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Los Angeles Accused of Criminalizing Homelessness July 15, 2009

Posted by rogerhollander in California, Housing/Homelessness.
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Published on Wednesday, July 15, 2009 by Reuters by Steve Gorman

LOS ANGELES  – Two major advocacy groups for the homeless on Tuesday ranked Los Angeles as the “meanest” city in the United States, citing a Skid Row police crackdown they say has criminalized poverty and homelessness there.

 

[A homeless activist visits "tent city", a terminus for the homeless in Ontario, a suburb outside Los Angeles, California December 19, 2007. REUTERS/Lucy Nicholson]A homeless activist visits “tent city”, a terminus for the homeless in Ontario, a suburb outside Los Angeles, California December 19, 2007. REUTERS/Lucy Nicholson

L.A.’s so-called Safer City Initiative was singled out in the groups’ report as the most egregious example of policies and practices nationwide that essentially punish people for failing to have a roof over their heads. 

Others include making it illegal to sleep, sit or store personal belongings on sidewalks and other public spaces; prohibitions against panhandling or begging; and selective enforcement of petty offenses like jaywalking and loitering.

Such measures are widespread in the face of a deep economic recession and foreclosure crisis that have increased homelessness over the past two years, according to the National Law Center on Homelessness & Poverty and the National Coalition for the Homeless.

Their report examined laws and practices in 273 cities across the country, with Los Angeles topping the list of the 10 “meanest cities” for what the study called inhumane treatment of homeless. A previous report, issued in early 2006 before the crackdown began, ranked L.A. as the 18th meanest.

According to “Homes Not Handcuffs: The Criminalization of Homelessness in U.S. Cities,” the 10 Meanest Cities in 2009 are:

1. Los Angeles
2. St. Petersburg, FL
3. Orlando, FL
4. Atlanta, GA
5. Gainesville, FL
6. Kalamazoo, MI
7. San Francisco
8. Honolulu, HI
9. Bradenton, FL
10. Berkeley 

Under the Safer City effort, thousands of L.A.’s most destitute residents have been targeted for harsh police enforcement, routinely receiving tickets for minor infractions such as the failure to obey crossing signals.

As a result, the study says, many are jailed and end up with a criminal record that makes it more difficult for them to find a job or gain access to housing.

A spokesman for Mayor Antonio Villaraigosa issued a statement dismissing the report as “short-sighted and misleading.”

Los Angeles officials have touted their Safer City effort for sharply curbing serious crime in Skid Row, a 50-block downtown area inhabited by the biggest concentration of homeless people in the country. “The city’s first priority is to protect our most vulnerable residents from violent crime,” the mayor’s statement said.

But homeless advocates say a promised strategy to ease homelessness there, including new housing and services to go with the Skid Row cleanup, have largely failed to materialize.

An estimated 40,000 people live on the streets, in abandoned buildings or in temporary shelters throughout Los Angeles, more than 5,000 of them in Skid Row. Another 8,000 make their home in that area’s short-term residential hotels, or flop houses as they were once called.

Becky Dennison, co-director of the Los Angeles Community Action Network, said the homeless population in Los Angeles has ballooned due to a lack of affordable housing, a high poverty rate and “long-standing lack of local resources.”

Tuesday’s report cited a 2007 University of California study that found L.A. was spending $6 million a year to pay for the 50 extra police officers who patrol Skid Row while budgeting just $5.7 million for homeless services.

By comparison, Dennison said, New York City has a “right to shelter” policy and invests about $200 million a year in housing and other services for the needy, resulting in a homeless population half that of Los Angeles.

© Thomson Reuters 2009

Subprime Prosecution Stops Foreclosures But Lets Goldman Sachs Off Hook May 12, 2009

Posted by rogerhollander in Criminal Justice, Economic Crisis, Housing/Homelessness.
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(Roger’s note: read this then tell me why the Bailout funds could not be used to help homeowners pay subprime mortgages so that the Attorney General could pursue criminal charges against Goldman Sachs for the sake of justice and future deterrence; instead of letting Goldman Sachs get away with breaking the law with impunity and buy their way out with the taxpayers dollars.  I am guessing that the Massachusetts AG is taking her cue from Barack Obama and his AG, Eric Holder, who would rather “reconcile” and “look forward” rather than comply with their oaths of office to defend and uphold the U.S. Constitution.)

Ryan Grim, www.huffingtonpost.com, May 12, 2009

Massachusetts Attorney General Martha Coakley won a victory against the Goldman Sachs Group Monday, forcing the financial firm to cut a $10 million check to the state and pony up $50 million to help around 700 homeowners pay subprime mortgages.

