Housing Sense

A child's perspective on homelessness

2011-06-06T04:22:00.000-07:00

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

2011-03-14T04:36:00.000-07:00

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

2011-02-10T05:14:00.000-08:00

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

2011-01-14T04:44:00.000-08:00

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

2011-01-06T09:04:00.000-08:00

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

2011-01-04T07:07:00.000-08:00

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?

2010-12-17T05:29:00.000-08:00

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.

Update on Minnesota's Homeownership Gap

2010-12-10T06:27:00.000-08:00

At 73.7%, Minnesota maintains the highest overall homeownership rate in the nation. When it comes to the rate of homeowners of color, Minnesota does not fare as well. The rate of homeownership among emerging markets is 43.3% - representing the 5th largest gap in homeownership rates in the nation.

Earlier this week at the EMHI Summit, Michael Grover (Federal Reserve Bank of Minneapolis) and John Patterson (Minnesota Housing) provided a summary of their research on trends in emerging market homeownership. Their analysis of American Community Survey and Home Mortgage Disclosure Act (HMDA) data identifies some apparent trends and offers a few unexpected findings.

The rate of emerging market homeownership declined for the first time since 2000. The rate of homeownership among emerging markets held relatively steady (at about 46.5%) during 2006-2008, which was surprising given the foreclosure crisis and what is known about its affect on minority homeowners. In 2009, the emerging market homeownership rate declined to 43.3%.
Some sub-groups of African Americans experienced particularly significant declines in their rates of homeownership. Those in the 45 to 54 age group saw a decline from 46% to 31% and those with a family income between $40,000 - $60,000 experienced a decline from a rate of 57% to 32%. Grover stated that more analysis is needed to make sense of these changes.
Minnesota Housing's affordable loan and entry cost assistance programs are helping emerging markets buyers. In 2009, nearly one-third of Minnesota Housing's loan originations were to emerging market buyers, compared to 10.9% in the overall market.
Subprime lending among emerging markets is on the decline. The rates of subprime lending (purchase and refinance) dropped from a high of over 40% in 2006 to well below 10% in 2009. Not much of a surprise but good news nonetheless.

The Emerging Markets Homeownership Initiative (EMHI) Summit is an annual event hosted by the Minnesota Home Ownership Center. This year's summit provided the opportunity to learn about the status of emerging market homeownership and some of the current issues facing emerging market homebuyers. Materials from this year's EMHI Summit (including the Grover and Patterson presentation) are available on the Center's EMHI webpage.

Funding proposals threaten loss of housing assistance for low-income renters

2010-12-01T05:33:00.000-08:00

The Center for Budget and Policy Priorities released a report earlier this week that outlines three possible scenarios for funding changes to the Housing Choice Voucher program ("Section 8"). Each scenario would result in a drastic reduction in the number of low-income families served by housing assistance.

The report states that while both the House of Representatives and the Senate Committee on Appropriations have approved separate bills to fund the voucher program with slight reductions in 2011, several proposals to reduce overall funding for non-defense discretionary programs threaten cuts in voucher funding that could cause tens of thousands of low-income families to lose rental assistance. If the process for finalizing funding for 2011 follows one of the three possible paths, the Housing Choice Voucher program would see a substantial loss in funding for vouchers that would affect anywhere from 38,000 to 475,000 low-income families. Depending on the funding scenario, the CBPP projects a loss between 532 and 6,536 vouchers in Minnesota.

All of this comes at a time of when more low-income families are in need of assistance and homelessness and poverty rates are on the rise. The Housing Choice Voucher program serves about 2 million low-income families. The families served by this program are among the most vulnerable in our society - children, the elderly and people with disabilities. Faced with the loss of housing assistance, these families have few, if any, options.

For more information, see the full report: Proposals to Cut Domestic Programs Threaten Loss of Housing Assistance for Thousands of Low-Income Families

Unaffordable housing linked to poor health

2010-11-16T07:35:00.000-08:00

Lead paint, mold and poor air quality are probably among the first things that come to mind when thinking about health-related housing problems. Consider adding rent and mortgage payments to this list. A study published last week in the American Journal of Preventive Medicine found that people who cannot afford their housing are more likely to suffer from poor health. The study, which uses telephone survey data from10,004 residents of Philadelphia, found that those living in unaffordable housing had an increased likelihood of poor self-ratings of health, hypertension, arthritis and cost-related healthcare and prescription non-adherence.

