Neighborhood Partnerships

On Wednesday, April 11, Governor Kitzhaber signed into law SB 1552, which provides homeowners facing foreclosure with new tools.  This monumental legislation will address the overwhelming tide of foreclosures and financial insecurity which has been threatening to permanently undermine the foundations of our state.

The legislation is just the first step – from April 11, we have ninety-one days to implement the law and re-imagine the current system to best make all these pieces work together for the benefit of homeowners and Oregon communities. While the task is large, the Housing Alliance and advocates are confident we can do it and that we can make it work well for homeowners.

To help inform our partners and move us forward, the Housing Alliance will be sending out periodic email updates, in addition to convening regular meetings.  Please feel free to share our email updates about progress on implementation, or contact us with questions.

Today, too many Oregonians are facing the uncertainty of foreclosure or of owing more on their home than it’s worth.  One in five is underwater, while one in eleven is either in default or is 30 days late on their mortgage payments.  The law being put into effect by SB 1552 plus funds from the national Attorneys General settlement will make a huge positive impact for these homeowners.  The law will provide access to accurate information and will help equip homeowners to make good decisions about their future.  Together, the policy changes plus the monetary resources will create a complete system to protect homeowners from bad practices, give them access to needed resources, information, and assistance, and stop allowing foreclosures to wreak havoc on our economy.

What will the law do?   The basics are that it gives homeowners facing foreclosure the right to mediation, access to better information and protection from “dual track” processing.  Here are some more details:

1. Mediation:  The law requires lenders to meet with homeowners who are underwater or in default with a third party mediator.  For homeowners who are underwater, it must be upon the borrower’s request.  For homeowners in default, lenders must mediate with borrowers prior to starting the foreclosure process unless the borrower chooses to opt out of the process.
• Authority to Negotiate: At mediation, banks must send someone to mediation who has the authority to accept or reject proposals for foreclosure avoidance.
• Lenders and borrowers will share cost for mediation, with borrowers’ costs being capped at $200 and waived if needed.
• Mediators must issue a certificate of compliance to the bank before they can proceed with a foreclosure filing.
2. Counseling: The law requires that homeowners need to receive housing counseling prior to proceeding with mediation. The law does provide an exemption in cases where a homeowner can’t get an appointment with a counselor within thirty days.
3. Advanced Notification Rules: The law sets up timelines for notices of mediation, sale, and foreclosure.  Lenders must follow these timelines to legally foreclose on a homeowner.  It also provides rules for proper notice for homeowners about sale dates.
4. Ends dual-track processes:  The law prohibits all lenders from “dual tracking” homeowners – renegotiating loan terms while also pursuing foreclosure.

Those are the basics of the law. You can read more here.

So now what? Advocates are working to help implement this law in a way that envisions a whole system and uses national Attorneys General settlement dollars to fill gaps in our current system. The goal is to have the system as up to speed as possible by the effective date of the law, July 12, 2012.

We are working hard to ensure all homeowners will be able to access the information and resources they need, when they need it. This system could include:

1. Coordinated, strategic outreach to homeowners to inform them about their options and help them access the services they need.
2. Counseling to homeowners through certified foreclosure counselors.  This could start as a group session in which homeowners learn more about the basics of foreclosure and their rights and responsibilities. From there, it could expand to include one on one counseling sessions and assistance preparing for mediation.
3. Mediation with their lender and a neutral third party mediator.  The law guarantees access to mediation unless the borrower waives it.  We’re working to create a system to help homeowners understand what mediation is and its benefits, and to help them access it smoothly and in a timely fashion.  Mediation can help homeowners understand and realize their options – whether that’s staying in their home, selling through a short-sale, or another option that best meets their needs.
4. Legal assistance for homeowners with lower incomes who need legal advice for more complicated circumstances.
5. Connecting homeowners to other available assistance programs, and onngoing evaluation about what is working for Oregon homeowners and communities

The new foreclosure law has the potential to positively impact thousands of homeowners across Oregon, and help stop the negative effects of foreclosure on our communities, our economy, and our state.  Together, we can create a system that fully utilizes the policy changes and settlement dollars to benefit homeowners in need of assistance.

