Homeless in Columbus

There was an odd juxtaposition of articles in Monday's Columbus Dispatch (December 31, 2018).

1) Immigrant who is a janitress bought and fixed up a run down home in Linden area and is helping to revitalize the area (photo--really cute home, she's on the porch), "Affordable housing key to revitalized Linden." Like other home owners she is happy to see home values increasing as a result of her determination and hard work.

2) Terrible homeless problem in Columbus, higher than during the recession and higher than the other parts of Ohio, and there is a need for the new law (January 2, 2019) to prevent evictions or there will be more homelessness. And the writer looks to Homeport to continue providing more affordable housing (government money). "Resolved for 2019: It's time to decrease local homelessness." https://www.dispatch.com/opinion/20181231/editorial-resolved-for-2019-its-time-to-decrease-local-homelessness

I wrote about this "problem" over a decade ago at my blog, pointing out that Columbus Housing Partnership over 20 years (now 30) had millions and millions in government grants to "solve the housing problem" in Columbus. It created Homeport in 2004. Based on the just the money, there should be no low income person in Columbus without housing. Except. https://collectingmythoughts.blogspot.com/2008/11/cityliving-network-and-homeport-of.html

Homelessness is just not about affordable housing. It's alcoholism, drug use, poor living skills, chronic illnesses, bad family relationships, mental illness, and the nanny state.

The need for affordable housing in Columbus, Ohio

I just read yet another article in Columbus Business First “Stop being scared of people who need affordable housing”  on the need for low income housing in Columbus—this time to satisfy the need for workers by Columbus businesses and those businesses which might relocate here if there was a solid pool of workers. AFFORDABLE in government housing speak means money has been transferred from tax-payer abc to entitlement receiver xyz, but many in that chain are not poor--they are staffers in government backed programs and agencies (like HUD, USDA, HDAP, OHFA COHHIO) earning good salaries, with excellent benefits and job security, which is why the programs must be continuously expanded.  I looked through the list of agencies, non-profits and city employees who attended the meeting.  Then I looked back through my blog to 2008, when I’d written on this topic. Ten years ago the plea was that good housing transforms lives. And I said:

“Housing doesn’t change lives. Marriage does. Parenthood does. Faith in God does. Employment does. Education can. Art and music can. Pets might. Leisure activities don't. Substance abuse will definitely change your life downward. But not housing. Ask any landlord who turned the keys over to a careless, slovenly tenant. Housing doesn’t create safe neighborhoods; it doesn’t get transportation issues funded; it doesn’t improve health; it doesn’t pass bond issues. In partnership with the private sector, this kind of housing for low income people creates jobs and profits for the construction companies.”

Our first home was a duplex, purchased for $14,000 in 1962.  Our renters paid the mortgage, we borrowed from my father the down payment.  Then in 1964 we bought a second house in a better neighborhood and rented both units.  That paid for both houses and a car payment. If we hadn’t bought that first run-down, sweat equity duplex in a neighborhood on the way down, we wouldn’t be where we are today.  But being a landlord was the pits.  I wouldn’t wish it on any couple in their early 20s.  

My parents’ first home was a small, two bedroom with a down payment from my father’s grandmother.  My parents and the babies slept in one bedroom and 2 men rented the other bedroom, and also boarded there. I think one of my aunts slept on the living room couch.   But with 4 children, they sold it and bought a larger 2 bedroom one street over (3 girls in one bedroom and my baby brother in my parents’ room) and didn’t need boarders to pay the mortgage.  No grants, subsidies, tax credits, just a loan from a family member and a mortgage based only the husband’s income (even in the early 60s, a wife’s income wasn’t taken into consideration on what a mortgage applicant could afford).

According to my 2008 blog entry, The Columbus Housing Partnership (dba Homeport) was 20 years old then and had  developed over 4,000 affordable homes which had served over 23,000 people.  So CHP is now 30 years old—should there be any lack of affordable housing in Columbus?  When the original owners 30 years ago, moved out and up, shouldn’t new home owners have taken their place? The original owners would now be grandparents able to help out family members, right?  Other agencies mentioned in the Business First article were Coalition on Homelessness and Housing in Ohio (which was founded in 1974),  Affordable Housing Alliance of Central Ohio, Affordable Housing Trust for Columbus and Franklin County, and Columbus Department of Development.

I’ve seen real estate ads for Columbus that are definitely affordable, and closer to public transportation than planting a development in the suburbs, but they are all in neighborhoods that need good city support—police, fire, schools, small shopping areas, decent utilities, etc. and none will qualify for various fancy loan vehicles.  I think they are looking in all the wrong places for affordable housing.

More of what got us to our financial meltdown in housing

Have you noticed that the GSEs Fannie and Freddie are front and center of the stimulus?

"Before Wall Street screamed bloody murder at the opening of 2008, President Bush was resisting pressure to lift the financial limit on the mortgages Fannie Mae and Freddie Mac purchase and securitize. The Office of Federal Housing Enterprise Oversight (OFHEO), the GSEs’ wimpy watchdog, also objected to lifting the limit and continues to do so post stimulus agreement. The present GSE limit is $417,000. The stimulus would snap the cap to $625,500, and to $729,750 in extra pricey housing markets. Allowing Fannie and Freddie to purchase and securitize jumbo mortgages, the oversize loans MBS investors now shun as too risky. Link

How we got here--a quick review



HT Taxmanblog

The non-profits and housing agencies swing into high gear

The same agencies who decided that low income families and middle class minorities needed to build wealth through home ownership (and if you ever owned a home you know this like floating a boat with an unplugged hole in the bottom), are back at the money spigot.

