e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | July 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Riverside MSA | Page 1

Spotlight on the Housing Market 

in Riverside-San BernardinoOntario, California

The Riverside-San Bernardino-Ontario Metropolitan Statistical Area (Riverside MSA), which includes Riverside and San Bernardino Counties in 

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 

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. 

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 

broad approach to stabilizing the housing market has been the source of real help to homeowners in Riverside and surrounding cities. This bimonthly 

addendum to the Administration’s housing scorecard provides a summary of trends and conditions in the local economy and the impact of the 

Administration’s efforts to stabilize the housing market and help local homeowners.

Population Growth, 

Employment, and Housing 

Market: 

The Riverside MSA has seen rapid population growth 

since 2000, increasing by 30 percent – a total of 

970,100 – to more than 4.2 million as of April 2010. 

More than 70 percent of growth during the fi rst half of 

the 2000’s was due to new residents moving into the 

area. Strong employment gains drove a 3.4 percent 

population increase between 2000 and 2007. Since 

then, as the housing crisis began and the local economy 

weakened, population growth slowed to an annual 

average of 63,900, or 1.6 percent. 

Area employment declined steeply through the third 

quarter of 2009 and has since remained stagnant. 

Nearly 1.1 million people were employed in the MSA 

as of March 2011 – approximately the same as a year 

ago – while the nation saw a 1 percent job growth rate 

during the same period. Local payrolls remain 164,800 

jobs below pre-recession levels with construction jobs 

accounting for nearly half of local job losses. The 

average unemployment rate was 14.2 percent for the 12 

months ending May 2011, the same as a year prior. The 

national average unemployment rate during the same 

period was 9.3 percent, down slightly from 9.8 percent 

a year ago. 

Housing Crisis Slowed 

Populati on Growth in Riverside

Date

Riverside MSA

Populati on

Annual Growth Rate 

From Prior Date

4/1/2000 3,254,800

7/1/2007 4,048,900 3.4%

4/1/2010 4,224,900 1.6%

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

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

Date Riverside M

4/1/00                   

7/1/07                   

4/1/10                   

Source: Census Bureau (2000 Decennial, 20

Housing Crisis Slowed                       

Ri

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: 

The Riverside MSA has seen rapid populaEon growth since 2000, increasing by 30 percent – a total of 

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, 

as the housing crisis began and the local economy weakened, populaEon growth slowed to an average of 

63,900, or 1.6 percent, annually.   

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

employment situaEon in Riverside has remained stagnant.  As of the first quarter 2011, employment totaled 1.1 million – approximately the same a

percent during the same period.  Local employment remains 164,800 jobs below pre‐recession levels with construcEon jobs accounEng for 46 perc

residenEal and commercial construcEon. The average unemployment rate, at 14.2 percent for the 12 months ending May 2011, is higher than the n

naEonal average unemployment rate during the same period was 9.3 percent, down slightly from 9.8 percent a year ago.  

120 

125 

130 

135 

140 

145 

150 

1,050 

1,100 

1,150 

1,200 

1,250 

1,300 

Thousands 

Millions 

Year and Quarter 

Job Market Conditions are Stabilizing 

Quarterly Nonfarm Employment 

Riverside  MSA  NaEon (right  axis) 

Seasonally Adjusted Data  

Source: Bureau of Labor  StaEsEcs 

0 

2 

4 

6 

8 

10 

12 

14 

16 

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

Date Riverside MSA Population

Annual Growth Rate From 

Prior Date

4/1/00                            3,254,800 ‐

7/1/07                            4,048,900 3.4%

4/1/10                            4,224,900 1.6%

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

Housing Crisis Slowed                                                        Population Growth in 

Riverside

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

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 

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 

nistraEon’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.  

Employment, and Housing Market: 

een rapid populaEon growth since 2000, increasing by 30 percent – a total of 

4.2 million as of April 2010. More than 70 percent of the MSA’s growth during the 

as due to new residents moving into the area. Strong employment growth led to 

g by an average of 109,500, or 3.4 percent a year from 2000 to 2007. Since 2007, 

an and the local economy weakened, populaEon growth slowed to an average of 

nnually.   

e 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 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 

 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 

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 

oyment rate during the same period was 9.3 percent, down slightly from 9.8 percent a year ago.  

