Fall 2011

Overnight Shelter

Three Daily Meals

Case Management and Mentorship

Day Center Facility

The story of their financial freefall involves the typical culprits of layoffs, continued unemployment and escalating medical bills. What's remarkable is the growing number of families who now find themselves in similar straits.

"These families have tapped out every resource they have - they've depleted savings, they've reached into retirement accounts, they've exhausted their credit limit," said Brent Trotter, president and CEO of the Coalition for the Homeless. "In this economic tsunami of a recession, they've become this whole new demographic of people who are experiencing the crisis of homelessness for the first time."

Since the recession began in late 2007, the number of homeless children attending public schools in Orange, Osceola and Seminole counties has more than tripled, from 1,300 to more than 4,200. Nonprofit agencies that shelter families report that they have been overwhelmed by the demand, with most operating at or near capacity these days.  Even the shelters have to turn away women and children who have nowhere else to go.

What's especially tragic, said Cathy Jackson, Executive Director of the Homeless Services Network of Central Florida, is the effect on children. Studies have shown that the chaotic nature of homelessness often has long term consequences on development and opportunity for kids.  "It's not just the phenomenon of people living in hotels and struggling. We're talking about thousands of children impacted academically and emotionally - and for a long time. Our society is going to pay for this for years to come."

Nowhere to go

Part of the problem is that virtually all current facilities were designed when the homeless population was almost exclusively single men, many of whom had chronic mental-health issues or substance-abuse problems. Programs that nurture families, added in recent years, have always been a little behind the curve, a situation greatly exacerbated by the recession.

In Orange County there are only 718 beds for the homeless - about 62 percent of what officials say is necessary to meet demand. In Seminole, the number drops to 184 beds or 46 percent of what's needed. In Osceola, there are 115 beds, barely 20 percent of what's needed. "Homelessness is an epidemic now," said Ernest Hamilton, executive director of the Rescue Outreach Mission. "As soon as you expand, you're full again, and you've probably got a waiting list."

Churches step in

A few months ago pastor David Knight began to notice people sleeping on the church's front steps at night.  "I was surprised by the caliber of the people," said Knight. "They looked like someone who could be sitting next to me at a restaurant or standing in line at the supermarket. I thought, 'Are these people in an experiment where they spend a night on the street to empathize with the homeless?' "  As he began to talk with them, he learned they were largely victims of the economy, and he offered them something precious in the homeless community - a hot shower.

Pastor Scott Billue created a homeless ministry less than a year ago. Initially envisioned as a cold-weather shelter, the program has mushroomed to help clothe and feed the "structurally challenged," as Billue calls the homeless, and to connect them with jobs, training and other services.

From Recession created 'epidemic' of homeless families by Kate Santich.  See full article

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Two trends are largely responsible for the rise in homelessness over the past 20-25 years: a growing shortage of affordable rental housing and a simultaneous increase in poverty.

FORECLOSURE

Recently, foreclosures have increased the number of people who experience homelessness. Since the start of the recession, over six million jobs have been lost. The National Low Income Housing Coalition estimates that 40 percent of families facing eviction due to foreclosure are renters and 7 million households living on very low incomes (31 - 50 percent of Area Median Income) are at risk of foreclosure.

Homelessness and poverty are inextricably linked. Poor people are frequently unable to pay for housing, food, childcare, health care, and education. Difficult choices must be made when limited resources cover only some of these necessities. Often it is housing, which absorbs a high proportion of income that must be dropped. If you are poor, you are essentially an illness, an accident, or a paycheck away from living on the streets.

Two factors help account for increasing poverty: eroding employment opportunities for large segments of the workforce and the declining value and availability of public assistance. 

ERODING WORK OPPORTUNITIES

Reasons why homelessness persists include stagnant or falling incomes and less secure jobs which offer fewer bene-fits.  Low wage workers have been left behind as the disparity between rich and poor has mushroomed. To compound the problem, the real value of the minimum wage in 2004 was 26% less than in 1979. Factors contributing to wage declines include a steep drop in the number and bargaining power of unionized workers; erosion in the value of the minimum wage; a decline in manufacturing jobs and the corresponding expansion of lower-paying service sector employment; global-ization; and increased nonstandard work, such as temporary and part-time employment. 

