Tent city in suburbs is cost of home crisis 

By Dana Ford

ONTARIO, California (Reuters) - Between railroad tracks and beneath the roar of departing planes sits "tent city," a terminus for homeless people. It is not, as might be expected, in a blighted city center, but in the once-booming suburbia of Southern California.

The noisy, dusty camp sprang up in July with 20 residents and now numbers 200 people, including several children, growing as this region east of Los Angeles has been hit by the U.S. housing crisis.

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"I don't think there are enough police to go after criminals holed up in those houses, squatting or doing drug deals or whatever," Wiseman said.

"And it's not just a problem of a neighborhood filled with people squatting in the vacant houses, it's the people left behind, who have to worry about people taking siding off your home or breaking into your house while you're sleeping."

Health risks are also on the rise. All those empty swimming pools in California's Inland Empire have become breeding grounds for mosquitoes, which can transmit the sometimes deadly West Nile virus, Riverside County officials say.

'TRICKLE-DOWN EFFECT'

But it is not just homeowners who are hit by the foreclosure wave. People who rent now find themselves in a tighter, more expensive market as demand rises from families who lost homes, said Jean Beil, senior vice president for programs and services at Catholic Charities USA.

"Folks who would have been in a house before are now in an apartment and folks that would have been in an apartment, now can't afford it," said Beil. "It has a trickle-down effect."

For cities, foreclosures can trigger a range of short-term costs, like added policing, inspection and code enforcement. These expenses can be significant, said Lt. Scott Patterson with the San Bernardino Police Department, but the larger concern is that vacant properties lower home values and in the long-run, decrease tax revenues.

And it all comes at a time when municipalities are ill-equipped to respond. High foreclosure rates and declining home values are sapping property tax revenues, a key source of local funding to tackle such problems.

Earlier this month, U.S. President George W. Bush rolled out a plan to slow foreclosures by freezing the interest rates on some loans. But for many in these parts, the intervention is too little and too late.

Ken Sawa, CEO of Catholic Charities in San Bernardino and Riverside counties, said his organization is overwhelmed and ill-equipped to handle the volume of people seeking help.

"We feel helpless," said Sawa. "Obviously, it's a local problem because it's in our backyard, but the solution is not local."

© Reuters 2007. All rights reserved.

Comment by WakeUp 01:09 PM Mon Dec 24th: Very good article. The American people are entitled to know, from whatever source, what the recent and ongoing political and financial insanity is doing to this great nation.

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My fellow agents:

I just got back from a Christmas party at Peter's home who is my good neighbor.  Right before I went to his party, other neighbors Rachel and Davis brought me my Christmas card, gift and desert from them to my house.  What kind of neighborhood I picked up 1 year ago when I lived in Los Angeles, CA, without seeing my dream home before escrow was closed!

This is the one of best Christmas I've ever had.  I enjoyed all gourmet food: beef rib, lamb, fish, fruits and gifts from my loving neighbors.   I felt like I am the most lucky person in the world in the community!  But when I saw the pictures provided by the above Reuter's news, I felt so upset and so full in my stomach that I need rush for Rolaid.   Their tent caused me full of tears!  How could that happen to my poor fellow people when those 4 big Wall Street fat cats increase their bonus to $50 billions this year.

I agree with Sawa that it is a local problem.   But I disagree that it can't not be solved locally.  NO, WE ARE NOT HOPELESS!

Two hundred years ago, we didn't count on a SUPER government like British Cabinet to save us from problems in our colonies.  We solved them with our own knowledge, creative mind and determination by ourselves.  Where goes the spirit and tradition of our pioneers or settlers?  Trust me, there was no help for us in time far from the British King in the past.   We DON'T need a big government or a NEW DEAL Roosevelt now, do we?  A democracy is oriented as a grass-root system. 

Gee! God is so unfair to everyone.  They are living in their Tent City with inhabitable condition.  How come I deserve this?  One old man and a old dog have 9 bedrooms and 5 bathrooms with AC on all day in this cold winter.  

I am so optimistic that I don't believe it is going to cause problems like the news described.  The situation shall be fully controlled or contained.   I believe it would make some discomfort, but not too serious in general macroeconomics.  Those politicians should have the ability to discharge this small problem.  See, Mr. B. B. has done a great job to the credit crunch.  It is a piece of cake job for them to help people's survival.  However it seems I mistrust some local politicians.  Something could turn into ugly in some local areas. 

I can't stand it that really happens to MY OWN PEOPLE in my great country.  I am so angry!   Is it so tough job? How can I help?   What kind of ball game I may be able to play with excellent calculated results?   Those questions keep coming up in my mind today.  

Certainly I know the theory and practice of real estate no matter it is a hardware or software.  I have a good business plan.  No, I don't need any privilege granted to GSE by our Congress.   That's against my belief and philosophy: too much regulation we have had already.    We don't need more public charity program.   No government grant is needed.   We just need do business as a decent capitalist in a very normal and reasonable way to comply with the current Market mechanism.

But It is clear that I can't do it by myself.   No, I can't count on a politician.  They are excellent at lip service, but just not good at an effective solution.   

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My previous immediate comments:

1. 

Good law in California - but it sounds like the renters would be standing in line for their money.  Can't get blood out of a turnip.

12/25/2007

by James Downing

Hi! James:

Yes, Good law with good intention.  The only problem is just like you said "how to get blood of a turnip"?  But that's not a concern of a politician who is only good at "lip" service.  

2.

Sounds terrible!

Indeed, WakeUp deserves to ask the question I always have in my mind: "What the insanity is doing onto this great country?"

I don't know what all the politician are going to deal with the "shortage" of police power when a reduction of property tax revenue is expected, even California Governor declared a "fiscal emergency." But based on my experience, I do know it is obviously NOT going to work as a real medicine.  It is a band-aid at best. 

All I think these days is it is really a piece of cake for me to solve such problems as happens in Ontario if I have a foundation with $2 million start-up capital.   At least, the foundation is able to help reduce the distress very quickly and efficiently.   No lip service or negative GNP production at all.

The foundation's main goal is working at keeping the owners stay at their homes, not to leave.  The goal is to get the owners a new loan amount and monthly payment they can work with without interest rate cut or freeze to create a negative amortization later.  At the same time this capital seed money is getting at least $12% return for its investors in the first year.

Can we accomplish that? What kind of business plan I have to cure the problem?

Try me, if you have $2 mil.

p.s.  There were 11 pictures for the story when I saw it.  Reuters took one picture out.  It is the one on which most tears incurred that is how the sanitary condition they have in the tent.  Are we in a refugee camp of a 3rd world country?