120 

125 

130 

135 

140 

145 

150 

Millions 

Year and Quarter 

Job Market Conditions are Stabilizing 

Quarterly Nonfarm Employment 

Riverside  MSA  NaEon (right  axis) 

ed Data  

 Labor  StaEsEcs 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Unemployment Rate Remains High 

Monthly Unemployment Rate (Percent) 

Riverside MSA (Not Seasonally Adjusted)  NaEon (Seasonally Adjusted) 

Source: Bureau of Labor StaEsEcs 
 e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | July 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Riverside MSA | Page 2

The home sales market remains soft in the Riverside 

MSA. Existing home sales rose in 2008 and 2009, 

though the boost was due in part to sales of distressed 

homes – foreclosures and short sales – which currently 

represent 57 percent of all existing home sales in the 

MSA compared with 32 percent nationally. Local home 

sales fell in 2010 and continue to decline in 2011. 

During the fi rst four months of 2011, existing home sales 

declined by 18 percent compared with the fi rst four 

months of 2010, while new home sales declined 45 

percent, according to CoreLogic. The high proportion 

of distressed sales has kept Riverside home prices 

depressed. The CoreLogic repeat-sales house price index 

shows that home prices in Riverside rose faster and fell 

farther than in the rest of the nation. Home prices in 

Riverside dropped 54 percent from their peak in August 

2006 to their low in May 2009 -- a much steeper descent 

than the national average peak-to-low decline of 31 

percent. While the overall market remains fragile, local 

home prices have shown signs of stabilizing since May 

2009 and are currently higher than their 2009 lows. The 

local rental market is improving with apartment vacancy 

rates at 6 percent in the fi rst quarter of 2011, down 

from 8 percent a year earlier and slightly below the 

national average of 6.2 percent according to Reis Inc. 

The average rent for a Riverside apartment, at $1,040, is 

just 1 percent higher than a year ago. The average rent 

nationwide increased by 1.9 percent to $1,047 during 

the same period.

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 

also declined in Riverside over the past year, dropping 

from 9,400 in the fi rst quarter of 2010 to 7,600 in the fi rst 

quarter of 2011, although lender process reviews continue 

to affect foreclosure completions locally and nationally. 

However, the data continue to paint a mixed picture as 

nearly half of all mortgages in the Riverside area (47%) 

are in negative equity – more than twice the national rate 

of 23% as reported by CoreLogic -- representing more 

homeowners and loans potentially at risk. 

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

ForeclosureForeclosure

Foreclosure Completion Rates in Riverside Outpace The Nation

First Quarter 2011 Since April 1, 2009

Area

home sales market remains soP in the Riverside MSA. ExisSng home sales rose in 2008 and 2009, though 

boost was due in part to sales of distressed homes ‐‐ foreclosures and short sales – which CoreLogic 

ently puts at 57 percent of all exisSng homes sales in the MSA compared with 32 percent naSonally. 

rding to CoreLogic, home sales fell in 2010 and conSnue to decline in 2011.  In the first four months of 

1, exisSng home sales declined by 18 percent compared with the first four months of 2010, while new home 

s declined 45 percent. The high proporSon of distressed sales has kept Riverside home prices depressed. The 

Logic repeat‐sales house price index shows that Riverside home prices rose and then fell by far more than 

e naSon.  Home prices in Riverside dropped 54 percent from their peak in August 2006 to their trough in 

 2009, much greater than the peak‐to‐trough decline in naSonal home prices of 31 percent.  Local home 

es have shown signs of stabilizing since May 2009 and are currently higher than their lowest level of 2009, 

ough the overall sales market remains fragile. The local rental market has improved with apartment vacancy 

s reported by Reis Inc. at 6 percent in the first quarter of 2011, down from 8 percent a year earlier and 

tly less than the naSonal average.  The average rent for a Riverside apartment, at $1,040, was up 1 percent 

 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.  

nds in Mortgage Delinquencies and Foreclosures:    

side MSA homeowners have struggled with some of the highest levels of mortgage delinquency and 

losure in the naSon. As of May 2011, Riverside and San Bernardino CounSes had, respecSvely, the 7th and 9th 

st 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 

gages 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 

esenSng over 16 percent of then acSve mortgages) to 78,000 in May 2011, according to CoreLogic. However, 

y half of all mortgages in the Riverside area (47%) are in negaSve equity ‐‐ more than twice the naSonal rate 

