THE FORECLOSURE CRISISBAY AREA CASE STUDY
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Research Focus Focus: U.S. Department of Housing and
Urban Development (HUD) Neighborhood Stabilization Program (NSP)
Research question: Is NSP funding the cities most in need? Analysis of foreclosure rates Effects on low income and minority populations
Case study: San Francisco-Bay Area Data sources: 2000 U.S. Census, 2005-2009
American Communities Survey, 2010 RealtyTrac, and 2011 HUD data
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Case Study: Bay Area
One of the areas hardest hit by the foreclosure crisis
Nine Bay Area counties total
Four counties received NSP funds: Alameda, Contra Costa, Santa Clara, and Solano
Five counties were not funded: Marin, Napa, San Francisco, San Mateo, and Sonoma
Source: 2010 U.S. Census Data
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Bad News Nationwide 2.9 million U.S. home foreclosures in
2010 Nationwide 2% rise in foreclosures 72% increase in foreclosures in large
U.S. cities Predictions of a 20% increase in
foreclosures for 2011
Sources: “Foreclosures decline in California in 2010,” Alexander Lazo, The Los Angeles Times, January 13, 2011, “Foreclosure filings could swell 20% this year,” Dan Levy
and Prashant Gopal, The Los Angeles Times, January 14, 2011 and “Foreclosures rose in 72% of U.S. cities in 2010,” Dan Levy, The Los Angeles Times, January 28, 2011
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Better News for CA? Over 500,000 California homes were in
foreclosure in 2010 14% drop in foreclosures in California 19 out of 20 cities with the highest
foreclosure rate were in California, Florida, Nevada and Arizona
Source: Alexander Lazo, “Foreclosures decline in California in 2010,” The Los Angeles Times, January 13, 2011 and “Foreclosures rose in 72% of U.S. cities in 2010,” Dan Levy,
The Los Angeles Times, January 28, 2011
6Note: State of California funding excluded.
Source: 2010 U.S. Census and 2011 U.S Dept. of Housing and Urban Development Data
NPS invested $7 billion of federal funds to mitigate “the impact of foreclosures through the purchase and rehabilitation of foreclosed, vacant properties in order to create more affordable housing and renew neighborhoods devastated by the economic crisis.”
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State of CASolano
Contra CostaAlameda
Santa ClaraMontereyImperialMadera
San DiegoFresno
KernOrange
San JoaquinStanislaus
SacramentoSan Bernardino
RiversideLos Angeles
$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000
$152,848,525
$4,402,454
$16,438,850
$22,447,682
$36,426,987
$1,284,794
$1,708,780
$5,561,076
$17,416,594
$20,746,400
$28,717,185
$31,703,593
$32,244,291
$45,805,305 $46,165,159
$86,048,791
$107,615,501
$286,452,907
Neighborhood Stabilization Program (NSP) Funding
Total NSP FundingCo
untie
s
Bay Area Counties
Other CA Counties
Source: 2011 U.S. Dept. of Housing and Urban Development
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NSP Summary Created by the Housing and Economic
Revitalization Act of 2009 (HERA) Three rounds of NSP funding; two rounds of
funds distributed by a formula and one round was a competitive application process
States, counties, cities, and nonprofits use NSP funds to purchase and/or rehabilitate foreclosed, blighted, or vacant properties
Households assisted must be 120% of area median income (AMI) and 25% of the grant must serve households below 50% AMI
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Bay Area Demographics 2005-2009 American Community Survey
Data: Total Population Minority Population Families Below Poverty Level Median Household Income Median House Value Median Gross Rent
Foreclosures from June 2009-2010 RealtyTrac Data
10 Source: 2005-2009 American Community Survey and 2011 U.S. Dept. of Housing and Urban Development Data
California Bay Area0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
29,357,763
6,950,764
14,050,485 (39%)
2,982,924 (43%)
Population and Mi-noritiesTotal PopulationMinority Population
11 Source: 2005-2009 American Community Survey Data and 2011 U.S. Dept. of Housing and Urban Development Data
8,333,69
0
1,618,138 (10%)
Poverty in California
Total FamiliesFamilies Below Poverty Level
819,788
102,517 (6%)
Poverty in Bay Area
Total FamiliesFamilies Below Poverty Level
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Bay Area Housing Data
The Bay Area is expensive: Bay Area residents earn
25% more than other Californians
Home values in the Bay Area are nearly 30% higher than other places in California
California Bay Area$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$60,392 $75,627
$479,200
$617,441
