
Administration’s Neighborhood Stabilization Program
 
(NSP) and Hardest Hit Fund (HHF) have been helping to
stabilize the Riverside housing market.

Riverside MSA NSP Activity (Housing Units)
NSP1 Total
Clearance and demolition
Riverside MSA NSP Activity (Housing Units)
Homeownership assistance to low‐ and moderate‐income
Rehabilitation/reconstruction of residential structures
NSP1 Total
NSP2 Total
Rehabilitation/reconstruction of residential structures
Clearance and demolition
NSP3 Total
Clearance and demolitionHomeownership assistance to low- and
moderate-income
Construction of new housing
Homeownership assistance to low‐ and moderate‐income
Rehabilitation/reconstruction of
Rehabilitation/reconstruction of residential structures

residential structures

NSP2 Total

Projected
Completed
2160
1141
124
0
Projected Completed
896
258
1140
883 1141
2160
150
0
150
0
124
0
502
0
4
0 258
896
200
0
121
0
1140
177
0 883

150

0

Rehabilitation/reconstruction of
verall, $133,451,386 in NSP1 and $50,117,859 in NSP3 funds have been awarded to these sixteen 
150
0
residential structures
urisdicJons. Under NSP2, the City of Indio, in partnership with Rancho Housing Alliance, is using $8.3 

million to acquire, renovate and sell single family homes in a focused three census tract area.  
NSP3 Total
502
pproximately 1,141 households have already benefited from NSP and acJviJes funded by the 
Clearance and demolition
4
rogram are expected to provide assistance to an addiJonal 1,671 owner and renter households. 
xamples of how the NSP1 and NSP3 funds are being used include: 

Construction of new housing

0
0

200

0

 The City of Riverside aggressively leveraged its $6.5 million NSP1 grant with $5 million in local 
Homeownership assistance to low- and
121
edevelopment agency funds ‐‐ named the Targets of Opportunity (TOO) program ‐‐ and a $20 million  0
moderate-income
rivate line of credit for a total pool of $31.5 million. This will enable the city to purchase, rehabilitate, 
Rehabilitation/reconstruction of
nd sell or rent foreclosed homes to eligible homebuyers/renters. In addiJon, purchase price 
177
0
residential structures
ssistance is made available to income‐qualified households that purchase a rehabilitated home. This 
ombined approach led to the City’s NSP/TOO program to be named as a finalist in the NaJonal 
eague of CiJes Municipal Excellence Awards for 2010. 

 In the City of San Bernardino, the 19th and Sunrise neighborhood included 71 distressed  fourplex 
roperJes in a concentrated three‐block area. The properJes were separately owned, and the 
eighborhood had one of the highest crime rates in the City. The neighborhood became the primary 
SP1 target area, and a non‐profit community housing organizaJon was selected to acquire and rehab 
5 fourplexes, turning them into managed affordable family rental units.  

Mortgage Aid Extended Nearly 132,000 Times To Mitigate Rising Foreclosures
RIverside MSA: CumulaJve Offers of Aid by Source Compared with Foreclosures Since April 1, 2009  (Thousands) 

Mortgage Aid Offers in Riversdide MSA from April 2009 through May 2011: 131,900 
Foreclosure CompleJons Over Same Period:  79,600 

140 
120 

1.636935

100 
80 
60 
40 
20 
0 

FHA Loss MiJgaJon 

Hamp ModificaJons 

EsJmated Hope Now ModificaJons 

Foreclosure CompleJons 

Note:  Data on Hope Now proprietary mortgage modificaJons not available at metropolitan area level. However, Hope Now Alliance reports 278,400 non‐
HAMP modificaJons since April 1, 2009 in the state of CA of which 20 percent are esJmated by HUD to have occurred in the Riverside MSA. 
 

Sources:  Departments of HUD and Treasury, Hope Now Alliance, and Realty Trac. 

