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.