Hope Amid a Downturn
The real-estate bust is creating an unexpected benefit: housing for the homeless. Even as the foreclosure crisis pushes some low income families into shelters, chronic homeless rates are shrinking thanks in part to the foreclosed and vacant buildings social-service agencies can now afford to buy. In Denver, persistent homelessness is down 36 percent since 2005, as nonprofits have turned seized apartment buildings and run-down motels into 1,242 rooms, complete with access to addiction treatment and health care. A Worcester, Mass., nonprofit will soon close on five multifamily duplexes that will provide 20 to 30 units for the homeless, and Ventura County, Calif., is in talks with local banks to take over 100 homes for permanent use. "These are opportunities we haven't seen in decades," says Philip Mangano, the Bush administration's homelessness czar.
Historically, economic downturns are good for the homeless, just as booms tend to be bad. During the 1990s, despite record spending and increases in shelter beds under the Clinton administration, homeless rates jumped 50 percent. "The prosperity always trickles up, not down," says Mangano. For now, advocates are grabbing what they can.
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Member Comments
Posted By: EMMA6789 @ 08/18/2008 4:12:16 AM
Comment: I'm confused. How does the government (social services) and "nonprofit" agencies buy private homes and motels? Only the government and the media would think that all of the people who have been "let go" and have lost their homes "are opportunities" to warehouse people instead of increasing employment! But I guess the quote of the czar is right "The prosperity always trickles up, not down".
Posted By: phiomalibumalibu @ 07/28/2008 5:45:49 PM
Comment: Banks aren't stupid. The will only sell or donate in un-desired neighborhoods...then take the write-off.
Also, the ploy seems to be working for the larger banks who became jealous of the oil industry profits.
"Hey, we want some of that" Let's find a way to drive down real-estate values. Foreclose on hundreds of thousands of properties, and keep the good ones. Wait a year and drive the prices up so we can sell for billions.
We have noticed that the banks aren't even talking about their Bank-Owned-Real-Estate in good areas.
Posted By: FarrahAshline @ 07/28/2008 11:32:46 AM
Comment: I'm happy to read at least some benefit to this recession.
Farrah Ashline