WASHINGTON, DC – January 27, 2010 – (RealEstateRama) — Congressman Dennis Cardoza said today he had lost confidence in the top housing official in the Obama Administration, U.S. Housing and Urban Development Secretary Shaun Donovan.
The three biggest cities in Congressman Cardoza’s district – Merced, Stockton, and Modesto – have the 3rd, 5th, and 6th highest foreclosure rates in the country, respectively. These cities also rank in the top 6 cities nationwide for unemployment rates.
“After personally coming to my community and pledging support to me and my constituents, HUD developed criteria to provide assistance that overlooked the region that needed the most help. This is absolutely unacceptable and reflects complete incompetence,” said Congressman Cardoza in a letter to Secretary Donovan.
Since Secretary Donovan was appointed, Congressman Cardoza has requested assistance on the foreclosure crisis through a host of letters, meetings and legislation. In January 2009, Cardoza introduced the HOME Act, which aims to help stabilize the foreclosure crisis by providing qualified homeowners an opportunity to refinance their mortgages with 30-year fixed terms at 4-percent interest rates. In July Congressman Cardoza toured the City of Merced with Secretary Donovan to show him firsthand the devastation of the foreclosure crisis in the San Joaquin Valley.
No action has been taken by HUD that has helped Cardoza’s district. Further, the community has twice been overlooked for funding that has helped other communities.
In 2008, the Neighborhood Stabilization Program was established to help stabilize communities that have suffered from high foreclosure rates. It provides entitlement grants to state and local jurisdictions to purchase, rehabilitate and resell homes in areas impacted by the foreclosure crisis.
In the first round of NSP funding, despite having the highest foreclosure rates in the nation, Merced County and the City of Merced initially received no funding. Congressman Cardoza was highly critical of the Bush Administration for mishandling the formula funding at that time. In the second round of funding announced this month under the Obama Administration, the City of Modesto received $25 million while the City of Merced, Merced County, Stanislaus County, San Joaquin County and Stockton were completely overlooked in their grant requests. At the same time, Southern California received $208 million and the Bay Area received $36 million.
“It is abundantly clear that our community has been hardest hit by the foreclosure crisis and is fighting for its survival. I understand that our entire nation is hurting right now. But the fact is the people I was elected to represent are suffering far worse and cannot wait any longer for action,” said Cardoza
Contact:
Mike Jensen
(202) 225-6131