 

Sixteen jurisdictions in the Riverside MSA have received NSP grants: the Town of
• Despite some iniJal difficulty uJlizing NSP funds, San Bernardino County has issued a request for proposals for $6 
million of NSP funds open to all incorporated ciJes and to non‐profit housing corporaJons within the County. Three  Valley,
Apple Valley, the cities of Corona, Fontana, Hemet, Hesperia, Moreno
projects were selected for funding, including the Hillcrest Court Apartments in the City of Victorville for 
Ontario, Rancho Cucamonga, Rialto, Riverside, San Bernardino, Victorville, Perris,
approximately $4.7 million, which is projected to offer 66 low income units for rent. The rehabilitaJon is underway 
with anJcipated compleJon in fall 2011.  of Riverside and San Bernardino.
Indio, and the counties
 
• Riverside County has one of the highest foreclosure rates in the state of California. In response to the tremendous 
Overall, $133.5 million in NSP1, $8.3 million in NSP2, and $50.1 million in
need to stabilize neighborhoods that have been most heavily impacted and to advance the County’s prioriJzaJon of 
homeownership, the County’s NSP direct‐to‐buyer program provides purchase price assistance with an opJonal 
NSP3 funds have been awarded to these sixteen jurisdictions. Approximately
rehabilitaJon component to first Jme homebuyers.  Thirty‐eight households have been assisted, and seventeen of 
1,141 households have already benefited from NSP, and activities funded by the
these have uJlized the NSP rehab component to promote long term affordability and sustainability of their homes 
through energy efficient enhancements and curb appeal improvements.   to an additional 1,671 owner and
program are expected to provide assistance
 
renter households. Here are some examples of how these funds have
• The City of Desert Hot Springs within Riverside County has one of the highest combinaJons of unemployment,  been put to
foreclosure, vacancy, loan rates and average home sales price decline.  UJlizing County NSP funds, while leveraging 
use:
City redevelopment funds, the unfinished 60‐unit Hacienda Hills Apartments was acquired, rehabilitated and finally 
completed.  Full occupancy was reached in one month.  Half of the units are reserved for very low‐income 
The City of Riverside aggressively leveraged its $6.5 million NSP1 grant,
households and the remaining are restricted for low‐income households.  
 
bringing an additional $5 million in local redevelopment agency funds
• Due to its physical size (over 7,200 square miles), Riverside County designed its NSP1 program to uJlize a large 
– named the Targets of Opportunity (TOO) program – and a $20 million
number of development partners. To date the County has generated over $16 million in program income, equivalent 
private line of credit to the community. With a total of $31.5 million
to a third of its original NSP1 grant. Program income is returned to the County, and these funds can be reuJlized for  in
addiJonal NSP projects.   funds, the city is now able to purchase, rehabilitate, and sell or rent
available
 
foreclosed homes to eligible homebuyers/renters. The grantee is also
• The City of Moreno Valley's NSP program acquired two apartment complexes in desperate need of rehabilitaJon in  making
a transiJonal neighborhood providing a total of twenty‐seven 2‐bedroom units affordable to very low income  that purchase
homebuyer assistance available to income-qualified households
families and providing cost‐saving ameniJes that will reduce tenants' uJlity expenses. ConstrucJon is underway, 
a rehabilitated home. This combined approach led to the city’s NSP/TOO
with compleJon anJcipated in 2012. 
 
program to be named as a finalist in the National League of Cities Municipal
• The City of Rialto structured its NSP1 program to include two separate consulJng firms: one on the administraJon/
Excellence Awards for 2010.
contracJng/grant management side, and the other on the property acquisiJon/rehabilitaJon/disposiJon side of the 
program. This has resulted in a program that has generated program income equivalent to 58% of the original grant 
amount. Program income is used to acquire and rehabilitate addiJonal properJes. To date, 34 single family homes 
have been acquired, rehabilitated and sold to eligible homebuyers.  
 

•

Spotlight on Riverside MSA | Page 3

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and Urban The Housing| Marketof Policy Development and Research | July 2011

•

In the City of San Bernardino, the 19th and Sunrise
neighborhood had one of the highest crime rates in the city. Within
a three block area, there were 71 distressed fourplex properties
-- each with a different owner. The neighborhood became the
primary target for NSP1 funding. A nonprofit community housing
organization was selected to acquire and rehab 25 of the distressed
properties, turning them into well-managed and affordable family
rental units.

