Ariel Popa, Victoria Rivas, Kevin Schwake, Corenne Omole, and Simone Labine

1. Homelessness in Morris County Ariel Popa, Victoria Rivas, Kevin Schwake, Corenne Omole, and Simone Labine Prepared for: PSCI 112 Public Policy and Administration A Community Based Learning Course at Drew University In partnership with the United Way of Northern NJ, Morris County. May 2011

2. Introduction Homelessness: What is the most effective way to: • reduce the number of people who are homeless, • shorten their length of stay at a shelter and • reduce recidivism? • Emergency Services • Agencies/Organizations that Prevent Homelessness • Transitional Housing • Homeownership • Preventative Services • Recommendations

3. Context • As of 2008, there were 1.5 million people nationwide were homeless • In a January 2008 survey, there were 6 in 10 people who were in emergency shelters or transitional housing • As of 2010, 296 people were officially homeless in Morris County • According to a different survey in Morris County conducted by various human service agencies the number was estimated closer to 653 homeless people in the County What services are offered to assist these people?

4. Emergency Assistance Department of Human Services -Provides emergency assistance to people who have recently lost their homes -includes emergency shelters, employment and training services, and access to food stamps -These services are only provided for people who are eligible for TANF or General Assistance -SSH

5. Problems • Main Problem with Emergency Services: -not enough shelters and beds for growing number of homeless -According to CEAS report, there has been a 17% increasing in number of families using emergency shelters from 2010-2011 -Declining number of employment and training services

7. Policy Alternatives • NJ Advocacy Network to End Homelessness - States should reorganize emergency assistance to provide more rental assistance • CEAS Committee - More data on housing inventory, more $ from state government

8. Chronic Homelessness • According to 2010 CSH report, chronic homeless population consists of 25% of all homeless in Morris County • Who are the chronic homeless? • 2010 Survey: -Mental Illness: 74.5% -Substance Abuse: 66.7% • Problem: These people constantly cycle through emergency service system

10. Policy Recommendations • In the short-term, expand shelters by gathering accurate data, • Improve employment and training services within the Department of Human Services, • For the long-term problem of chronic homelessness, expand supportive services for mentally ill and drug abusers.

11. Help for the Homeless; Government Programs- Federal • Housing and Urban Development • McKinney-Vento Homelessness Assistance Act • Interagency Council on Homelesness • Department of Human Services (for those with disabilities)

12. Help for the Homeless; Government Programs- State • HUD’s Camden and Newark offices • New Jersey Department of Community Affairs • Council on Affordable Housing • Division of Housing and Community Resources • NJ Housing and Mortgage Finance Agency

13. Help for the Homeless; Government Programs- Local • HUD’s Camden and Newark Offices • Aid on local level falls heavily on Independent Agencies

14. Independent Agencies Case Study: Supportive Housing Association of New Jersey • Other organizations form membership of SHANJ (Over 80 current members) • United Way of Hudson County • St Clare’s Hospital • NJ Housing and Mortgage Finance Agency • McKernan Architects & Associates • Butler Woodcrafters • Autism NJ

15. SHANJ’S Three Goals • Strengthening membership organizations • Promoting systems change • Educating policy makers, elected officials, and public

17. Recommendations • Focus on housing first model • Get communities involved in local aid to fill government void

18. Is Transitional Housing Effective? • It a program that came out of McKinney-Vento Homeless Assistance Act in 1987 • Some feel that taking people to a shelter and then into housing isn’t an effective way to end homelessness. • Giving homeless families a place of their own would inspire them to keep their home and that is a better way to end homelessness.

19. Is Transitional Housing Effective cont. • “86% of families leaving TH moved directly from TH to their own place. 80% said their TH programs had helped them with a variety of housing” • “Only 4 families with 12 month interviews became homeless within the year following TH, representing 2.1% of the original example of 195” • “3 in 5 mothers lived in their own place for the entire post TH year. 19% moved at least once, but always to their own place. At the less stable end the continuum. 5% never had their own place or moved at least once to a place that was not their own. 2% experienced another episode of homelessness in the year following TH”

20. Recommendations • Transitional Housing seems to help the homeless families that reach out for its help. • There are still a minority of families that either have unstable housing or become homeless again after being helped by Transitional Housing. HUD should look into why some families become homeless.