Renters were more likely to provide poor self-ratings of their health than homeowners; a finding that is likely driven by differences in household income. “People are dealing with a lot of competing costs in life and often have limited financial means in order to cover those costs,”said Craig Pollack, M.D., lead study author and an assistant professor at Johns Hopkins University School of Medicine. Nearly half of those surveyed reported difficulty paying housing costs.

The study's authors suggest that programs that target housing affordability for both renters and homeowners may be an important means for improving health.

Supporting Affordable Housing for Everyone

2010-11-03T05:29:00.000-07:00

Depending on your political stance, this day after the elections may have you feeling especially in- or out-of-sync with the rest of America. As someone who believes in affordable housing and improving conditions for the poor, I often feel that my values are at odds with most people. I was surprised then to read about the results of a recent Zogby poll about affordable housing. In this poll, commissioned by the National Association of Housing and Redevelopment Officials, more than two thirds of respondents (69%) said the issue of providing affordable housing in their community, both ownership and rental and including housing for low-income families, is important. A third overall (33%) said providing such affordable housing is very important. While most Americans believe affordable housing should be available to everyone, when it comes to the historical goal of a decent home and suitable living environment for every American family, two thirds (67%) say the nation is on the wrong track, while 16% say we are on the right track and 17% are not sure.

This poll has the cynic in me wondering why advancing the issue of affordable housing is so difficult when the majority of Americans believe it is important. The optimist in me sees great hope and opportunity. Next Monday, I will be joining hundreds of community members in Minnesota at the Homes for All 2010 conference to build a community platform to affirm the belief that all Minnesotans deserve a safe, affordable place to call home. I'll attend the conference knowing that nearly 70% of Americans feel the same way that I do about affordable housing.

Chancellor Manor: Housing as if people mattered

2010-10-18T04:42:00.000-07:00

Chancellor Manor Before and After Photos

There was a bright spot in a week filled with news about family homelessness in the Twin Cities. On Friday, Dakota County Community Development Agency, Community Housing Development Corporation and other stakeholders celebrated the award-winning makeover of once problem property Chancellor Manor in Burnsville. The property, which is the largest Project-Based Section 8 housing development in Dakota County, is home to nearly 500 residents including over 100 families with children and houses including a large immigrant population. Nearly 80% of the households have incomes at or below 30% of the area median income.

Constructed in 1972, the development was in need of makeover on several fronts. As do most 40-year-old properties, the buildings needed new roofs, siding, and windows. The property also suffered from design problems that created security and livability problems. And, the public image of the project suffered from a history of security problems and a high volume of police calls.

In 2000, City officials put together a plan for improvements that would increase the quality of life at Chancellor Manor. The plan called for physical improvements to site lighting, landscaping, signage and elimination of some exterior garages that posed a security threat. It also included recommendations for better management and enforcement of rules related to curfews and visitor behavior. Nearly a decade later, this plan was put into action.

The redevelopment of Chancellor Manor has been more than a physical makeover. A 2009 resident survey gathered input on the types of programs in which residents would like to participate. Because of this survey, the community building now hosts a variety of programs including ESL classes, Boy Scouts, early childhood parenting classes and after school tutoring. The property also has a new owner, Community Housing Development Corporation, with a record of accomplishment of owning successful, attractive, well-managed and well-maintained affordable housing.

The redevelopment of Chancellor Manor is a model of the affordable housing design. It is a redevelopment design that considered both physical improvements and the social environment. In a post-rehab survey, one resident said, “All of the new things have just made the quality of life better. Living feels happier.” That is what happens when you design housing with people in mind.

Minnesota Baseline Housing Measures

2010-10-13T04:38:00.000-07:00

Guest blogger: Dan Hylton, HousingLink

Recently, the McKnight Foundation released the Minnesota Baseline Housing Measures, a three-year study of affordable housing trends in Minnesota from 2007 through 2009. My organization, HousingLink, was privileged to have been commissioned to conduct this research that focuses primarily on work initiated and/or funded by the public and nonprofit sectors. The goal was to present a public-facing progress report, as well as develop a framework to guide future investments towards those which can make the greatest impact.

