A child's perspective on homelessness

I came across this video over the weekend. An interesting look inside the lives of Kim Ahern and son Jack, 9, who lived in Nickelsville, a tent city in King County, Washington while searching for housing. Nickelsville is the only tent city that allows children on a long-term basis. Source: The Seattle Times

Housing crisis presents policy opportunities

As someone who is very interested in U.S. housing policy, I look at the current housing crisis from a glass half full perspective. Sure, the housing market is a mess and it seems, at times, that the problems are mounting faster than the solutions. Yet, as the editors of a new volume of research point out, crisis presents the opportunity for innovation. This body of research, titled Forging a New Housing Policy: Opportunity in the Wake of Crisis, examines the current crisis in the context of housing policy. The editors share my optimism when it comes to crisis and innovation:

Yet we believe that housing represents a viable and
largely unexplored arena for bold action. As the papers
in this report suggest, a careful look reveals that market
relations and the behavior of market actors themselves
are at the core of the crisis. The private housing market
commodifies basic human needs and motivates market
transactions with the promise of profit and wealth. These
market relations unavoidably contribute to the economic
and social conditions we now face. Once that fact
is recognized, it is possible to explore new avenues for
non-market policies that can lead us out of the present
crisis and, quite possibly, avoid new ones in the future.
The opportunities for intervention are plentiful.

The publication includes a collection of interesting articles by notable academic researchers, including Jeff Crump from the University of Minnesota's Housing Studies program. It is published by the National Center for Suburban Studies at Hofstra University.

NIMBYism and life after the foreclosure crisis

A few weeks ago, I came across the National Association of Realtors' Field Guide to Effects of Low-Income Housing on Property Values while working on a consulting project. The web page is a great resource, with links to research, guides and news stories on the relationship between subsidized housing and property values. The National Association of Realtors' resource is designed to dispel the fears that accompany local opposition to affordable housing development, also known as NIMBY (Not in my backyard). Most of the studies on the page (and elsewhere) suggest that subsidized housing, especially when it is managed well, is compatible with the design of the neighborhood and is at a reasonable scale, has little or no impact on neighboring property values.

Looking through this information, I realized that I haven't thought about NIMBYism in a long time. I'm not sure if this is because I've been spending too much time confined to my home office or if it is because people now have bigger worries about declining property values. When it comes to NIMBY, foreclosures are the new subsidized housing. 

An article in USA Today from 2004 ("Most back affordable housing next door") cites a NAR survey, which suggested that the high cost of housing had brought a greater level of acceptance for affordable housing. The lack of affordable housing was no longer a problem limited to the poor. People were worried that their children, grandchildren and relatives could not afford to live in their community. 

At some point, the housing market will turn around, property values will stabilize and new affordable housing developments will be proposed. How will the experiences from this housing crisis shape our fear over property values and affordable housing? For now, I will keep the Field Guide to Low-Income Housing on Property Values bookmarked.

Hunger and homelessness

Since the early 1980's, the U.S. Conference of Mayors has studied the extent of hunger and homelessness issues in cities throughout the U.S., as well as efforts cities are making to address these challenges. The findings of their most recent study are grim and yet not surprising - cities across the U.S. are seeing an increase in homelessness and emergency food assistance.  The report is a great resource, shedding light on the struggles many people face in obtaining what are very basic human needs - food and shelter.

A summary of findings from the U.S. Conference of Mayors 2010 Hunger and Homelessness Survey:

Homelessness

• Over the past year, the number of persons experiencing homelessness increased across the survey cities by an average of 2%, with 52% of the cities reporting an increase, 36% reporting a decrease, and three cities saying it stayed the same.
• Among families, the number experiencing homelessness increased across the survey cities by an average of 9%, with 58% reporting an increase, 21% reporting a decrease, and 21% saying it stayed the same.
• Among households with children, unemployment led the list of causes for homelessness cited by city officials. It was followed by lack of affordable housing, poverty, low-paying jobs, and domestic violence. Lack of affordable housing led the list of causes of homelessness
• Across the survey cities, an average of 27% of homeless persons needing assistance over the last year did not receive it. Because no beds are available for them, emergency shelters in 64% of the survey cities must turn away families with children experiencing homelessness; shelters in 68% of the cities must turn away unaccompanied individuals.
• Providing more mainstream assisted housing led the list of actions needed to reduce homelessness in the survey cities. This was followed by providing more permanent supportive housing for people with disabilities, and having more or better-paying employment opportunities.

Hunger

• Every city surveyed reported that requests for emergency food assistance increased over the past year, and those requests increased by an average of 24% across the cities.
• Among those requesting emergency food assistance, 56% were persons in families, 30% were employed, 19% were elderly, and 17% were homeless.
• Unemployment led the list of causes of hunger cited by the survey cities, followed by high housing costs, low wages, poverty, and lack of access to SNAP/food stamps.

About the study:

The report presents the results of a survey of 27 of the cities which comprise The U.S. Conference of Mayors Task Force on Hunger and Homelessness. Respondents were asked to provide information on emergency food assistance and homeless services provided between September 1, 2009 and August 31, 2010. The report was prepared by City Policy Associates, Washington, D.C.