Today the National Low Income Housing Coalition (NLIHC) released its annual “Out of Reach” report. This report calculates the hourly wage renters need to earn in order to be able to afford an apartment in each county across the US.

Here in Oregon, we know that to succeed in life, everyone needs a safe and affordable place to call home. We also know that for too many Oregonians, home is out of reach due to the high cost of housing. The amount a renter would need to earn in Oregon to afford a two bedroom apartment is $15.52 this year, while the average renter earns only $12.59 per hour. Minimum wage workers need to work over 10 hours a day, seven days a week to be able to afford the average two bedroom apartment here in Oregon. We also know that housing prices have continued to rise while wages have stayed stagnant.

The good news is that there are effective strategies to help families make ends meet. One strategy is to provide families and individuals with small amounts of rental assistance. One or two months of rental assistance can help a family survive a lay-off, pay a car bill so they can continue going to work, or pay medical bills. Across the state, we use emergency rent assistance to prevent or end homelessness for many Oregonians.

Housing gives people all across Oregon the opportunity to build a better life for themselves and their family. We know what works to help prevent or end homelessness for people – we just need to do more of the things that work – providing emergency rent assistance, preserving existing housing, and ensuring there is a range of options for people in their communities. Together, we can end homelessness and help put housing into reach for all Oregonians.

You can download the Out of Reach report here or visit the NLIHC website.

FOR IMMEDIATE RELEASE: March 6, 2012

For More Information:

Janet Byrd                                                                            Ryan Fisher
(503) 516-4698                                                                  (503) 807-7525

Foreclosure Relief comes to Oregon Homeowners

After much negotiation and dialogue, Oregon homeowners are set to receive significant assistance in keeping their homes with Tuesdays’ passage of SB1552 with the -25 amendments.  This bill brings critical relief to homeowners across Oregon who are at risk of foreclosure. SB1552 passed with large, bi-partisan majorities in the Senate, but stalled in the House before bi-partisan negotiations helped move the bills forward.  The bills passed the House in the early evening last night, March 5, with 59 aye votes.

“The overwhelming tide of foreclosures and financial security are threatening to permanently undermine the foundations of our state. Today, Legislators made the right decision to protect Oregonians, and took action to begin to rebuild our state,” said Janet Byrd, Chair of the Housing Alliance. “These bills are positive and decisive action to stop the havoc and despair caused by foreclosures.”

SB1552 provides homeowners with timely and accurate information about their choices which will help allow them to make informed decisions. The bill also guarantees fair dealing by the banks, and equips homeowners to make good decisions based on good information. Together with the national bank settlement resources, these changes have the potential to significantly benefit Oregonians at risk of foreclosure and our communities across the state.

“We appreciate and commend the House of Representatives for their negotiations and continued work on helping families keep their homes,” said Patti Whitney Wise, Director of Partners for a Hunger Free Oregon and member of the Housing Alliance. “Dialogue on the challenging problems facing Oregonians is critical to the future of our state. There is no simple answer to this crisis, and we all have a stake in and must be part of the solution.”

SB1552 with its –25 amendments is a combination of many of the provisions from the original SB1552 and SB1564. It includes mandatory mediation, changes to advanced notification rules, attorney general oversight and an end to the dual-track processes.  It also includes sanctions for financial institutions that do not comply.

“While the path ahead will continue to be difficult for many Oregonians, we believe that  working together we can find solutions to the foreclosure crisis,” said Midge Purcell of the Urban League.  She continued, “today, the Legislature made the right choice to best protect and ensure the future we all want.  We are grateful for their work to put the needs of our communities first.”

“Members of the Legislature and House of Representatives worked together to reach a bipartisan solution to this problem.  Too many members of our communities are suffering from the stress and uncertainty that foreclosure can bring,” said David Leslie, Executive Director of Ecumenical Ministries of Oregon, and member of the Housing Alliance. He continued, “this bill is a huge step forward for Oregon homeowners and communities.”

Download a PDF of the release here.

