The Poor Takes the Brunt of the Mortgage Crisis

The mortgage crisis is a direct result of President Bush's pledge to increase minority home ownership during his term as President. He called upon the private sector to make it happen. They responded with a slew of mortgage programs that only made sense to them. They tailored loans to the borrower's ability to pay--under the false belief that over time --when either their earnings and/or credit rating or the value of their property increased --they could sell or refinance their homes. Neither happened. Low income people are often the last hired and the first fired and they were charged unreasonably high closing costs that ate into their equity. I know of one instance where a purchaser owing less then $35,000 on her home ended up with a loan of $108,000 on a house valued at $65,000. After 3 refinances she had paid $42,000 in loan fees. Ironically the house sits vacant because the bank cannot get clear title. The staunch reality is that Bush went to the private sector because the Affordable Housing Industry had failed the many people he intended to serve. We will explore this issue in future blogs. Read more!

People's Platform

Purpose Statement: The People’s Platform is a GRASSROOTS effort, developed by the people that: 1. Identifies strategies and policies to address the needs of inner-city communities 2. Creates Accountability 3. Serves as a guide for action The purpose is to “From the Bottom Up” : - choose the issues, decide the political options and present our ideas for making life better for all of us. - become an open, collaborative form of governance where "people" create the visions and solutions from which candidates act for all of us to live in mutual well being. The Goal End Poverty by year 2020. Vision – The City of Richmond as a community without poverty that confronts generational poverty head on. PROBLEM: Poverty contributes to all of the problems within the city. Failing Public Schools, Crime, and Inadequate Housing all create a burden on each tax payer. Poverty matters, not only to the poor, but to entire communities because of the social costs involved. Ironically, Ending Poverty has never been a priority for local government. Supporting Data: Poverty The poverty threshold for a four-person family unit is $21,203; $16,530 for a three-person family unit; $13,340 for a two-person family unit and for one individual it is 10,594. - 22.9% or over 2 in 10 Richmond residents live in poverty; - 30.1 % of Children Age 0-17 in Richmond live in Poverty - 51.8% of Female Householders with Children Under Age 5 live in Poverty In 2005 over 40,500 or 59.4 % of the poor were black compared to 27,000 or 40.6% were white . - 17.6%) of all blacks lived n poverty compared to 6% of all whites - The poverty growth rate from 2005 to 2007 was 16% Jobs The unemployment rate for VA for June 2008 was 4.7% while Richmond rate was 6.6% - Nearly 6 in 10 African American Youth in Richmond are unemployed. - Richmond’s share of total jobs in the region dropped from 45% to 31% from 1990 to 2005 - Richmond has lost of 5, 000 jobs to Henrico and Chesterfield counties since 2000. Housing - 1 in 3 white households spent 30% of their income for housing - 1 in 7 black households spent 50% of their income for housing The National Low Income Housing Coalition reports that - a person needs to earn at least $15.15 an hour to afford a two-bedroom apartment and utilities in the Richmond metropolitan area. - The average wage for renters in the Richmond area is $13.21 an hour. It's not enough for a one-bedroom apartment, let alone a two-bedroom. - Virginia families moving from welfare to work typically earn $6.39 per hour. Note: The current federal minimum wage was increased to $6.55 an hour on July 24, 2008. Crime: Nearly 12,000 inmates are release from prision each year in the state of Virginia - Over 1/3 are released to Richmond, returning to the same neighborhood where they committed a crime - 67 percent of inmates released from jails and prisons in the country are back behind bars within three years Of the 11,432 inmates released from prison in 2004: - 38 % were Caucasian - 61 % were African-American - The average age at time of release was 35.3 years - 49 % had committed a (non-violent ) crime - 24 % had committed a (drug) related crime - 27 % had committed a (violent offense) - 52 % did not have a high school diploma or GED - 13.6 % had never worked - 75% abused alcohol or drugs - 19 % had a chronic or communicable disease - 15 % had a mental illness or mental disorder The Strategy: To gain consensus on a comprehensive approach to End Poverty by 2020 in Richmond that: - Reduces the negative consequences of poverty for children - Result in opportunities for families to achieve economic success. - Assists families in need of immediate help. - Provides short-term assistance, and addresses long-term needs. - Supports a wide range of approaches—Including - New Programs, - Partnerships with the Private Sector, - Community-Based Efforts, and Tax-Based Strategies. Results from Small Groups: Below are the results of those small group sessions which form the centerpiece of the "Peoples Platform". Our belief is that the "City Of The Future" can only be created through eliminating poverty. Read more! Crime and Prevention: Premise: “Community based programs that provide alternatives to crime must be equally supported and operated in tandem with aggressive Public Safety initiatives. Ex-offenders must be returned to society and their families as quickly as possible with the skills and tools to be productive and successful.” Small Group Recommendations: - Fully fund a Federal Bonding Program and aggressively use it. - Provide support to grassroots community-based organizations that are involved in crime prevention and re-entry programs that connect Department of Labor Work-Force Investment Act (DOL WIA) transition process to employment. - Department of Corrections and Parole Officers must be accountable to the transition process in a more substantive