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

100 

150 

200 

250 

300 

350 

Riverside Price Declines More Severe an in Nation, Market Remains Fragile 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Riverside MSA  NaSon  Source: CoreLogic 

5.0 

5.5 

6.0 

6.5 

7.0 

7.5 

8.0 

8.5 

9.0 

Year and Quarter 

Local Rental Vacancy Rates Similar to the Nation 

Quarterly Apartment Rental Vacancy Rates (Percent) 

Riverside MSA  NaSon 

Source: Reis, Inc. 

6,000 

7,000 

100 

120 

Existing and New Single-Family Home Sales: 

Riverside Compared to the Nation 

Annual Home Sales (thousands)  

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

Foreclosure Completion Rates in Riverside Outpace The Nation

 home sales market remains soP in the Riverside MSA. ExisSng home sales rose in 2008 and 2009, though 

boost was due in part to sales of distressed homes ‐‐ foreclosures and short sales – which CoreLogic 

ently puts at 57 percent of all exisSng homes sales in the MSA compared with 32 percent naSonally. 

ording to CoreLogic, home sales fell in 2010 and conSnue to decline in 2011.  In the first four months of 

1, exisSng home sales declined by 18 percent compared with the first four months of 2010, while new home 

s declined 45 percent. The high proporSon of distressed sales has kept Riverside home prices depressed. The 

eLogic repeat‐sales house price index shows that Riverside home prices rose and then fell by far more than 

he naSon.  Home prices in Riverside dropped 54 percent from their peak in August 2006 to their trough in 

y 2009, much greater than the peak‐to‐trough decline in naSonal home prices of 31 percent.  Local home 

es have shown signs of stabilizing since May 2009 and are currently higher than their lowest level of 2009, 

ough the overall sales market remains fragile. The local rental market has improved with apartment vacancy 

s reported by Reis Inc. at 6 percent in the first quarter of 2011, down from 8 percent a year earlier and 

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.  

ends in Mortgage Delinquencies and Foreclosures:    

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 

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 

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 

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

100 

150 

200 

250 

300 

350 

Riverside Price Declines More Severe an in Nation, Market Remains Fragile 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Riverside MSA  NaSon  Source: CoreLogic 

5.0 

5.5 

6.0 

6.5 

7.0 

7.5 

8.0 

8.5 

9.0 

Year and Quarter 

Local Rental Vacancy Rates Similar to the Nation 

Quarterly Apartment Rental Vacancy Rates (Percent) 

Riverside MSA  NaSon 

Source: Reis, Inc. 

7,000 120 

Existing and New Single-Family Home Sales: 

Riverside Compared to the Nation 

Annual Home Sales (thousands)  

Foreclosure 

Completions Foreclosure Rate Foreclosure Completions Foreclosure Rate

erside MSA                        7,628  0.5%                      79,609  5.4%

Nation                    215,046  0.2%                2,068,092  1.6%

Foreclosure Rates as Percent of All Housing Units;

 Data through May 2011 for Foreclosures since 2009

 Realty Trac and Census Bureau

Foreclosure Completion Rates in Riverside Outpace The Nation

First Quarter 2011 Since April 1, 2009

Area

nds in Mortgage Delinquencies and Foreclosures:    

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 

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 

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 

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

5.0 

5.5 

6.0 

6.5 

7.0 

7.5 

Year and Quarter 

Riverside MSA  NaSon 

Source: Reis, Inc. 

