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Michael Panzner

Solutions That Aren’t The Answer

By Michael Panzner on March 27, 2009 | More Posts By Michael Panzner | Author's Website

One argument that some have made in response to my less-than-optimistic outlook is that humans are creative and resourceful. In principle, I can’t disagree. But not all of the “solutions” that people come up with when they are faced with serious challenges are for the greater good; they can also have negative consequences for others.

In fact, while certain remedies can address the more pressing concerns, they may do little to eliminate the root causes of a problem. In my view, the following two reports detail ad hoc “solutions” that haven’t really solved anything.

From “Cities Deal With a Surge in Shantytowns” (New York Times):

Jim Wilson/The New York Times

An encampment of tents under an overpass in Fresno. More Photos >

FRESNO, Calif. - As the operations manager of an outreach center for the homeless here, Paul Stack is used to seeing people down on their luck. What he had never seen before was people living in tents and lean-tos on the railroad lot across from the center.

“They just popped up about 18 months ago,” Mr. Stack said. “One day it was empty. The next day, there were people living there.”Like a dozen or so other cities across the nation, Fresno is dealing with an unhappy déjà vu: the arrival of modern-day Hoovervilles, illegal encampments of homeless people that are reminiscent, on a far smaller scale, of Depression-era shantytowns. At his news conference on Tuesday night, President Obama was asked directly about the tent cities and responded by saying that it was “not acceptable for children and families to be without a roof over their heads in a country as wealthy as ours.”

While encampments and street living have always been a part of the landscape in big cities like Los Angeles and New York, these new tent cities have taken root - or grown from smaller enclaves of the homeless as more people lose jobs and housing - in such disparate places as Nashville, Olympia, Wash., and St. Petersburg, Fla.

In Seattle, homeless residents in the city’s 100-person encampment call it Nickelsville, an unflattering reference to the mayor, Greg Nickels. A tent city in Sacramento prompted Gov. Arnold Schwarzenegger to announce a plan Wednesday to shift the entire 125-person encampment to a nearby fairground. That came after a recent visit by “The Oprah Winfrey Show” set off such a news media stampede that some fed-up homeless people complained of overexposure and said they just wanted to be left alone.

The problem in Fresno is different in that it is both chronic and largely outside the national limelight. Homelessness here has long been fed by the ups and downs in seasonal and subsistence jobs in agriculture, but now the recession has cast a wider net and drawn in hundreds of the newly homeless - from hitchhikers to truck drivers to electricians.

“These are able-bodied folks that did day labor, at minimum wage or better, who were previously able to house themselves based on their income,” said Michael Stoops, the executive director of the National Coalition for the Homeless, an advocacy group based in Washington.

The surging number of homeless people in Fresno, a city of 500,000 people, has been a surprise. City officials say they have three major encampments near downtown and smaller settlements along two highways. All told, as many 2,000 people are homeless here, according to Gregory Barfield, the city’s homeless prevention and policy manager, who said that drug use, prostitution and violence were all too common in the encampments.

“That’s all part of that underground economy,” Mr. Barfield said. “It’s what happens when a person is trying to survive.”

He said the city planned to begin “triage” on the encampments in the next several weeks, to determine how many people needed services and permanent housing. “We’re treating it like any other disaster area,” Mr. Barfield said.

Mr. Barfield took over his newly created position in January, after the county and city adopted a 10-year plan to address homelessness. A class-action lawsuit brought on behalf of homeless people against the city and the California Department of Transportation led to a $2.35 million settlement in 2008, making money available to about 350 residents who had had their belongings discarded in sweeps by the city.

The growing encampments led the city to place portable toilets and security guards near one area known as New Jack City, named after a dark and drug-filled 1991 movie. But that just attracted more homeless people.

“It was just kind of an invitation to move in,” said Mr. Stack, the outreach center manager.

On a recent afternoon, nobody seemed thrilled to be living in New Jack City, a filthy collection of rain- and wind-battered tents in a garbage-strewn lot. Several weary-looking residents sat on decaying sofas as a pair of pit bulls chained to a fence howled.

Northwest of New Jack City sits a somewhat less grim encampment. It is sometimes called Taco Flats or Little Tijuana because of the large number of Latino residents, many of whom were drawn to Fresno on the promise of agricultural jobs, which have dried up in the face of the poor economy and a three-year drought.

