RI sees steep decline in foreclosures; many still cost-burdened

PROVIDENCE, R.I. (WPRI) – Rhode Island saw a 43% decline in foreclosures between 2009 and 2012, but still leads the region in the number of foreclosure initiations, according to a report released Thursday by HousingWorksRI.

In all, 1,617 homes were foreclosed on in 2012, down from 2,840 foreclosures at the height of the nation’s housing crisis. Urban communities still face the bulk of foreclosures throughout the state, with Central Falls, Providence, Woonsocket and Pawtucket all experiencing at least 1.5% of their mortgage housing stock in foreclosure.

“We’ve definitely seen a decline in foreclosures, but we know homeowners are still struggling,” Jessica Cigna, a data analyst for HousingWorksRI, told WPRI.com.

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Cigna said more than 16,000 foreclosure prevention calls were made to the United Way’s 211 call center in 2012, a 64% increase from 2011. She said that 40% of Rhode Island households are still spending at least 30% of their income on housing costs and that the state’s 9.8% unemployment is still making homeowners vulnerable to foreclosure

While the majority of communities across the state saw sharp declines in foreclosures between 2011 and 2012, nine suburban towns saw a spike in lost homes, including Narragansett, which increased from four to eight foreclosures over the two years.

Providence still led the way in total foreclosures in 2012—314 in non-East Side neighborhoods— but the capital city has seen a more than 50% drop in lost homes since 2009. Cranston and Pawtucket had the second and third-most foreclosures in the state last year, respectively.

Cigna said the goal of the report is to show lawmakers that more needs to be done to address affordable housing in the state. In 2012, voters overwhelmingly approved a $25 million affordable housing bond that is expected to build or rehab more than 500 homes throughout Rhode Island. Cigna said a little additional funding from the state could go a long way.

“We just want policy makers to consider how high housing burdens are and how much they’re hampering the economy,” Cigna said.

Dan McGowan ( dmcgowan@wpri.com ) covers politics, education and the city of Providence for WPRI.com. Follow him on Twitter: @danmcgowan