February 15, 2012

The Impact of Foreclosure on Health

Charleston affordable housingIt’s obvious that when a home goes into foreclosure, the homeowner will experience emotional stress on top of financial strain. But what impact does this stress have on the health of a homeowner? Two economists conducted a study last year to find out and discovered there’s a direct correlation between foreclosure rates and the health of residents.

In their study, Janet Currie of Princeton University and Erdal Tekin of Georgia State University centered on some of the hardest-hit areas of the U.S.: Arizona, California, Florida and New Jersey. The results, published by the National Bureau of Economic Research, revealed that an increase of 100 foreclosures corresponded to a 7.2% increase in emergency room visits and hospitalizations for hypertension, and an 8.1% increase in diabetes, among people aged 20-49.

The study also revealed that for each increase in 100 foreclosures, there was a 12% increase in visits related to anxiety in adults aged 20-49, as well as 39% more suicide attempts.

The bottom line is that financial duress, among other issues, could lead to health problems, which can only exacerbate financial problems. For many, it’s a vicious cycle.

Prior to Currie and Tekin’s study, the Leonard Davis Institute of Health Economics issued a brief on the impact foreclosures have on health. Similarly, it found that foreclosure is associated with high rates of major depression, hypertension and heart disease.

RealtyTrac’s January 2012 statistics show 1,343,002 homes were in foreclosure nationwide, which in the Palmetto State translated to 1 in every 651 homes.

Lowcountry Housing Trust is dedicated to providing affordable options for owning a home, because we all benefit from creating safe, decent places to live. From decreased traffic congestion to lower levels of crime, to open green spaces, to greater quality of life, communities thrive when housing is affordable.

Lowcountry Housing Trust recognizes the impact foreclosures have on homeowners and the local community, and has worked diligently to eradicate the issue on a local level. In 2009, LHT received $7.4 million in Neighborhood Stabilization Program funding to purchase and rehabilitate 63 foreclosed properties. LHT will continue to transform abandoned, dilapidated housing units into rental and homeownership opportunities for families at or below 120% AMI through financing the rehabilitation of foreclosed properties.

To learn more about the services LHT offers, including a homebuyer assistance plan, please visit lowcountryhousingtrust.org.

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February 8, 2012

LHT Loans Improve Energy Efficiency of Rental Properties, Saving Renters Money

 

charleston affordable housing

The middle of winter is certainly a time when we all tend to cringe when opening the electric/gas bill. And when you are responsible for paying those bills, you can see the logic behind putting on a sweater instead of turning up the thermostat.

In addition to adding layers, there are other ways to improve the energy efficiency of a living space, which can add up to big savings. This is especially important for low-income families who may spend more than 15% of their income on energy, according to the S.C. Energy Office. The Energy Office also says that simple energy efficiency improvements can cut energy costs by more than 40% in most affordable housing properties. The money that families save on energy can help them pay for food, clothing and other essentials.

Lowcountry Housing Trust also thinks it’s important to take measures to build energy-efficient properties and renovate existing properties. That’s why, for the last year, we’ve been offering an Energy-Efficient Rehab Loan Program for rental properties.

Our program makes loans to owners of multi-family and single-family rental properties that they can use to make changes that improve the energy efficiency of the property by a minimum of 20%. Tenancy is limited to households with incomes at or below 120% of the area’s median income. An LHT loan can only be used for items directly related to improving energy efficiency, including hot water heaters, heating/AC systems, insulation, windows, doors, programmable thermostats, lighting and appliances.

Through the program, a property owner applies for an LHT Energy-Efficient Rehab Loan, which is offered at an interest rate between prime and 4 points over prime. The applicant then contracts with an LHT-approved representative to conduct a Home Energy Rating System (HERS) inspection and initial energy rating. The HERS rater makes it simple for property owners by outlining various improvements that can be made that will have a maximum impact at a minimal cost.

Once the recommendations are made, the applicant consults with an architect or contractor and then submits the scope of work to LHT for approval. Once the loan is approved and improvements have been applied to the property, a post HERS test will be conducted on the rehabilitated property to measure the energy efficiency.

