For Immediate Release 
October 23, 2008

Contact:  Ricci Graham  
(510) 763-0370  

OALAND – Today, Congresswoman Barbara Lee (CA-09) today released excepts of a letter she sent to Governor Arnold Schwarzenegger urging him to direct a greater share of the $145 million the state of California will receive from the Department of Housing and Urban Development (HUD) under the Neighborhood Stabilization Act to communities in her Congressional District that have been hit hardest by the foreclosure crisis. 

In an October 16, 2008 letter to Gov. Schwarzenegger, Congresswoman Lee said that HUD officials have informed her Governor Schwarzenegger is "free to direct $145 million in funds to cities and counties that also received their own allocation within the overall Stabilization Grant.”

The letter to the Governor is part of Congresswoman Lee's ongoing effort to secure additional funding for communities impacted by the foreclosure crisis throughout the 9th Congressional District. Oakland is already slated to receive $8.2 million to mitigate the impacts of the foreclosure crisis as part of H.R. 3221 – the Foreclosure Prevention Act which was signed into law on July 30, 2008.

Congresswoman Lee has been a strong advocate for federal funding to address the foreclosure crisis. Congresswoman Lee worked to get $4 billion of foreclosure relief funding included in H.R. 3221, the Foreclosure Prevention Act, and has also pushed HUD to address flaws in the funding formula that would direct additional funding to California.

The following are excerpts from the letter:

"Lower income areas like East Oakland in my district were purposefully targeted and exploited by unscrupulous subprime lenders and need the most financial assistance.  

"The $8.2 million in funds is not enough to address the growing impact of foreclosures on some neighborhoods. Oakland has the eighth highest foreclosure rate in the country and there are now 2,035 vacant REO's and 63 percent of all subprime loans in Oakland are scheduled to reset in the next several years. Unfortunately, the burden of blight and the crime that accompanies those, means that we must do more to help families that are in the greatest need first. 

"I am concerned that if these areas are not given the help that they need as soon as possible, surrounding communities will continue to face dropping prices and more defaults and foreclosures and that this crisis will continue to grow. This is not an acceptable situation and I urge your office to make these funds available as quickly as possible and help us ensure that every county and municipal government or housing organization that is eligible to apply for these funds is informed and familiar with the application process."

# # #