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the future of the suburbs?

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  • the future of the suburbs?

    emphases added



    August 9, 2008
    As Program Moves Poor to Suburbs, Tensions Follow

    By SOLOMON MOORE
    ANTIOCH, Calif. — From the tough streets of Oakland, where so many of Alice Payne’s relatives and friends had been shot to death, the newspaper advertisement for a federally assisted rental property in this Northern California suburb was like a bridge across the River Jordan.

    Ms. Payne, a 42-year-old African-American mother of five, moved to Antioch in 2006. With the local real estate market slowing and a housing voucher covering two-thirds of the rent, she found she could afford a large, new home, with a pool, for $2,200 a month.

    But old problems persisted. When her estranged husband was arrested, the local housing authority tried to cut off her subsidy, citing disturbances at her house. Then the police threatened to prosecute her landlord for any criminal activity or public nuisances caused by the family. The landlord forced the Paynes to leave when their lease was up.

    Under the Section 8 federal housing voucher program, thousands of poor, urban and often African-American residents have left hardscrabble neighborhoods in the nation’s largest cities and resettled in the suburbs.
    Law enforcement experts and housing researchers argue that rising crime rates follow Section 8 recipients to their new homes, while other experts discount any direct link. But there is little doubt that cultural shock waves have followed the migration. Social and racial tensions between newcomers and their neighbors have increased, forcing suburban communities like Antioch to re-evaluate their civic identities along with their methods of dealing with the new residents.

    The foreclosure crisis gnawing away at overbuilt suburbs has accelerated that migration, and the problems. Antioch is one of many suburbs in the midst of a full-blown mortgage meltdown that has seen property owners seeking out low-income renters to fill vacant homes. The most recent Contra Costa County records available show that from 2003 to 2005, the number of Section 8 households in Antioch grew by 50 percent, to about 1,500 from 1,000. Many new residents are African-American; Antioch’s black population has grown to about 20 percent, from 3 percent in 1990.

    Federally assisted tenants in Antioch brought a class action lawsuit against the police department last month, claiming racial discrimination, intimidation and illegal property searches. The lawsuit, which was filed in the Northern District of California, claims that the police routinely questioned Section 8 residents about their housing status and wrote letters to the county’s housing authority recommending termination of subsidies. They say the police also threatened Section 8 landlords for infractions by tenants. A December 2007 study of Antioch police records by Public Advocates, a law firm in San Francisco, counted 67 investigations of black households, compared with 59 of white families; black households, it found, are four times as likely to be searched based on noncriminal complaints and to be contacted by the police in the first place....

    etc.

    http://www.nytimes.com/2008/08/09/us/09housing.html?hp

  • #2
    Re: the future of the suburbs?

    Originally posted by jk View Post
    emphases added



    August 9, 2008
    As Program Moves Poor to Suburbs, Tensions Follow

    The foreclosure crisis gnawing away at overbuilt suburbs has accelerated that migration, and the problems.
    wait until a few years into the depression when they start to empty out the prisons to save money.

    The Golden State goes bust

    The US housing crisis has hit California hard, causing the worst financial crisis in the state since the Great Depression

    The $15bn deficit has led to tens of thousands of state employees being laid off (initial estimates were that over 20,000 would lose their jobs, but that number was subsequently reduced to slightly over 10,000), the paring down of government services, Schwarzenegger's order last week to place 200,000 state employees on the federal minimum wage come September should legislators not swallow their differences and negotiate a budget, escalating costs of borrowing on the bond market, the decimation of state-funded medical and social services for the poor and elderly and a massive contraction of state aid to already-overstretched local governments.The risk is that a downward spiral has started, one that comes complete with its own feedback loops. As house values slide, a declining property tax base is leading to cuts in local services. These cuts push regional economies further into recession, thus magnifying conditions triggered by the national slowdown. This, in turn, lowers the state's ability to raise money through taxes, which leads to further reductions in jobs and services, which leads to less money flowing through the whole system and a gradual erosion of private-sector purchasing power.

    Comment


    • #3
      Re: the future of the suburbs?

      Within 2 hours of the announcement, I saw 2 parades down Market street in San Francisco protesting the wage cut:

      1) SEIU
      2) UC workers

      I'm also seeing benefits starting to get cut - the first one was the home care subsidy for foreign nationals with green cards.

      All is proceeding according to vision.

      Comment


      • #4
        Re: the future of the suburbs?

        adding this link for ultimate truthiness

        link

        watch video

        Comment


        • #5
          Re: the future of the suburbs?

