Homeless for a rainy night

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The Hope Centre for the homeless, Logan. Photo used by permission

For some, today is a reminder that anyone can become homeless, with various agencies (and reality TV) bringing this urgent issue to light. It also marks the end of the financial year, a kind of witching hour for those engaged in financial markets, investing in rental housing, or running Australia’s businesses, large and small.

For seventy-nine intrepid souls, our charity sleep-out on Maroochydore beach was thwarted by early morning drizzle turning into heavier rain.

Some abandoned their posts, leaving sheets of cardboard for others to make shelters with. Others took up the scarce positions under the eaves of the Maroochy Surf Club.

I took refuge in a nearby toilet block, mopping my wet hair with a sweatshirt. I decided I’d done enough, including raising $700+ and headed home in the wee hours. I briefly imagined a truly homeless mother in a similar situation. The two-year-old wants to be carried and the seven-year-old is saying “This is dumb, I wanna sleep.” So they walk 300m in the rain to the 1997 Ford wagon and do as best they can.

The St Vincent De Paul Society homelessness sleep-out raised more money this year ($125,577) with fewer people sleeping out. That’s an impressive result from a regional population of 300,000, (1,500 of whom are homeless).

The 2016 Census homeless tally (105,000 in 2011), won’t be known until 2018. But a 2014 Australian Bureau of Statistics survey found that 351,000 Australians had experienced homelessness in the previous 12 months.

There were a few speeches last night before we headed out to a balmy 17 degree Maroochydore evening. Mix FM’s Todd Widdicombe threw gentle barbs at local politicians and did a good job of generating competitive bidding for the charity auction (including a pillow sold to local politician Steve Dickson for $320).

St Vincent De Paul Society tells us most social housing on the Sunshine Coast was built more than 30 years ago. The Coast’s private rental vacancy rate is less than 2% and one-bedroom units are hard to find. A chart of social housing demand shows that 64% of people are looking for accommodation for one person. Developers on the coast tend to build three and four-bedroom homes and two or three-bedroom units. Many units are rented to holiday-makers.

Older people facing a tougher future

This is not a problem unique to the Coast. Pensioners and working parents have been priced out of the rental market in all metropolitan areas across Australia, according to National Shelter’s Rental Affordability Index (RAI), released on May 17.

Chief Executive of COTA Australia (Council on the Ageing) Ian Yate told a conference this week that older Australians were the forgotten faces of the housing crisis. He cited as examples the 70 year old divorcee facing homelessness, the 80 year old with a knee replacement who can’t find appropriate or affordable accommodation, the 68 year old couple retiring, still with a significant mortgage.

“Older Australians are increasingly falling through the cracks in the growing housing affordability and supply challenge,” he said. “A growing number of older Australians need to rent, rather than owning a home outright.

“We are already starting to see rates of home ownership by older Australians decline, and this is forecast to drop even further in the next 10-15 years.”

Anglicare’s annual report into housing affordability shows that welfare recipients and single-person households are the least likely to find appropriate accommodation. Queensland’s stock of social housing is just 3.6%, compared with a national average of 4.5%.

 

Rents are generally lower on the Sunshine Coast and the weather markedly warmer than the Southern States, even in winter. Little doubt this is why young people take their battered old wagons, surfboards and sleeping bags to the beach.

While many people in crisis use their cars as a refuge between one home and the next, others have developed an on-the-road lifestyle.

I once met a woman in her 50s whose camper van is her home and always on the road, unless she’s visiting family in one state or the other. Recently we met a couple who have a permanent caravan moored in a small town van park. They also have a bigger van for their grey nomad adventures. Safe to say most of their capital is tied up in these depreciating assets

For those who’d rather have a fixed abode, the Queensland Government recently made a ‘better-than-nowt’ commitment to provide 5,500 new social and affordable housing units over the next 10 years. Last year, the Government launched a Better Neighbourhoods initiative in fast-growing Logan City, with an affordable housing target of 3,000 by 2030.

