Associated Press | HealthyCal - Part 18
 

Associated Press

  

Study: To measure poverty and determine aid, must consider cost of living

By Nicole Jones
California Health Report

There’s more to consider than just a family’s income when it comes to measuring poverty and its impact on a child’s well-being, a new study finds. The report by Child Trends Center, a non-profit research organization, is the first to examine the impact of geographic variations and cost of living on child outcomes.

“Not only is income important,” said the study’s co-author Nina Chien, “but income in context of where the family lives.”

The current federal poverty guidelines do not consider cost of living variations, assuming that a dollar in San Francisco buys the same goods and services in rural Nebraska. The Child Trends Center study says this gap is hindering poor families’ ability to receive the aid they need, like food stamps, State Children’s Health Insurance and other government assistance programs.

Another study estimated that within a sample of 98 cities, if costs of living were considered, eligibility for Head Start would increase by 227,000 families and eligibility for the National Lunch Program would increase by half a million.

“There may be low-income families living in high-cost areas and are not eligible for aid,” Chien said, “but in fact they may need it because they have little income left over after rent.”

Cost of living varies drastically across the United States. One month of rent for a modest two-bedroom apartment averages $3,000 in San Francisco and $500 in Frontier County, Nebraska. A family of four with an income of $35,000 living in San Francisco has more financial challenges compared to a family in Frontier County.

Living in a high-cost state does not necessarily mean more benefits are available either. California, for example, does not have a state Earned Income Tax Credit, a refundable tax credit for low to medium-income parents. Existing subsidies are also difficult to access. Section 8 public housing programs in many metropolitan areas have wait lists that are several years long or closed. The wait list for Los Angeles County has been closed since 2009. And only about one-third of families eligible for childcare subsidies currently receive them.

The study also found that living in a higher-cost area was related to lower school resources for poor families, but to higher school resources for moderate-income families. This suggests that in higher-cost areas, schools are economically segregated.

Chien said this report demonstrates how cost of living intersects with income in meaningful ways for child well-being and should be considering for measuring poverty and providing much needed aid. “If more assistance can be directed to those resources,” she said, “the playing field would be more level between living in high-cost and low-cost areas.”

 

In L.A., mortgage crisis knows no age limits

Fixed incomes, scams, unfavorable loans haunt older homeowners

Senior Juanita Render struggled to pay her home loan. Photo: Robert Fulton/California Health Report

By Robert Fulton
California Health Report

When South Los Angeles resident Beverly Roberts took out a fresh loan on her home in 2007 to pay for some upkeep and improvements, little did she know the struggles to come.

According to Roberts, her adjustable rate mortgage boasted a low APR with payments coming in at around $1,900 a month. The introductory rate expired in May of this year, though Roberts had started the process of trying to get out from under the coming financial tsunami not long after agreeing to the loan. She said she quit paying on the mortgage last year, but believes her monthly obligation is now around $3,000 a month.

Living off a combination of Social Security, rental income and a part-time job as an in-home care worker, the 75-year-old Roberts has requested a loan modification (change in mortgage terms), with no luck.

“When I got the loan, the property they said was worth $750,000,” Roberts said, sitting in a conference room at the offices for the Alliance of Californians for Community Empowerment in South Los Angeles. She now volunteers for ACCE, participating in actions and protests. “Now, it’s maybe half of that. I want to know why they make me pay on $750,000. The house ain’t worth that. I’m paying taxes and all that goes along with it. They’re not doing anything but collecting money and making me pay for an old house, which is ridiculous.”

“I can pay the note if they would give me a decent note,” Roberts added, saying she’s seeking principal reduction.

When it comes to the mortgage crisis and the struggles of older homeowners, Roberts is hardly alone. Last month, AARP’s Public Policy Institute released a study measuring the progression of the mortgage crisis and its effect on people age 50 and over. More than 1.5 million Americans age 50 and over have lost their homes since 2007; 600,000 loans were currently in foreclosure; 625,000 loans were 90 or more days delinquent; and 3.5 million loans were underwater.

AARP Public Policy Institute Senior Vice President Susan Reinhard said that flat or declining incomes contribute to the rising delinquency rate among older home owners.

The AARP study also showed that people age 75 and over had a higher foreclosure rate than those ages 50 to 64.

