--WASHINGTON -- As the mortgage foreclosure crisis ripples through the economy, some experts say it's increasingly difficult for low-income renters forced out of foreclosed apartment buildings to find other affordable places to live.
If the situation continues to worsen, it could lead to an increase in homelessness, urban housing experts said.
Jeremy Rosen, executive director of the National Policy and Advocacy Council on Homelessness, believes the effect of foreclosures on low-income renters has been underreported.
"The foreclosure crisis is hitting two groups," Rosen said. "The owners of houses and buildings, and the renters that are occupying them."
The main issue pertains to time -- renters can be forced to leave a foreclosed property at a faster pace than a homeowner who typically receives earlier notice that a crisis is looming, Rosen said. If the renter has limited income, that compounds the problem.
Each state has its own rules concerning tenants' legal rights. This means that some states say tenants have to vacate a foreclosed property within weeks, and in some instances even days. The lack of notice often doesn't give occupants enough time to find an affordable place to live, Rosen said. For people on a tight budget, this can be devastating, he said.
"There are moving expenses and first month's rent," Rosen said. "Sometimes people just don't have the money for it."
The extent and severity of the effects of the mortgage foreclosures on renters is unclear since no firm data is available, said Brian Sullivan, a spokesman for the Department of Housing and Urban Development.
Sullivan pointed to the variety of services that HUD offers to inform renters of their rights and possible housing options as stopgaps to potential housing woes.
Peter Tatian, senior research associate for the Urban Institute, has heard anecdotes about the problems that renters are facing, but he said he does not have a good fix on whether or not they are widespread.
"Renters might not even be aware that their building has foreclosed," Tatian said.
Tatian said so many foreclosures are occurring on a daily basis that there isn't any way to help everyone, especially with the current lack of affordable housing resources.
Bills have been introduced in the House and the Senate that would give more rights to both renters and home owners. One proposal would give tenants up to 90 days to vacate a property, or at least until the end of their lease. This would alleviate pressure for the renters that have to quickly search for an affordable place to live.
The doomsday scenario for low-income renters is homelessness and homeless advocacy groups believe it's a problem that will soon have to be dealt with.
"Foreclosures are driving rental prices up, supply is not keeping up with demand," said Greg White, a policy analyst for the National Low Income Housing Coalition. "You are going to start to see a flood into homeless shelters."
|