Local banks key to success for low-income homeowners

The following post, written by Ed Nelson, the Marketing & Communications Manager for the Minnesota Home Ownership Center, originally appeared on the Center's blog.

New study from Ohio State University finds banking locally can impact mortgage success.

Researchers from the John Glenn School of Public Affairs at Ohio State University have found that low-income homeowners who received a mortgage from a local lender were less likely to default on their loans than those homeowners who borrowed from a more distant bank or mortgage company, even when these borrowers received the same type of mortgage product.

The researchers studied loan performance of more than 20,000 homebuyers who purchased homes AFTER the foreclosure crisis began (between 2005 and 2008). They examined the location of bank branches relative to where the homebuyers purchased their homes and found that higher-risk homebuyers with loans from banks with branches close to their new homes (less than 10 miles) were significantly less likely to default on their mortgages.

Can a personal relationship affect loan repayment?

As with large, non-local banks and many mortgage brokers, most local lenders base their lending decision on ‘the numbers’ like credit scores. HOWEVER, many local lenders place more weight on other factors, such as length of current employment, and whether you make regular deposits in a savings account.

“This kind of information may give a more complete picture of whether a person can really afford a mortgage, particularly for higher-risk borrowers,” said Stephanie Moulton, one of the researchers from Ohio State University.

“Some of the local bankers told me they won’t even look at a credit score until they have talked to an individual and determined if they think he or she can make the payments.”, she added.

The researchers believe that if there’s an existing business/personal relationship, the borrower may feel more obligated to make their payments, and the banks may provide more education and information to the borrowers, equipping them to be better homeowners.

The Minnesota Home Ownership Center truly believes that arming potential homebuyers with the ‘education and information’ that Moulton mentions is THE KEY to long-term successful homeownership. There is an entire chapter of the Home Stretch curriculum dedicated to helping potential homeowners navigate the mortgage loan process… including how to choose a lender and a loan product. For more information, visit the MN Home Ownership Center’s website, here.

Doubled up households = Too much family time

I spent the better part of the past two weeks enjoying time with my family. My kids were out of school, my brother-in-law and his wife were in town and we had a house full of people on more than one occasion. As much as I love my family, I am happy to regain the daily routine and quiet that returns when they depart along with the holidays. Back to my normal life. 

About 13% of the U.S. population will not be leaving their families for a quieter, more routine life following the holidays. An article in the New York Times last week reported on the rise in multifamily households, commonly referred to as 'doubling up'. The article cites recent Census Bureau data, which showed that the number of multifamily households jumped 11.7 percent from 2008 to 2010, reaching 15.5 million, or 13.2 percent of all households. It is the highest proportion of multifamily households since at least 1968.  

This should come as no surprise. Many people are losing their jobs or haven't been able to find one in awhile. In the absence of adequate financial resources, doubling up is a common way to keep a roof over head. While families may succeed at remaining housed, it is a housing strategy that comes with costs - including strained relationships and lack of independence. It is also a common precursor to homelessness.

I encourage you to read the story, 'Doubling up in Recession Strained Quarters' in the New York Times. In addition to the Census data, the article provides a look at what life is like living in a doubled up household. The accompanying slide show also tells a compelling story.

Childhood inequality: How far behind is too far?

This short film follows two 12 year-old boys (Jason, from Italy and Marcell, from the U.S.) as they describe what it's like to be among the most disadvantaged children in their society.

I came across a UNICEF report last week and was struck by how the boys in the accompanying video describe their lives. Their stories could serve as a checklist of the effects of poverty on children. Though this is not the usual housing research included in this blog, the link between poverty and housing problems is clear. Watch Marcell from the U.S. (about 4 minutes into the video) describe living on the edge of homelessness.

The UNICEF report begins with some compelling questions:

Whether in health, in education, or in material well-being, some children will always fall behind the average. The critical question is – how far behind? Is there a point beyond which falling behind is not inevitable but policy susceptible, not unavoidable but unacceptable, not inequality but inequity?

The study, published by UNICEF Innocenti Research Centre, found that children in many wealthy European nations and the United States suffer greater inequality than children in numerous industrialized nations. Report Card 9: The Children Left Behind ranks, for the first time, 24 countries in terms of equality in health, education and material well-being for their children. The report looks at a particular aspect of disparity – bottom-end inequality – and asks how far behind are rich nations allowing their most disadvantaged children to fall. 

A look into the numerous tables provided in the report shows that the United States is underachieving when it comes to the well-being of children. And, there are costs to this disparity. “The heaviest costs,” says the report authors, “are paid by the individual child. But the long list of problems also translates into significant costs for society as a whole. Unnecessary bottom-end inequality prepares a bill which is quickly presented to taxpayers in the form of increased strain on health and hospital services, on remedial schooling, on welfare….”

UNICEF (2010), ‘The Children Left Behind: A league table of inequality in child well-being in the world’s rich countries’, Innocenti Report Card 9, UNICEF Innocenti Research Centre, Florence.

The Report Card series is designed to monitor and compare the performance of economically advanced countries in securing the rights of their children.