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The Housing Alliance brings together advocates, local governments, housing authorities, community development corporations, environmentalists, service providers, business interests and all others dedicated to increasing the resources available to meet our housing needs to support a common statewide legislative and policy agenda. To find out more about the Housing Alliance, go to: http://www.oregonhousingalliance.org/.

FOR IMMEDIATE RELEASE: March 1, 2012

For More Information:
Janet Byrd
(503) 516-4698

Ryan Fisher
(503) 807-7525

Oregon Homeowners will Suffer While they Wait for Foreclosure Relief

With the short February session winding down, advocates today believe that all hope of passing foreclosure reform is lost. Two bills, SB1552 and SB1564 would have brought significant relief to homeowners across Oregon who are at risk of foreclosure. SB1552 and SB1564 were passed with large, bi-partisan majorities by the Senate, but stalled in the House.

“The overwhelming tide of foreclosures and financial security are threatening to permanently undermine the foundations of our state. We needed our Legislators to make decisions to protect Oregonians, and take action to rebuild our state,” said Janet Byrd, Chair of the Housing Alliance. “These bills would have been decisive action to stop the havoc and despair caused by foreclosures.”

SB1552 and SB1564 would have provided homeowners with timely and accurate information about their choices to allow them to make informed decisions. The bills would have also guaranteed fair dealing by the banks, and would have equipped homeowners to make good decisions based on good information. Together with the national settlement resources, these changes would have significantly and positively affected Oregonians at risk of foreclosure.

“Without these protections, we will continue to see homeowners act in good faith on information provided to them, only to learn that the sands have shifted,” continued Byrd. “We still have choices to make that can help Oregon homeowners. Now is the time for Legislators and others to come to the table and figure out a way forward using the Attorney General settlement dollars to positively impact the lives of Oregon homeowners. We need to use this precious resource wisely.”

While the Housing Alliance knows that homeowners and communities will suffer as they wait until the next Legislative session for decisive action, we continue to be hopeful that the bi-partisan agreement by the Legislature to put funds from the Attorney General settlement into uses that will help support homeowners will continue. These resources can make a significant difference for Oregon homeowners.

“While the path ahead is difficult, we continue to believe that Oregonians working together can find solutions to the foreclosure crisis,” said Byrd. “We can make the right choice to best protect and ensure the future we all want.”

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One in eleven homeowners in Oregon is either in foreclosure or has a mortgage 30 or more days in default. One in five homeowners are underwater on their mortgages owing more than the home is worth.

Homeowners are suffering from the resulting stress and uncertainty, their neighbors are feeling the impacts of vacant homes, and our communities and economies are bearing the costs.

Homeowners need decisive action so that they take steps to re-build their lives, and communities need decisive action to re-build Oregon. Oregonians are counting on the Legislature to:

• Guarantee a fair chance: Protect homeowners from the “dual track”, by requiring that banks not foreclose on homeowners who are in the process of modifying their mortgage. Pass SB 1564.

• Guarantee good information: Require banks to offer a meeting with homeowners, before a neutral third party mediator, before foreclosure begins. Pass SB 1552A.

• Invest Wisely: Use the funds coming in to Oregon as part of the Attorneys General settlement with five national banks to help all homeowners who are in foreclosure, in default, or who owe more than their homes are worth.

Last week, NP’s Janet Byrd co-authored an op-ed abut the Foreclosure crisis and important action by the Legislature. The good news is SB 1552 and SB 1564 passed the Senate! Now they move on to the House, and we meed your help. Its time to call your Representative and ask them to help make sure these important bills are heard in Committee and moved to the House floor.

Those who say we’ve done enough on foreclosure are wrong – Oregonians are still suffering and these bills would make a significant different in people’s lives. These bills would provide homeowners with timely and accurate information about their choices and ensure a fair and reliable process prior to foreclosure. Please tell your Representative that our communities cannot wait until 2013 for decisive action, and to please vote yes on SB 1552 and SB 1564. The foreclosure crisis will continue to drag down our families and our economy until action is taken by the Legislature to provide homeowners access to good information and guarantees of fair dealing.