          The government is already gearing up to put $4 billion into neighborhoods decimated by foreclosures... with an eye towards low-income housing.

          CNNMoney

          The U.S. Department of Housing and Urban Development is expected in late September to come up with a formula for how to distribute $3.92 billion to states and cities nationwide to turn foreclosed property to affordable housing for sale or rent.
          .
          .
          .
          The foreclosed property must be bought at a discount from its current appraised value to avoid bailing out the lenders.
          Now that's a surprise, how did they manage to sneak that clause in there?

          The program is also designed to increase the affordable housing stock in the community. The law mandates that the homes be sold or rented to families at or below 120% of the area median income, with one-quarter of the funds set aside for families at or below 50% of median income.
          Four billion sounds like a lot of money to me, but apparently would only be a drop in the bucket.

          Sean O'Toole weighs in:

          Some foreclosure experts, however, said that the funding is too little to have any real effect, especially in the hardest hit areas. California, for example, had 209,000 homes go into foreclosure over the past year, said Sean O'Toole, founder of foreclosureradar.com, a foreclosed properties website for real estate professionals.

          "$4 billion is kind of a meaningless sum," O'Toole said. "It can't possibly make a difference. You've brought a pistol to a nuclear war."

          Comment


          • #6
            Re: the future of the suburbs?

            The implications here in the city are clear: the increasing attractiveness of the city is leading to export of large numbers of low income, housing subsidized poor from formerly depressed areas to the suburbs.

            Comment


            • #7
              Re: the future of the suburbs?

              ...which will be great for the low income folks as energy costs/commute costs rise over the next few years. Its a good thing most suburbs have solid pulic transit systems.

              What a cunning plan!

              Comment


              • #8
                Re: the future of the suburbs?

                Originally posted by jk View Post
                As Program Moves Poor to Suburbs, Tensions Follow
                I think this issue has been well covered on iTulip. The poor will be moving the the suburbs while the better-to-do move in town. Tensions will follow the change. Is this really news?

                Comment


                • #9
                  Re: the future of the suburbs?

                  Originally posted by metalman View Post
                  wait until a few years into the depression when they start to empty out the prisons to save money.

                  [url="http://www.guardian.co.uk/commentisfree/2008/aug/06/useconomy.taxandspending?gusrc=rss&feed=networkfront"]

                  This is the serious why they execute prisoners here for crimes that need a term of more than 20 years. It saves money. :eek:

                  Comment


                  • #10
                    Re: the future of the suburbs?

                    Originally posted by touchring View Post
                    This is the serious why they execute prisoners here for crimes that need a term of more than 20 years. It saves money. :eek:
                    you're in singapore, right?

                    Comment


                    • #11
                      Re: the future of the suburbs?

                      Originally posted by metalman View Post
                      you're in singapore, right?

                      Yes. Recently, they stopped building a new prison because of lack of prisoners.

                      Harsh laws do help deter crime.

                      http://en.wikipedia.org/wiki/Capital...t_in_Singapore
                      Last edited by touchring; August 13, 2008, 02:09 AM.

                      Comment


                      • #12
                        Re: the future of the suburbs?

                        The subs have already started to die

                        http://in.reuters.com/article/oilRpt...51607320080812

                        WASHINGTON, Aug 12 (Reuters) - U.S. oil demand during the first half of 2008 fell by an average 800,000 barrels per day compared to the same period a year ago, the biggest volume decline in 26 years, the Energy Information Administration said on Tuesday.
                        In its latest monthly energy forecast, the EIA said the huge drop in demand was due to slower U.S. economic growth and the impact of high petroleum prices.
                        The drop in U.S. oil demand helped offset a 1.3-million-barrel-per-day increase in petroleum consumption in nonindustrial countries during the first half of the year.

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                        • #13
                          Re: the future of the suburbs?

                          LPG is taking off in developing nations. I heard that in Malaysia, a full tank of LPG costs $5! You can go 200 miles on a full tank.

                          Comment


                          • #14
                            Re: the future of the suburbs?

                            i'm sure we will see more poorly thought out ideas as things get worse and the printing presses will keep on rolling...if suburbia is a wasteland then it is really easy to guide the sheeple into the fold

                            Comment


                            • #15
                              Re: the future of the suburbs?

                              Not all suburbs are the same. I agree the far out areas ( exurbs?) are going to get hit hard. But my area seems to be doing pretty well( 40 miles from downtown Atlanta) A lot depends on the business and jobs in the area. We have lots of white collar jobs and light manufacturing close by in our area. The California style planned communities with nothing but residential for miles around, they will probably be hurting.

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