Income and House ValuesMedian Income Median House Value
Source: 2005-2009 American Community Survey Data
13 Source: 2005-2009 American Community Survey Data and 2011 U.S. Dept. of Housing and Urban Development Data
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Bay Area Foreclosures
21,000 estimated foreclosures in the Bay Area in 2010
Over 173,000 foreclosures in other CA countiesMarin
San Francisco
Napa
San Mateo
Sonoma
Santa Clara
Solano
Alameda
Contra Costa
0 1,000 2,000 3,000 4,000 5,000 6,000
169
301
417
737
1,452
3,280
3,735
5,405
5,558
Bay Area Foreclosures
Properties Foreclosed
Coun
ties
Source: 2011 U.S. Dept. of Housing and Urban Development Data
15 Source: 2005-2009 American Community Survey, June 2009-2010 RealtyTrac, and 2011 U.S. Dept. of Housing and Urban Development Data
16 Source: 2005-2009 American Community Survey, June 2009-2010 RealtyTrac, and 2011 U.S. Dept. of Housing and Urban Development Data
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Take Aways The Bay Area is an expensive area with
high housing costs NSP funded counties in the Bay Area
with high foreclosure rates Funding is in dense, diverse areas Funding is not in affluent or poverty
areas Foreclosures disproportionately affected
minorities
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Next Steps Research income data for 120% of AMI
and 50% AMI which coincides with NSP requirements
Review data on delinquent mortgages, house price change, and unemployment
Further analysis of each county in the Bay Area
Breakdown racial data by specific groups Compare Bay Area and California data to
U.S. data
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Summary of GIS Skills Geographic Information System (GIS)
Skills Utilized:1. Inset Map2. Point Graduated Symbol3. Aggregating Attribute Data4. Attribute Sub-sets Selections5. Boundary Sub-sets Selections6. Geoprocessing Layers
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Detailed List of GIS SkillsMap GIS Skills Notes
San Francisco-Bay Area Counties Inset Map California and Bay Area counties
Boundary Sub-sets Selection Bay Area counties selected as layer
Neighborhood Stabilization Program (NSP) Funding Aggregating Attribute Fields NSP funding combines county, city and nonprofit funding for each county. State of California funding excluded from analysis.
Point Graduated Symbol Proportional dots for NSP funding amount
Boundary Sub-sets Selection Bay Area counties selected as layer
Minorities and Total Population in Bay Area Counties Aggregating Attribute Fields Racial minorities combines race categories: Black or African American Alone, American Indian and Alaska Native Alone, Asian Alone, Native Hawaiian and Other Pacific Islander Alone, Some Other Race Alone, and Two or More races.
Geoprocessing Layers Dot density layer for Racial Minorities and graduated color layer for Total Population
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
Poverty and Median Income in Bay Area Counties Geoprocessing Layers Dot density for Families Below Poverty Level layer and graduated color layer for Median Household Income
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
Median House Value and Rent in Bay Area Counties Geoprocessing Layers Graduated color layer for Median House Value and Median Gross Rent
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
Foreclosures and Population in Bay Area Counties Geoprocessing Layers Dot density layer for Foreclosures and graduated color layer for Total Population
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
Foreclosures and Minorities in Bay Area Counties Aggregating Attribute Fields Racial minorities combined race categories: Black or African American Alone, American Indian and Alaska Native Alone, Asian Alone, Native Hawaiian and Other Pacific Islander Alone, Some Other Race Alone, and Two or More races.
Geoprocessing Layers Dot density layer for Foreclosures and graduated color layer for Minorities
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
Foreclosures and Median Income in Bay Area Counties Geoprocessing Layers Dot density layer for Foreclosures and graduated color layer for Median Income
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
Foreclosures and Poverty in Bay Area Counties Geoprocessing Layers Dot density layer for Foreclosures and graduated color layer for Families Below Poverty Level
Boundary Sub-sets Selection Bay Area counties
Attribute Sub-sets Selection NSP funding by counties
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Photo Credits
Slide #1 – The Los Angeles Times, December 18, 2007, Location: Palmdale, CA
Slide #1 - David Butow, The Los Angeles Times, January 6, 2011, Location: Stockton, CA