Hoping for Hope Centre II

Family and Kids-Care Foundation established the Hope Centre in 2009, a complex of 19 self-contained units, designed for individuals and small family groups in crisis.

President Tass Augustakis told FOMM the charity is currently considering participating in the Better Neighbourhoods Logan initiative, seeking funding for a second Hope Centre which can accommodate larger family groups.

“The thing that got me going to start the Hope Centre was seeing women sleeping in cars with their kids. It just shouldn’t be happening, but it still is.”

Family and Kids-Care donated the land for the first Hope Centre and raised funding from the Federal Government to build it.

“After reading about the State Government’s affordable housing strategy, I’m organising a meeting to discuss Hope Centre II,” he said.

“We can provide the land, but we need the Government to contribute between $10 million and $12 million to build a four or five-level unit building.”

Cameron Parsell, a researcher with the University of Queensland, last year revealed that it costs governments more to provide services to the homeless than it costs to provide standard accommodation.

He produced ‘compelling and robust’ data in The Conversation which showed that chronically homeless people used state government funded services that cost approximately $48,217 each over a 12-month period. He compared this with another 12-month period in which the chronically homeless were tenants of permanent supportive housing.

“The same people used state government services that cost approximately $35,117 – $13,100 less when securely housed, compared to the services they used when they were chronically homeless.”

 

Urban studies researcher Emma Power, also writing in The Conversation, says single, older women are among the fastest-growing groups of homeless people in Australia. Yet most are unable to apply for community housing because the sole eligibility criterion is their low-income status.

Sadly, women who are not leaving a violent situation or who do not have a recognised disability will risk homelessness before they qualify for community housing.

The answer is for governments to provide more secure, low-cost social housing and/or increase rent-assistance payments across the board.

But as Power points out, the latter is not ideal. Although it assists renters in the short-term, it effectively subsidises private landlords.

This has been going on for a long time and it is getting worse, despite a lot of work by charitable organisations like St Vinnies. I tucked myself into my cosy bed (early) last night, feeling OK about raising the equivalent of a fortnight’s rent for someone.

But it is a band-aid at best.

Further reading:

http://www.huffingtonpost.com.au/2017/06/27/australias-homelessness-crisis-summed-up-in-four-news-events_a_23005274/

Everyone should have a home

 

Homelessness and affordable housing

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Homelessness and affordable housing, photo by Giulio Saggin

Last week I was walking from Roma Street Station to the top end of George Street, the hub of State Government. I was meeting friends for lunch and on the way passed a few apparently homeless young men on park benches, one tucked inside a doorway, others hovering around intersections, nervously smoking.

One young person was sitting on the footpath with a cardboard sign that read “homeless – please help”. I was too preoccupied on my mission so I ignored the hat, not even dropping a few coins on the return journey.

So now I’m hunting around the house for a decent sleeping bag and a beanie, hoping to make amends for my lapse in empathy by participating in a fund-raising community sleep-out on June 29. (If I chicken out I promise to donate money to the cause.)

Our local member Andrew Powell (Member for Glass House) has agreed to participate in the annual sleep-out.

Mr Powell wrote about this in his regular Glasshouse Country and Maleny News column. He will be among local dignitaries, business people and community members sleeping rough outside the Maroochydore Surf Club on June 29. Participants will be given a sheet of cardboard to sleep on and fed a simple meal of soup and bread rolls. Mr Powell says there are 1,500 homeless men, women and children on the Sunshine Coast.

The St Vincent de Paul northern diocese (which is organising the sleep-out), has provided support over the eight months to March 2017 to 450 homeless people, including 250 children.

The gesture by the Member for Glass House is admirable, but this is a problem that has, at best, been patched up by successive Queensland governments. The Sunshine Coast, which has a paucity of affordable and public housing, is named as one of the regional areas to be targeted by the new housing strategy.

The Rental Tenancies Authority published median rents for the Sunshine Coast region in December 2016. Tenants pay between $315 and $400 a week for a three-bedroom home or a two-bedroom unit. Rents are cheaper in the Hinterland areas like Beerwah, Peachester, Mooloolah, Palmwoods, Hunchy and Woombye, but public transport is limited and one needs a reliable car to live in these areas.