•

The City of Victorville used almost its entire NSP1 grant to
acquire a foreclosed 66-unit apartment complex and planned to
use outside funding for the rehabilitation. When those funds did
not materialize, Victorville applied for a portion of the $6 million
NSP grant made available to San Bernardino County. The City of
Victorville was one of three projects selected for funding, with a
grant of $4.7 million to rehab the Hillcrest Court Apartments. The
rehabilitation project is now underway and should be completed in
fall 2011.

•

Riverside County has one of the highest foreclosure rates in the
state of California. In response to the tremendous need to stabilize
neighborhoods that have been most heavily hit by foreclosure and
to advance the county’s priority of homeownership, the Riverside
County NSP direct-to-buyer program provides first time homebuyers
with purchase price assistance and optional rehabilitation funds.
Thirty-eight households have purchased foreclosed homes through
the program, including seventeen homebuyers who used rehab
funding to make energy efficient enhancements and improve their
home’s curb appeal.

•

The City of Indio, in partnership with Rancho Housing Alliance,
has focused $8.3 million in NSP2 funds to acquire, renovate and
sell single family homes within three census tracts.

•

The City of Desert Hot Springs in Riverside County has been hit
with a combination of high unemployment, foreclosure and vacancy
rates and a steep decline in average home sales price. With county
NSP funds and city redevelopment funds, the grantee acquired and
finished construction of the 60-unit Hacienda Hills Apartments. Half
of the units were reserved for very low-income households and the
remaining were restricted to low-income households. The grantee
achieved full occupancy of the apartments within one month.

•

Because it spans over 7,200 square miles, Riverside County
designed its NSP1 program to attract many development partners.
To date the county has generated more than $16 million in program
income - equivalent to one-third of its original grant. Program
income can be reinvested to fuel additional NSP projects.

•

The City of Moreno Valley acquired two apartment complexes
in desperate need of rehabilitation in a transitional neighborhood.
The NSP program provided a total of 27 2-bedroom units for very
low income families with amenities that will help reduce tenants’
utility expenses. Construction is underway, with completion
anticipated in 2012.

•

The City of Rialto structured its NSP1 program to include two
separate consulting firms: one to manage the administration,
contracting and grant requirements and another to handle property
acquisition, rehabilitation and disposition. This approach helped
the grantee to generate program income equivalent to 58% of the
original grant amount which can be used to acquire and rehabilitate
additional properties. To date, the grantee has acquired 34 single
family homes that were later rehabilitated and sold to eligible
homebuyers.

As part of the state’s housing recovery efforts, the California Housing
Finance Agency (CalHFA) is implementing a comprehensive program
called Keep Your Home California using almost $2 billion in funding
from the U.S. Treasury Department’s Hardest Hit Fund to implement
local solutions to borrower mortgage defaults and address the range of
factors that contribute to a family’s financial problems. The Keep Your
Home California programs help low and moderate income families
experiencing financial hardship to stay in their homes whenever
possible. The CalHFA HHF programs include:

•

•
•

•

Unemployment Mortgage Assistance Program (UMA) – Intended
to assist homeowners who have experienced involuntary job loss,
providing temporary financial assistance in the form of a mortgage
payment subsidy. UMA funds can provide up to six months of
benefits.
Mortgage Reinstatement Assistance Program – Intended to assist
homeowners who have fallen behind on their mortgage payments
due to a temporary change in a household’s circumstance. These
funds can provide benefits of up to $15,000 per household.
Principal Reduction Program – Intended to assist homeowners at
risk of default because of an economic hardship coupled with a
severe decline in the home’s value. The principal reduction program
is often a prelude to loan modification. (Servicers that contribute
through matching funds increase the benefit for homeowners).
Transition Assistance Program (TAP) – Intended to promote
community stabilization by providing homeowners with relocation
assistance when it is determined that they can no longer afford their
home. TAP is used in conjunction with a servicer-approved short sale
or deed-in-lieu of foreclosure program in order to help homeowners
transition into stable and affordable housing.

All major national servicers are participating in at least one of
California’s programs. California homeowners who believe they are
eligible for assistance can call 888-954-KEEP (5337) to work with
a counselor to apply for the program. California has this assistance
available until the end of 2017 to help prevent avoidable foreclosures.

Spotlight on Riverside MSA | Page 4


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