A new report out today shows that first-quarter foreclosures in California have gone up 327% over 2007 levels. An average of 500 homes every day are foreclosed on in the Golden State.

From the LA Times:

DataQuick said in a report warning that the widening foreclosure problem could “spread beyond the current categories of dicey mortgages, and into mainstream home loans.”

From DataQuick’s report on California foreclosures in the first three months of 2008: “Trustees Deeds recorded, or the actual loss of a home to foreclosure, totaled 47,171 during the first quarter. … Last quarter’s total rose 48.9 percent from 31,676 in the previous quarter, and jumped 327.6 percent from 11,032 in first quarter 2007.” That translates into 517 foreclosures every day in the first quarter of 2008.

There is no quick fix to the foreclosure crisis. But there are ways to help prevent the fallout from hitting hard-working families in the future. PolicyLink CEO Angela Glover Blackwell said in a recent commentary on public radio’s Marketplace that the housing crisis may give the momentum we need to commit to community land trusts:

The mortgage crisis has been a disaster for many hard-working families who are striving for the American dream. Millions of Americans, especially low-income people of color, now face foreclosure. Often, home foreclosures are clustered in specific neighborhoods. This concentration can virtually hollow out communities and dramatically drive down the potential resale cost of these foreclosed properties. This is a double whammy of individual loss and neighborhood deterioration.

But there’s a potential upside: These low costs present an opportunity to create something that the market has not: affordable homes.

Cities and towns can buy these homes for well-below market value. Then, they can fix them up and resell them at truly affordable prices. Covenants would require that these homes remain affordable for decades. The result? Communities could create a lasting pool of affordable housing.

The experiment is already underway. Birmingham, Ala., uses a federal program to buy foreclosed homes for as little as $1 each. The homes are then refurbished and resold. This helps stop the pernicious spread of blight.

This strategy isn’t new. Community Land Trusts started in the 1960s and have popped up in more than 35 states. These nonprofit trusts buy up properties. Some are individual homes and vacant lots that have fallen into disrepair; others have been taken over by local governments through tax liens.

Land trusts renovate these properties and return them to the market at affordable prices. This helps communities across the country create a stable and reliable source of good housing for working people.

The mortgage crisis has devastated families and communities across the nation. But every disaster offers opportunity. There are blueprints and tools available to rebuild our communities. Now we have to harness the creative energy to get the job done.