McKnight’s evaluation of affordable housing work centers on the overall vision of “increasing family stability and linking families to greater opportunity in our communities.” To quantify progress towards that objective, seven representative measures related to affordable housing and production, socio- and economic integration, and neighborhood stabilization were chosen, and a myriad of data sources were defined, tracked, and reported upon over the three-year period.

The report can be viewed at McKnight’s website, along with an introduction that provides a detailed explanation of the key themes that emerged from the three years of study. Here is a summary of the key themes:

Public and nonprofit entities have been facing a challenge on two fronts simultaneously; not only needing to address an affordable shortage (only exacerbated during times of economic crisis), but also in the need to respond to a crisis in foreclosure that is unlike anything our nation has ever seen.
These entities have responded, particularly in the area of foreclosure, where there has been an unprecedented level of coordination and partnership at various levels. While foreclosures are still at historic levels, MN state and local government agencies, along with a coalition of nonprofit partners, have attracted federal investment and developed a number of initiatives ranging from a statewide network of foreclosure counselors to an interagency community land bank.
Homelessness is on the rise and new affordable housing production cannot keep up with the challenge presented by a continuing high unemployment rate and increasing number of Minnesotans burdened by housing costs. In addition, the share of the burden falling on non-profit and government entities during this time (what we in the affordable housing call “the gap”) has grown. Federal investment, much of it in the form of the federal stimulus package, ramped up significantly in 2009; but that was a shorter-term solution, and the need for housing solutions to address those most in need is not going away.
In the midst of these overwhelming challenges to the community has been evidence of a strategic and holistic approach to affordable housing investment. In addition to trends toward the re-use and preservation of existing structures has been an increasing commitment of partners, from local to national levels, to housing investment made in the larger context of other factors that lead to sustainable, cost-efficient communities. This includes transportation, job access, “walkability,” and various elements related to socio-economic integration.

I find it interesting that the Housing Measures study was conducted over a three-year period that was arguably the most turbulent period in the past half-century. One might argue against the relevance of a three-year trend during a period of housing we’ve never seen before and may never see again. But a snapshot during this time affords us the opportunity to view organizations and agencies in the unique light of responding to an ever-changing and unpredictable environment. What is coming into focus is a re-thinking in how we develop communities and provide shelter for those most in need. It seems to me that times like this, with resources tight and no proven road map for success, are the impetus for just the sort of innovation and risk-taking that might provide new strategies for future solutions.

Dan Hylton is the Research Manager at HousingLink. HousingLink is a Minneapolis-based non-profit that serves as a crucial source for affordable housing-related data, information and resources.

Homeless youth: Vulnerability and victimization

2010-10-07T05:03:00.000-07:00

Last weekend, my teenage son lost track of time while at a neighborhood friend's house and missed his curfew. Intent on teaching him a lesson, I locked all the doors and went to bed. A few minutes later I was receiving a steady stream of text messages and phone calls interspersed between the ringing doorbell. I wanted to leave him out on our front step. Yet faced with a cold night and the knowledge that leaving a teenager to roam free at night is a bad idea, I finally let him in.

The idea of leaving a teenager out in the night made think of a study that I had read and was planning to cover this week. The study, Surviving Crime and Violence: Street Youth and Victimization in Toronto, includes interviews with 244 homeless youth in Toronto about life on the streets and their experiences with victimization. It underscores the vulnerabilities that young people face when they are homeless.

Here are a few of the studies findings:

Homeless youth are much more likely than housed youth to become victims of crime and violence. 76% of the youth in the study reported at least one instance of criminal victimization in the previous 12 months.
Homeless youth are unable to take appropriate measures to protect themselves. Street youth use a number of strategies to keep themselves safer. These strategies, which include moving regularly and altering their appearance to look tougher, do little to reduce risk.
Young homeless women in particular are much more likely to be victimized, and report high levels of sexual assault. 89.6% of the female street youth in the study reported being victims of crime, compared to 71.8% of young males. Over one-third of the young women reported being victims of sexual assault. Lesbian and bisexual females were the most victimized population among the street youth in the study.
The younger youth are when they leave home, the more vulnerable they are to criminal victimization. Those who left home at age 16 or younger experienced victimization at levels which exceeded those for youth who left home after 16.

