Sunday, July 28, 2019

#BoycottGreed: A Solution to the Affordable Housing Shortage

#BoycottGreed: A Solution to the Affordable Housing Shortage

Cities across America are experiencing a phenomenal shortage of housing that is affordable for those earning minimum wage with some reporting that housing is becoming out of reach for what's left of the middle class. How do we solve this problem knowing that local governments' efforts to encourage construction of affordable housing through tax breaks, reduced fees and other enticements often end up far short of filling the vast need? How do we address the underlying profit over people motif that is blocking construction of affordable housing?

Let me be very clear: we have all the money we need. The United States possess the bulk of the world's wealth. We know that wealth is concentrated in the hands of the top 1%. We now know that personal profit—greed—is the only goal of the billionaire in the White House who champions deregulation of multiple industries and tax cuts for all of his wealthy supporters who share the sole goal of 'more for me, none for you.' We know that money does in fact buy power and that power favors its owner—a betrayal of its allegiance to the people. So, how to get the money we need to build housing for all of us working people earning a paltry minimum wage...

About a month ago, along came #BoycottHomeDepot because two of its old fart founders contributed several million dollars to Trump's campaign and spit the name 'Antichrist' at a progressive who staunchly supports workers rights, equality, justice. We know that Home Depot has been raising its stock price through buybacks over the last ten years. Every quarter, Home Depot cuts employee hours—forget that minimum wage income means cost-burdened housing and reliance on food stamps—in order to squeeze expenses to fatten the wallets of the biggest shareholders. They have banked billions with this scheme that makes their earnings look better and enriches shareholders while employees struggle merely to survive. But, Home Depot is not the only corporation banking on the slavery of the working poor.

Apparently, Amazon has scrounged up $25 billion to conduct a stock buyback; Home Depot is planning a $15 billion buyback. Other buyback monsters include Apple, Kohl's, AutoZone, Travelers, Northrup Grumman, Lowe's, Gap, and IBM. CNBC reports that buybacks worth more than $900 billion last year set a new record. So, how many affordable housing units could be built with $900 billion? Divide $900 billion by the estimated cost of $86,000 per unit and we have 10,465,116 units. Wow. The National Low Income Housing Coalition reports that the U.S. Has a shortage of over 7.2 million affordable housing units. Last years stockholder jackpot would fill that shortage and then some.

Colorado Springs has a shortage of over 25,000 affordable units; the cost of building 25,000 units at $86,000 per unit would be just over $2 billion. Home Depot alone could build all the needed units and have $13 billion left over. Still think we can't solve the affordable housing shortage? We can. #BoycottGreed until the corporations pay their fair share.




