Coronavirus: Housing Crisis

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Addie
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Coronavirus: Housing Crisis

#1

Post by Addie »

The Week - Ryan Cooper: The next phase of America's coronavirus problem is a massive housing crisis

Thursday brought yet more grim economic numbers, with 2.98 million Americans filing for unemployment over the last week. That makes for 36.5 million claims since the beginning of the coronavirus crisis (though millions no doubt have not managed to make it onto the program rolls, or are not receiving benefits even if they have). A recent Federal Reserve study found that nearly 40 percent of households making $40,000 per year or less lost a job in March.

Millions of people are already unable to afford their rent or mortgage payments, and tens of millions more will be unable to in a few months if nothing changes. America is facing a major housing crisis if it doesn't get its act together. Either the economic rescue programs need to be strengthened and extended, or we need some kind of cancellation of rent and mortgage payments until things return to normal, or both.

There have been several programs and rules passed already intended to help homeowners and renters. But, as usual in American policymaking, these policies are haphazard, over-complicated, and incomplete. For renters, evictions have been temporarily banned in many cities and states, and some places like Philadelphia have begun to extend rental payment assistance for lower-income people. But rent payments have only been paused in most places, not canceled, and there hasn't been any nationwide policy. Landlords are already champing at the bit to evict people.

For homeowners, mortgage holders or servicers have been banned from foreclosing on people for 60 days starting March 18. Homeowners whose loans are backed by the government (which is most of them) can apply for forbearance, which puts their payments on hold for up to a year. However, the stipulations are complicated and unclear. Mortgage servicers (businesses that collect the loan payments and administer paperwork for the true loan owner) are reportedly misleading homeowners by telling them all missed payments will be due at the end of the forbearance period, when in fact there are several repayment options, including paying them at the end of the loan term.
"The very least you can do in your life is to figure out what you hope for." - Barbara Kingsolver

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neonzx
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Re: Coronavirus: Housing Crisis

#2

Post by neonzx »

I've been lucky. Only one of my tenants was impacted by the shutdown. And, after trying for 3 weeks, she successfully managed to get approved for Florida Unemployment + the Fed $600/wk bump.

Of course, none of my properties are in insane markets nor do I have mortgages so even if I had to forgive a month or two, it wouldn't hurt much.

I wouldn't want to be a landlord in, say, San Francisco. :nope:
To which Trump replied, Fuck the law. I don't give a fuck about the law. I want my fucking money.

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Lani
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Re: Coronavirus: Housing Crisis

#3

Post by Lani »

I was relieved to learn that the Hawaii moratorium on residential evictions will continue through June. So many people have lost their jobs, and the unemployment checks can take a month or more to reach people. It can take several days just to access the computer system and even longer to get a person on the phone.

The economy won't be improving by July, so I hope there's another extension of the moratorium. And something will have to be done to protect landlord-owners who now can't pay their mortgages.

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Sterngard Friegen
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Re: Coronavirus: Housing Crisis

#4

Post by Sterngard Friegen »

I represent commercial landlords.

They are fucked.

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Sugar Magnolia
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Re: Coronavirus: Housing Crisis

#5

Post by Sugar Magnolia »

Sterngard Friegen wrote:
Thu May 21, 2020 10:18 pm
I represent commercial landlords.

They are fucked.
Residential too. We have one tenant who hasn't paid rent for 3 months. I doubt we'll see a penny of it.

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neonzx
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Re: Coronavirus: Housing Crisis

#6

Post by neonzx »

Sugar Magnolia wrote:
Fri May 22, 2020 8:49 am
Residential too. We have one tenant who hasn't paid rent for 3 months. I doubt we'll see a penny of it.
That's not good. Of course, I don't know your tenant or the situation, but I've found that sometimes tenants need guidance (someone to hold their hand a bit -- being a landlord can at times be like babysitting). Maybe they are just not knowledgeable of how to seek/apply-for assistance, be it unemployment or food stamps or whatever?