These are the agencies who

1. helped the clients apply to the state housing trust fund for the down payment,
   
2. who took them to the bank or loan company for money guaranteed by the federal government for the sub-prime mortgage,
   
3. who then took fees to keep their own staff paid,
   
4. who provided them with a one hour workshop on home ownership in their native language,
   
5. who found them rehabbed or low end homes in “at risk” or “weak market” neighborhoods which this agency first purchased and rehabbed,

these same agencies are now asking for more federal and state money to run foreclosure programs and assistance for the very people they helped put in their homes; or money to bulldoze, board up or acquire them for future rehabbing (and start it all over). And if they can’t stop the “disinvestment and decline”, they propose to use the money to buy the home, and lease it back. In other words, put low income people into rentals, which might have been a better plan to begin with. Link to “Columbus and Franklin County Foreclosure Working Group, Prevention and Recovery Advisory Plan, October 2008”

There may be a combination of reasons for a person or family to be “low income.” I know it sounds mean to suggest that there are differences between rich people and poor people and the people in between, but someone needs to address the elephant in the living room if I may borrow a phrase from AA. There are some things a nice home just can't be expected to fix.

Low job skills,

low education level,

low intelligence,

poor interpersonal skills,

poor communication skills either as a native speaker of English, or English as a second language--speaking and writing,

high family disruption and dysfunction--divorced or single parent trying to compete with a 2 parent family,

high alcohol and drug use, contributing to failed drug tests, DUI, short term prison stays,

high mobility, frequent moves, grass is always greener syndrome

low mobility, refuses to leave an area of bad employment opportunities

poor health, disability

age--either too young, or too old to be useful to an employer

small ambition, not competitive, won't take in-house training or transfers

lazy or incompetent.

CityLiving Network and Homeport of Columbus

Here’s another one.

With this much money and effort over 20 years, how can there be a single person or family in the Columbus, Ohio, area who doesn’t have adequate, safe, dry shelter? The reason is federally or state supported housing programs are not just about housing, they are about changing lives. And what's this? October 24, 2008 grant for Homeport. Haven't we just been through a bailout?

Millions of dollars in tax credits will be steered towards the redevelopment of low-income communities in Ohio and Columbus thanks to a U.S. Treasury Department award.

Dear reader--housing doesn’t change lives. Marriage does. Parenthood does. Faith in God does. Employment does. Education can. Art and music can. Pets might. Leisure activities don't. Substance abuse will definitely change your life downward. But not housing. Ask any landlord who turned the keys over to a careless, slovenly tenant. Housing doesn’t create safe neighborhoods; it doesn’t get transportation issues funded; it doesn’t improve health; it doesn’t pass bond issues. In partnership with the private sector, this kind of housing for low income people creates jobs and profits for . . .the construction companies.

"Columbus Housing Partnership (CHP) is a private, nonprofit organization [when you see this term linked with housing, it means government grants fund it, but it hides how many workers are dependent on the government for their income] founded in the belief that a decent and affordable home is the cornerstone of family life and a healthy community. For over twenty years, CHP has provided quality, affordable housing and related services to low to moderate income households in Columbus and the surrounding area. CHP has developed over 4,000 affordable homes which have served over 23,000 people.

To further that belief and in 2004, CHP created Homeport the sales division, to build communities for sale that provide buyers with the blend of urban sophistication and suburban style. CHP’s Homeport division’s commitment is to provide quality homes at an affordable price. Our specialty is helping first-time homebuyers get the most value for their hard-earned money. Homeport partners with you to help you realize your dream of homeownership.”

North of Broad (NOBO)- North of Broad is a development in the King-Lincoln District, developed by Homeport and in collaboration with the City of Columbus and Trevor Custom Homes.

The Crossing at Joyce - Homeport has partnered with Rockford Homes to offer buyers a new suburban style home with an urban location at the intersection of Joyce Ave. and 24th Ave. Buyers can select from several models to build.

Restore Columbus is a comprehensive rehabilitation program to renovate existing homes throughout the City of Columbus and in partnership with the City's Home Again initiative.

Home Again was created in February, 2006 in an effort to eradicate the 3,200 vacant homes in the Columbus. Mayor Coleman has committed $25 million over 6 years with a goal of putting 1,000 vacant properties back into productive use by 2012.
"In 2006, Home Again was responsible for initiating 105 roof repair cases; 96 completed at a cost of $1,355,833.* The City demolished 27 properties at a cost of $117,112 and another 52 were demolished by private owners." Link

*Does that roof repair of 96 homes sound a tad high? That's over $14,000 a piece. Advent Lutheran Church at Tremont and Kenny Rds. in Upper Arlington had to have it's entire roof replaced after Hurricane Ike--and it cost $5,200--and it's very large with peaks and elevations.