Tuesday, June 18, 2019

Unfair Landlord Tenant Law Costs Colorado Taxpayers Half a Billion


The Cost of Doing Nothing To Make Landlord-Tenant Law Equitable

37,971. That is the total number of eviction cases filed in the state of Colorado in 2017 alone, representing 27% of the state’s total caseload resulting in thousands of homeless or rent-burdened or low-income earners trapped in substandard housing conditions (Judicial annual, 2017).
Since 2014, the Colorado courts have processed 150,086 eviction cases averaging 26% of the state’s caseload. Each of the 150,086 eviction cases stand as evidence of landlords’ use of the courts as cover for their own failure to comply with the terms of the lease contract.
  • 150,086 Coloradans facing homelessness, substandard housing conditions, and entrapment in poverty from our largest cities to our most productive rural counties.
    • 21,579 evictions in Denver County (2014-2016), 8,113 in 2016 alone
    • 30,221 evictions in El Paso County including Colorado Springs since 2014, 6,908 in 2017 alone
    • 5,089 evictions in Douglas County including parts of Aurora, 1,456 in 2017 alone
    • 6,238 evictions in Weld County, 1,520 in 2017 alone
    • 504 evictions in Morgan and Yuma Counties, 124 of those in 2017
  • 150,086 Coloradans whose credit has been ruined as a result of being evicted while the landlord is free to victimize the next renter by tricking them into a contract for an apartment that has black mold, cockroaches, water damage, inadequate heat or water supply, windows and doors without proper locks.
7,571. That is the number of homeless persons in Colorado counted on one night in 2017 (Henry et al, 2017). Of that total, 4,019 homeless in Denver and 1,415 homeless in Colorado Springs.
637,938. That is the number of Coloradans living below poverty level (U.S. Census, 2016).
730,999. That is the number of renter-occupied housing units in Colorado (U.S. Census, 2016).
40.9%. That is how many Coloradans are rent-burdened, meaning they pay more than 30% of their monthly income on housing expenses (U.S. Census, 2016).
427,000. That is the estimated number of Coloradans with asthma—a chronic condition triggered by mold, cockroach allergen, pollutants, pet dander, and other irritants often found in substandard housing (Martin et al, 2008).
Landlords and their lobbyists like to talk numbers, but their complaints of burdensome business expenses don’t add up compared to the social costs borne by all tax payers across the state to cover expenses from court costs of processing evictions to sheltering and feeding the homeless and low-income families. Social costs become real costs borne by communities and cities across Colorado due to tenants’ inability to petition the court for contract compliance. The total annual budget request for the Colorado Judicial Department in FY2016-17 was $536.4 million, an increase of $4.8 million over FY2015-16 (Judicial Branch Budget Request, 2016). Eviction cases account for an average of 26% of the total caseload. In 2007, there were 4,044 hospital stays averaging 3 days in length for a median charge of $10,729 per asthma case; Medicaid, Medicare, and other government programs were the primary payor for 45% of the asthma hospitalizations (Martin et al, 2008). Finally, shelters estimate costs of about $40,000 per year to house and feed one homeless person. How much do Coloradans have to pay to relieve the burden of common business expenses on landlords? Communities bear the social cost of substandard housing in ways that are not easily quantifiable. However, we can estimate the bottom line on court costs, medical expenses, and the cost of feeding and housing the homeless. The total cost passed on to all Coloradans: the court’s budget for evictions--$140 million; sheltering and feeding the homeless, $303 million; 45% of asthma hospital stays under Medicaid and Medicare programs, $20 million; for a final bill of $463 million.
Consumers in Colorado have better protection against any other business or service than they do against predatory landlords. It’s time for that to change. It’s time for renters to have the right to enforce the terms of the lease agreement and to ensure the basic foundational need of a home that provides the security and safety upon which to build their lives and livelihoods.
Arizona, New Mexico, Oklahoma, Kansas, Nebraska. These are our neighboring states that have equitable landlord tenant laws; five of the seven states that directly border Colorado recognize the right of renters to enforce the rental contract. Our neighbors recognize the right to withhold rent, to repair and deduct, to sue for damages, and to petition the court to support enforcement of the lease contract. Almost forty years after most of the states, including our immediate neighbors, have recognized landlord tenant law as one based in contract law and not common law, Colorado adopted a warranty of habitability law but stripped away the tenant’s ability to enforce the contract including to petition the court for injunctive relief.
The fundamental basis of contract law is equitability in the enforcement of contractual obligations. Current Colorado landlord tenant law explicitly removes the tenant’s opportunity to enforce the rental contract; this begs the question of unconscionability. Landlords fail to conduct proper maintenance and repairs of their rental properties and fail to disclose this fact to potential renters. Local news reports such trickery in the state’s three largest cities--Denver, Colorado Springs, and Aurora. Renters fear being evicted if they notify the landlord about maintenance problems and the landlord neither responds nor repairs the problem. Among the maintenance problems are leaking water pipes that have caused black mold growth in walls and floors, cockroach infestations, lack of heat, broken fixtures, lack of insulation around windows and doors. Each of these represents a breach of the warranty of habitability but the tenant is denied access to the mechanism that enforces compliance with habitability law and health and safety codes—the courts.
The bill before the General Assembly Concerning a Landlord’s Breach of the Warranty of Habitability repairs the errors of the 2008 Warranty of Habitability law. Colorado 9to5 supports legislation to update and amend current Warranty of Habitability law in Colorado consistent with the original provisions of the Uniform Residential Landlord Tenant Act of 1972 adopted by the majority of western and central neighboring states. These provisions include:
  • the right of tenant to withhold rent
  • the right of tenant to make repairs and deduct cost from rent
  • the right of tenant to break a lease due to uninhabitable conditions
These provisions are consistent with equitable tenets of contract law that protect both landlord and tenant.
The recommendation is singular and simple: remove the barriers in Colorado’s current landlord tenant law preventing the rightful parties to a lease contract from seeking enforcement of the terms of the contract in a court of law. As Coloradans like to say, get government out of the way of the people’s right to address matters concerning their own lives and well-being.

References
Colorado Judicial Branch. Annual Statistical Reports, 2014-2017. Retrieved from: https://www.courts.state.co.us/Administration/Unit.cfm?Unit=annrep
Henry, M., Watt, R., Rosenthal, L., Shivji, A. (2017). 2017 Annual Homeless Assessment Report to Congress. U.S. Department of Housing and Urban Development. Retrieved from: https://www.hudexchange.info/resources/documents/2017-AHAR-Part-1.pdf
Martin, J. & Calonge, N. (2008). The Colorado Asthma Surveillance Report. Colorado Department of Public Health and Environment. Retrieved from: https://www.cohealthdata.dphe.state.co.us/chd/Resources/adultdata/asthmaSurveillanceReport.pdf
United States Census Bureau. (2016). American Fact Finder. Retrieved from: https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml



UPDATE: The total number of Eviction cases filed in Colorado: 39,081 in 2018, for a total of 187,167 since 2014. Eviction cases filed in El Paso County, including Colorado Springs: 7,171 in 2018 and 37,392 since 2014.