Meanwhile, Queensland has a plan

As the debate continues about the lack of affordable housing and how to find beds for homeless people, the Queensland Government has a 10-year plan.

The Government had some fairly positive (and uncritical), press about its plan to provide more than 5000 social and affordable houses. The $1.8 billion Housing Strategy announced in this week’s State Budget aims to get the private sector involved and utilise State government-owned land.

Treasurer Curtis Pitt said it was the biggest commitment to housing in Queensland’s recent history. The strategy will see more than 5,500 social and affordable homes built over the next decade. Eight hundred homes are to be built each year for the first five years. This is about double the number of social and affordable homes built in 2016-2017.

The Minister said the housing strategy includes $1.2 billion to renew the existing social housing property portfolio. A $420 million housing construction program aims to boost the supply of social and affordable housing. This includes $3.5 million to build two refuges for women and children escaping domestic and family violence.

The Government is also allocating $75 million to advance home ownership in ‘discrete’ Aboriginal and Torres Strait Islander communities.

At first glance this sounds like a bold plan, made with some compassion for those struggling to survive in a competitive housing market. On second glance, it is unlikely to make a dent in Queensland’s 25,000+ public housing waiting list.

Too little, too late?

Public and social housing comprised 4.8% of the total national housing stock, according to the Australian Housing and Urban Research Institute (2011 Census data). AHURI’s research showed that at a minimum, the social housing system would have to have been around 43% larger (on 2011 figures) to accommodate all those who met public housing eligibility criteria and who pay more than 50% rent.

Nevertheless the Queensland strategy has been welcomed by the construction industry and the housing sector, as it is said to provide 450 jobs. One of the more positive aspects of the plan is that 5% to 25% of the land used for these purposes will be land already owned by State Government. This implies vacant or under-utilised land near public buildings like hospitals and schools. So maybe at last the under-privileged will get to live in the middle-ring suburbs of Brisbane rather than 49 km away in fast-growing Logan City.

In December 2016, the State Government announced a $1 billion investment plan to build 3000 new houses in Logan City over 20 years. Minister for Housing and Public Works Mick de Brenni said the Better Neighbourhoods Logan initiative would deliver a range of economic and social benefits, including 410 new social and affordable dwellings over the next five years and over 3,000 new homes by 2036. A spokesman confirmed that the 3000 social and affordable homes are part of the Budget housing strategy. That leads me to surmise that another 4000 homes will be built in other regions over 10 years, on average, 40 new houses per year for each of the 10 regions identified by State Development.

The strategy shows some progressive thinking in that new social or affordable housing strategy should incorporate:

  • Rental bond loans to help tenants meet the private market;
  • Provision for public housing tenants to own their own home through shared equity loans or rent-to-buy schemes;
  • A new Housing Partnerships Office to streamline processes and lower costs and time frames;
  • Private sector involvement through expressions of interest to develop small, medium and large developments in regional centres;
  • $29.4 million to provide front line services for victims of domestic violence and young people at risk of homelessness. This includes a $20 million boost for ‘youth foyers’ – supported accommodation for young people aged 16-25 who are either homeless or at risk of becoming homeless.

Looking after property investors

The State Budget announcement follows a plan revealed in the 2017 Federal Budget to allow a tax break to invest in social housing.

Retail and institutional investors are being offered a 10% increase in capital gains discount (from 50% to 60%). The Australian Financial Review reported that the scheme, aimed at Management Investment Trusts, would allow the discount to MITs and their investors, provided they offer the properties at an affordable rent for at least 10 years. The AFR said the Government also planned to issue bonds backed by rental income from social housing, replacing bank debt issued to approved social housing developers.

While governments play ‘catch up’ with affordable housing, the onset of winter should turn our thoughts to the homeless.

As Andrew Powell observed, it is not a matter of choice.

