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Jul 22, 2008 6:54 pm US/Central
Home Foreclosures Mean More Homeless Families
(WCCO)
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After six straight years of decline, the number of homeless families in Hennepin County has increased dramatically.
CBS
The housing foreclosure crisis created another crisis in the Twin Cities -- homeless families.
Many of the homes and apartments they were renting were foreclosed on, leaving them with no affordable place to live.
After six straight years of decline, the number of homeless families in Hennepin County has increased dramatically.
Their only option is often a shelter. Rosetta Sanders and her three children lived a comfortable life.
She has a good paying job and rented a North Minneapolis duplex until June when she was told she had two weeks to move out.
"The building was being foreclosed," said Sanders.
For the first time in her life, Sanders found herself homeless.
"I felt like my world had crashed. I had been there so long and that was the place I called home, and for someone to come and tell you that you've got to leave for something you haven't even done, that was devastating," said Sanders.
She went to St. Anne's Place Shelter for help.
"My whole life changed," said Sanders. "I understand what it means to be homeless and how hard it is to get back on your feet. I experienced that."
So have hundreds of other families.
Homeless shelter occupancy throughout Minneapolis is up 30 percent from last year due to foreclosure.
"Right now ... we are running at almost 100 more individuals today then there was a year ago today," said People Serving People President Jim Minor.
Shelters like People Serving People are operating at overflow levels.
"When vacancy rates gets smaller, the rent goes up and that puts even more pressure on families who are low income and who desperately need housing for their children," said Minneapolis councilmember Gary Schiff.
With help from St. Anne's Place, Sanders was lucky to find a new home but feels bad for those who can't.
"For someone to come and tell you that you're not going to have a place to stay, that's hard to take," said Sanders.
Councilmember Schiff says 83 percent of foreclosures in the Phillips neighborhood are rental properties. He said vacancy rates are dangerously low.
There are only 58 4-bedroom-apartment rental units available in the city and all are rented.
Councilmember Schiff said banks aren't selling foreclosed homes because they're waiting until the market hits rock bottom.
Then they can declare their losses to Wall Street which makes the stock more attractive to investors.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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