Puzzled

If I have a gun and steal $1 from you, I can look forward to years in prison.

But if I steal your house by faking some paperwork, the punishment is...what?  I'm puzzled.

Go to Rortybomb for the gory details. 

Things aren't this bad in Wisconsin, but take a look at what counties have been hit the hardest.

Update: Atrios is asking the same thing.

Milwaukee Housing Trust Fund accomplishments

2010 HTF Accomplishments Flyer
Originally uploaded by Brianind1

This flyer is being distributed listing the accomplishments to date of the City of Milwaukee Housing Trust Fund.

Poverty increases in Milwaukee

A Journal-Sentinel article reports the rise of poverty in the City of Milwaukee, making it the fourth poorest city in the nation.  Ignoring the partisan warfare in the comments section, I'd like to point out:

• Milwaukee's poverty rate reached 27% with African-American unemployment in some parts of the city possibly being as high as 60%-70%.
• Poverty rates in the suburbs were: Waukesha County (4.8%), Ozaukee (5.3%) and Washington (5.4%).

To me this confirms that most of the emerging job markets are in the suburban counties (more on that later) and combine that with a poor public transportation system that makes it difficult to travel to the suburbs, there's a real disconnection between people and jobs. Then there's the housing policies that makes it difficult for people to move to the suburbs into housing they can afford.

It doesn't help that communities compete for businesses and try to draw them from the City of Milwaukee with tax incentives.  We should be growing our businesses and trying to draw new employers from outside the region instead of cannibalizing what we do have. Wasn't that the whole idea of The Milwaukee 7?

Priorities!

Kudos to the Waukesha County Finance Committee for ensuring that there will be park and open space in the future.


In the meantime...Waukesha County homelessness agencies enter their third year of searching for a permanent site for a drop-in shelter for the homeless during the winter months.


Priorities!

Hard to Believe This Still Happens

Let's be clear.  The Fair Housing Act isn't some Johnny-come-lately.  It's been around since 1968, and it was amended to include minimunm accessibility requirements for multi-family housing starting with buildings ready for first occupancy after March 13, 1991.  By my math, that's almost 20 years with accessibility requirements in place.

So, then, why does stuff like this continue to happen? 

Brookfield Senior Housing Need

I found this article on Brookfield's senior housing and assisted living facilities by Tom Daykin interesting.  It refers to an article on Brookfield NOW by Aaron Martin.  It is true that as baby boomers age, there is an increasing demand for housing serving older people.

However, I was recently at a forum and spoke to someone about this issue.  I was surprised to learn that only 5% of the aging population actually live in those buildings targeted for older residents.  It is much preferred that people stay at home as it is much cheaper for them and services are less expensive in-home than at specialized facilities.  The question then is, can the homes be modified to meet their increasing accessibility needs?  Often it can be, so most will likely remain in their homes.

I'd like to point to the statistics for the graying population in Brookfield and Elm Grove.  It could be because the two communities are such a great place to live that people stay longer and eventually age in place.  Or it could be that with the housing costs, it's more likely that people with more earning power (in other words, older people) can afford to move into the community where they soon reach their 60s. 

Regardless, when nearly one in four of your residents are, or will be, elderly and less likely to spend money, that does not bode well for your local businesses.  If only the caregivers that work with them live locally and spend locally.  But Brookfield and Elm Grove can't have that, can they?

I know that sounds like a slam at Brookfield and Elm Grove, and perhaps it is.  But this kind of issues are a result of deliberate housing and zoning policies that they have pursued for a long time, and now they're starting to see the consequences of that.

Race and ethnicity: Milwaukee

Race and ethnicity: Milwaukee
Originally uploaded by Eric Fischer

I believe this is just Milwaukee County, but do you honestly think it's any better in Washington, Waukesha or Ozaukee Counties?

If you think this degree of segregation is acceptable, that says a lot about you. Eric Fischer has mapping of other cities in the United States, and Milwaukee isn't alone in this, but that doesn't make it right.

Funding of Homelessness

HUD has announced their Notification of Funding Availability (NOFA) for homelessness programs and services. The $1.68 billion in assistance will be awarded in two stages; current programs will have priority, and new projects will be funded later in the year.  Following the release of the new plan, Opening Doors: Federal Strategic Plan to Prevent and End Homelessness, applicants will be required to show that their proposals will meet the goals of the plan.

This funding follows last year's $1.5 billion for Homelessness Prevention and Rapid Re-Housing Program (HPRP) and $1.43 billion in other assistance for homeless individuals and families.

In the meantime, Waukesha County agencies has seen their state and federal funding decline, a dramatic drop of $300,000 $509,000 last year to $209,000 this year starting July 1.  It is not that Waukesha is doing better lately, but that the need is worsening elsewhere, and there are only so many dollars to go around.

It is inexcusable that Waukesha County has not acted to find other funding resources to preserve programs and services.

Editorial Cartoon

I think this editorial cartoon really nails it-not just in New Jersey, but everywhere.

UPDATE:  I see now that this doesn't go to the cartoon that I initially linked to.  If you look at the archive, the one I referred to is the June 4 editorial cartoon on housing policies.