The authors of the study point out that when young people are homeless they lack basic protective factors available to most young people - access to a home, supportive adults and friends, and places to seek refuge. They state:

Being homeless means constant exposure to dangerous people and places, a lack of safe housing and privacy and the need to engage in income generating activities associated with poverty. Homelessness, then, clearly compounds the social exclusion of otherwise marginalized young people, and this has much to do with their experience of criminal victimization.

The study is published by the Street Youth Legal Services Justice for Children and Youth. The authors of the study are Stephen Gaetz, Ph.D., York University, Bill O'Grady, Ph.D., University of Guelph, and Kristy Buccieri, York University.

I found this study at The Homeless Hub, a Canadian initiative to address the need for a single place to find homelessness information from across Canada. Launched in 2007, the Homeless Hub is a web-based research library and information center representing an innovative step forward in the use of technology to enhance knowledge mobilization and networking. It is a great resource, even if you aren't Canadian:)

Aging in place

2010-09-28T05:47:00.000-07:00

By 2030, the number of Minnesotans over age 65 is expected to more than double and older adults will comprise about one-fifth of our population (Minnesota Compass). How will this demographic change affect our housing choices? I'd like to think that I will be able to manage the 15 steps up to my second floor bedroom well into my 80s. Watching my 91 year-old grandmother struggle for many years in a split-level home, I know that this is wishful thinking. Though I am not alone in my wish to grow old in my own home. An AARP survey of New York residents over the age of 50 found that nearly 80% would prefer to receive long-term care in their own home. Yet, the homes many of us live in are not well-suited for the aging process. The Democrat and Chronicle, a Rochester, NY publication, is running a great series this week on aging in place. It's only Tuesday and the series of full of useful information, including a multimedia tool showing room-by-room changes that make aging in place easier. With a little work, I'm sure my first floor home office could become a master bedroom...

More homebuyers interested in community land trusts

2010-09-24T06:41:00.000-07:00

In the midst of news stories about the fear of homeownership and all the homes people are not buying comes a story about a sector that is seeing an increase in the number of home sales - community land trusts. Earlier this week, the Star Tribune ran a story about Two Rivers Community Land Trust, a non-profit organization that serves low- and moderate-income homebuyers in Washington County. In an average year, Two Rivers sells five to seven homes. This year, they are expecting to sell ten homes.

I am intrigued by the idea that community land trust home sales are increasing at a time when confidence in homeownership is wavering. Land trusts homes are a source of affordable home ownership, so maybe it should come as no surprise that people are seeking more sustainable options during bad economic times. And, the land trust organization sticks with homebuyers after the sale. This relationship may give apprehensive homebuyers some reassurance that they are not going it alone. Yet, community land trusts also a shared equity model, which limits the amount of appreciation owners get at resale. When homes are sold, the buyer and community land trust share the appreciation of the home, which allows the homes to maintain affordability over time.

I'd like to think that this increase signals a change in what we value about homeownership. A shift from thinking of it as a home rather than a short-term investment. Perhaps Cory Jelinek, the land trust owner profiled in the Star Tribune story, says it all. The best thing about owning the house is just that: It's hers.

More information about community land trusts:

CLTs: A wise investment for Minnesota

Minnesota Community Land Trust Coalition

National Community Land Trust Network

Redefining what 'home' means

2010-09-16T05:55:00.000-07:00

The housing crisis has prompted a great deal of speculation over how we think about the homes we live in, the homes we should live in and the homes we will desire in the future. Five urban planners and housing market analysts explore this topic in a New York Times' "Room for Debate' discussion, Redefining What 'Home' Means. The guest contributors explore a range of thought-provoking questions - Where should housing be located? Is this the end of the suburbs, or at the very least, the end of the McMansion?