“In many cases homelessness comes about through factors out of a person’s control – whether this is mental or physical illness, financial instability, lack of education, domestic violence or something else entirely,” he wrote in the GCMN.

Yes, and sometimes all of the above.

 

 

Homeless for a week

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Photo ABC/Giulio Saggin

The first time I thought of Homelessness Week 2016 (August 1-7) was when a young family member posted something on Facebook, aiming to raise funds for a St Vincent de Paul homeless charity, Fred’s Place. Alice took part in a community sleep out on Thursday night, raising funds to keep Fred’s Place operating.

Vinnies operates a few such sites across Australia. This one in Tweed Heads offers a home and support for people experiencing homelessness or who are at risk of homelessness.

Fred’s Place is a fully renovated home with three bathrooms, a large laundry, internet and telephone, television, staffed kitchen, inside and outside areas to socialise, storage and mailing facilities. There’s also a dedicated room for Centrelink, Medicare, Counselling, Legal Assistance and Housing NSW, all available on a weekly or fortnightly basis.

You might read elsewhere about chief executives sleeping rough for a night to get the smell of homelessness in their nostrils and raise money for charities. They’ll be up bright and early next day for eggs benedict and lattes at their favourite café, but who’s quibbling about that? All of these once-a-year sacrifices by those fortunate to have a job and a roof over their heads helps highlight homelessness as a serious issue.

New data from the Australian Institute of Health and Welfare shows that almost 256,000 people received assistance from homelessness services in 2015. So yes, it is serious.

High rents and tight vacancy rates are forcing many people to settle for less than ideal accommodation, be it share houses, hostels, motels, serviced apartments, or, down the other end of the scale, living in their cars, in campgrounds, under freeway overpasses, in tunnels or huddled in doorways.

As I wrote in the Hinterland Times last year, the Sunshine Coast is not immune from homelessness. In upmarket Noosa, where the median house rent is $650 a week and a three-bedroom unit rents for $510, 60 people, including 22 children, ended up at Noosa’s Johns Landing Camp Ground.

I began to wonder what happens to these people on the fringes, heading off to work each day,  in a region where there is a paucity of emergency or affordable housing.

Habitat for Humanity, an organisation founded by Millard Fuller and supported by former US President Jimmy Carter in the 1970s, builds houses for families who want to improve their circumstances. More accurately, the people who will ultimately live in these houses help build them. Those wanting to own a Habitat home have to be employed, scratch up a deposit and have the capacity to repay a no-interest loan. They must contribute 500 hours of ‘sweat equity’, helping volunteers and pro bono tradespeople. Habitat for Humanity has built, rehabilitated and repaired over 800,000 homes, providing four million people with improved living conditions.

The first time I visited Winnipeg, it was a refuelling stop on a flight from London to Los Angeles.  We sat on the tarmac and looked out the window where men in bright orange parkas circled the aircraft, fogging it with hand-held hoses to stop ice forming on the wings. Subsequent visits to Winnipeg, at one time home to the elder brother of She Who Was Born In Canada, Eh, were thankfully in the summer.

Those who have never been there probably know of winter on the Manitoba prairies via SBS weather, cheerfully reporting Winnipeg to be 40-below in January (average daily max -13.9). We were on a tour of the city with my brother-in-law when I spotted a homeless person asleep on a park bench.

“Jon, what happens to these people in the winter?” I asked. He then explained Habitat for Humanity, which at the time was very active in Winnipeg. When you live in a town where the rivers ice over and you have to plug your car in to stop the engine block freezing, you need a house – with central heating.

Habitat is a concept which would appeal to people who disapprove of social security, as Habitat for Humanity is a ‘hand-up’, rather than a handout. In Canada, Habitat’s funding is greatly enhanced through a chain of thrift shops called ReStore. Jon Toogood says he and several colleagues founded ReStore in Winnipeg in the 1980s and the concept has since spread world-wide. ReStores sell donated household goods and recycled building materials. Jon tells me the two stores he co-founded grossed $1.2 million last year.