But, yeah, if you let it go three months, you're probably not going to see that money.
To which Trump replied, Fuck the law. I don't give a fuck about the law. I want my fucking money.

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Sugar Magnolia
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Re: Coronavirus: Housing Crisis

#7

Post by Sugar Magnolia »

neonzx wrote:
Fri May 22, 2020 9:16 am
Sugar Magnolia wrote:
Fri May 22, 2020 8:49 am
Residential too. We have one tenant who hasn't paid rent for 3 months. I doubt we'll see a penny of it.
That's not good. Of course, I don't know your tenant or the situation, but I've found that sometimes tenants need guidance (someone to hold their hand a bit -- being a landlord can at times be like babysitting). Maybe they are just not knowledgeable of how to seek/apply-for assistance, be it unemployment or food stamps or whatever?

But, yeah, if you let it go three months, you're probably not going to see that money.
He hasn't been laid off or lost work, he just quit paying when they banned evictions. They just extended the ban until June 1 too, so we're fucked for another month of rent. His lease was up in April though, so he's gone the day they lift the ban.

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neonzx
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Re: Coronavirus: Housing Crisis

#8

Post by neonzx »

Sugar Magnolia wrote:
Fri May 22, 2020 9:32 am
neonzx wrote:
Fri May 22, 2020 9:16 am
Sugar Magnolia wrote:
Fri May 22, 2020 8:49 am
Residential too. We have one tenant who hasn't paid rent for 3 months. I doubt we'll see a penny of it.
That's not good. Of course, I don't know your tenant or the situation, but I've found that sometimes tenants need guidance (someone to hold their hand a bit -- being a landlord can at times be like babysitting). Maybe they are just not knowledgeable of how to seek/apply-for assistance, be it unemployment or food stamps or whatever?

But, yeah, if you let it go three months, you're probably not going to see that money.
He hasn't been laid off or lost work, he just quit paying when they banned evictions. They just extended the ban until June 1 too, so we're fucked for another month of rent. His lease was up in April though, so he's gone the day they lift the ban.
Wow, he didn't lose his job or income but he just stopped paying knowing you couldn't kick him out. Dick move on his part.

He's gainfully employed? Sue him. Yeah, it costs upfront for legal and court, but then garnish the fuck out of his wages and get it all back -- plus making it nearly impossible for him to rent with any reputable landlord cause it pops up on background checks.

But you know what he's counting on? That you won't. And he'll pull this game at the next place he moves to.
To which Trump replied, Fuck the law. I don't give a fuck about the law. I want my fucking money.

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Sugar Magnolia
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Re: Coronavirus: Housing Crisis

#9

Post by Sugar Magnolia »

neonzx wrote:
Fri May 22, 2020 10:05 am
Sugar Magnolia wrote:
Fri May 22, 2020 9:32 am
neonzx wrote:
Fri May 22, 2020 9:16 am

That's not good. Of course, I don't know your tenant or the situation, but I've found that sometimes tenants need guidance (someone to hold their hand a bit -- being a landlord can at times be like babysitting). Maybe they are just not knowledgeable of how to seek/apply-for assistance, be it unemployment or food stamps or whatever?

But, yeah, if you let it go three months, you're probably not going to see that money.
He hasn't been laid off or lost work, he just quit paying when they banned evictions. They just extended the ban until June 1 too, so we're fucked for another month of rent. His lease was up in April though, so he's gone the day they lift the ban.
Wow, he didn't lose his job or income but he just stopped paying knowing you couldn't kick him out. Dick move on his part.

He's gainfully employed? Sue him. Yeah, it costs upfront for legal and court, but then garnish the fuck out of his wages and get it all back -- plus making it nearly impossible for him to rent with any reputable landlord cause it pops up on background checks.

But you know what he's counting on? That you won't. And he'll pull this game at the next place he moves to.
Yeah, I've already talked to our attorney, who looked into it, and that's sort of a dead end for suing him. He's self-employed as a carpenter and has apparently only been accepting cash for jobs for the last couple of months. I've already eaten into his deposit for the work the attorney has already done. The rest of it would be gone just on filing fees and stuff once the courts open up and then no way to prove he had/has any income or assets. He was actually a fabulous tenant until they suspended the evictions.