“That really alarmed us quite a bit,” Reinhard said, speaking by phone from Northern Virginia. “People who are in that age certainly felt they could be able to live in their own home for the rest of their lives, or they would have the choice. Now they are faced not only with the difficulty of paying their mortgages, but because of the housing market in general and the difficultly with selling homes, many cannot sell their homes to even move and go into assisted living or some other choice they might want to make when they’re 80 or 85.”

Scams have exasperated the situation. One popular ploy involves someone offering to be a middleman for a homeowner in getting a loan modification. In exchange for money upfront, often in the thousands of dollars, the scammers promise to work with the bank and ask the homeowner to cease communication with the bank and to stop making payments. After receiving cash upfront, the scammer does little or nothing to help. Once the deceit becomes obvious, it’s too late to take further action and the bank forecloses on the home.

“They wait for the scammers to work with the banks on their behalf, which most of the time they don’t,” said Sherry Samani, an investigator at the Los Angeles County Department of Consumer Affairs. “Then the property goes into foreclosure eventually.”

Samani added that con artists also prey upon older homeowners enjoying reverse mortgages, a way for those of retirement age to tap into their home’s equity in their golden years. She’s also witnessed children or grandchildren tricking their parents or grandparents to turn a title over to the family, then sucking the equity out of the home.

Samani believes there’s plenty of blame to go around, and not everyone is a victim.

“A lot of people in the recent years have been using their homes as an ATM,” she said. “They keep refinancing their homes and they use it for everyday expenses. These people would take so many loans on their home and eventually they wouldn’t be able to make the loan payments.”

Lorrina Duffy, a staff attorney for the Legal Aid Foundation of Los Angeles, said that the foundation has dealt with foreclosures since 2007, and hired attorneys to specifically work on foreclosures in 2008. She too has seen seniors scammed out of reverse mortgages, as well as the tried and true loan mod rip-off.

The AARP study shows that among those age 50 and older, Hispanics have the highest foreclosure rate on sub-prime loans at 14.1 percent, and 3.9 percent on prime loans.

Duffy is only able to speak on the segment of the population that seeks help from the legal aid foundation. She does see a lot of non-English speakers looking for help.

“They put a lot of trust in the people who are assisting them and may not review the documents,” Duffy said. “For the most part, a lot of people don’t review the documents that they’re signing. They just take for face value what’s being represented to them by these agents that are allegedly assisting them.”

In 2007, then Los Angeles resident Juanita Render purchased a new home in Beaumont, California, in Riverside County. She wanted a larger place where her children and grandchildren would have room to visit. She made a down payment of $140,000 on a $530,000 house.

After moving in, Render discovered a number of things wrong with her new home, including missing landscaping and furniture, and faulty appliances. But the biggest of her problems is her APR above 6 percent and her payments of $2,567.54 a month.

“You can’t read all those papers when you go to close your mortgage,” Render, 76, said. “You’ve got that many papers to read and it’s all fine print and you don’t know what you’re reading anyway.”

Render said that she’s reached out to Bank of America to have her loan modified with little luck, and she recently quit making payments. She said the house is now worth only about $229,000, and she’ll be foreclosed on by the end of the month.

“I ran out of money,” Render said, adding that she receives $672 a month from a pension and $1,046 from Social Security. “I kept telling them I’m going to run out of money and I need to get these payments reduced and this interest rate reduced.”

“They’re always saying they’re going to do something, but they’re not going to do a thing,” continued Render, who has sought assistance through ACCE.

Render isn’t sure what she’s going to do.

“I guess they’ll come and take me out and say ‘Lady, you’ve got to go,’” she said. “’This is another house that we have.’”

Lupita Gonzalez, an employee with ACCE, said she hopes the recently passed California Homeowner Bill of Rights that takes effect in January 2013 will have an impact. She added that there needs to be more education and outreach for older homeowners about resources available.

Reinhard suggests homeowners talk with a housing counselor and utilize local resources. She also suggested visiting AARP’s home page and the HUD website for additional guidance.

Reinhard stresses urgency.

“You can’t wait a long time,” she said. “ Sometimes people, older people included, seem to think tomorrow will be a better day. It’s not going to be a better day if you can’t figure out how to pay your mortgage.”

Roberts said that her her mortgage situation has been a struggle, but she’ll keep working to figure something out.

