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» The California HBOR is a package of six landmark bills that provide protections to struggling homeowners and tenants in the state. The NHLP will work with Western Center on Law and Poverty, National Consumer Law Center, and Tenants Together to apply the grant. According to a release, the grant will be used for the following: »» Provide on-site trainings and webinars to consumer and housing attorneys on how to maximize the bill's protections »» Train more than 800 lawyers »» Provide support in cases that raise important legal issues or have potential for broad impact »» Create a library of litigation materials to help attorneys maximize the bill's benefits »» Produce a report that analyzes the HBOR's statewide impact and identifies compliance problems The funds for the grant were secured through the national mortgage settlement reached in February 2012. "Californians were hit hard by the mortgage crisis and many people are still struggling to stay in their homes," said Attorney General Kamala D. Harris in a release. "The California Homeowner Bill of Rights gives borrowers more opportunities to stay in their homes, and this grant will help make sure the law is applied across the state and that everyone gets the protection they are entitled to." California's Principal Reduction Program Expands Its Reach The Principal Reduction Program that functions under the Keep Your Home California initiative experienced a 47 percent increase in participation from the fourth quarter of 2011 to the fourth quarter of 2012, according to the U.S. Department of the Treasury. Treasury attributes this jump in the program's reach to recent changes that allow Keep Your Home California to finance principal reductions in their entirety rather than offering a dollar-for-dollar match to participating servicers. Under the revised approach, about 60 mortgage servicers have opted to participate in the program, including Bank of America, JPMorgan Chase, and Wells Fargo. The Principal Reduction Program is an integral part of Keep Your Home California, which debuted in February 2011 and is subsidized through Treasury's Hardest Hit Fund. "By curbing mortgage debt and lowering monthly payments, homeowners are able to stay in their homes and breathe a bit easier," Treasury stated. In fact, according to Treasury, "one of the best ways to help financially strapped, underwater homeowners may be through a mortgage loan principal reduction." About 30 percent of California homeowners are underwater on their mortgages, Treasury reports. Eligible underwater homeowners facing financial hardships may apply for principal reductions through Keep Your Home California and have their loan-to-value ratios reduced to between 105 percent and 140 percent. On average, the Principal Reduction Program in California has reduced participating homeowners' monthly payments from about $320,000 to about $223,000. Thus far, about 1,000 homeowners have been assisted through the Principal Reduction Program, and about 25,000 homeowners have received assistance through the broader Keep Your Home California set of programs. New Construction Won't Threaten Strong Apartment Market California markets topped the list of markets with the highest annual rent growth for the first quarter of this year, according to RealPage, a software provider for apartment communities. San Francisco and Oakland, California, tied in the No. 1 spot with annual rent growth rates of 6.3 percent. San Jose, California, followed with 5.6 percent growth. Denver-Boulder, Colorado, and Austin, Texas, filled out the top five with 5.4 percent and 4.9 percent annual growth, respectively. A couple large apartment markets posted price declines in the first quarter of the year. Notably, Las Vegas prices declined 1 percent, and Virginia Beach-Norfolk, Virginia, prices declined 0.6 percent. On a national level rent growth slowed from 4.8 percent at the end of 2011 to 2.6 percent in the first quarter of 2013, according to RealPage. Rent growth peaked just a little more than a year ago, according to RealPage. The company predicts rent growth will climb slightly to about 3 percent this year and then drop to about 2.5 percent in 2014. VISIT US ONLINE @ DSNEWS.COM California Foreclosure Uptick Doesn't Indicate Long-Term Trend Foreclosures are declining in most of the Western states tracked by ForeclosureRadar, but some experienced anomalous upticks over the month of February. For example, in California the company reports notices of default and notices of trustee sale together increased 10 percent in February, compared to the previous month's 43.3 percent decline. ForeclosureRadar anticipates a return to the recent trend of declining foreclosure activity in the state, which it suggests are driven by the National Mortgage Settlement and the passage of the California Homeowner Bill of Rights. Together these actions have led to increased foreclosure alternatives such as short sales. While seen as positive for homeowners, ForeclosureRadar points out an unintended consequence of recent market conditions: decreased REO inventory, which is "still very much a part of the California real estate landscape," the firm said. Quality Service You Can Trust. Nobody in the world sells more real estate than Re/Max Serving: ORANGE COUNTY AND RIVERSIDE COUNTY, CALIFORNIA OVER 12 YEARS EXPERIENCE DAVE LARSEN Re/Max Partners direct 951.735.4140 office 951.278.8755 fax 951.346.3188 LarsenGroup@aol.com 83

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