The connection between impoverished workers and homelessness can be seen in homeless shelters, many of which house significant numbers of full-time wage earners. With unemployment rates remaining high, jobs are hard to find in the current economy. Even if people can find work, this does not automatically provide an escape from poverty.

DECLINE IN PUBLIC ASSISTANCE

The declining value and availability of public assistance is another source of increasing poverty and homelessness.  Extreme poverty is growing more common for children, especially those in female-headed and working families.

As a result of loss of benefits, low wages, and unstable employment, many families leaving welfare struggle to get medical care, food, and housing.  Most states have not replaced the old welfare system with an alternative that enables families and individuals to obtain above-poverty employment and to sustain themselves when work is not available or possible. 

HOUSING

A lack of affordable housing and the limited scale of housing assistance programs have contributed to the current housing crisis and to homelessness.  According to HUD, in recent years the shortages of affordable housing are most severe for units affordable to renters with extremely low incomes.  About 200,000 rental housing units are destroyed annually. Renting is one of the most viable options for low income people. 

Since 2000, the incomes of low-income households has declined as rents continue to rise.  In 2009, a worker would need to earn $14.97 to afford a one-bedroom apartment and $17.84 to afford a two-bedroom apartment. There was an increase of 41% from 2000 to 2009 in fair market rent for a two-bedroom unit, according to HUD. 

The lack of affordable housing has lead to high rent burdens (rents which absorb a high proportion of income), overcrowding, and substandard housing. These phenomena, in turn, have not only forced many people to become homeless; they have put a large and growing number of people at risk of becoming homeless.

Housing assistance can make the difference between stable housing, precarious housing, or no housing at all. However, the demand for assisted housing clearly exceeds the supply: only about one-third of poor renter households receive a housing subsidy from the federal, state, or a local government. The limited level of housing assistance means that most poor families and individuals seeking housing assistance are placed on long waiting lists. 

Excessive waiting lists for public housing mean that people must remain in shelters or inadequate housing arrangements longer. In a survey of 24 cities, people remain homeless an average of seven months, and 87% of cities reported that the length of time people are homeless has increased in recent years.  Longer stays in homeless shelters result in less shelter space available for other homeless people, who must find shelter elsewhere or live on the streets. 

OTHER FACTORS

Lack of Affordable Health Care: For families and individuals struggling to pay the rent, a serious illness or disability can start a downward spiral into homelessness, beginning with a lost job, depletion of savings to pay for care, and eventual eviction. One in three Americans, or 86.7 million people, is uninsured. Of those uninsured, 30.7% are under eighteen. In 2007-2008, four out of five people that were uninsured were working families. Work-based health insurance has become rarer in recent years, especially for workers in the agricultural or service sectors.

Domestic Violence: Battered women who live in poverty are often forced to choose between abusive relationships and homelessness.  Approximately 63% of homeless women have experienced domestic violence in their adult lives.

Homelessness results from a complex set of circumstances that require people to choose between food, shelter, and other basic needs. Only a concerted effort to ensure jobs that pay a living wage, adequate support for those who cannot work, affordable housing, and access to health care will bring an end to homelessness. 

From Why Are People Homeless? by the National Coalition for the Homeless  full article

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Thanks to Florida Gov. Rick Scott's insistence that people on welfare use drugs at a higher rate than the general population, the state's Legislature implemented a policy earlier this year requiring all applicants for temporary cash assistance to pass a drug test before getting any help. 

The results: Ninety-eight percent passed. And the process will cost the state $178 million.

The Tampa Tribune reports that the Department of Children and Families says about 2 percent of applicants are failing the test and another 2 percent are not completing the application process for unspecified reasons.