“My age, I shouldn’t be going through this,” Roberts said. “I was trying to live the American dream, or so they say.”

NOTE: AARP’s complete tip sheet on what to do when you are struggling with mortgage payments can be found online.

This is the second of three stories reporting on how foreclosures have affected California seniors.

 

Heat illness still a problem despite progress

By Joy Hepp
California Health Report

Arcenio Lopez hasn’t been a farm worker since 2003, but the Oaxaca, Mexico native still remembers what it feels like to work a full day under the California sun.

“Your boss is telling you to hurry up,” says Lopez, who spent a year picking strawberries near Oxnard. “Second, you have this pressure. You feel if you don’t move faster you won’t make a good check. You hurry a lot. You think if you drink too much water your body is going to be heavy and you won’t be able to [fill] more boxes.”

Lopez, who is now administrative director for Mixteco/Indigena Community Organizing Project in Oxnard (MICOP), says he was not prepared for the dangers associated with working eight hours or more under direct sunlight. Although deaths related to heat illness have decreased dramatically across the state – from 12 in 2005 to four suspected cases pending medical determination in 2012 – the danger for workers is still very real, particularly during heat waves and during a worker’s first week on the job. Even if heat stroke doesn’t lead to death it can shut down and/or damage major organs and it is particularly difficult to diagnose during urgent care.

“When I was a farm worker I never heard about heat illness …or my rights as a worker,” Lopez says.

If Lopez were working in an outdoor industry in California today, he likely would see billboards in Spanish or hear radio ads in his native Mixteco language with slogans like “A wise man looks for shade.” or “If you want to last, don’t forget to drink water.” Or, he may have learned from a co-worker that his employer is required by law to provide adequate protection from the heat.

MICOP is one of more than 100 organizations in a grassroots network across the state that are working with the California Occupational Safety and Health Administration (Cal/OSHA) and the University of California to help educate workers in the agriculture, construction and landscaping industries both about the dangers of heat-related illness and about their rights as workers.

The issue of heat-related illness came to the forefront among California labor activists and officials in 2005 when record-breaking heat led to 12 farm worker deaths. The State of California issued emergency heat regulations, which were made permanent in 2006. The Heat Illness Prevention Standard — developed by Cal/OSHA — was the first of its kind in the United States and has since been adopted by its Federal counterpart; it calls for employee and supervisor training, fresh water provided at work sights, access to adequate shade for rest and recovery periods and written documentation on site that provides information about the regulations.

After the regulations were passed, the next essential task became educating California’s diverse population of outdoor workers and their employers. Despite initial efforts to get the word out, “it became pretty clear the more outreach was done that we weren’t reaching quite as deep into the base,” says Erika Mendoza of California’s Department of Industrial Relations, Cal/OSHA’s parent organization.

When Cal/OSHA received a government mandate to create a targeted outreach campaign regarding heat-related illnesses in 2009 they enlisted the help of UC Berkeley’s Labor Occupational Health Program (LOHP) to create educational materials and a multimedia communication plan including billboards, radio ads and a comprehensive website that was launched in 2010.

Train the Trainer

At the heart of these educational efforts are “Train the Trainer” workshops in which representatives from LOHP along with UCLA’s Labor Occupational Safety and Health Program (LOSH), and UC Davis’ Western Center for Agricultural Health and Safety (WCAHS) train representatives from schools, advocacy organizations, cultural centers, churches and health centers who in turn reached out to thousands outdoor workers in their respective communities.

“They tend to be the trusted resources and the go-to places, so we have done a lot of outreach to engage those organizations in the campaign,” says Erika Monterroza of the Department of Industrial Relations. “One of the goals of the campaign has been to create a community norm that starts to see this as a public health issue.”

Lopez says he’s seen a growing awareness among his clients.

“I’ve been seeing people being more conscious about this,” he says. Workers realize “it’s not a game. It’s something real.”
According to UC Berkeley’s Labor Occupational Health Program, the train the trainer workshops in addition to direct worker outreach reach 6-8,000 workers per year. For a worker who may be on the job site 10-12 hours a day, 6-7 days a week, this type of peer-to-peer education can be a needed lifeline.