0 

2 

4 

6 

8 

10 

12 

14 

16 

18 

20 

Riverside MSA  NaSon 

Source: CoreLogic 

Share of Distressed Mortgages Remains High, But Is Declining 

Mortgages 90+ Days Delinquent (Percent) 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

7,000 

0 

20 

40 

60 

80 

100 

120 

2003  2004  2005  2006  2007  2008  2009  2010 

Existing and New Single-Family Home Sales: 

Riverside Compared to the Nation 

Annual Home Sales (thousands)  

NaSon: ExisSng Sales (right axis)  NaSon: New Sales (right axis)  Riverside MSA: ExisSng  Sales  Riverside MSA: New  Sales 

Sources: CoreLogic, HUD/Census  Bureau, and NaSonal AssociaSon of Realtors 
 e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | July 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Riverside MSA | Page 3

 e Administration’s Eff orts to 

Stabilize the Riverside Housing 

Market:

From the launch of the Administration’s assistance 

programs through the end of May 2011, approximately 

132,000 mortgage assistance interventions have been 

offered to homeowners in the Riverside metropolitan 

area. More than 76,000 interventions were offered 

through the Home Affordable Modifi cation Program 

(HAMP) and the Federal Housing Administration (FHA) 

loss mitigation and early delinquency intervention 

programs. An estimated additional 56,000 proprietary 

modifi cations have been offered through Hope Now 

Alliance servicers. While some homeowners may have 

received help from more than one program, the number 

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. 

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

1.636935 

Projected Completed

2160 1141

124 0

896 258

1140 883

150 0

150 0

502 0

4 0

200 0

121 0

177 0

NSP1 Total

Riverside MSA NSP Activity (Housing Units)

Clearance and demolition

Homeownership assistance to low‐ and moderate‐income

Rehabilitation/reconstruction of residential structures

NSP2 Total

Rehabilitation/reconstruction of residential structures

NSP3 Total

Clearance and demolition

Construction of new housing

Homeownership assistance to low‐ and moderate‐income

Rehabilitation/reconstruction of residential structures

The Administration’s Efforts to Stabilize the Riverside MSA Market: From April 1, 2009 through the end of May 2011, 74,500 mortgage assistance intervenJons have 

been offered to Riverside area homeowners through the AdministraJon’s assistance programs 

(Home Affordable ModificaJon Program and FHA’s loss miJgaJon and early delinquency 

intervenJon programs).  An addiJonal 55,000 to 56,000 proprietary modificaJons are esJmated to 

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 

than one program, the number of Jmes assistance has been offered is nearly two‐thirds higher than 

the number of foreclosures completed during this period (80,000) in the Phoenix MSA.   

  

In addiJon to offers of mortgage aid to homeowners, the AdministraJon’s Neighborhood 

StabilizaJon Program (NSP) and Hardest Hit Fund (HHF) have both contributed toward achieving 

housing market stability in the Riverside MSA.  

  

Sixteen jurisdicJons in the Riverside MSA have received NSP grants. These include the Town of Apple 

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 

Bernardino.  

  

0 

20 

40 

60 

80 

100 

120 

140 

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) 

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. 

Mortgage Aid Offers in Riversdide MSA from April 2009 through May 2011: 131,900

Foreclosure CompleJons Over Same Period:  79,600

• 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 

projects were selected for funding, including the Hillcrest Court Apartments in the City of Victorville for 

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. 

• 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 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 

rehabilitaJon component to first Jme homebuyers.  Thirty‐eight households have been assisted, and seventeen of 

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.  

• The City of Desert Hot Springs within Riverside County has one of the highest combinaJons of unemployment, 

foreclosure, vacancy, loan rates and average home sales price decline.  UJlizing County NSP funds, while leveraging 

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 

households and the remaining are restricted for low‐income households.  

• Due to its physical size (over 7,200 square miles), Riverside County designed its NSP1 program to uJlize a large 

number of development partners. To date the County has generated over $16 million in program income, equivalent 

to a third of its original NSP1 grant. Program income is returned to the County, and these funds can be reuJlized for 

addiJonal NSP projects.  

• The City of Moreno Valley's NSP program acquired two apartment complexes in desperate need of rehabilitaJon in 

a transiJonal neighborhood providing a total of twenty‐seven 2‐bedroom units affordable to very low income 

families and providing cost‐saving ameniJes that will reduce tenants' uJlity expenses. ConstrucJon is underway, 

with compleJon anJcipated in 2012. 