Interested in applying for an energy efficient rehab loan or know someone who is? Click here for more information, or contact us at 843-973-7285 or info@lowcountryhousingtrust.org.

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February 1, 2012

Sales of Foreclosed Homes Decreases Across U.S

Charleston affordable housingSales of foreclosed homes across the U.S. fell from 30% of all residential sales in the third quarter of 2010 to 20% of all sales in the same period for 2011, according to RealtyTrac, a national foreclosure tracking firm.

In South Carolina, sales of foreclosed homes accounted for 10.25% of all residential sales for the third quarter of 2011. That’s way down from 29.8% for the same period in 2010.

This rate is pretty low, when you consider Nevada, California and Arizona had the highest percentage of foreclosure sales for the third quarter at 57%, 44% and 43% respectively, RealtyTrac said.

So what are people paying for a foreclosed home? The U.S. average price for a foreclosed home is $165,322. In South Carolina, it’s $136,021.

In data recently posted by the Charleston Regional Business Journal, foreclosed homes in the Lowcountry (within Berkeley, Charleston and Dorchester counties) could be purchased at a discounted rate of 27.95-29% of homes not in foreclosure. Foreclosed homes with the steepest discounted rates – up to 37.2% — could be found in the Midlands.

Would you ever consider purchasing a foreclosed home for the savings? Why or why not?
Neighborhoods across the region negatively impacted by foreclosed properties have begun to see stabilization of home values through a $7.4 million dollar infusion from the U.S. Housing and Urban Development’s Neighborhood Stabilization Program (NSP).

The Lowcountry Housing Trust has been acting as a lead entity with the U.S. Housing and Urban Development’s Neighborhood Stabilization Program (NSP) for the tri-county. We have helped administer funds for this program in partnership with the S.C. State Housing Finance and Development Authority.  NSP funding is provided through HUD’s Community Development Block Grant Program under President George Bush’s Housing and Economic Recovery Act of 2008. A total of $3.92 billion was distributed to state and local governments across the country.

The tri-county’s NSP award was the result of a regional collaboration. To date, LHT and its 10 partners have purchased and rehabilitated or redeveloped 62 properties since implementation of the program began in September 2009. Fifty of the units have been rented, four have been sold and eight are currently available for sale.

For more information about Lowcountry Housing Trust, please visit www.lowcountryhousingtrust.org.

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January 25, 2012

Congress Urged to Permanently Extend Act to Protect Renters Living in a Foreclosed Property

Charleston affordable housingAs the second session of the 112th Congress begins, affordable housing advocates will be urging Congress to pass many initiatives; among them, to permanently extend the Protecting Tenants in Foreclosure Act.

The National Low Income Housing Coalition recently released a fact sheet regarding this issue. Here are a few highlights:

  • Research reveals that renters comprise 40% of the families affected by foreclosure. These families have continued to pay their rent and are caught off guard when suddenly asked to vacate their rental property with only a few days’ notice. They are unaware their landlord has fallen behind on mortgage payments.
  • Families who are put in this type of situation are the focus of the Protecting Tenants in Foreclosure Act (PTFA), which is set to expire in 2014. Under this act, which was first proposed in May 2009, most tenants now have the right to remain in the home for the remainder of their lease, or at least 90 days. The PTFA requires the immediate successor in interest at foreclosure to provide bona fide tenants with a notice 90 days before requiring them to vacate the property, and allows tenants with leases to occupy the property until the end of the lease term.

In addition to addressing whether to permanently extend the PTFA protections, Congress also will address whether to include a proposed private right of action for tenants whose rights under the PTFA have been violated.

For more information on this issue, please call us at 843-973-7285, or email us at info@lowcountryhousingtrust.org.

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January 18, 2012

Affordable Housing and Homeless Children

Charleston Affordable HousingA recently released report called America’s Youngest Outcasts calls attention to the serious issue of child homelessness. The report describes homeless children from birth to age 18 who are accompanied by one or more parents or caregivers. By definition, this is a homeless family.