“I think people really appreciate the information,” says Norma Ventura, a community worker with California Rural Legal Assistance who has participated in the Train the Trainer education efforts. “They’re not told they have the right to shade, or that the employer is responsible for following a certain procedure. They don’t get that information anywhere else.”

In 2006 Cal/OSHA found only 32 percent of inspected work sites to be in compliance with the new regulations. In 2011 of 753 heat enforcement inspections, 76 percent of employers were found to be compliant. However, Ventura says that many of her clients – who work in seven Central California counties – report that the workplace culture is often slow to change.

“We’re out there telling farm workers what the law says and they tell us how it doesn’t work that well all the time,” she says. Her clients tell her they worry that, “If we’re feeling sick and we say something, then we’re not going to get called back to work the next day or the next season.”

Both Ventura and Lopez report that dangers often arise for clients whose pay is based upon the amount they harvest each day, or on a “per piece” basis. Many of these workers worry that stopping to take a break in the shade or drink a glass of water would only serve to slow them down, thus taking away from their bottom line.

“They don’t really have that freedom to drink water, they just have this pressure,” Ventura says.
LOHP Progam Coordinator Suzanne Terran says one of the goals of the Train the Trainer workshops and employer outreach is to make heat illness prevention the norm in all outdoor workplaces.

“It’s about creating this culture in the workplace where everybody is doing it,” she says. “We’ve heard examples of where the crew leader blows a whistle and everyone takes their quick water break. It should be accessible and that’s been part of what’s been emphasized so they can in fact drink it without it becoming a big task.”

Over the past week the California legislature passed a trio of bills that would affect outdoor workers. AB 1313 calls for overtime wages, AB 2676 would make it a crime punishable by a fine and/or jail time for employers who don’t uphold heat standards, and AB 2346 would allow workers to sue their employers directly if they don’t provide adequate water and shade. When reached for comment, a Cal/OSHA representative said the agency does not comment on pending legislation. However, Cal/OSHA Heat Illness Prevention coordinator William Kreycia says educational outreach efforts will continue no matter the legislative outcome.

“Heat illness prevention will continue through 2012 into 2013 and as long as heat presents a hazard to the workers of the state of California,” he says.

 

Not Your Grandma’s Senior Center

San Diego Sets the Bar for Older Adults

By Matt Perry
California Health Report

Like many senior centers around the country, the downtown San Diego building at 9th and Broadway was dingy, dark, and offered limited social activities like bingo or the occasional dance. Older adults who weren’t depressed before they arrived at the center often left that way.

But when two local philanthropists met with the center’s director as part of a survey of 10 local senior centers – the trio quickly found they shared the same daring vision: a glittering, high-tech wellness center that would pioneer coordinated health and social services for the impoverished elderly.

Two years ago, the Gary and Mary West Senior Wellness Center fulfilled that vision, opening an environmentally-designed building and a program that blankets clients with support ranging from meals to health classes, housing assistance, nursing advice, transportation, social services, mental health support, and a cyber café.

“This is not your grandma’s senior center,” says Paul Downey, president and CEO of Senior Community Centers, a phrase echoed by staff members heralding a new and innovative approach to elder care.

The gleaming new building, a mile from its original site, today assists more than 3,000 clients annually – 86% of them below the poverty level. Attendance doubled in its second year.

New clients to the center are welcomed into the busy and spacious ground floor by a receptionist who assesses their needs and directs them to one or more services, including food, nursing, or social work.

To the left is The Gathering Place, a room dedicated to health classes ranging from exercise to cooking and diabetes prevention. (Mary West herself teaches a monthly cooking class.)

To the right is the common area, where visitors can read, relax, or watch television in a cavernous room infused with natural light.

The Cyber Café offers computer workstations for classes and tutoring. A game room features board games like checkers and backgammon.

Together, the wraparound services – part of either the center’s Lifelong Learning Institute or the Center for Healthy Aging – focus on keeping older adults out of expensive emergency rooms or urgent care centers.

Downey summarizes the wellness center’s mission: “To provide real-time health interventions that will keep people healthy before something cataclysmic occurs.”

This philosophy mirrors a growing sentiment in the world of health: proper medical care is the hub of a much larger wheel that includes housing, nutrition, exercise, community interaction, and sense of belonging.

“We know that if we keep them healthy, we’ll keep them independent. Nobody aspires to be in a skilled nursing facility,” says Downey. “Everybody wins. There are no losers in this scenario.”

