Foreclosure Climate has Caused Sharp Rise in Homeless Persons

The foreclosure climate is bringing problem for the homeless

The foreclosure climate has caused a sharp rise in homeless persons but the number of public houses providing shelter has decreased. The state government is being compelled to fall back on housing plans due to acute dearth of funds.

The recession is triggering unemployment while foreclosures continue to run apace. Meanwhile the number of families and individuals in need of shelter is increasing alarmingly. The state governments grappling with budge deficits remain helpless while private donations are also decreasing.

Chuck Bean of Nonprofit Roundtable of Greater Washington speaking to MSNBC said, “A downturn in (overall) funding in this case is accompanied by a surge in demand, so a homeless shelter, food pantry, or job-training program is going to feel it first. Even if they have 100 percent of their budget compared to last year, they now see a 50 percent surge in demand.”

In Massachusetts the situation is so critical that the state government has been compelled to make arrangement for over 630 families to put up in motels. The average cost is $85 per night. Trying to grapple with the problem the administration of Governor Deval Patrick said that new regulations are going to be imposed that aims to bring down the numbers of those eligible to put up in public shelter homes.

Those putting up at shelter will be expected to work a minimum of 30 hours each week and be able to put aside as savings 30% of their earnings. Once the earnings of the family becomes more than the maximum scheduled limit, the family will be given three months time to find out a place to stay independently. Previously the limit was six months.

This new rule will save the sate about $520,000 in this year and more than $11 million in the fiscal year 2010 said Julia E. Kehoe the commissioner of the state Department of Transitional Assistance.

The housing advocates have raised a hue and cry over these new rules. Robyn Frost of Massachusetts Coalition for the Homeless speaking to the Boston Globe said, “This is not the time to change the safety net. The number of people in need of shelter is like nothing we’ve ever seen. There’s never been such a desperate need for housing, and these changes could be devastating. They couldn’t come at a worse time.”

This reversal is ironical since for the last 5 years the cities and states of USA with the help of Interagency Council of Homelessness have been trying to enforce 10 year programmes to erase altogether the problem of homelessness.