Today Neighborhood Partnerships is taking part in a nationally coordinated release of the Corporation for Enterprise Development’s Assets and Opportunity Scorecard. The Oregon Scorecard builds on a family financial resilience framework developed by CFED that looks at ways we as a state can act to support the five steps to financial security – Learn, Earn, Invest, Save, and Protect.

The Scorecard highlights the need for us to take action. Oregon received 1 B, 3 C’s and a D based on our data, and noted both long term and short term opportunities to make improvements.

The Oregon Legislature will re-convene in February for a short, one month session. While the budget will be the big topic of the session, we hope to be able to make improvements on one of the Scorecard recommendations and also make a difference for Oregon homeowners facing foreclosure.

Neighborhood Partnerships and the Housing Alliance will be working in parallel with other advocates in an effort to pass bills that will:

• Require mediation – stop preventable foreclosures: Mediation should be required before finalization of a foreclosure, to provide homeowners and lenders the opportunity to gather information and make timely decisions regarding alternatives to foreclosure.
• Provide “Dual-Track” protection: Homeowners should be protected from foreclosure during the time they are actively engaged in negotiations to modify their loans. We hope to increase transparency and accountability in loss mitigation negotiations.
• Set and enforce servicer standards and regulations: Servicers should adhere to basic minimum standards of good faith and fair dealing. The pending national settlement between the states’ Attorneys General and the 5 federally regulated banks may include these concepts, but state law would still be necessary to cover local banks and to provide an enforcement mechanism.

You can help! Call your legislator today and ask them to take action in February to stop preventable foreclosures and hold servicers to a high standard. And, join us in February as we visit legislators to share our stories. Contact jbyrd@neighborhoodpartnerships.org if you’re able to make a trip to Salem in February.

Not sure who your legislator is? Look here http://www.leg.state.or.us/findlegsltr/.

Click here to listen to a news story on the scorecard release.

Oregonians facing the loss of their homes need clear and accurate information about their rights, obligations and the foreclosure process. Where possible, alternatives to foreclosure ought to be fairly considered. When there is no viable alternative, the foreclosure process ought to be conducted with adequate notice and transparent process. The Housing Alliance has adopted the following principles:

1. Mediation to stop preventable foreclosures – Mediation should be required before finalization of a foreclosure, to provide homeowners and lenders the opportunity to make timely decisions regarding alternatives to foreclosure.
2. Dual-track protection – Homeowners should be protected from foreclosure during the time they are actively engaged in loan modification or loss mitigation negotiations. Loss mitigation negotiations ought to be fair and transparent.
3. Servicer standards – Loan servicers should adhere to basic minimum standards of good faith and fair dealing, and should be held accountable for violations of those standards.

To lend your voice to this effort, please contact Janet Byrd at jbyrd@neighborhoodpartnerships.org. We’ll let you know of hearings and other advocacy opportunities as they arise in February. In the meantime, contact your legislator to let them know these issues matter to you, and that you want to see action in February.

Neighborhood Partnerships and the Housing Alliance know that everyone deserves a safe place to call home. Unfortunately today, too many of our neighbors and families are sleeping in cars, on couches or outdoors.

The Oregonian recently published two articles about homelessness in our community—first, Monday’s editorial, which calls for community actions around homelessness in the wake of the Occupy Portland movement being evicted from their downtown camp; and second, a story in Sunday’s Oregonian about a local teen who has been surviving on the streets for several years while also battling addiction. These stories echo our own experiences and messages as housing advocates.

Monday’s editorial asks the people of Portland to “put our arms” around those experiencing homelessness. It sounds a lot like what we (and many others) have been saying for years—that everyone deserves a safe, stable, affordable place to call home. We know that our communities are better and stronger when everyone has a place to call home. We also know that homelessness is a solvable problem. We’re not saying it will be easy, but we are saying we know how to do it—if we make the right choices and find the political will, we can end homelessness together.