NOTE: ICYMI, the bill passed and was singed into law effective August 2, 2019.

Slums, Evictions, and Profiteering Landlords: Why We Need Safe & Healthy Homes Law

In my original, if lengthy, testimony in support of Safe & Healthy Homes this past session I managed to explain how landlords take advantage of the law's presumption of good intentions and in fact exploit renters, rip us off, treat us as worthless yet expect us to pay rent for dilapidated conditions. Here's my original full written testimony.

Today, this committee is considering a bill that strengthens equitable enforcement of a lease contract between tenants and landlords. I am here to share my experience as a renter so you know the impact on human lives and community when renters bear the presumption of bad faith as the General Assembly codified into Warranty of Habitability law in 2008. The presumption in law favoring the landlord's so-called good intentions almost cost me my life and in another incident almost destroyed my credit and access to assistance.

In 2009, I moved into an apartment that was affordable based on my income only to learn that winter that the property manager had not disclosed that the gas heating unit had been red-tagged. I found out after I woke up so dizzy and nauseous in the middle of the night that I had to crawl from my bedroom across the living room to open the front door and fall out across the threshold into the snow. When my head cleared up enough that I could stand again, I opened every window in the apartment and shut off the heater that was burning bright orange flames. I left a message for the property manager describing what happened and asked to have someone check the gas heat unit. When I got home from work the following day, the manager and an employee of a well-known reputable heating and cooling company were in my apartment. I asked if the heater was the problem and what had happened. The manager simply said that it was fixed now but the guy that did the work turned to me and said, “I don't know how you're still alive.” He further informed me that the unit had been red-tagged by the City as hazardous and should not have been used until it had been repaired and inspected. I was that close to being a casualty of carbon monoxide poisoning. Simply because the landlord preferred to risk my life than spend a few bucks to repair a red-tagged gas heater.

My second experience with a slumlord took place in 2014 ending in early 2015 with the advice of Colorado Legal Services. When I moved into an apartment in Fountain, I noted a long list of discrepancies including mold in a bathroom wall and ceiling, loose tiles around the tub, a broken window that could not be closed or locked, a sliding patio door that did not have a lock, and other maintenance problems. For the next month I kept asking about the promised repairs, then things got worse. The day after Thanksgiving started out as a normal day. But that quickly changed. As I ran the water in the bathroom sink to brush my teeth I noticed the drain was sluggish, then the toilet bowl started to gurgle and back up with brown water. The same gurgling sound crept under the bathtub followed by a stench, then debris and brown water—technically, greywater. Within minutes I heard a rush of people pass my front door, panic in their voices. I ran to the door and stepped out into the hall. No one could find the manager or figure out how to shut off the water main.

Over the next hour, greywater filled the bathtubs, sinks, and toilets of every apartment on the first floor. We were flooded. Someone finally reached the property owner; he was not eager to leave his $500,000 home in Monument on a holiday weekend to deal with a maintenance issue at his slum property in Fountain. When he finally arrived about six hours later, he said he would wait until Monday to call a plumber because the repair would already be expensive; calling a plumber on a holiday would cost even more. I told him to get a plumber out here today or I will call the police and the local paper.

As we waited for the plumber to arrive, I listened to the owner's wife complain about the amount of money they spent on maintenance and that she had told her husband repeatedly to sell the place. One of the tenants cautiously approached. Choking back tears, she said that her mattress had been ruined; she kept it on the floor because it was easier on her back injury. She didn't have renter's insurance. The owner's wife snidely remarked that no one was getting a penny out of her over this mess.

Maintenance problems compounded over the following months. After the Thanksgiving flood,waking up one December morning to a dusting of snow in my bedroom thanks to a broken window, and a bathroom moldy ceiling bulging under the weight of a water leak, I contacted City Code Enforcement. Apparently that made me a target for eviction. I had some help from legal aid in drafting a reply including Code Enforcement's order to repair that owner ignored all to effectively result in a constructive eviction and the filing deadlines gave me some room to find another place. It worked. But the owner tried to come after me for the cost of repairs that were never conducted as well as rent. That didn't work. I was bankrupt.