Habitat for Humanity has not caught on in Australia to the extent it has in New Zealand where there is a national head office, 10 affiliates and 13 ReStores. There are two chapters in Queensland (Gympie and Ipswich). NSW has five chapters, Victoria has three and its operations include two ReStores.

Spokeswoman Jen Farmer said Habitat Queensland was currently researching to see if a ReStore could be viable here. Ipswich coordinator Ken Fischer said the local chapter was set up in 2005. Its first project was to renovate a house moved from Victoria to a quarter acre block. Mr Fischer said three prefab houses were donated to Habitat in 2011 to replace Ipswich homes destroyed in the flood. The homes were located on the same land, but raised on 2.5m stumps.

Mr Fischer said the Ipswich chapter had recently begun to work with social services groups to train homeless people to become trades assistants and work on Habitat projects. Long-term, they plan to look at how Habitat can provide housing for homeless people.

Not that it matters now, but I remember my brush with homelessness. I had paid for a one-way air ticket to New Zealand and had £11 to survive in London for a week.

Even in 1977, £11 didn’t go far. A contact told me about a hostel in Charing Cross where I could stay for a week, all found, for £9. I had to pay up front and, relieved to have somewhere to stay, it took a while to realise this was one of those homeless shelters where they feed you dinner and breakfast and put you on the streets between 9am and 5pm. I was assigned a bed in a large dormitory full of smelly, farting men whose tubercular coughs and nightmare screams kept me awake half the night. Some of those screams might have been my own.

In the bed next to mine was a 30-something Irishman who’d come to London to work on building sites but no such work eventuated. Like me, his capital had dwindled and he was now hard pressed to make himself look presentable and stay upbeat to look for work. We found a homely workers’ café in a Soho back lane where lunch – soup, bread rolls and a bottomless cup of tea – cost 50p. As I recall, my Irish friend and I shared a tureen of soup, snagging extra bread rolls from the counter while no-one was looking.

Appropriately, Mel Brooks’ comedy High Anxiety was one of the movie choices on the flight back to sunny, green New Zealand. I scored a job as a storeman packer two days later and rented a room in a share house with like-minded people. I sometimes wonder about the Paddy with the soft voice and shy manner and how his life turned out.

More reading:

http://bobwords.com.au/everyone-should-have-a-home/

http://bobwords.com.au/goodwill-housing/

http://bobwords.com.au/little-bit-compassion/

 

Goodwill housing

While we’re all getting in the goodwill mood, Australians need to think seriously about this country’s housing problem. There isn’t enough of it to go around and what property is available is often out of the reach of low income households.

 Housing affordability chart

(Percentage of age groups with mortgages: ABS Surveys of Income and Housing)

This is no overnight thing. Tax concessions which favour property investors have led to a big swelling of their ranks – some 1.18 million. First there was negative gearing, re-introduced in 1985, which allows investors to claim rental expenses and interest on housing loans against their income. Second, the 50% capital gains tax exemption which property investors have enjoyed since 1999. Most invest on the expectation of future capital gain, rather than negative gearing benefits.

A 2014 article in The Conversation by Kate Shaw revealed that Australia’s GDP contribution of real estate transactions is the highest in the world – three times higher than in the US. Around one in seven Australian taxpayers owns one or more investment properties. Australia also has one of the highest levels of household debt in the OECD, due to mortgage borrowings.

As recent research on Australia’s rental market has found, those in the lowest 40% of gross income group struggle to meet rental costs and in capital city markets like Sydney or Melbourne pay up to 65% of their income for rental accommodation.

As a rule of thumb, low income earners paying 30% or more of their gross income in rent or mortgage payments are suffering housing stress.

Gavin Wood and Rachel Ong writing for The Conversation earlier this year underlined the growing problem of housing affordability. In 1982, the ABS survey of income and housing stated that 168,000 (or 10%) of home buyers spent more than 30% of their gross household income on housing costs. By 2011, those numbers had soared to 640,000, or 21% of all home buyers.

Wood and Ong also found that young first time buyers are finding it increasingly difficult to buy a home. As the chart above shows, the rate of home ownership in the 25–34 year age group slumped from 56% in 1982 to only 34% in 2011.