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Addie
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Re: Coronavirus: Housing Crisis

#10

Post by Addie »

Salon: Study projects homelessness will rise 45% in just one year due to coronavirus unemployment

“This is unprecedented. No one living has seen an increase of 10% of unemployment in a month," the researcher said


The rash of layoffs sparked by the coronavirus pandemic and statewide lockdowns are expected to increase homelessness by up to 45%, according to a new analysis by an economist at Columbia University.

The analysis estimates that about 250,000 people could be left homeless as a result of skyrocketing unemployment. The Department of Housing and Urban Development estimated that there were 568,000 homeless people in the country in January, before the outbreak.

Dr. Brendan O'Flaherty, a professor of economics who has studied homelessness for decades and conducted the analysis, said the projected rise would be "unprecedented." ...

O'Flaherty's model relied on homelessness data in an earlier study published by the Journal of Housing Economics in 2017, which found that every 1% increase to the unemployment rate corresponded with the homelessness rate rising by 0.65 per 10,000 people. The analysis used unemployment projections from the Economic Policy Institute, which predicted a 15.6% rate by July, and the Congressional Budget Office, which similarly projected a 16% unemployment rate by the summer.
"The very least you can do in your life is to figure out what you hope for." - Barbara Kingsolver

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RTH10260
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Re: Coronavirus: Housing Crisis

#11

Post by RTH10260 »

Didn't his highlowness The Stable Genuius promise to come and solve the homeless crisis, at least in California, only a few months back :?:

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Addie
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Re: Coronavirus: Housing Crisis

#12

Post by Addie »

Curbed: The economy is tanking. So why aren’t home prices dropping?

COVID-19 has caused volatility in seemingly everything but housing


More than 38 million Americans have lost their jobs since the outbreak of the COVID-19 pandemic. Stay-at-home orders have ground much of the economy to a halt, prompting trillions in stimulus spending by the federal government in hopes of keeping industries afloat.

But anyone hoping a silver lining to the economic chaos would be deals in the housing market have thus far been disappointed; for the week ending May 9, the median listing price in the United States was up 1.4 percent year-over-year, according to Realtor.com. Existing home sales in April fell by almost 18 percent, but prices rose 7.4 percent compared to a year ago.

Why isn’t the tanking economy bringing home prices down with it? It’s a reasonable question given that so much of the economy moves in lockstep, and the last economic crisis in 2008 sent the housing market into free fall.

So what’s different this time around? Let’s break it down. The price of anything is a function of the relationship between supply and demand. Generally, home prices have been pushed up over the last 5 years by high demand created by a then-booming economy and a low supply of housing for sale, due in part to relatively low levels of housing construction and available land on which to build.
"The very least you can do in your life is to figure out what you hope for." - Barbara Kingsolver

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pipistrelle
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Re: Coronavirus: Housing Crisis

#13

Post by pipistrelle »

neonzx wrote:
Fri May 22, 2020 9:16 am
Sugar Magnolia wrote:
Fri May 22, 2020 8:49 am
Residential too. We have one tenant who hasn't paid rent for 3 months. I doubt we'll see a penny of it.
That's not good. Of course, I don't know your tenant or the situation, but I've found that sometimes tenants need guidance (someone to hold their hand a bit -- being a landlord can at times be like babysitting). Maybe they are just not knowledgeable of how to seek/apply-for assistance, be it unemployment or food stamps or whatever?
Early on our building management put out fliers with contact info for agencies that offer tenant aid. I wouldn't live in this building if my finances were that close, though.

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Addie
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Re: Coronavirus: Housing Crisis

#14

Post by Addie »

ProPublica: Rent Is Still Due in Kushnerville

Government stimulus checks and a temporary ban on evictions are tiding over the suddenly jobless residents of housing complexes owned by Jared Kushner’s company. But what will happen when both soon run out?