Robert Steenson, 72, was a big winner after getting sick while living out of his car.

“One day I got up and had blood in my urine,” he recalls.

Steenson had cancer. To receive surgery, though, he needed a place to live. The West Wellness Center staff not only found him an apartment, but now provides transportation assistance for appointments, helps him manage his diabetes, assists with food preparation, and makes sure he takes his medications.

“Anything they can help you with they’re more than happy to do,” says Steenson.

Key to the center’s focus on wellness is its most high-tech offering. Placed near a window at the edge of the noisy community room, a health kiosk from Solo Health provides patients with instant assessments for vision, blood pressure, weight, body mass index (BMI), and overall health risk.

The kiosk will play a vital role in the center’s future, central to a its “Passport to Health” program, which will require patients to meet with a new Geriatric Care Coordinator and use the kiosk – both twice a month – according to Mary Mazyck, vice president of programs and services,

While 75% of visitors to the Wellness Center come only for meals, the remainder use its wide range of social services.

Mazyck says some older adults come to the wellness center right after being discharged from the hospital.

“There’s a place for them to go and ask questions,” says Mazyck, adding that the top requests are for housing and medical care, “This is where people have fallen through the cracks.”

Although it is not a medical clinic, the center has a staff nurse who sees patients in the morning then travels to the network’s two multi-unit housing facilities.

Staff social workers ensure clients receive treatment for geriatric depression, or qualify for Medi-Cal. Some even receive food for their pets when they can’t afford it.

“We’ve always known that people feel better and live longer because they come here,” says Mazyck.

Dennis Dooley, 71, participates in several wellness activities at the center. He exercises five days a week, uses the Cyber Café, attends ice cream socials, and attends classes to manage his diabetes.

Dooley, who lives by himself, says without the center life would be much harder.

“I’d have to go out and find my happiness and wellbeing in the city of San Diego, possibly by going to 12-step meetings,” he says. “The senior center arranges a lot of my entertainment.”

For Downey, the wellness center refutes ideas that aging adults and technology don’t mix. In particular, he cites the center’s Cyber Café.

“It blows apart the stereotypes that seniors can’t use technology,” says Downey. “That’s a lot of crap. They need to be shown. They need to be taught.”

The building itself received a coveted LEED gold award for energy savings and sustainable design. One unique feature is Solatube lighting, which uses a series of mirrors to pipe natural daylight into rooms, entirely replacing bulbs.

Senior Community Centers operates the 10 senior centers as well as two apartment complexes that offer 350 units of housing. Together, the vast system provided 450,000 meals last fiscal year – about 40% of them served at the West Wellness Center. (The organization expects to serve 100,000 more meals this year.)

The wellness center serves a wide ethnic mix: about half are white; one-quarter are Asian; over 20% are Latino; and more than 10% are African-American. Besides English, the multi-ethnic staff speaks Spanish, Mandarin, and Tagalog.

Critical to the West Wellness Center’s success are the alliances formed with a wide variety of players in the San Diego health system.

The region’s powerful Sharp Community Medical Group donates a full-time psychiatric nurse who assesses whether clients can safely live on their own – saving the center $100,00 annually.

An Elder Law and Advocacy attorney visits twice monthly to offer legal advice.

And both local university systems – the University of California San Diego and San Diego State University – also provide crucial assistance. UCSD sponsors the “Bridge to Recovery” program for mental health and substance abuse, while SDSU sends student nurse practitioners to teach various health classes.

Gary and Mary West are two of San Diego’s leading philanthropists, who in 2009 also founded the West Wireless Health Institute, a research organization devoted to digital health solutions.

“These seniors are ordinary folks who haven’t caught many breaks in life and are now teetering on the edge of survival,” writes Gary West in an email. (The Wests do not give interviews.) “Our philanthropic investment helps the center provide programmatic outcomes that literally change and save lives. From our perspective, there is nothing better than that.”

 

Hundreds gather at family market for free fresh produce

By Melissa Flores
California Health Report

Salinas residents gather early at the family market to get fresh produce for their meals. But the family market is not a typical farmers market like the ones that dot many California communities, especially during the summer months. The Food Bank for Monterey County hosts the family markets in communities throughout Monterey, including a July 27 distribution in the Vineyard Community Fellowship church in East Salinas.

