Advocacy for the Poor - Thinking Nationally...Advocating Locally.Advocacy for the Poor - Thinking Nationally...Advocating Locally.

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  • Affordable Healthcare
  • Affordable Housing
  • Hunger
  • Poverty

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    Hunger

    The current economic crisis has contributed to a growing number of homeless in the nation.

    The Problem

    • Fannie Mae, Freddie Mac mortgage delinquencies still rising, Triangle Business Journal, October 2, 2009

      • The Triangle Business Journal reports on the state of the U.S. mortgage market, and the news is not good.

        • Mortgage delinquencies are rising; according to the Federal Housing Finance Agency (FHFA) 80,100 more loans became more than 60 days delinquent in the second quarter (an increase of 20% of mortgages held by Fannie Mae and Freddie Mac).

        • Unfortunately, loan modifications which are supposed to help those in danger of defaulting, have slowed in recent months. The FHFA has instituted a new policy for loan modifications that requires applicants for the program prove their ability to pay their modified mortgages for three months before the agency will approve the adjustments.

        • More people unable to pay their mortgages means that more families are being foreclosed upon and are likely to be forced from their homes. Foreclosures were up 5% from April to May this year.

    The Consequences

    • In June of 2009, the Department of Housing and Urban Development announced that NC would receive $18 million in Homelessness Prevention and Rapid Re-Housing Funds, special funds set aside for each state as part of the economic stimulus package passed in early 2009. These funds are specially targeted at helping people who would be homeless without intervention and to quickly get into homes those who are already homeless (NC League of Municipalities). NC state government issued an RFP to state municipalities with an August submission deadline.

    Taking Action

    • The Housing Authority of Winston-Salem (HAWS) has issued reductions in voucher payments for its participants in the Section 8 Housing Choice Voucher program. The cuts begin in September and range from a few dollars to a couple hundred dollars per voucher depending on the recipients’ incomes, current rent payments, and the size of the rental unit for which they qualify. HAWS hopes the cuts will be temporary—lasting only from September 2009 through December 2009, but the agency has no guarantee of increased funding for the next fiscal year (HAWS waits for Section 8 help, Winston-Salem Journal, 7/19/2009

    • In 2006, the City of Winston-Salem joined forces with United Way of Forsyth County and other local agencies to create the Winston-Salem Ten-Year Plan to End Chronic Homelessness (TYP). In the summer of 2009, the TYP made strides in implementing policy favorable for the homeless and in building housing for low-income persons.

    Resources