3. The Act does not deal with the corporation's responsibility to adequately check the credit and assess individual prospective buyers for likelihood of their success as homeowners. As indicated by Ms. Pope on pages 5 and 6 of Exhibit 3, inadequate screening of buyers by HUD has been, to a significant extent, responsible for the abandonment cycle which has occurred in Delmann Heights and elsewhere. The problem is particularly acute in the case of HUD and VAinsured loans where the private lender has little incentive to adequately screen buyers since his investment is completely insured. The object of proper screening is to insure, as much as feasible, that the prospective buyer has some chance of meeting the payments required by home ownership and that the prospective buyer does not have a history of purchasing and abandoning homes or defaulting on mortgages. As stated by Ms. Pope, the people who bear the burden of unqualified buyers and subsequent abandonment are the remaining residents who are left with the vandalized remains of the vacated homes.

4. A concomitant to adequate credit screening is adequate counseling which the Act does mandate in §6(i). However, I believe that the corporation should also be given authority for ongoing counseling where necessary. It is clear that home ownership, in particular, often necessitates a significant change in social and budgetary management by a family-a change which may well require ongoing counseling beyond the initial purchase of the property.

5. The Act provides the corporation with authority to compensate a purchaser for structural or other defects if three specified conditions are met [§6(g)]. I believe that this is inadequate and that the corporation should be held specifically responsible for the quality of the rehabilitation and/or development conducted upon properties it sells. This responsibility should not be dependent upon the second part of the third condition that the defect be one that proper inspection could reasonably be expected to disclose. One of the critical elements for a successful program is assuring, to the maximum extent, that low and moderate income buyers of the dwelling units sold by the corporation are able to maintain their properties and continue to have the desire and incentive to maintain payments on the properties. To this end, every reasonable step must be taken to eliminate unnecessary burdens on low and moderate income home buyers. A burden which has often led to abondment involves defects in the rehabilitation which are discovered some time after purchase. The corporation is in a good position toe xtract quality warranties from rehabilitation contractors and developers and is in a much better position than low and moderate incme buyers to pursue actions against such contractors in the case of improper work. Placing the responsibility on a low and moderate income buyer to collect for improper work would increase substantially the danger of the abandonment as a result of the increased cost on the owner. Consequently, the responsibility of the corporation for rectifying improper work should extend to all defective work without limitation as to whether the defect is one "that a proper inspection could reasonably be expected to disclose".

6: The proposed Act provides in §6(h) and §7(a)(3) for authority to extend the time for payment of any installment by any mortgagor. I believe that the Act should set some standard under which the corporation would be required to grant an extension of up to three months upon a good cause showing temporary inability to make payments, as a result of illness or some other unforeseen circumstances. Possibly, the Act should allow a mortgagor a one-month payment extension every two or three years if the extension is brought up to date within one year, except where there exists evidnce that the mortgagor is committing waste on the property.

7. Section 7(a) (5) specifies that the operation of the corporation shall be fully self-supporting. I question whether the cost of counseling, if meaningfully implemented, should be included in this self-supporting requirement.

I fear that the managers of the corporation will readily discard the counseling requirement or severely limit its application at the first sign of a budgetary problem. This would be tragic in the sense of undercutting one of the most critical elements necessary for a decrease in the abandonment rate. The counseling program should be independently and generously funded from some other source such as general revenues so that competing budgetary demands do not lead to its demise.

DELMANN HEIGHTS/CALIFORNIA GARDENS REVITALIZATION STUDY—

An Experimental and Demonstration Project in Community Crime Abatement (By Dukes-Dukes and Associates; John Dukes, President; Sammie Dukes, Executive Vice President; L. P. Lewis, Project Manager; Robert Mascolo; Jerry Varnado; Louise Webb; and Dianne Williams)

Prepared for California Youth Authority, Sacramento, Calif., Contract 2-CCA, to be utilized by The San Bernardino Westside Community Development Corporation.

INTRODUCTION

A keystone of American democracy is the right of every citizen to participate in the decision making processes that directly affect his life. The basic intent of this study is to establish a framework where the people of Delmann Heights and California Gardens can develop their own decision making processes for the well being of their community.