Kenosha Tax-Credit Developer Threatens Lawsuit

Just like New Berlin, a Kenosha developer had their tax-credit housing proposal, Uptown Brass, yanked after a public outcry.  And they're not taking it quietly.

According to Milwaukee News Buzz, Bear Development sent a letter to the City of Kenosha threatening a lawsuit in federal court, possibly under the Fair Housing Act.

And this part sounds awfully familiar from attending the meetings in New Berlin:

At one community forum in a school cafeteria in May, according to the Kenosha News, “residents retorted that the project would bring criminals from the inner city of Chicago,” and one man likened the proposal to high-crime housing projects in the Illinois city. Mills reportedly protested during the meeting, “People have to live somewhere.” People in the crowd responded, according to the newspaper, “Why here?” Objectors have also protested outside Bear’s office in Kenosha.

Bear Development also dropped another proposal in Kenosha in face of strong community opposition, although it sounds like they're not giving up on the Uptown Brass site yet.

Housing Discrimination Today

Someone sent me this Milwaukee News Buzz article on housing discrimination as it exists today.  A major source of discrimination complaints today is on the basis of disability.  Disability is one of the protected classes under the Federal Fair Housing Act, and states and local communities often create additional protected classes based on perceived community needs.   A full list of protected classes in Wisconsin can be found courtesy of the Fair Housing Council.

Poverty Rate

The poverty rate is now at its highest since 1994 as a result of the recession.  This has serious implication for social service programs such as employment assistance, food pantries, health care coverage, as well as a continuing foreclosure crisis.

I believe the stimulus program helped more than realized since "The 14.3 percent poverty rate, which covers all ages, was lower than estimates of many demographers who were bracing for a record gain based on last year's skyrocketing unemployment. Many had predicted a range of 14.7 percent to 15 percent."

It's easy for people to complain about "the government" but analsysts believe otherwise:

"Given all the unemployment we saw, it's the government safety net that's keeping people above the poverty line," said Douglas Besharov, a University of Maryland public policy professor and former scholar at the conservative American Enterprise Institute.

But the official poverty threshold has been criticized for many years as being artifically low, with many families struggling to get by, yet not being counted as living in poverty.

Beginning next year, the government plans to publish new, supplemental poverty figures that are expected to show even higher numbers of people in poverty than previously known. The figures will incorporate rising costs of medical care, transportation and child care, a change analysts believe will add to the ranks of both seniors and working-age people in poverty.

My question is, what are we all doing about this?  Does your Representative and Senators care about people living in poverty?  Let them know your feelings about this.

Boston's affordable housing

An interesting Boston Globe article on Massachusett's affordable housing law, "Chapter 40B" which is up for repeal.  Although I am not familiar with it, it sounds like an inclusionary zoning law. 

Chapter 40B is a state statute, which enables local Zoning Boards of Appeals to approve affordable housing developments under flexible rules if at least 20-25% of the units have long-term affordability restrictions

40B requires "affordability for households with incomes between 70% and 80% of the listed area (MSA) median income."  Assuming most housing units are priced for those at the top of  that limit, that means housing actually is pretty unafforable for very low-income households without other subsidies.  To their credit, the Chapater 40B website looks like it has resources for other subsidies.

Chapter 40B is credited with $9.25 billion in construction and related spending over the past ten years.

The (University of Massachusetts Donahue Institute) report, commissioned by a nonprofit group that supports the 1969 law known as Chapter 40B, also found that more than 21,000 housing units that are part of planned 40B developments would result in more than 54,300 jobs and another $10.42 billion in spending.

Polling prior to the Nov 2 election indicates that 56% are in favor of keeping the law.

A New Tune in West Bend

Initally after reading this article on the West Bend tax-credit housing proposal possily being rejected, I was planned to write a post titled "Haven't We Heard This Song Before?" but then I saw this.

West Bend's Mayor did what New Berlin's Mayor failed to do-stand firm in face of opposition and vote for affordable housing.  Kudos to her.

Something to keep in mind.  There were no firm offers on the property in five years. This is not Offer A vs Offer B.  This is Offer A vs No Offer.   Why is that so hard to understand?   A hamburger on the plate is better than a plate with no steak.


Update: D'oh! "West Berlin" corrected to "West Bend" in one paragraph.

Housing affordability worsening for low-income renters

The Center for Budget & Policy Priorities' blog, "Off the Charts" has a post on the worsening housing affordability for low-income renters. 

While home prices have fallen by nearly 30 percent since the market peaked in 2006, residential rents have merely leveled off over the past year and are actually 11 percent higher now than in 2006....

New Berlin Focus Group Meeting postponed

Tonight's (Sept 9) City Center Focus Group meeting for Aldermanic District 4 has been postponed.  No word on the reason.

The next scheduled meeting is for Aldermanic District 7 on Sept. 21.

Workforce Development Proposed in Racine

A developer has proposed a workforce housing development on a vacant lot near a closed Sam's Club (it moved).  The headline online is different than the headline of the paper copy, which was: 'Affordable housing' project proposed.  I got a chuckle out of that as I thought, "I see I'm not alone in thinking that tax-credit housing is not very affordable."