We were pleased to see this response from the Editorial Board, as well as an understanding that what we really need are permanent solutions. While shelters are an important way to help people come in out of the cold and stay safe, they simply manage the problem. We don’t begrudge dollars spent on shelter—we know it’s critical to have people inside where they can be warm and safe, especially during winter months. However we also know that permanent housing, plus the supports people need to address barriers and create pathways out of poverty is the only way to end homelessness. All too often, it seems as if we’re forced to take one avenue at the expense of the other.

Sunday’s portrait in the Oregonian of Alec Bates is a great example of what should be happening. While the Oregonian’s portrait of Bates only showed glimpses of the people that helped him along the way, it is clear that Bates met many organizations and individuals that made a difference in his journey. He highlights one—Outside In—that helped him find housing and the supportive services he needed to maintain his housing. His story also highlights the need for more addictions and mental health treatment, so that as people are ready to make changes, the right doors are open to them.

Then came this morning’s article by Steve Duin, and this quote from Candidate for Portland City Council Steve Novick: “The occupation movement is helping some of us unlearn our learned helplessness.” We, not just people in Portland, but across the US have for far too long been helpless in the face of homelessness. We’ve seen it as a problem only affecting a few, without recognizing that far too many of us are one economic disaster from sleeping in our cars. We’ve seen it as a problem affecting “those people,” without recognizing that people in this country rise and fall as one. It’s time to unlearn our helplessness and understand that not only can we solve homelessness, but it does affect and impact us all. Our struggles and fate are tied together as one in this city and state.

Today, organizations and people all across the city, the state and the country are working hard to end homelessness. Every day we call on our elected officials to help us in our work. Now is the time to put our arms around the problem of homelessness, to declare it unacceptable, and to commit to solving this problem. We can do better. We can recognize that our fate is connected to the fate of our neighbors, especially those neighbors without a roof over their heads.

In the July 22, 2011 edition of Street Roots, we recap the 2011 Legislative Session for housing. Purchase a copy today from a Street Roots vendor downtown, or read the article here. The full text is below:

The State Legislature has been adjourned for over two weeks now, and we’re a little more than two weeks into the new state budget. The dust is settling, but the full impact of the work of the Legislature on Oregonians struggling to make ends meet won’t be known for many months.
We all need a safe, stable place to call home. Our state and our communities are stronger and better when everyone has access to opportunity, which comes from having a place to call home.

The Oregon Housing Alliance—a coalition of organizations from across the state concerned about the lack of affordable housing—has worked along with other housing advocates since 2004 to secure the resources we need to create strong communities across Oregon. The Oregon Housing Alliance made progress this past legislative session, but it was not nearly enough. Our victories were important: we secured funding to help preserve existing affordable housing across Oregon; protected tools such as the Oregon Affordable Housing Tax Credit and others to help build new affordable housing; we protected funds for emergency rent assistance; we helped pass protections for tenants living in foreclosed properties; and we worked in coalition with partners to prevent the worst of the cuts to the Temporary Assistance for Needy Families (TANF) program.

Despite these small gains, this Legislative session was a disaster for low income Oregonians. The prolonged recession and the continuing shortage of affordable housing have left too many of our neighbors at risk of or experiencing homelessness. Too many of our families and neighbors are struggling to keep both a roof over their head and food on the table.

Devastating cuts were made to essential services and supports, and we know that the impacts of these choices will hit hardest and be hardest felt by those who are already hurting. While we made progress on many fronts, overall we have stepped backwards this session. Protecting the most vulnerable among us and maintaining a strong safety net is one of the core functions of our government. The Legislature should make decisions that uphold and advance this purpose.

Instead, the Legislature made a choice in the 2011 session to pass a budget for human services and housing that will barely keep emergency services afloat during the next two years. The decisions made will have far reaching and very real consequences that will include thousands of Oregonians unable to access emergency rent assistance or affordable housing, or the supportive services they need to get back to work. When the Legislature returns in 2012 and 2013, we need them to be ready to make choices that will put all of our options—including new revenue—on the table, and we need them to make the best choices for our state.

We need your voice and your help in the coming months to ensure that this happens. We know how to solve the crisis of homelessness and the lack of affordable housing. The solution begins when housing advocates begin to speak louder.