21. Homeownership • Habitat for Humanity: -builds decent, affordable housing for low-income families -receives funding from both federal government and the United Way

22. HSBC’s First Home Savings Club -Savings Programs for first-time homeowners -Maximum grant: $7,500 • Mortgage Revenue Bond income limit: -1-2 person household: $70,320 -3 or more person household: $80,868 • Duration of program: 10-24 months

23. U.S. Department of Housing and Urban Development • Three stage homeownership plan: -Getting Started, Buying a Home, Owning and Maintaining Home • Getting Started: -Housing Counseling Agencies -Educationon buying and maintaining home -Predatory Lending

24. U.S. Department of Housing and Urban Development cont. • Buying a Home: • Assistance Programs • HUD Sponsored Home • Homeownership Vouchers • Owning and Maintaining Your Home: -Home Repairs -Avoiding Foreclosure -Energy Efficient Home

25. Recommendations • Lower Income range of Mortgage Revenue Bond • More programs to allow easy access to more affordable housing to achieve homeownership

26. Preventing Homelessness Stopping Foreclosures will prevent homelessness and reduce recidivism • In 2009 approx. 2,824,674 properties nationwide were in some type of default. • Lower-income Americans (Alice population) use approx. 45-50% of their income on housing in New Jersey • Many Americans, not just low-income Americans, use their houses as collateral in order to get loans from the bank. Banks use houses because of their value. *Houses appreciate in value over the years (present housing market excluded). Default on Mortgage payments lead to foreclosure and this has impacted both: HOMEOWNERS AND TENANTS.

27. The Foreclosure Prevention Programs • For Homeowners 1) Government Programs under the Making Home Affordable Program (MHA) (a) refinancing mortgage loans through the Home Affordable Refinance Program (HARP) (b) modifying first and second mortgage loans through the Home Affordable Modification Program (HAMP) and the Second Lien Modification Program (2MP) (c) providing temporary assistance to unemployed homeowners through the Home Affordable Unemployment Program (UP) (d) offering other alternatives to foreclosure through the Home Affordable Foreclosure Alternatives Program (HAFA) (Making Home Affordable. Gov). New Jersey Housing and Mortgage Finance Agency (NJHMFA)

28. The Foreclosure Prevention Programs cont. • The  that provides temporary financial assistance, Mortgage assistance Program “$20,000 to income-eligible homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems beyond their control” (NJHMFA). • Home keepers Program (NJ State)- $48,000 Loan for eligible parties For Tenants 2) Section 8 Housing (a) Tenant Based Rental assistance (b) PTFA- Protecting Tenants at Foreclosure Act New Jersey Housing and Mortgage Finance Agency (NJHMFA)

29. Recommendations A) The best way to stop foreclosure for the underemployed- Loan modifications which include changing interest on original loans • The MHA programs will help people keep 70% of their net income (which is not much in most cases) but makes a big difference for needy recipients expenses. • Minimum rate of interest (possibly between 2-3%)for loans especially for low-income earners. • The MHA programs plus a loan modification would increase the total income and would lessen the total debt simultaneously. B) Both homeowners and tenant assistance should have under loan modifications C) Housing funds should not be cut off the minute that an individual or family fails to fit into one criterion that determines MHA program eligibility. D) Education on financial empowerment and money management. When to borrow and how to budget.

30. Overall Findings • Emergency services must focus on both short-term and long term problems of homelessness. • Focus on housing first models • Educate public and officials on cost saving benefits of homelessness assistance • Lower-income Mortgage Range limit • Loan modifications and tackle initial interest of original mortgage • Tweak Transitional Housing

