McNerney Calls on the U.S. Department of Housing and Urban Develoment to Keep Sacramento Office Open
WASHINGTON, D.C. – April 25, 2013 – (RealEstateRama) — Congressman Jerry McNerney (D-Stockton), joined by Congresswoman Doris Matsui, Congressman John Garamendi, and Congressman Ami Bera, called on the U.S. Department of Housing and Urban Development (HUD) to keep its Sacramento office open in response to HUD’s announcement of its plans to close that branch. The Sacramento office currently serves the epicenter of the housing crisis. The region continues to have one of the highest rates of foreclosures and underwater homeowners in the Nation.
“The answer to a problem like the foreclosure crisis in the Central Valley is not to walk away from it. To do so would be to refuse to throw a drowning man a life jacket. We’ve been on the frontlines of the foreclosure crisis and calling on the administration to provide the help we need to keep people in their homes. Closing the Sacramento office will deal a huge blow on some of the most affected communities in our country,” said Congressman McNerney.
Today, HUD announced that it intends to close the Sacramento office, citing budgetary and cost-cutting reasons. HUD is closing 16 offices nationwide and three in California alone: Sacramento, Fresno and San Diego. Fifteen jobs will be lost at the Sacramento office because of the closing.
Despite some positive signs nationwide in our housing market, Stockton and all of the San Joaquin Valley continue to be at the forefront of the housing crisis. Since the housing crisis began in 2008, Stockton has continually been one of the top five cities in foreclosures nationally – and often ranked number one. During January of this year, one in every 277 housing units was subject to a default notice. Today, more than 50 percent of the city’s residents owe more than their homes are worth, and property values have plummeted by nearly the same percentage over the last few years. In 2007, the median home value in Stockton was $364,700; by 2010, that number was cut in half. This was the second largest decline among all major cities.
Additionally, in Stanislaus and San Joaquin counties, at least 60 percent of mortgages are underwater. News sources indicate that in San Joaquin County, 62.4 percent of borrowers owe more than their homes are worth. In San Joaquin County, 49.6 percent — 62,937 homes — have negative equity. An additional 5.3 percent — 6,694 homes — are near negative. Across the state of California, the rate for underwater homeowners is ten percent higher than the national average – 33 percent to the national rate of 23 percent.
“This is a clear example of the administration’s lack of attention to the continued crisis in California’s housing market. To date, Secretary Donovan has not even visited Stockton or San Joaquin County to witness the very real effects and heartbreak caused by foreclosures or work with community leaders to try and find solutions. To close a vital hub that serves a community in such need without any firsthand knowledge is unacceptable,” said McNerney. “California has been disproportionately affected by the housing crisis. Closing three offices in a state that has been one of the hardest-hit by this ongoing issue will have disastrous consequences.”
“Strengthening our housing market is a critical component in bettering our community and spurring economic growth. We need healthy, robust neighborhoods that all of our families are invested in. We have a fighting spirit here, and I know that if we provide these hard-working families with the support they need, we can get our local economy back on track,” said Congressman McNerney. “I thank my colleagues from California for their continued partnership on this issue that continues to threaten our region, and all of California.”
The letter can be seen here.