Guillermo Flores, 32, said he had looked for work in the fields and in fast food, but had found nothing. For the last eight months, he has collected cans, recycling them for $5 to $10 a day, and lived in a hand-built, three-room shack, a home that he takes pride in, with a door, clean sheets on his bed and a bowl full of fresh apples in his propane-powered kitchen area.

“I just built it because I need it,” said Mr. Flores, as he cooked a dinner of chili peppers, eggs and onions over a fire. “The only problem I have is the spiders.”

Dozens of homeless men and women here have found more organized shelter at the Village of Hope, a collection of 8-by-10-foot storage sheds built by the nonprofit group Poverello House and overseen by Mr. Stack. Planted in a former junkyard behind a chain-link fence, each unit contains two cots, sleeping bags and a solar-powered light.

Doug Brown, a freelance electrical engineer, said he had discovered the Village of Hope while unemployed a few years back and had returned after losing his job in October. Mr. Stoops, of the homeless coalition, predicted that the population at such new Hoovervilles could grow as those without places to live slowly burned through their options and joined the ranks of the chronically homeless, many of whom are indigent as a result of illiteracy, alcoholism, mental illness and drug abuse.

That mix is already evident in a walk around Taco Flats, where Sean Langer, 42, who lost a trucking job in December and could pass for a soccer dad, lives in his car in front of a sturdy shanty that is home to Barbara Smith, 41, a crack addict with a wild cackle for a laugh.

“This is a one-bedroom house,” said Ms. Smith, proudly taking a visitor through her home built with scrap wood and scavenged two-by-fours. “We got a roof, and it does not leak.”

During the day, the camp can seem peaceful. American flags fly over some shanties, and neighbors greet one another. Some feed pets, while others build fires and chat.

Daniel Kent, a clean-shaven 27-year-old from Oregon, has been living in Taco Flats for three months after running out of money on a planned hitchhiking trip to Florida. He did manage to earn $35 a day holding up a going-out-of-business sign for Mervyn’s until the department store actually went of out business.

Mr. Kent planned to attend a job fair soon, but said he did not completely mind living outdoors.

“We got veterans out here; we got people with heart, proud to be who they are,” Mr. Kent said. “Regardless of living situations, it doesn’t change the heart. There’s some good people out here, really good people.”

But the danger after dark is real. Ms. Smith, who lost an eye after being shot in the face years ago, said she had seen two people killed in New Jack City, prompting her to move to Taco Flats and try to quit drugs. Her companion, Willie Mac, 53, a self-described youth minister, said he was “waiting on her to get herself right with the Lord.”

Ms. Smith said her dream was simple: “To get out of here, get off the street, have our own home.”

From “Homesteaders in the Hood” (Slate):

Squatters are multiplying in the recession-what should cities do?

To survive, everyone needs to have a place to be and to sleep, eat, and, let’s face it, go to the bathroom. For most of us, that place is the home. As rising unemployment pushes more people out of their houses and apartments, however, and growing numbers of Americans cannot find a place to perform these essential functions legally, they will have little choice but to break the law. And so some of them are turning to a strategy that has cropped up repeatedly in American history-squatting. Governments are sometimes tempted to respond to a spike in this form of outlaw residency by simply forcing squatters out. The better strategy, however is to treat squatting as a symptom of a simultaneous failure of both the market and the government. Viewed in this light, an outbreak of squatting is a sign that governments should change their housing policies to make it easier for poor people to find the housing they need-as law-abiders instead of renegades.

Squatting, or unlawfully occupying and making use of land that belongs to someone else, tends to emerge when poverty and homelessness intersect with absentee ownership. It was widespread on the frontier of the 19th-century West, where settlers who couldn’t afford to purchase land at market prices often simply occupied land owned by Eastern speculators (as well as land owned by the federal government and by Native American tribes).

