The housing meltdown is impacting the entire economy but some states have been affected more than others. California’s economy has been devastated – one out of every 88 households in CA is facing foreclosure giving it the second highest foreclosure rate in the country (Florida being number 1). According to the Real Estate Section of MSN.com there were over $2.2 million foreclosures filed in 2007. 481,392 of these (approximately 22%) were reported in CA, triple the amount in 2006. According to a report by Barbara Boxer (link provided below), it is estimated that it will cost Californians $67 billion in lost property values as a result of these foreclosures.
This trend cannot be allowed to continue for obvious moral reasons, but we must also be concerned about the related societal impacts such as higher crime rates and health care problems that accompany rising homelessness. The National League of Cities reported that nearly half of cities surveyed saw increases in the need for food shelters and other public services. Areas of Riverside, CA have entire blocks of boarded up homes that have become breeding grounds for mosquitoes which can transmit the deadly West Nile Virus, according to county officials.
With the largest economy in the nation, it will be hard for the country as a whole to get through this crisis without California’s economy turning around. Given the strains that rising homelessness is putting on CA’s state budget, it is hard to see how this can be accomplished without stemming the rate of foreclosures. This is why California needs The MAP Fund!!!
Go here to see the report issued by Senator Boxer:
Go here to see the report issued by the National Coalition for the Homeless: http://www.nationalhomeless.org/housing/foreclosure_report.pdf
The economic figures are grim to say the least, but let’s consider some of the social consequences that are occurring. As a result of the foreclosures the rate of homelessness is rapidly rising. According to a report by the National Coalition for the Homeless (link provided below), nearly 61% of local and state homeless coalitions say they have experienced significant increases in homelessness since the foreclosure crisis began in 2007. In many locations the homeless shelters are full beyond capacity. Cities such as Fresno & San Diego, CA (this is also occurring in other states as well) are reporting a phenomenon of “tent cities” springing up as a result. The city of Santa Barbara, CA has gone so far as to open up a large parking lot for people forced to sleep in their cars.
The MAP Fund 