31. Works Cited • Brown, Richard. Personal Interview. 8 April 2011. • Bruseo, Joan. Personal Interview. 18 March 2011 • CEASE Operation Guidelines • CEAS/COC Committee Meeting. 12 April 2011 • Christie, Les. “The Rescue: Extreme modifications: 2% mortgages” CNN Money.com, December 17, 2009. <http://money.cnn.com/2009/12/16/real_estate/great_mortgage_modifications/index.htm? • postversion=2009121710&iid=EAL> • Christie, Les. “The Rescue: Record 3 million households hit with foreclosure in 2009.” CNN Money.com, January 14, 2010. http://money.cnn.com/2010/01/14/real_estate/record_foreclosure_year/ • Corporation for Supportive Housing, PITC Report-Morris County. 2010. http://www.uwmorris.org/documents/10PITCmorris.pdf • Donovan, Shaun. “U.S Department of Housing and Urban Development.” HUD. GOV.<http://portal.hud.gov/hudportal/HUD?src=/states/new_jersey> • Drobness, Tanya; Lockwood, Jim. “Morris County shelters see growing number of white-collar professionals becoming homeless.” December 6th 2009, NJ News: The Star-Ledger. http://www.nj.com/news/index.ssf/2009/12/morris_county_sees_growing_num.html • Home Recovery Organization. “Mortgage Help for Homeowners in Distress.” <http://homeRecovery.org/> • HUD Homes & Communities. “Tenant-based Rental Assistance.” U.S. Department of Housing and Urban Development, 10 July 2009. <http://www.hud.gov/offices/cpd/affordablehousing/ training/web/abc/ activities/tenantassist.cfm> • Greulich et al. The Anatomy of Rent Burdens: Immigration, Growth, and Rental Housing. Brookings-Wharton Papers on Urban Affairs (2004), pp. 149-205 <http://www.jstor.org/stable/25067408> • Johnson, Tim. “Johnson Statement on Housing Market Hearing.” The United States Senate Committee on Banking, Housing and Urban Affairs, March 9, 2011. <http://banking.senate.gov/public/ • index.cfm?FuseAction=Newsroom.PressReleases&ContentRecord_id=A0D837D6-B2B7-D906-B07F-13E3224BA47E>

32. Works Cited • Luhby, Tami. “Only about 4% get long-term mortgage help.” CNNMoney.com, December 10, 2009. <http://money.cnn.com/2009/12/10/news/economy/permanent_loan_modifications/index.htm?postversion=2009121018&iid=EL> • Melton, Elease. “The Role of the ULMCNJ in Foreclosure Prevention and Mediation.” Interview, April, 1 • 2011 • "Mental Illness and Homelessness." National Coalition for the Homeless. June 2006. Web. 2 Apr. 2011. <http://www.nationalhomeless.org/>. • Mental Health Association of Morris County. HOMI. http://www.mhamorris.org/page.php?p=8 • MHA. “Homeowner Frequently Asked Questions: What is "Making Home Affordable" all about?” Making Home Affordable, March 14, 2011. <http://www.makinghomeaffordable.gov/faqs/homeowner-faqs/Pages/default.aspx> • Morris County Department of Human Services. http://www.morrishumanservices.org/hs/ota.asp • Murphy, Ed. Personal Interview. 39 March 2011 • National Law Center on Homelessness & Poverty. An Ounce of Prevention: Programs to Prevent Homelessness in 25 States. February 25, 2009. <http://www.nlchp.org/view_report.cfm?id=294> • National Law Center on Homelessness & Poverty. PTFA: Protecting Tenants at Foreclosure Act. 2010http://www.nlchp.org/view_report.cfm?id=336 • New Jersey Advocacy Network to End Homelessness. http://www.njaneh.org/about/ • NJHMFA. “The New Jersey Home Keeper Program.” New Jersey Housing and Mortgage Finance Agency, 2011. <http://www.njhomekeeper.gov/guidelines.htm> • NJHMFA. “Federal and State Mortgage Modification Programs.” New Jersey Housing and Mortgage Finance Agency, 2007. <http://www.state.nj.us/dca/hmfa/home/foreclosure/programs.html> • (NUL) National Urban League. The Housing and Community Development Programs. The National Urban League. <http://www.nul.org/what-we-do/our-programs/housing> • Peet, Judy. “Foreclosure-based evictions leave many renters homeless.” January 17, 2010. • <http://www.nj.com/news/index.ssf/2010/01/headline_2.html> • Ragonese, Lawrence. “Number of homeless doubles in Morris County.” The Star Ledger, Wednesday, March 10, 2010. <http://www.nj.com/news/index.ssf/2010/03/number_of_homeless_doubles_in.html