The first look at the plans was last night at the Racine Plan Commission meeting, and there will be a Public Hearing on Sept 14 at City Hall.

It'll be interesting to see if there's misplaced hysteria over this as there were in New Berlin and the City of Waukesha. 

Waukesha County CDBG 2011 Recommendations

Waukesha County has announced a public hearing for the 2011 Community Development Block Grant (CDBG) recommendations.  Unfortunately, I cannot find a link to it online.  HUD funds the CDBG program which allocates money to entitlement communities for use to meet their needs.  Communities generally are given a lot of flexibility in how they use the money.

CDBG funds may be used for activities which include, but are not limited to:

• acquisition of real property;
• relocation and demolition;
• rehabilitation of residential and non-residential structures;
• construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes;
• public services, within certain limits;
• activities relating to energy conservation and renewable energy resources; and
• provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities.

Any decision that Waukesha County makes on CDBG recommendations have to follow the Consolidated Plan.
 
This year's funding recommendations is anticipated to cover $1.6 million in grants, ranging from $2,942 for Dousman Village  for "Public Facilities" to $288,000 to Waukesha County for "Administration." 
 
Without knowing the details of the applications, I cannot really comment, but offhand, I'd say the most weak recommendation is $21,289 to Oconomowoc for "Economic Development."
 
Oconomowoc is the city that created the Pabst Farms and didn't include any affordable housing in the development.  According to HUD, each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available.
 
Offhand, without seeing the proposals, I'd be hard-pressed to say how Oconomowoc would qualify for this.  I'm sure there were other applications that would meet those goals in a better way.

Update:  The Public Hearing is on September 15th at 3 PM at Waukesha County Administration Center at 515 W. Moreland Blvd, Room 355-59 in Waukesha.  For more information, contact Glen Lewinski, Community Development Coordinator.  Requests for accessibility accommodations have to be made at least 48 hours prior to the meeting.

Third round of Neighborhood Stabilization Program announced

HUD has announced the third round of Neighborhood Stabilization Program, continuing to focus on foreclosed properties.  This round will have $1 billion available to states and communities.

The funding announced today is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion. Like those earlier rounds of NSP grants, these targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.

Previously, HUD Secretary Donovan announced the "First Look" program and the third round of NSP funding is designed to work with this program.

First Look gives NSP grantees an exclusive 12-14 day window to evaluate and bid on properties before others can do so. By giving every NSP grantee the first crack at buying foreclosed and abandoned properties in these targeted neighborhoods, First Look will maximize the impact of NSP dollars in the hardest-hit neighborhoods – making it more likely the properties communities want to buy are strategically chosen and cutting in half the traditional 75-to-85 day process it takes to re-sell foreclosed properties.

The City of Milwaukee received $2,687,949 with the rest of the state receiving $5,000,000 for a total of $7,687,949.  Looking at the rest of the states, it looks like every state, territory & D.C. received a minimum of $5 million, which doesn't really make sense-does sparsely populated states like Alaska, Wyoming, the Dakotas, and Vermont really need $5 million each?  Probably a bit of politics in this distribution.

California ($149,308,651) and Florida ($208,437,144) are the big winners-or rather, the losers-in this round.

Snapshots on how communities are doing in their previous NSP grants can be found here.

Lack of oversight in Foreclosures

This is such a mess.  It's my contention that lack of regulatory oversight led to the collapse of the housing market, and the same lack of regulatory oversight is leading to abuses in the foreclosure process.

The NY Times article on what is happening in Florida should be a cautionary tale for all communities that are facing waves of foreclosures.  While it's not as bad in Wisconsin as it is in Florida, it's something that community leaders should learn from.

Google Invests Millions into Affordable Housing

Google has announced a partnership with U.S. Bank to invest $86 million into affordable housing in seven communities across the country, including Milwaukee (City? County? Metro area?).

Google is bringing fresh capital to the industry at a time when many developers of low-income housing projects have been faced with significant financial gaps. Their commitment to affordable housing marks a continuing expansion of the affordable housing investor base beyond traditional investors such as banks and insurance companies.

To date, mostly banks and insurance companies have been investors in the Low-Income Housing Tax-Credits offered by the federal government. But in this rough economic times, many have been hesistant.  The prices of tax credits have fallen far, from 94-95 cents on the dollar in 2006 to as low as 69 cents on the dollar at the end of 2009, if not lower.  This means that when a developer sells the tax credits awarded, the developer will not receive as much cash as the company may have received in the past.

The lower cost of tax credits may have made it more attractive for non-traditional investors like Google.  For more explanation of other benefits to Google, read this analysis. 

A report has estimated the size of the tax credit market to be less than $4.5 billion in 2009, less than half of its peak of approximately $9 billion in 2007. 

They're projecting 480 units nation-wide will be created as a result of the investment. Just a drop in the ocean on what is needed, but a welcome addition.  Reading this article on Multifamilybiz.com makes me think that those seven communities were selected mostly because of pre-existing relationships with developers who may already have projects in the pipeline.