“Goldman Sachs is pleased to have resolved this matter,” says Michael DuVally, a Goldman spokesman, declining to comment further.

They were also pleased, no doubt, by the terms in the settlement that allowed Goldman to avoid admitting any wrongdoing. Letting Goldman off excuses what could have been criminal behavior, but it also brings relief to hundreds of homeowners and offers a roadmap to some sort of law-enforcement-driven solution where lawmakers have come up short.

Massachusetts Congressman Barney Frank, chairman of the House Financial Services Committee, said he wouldn’t “second guess” Coakley’s decision to settle short of criminal convictions. “I don’t know what other avenues she had available, but I will say this: Getting significant relief for 700 people is very important, both for them and for the economy. Now, that’s a legitimate consideration in getting it done more quickly than waiting for a couple years to go through the criminal procedure,” he tells the Huffington Post.

Rep. Bill Delahunt was a Massachusetts District Attorney for 23 years. He said balancing immediate justice for victims with bringing the white-collar criminals to justice can be difficult.

“You almost have to judge those on an ad hoc basis. There’s no formula,” he says in general, adding that he didn’t know enough about Coakley’s investigation to comment on her specific course of action.

“Clearly, there’s a preference to pursue them criminally because I think that creates deterrence,” he says. “You know, it’s difficult to deter a kid who’s going to rob a 7-11 store for 25 bucks but for people who are purportedly educated, or at least sophisticated, who defraud others, they’re more susceptible to being deterred.”

But the most sophisticated they are, the more they can drag out a prosecution. By the time they’re found guilty, half the victims may be out on the street, their homes foreclosed.

“It’s not always a perfect world and you can’t always secure the perfect justice,” says Delahunt. “It would appear that our attorney general did some good work that resulted in a very significant sum of money for redress by their behavior.”

Frank agrees. “I can’t tell exactly what the considerations were, but I’m inclined to think the value of getting immediate relief for 700 people and saving their homes, yeah, I’d trade off a little for that,” he says.

Goldman Sachs was not accused of originating the subprime loans in question, but rather investigated for facilitating the process by buying them and bundling them into securities without regard to whether the borrowers would be able to pay them back — or whether the borrowers or originators had followed reasonable lending practices or filed the appropriate paperwork.

“We will continue to investigate the deceptive marketing of unfair loans and the companies that facilitated the sale of those loans to consumers in the Commonwealth,” Coakley said in a statement. (Coakley’s press office did not return a call.)

The state attorney general’s office has previously pulled in more than $75 million from settlements with UBS, Morgan Stanley, Citibank, and Merrill Lynch, all related to the financial crisis.

But the U.S. attorney general would have a hard time making a similar case nationally. Coakely relied on stricter rules on subprime lenders who make “unfair” loans under state law.

Congressional Democrats hope to give the federal government the power some states now have. Last week, the House passed anti-predatory lending legislation that Coakley helped Frank’s committee draft.

“What we do in our bill is to go beyond any set of state laws,” says Frank, citing a requirement that five percent of the loan portfolio be kept by the company that originates the loan. Having that amount of skin in the game, he hopes, will persuade a lender to take a loan seriously.

The bill is now, like much else, stalled in the Senate.

Banking Committee Chairman Chris Dodd (D-Conn.) says that subprime lending reform is a lesser priority because the credit freeze has inadvertently dried up the business.

“That’s true right now but we cannot count on that being true forever,” says Frank. “You couldn’t count on getting a non-predatory loan a little while ago and it is true that the freeze has helped some. That’s true in some other areas as well. There aren’t a lot of credit default swaps being written.”

But, says Frank, the financial industry won’t have forgotten how to write a bad loan once the market thaws.

“It is important to get laws on the books, because this de facto moratorium isn’t going to last forever,” he says.

Ryan Grim is the author of the forthcoming book This Is Your Country On Drugs: The Secret History of Getting High in America

Hidden Homeless Emerge as US Economy Worsens March 26, 2009

Posted by rogerhollander in Housing/Homelessness.
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by Steve Gorman and Suzanne Hurt

SACRAMENTO, Calif. – Emergency shelters brimming with homeless people in California’s capital are quietly turning away more than 200 women and children a night in a sign of the deteriorating U.S. economy.