Wood and Ong say one in six Australians own two or more houses and 30% are holiday houses (2010 figures).

The Australian Housing Urban Research Institute (AHURI) says that while private rental is an important and growing part of our housing system, it has failed to serve the housing needs of low-income people. The 2006 ABS Census showed that 22% of households rent privately. In 2006, private renter dwellings numbered 1.47 million Australia-wide, an increase of 11 per cent since 2001.

But new research by A.C Nielsen for domain.com.au estimates that up to a third of Australians over 18 are renting, with higher proportions in the Northern Territory (43%) and Queensland (36%).

The stumbling block for people looking to rent a house or unit in a capital city is the up-front cost (usually a month’s rent and a bond (assuming $1000), not to mention storage and moving costs. FOMM figures the average establishment costs of a lease in one of five capital cities to be $2,828).

And domain’s rental market research shows it can be a short-lived reprieve, with 47% of Australians living in their current rental property for less than two years, and only 27% in the same property for more than five years.

Housing policy NGO National Shelter instigated the Rental Affordability Index as a response to media and political obsession with house purchase markets. The Index highlights the severe housing stress experienced by renting Australians. The report was produced by National Shelter, Community Sector Banking (CSB) and SGS Economics and Planning.

National Shelter executive officer Adrian Pisarski says the index fills major gaps in housing data, as it tracks household rents against household incomes in capital cities and regions across Australia.

“It reveals deterioration in our rental affordability, a result of 25 years of policy inadequacy and market failure. It shows why our low income households live in poverty and why life is a struggle, often a desperate one for moderate income working families.”

The RAI gives households who are paying 30% of income on rent a score of 100, a critical threshold for housing stress. A score below 100 indicates severe housing stress.

The report’s key finding is that while average rental affordability remained below 30% across all states, households in the lowest 40% of income consistently face severely and extremely unaffordable rents. This is the case in all regions of Australia. In the worst cases, non-family households are spending more than 60% of their income on housing (Sydney and Melbourne). Causes of homelessness, then, are shifting from traditional factors (escaping abuse, substance misuse, mental health issues), to being pushed out of the housing market by those with higher incomes.

People who are struggling to live on a government payment are the worst-affected by the crisis in affordable housing, according to the 2015 Anglicare Australia Rental Affordability Snapshot. The snapshot across all cities and regions shows that of the 65,500+ properties assessed for suitability, less than 1% were available for single people living on government allowances. Single people on the minimum wage would find 3.3% of these properties to be affordable. A working couple would fare better, with 23.8% of these properties suitable for their level of income. An age pensioner couple would find only 3.4% or 2,239 properties affordable.

Pisarski says the basic problem remains the lack of affordable rental properties and the lack of housing supply in general. He says one of the results is an emerging trends towards inter-generational living, with two and sometimes three generations under the one roof.

Australians are afforded little in the way of tenant protection, compared with cities in the US and Europe where rent controls and security of tenure are considered to be an important adjunct to social security.

Shaw makes a few broad comparisons between tenant legislation in Victoria and Germany. Rents can be increased in Victoria every six months with no limit on the amount (though the tenant may have grounds for appeal). In Germany, rent increases are capped at 20% every three years. In Victoria, 60 days is the standard amount of notice to vacate. In Germany notice varies according to how long the tenant has lived there: three months is the minimum for someone who has lived in the property for less than five years. Six months’ notice is required for a tenancy between five and eight years; nine months for longer than eight years.

In a perfect world, the Australian government would be looking to offer tax incentives to investors to rent to eligible (low-income) families at well below market rent. There was such a scheme, called the ‘National Rental Affordability Scheme’, but this only applied to investors building new dwellings, and as of September 2015, at least in Queensland, even this limited scheme was shut down:

To end this penultimate FOMM for 2015 on a cheery note, I read recently of one landlord who gave his tenants a one month ‘rent holiday’ as a Christmas present and thanks for being good tenants.