Short Takes

Street Seniors Get Diploma in Survival

You hate to admit it's needed. At the St. Anthony Foundation in San Francisco's Tenderloin district, reports the San Francisco Chronicle (2/28/00), homeless senior citizens are now offered a four-day course in survival: finding free food, low-cost housing, medical care, and discounted transportation, and making complaints about various services. The course also lets participants voice their questions and frustration directly to invited panels of public officials. Graduation from the class comes complete with mortarboards.

Although the City can't regulate lenders directly, a new ordinance prevents the City from doing business with predatory lenders or their affiliated banks, as determined by the city's chief financial officer. The ordinance also prohibits home-improvement contractors from either recommending predatory lenders or receiving payments directly from a lender, a practice that prevents homeowners from withholding payment for substandard or non-existent work. The city, Neighborhood Housing Services, and participating lenders are also creating a revolving loan fund to help victims refinance predatory loans. Information: 312-738-2227.

Money for the Poor Unspent

Child poverty in the U.S. is at 18.9 percent, higher than any year in the 1970s. One third of those leaving welfare report zero earnings; average yearly earnings for those that do find work are only $2,980-13,444. Still, says a study from the National Campaign for Jobs and Income, 45 states and the District of Columbia are sitting on a total of $7 billion in unspent TANF funds, accumulated since 1996's welfare reform law. The Campaign found that all but one state have reduced their own welfare spending, 15 to the federal minimum. Six states – Connecticut, Kansas, Minnesota, New York, Texas, and Wisconsin – have used earmarked anti-poverty funds to pay off other state programs. Information: Son Ah Yun, Center for Community Change, 202-342-0567; yuns@commchange.org.

Under Fire, HUD Agrees to Evict Ethically

It was an ironic move for the federal agency charged with helping poor people find affordable shelter – in Los Angeles, HUD was not only evicting tenants from foreclosed properties it wanted to resell, but was using a legal loophole to avoid paying relocation expenses. After an outcry from the city and tenant advocates, HUD – blaming the original situation on the banks involved – agreed to give tenants $5,000 in relocation assistance, more time, and first option to buy their homes. Council Member Jackie Goldberg, though happy with the change, is proposing to close the loophole that makes government agencies exempt from the city's rent laws. (Los Angeles Times, 2/29/00)

Poor Paying More for Cash

The Electronic Benefits Transfer (EBT) system that puts food stamps and cash welfare benefits on ATM-style cards is creating financial redlining in Washington Heights, New York City, reports City Limits (April 2000). What critics feared at the start [see Shelterforce #96] has come to pass: Of the 47 stores listed by the Office of Temporary and Disability Assistance as accepting EBT cards for food and cash benefits, over half of the 21 surveyed only accepted the cards for food purchases. Those merchants that do allow cash withdrawals limit the amount, forcing several withdrawals to get enough to pay a single bill. Others require purchases with withdrawals, or charge a fee.

Controversy Over Income Verification Plan

Responding to suspicions from the Inspector General that tenants in subsidized housing are under-reporting their income, by up to $1 billion dollars in total, HUD was poised in March to mail over 280,000 income verification letters. Housing advocates were concerned that tenants who didn't understand their rights would take the letters to mean they had to leave. They urged HUD to reword the letter, set guidelines on how far back tenants should be expected to keep records, and assure that tenants wouldn't be penalized if a housing authority certified them improperly. At the National Low Income Housing Coalition's annual conference on March 27, Secretary Cuomo agreed to delay the letters until these concerns were resolved; HUD is working with residents' groups, the Council of Large Public Housing Authorities and other organizations to redraft the letter.

San Francisco Voters Look Below Surface

On March 7, San Francisco voters defeated an ordinance backed by downtown hoteliers concerned that welfare checks were being spent on drugs and alcohol. The ordinance, reported the San Francisco Examiner (3/8/00), would have turned all but $2/day of welfare assistance into vouchers for housing and services. Opponents argued that beyond the punitive nature of the measure, there was no assurance of enough housing or services to back up the vouchers, and some recipients might even be evicted by landlords not wanting to deal with a government program.

Landlord Steals Housing Subsidies

A wealthy landlord is facing federal charges for 11 counts of wire and mail fraud and three counts of money laundering, says the San Jose Mercury News (2/25/00). Nemat Maleksalehi allegedly defrauded HUD of $1.3 million in Section 8 subsidies by falsifying invoices, financial records, tenant records, and other documents for a complex in Pittsburg, CA. He has already admitted to state charges of illegally collecting housing subsidies for apartments he was renting at market rate, and is charged with illegally obtaining welfare payments for his mistress's son and rent subsidies for his family's ocean-view home.

California Has a New Governor!

Well, the election is old news, but the difference was clear when the Governor's 2000-01 State Budget was released, containing $86.9 million for housing, the largest infusion since 1979. The budget included a permanent $15 million increase for the state's Low Income Housing Tax Credit, and $2.5 million to preserve federal 'at-risk' units. Nonetheless, with predictions of a $4-6 billion state surplus, happy housing advocates are seeking increases for the multi-family housing program, homeless assistance, and farmworker housing that would bring the total to $300 million. Information: California Housing Law Project, 916-446-9241. 

Copyright 2000

 Back to March/April 2000 index.