Blog Archives

Holiday Frustrations

As I sit in our warm and comfortable office this holiday season, I don’t feel like celebrating. I’m angry and frustrated – frustrated that in a time where people are struggling, our government seems to be looking at how it can be meaner to the growing number of people in need, not more compassionate. Just look at what we’ve seen in the public policy arena in recent weeks:

First, the City Council of the District of Columbia considered legislation that would require homeless persons to provide proof of residency before being allowed to access a shelter. And the law’s backers, in promoting their bill, declared explicitly that it was intended to prevent homeless people from flooding DC shelters during hypothermia season, when it is too cold to sleep and live outdoors. This bill passed on its first reading, with jingoist councilmembers demanding that DC resources be reserved for DC residents, and ignoring the reality that low income people move constantly between the District, Maryland, and Virginia. Given the first vote, it won’t be surprising if the bill is approved a second time and signed into law. If it is, we can expect more people to die on our city’s streets this winter.

And Washington isn’t the only city deciding to punish poor people in tough times. Word broke last week that the City of New York is conducting an experiment to test its homelessness prevention program.  What’s the experiment? They’re accepting some eligible applicants and denying others, when money is available, just to examine whether helping people prevent homelessness really works. How dare we study people in need as if they were sub-human lab rats? What re-examination of the obvious is next? Next time it rains should we give ten people umbrellas and let ten go without, and see who gets wetter? Perhaps, as many commenters recommended on the New York Times website, we should divide up the wealthy Americans about to receive a great big tax cut. We’ll give half the cut and see whether they create more jobs than the other half, who will be taxed at higher rates so they can serve as a control group.

Speaking of taxes, before President Obama and Congressional Republicans struck a deal last week, tax provisions to benefit corporations had been linked all year with a billion dollars for the National Housing Trust Fund – designed to produce new units of badly needed affordable housing. But when the final deal was struck – the tax changes stayed, while the housing money was nowhere to be found. It will be quite a holiday – as long as you work for a bank that’s foreclosing on homeowners, and aren’t a low wage employee struggling to maintain a job and a place to live.

So what’s most frustrating about this? Perhaps it’s the feeling that our public officials just don’t seem troubled by all of this. Except maybe for one – Vermont Senator Bernie Sanders. In an extraordinary display, Senator Sanders took the Senate floor last Friday and held it for more than eight hours.  He spoke passionately about the struggles of working families and other low income Americans, and appealed to our better angels during this holiday season. Thank you, Senator Sanders, for giving a voice to everything I’ve been thinking. I just hope President Obama, Congressional leaders, and local government officials were listening. If they were, perhaps we can look forward to a positive 2011 policy agenda that offers compassionate and fair solutions to difficult social problems.

-Jeremy Rosen, Policy Director

Our Work at Home is Just Beginning

“While our work in Geneva is done, our work here at home is just beginning.”

Eric Tars, human rights program director at the National Law Center on Homelessness & Poverty has just returned to the U.S. from the United Nations Universal Periodic Review. He brings back news of three key outcomes of the process:
1. Thousands of American advocates have now been better educated in human rights standards – which they can use to help make human rights a reality at home.
2. Dozens of government officials, many of them in high positions in the federal government, have been educated as well. They now have an increased awareness of human rights standards and understand they must play a role in implementation.
3. There has been a substantial change in dialogue around human rights in the United States through this process.

The next review won’t occur for another four years. In the meantime, we’ll be working hard to hold the government accountable to the Human Rights Council’s recommendations, so that the human right to housing can be realized in the United States.

Were you Evicted by a Robo-Signer?

No, mortgage companies aren’t embracing futuristic robot technology.  Instead, the public is just beginning to learn about a time-honored industry practice that just might invalidate tens of thousands of foreclosures around the country.

Last Wednesday, a company called Ally Financial quietly ordered its agents in 23 states to halt any sales, evictions, cash-for-keys deals, and other foreclosure transactions.  According to a two-page memo obtained by Bloomberg News, the company was considering “corrective action in connection with some foreclosures” in the affected states, which include foreclosure hotspots like Florida and Ohio.

Beneath Ally’s smooth technical language lies a troubling revelation with potentially disastrous implications for the massive industry that has grown up around the foreclosure crisis.  According to the Washington Post, the Wall Street Journal, and others, Ally used to be GMAC Mortgage, an entity that received three federal bailouts totaling more than $17 billion since 2008.  After rebranding as Ally, Inc., the company began servicing mortgages for some of the nation’s largest lenders.  In the wake of the housing crash, a great deal of Ally’s business involves executing foreclosures—in other words, verifying and signing the affidavits that judges rely on to determine whether a lender can seize a home.  And as the market continues to spiral out of control, homeowners’ losses are Ally’s gain: the more foreclosures out there to process, the more fees it and other companies can rack up.  And now it looks like good old-fashioned greed may call tens of thousands of foreclosures into question. Read more »

Who should lead?