From the point of view of local officials, this was a win-win, of a sort. Far-away owners were more interested in free-riding on rising property values, and flipping their land, than in developing it productively. So they resisted paying property taxes or investing in infrastructure. As a result, governments in the West were happy to lend squatters a hand in their efforts to get property out of the speculators’ hands. Local governments frequently made it easier for squatters to obtain title through the legal doctrine of adverse possession (sometimes colloquially called “squatters rights”)-for example, by shortening the time period required for squatting to mature into ownership. Ultimately, even the federal government joined in. After years of using the Army to chase squatters off its lands, Congress decided to create a legal avenue for settlers without money to become landowners: the 1862 Homestead Act.
A century later, in the 1970s, squatting went urban. In city after city, the market for urban housing collapsed amid a toxic (and self-reinforcing) brew of riots, redlining, and the flight of the white middle class to the suburbs. City governments acquired thousands of vacant units from owners who had fallen behind on their property taxes. Rather than turning these properties over to remaining low-income residents searching for affordable housing, many cities sought to auction them off to speculators, who in turn frequently fell behind on their own tax payments. In the meantime, the vacant buildings became magnets for crime and illegal dumping. In response, groups of squatters-backed by community organizations like ACORN-began to take over city-owned, vacant housing. Many city governments cracked down on the squatters, but others took a more measured approach, coming up with programs whereby urban “homesteaders” could acquire vacant housing through “sweat equity.”

As the current recession picks up speed, we are again confronted with the ingredients for a squatting boom. Unemployment is closing in on double digits nationally, and homelessness is on the rise. Between late 2007 and late 2008, the number of families presenting themselves at homeless shelters in New York City increased by 40 percent. In Massachusetts during the same period, the statewide increase was more than 30 percent. At the same time, housing vacancy rates are at all-time highs. According to the Census Bureau, about 15 percent of housing units in the United States were vacant during the last quarter of 2008. That’s 19 million homes sitting idle, largely in the hands of banks. The difference between the 1970s and today is that the crisis last time was focused on the urban centers, while this time around the suburbs are the site of the greatest mismatch between people without homes and homes without occupants.

And so, the squatters are squatting. In Sacramento, Calif., a tent city has begun to sprawl out on land owned by a utility company on the banks of the Sacramento River. The cluster used to be a small homeless camp but has grown in recent months to several hundred residents, an increasing number of whom the Los Angeles Times calls “recession victims.” In Miami, where the foreclosure crisis has hit particularly hard, a group of families recently moved into foreclosed properties with the help of the advocacy group Take Back the Land. In Minneapolis, another group, the Poor People’s Economic Human Rights Campaign, recently moved a dozen families into foreclosed housing.

So far, local governments have split over how to handle the influx. The Atlantic recently documented the efforts of officials in San Bernadino, Calif., to keep squatters out: One officer had removed an unemployed nurse and her family five times from different homes in the community. In other cities, meanwhile, officials have decided to look the other way. Rep. Marcy Kaptur, D-Ohio, has even advised constituents who have been foreclosed to squat in their own homes by refusing to leave. Until he backtracked after negative publicity, Sacramento Mayor Kevin Johnson had considered making that city’s tent encampment permanent and providing its residents with utility services.

But these ad-hoc reactions aren’t really the answer. Squatting can be dangerous for squatters and can, depending on the circumstances, harm neighboring property owners by driving down property values, as neighbors of the Sacramento tent city have complained. At the same time, some of the danger and harm of squatting results from ill-advised efforts to keep them out, and squatters who take over boarded-up housing might actually improve neighborhood conditions and increase property values. Cities should therefore resist the temptation to respond to an increase in squatting by simply ratcheting up enforcement. Instead, governments should attack the problem on both the supply and the demand side.

On the supply side, local governments should penalize owners who stockpile vacant housing, perhaps by imposing increased property tax rates on properties left vacant, and by moving aggressively to seize vacant properties when the owners fall behind on paying those taxes. On the demand side, governments should expand homesteading programs that permit and help low-income people to take over vacant housing-but only after it finds its way into city hands.

To be sure, these programs were only marginally successful in the 1970s, in part because of lack of funding, but also because of the difficulty of restoring abandoned urban properties to habitable condition. The housing that is becoming vacant during the current downturn, by contrast, is relatively new and should be easier for homesteaders to repair. The federal government should also move quickly to protect those in financial trouble from foreclosure and eviction by requiring foreclosing banks (many of which are themselves receiving taxpayer bailouts) to rent out foreclosed homes to their former owners at fair market value. In fact, as this letter to the editor in the New York Times Magazine on Sunday correctly observed, allowing owners to remain as renters in their foreclosed homes helps safeguard the value of the houses-which is good for the occupants, good for the banks, and good for the housing market as a whole.

The sudden increase in squatting shows that the housing market that is out of kilter. The solution is not to chase squatters off, but to bring the market back into balance by helping them find a place to call home.

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