Here's the Tribune's assessment of how much the state will pay:  Cost of the tests averages about $30.Assuming that 1,000 to 1,500 applicants take the test every month, the state will owe about $28,800-$43,200 monthly in reimbursements to those who test drug-free. That compares with roughly $32,200-$48,200 the state may save on one month's worth of rejected applicants.

Net savings to the state: $3,400 to $5,000 annually on one month's worth of rejected applicants. Over 12 months, the money saved on all rejected applicants would add up to $40,800 to $60,000 for a program that state analysts have predicted will cost $178 million this fiscal year.

At Scott's urging, the Legislature implemented the new requirement earlier this year that applicants for temporary cash assistance pass a drug test before collecting any benefits.

The law, which took effect July 1, requires applicants to pay for their own drug tests. Those who test drug-free are reimbursed by the state, and those who fail cannot receive benefits for a year.

More than once, Scott has said publicly that people on welfare use drugs at a higher rate than the general population. The 2 percent test fail rate seen by DCF, however, does not bear that out.

According to the 2009 National Survey on Drug Use and Health, performed by the U.S. Substance Abuse and Mental Health Services, 8.7 percent of the population nationally over age 12 uses illicit drugs. The rate was 6.3 percent for those ages 26 and up.

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Congratulations to Home & Hope Board Member Sean Ponist on being named to the 2011 Northern California Super Lawyer List!  This honor highlights the competence and professionalism on our board.   

Following are excepts from Sean's Super Lawyer attorney profile.

Peterson Martin & Reynolds LLP

Practice Areas: Real Estate (50%), Construction Litigation (30%), Business Litigation (20%)  

Sean Ponist specializes in real estate and business litigation.  As an experienced civil litigator and former prosecutor, Mr. Ponist brings significant litigation and trial experience to his representation of clients.

REAL ESTATE AND BUSINESS LITIGATION 

Mr. Ponist successfully represents clients in arbitration and litigation in a broad range of real estate and business disputes, including disputes concerning real estate sales and ownership, real estate brokerage, real estate development, construction and construction defect, title and boundary issues, commercial leasing, commercial unlawful detainer and commercial landlord-tenant issues as well as business contract and partnership disputes.  He combines cost effective efficiency and proven experience to achieve favorable settlements and winning results at arbitration and trial.

ARTICLES AND PRESENTATIONS 

Mr. Ponist has published numerous articles on real estate topics, including recent articles in The Daily Journal ("Recovering Lost Profits in Real Estate Transactions" and "Should Equitable Indemnity Apply Against Negligent Misrepresentation Claims?") and California Lawyer magazine ("The Nonrefundable Deposit - Not!").  He has also lectured for the San Mateo County Bar Association ("When Real Estate Deals Go Bad") and on litigation topics for the National Business Institute ("Direct and Cross-Examination For Civil Litigators").

ASSOCIATIONS, BAR / PROFESSIONAL ACTIVITY 

Mr. Ponist is admitted to practice before all California federal and state courts, the California Supreme Court, the Ninth Circuit and the U.S. Supreme Court.  He is active with the San Francisco and San Mateo County Bar Associations and serves on the Board of Directors for the San Mateo County Barristers.  He also serves on the Board of Directors for Home and Hope and has volunteered with the Special Olympics, Cal Mentor, and Project Angel Food.

EDUCATION

UCLA, B.A., Philosophy (Departmental Scholar, Dean's Honor List)

UC Davis School of Law, J.D. (Moot Court, Mock Trial Team)

WHAT IS SUPER LAWYERS 

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The fastest growing demographic entering the homeless life is that of parents with children. In addition to the obvious issues - lack of a roof and safety on the streets, having to care for multiple people, etc. - there are further downsides presented by the way that the homeless aid is structured.

Homeless families face unique challenges. They're often invisible to social-service agencies because they prefer to double up on a friend's couch than to sleep on the street. Shelters are often already full, space taken by those on the long wait list for public housing and subsidized Section 8 housing.

Services are not optimized for family assistance. Sometimes the families still have vehicles or belongings they have managed to preserve. Addiction issues are nowhere near as prevalent.