We must do everything we can to build up our voices, to work across issues, and to help legislators understand the impacts of their decisions on the men, women, and children in their districts who need the opportunity that stable housing provides in order to fully engage in their life and their community.

Over the next year, three years and five years, we must work to expand the voices of those concerned about the lack of safe, stable and affordable housing for all Oregonians. We must document the effects of the economic recession, and the effects of the 2011-2013 budget on our neighbors passed by the Legislature this session, and share what’s happening with decision makers. Housing advocates must speak louder and do more to ensure everyone has a place to call home. If we’re going to build a movement across Oregon that speaks out for our communities and our neighbors, we have to shift the conversation in our state from “we can’t” to “we must”, and we need to talk to our neighbors and communities about our vision of what we want our home towns and our state to be, rather than about the budget and the deficit. We can solve the problems we face. We can make sure everyone has a safe, stable place to call home, and the opportunity that comes with it.

FOR IMMEDIATE RELEASE: May 3, 2011

For More Information:
Janet Byrd                                                        Alison McIntosh
(503) 516-4698                                                (503) 816-2882

RENTS CONTINUE TO RISE DESPITE HIGH UNEMPLOYMENT, FORECLOSURES, AND PROLONGED RECESSION

Oregon’s high cost of housing highlighted in 2011 report

Higher prices in the rental market continue to force Oregon families to choose between paying rent, putting food on the table, and paying utility bills.  A national study reports that the cost of renting an apartment in Oregon has increased again, an alarming trend for a state with unemployment at 10%.

“The on-going recession, high unemployment and continued wave of foreclosures in Oregon continues to make it more difficult for hard working Oregonians to find a safe, decent and affordable place to call home,” said Janet Byrd, Chair of the Housing Alliance, “In Oregon, we believe everyone needs a place to call home. As we work together to solve the current budget crisis, the Legislature needs to prioritize providing basic needs to those most impacted by the ongoing recession.”

According to the report released today by the National Low Income Housing Coalition (NLIHC), the average rent and the income required to afford those rents continue to rise despite high unemployment and foreclosures. As rents continue to increase, more and more Oregon families find themselves homeless for the first time.

“Every year it is becoming more difficult for hard working Oregonians to find decent homes they can afford,” said Rocky Johnson, Executive Director of Community Action Team in Columbia County. “This year, someone making minimum wage in Columbia County would have to work nearly twelve hours a day, seven days a week just to be able to afford a place to call home.”

“Hardworking people should be able to afford housing and still have enough money for groceries and other basic necessities,” said Cyndy Cook, Executive Director of Housing Works in Redmond, Oregon.  “Unfortunately, high rates of foreclosure are contributing to low vacancy rates putting upward pressure on the rental market and creating challenges for low income Oregonians to find affordable rental housing.  In the Bend area, we’ve seen increases in rent as high as 18% over the last 12 months—making it difficult for families to find safe, stable places to call home.”

The report, Out of Reach 2010, was jointly released by the National Low Income Housing Coalition (NLIHC), a Washington, DC-based housing advocacy group, and Oregon’s Housing Alliance. The report provides data for every state, metropolitan area and county in the country. The report also defines a “Housing Wage”, which for Oregon is $15.81, or nearly double Oregon’s minimum wage. The Housing Wage is the hourly wage a family must earn—working 40 hours a week, 52 weeks a year—to be able to afford rent and utilities in the private housing market. The average fair market rent for a two-bedroom apartment in Oregon is $822—a number that has increased 35% since 2000.

This year, Oregon is the twenty-ninth most expensive state in the nation for renters. The National Housing Wage is $18.46 in 2011.

For additional information, visit http://www.nlihc.org/oor/oor2011/.

Click here to download a PDF of this media advisory.

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The Housing Alliance brings together advocates, local governments, housing authorities, community development corporations, environmentalists, service providers, business interests and all others dedicated to increasing the resources available to meet our housing needs to support a common statewide legislative and policy agenda. To find out more about the Housing Alliance, go to: http://www.oregonhousingalliance.org/