For the many landlords that take advantage of the presumption of good intentions, their objective is pure profit. For renters, this poses an existential crisis. It's strange to see how people are treated in a city that seems to have churches on every block like other cities have 7-11s. But that isn't enough. There is a persistent, cruel attitude toward low-income and renters in particular. This is evident on the El Paso County Sheriff's Office's website offering landlords assistance in finding “good” tenants. This attitude reflects the presumption of a landlord's good intentions set in law in 2008 and inversely demonizes renters. You can't have good without bad, right without wrong. The 2008 law targets low-income earners who are never more than one paycheck away from living on the street; this law makes that terror even more likely to occur. There were 7,171 evictions filed in El Paso County court in FY2018, almost always due to inability to pay rent. In eviction court, the only issue is whether the tenant will pay rent and when, or when the tenant will move. There is no room for consideration of extenuating circumstances, no room for trying to keep from adding to the homeless population, no humanity or justice in the law at all.

A professor in the economics department at UCCS explained that what is missing in business is ethics. I believe that is evident in how I see people treated: moved along, tossed out of their home, homeless, labeled by NIMBYs as “those people.” I also believe that can be changed. That's all I want in life. To make it better for all of us.


Home is the foundation of human development and building safe, healthy, sustainable communities. After 11 years of putting profit margins over people, I urge putting people and community first by adopting this bill to make tenant landlord law equitable.

NOTE: It passed and was signed into law, effective August 2, 2019.  


Safe and Healthy Homes for Colorado Renters Signed into Law

This legislative session I was proud to testify in support of the Safe & Healthy Homes Act. My original draft consisted of several pages--one of my ancestors must have kissed the Blarney Stone, I talk way too much. So, "fast forwarding to the present" as someone once rudely prodded me to do, here is the short version of my testimony. I think you will see why I am a housing advocate:


Good evening/afternoon chair and committee members. My name is Royla Rice; I am a renter in Colorado Springs and a member of 9to5 Colorado. I am here to testify in support of the Safe & Healthy Homes Act, HB 1170.

I want to tell you about my personal experiences with substandard housing and unscrupulous landlords. In 2008, I moved into an apartment in Colorado Springs that was affordable based on my income. In the middle of a cold winter night, I woke up so dizzy and sick that could not stand. I crawled across the apartment to the front door, opened the door, and fell out across the threshold into the snow. When my head cleared up enough that I could stand again, I opened every window in the apartment and shut off the heater that was burning bright orange flames. The next day, the manager was reluctant to tell me what had happened but the guy that did the work told me he didn't know how I was still alive. He informed me that the gas unit had been red-tagged by the City as hazardous and should not have been used until it had been repaired and inspected. I was that close to being a casualty of carbon monoxide poisoning because my life was not worth the cost to repair a red-tagged gas heater. I was eventually able to move to a larger apartment complex but left when the lease was up because management was increasing rent by $200 per month which was not affordable.

That move led to my second experience with a slumlord. On moving into an apartment in Fountain, I noted a long list of needed maintnenace and repairs including apparent mold in a bathroom wall and ceiling, loose tiles around the tub, a broken window that could not be closed or locked, a sliding patio door that did not have a lock, and other problems. A month went by, then another with nothing but excuses from the manager. Early the day after Thanksgiving, as I ran the water in the bathroom sink to brush my teeth I noticed the drain was sluggish, then the toilet bowl started to gurgle and back up with brown-colored water. The same gurgling sound crept under the bathtub followed by a stench, then debris and brown water—technically, greywater. I heard people running in the hall trying to figure out how to shut off the water main as greywater filled the bathtubs, sinks, and toilets of every apartment on the first floor, including mine. Someone finally reached the property owner. He was not eager to leave his $500,000 home in Monument on a holiday weekend to deal with a maintenance issue at his slum property in Fountain. When he finally arrived about six hours later, he said he would wait until Monday to call a plumber because the repair would already be expensive; calling a plumber on a holiday would cost even more. It took the rest of the weekend to get some kind of repair completed and the water back on. Not once did the owner offer to provide water or some other place to stay; he left us to live in that muck for three days.

In either case, if I had an equal legal right to enforce the terms of the lease contract then I would not have faced retaliation or been forced to move out. But that's what happened to me in both cases. I didn't choose to live in these places for any reason other than it was affordable based on my income. Rent in the Springs has increased year over year and moving expenses every year or two is a greater burden especially given the shortage of affordable housing.

All this bill is about is fairness. This is a health and consumer protection issue. No one should have to
live in unsafe or unsanitary conditions because they can’t afford to move elsewhere or to live in a new property. I urge the committee to pass this bill. Thank you for your time.

UPDATE: The bill was signed into law and becomes effective August 2, 2019.