Published by the National Center on Homelessness, the report reveals more than 1.6 million children are homeless in America: 1 in 45 children. It says 42% of homeless children are age 6 or younger, and research establishes a strong connection between a young child’s early experiences and the developing structure of his or her brain. According to a study by the Center on the Developing Child at Harvard University, early experiences determine whether a child’s brain architecture will provide a strong or weak foundation for all future learning, behavior and health.

The authors cite poverty and a shortage of affordable housing as the two fundamental causes of child homelessness and attribute the recent spike in the number of homeless children to the Great Recession. Between 2007 and 2010, the United States saw an increase of 448,000 homeless children. Only five states saw a decline in the number of homeless children, and in 25 states, child homelessness increased by 50% or more.

The 124-page report also ranks each state across four domains: a score of 1 being the best, 50 being the worst. It also gives each state a composite rank, based on the four domains.

Here is how South Carolina ranks:

Category                                                                                                           Rank
Extent of Child Homelessness (adjusted for population size)    26
Child Well-Being                                                                                            40
Risk for Child Homelessness                                                                     48
State Policy and Planning Efforts                                                            26
Composite                                                                                                       37

South Carolina ranks pretty high in several categories, and that’s not a good thing. Click the link to find out more information on America’s Youngest Outcasts.

Please contact us at Lowcountry Housing Trust if you’re interested in finding out more about affordable housing options in the Lowcountry. We’d love to tell you what we do and show you ways that you can get involved, too.

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January 11, 2012

Grants Awarded to Develop Communities

Charleston affordable HousingThe state announced Jan. 5, 2012 that 11 local governments across South Carolina were together awarded $2.2 million in Community Development Block Grants. Berkeley County was the only county in the Lowcountry that was awarded funding; however, it did receive one of the largest grants at $500,000.

The federal Department of Housing and Urban Development selected the recipients of the grants through a statewide competition. Recipient communities are required to provide at least 10% matching funds. The state also estimates more than 70% of the CDBG funding will assist low-income residents. They say it will help improve quality of life within communities, as well as help create a more competitive environment for creating jobs.

The announcement comes on the heels of a recent article in the New York Times that pointed out the federal government’s decision to reduce CDBG funding. It said this year the government is giving out just $2.9 billion — a billion dollars less than it gave two years ago.

Here in the Lowcountry, the CDBG and HOME programs have made a substantial impact on our community in the form of infrastructure development, the creation and rehabilitation of affordable housing, the investment in small business start-ups and the support of nonprofit organizations. All of these matters have contributed to the revitalization of our communities, fostered economic development opportunities and improved the delivery of health and human services. In the city of Charleston, more than $400 million has been leveraged and reinvested in the community over the last 13 years through the allocation of these grants.

The CDBG program is the most versatile federal grant available to local communities. The grant has assisted in the redevelopment of hotels located in the heart of downtown neighborhoods, contributing to employment, entrepreneurial opportunities and community revitalization. The HOME grant has leveraged private-sector financing providing both rental and ownership housing for persons of low and moderate incomes.

In addition, the city of Charleston, city of North Charleston, town of Summerville and Charleston County are all direct recipients of CDBG funds, but they do not have to go through the statewide competitive process.

 

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January 3, 2012

The Mortgage Rate Rollercoaster and Its Impact on Pending Home Sales

The chart pictured is NOT a side view of a rollercoaster ride at a new theme park. It’s a look back at annual average interest rates on Freddie Mac’s 30-year fixed-rate mortgages since 1971.

You can see rates took off on a pretty steep climb from just under 8% in 1971 to a peak of 16.6% in 1981. And it was a bumpy ride down from 16.6% to a plateau around 10.32% during the late 1980s. Then it went down to 8.05% in 2000 and finally down to its 2011 average of 4.45%.

This rollercoaster ride and its affect on home sales were the two big stories in the final week of 2011: Home Sales Contracts Continue to Rise in Mortgage News Daily and Mortgage Rates Finish the Year Near Historic Lows in Housing Wire.

In Mortgage News, the National Association of Realtors announced that nationwide pending home sales in November reached the highest levels seen in 19 months.