 

[A homeless person sleeps under a white blanket next to piles of garbage bags and a statue of Jesus outside St. Michael Roman Catholic Church Thursday, March 26, 2009 in New York. (AP Photo/Mark Lennihan)]A homeless person sleeps under a white blanket next to piles of garbage bags and a statue of Jesus outside St. Michael Roman Catholic Church Thursday, March 26, 2009 in New York. (AP Photo/Mark Lennihan)

The displaced individuals on waiting lists at St. John’s Shelter and other facilities often turn instead to relatives or friends for temporary living quarters, perhaps moving into a spare room, garage or trailer. The less fortunate might sleep in their cars or a vacant storage unit. 

They are the hidden homeless. And their ranks appear to be growing as rising joblessness and mortgage foreclosures take their toll in Sacramento and other U.S. cities, experts say.

U.S. President Barack Obama recognized the trend in his televised news conference this week, saying, “the homeless problem was bad even when the economy was good,” and he vowed to bring greater government resources to bear to deal with it.

“It is not acceptable for children and families to be without a roof over their heads in a country as wealthy as ours,” he said.

A “tent city” of up to 200 homeless in Sacramento was thrust into the media spotlight last month as a symbol of the battered U.S. economy. California authorities said this week they would shut down the illegal settlement and find other shelter for its residents, most of them chronically homeless.

Homeless advocates say they expect such encampments, which already exist around the country, to spread as the housing crisis worsens and shelters fill up.

“I think there’s a slight trickle of people who’ve been at risk of homelessness who are winding up in tent cities or knocking on shelter doors,” said Michael Stoops, director of the National Coalition for the Homeless in Washington. “I expect a tremendous increase in homelessness over the next couple of years.”

Stoops, who has worked with the homeless for 35 years, said the newly dispossessed often retain some income and seek initially to downsize or find cheaper accommodations.

WORST NIGHTMARE

“Their worst nightmare would be winding up on the streets, in a tent city or a shelter,” he said. “That’s the last stage. They will do everything they can before that happens to them.”

Maria Romero, 52, who held a series of low-paying jobs over the years before steady work became hard to find, said she lived out of her automobile for a year before reluctantly moving to St. John’s Shelter in January.

“I’d rather be by myself. My car was my own space,” she said, adding she would never consider living in a tent city.

“It wouldn’t be safe, especially for a single female,” said Romero, a high school dropout forced by circumstance to live in a car or shelter more than once in her life.

Her experience illustrates the complexity of homelessness in America, where the most economically vulnerable are often the first to fall through the cracks during hard times.

The latest national figures, in a January report by the National Alliance to End Homelessness, actually showed a 10 percent decline in the homeless population two years ago — from about 744,000 per night in January 2005 to nearly 672,000 per night in January 2007.

But 36 of the 50 states reported increases and homeless advocates worry that the national trend will be reversed because of the deepening recession and housing crisis.

As of 2007, the report said, 42 percent of homeless people in the United States, and 70 percent of those in California, slept on the streets, in cars, tents or abandoned buildings.

The “Skid Row” area of Los Angeles is thought to have the nation’s highest concentration of homeless, with more than 5,000 counted in that 50-block area in 2007.

Experts say it typically takes six to eight months to go from losing one’s home to turning up at a shelter doorstep. Some already have noticed more than a trickle.

RUN ON THE SHELTERS

“I’ve never seen it like this before, and I have 30 years of experience working with the homeless,” said Darlene Newsom, head of the UMOM Day Centers emergency housing project in Phoenix, Arizona, where the number of homeless families seeking services has doubled in the past three months.

Loaves & Fishes, a Sacramento charity that supports the homeless, now provides a free lunch to about 650 people a day, up about 10 percent from a year ago, but private donations to the organization have been flat.

“We are struggling to keep our doors open,” director Joan Burke said.

Nearby St. John’s Shelter, which caters to women and children, has been running at or near capacity for months — filling roughly 100 beds a night — with a waiting list well over twice that long, case manager Kellie Dockendorf said.

This is up from the daily average of 80 women and children turned away in 2008. And getting in can take up to 45 days.

The mix of clientele is changing too, she said.

“We’re getting a lot more working people. We’re getting more people with education. We’re getting a lot more people who are working part-time or not getting enough hours to pay their bills,” she said.

Keysia Bell, 38, had made a living as a caregiver for the elderly until full-time work became harder to find.

After a period of paying to stay with friends or relatives for weeks or months at a time, then renting a house she could no longer afford, she ended up at St. John’s two months ago with her 17-year-old and 10-month-old daughters.

“I’m out of a job. I’m out of a place to stay. I have a baby daughter, and it all just became overwhelming,” she said.

(Additional reporting by Tim Gaynor in Phoenix; Editing by Doina Chiacu and Mary Milliken)