• The City of Rialto structured its NSP1 program to include two separate consulJng firms: one on the administraJon/

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.  

verall, $133,451,386 in NSP1 and $50,117,859 in NSP3 funds have been awarded to these sixteen 

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.  

pproximately 1,141 households have already benefited from NSP and acJviJes funded by the 

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:

 The City of Riverside aggressively leveraged its $6.5 million NSP1 grant with $5 million in local 

edevelopment agency funds ‐‐ named the Targets of Opportunity (TOO) program ‐‐ and a $20 million 

rivate line of credit for a total pool of $31.5 million. This will enable the city to purchase, rehabilitate, 

nd sell or rent foreclosed homes to eligible homebuyers/renters. In addiJon, purchase price 

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.  

Riverside MSA NSP Acti vity (Housing Units) Projected Completed

NSP1 Total 2160 1141

Clearance and demoliti on 124 0

Homeownership assistance to low- and 

moderate-income 896 258

Rehabilitati on/reconstructi on of 

residenti al structures 1140 883

NSP2 Total 150 0

Rehabilitati on/reconstructi on of 

residenti al structures 150 0

NSP3 Total 502 0

Clearance and demoliti on 4 0

Constructi on of new housing 200 0

Homeownership assistance to low- and 

moderate-income 121 0

Rehabilitati on/reconstructi on of 

residenti al structures 177 0

Sixteen jurisdictions in the Riverside MSA have received NSP grants: the Town of 

Apple Valley, the cities of Corona, Fontana, Hemet, Hesperia, Moreno Valley, 

Ontario, Rancho Cucamonga, Rialto, Riverside, San Bernardino, Victorville, Perris, 

Indio, and the counties of Riverside and San Bernardino. 

Overall, $133.5 million in NSP1, $8.3 million in NSP2, and $50.1 million in 

NSP3 funds have been awarded to these sixteen jurisdictions. Approximately 

1,141 households have already benefi ted from NSP, and activities funded by the 

program are expected to provide assistance to an additional 1,671 owner and 

renter households. Here are some examples of how these funds have been put to 

use:

• The City of Riverside aggressively leveraged its $6.5 million NSP1 grant, 

bringing an additional $5 million in local redevelopment agency funds 

– named the Targets of Opportunity (TOO) program – and a $20 million 

private line of credit to the community. With a total of $31.5 million in 

available funds, the city is now able to purchase, rehabilitate, and sell or rent 

foreclosed homes to eligible homebuyers/renters. The grantee is also making 

homebuyer assistance available to income-qualifi ed households that purchase 

a rehabilitated home. This combined approach led to the city’s NSP/TOO 

program to be named as a fi nalist in the National League of Cities Municipal 

Excellence Awards for 2010.

Foreclosure Completi on Rates in Riverside Outpace The Nati on

Area

First Quarter 2011 Since April 1, 2009

Foreclosure 

Completi ons

Foreclosure 

Rate

Foreclosure

Completi ons

Foreclosure 

Rate

Riverside 

MSA 7,628 0.5% 79,609 5.4%

Nati on 215,046 0.2% 2,068,092 1.6%

Note: Foreclosure Rates as Percent of All Housing Units; Data through May 

2011 for Foreclosures since 2009

Source: Realty Trac and Census Bureau

Foreclosure 

Completions Foreclosure Rate Foreclosure Completions Foreclosure Rate

rside MSA                        7,628  0.5%                      79,609  5.4%

Nation                    215,046  0.2%                2,068,092  1.6%

oreclosure Rates as Percent of All Housing Units;

Data through May 2011 for Foreclosures since 2009

 Realty Trac and Census Bureau

Area

0 

2 

4 

6 

8 

10 

12 

14 

16 

18 

20 

Riverside MSA  NaSon 

Source: CoreLogic 

Share of Distressed Mortgages Remains High, But Is Declining 

Mortgages 90+ Days Delinquent (Percent) 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

0 

20 

40 

60 

80 

100 

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 

Sources: CoreLogic, HUD/Census  Bureau, and NaSonal AssociaSon of Realtors 
 e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | July 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Riverside MSA | Page 4

• 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 nonprofi t 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 fi rst 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 effi cient 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 

fi nished 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 fi rms: 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 fi nancial problems. The Keep Your 

Home California programs help low and moderate income families 

experiencing fi nancial 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 fi nancial assistance in the form of a mortgage 

payment subsidy. UMA funds can provide up to six months of 

benefi ts.

• 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 benefi ts 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 modifi cation. (Servicers that contribute 

through matching funds increase the benefi t 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.