In the Housing Wire article, Frank Nothaft, vice president and chief economist at Freddie Mac said, “Mortgage rates ended the year hovering near historic lows in an already affordable housing market.”

While the near record low mortgage rates do make buying a home easier for some individuals, there are still so many more out there in our region and across the nation that cannot afford to purchase a home of their own and struggle to rent an apartment.

Housing is the single biggest expense for most households. Lowcountry Housing Trust believes to truly transform economic conditions in low-wealth communities, there must be the availability of safe, decent, energy efficient housing that is affordable to a community’s residents. This enables them to first meet their basic human needs of food and shelter, and then secondly to build assets through homeownership, business ownership, saving and investing.

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December 27, 2011

Charitable Giving Is Up, But Still Has Far to Climb

Charitable giving in the U.S. increased 3.8% in 2010, according to a recent annual report released by the Center on Philanthropy at Indiana University.

The slight increase came after two straight years of decline. And while it’s a positive step in the right direction, the Center on Philanthropy estimates it will take seven more years before nonprofits are back to where they were in 2007.

The recession has impacted almost every individual’s and every organization’s ability to give. Although in a recent USA Today article, almost seven in 10 adults surveyed say it’s important to give because of the recession.

The numbers for 2010:

  • Total charitable giving in the U.S. went up 3.8% to $290.8 billion (in inflation adjusted dollars).
  • Annual individual giving increased 2.7% to $211.8 billion.
  • Annual corporate giving increased 10.6% to $15.3 billion.
  • Number of volunteers decreased about 1% to 62.8 million.

Source: USA Today

What’s been your approach for giving to nonprofits and charitable organizations throughout the recession? Did you stop giving, have you started again and what causes are important to you? Let us know!

If you’re interested in finding out more about how you can support Lowcountry Housing Trust, please click here. We’ll be happy to answer any questions you may have.

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December 19, 2011

Charleston-area Efforts Tackle “Food Deserts”

We all take it for granted that when we need milk, bread, fruit and other healthy food, most of us can jump in our car for the quick trip to the grocery store on the corner.

Check out a story in the Dec. 14 issue of the City Paper that tackles the issue of what’s called a food desert and mentions individuals and organizations in the region who are trying to do something about it — including Lowcountry Housing Trust.

If you’ve never heard of a food desert, the USDA describes it as a low-income neighborhood with high concentrations of people who are at least 1 mile from a grocery store in urban areas and 10 miles in rural areas.

The City Paper mentions our role in the fight against food deserts. We received a $500,000 capital grant in October that will be used to finance the development of food retail outlets in areas most in need of access to healthy, affordable food. We’ve already made one loan to Lowcountry Produce; the money will be used to open a produce market/restaurant in Beaufort’s old city hall.

Read the full story in the City Paper.

After you read the article, click here to visit the USDA’s food desert indicator. Zoom in on the Lowcountry and you’ll be able to click on census tracts to see the percentage of the population within each tract without access to a grocery store. In some cases, its 100%. Wow.

 

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December 14, 2011

Wear It With Pride

While standing in line at Starbucks waiting for your venti skinny triple shot vanilla latte have you seen these red, white and blue bracelets and materials on Create Jobs for USA? Launched on Nov. 1, Create Jobs for USA is a Starbucks-backed initiative in partnership with the Opportunity Finance Network.

Starbucks customers can make a donation to the fund and receive an “Indivisible” bracelet (minimum $5 donation). Those donations, plus $5 million in seed money from the Starbucks Foundation, will be used to help create and sustain jobs in underserved communities throughout the United States.

Grants provided through the Create Jobs for USA Fund will help community development financial institutions (CDFIs) make loans to community businesses that create or preserve jobs in communities across the country, including small businesses, microenterprises, nonprofits, commercial real estate developers, and affordable housing developers.

Lowcountry Housing Trust is one of two Opportunity Finance Network members in South Carolina along with the Greenville Housing Fund. This means we’ll be applying for these grants and your donations have the potential to create jobs right here in the Lowcountry.

So, make your donation, get your bracelet and then post a photo wearing your bracelet on our Facebook page!

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