Foreclosures Are Leading to a Shortage of Affordable Housing

January 30th, 2009 | Tags: Foreclosures

Social service officials are saying that foreclosures are largely responsible for the shortage in affordable housing. On an average each night there are 18,000 homeless needing shelter in Kansas as per the findings of Statewide Homeless Coalition based in Kansas. The national count of the homeless fell by 11% in 2008 but the analysts say that the worsening of the foreclosure situation is causing another downturn.

Shara Gonzales of New Beginnings of Hutchinson says that the problem of homelessness is focusing on two groups – those who have got into the system and cannot break out and those who are losing jobs and or homes. She said, “This new mortgage crisis is going to make it worse. We just had two foreclosures move into our low-income housing.”

Communities will benefit if they encourage economic development that would create jobs and increase the tax base. Those with low income feel the pinch the most. The middle-class looking for affordable houses are not spared either. Few of the communities are taking recourse to tax credit to boost the issue of affordable housing and its availability. Senator Pete Brungardt (Republican-Salina) said that those communities that can increase their number of affordable houses are sure to gain economically. People would then be able to live in Salina rather than commuting to and fro.

Tax credits are successful in the urban areas of Kansas where the average income is high. In many instances the landlords reduce the rent to attract tenants.

Transitional houses are best for those hunting for immediate shelter after being evicted because of foreclosure or job loss. They want to stay for about six months to two years. They will require help in rent and other facilities before they are able to reach a point of financial stability.

Gonzales said, “We can immediately re-house people within the rental community if they have resources. If they don’t have financial resources, then we have to develop those. That’s what we use transitional housing for. It buys us time.”

Emmaus House is a non-profit shelter home in Garden City. It can give assistance to about 24 to 30 people for three days. The help is inclusive of food. But after that they cannot show the path. Many are sent to Dodge City to get them back on their feet. There is a shortage of rented accommodation in Garden City. For employers it is a problem if workers do not stay in the area of work.