“This is tough,” he said. “It’s tough. But I’m hoping it’ll be over in a month. They say it’s supposed to be over in a month.”

More than a month later, it is not over. And there have been few better places to track the economic unraveling and social stress of the pandemic lockdowns than the large housing complex where Maddox lives, Dutch Village, and a handful of other complexes in the Baltimore area owned by the same company. That’s partly because these complexes are home to exactly the sort of workers who have been most affected by the crisis: both those whose jobs are likeliest to have been eliminated — casino workers, food-service workers, hotel housekeepers — and those whose jobs are likeliest to have been plunged into at-risk overdrive — Amazon warehouse workers, delivery drivers, nursing home aides, cleaners.

Here, there is nary a telecommuting professional to be found. Here, there is no escaping the upheaval. The need in the complexes is so great that one of them, Cove Village, has become a main distribution spot for free food from the Baltimore County school department: Every Monday through Thursday, a truck arrives at Cove Village and parks on Driftwood Court from 11 a.m. to 1 p.m. Families line up for a breakfast, lunch and snack, with an extra set given out on Thursday to tide kids over on Friday.

There is another reason to track the upheaval in these complexes. It happens that they are owned by the company led until not long ago by the person now tasked with overseeing the federal government’s response to the crisis: Jared Kushner, son-in-law of President Donald Trump. The Kushner Companies, in which Jared still holds a large financial stake, has come under scrutiny in recent years for its litigious pursuit of tenants who allegedly owed back rent or broke leases, and for the poor conditions of many of the units. It was even the subject of a Netflix television documentary that aired just as the lockdowns first went into effect.

But the pandemic has now thrust Kushnerville, which consists of nine complexes in inner-suburban Baltimore County, some with as many as 1,000 units each, into unfamiliar territory. For years, tenants have learned to dread the aggressive tactics of their landlord: late-payment notices and court summons slapped on their doors, late fees and “court costs” and attorney fees added to bills, and, in some cases, even threats of jail time. Disclosure of those tactics led to a class-action lawsuit and a lawsuit by the state attorney general. The Kushner entities have denied wrongdoing. (A judge this year denied the plaintiffs’ bid to form a class, which is on appeal; the attorney general’s suit is ongoing.)
"The very least you can do in your life is to figure out what you hope for." - Barbara Kingsolver

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Addie
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Re: Coronavirus: Housing Crisis

#15

Post by Addie »

New York Times: An ‘Avalanche of Evictions’ Could Be Bearing Down on America’s Renters

The economic downturn is shaping up to be particularly devastating for renters, who are more likely to be lower-income and work hourly jobs cut during the pandemic.


EUCLID, Ohio — The United States, already wrestling with an economic collapse not seen in a generation, is facing a wave of evictions as government relief payments and legal protections run out for millions of out-of-work Americans who have little financial cushion and few choices when looking for new housing.

The hardest hit are tenants who had low incomes and little savings even before the pandemic, and whose housing costs ate up more of their paychecks. They were also more likely to work in industries where job losses have been particularly severe.

Temporary government assistance has helped, as have government orders that put evictions on hold in many cities. But evictions will soon be allowed in about half of the states, according to Emily A. Benfer, a housing expert and associate professor at Columbia Law School who is tracking eviction policies.

“I think we will enter into a severe renter crisis and very quickly,” Professor Benfer said. Without a new round of government intervention, she added, “we will have an avalanche of evictions across the country.”

That means more and more families may soon experience the dreaded eviction notice on the front door, the stomach-turning knock from sheriff’s deputies, the possessions piled up on the sidewalk. They will face displacement at a time when people are still being urged to stay at home to keep themselves and their communities safe, with the death toll from the virus now having passed 100,000 in the United States.
"The very least you can do in your life is to figure out what you hope for." - Barbara Kingsolver

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RTH10260
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Re: Coronavirus: Housing Crisis

#16

Post by RTH10260 »

Question: what do the landlords have in mind about renting out places they just had an eviction on, there will be hardly any takers in this kind of market. I guess there will be some shifting around when shopping for cheaper locations to live in.

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