The discussion was sparked by an assertion from columnist David Brooks that social norms, which favored big houses with 20-foot ceilings, took a dive along with the economy.

But that economy went poof, and social norms have since changed. The oversized now looks slightly ridiculous. Values have changed as well.

As noted in the introduction of the "Redefining" series, some experts think Brooks' assessment is spot-on, while others aren't so sure.

Some urban planners and housing market analysts say that demographic trends back up that thesis: the housing landscape that emerges from the recession, they say, will be driven not only by older empty nesters who don't like to drive at night anymore but also by Generation Y, the millennials who grew up in supersized houses in far-flung suburbs and who want to live differently, at least as long as they are childless. But historians and other experts on sprawl are not so sure.

What do you think? Has the housing crisis redefined our housing norms and values? Join the NYT's discussion or start a new one here.

Affordable housing, families and neighborhoods

2010-09-08T06:36:00.000-07:00

A study on the effects of two New York Low-Income Housing Tax Credit (LIHTC) projects supports what housing advocates have known for some time - affordable rents free up income for other household expenses like food, health insurance and child care. Yet, the benefits of tax credit properties extend beyond the alleviation of housing cost burden by raising property values and contributing to the vitality of local retailers.

The New York offices of Enterprise Community Partners and LISC, examined two LIHTC circa 2000 housing developments in the Bronx. Most residents were employed, earning an average of one-third the area median income. The projects' tenants paid rent that was one-third lower than market-rate rents in the neighborhood. Findings from this research include:

Families paying affordable rents averaging $290 per month less than market rates increased their discretionary income by 77%, putting them in a position to pay for other household expenses or put away money in savings.
A cluster of developments in a commercial area boosted estimated local purchasing power by about 5%, contributing to the retail vitality of the neighborhood and the availability of goods and services.
The two projects produced a significant increase in property values.
Despite affordable rents and high quality housing, residents were not always satisfied with all aspects of their living situation. A small group of residents taking part in a group interview spoke of dissatisfaction with the behavior of other residents and crime problems in the neighborhood.

This study suggests that though affordable housing development alone does not solve all problems, it can alleviate much of the financial stress for low-income families (and likely increases housing stability) and increase neighborhood quality.

For more information and research about the LIHTC visit Novogradac & Company's About the LIHTC and the LIHTC Research Center.

Rent or own, not rent vs. own

2010-08-23T06:11:00.000-07:00

Last week, a number of news stories examined the future of homeownership - stories fueled by last week's conference on the future of Fannie Mae and Freddie Mac. NPR's One Couple's New American Dream: Rent, Don't Buy, is one such story. It chronicles a couple's recent homeowner to renter experience. I listened to this story with mixed feelings. Rental housing is often viewed as a second-class form of housing. Something you do when you can't own a home. Having stories in the news that highlight the benefits of renting, including flexibility, convenience and controlled housing costs, is a good thing. Yet, with all of the bad news about foreclosures, it is easy to forget that when done the right way, homeownership is still a good option for many families.

As we continue to learn the lessons from this housing crisis, my hope is that policies will be realigned to support a continuum of affordable housing choices that includes both rental housing and homeownership.

Current news stories and reports on this topic:

Post-Mortgage Meltdown, Where Do We Go Now? from NPR

Homeownership Done Right from the Center for American Progress

Nice housing, poor neighborhood: Life after distressed public housing

2010-08-13T07:33:00.000-07:00

The Urban Institute published a series of briefs summarizing research on the outcomes for families who were relocated out of the distressed Madden/Wells public housing community in Chicago. The Urban Institute's research suggests "it has been easier to improve public housing residents’ quality of life than to undo the damage that years of living in a dangerous, stressful environment has done to their health." (Former Madden/Wells residents have a mortality rate that is nearly three times that of the general population.)

The research also serves as a reminder that policies aimed to deconcentrate the poor do not always achieve their intended results. While the vast majority of former Madden/Wells residents describe the condition of their current housing as good or excellent condition, most continue to reside in poor, predominantly African-American communities with limited economic and educational opportunities.