In 1972 and 1973 Dukes-Dukes & Associates undertook a contract with the California Youth Authority to deal with crime abatement in selected California cities. Among these cities was San Bernardino. The study area there is made up of approximately 80 single family homes, 41% of which are vacant and boarded up. Mortgage insurance on these homes was provided by the FHA or the Veterans Administration and through the process of mortgage foreclosure these agencies had acquired these properties.

Through a nearly devastating process of real estate manipulations stemming from racial bias, economic disinvestment and inappropriate public actions, Delmann Heights and California Gardens had been transformed into deteriorating neighborhoods undergoing the abandonment process. Due to the high rate of mortgage foreclosures and difficulty in remarketing the vacant houses, the FHA had been forced to withdraw these properties from the market.

In this context, it was clear that for Dukes-Dukes & Associates to deal effectively with crime abatement, the issues of housing abandoment and neighborhood revitalization would have to become the major concern. This recognition led to an analysis of community problems and issues which finally resulted in this study.

The materials contained within this study are organized in three basic categories; a description of existing conditions, an analysis of physical facilities and an analysis of social issues. Each sub topic within the physical and social categories is preceded by a summary of recommendations and includes an analysis of formal plans affecting it. In that there are a great number of recommendation contained in this study, capital letters have been utilized to emphasize those of major importance.

It is our deep hope that this study is the correct tool for the citizenry and public officials to chart a course of action that will lead to the revitalization of Delmann Heights and California Cardens.

Specific goals

GOALS

The overall goal of this study is to create a context where residents can develop their own plan to revitalize the residential portions of the area while improving community facilities as well as commercial and industrial patterns. To retain and rehabilitate or modify existing housing, stop the high rate of abandonment, and to allow for a stable yet varied population growth. To seek ways of relating Delmann Heights and California Gardens to the entire city.

To re-evaluate present plans affecting the study area and to influence future plans so that they will be more responsive to the people's needs.

To provide job opportunities by encouraging industrial and commercial development best suited to the economic base of the study area and entire city, ultimately leading to full employment at acceptable wages for residents.

To provide adequate, attractive neighborhood facilities and human services conveniently located to serve the people who live and work in the district. To revitalize the existing shopping area and to attract appropriate commercial investment for the greater convenience and pleasure of the people who live and work in the area.

To improve the appearance of the study area for those who live there and make it an attractive and interesting place to visit.

To buffer residential areas from incompatible land uses.

To improve traffic circulation within the area while enhancing access to and from the study area and, in particular, to keep non-residential traffic out of the residential neighborhoods.

To provide adequate education for all residents regardless of existing educational deficiencies.

To achieve an adequate measure of study area resident control of all public policy and decision making processes affecting the institutions, services and quality of their community.

BACKGROUND

The City of San Bernardino was originally established as a Mission town and is now the seat of the largest county in the nation, which covers an area of approximately 20,000 square miles. After being established as a Mission town by the Spaniards, San Bernardino became a Mormon Settlement. The Mormons developed the town on a grid system which exists today and established themselves as the dominant social force until they were called back to Salt Lake City in the mid 1800's. Later, settlers developed the area as a center for citrus fruit crops and shortly thereafter, San Bernardino became a railroad center when the Atchison Topeka and Santa Fe relocated its maintenance shops. The City of San Bernardino's population grew significantly as a result of World War II with the establishment of military bases and related new busi

nesses.

Recent data shows San Bernardino County with a population of 698,000 people of which nearly 450,000 are White. The County's non-white population is mainly Spanish Surnamed (111,700), with a small Black population (29,300). By contrast, the City of San Bernardino, with a total population of 107,000, has a much larger percentage of non-white people, with 25,000 Spanish Surnamed persons and 17,500 Black people.

Over 70% of the non-white population is concentrated in the western sector of the city. Within this western sector, or the "Westside" as it is called, the Spanish Surnamed and Black populations are geographically situated in distinct areas with the predominent Black population to be found North of Baseline Street and the Spanish Surnamed located South of Baseline.

