Nationwide index shows the county has 17th-highest economic
stress level due to foreclosures, unemployment
San Benito County has the 17th-highest economic stress level of
the more than 3,100 counties in the United States, according to an
Associated Press analysis that factors in unemployment, foreclosure
and bankruptcy rates.
While the Economic Stress Index shows that the average county’s
score in December 2009 was 10.8
– the highest figure since the recession began in December 2007
– San Benito County’s score was 21.58. The county was the
ninth-most economically stressed county in California, which had an
overall stress level of 16.25.
Nationwide index shows the county has 17th-highest economic stress level due to foreclosures, unemployment
San Benito County has the 17th-highest economic stress level of the more than 3,100 counties in the United States, according to an Associated Press analysis that factors in unemployment, foreclosure and bankruptcy rates.
While the Economic Stress Index shows that the average county’s score in December 2009 was 10.8 – the highest figure since the recession began in December 2007 – San Benito County’s score was 21.58. The county was the ninth-most economically stressed county in California, which had an overall stress level of 16.25.
A higher score indicates more economic stress, and a county is considered stressed when its score exceeds 11.
“A lot of people that are at risk of losing their homes have common symptoms such as stress, fear and anxiety,” said C.J. Valenzuela, San Benito County’s housing programs coordinator. “When someone is losing their home or is forced out of a rental property, that’s a big shift in their life.”
The county and Hollister’s Redevelopment Agency have partnered to offer workshops and other services that are designed to mitigate the negative affects of residential foreclosures, Valenzuela said.
Hollister’s Neighborhood Stabilization Program acquires foreclosed and abandoned homes, rehabilitates them and re-sells them to low- and moderate-income families. The city also offers down payment assistance of up to $50,000 to first-time home buyers.
As of Feb. 11, 235 properties in San Benito County were in the notice of default stage, 289 were in the trustee sale/auction stage and 285 were bank-owned properties, according to realtytrack.com. Add to that the nearly 19 percent unemployment rate in the county, and a high stress level is not surprising, Valenzuela said.
“There’s a need for the services that we provide,” he said, noting that the city and county housing programs are relatively new – a product of the county’s dire housing situation.
“Our housing departments are collaborating,” Valenzuela said. “We’re working in the near future on a contract with a Housing and Urban Development-approved agency to provide mortgage foreclosure prevention counseling services to San Benito County residents. We want to connect people to the right resources to get them through their situation.”
Local housing officials next week are sponsoring a free, two-day Housing Expo designed to give current and prospective homeowners information that can help them keep or buy a home.
The first day of the event, Feb. 25, is an all-day foreclosure prevention workshop designed for at-risk homeowners and tenants. It will be held at the Veteran’s Memorial Building from 9 a.m. to 5 p.m.
On Feb. 26, workshops for prospective home buyers will be held from 3-7 p.m. Local nonprofit agencies, government agencies and real estate professionals will be on hand throughout the expo, which welcomes walk-ins but recommends RSVP’s.
For more information, call Maria Mendez at 636-4316, ext. 10 or e-mail her at ma**********@ho*******.gov.
According to the AP’s report, foreclosure and bankruptcy rates rose at the end of last year even as the nation’s unemployment rate held steady. Nearly 45 percent of the nation’s 3,141 counties were distressed in December, up from 39 percent in the previous month.
Nevada, with a stress score of 21.08, was the most economically stressed state during the most recent evaluation, followed by Michigan (17.43) and California. North Dakota (4.99) was the least-stressed state economically in December, according to the AP’s index.
Other low-stress states were South Dakota (5.47), Nebraska (5.63), Vermont (7.14) and Montana (7.71), though all of these states saw their stress score rise from November to December.
Nancy Martin, president and chief executive officer of the Economic Development Corporation of San Benito County said local economic woes have been impacted by the sewer moratorium that put a cap on construction for years.
“Then, all of a sudden, the economy goes on a fast, downward spiral and companies have come to a standstill,” she said. “They don’t know what to do next. We’ve poured money into the economy but some of that has not yet beared the fruit they thought it would. Credit lines and the opportunity to pursue capital have also dried up.”
Despite the poor economy, Martin said she believes San Benito County is in better shape than others in California because other jurisdictions still expect to see more commercial buildings default and businesses leave.
The EDC, Martin said, is laying a foundation so that when the economy begins to move forward “we’ll have programs and offerings in place that will make it attractive for companies to locate here.”
Here are the 20 most economically stressed counties with populations over 25,000 and their November 2009 Stress scores, according to The AP Economic Stress Index:
1. Imperial County, Calif., 32.76
2. Merced County, Calif., 25.14
3. Stanislaus County, Calif., 23.76
4. San Joaquin County, Calif., 23.55
5. Sutter County, Calif., 23.39
6. Yuba County, Calif., 23.26
7. Yuma County, Ariz., 23.06
8. Lyon County, Nev., 23.01
9. Lapeer County, Mich., 22.37
10. Lauderdale County, Tenn., 22.23
11. Riverside County, Calif., 21.97
12. Union County, S.C., 21.96
13. Clark County, Nev., 21.92
14. Nye County, Nev., 21.87
15. Lake County, Calif., 21.83
16. Marion County, S.C., 21.75
17. San Benito County, Calif., 21.58
18. Chester County, S.C., 21.56
19. Dallas County, Ala., 21.36
20. Kern County, Calif.,20.85