Key findings from the Urban Institute study:

84% of respondents say their new homes are in excellent or good condition, regardless of whether they moved to mixed-income communities or revitalized public housing.
The families now live in considerably lower-crime neighborhoods and feel much safer than they did at Madden/Wells; still, 23% say that drugs and gangs remain a major problem.
26% of the families live in low-poverty communities (poverty rate below 15%), but 54% still live in neighborhoods with poverty rates of 25% or higher.
54 % of respondents have an illness requiring ongoing care and 52% have two or more major health conditions.
Although residents report less anxiety than when they lived in Madden/Wells, 17% report poor overall mental health and 8% have had major depressive episodes.

73% of the working-age respondents continue to live below the poverty level, including 54 percent of those working.
59% of respondents worry they might run out of food and 22% cut or skip meals.

The relocation of Madden/Wells residents was part of the Chicago Housing Authority's Plan for Transformation; an ambitious effort to replace the agency’s stock of distressed public housing developments with mixed-income communities and extensively rehabbed buildings. The ultimate goal of the Plan for Transformation was to demonstrate that it was possible to convert distressed public housing into healthy communities that would provide residents with opportunities for a better life.

To view photos documenting the CHA Plan for Transformation, visit David Schalliol's photo gallery.

Homeless: The Motel Kids of Orange County

2010-08-05T06:09:00.000-07:00

Trailer

Last week, HBO began airing an eye-opening documentary about families living in motels within walking distance of Disneyland. The program, Homeless: The Motel Kids of Orange County, follows several families and examines motel living from the perspective of young children. These families' stories are echoed by many across the country - stories that are marked by traumatic life events, lack of livable wage jobs and housing costs that are out of reach for the working poor. The motels are dreary, crowded and expensive ($760/month). One of the bright spots in this documentary is the Project Hope School, a year-round school that serves about 60 homeless students in multi-grade classrooms.

If you don't subscribe to HBO and are unable to find a friend who does, there is a documentary synopsis that highlights the stories of the children and their families. The interview with the film's director, Alexandra Pelosi, is also interesting.

Homelessness: Teens in the wild

2010-07-30T05:58:00.000-07:00

Earlier this week, my teenage son set out on a backpacking trip in the Gallatin National Forest in Montana. Having been raised by parents who prefer to vacation in large urban areas rather than the great outdoors, I've spent some time this week worrying about whether he was ready for the challenge. My worries escalated when I learned that the recent bear attack was not far from where his group is hiking. Lacking the details of his trip plan, along with the reminder that there are predator bears out there in the forest, made for a couple of hours of worrying. However, if all goes as planned, my son will return home this weekend and resume his rather comfortable life that includes parents, a roof over his head and doors to keep the wildlife out.

This isn't the case for many teens and young adults. The most recent Wilder Homeless Survey found that there were nearly 1300 homeless teens and young adults living in Minnesota. Young adults (age 18-21) experienced the largest percent increase (57%), with numbers increasing from 661 in 2006 to 1,041 in 2009. During this same time, unaccompanied minors increased by 10%.

Homeless youth often come from troubled homes only to risk new dangers while living on the streets. A recent study by the Institute of Social and Economic Research at the University of Alaska, Anchorage found that about one in three homeless youth had been in foster care at some point in their lives and many faced multiple barriers including mental illness, teen pregnancy, unemployment, lack of education, and legal troubles. In their Homeless Youth fact sheet, the National Coalition for the Homeless reports that "many homeless adolescents find that exchanging sex for food, clothing, and shelter is their only chance of survival on the streets. In turn, homeless youth are at a greater risk of contracting AIDS or HIV-related illnesses."

My son's camping trip serves as a reminder to me that while teens and young adults are very capable of taking care of themselves, they still need support, care and protection from the dangers that lurk in their world.

Unaffordable housing

2010-07-21T05:50:00.000-07:00

If you feel like your housing costs are taking up too much of your paycheck, you are not alone. According to data released yesterday by the Minnesota Housing Partnership, housing costs continue to take up a large portion of household income and are creating economic hardship for many Minnesota families. In Hennepin County, half of all renters and a third of all homeowners were spending more than 30% of their income on housing costs. For low-income families, the numbers are even more profound, with 86.2% of renters and 89.8% of the homeowners exceeding the 30% affordability threshold. To see how your county is faring, check out MHP's County Profiles 2010.