manner; not just custodial in nature. - The employment goal must be self-sufficiency with a living wage. - Revise city policies that will provide strong opportunities that are measureable and reasonable. Note: All of the above apply to Youth ex-offenders also. Education: Premise: “Community involvement in education is important to the success of public schools. Schools should bring together many partners to offer a range of supports and opportunities to children, youth, families and communities. "The construction and renovation of schools should provide economic benefits for neighborhood residents and opportunities to prepare students for the world of work”. Small Group Recommendations: Problems Identified in Education 1. Under Performing and/or not enough Guidance Counselors a) The Community Needs to Advocate for Better Counseling Services at Middle/High levels b) Speak during public comment at school board meetings; email school board reps/administration on increasing resources to employ counselors and to NOT cut the budgets as well as city council/state officials c) Encouraging students to graduate at all levels, reaching out to parents/students at home (meet them where they are---[HOW????] d) Provide resources that allow counselors to take students to visit colleges/universities during out of school time 2. Low expectations of students a) Allow students to aim higher than high school and not to just graduate so that they can get a job b) Create an environment that promotes higher education regardless of what appears to be a student’s limitations *college is not for everyone but a student can learn life experiences/responsibilities if they attend a junior college c) Create conversations with students so that they can learn what colleges/universities look for on college applications (such as extracurricular activities-not just sports) d) Allow teachers to incorporate real life situations for students so students can learn what is to be really expected of them 3. High Dropout Rates a) Hold school administration/board accountable for dropout rates, research what is the NEW superintendent and those candidates running for office plans for [INCREASING] graduation rates b) Speak truthful to students about dropping out of school and what limitations it has for them as far as employment c) Encourage students to stay in school and form relationships with students. Work Session Summary The Education Group believed that more opportunities students had the better way to end poverty. Recommendations: - More vocational programs such as culinary arts. - Set values and morals at an early age- Instilling the value of education - Relationships with student/families It was a consensus among the group that RPS has a great deal of programs but most are limited due to lack of resources. Therefore the number of programs are limited and/or have restrictions. The community needs to advocate for more resources for effective programs in order for students to be able to compete with other localities. Editor’s Note: The majority of the participants in the small group were current School Board members or candidates for the School Board. The perspectives reflect this level of participation. AFFORDABLE HOUSING Premise: “Housing should be preserved and created for people of all income levels: There should be a safety net for very low income persons, housing should be affordable for current neighborhood residents and they should benefit economically from the housing and community development activities within their neighborhoods.” Small Group Recommendations: - Gentrification in the face of not enough available housing - Tremendous Wage Disparity - City Policy needs re-vamping as it relates to how it looks out for its citizens already in neighborhoods under the attack of gentrification - Churches not doing what the Lord requires for community building - No active role of church in the community leading to lack of respect for the church- Low & Extremely Low Income Individuals not included in mix for acquiring affordable housing - Lack of housing for homeless individuals - No overflow shelters from the city (Social Services Administration) - No Day Shelters Available (Restroom facilities and/or water) Recommendations: - Better Paying Jobs Needed - 5 Point Fundamental Campaign Support (Elected Official Pledge) - Propose Laws to Prevent & End Homelessness - Foreclosure Prevention Strategies (Research and Pointing Up) - CARITAS expansion with specific objectives - Greater Church Participation - Public Housing Issue Expansion - Community Outreach with specific attention to really reaching our community - Develop Blog Articles with feedback encouragement. - More Voter Registration Drives To Be Conducted - Put Forth Consistent Effort to Mobilize Churches for Community Outreach - Realize the real power of voting. JOBS AND WEALTH CREATION Premise:“Jobs should pay sufficient wages to support families: Incentives should go to businesses and economic development ventures that produce livable wage jobs, job training opportunities and contracts with businesses that are owned by or hire Richmond residents.” Small Group Recommendations: - More open policy from the city for people who have problematic record checks. - Look into the expunging records process to open up possibilities for employment. - Jobs pay sufficient wages to support families. - Job training opportunities and contract with businesses that are owned by or hire Richmond residents. - Provide incentives to businesses that hire Richmond residents. - Tie public support for downtown riverfront development and the building of a new baseball stadium to commitments to hire residents and contracts with businesses that hire Richmond residents. - To promote the use of insurance to encourage the hiring of persons with records. - Transportation is an issue as the One Stop Center is located outside of the downtown area. - The return a One Stop Center to downtown to be more convenient for all Richmond residents. . 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