An important aspect of Wall Street reform is the creation of a new Consumer Financial Protection Bureau, which will take charge of nearly all federal consumer protection regulation – including regulation of mortgages, student loans, credit cards, and other financial products.  The new Bureau might even be able to help us spread the word about the Protecting Tenants at Foreclosure Act (PTFA).

Why does the Bureau matter to people concerned about ending homelessness?  Well, what helped kick-start the financial crisis?  The push for universal homeownership, which led to the issuance of risky subprime mortgages.  And once home values plunged, many Americans found themselves held prisoner by crippling consumer debt.  The new Bureau can’t make those debts disappear, but it will be able to write fair rules that help give low income families the chance to stay financially stable, and avoid homelessness.

President Obama is now faced with a decision on who to appoint as the Bureau’s new director.  It should be Harvard Law Professor Elizabeth Warren, who is currently heading up the Congressional Oversight Panel tasked with overseeing implementation of TARP.  In that role, she has been a passionate advocate for helping homeowners avoid foreclosure, unafraid to criticize the actions of an Administration that she supports as too little, too late.  The new Bureau was Warren’s idea, and she worked closely on the legislation with consumer and affordable housing groups.  She knows what PTFA is, and why it’s important.  And finally, she’s got the Jon Stewart seal of approval.

- Jeremy Rosen, Policy Director

Staying Home

It’s no secret that the foreclosure crisis has had a tremendous impact on the United States. In 2008, state and local homeless groups reported a 61 percent rise in homelessness since the beginning of the foreclosure crisis. But what may surprise you is that 40 percent of families facing foreclosure-related eviction are not owners, but renters.  Worse, 7 million households living on extremely low incomes are presently at risk of foreclosure.

Thanks in part to a report issued by the Law Center and the National Low Income Housing Coalition at the beginning of 2009, the federal government and a number of states have taken action.  The Protecting Tenants at Foreclosure Act (PTFA) was signed into law by President Obama in May of last year, and it affords tenants unprecedented federal protections – including the right to 90-days notice prior to eviction or, in many cases, the right to stay in their home until the end of their lease.

But as the law will eventually expire and does not negate state law when it offers renters better protections, it’s important that steps be taken at the state level too.  We’re happy to report progress on that front!  Since the release of our 2009 report, 16 states have enacted new renters’ rights laws, and 21 states have proposed legislation pending.  This helps fill gaps in PTFA’s protections, and assures security for renters in the long-term, in the event that PTFA is not renewed past its 2012 sunset.

There’s still a lot to be done, though.  As you’ll discover in our new report, Staying Home: The Rights of Renters Living in Foreclosed Properties, renters’ rights are being violated across the country.  New property owners (often banks) are many times failing to inform or misleading renters about their rights, or even illegally evicting them.  Federal and state regulators must get more involved to curb these trends, exercising their oversight of banks and, when appropriate, litigating to ensure compliance with the law.

To read our new report, click here. Please circulate it widely.

-Andy Beres, Grant Writer/Communications Assistant

Photo credit: respres

Help Prevent Homelessness

Despite reports that the U.S. economy is improving, the foreclosure rate is still rising. So is homelessness.

The latest data from RealtyTrac showed record foreclosures in the first quarter of 2010.  932,234 properties – one in every 138 American housing units – were hit with default notices, scheduled auctions or bank repossessions during the three months ending in March. This is a 16 percent increase from the same time period a year ago.

This month, through our online networks, we’re trying to raise at least $5,000 to support our efforts to prevent homelessness for renters whose homes are being foreclosed.

Please consider donating through the firstgiving widget to the right of your screen or through PayPal.  And know that your donation makes a HUGE difference in the lives of people experiencing poverty & homelessness in America.

The Launch

Welcome to the National Law Center on Homelessness & Poverty’s blog. We’re excited to use this new platform to tell you more about how and why the Law Center is working to end homelessness in America.

The current U.S. foreclosure and economic crises are fueling dramatic surges in homelessness. Before the crises, up to 3.5 million Americans experienced homelessness each year. Now, that number is projected to rise by another 2 million. And these figures include only those who are literally homeless–not those doubled up or on the brink of literal homelessness.

We can, and must, do something to ensure that everyone in America has decent, affordable housing. The Law Center is deeply committed to that goal.

If you’re just learning about the Law Center, visit our website to read more.

If you’d like to start receiving our monthly e-newsletter, send your contact information to chwang@nlchp.org.

Have questions? Feel free to contact us at nlchp@nlchp.org or call us at 202-638-2535.