Some summary findings from the County Profiles data:

From 2001–2009, 4 in 5 Minnesota counties experienced increases in home sale prices for non-foreclosures, after adjusting for inflation.
Home sale prices rose by 40% or more in Becker, Beltrami, Clearwater, Lake of the Woods and Swift Counties from 2001 to 2009. Hennepin and Ramsey County prices increased by about 9%, while home sale prices in other metro area counties changed little in this time period. Prices fell most dramatically in Red Lake, Yellow Medicine, and Isanti counties.
5 in 6 Minnesota counties experienced an increase in rental costs from 2001 to 2010, after adjusting for inflation. Rental cost increases were more pronounced outside of the Twin Cities area.

About the County Profiles:

MHP’s County Profiles pull together housing data specific to each of Minnesota’s 87 counties—including changes in home prices, rental costs, foreclosures, homelessness, and unemployment. The housing profiles also examine housing affordability for five occupations. These profiles paint a picture of chronic housing need: in a great many areas, certain occupations typically cannot afford the costs of either renting or owning a home.

Revisiting the mortgage interest deduction

2010-07-07T07:02:00.000-07:00

In March, guest blogger Michael Dahl wrote about the inherent unfairness of the mortgage interest deduction. At the time, I thought he was pretty brave to bring up the issue. The mortgage interest deduction is sacred in our home ownership society. Yet these are tough times and no tax expenditure, even the mortgage interest deduction, is off limits.

A new report by the Urban and Brookings Institutes examines the impact of changes to the MID by income, race, and location of homeowners. The authors estimate the effects of eliminating the deduction and of replacing it with four options that include different credit formulas. Here is what they found:

Eliminating the MID would affect high-income taxpayers more than for lower income taxpayers. Not surprising, since they are the primary beneficiaries of the MID. However, the very highest income taxpayers, would experience a relatively small loss in income because their mortgage costs as a share of income are lower than for other groups.

Replacing the MID with one of the four tax credit options examined would benefit taxpayers in the bottom four quintiles of the income distribution and hurt taxpayers in the top quintile.

Replacing the MID with either of the non-refundable credit options would raise average taxes among Asians, lower average taxes for blacks and Hispanics, and leave average taxes on whites about the same.

Eliminating the MID would raise taxes more for suburban residents than for those in central cities or outside metropolitan areas.

Many of you may be thinking that changing the mortgage interest deduction in the midst of a housing crisis is a bad idea. This might be the case if we needed more higher income households to move into home ownership, but as the authors of this study point out:

...the current MID is not a cost-effective tool for increasing homeownership because its main beneficiaries are not individuals on the margin between renting and owning.

The mortgage interest deduction was not designed as a tool to encourage home ownership. If we are looking for incentives to increase home ownership, then we need policies that benefit those on the margin between renting and owning.

Housing Matters: Exploring the housing continuum

2010-06-24T04:52:00.000-07:00

If you are a regular reader of this blog, you already know that housing is an important community asset. You know that housing matters. But what kind of housing matters to you? Most of us who are concerned about affordable housing have a niche. We tend to focus on one aspect, whether it be home ownership, rental housing, or housing for the homeless. For people outside of the housing field, housing comes in two forms - rental and home ownership. Yet, the solution to our communities' affordable housing problems requires a more holistic approach that focuses on a continuum of housing options.

I have hope that a new resource offered by Twin Cities Habitat for Humanity will advance this discussion. Their new Housing Matters! website includes a tool that explores the continuum of housing by asking What Does the Solution Look Like?. In addition to offering a fun learning activity, it is a great source of information on the continuum of housing choices (it includes shelters and supportive housing) needed for a healthy housing market.

I applaud Twin Cities Habitat for Humanity for their efforts to educate the public about the need for other forms of housing. As an organization that focuses on home ownership, it would be easy to just stick within their niche. The best thinking about affordable housing will take place when we all start thinking beyond our niche and begin looking at the need for, and relationships between, various housing options.

In coming weeks, I will highlight other Housing Matters! resources. In the meantime, I encourage you to check it out.