Within that portion of the "Westside" that is predominantly Black are two adjoining neighborhoods known as Delmann Heights and California Gardens (see Location of Study Area map). These two neighborhoods have the same general demographic characteristics yet differ in size and, most significantly, in the rate of abandonment of single family homes. Highland Avenue, a major East-West Street and California Street, a less heavily trafficked North-South Street, separate the two neighborhoods. More specifically, Delmann Heights is bounded by Cajon Boulevard to the Northeast, Western Avenue to the East, Highland Avenue to the South and California Street to the West. California

Gardens is bounded by 19th Street to the North, California Street to the East, a vacant tract of land just below 17th Street to the South, and State Street to the West.

Both areas were developed privately in the 1950's with single family homes for sale and financed under either FHA or Veterans Administration mortgage assistance programs. The homes themselves are generally small, and spartan. These neighborhoods were initially considered relatively stable and had no more than the usual number of mortgage foreclosures.

California Gardens, until last year, was just outside the City limits of San Bernardino, while Delmann Heights was annexed to the City in 1966. Prior to annexation, this area, known as Muscoy, was inhabited by white upwardly mobile families of modest income that would generally sell their homes and move elsewhere to similar or better housing as their income rose, other job opportunities occurred, or their families became too large for the house they occupied. (It is interesting to note that three of the city officials interviewed in the process of developing the data for this study mentioned that they or other fellow workers had "started out" in Delmann Heights).

Between 1950 and 1960, Delmann Heights at the northwest edge of the city began to experience an exodus of white households. The increased property tax assessments that resulted from annexation coupled with the influx of relocatees from a redevelopment project elsewhere caused an acceleration of this exodus to what can only be described as a panic withdrawal of White families. It is estimated that currently the Black populations of the two neighborhods exceed 90% of the total.

As a result of the rapid white exodus, property values dropped to the point where it became difficult for a seller to market his property and pay off outstanding mortgages. In the late 1960's it became increasingly expedient for a property owner (Black or White) with little cash equity to abandon his property rather than attempt to pay off mortgages that amounted to more than the houses current value on the open market. Thus, a grim pattern had begun and has continued to accelerate to this day. For instance, in May of 1971, 100 properties had been abandoned and were in foreclosure by FHA or the VA in Delmann Heights alone. In May of this year, there were nearly 300 vacant and boarded up houses in foreclosure in Delmann Heights. Some of these houses have been abandoned, foreclosed upon, rehabilitated and resold two and three times. If this accelerating rate of abandonment were to continue, it would be only two years more before the entire area is abandoned. Presently, it is very difficult to sell a house in Delmann Heights on the open market due to the high percentage of abandoned and boarded up buildings, combined with a history of high rates of arson, vandalism and theft. Many of the remaining families have been victimized, their property stolen, damaged, or destroyed. Even though a major need for low and moderate income housing exists, the image of Delmann Heights is so bad that few have been willing to buy into the area. Delmann Heights can only be characterized as a blighted neighborhood with boarded up and vandalized houses everywhere. The houses, which are approximately 20 years old, can generally be described as shabby, deteriorated, and devoid of landscaping. Signs threatening prosecution by the F.B.I. for trespassing are an ominous presence. Many of the occupied units are overcrowded.

In spite of the grim recent history of Delmann Heights, there still exists a core of stable and courageous homeowners whose properties are generally attractive and well kept. Most of these owners are committed not only to remaining in Delmann Heights, but also to working to make the area, in all senses, a viable community. These residents with assistance from the Community Development Corporation are organizing themselves in groups structured to achieve this goal.

California Gardens, just a few blocks away, has a lower rate of abandonment and cannot be described so negatively as Delmann Heights. Of the 142 homes thirty-five are boarded up. While this is a very high rate of abandonment, one does not leave the area with the same sense of ominous disaster as in Delmann Heights. In June of this year the Community Development Corporation had rehabilitated and sold five of the vacant units in California Gardens and were working on fourteen others. A homeowners association was formed to deal with neighborhood problems, and a cautious sense of optimism prevails. The area