Some senior citizens showed up as early as 5:30 a.m. one recent morning for the 10 a.m. distribution, though staff members said they always have enough food to give out to all the clients who need it. Some of the produce comes from local growers while other produce came from a trade with food banks in other counties.

Steve, a senior citizen from Salinas, waited toward the front of the line on the recent Friday morning. He said it was his second time coming to the family market after a friend told him about it.

“Mainly the produce,” he said, of his reason for attending the market. “There’s a lot of variety. I’m on a fixed income anyhow so it can prove to be a problem.”

The morning offerings included lettuce, green cauliflower, nectarines, peaches, onions, potatoes, strawberries, among other produce, and baked goods.

Including Steve, the food bank staff and volunteers expected to serve 300 to 400 families that day.

“We certainly have seen an increase,” said Leslie Sunny, the executive director of the Monterey-based food bank. “In the late part of 2008, it grew…not really gradually. It really hit in November 2008 and started to skyrocket.”

Sunny said the agency started serving more than 10,000 residents through the United States Department of Agriculture program each week, which distributes meat and cheese to low-income residents. The “Hunger in America” study released in 2010 estimated that the food bank serves 88,700 different clients each year, including families, senior citizens and children

The increasing numbers reflect a statewide trend. The UCLA Center for Health Policy and Research released the results of a study July 9 that found nearly 4 million Californians struggled to put food on the table during the economic downturn from 2007 to 2009.

In 2009, one in six low-income Californians had very low food security, according to the report, meaning they experienced multiple instances in which they had to cut their food intake and experienced hunger. The number is up from one in 12 low-income residents experiencing very low food insecurity in 2001.

The areas of California experience the highest rate of residents with food insecurity included the San Joaquin Valley, some Bay Area communities, as well as Shasta, Butte, Sutter, Yuba, Ventura, San Bernardino, Orange and Riverside counties.

In Monterey County, 43.2 percent of low-income families experienced food insecurity. The county with the highest rate included Contra Costa with 57.8 percent; Orange with 52.4 percent; Napa with 52.2 percent and Sonoma with 50.5. Other counties especially hard hit included areas of the San Joaquin Valley and some Bay area communities.

Some of the counties with the lowest rate included Placer, Siskiyou, Lassen, Trinity and Modoc with rates of 19 to 21 percent.

The study noted more married, employed individuals were at risk of food insecurity, including an increase from 29 percent to 40 percent of low-income married people and an increase from 28 percent to 43 percent of employed low-income people.

Sunny, of Monterey’s food bank, said the number of clients her agency serves has stabilized in recent months but it has not decreased. She has also seen a shift in the types of clients that have come seeking help in the last few years.

“We are seeing an increase in what we call the ‘new poor,’” Sunny said. “People called who were our vendors. We urge people to take the help – that is why we are here.”

She said for many families it can be hard to accept help.

Ian Anderson, the program manager for the Community Action Partnership of Kern, oversees the food bank distribution for a largely rural county that includes the city of Bakersfield. According to the UCLA report, Kern had a food insecurity rate of 33.9 percent among low-income residents.

One of the issues for the Kern food bank is the high cost of fuel to deliver food to the far reaches of the county’s more than 8,000 square miles. They need to use expensive, refrigerated box trucks to deliver the food, which can be costly to fuel and maintain, Anderson said. The food bank serves 117 distribution sites throughout the county.

Unlike the Monterey area, Anderson said the number of new clients continues to grow in Kern County. He said unemployment remains high in the region and the agency provides the only source of emergency food for many clients.

“There are a lot of people using it who never expected it,” Anderson said. “They don’t know how to access it…They are embarrassed to use it and they can slip through the cracks.”

Anderson said his staff and volunteers do try to connect residents with other resources, especially the Calfresh program, formerly known as food stamps.

The UCLA report found that those low-income residents who were enrolled in the Supplemental Nutrition Assistance Program, known as CalFresh, did not experience an increase in food insecurity. The American Recovery and Reinvestment Act of 2009 boosted SNAP benefits by 17 percent, according to the report. The subsidies are set to expire in 2013.

“Without the ARRC, many Californians would be in much deeper poverty,” said Gail Harrison, a UCLA professor and co-author of the study, in a policy brief. “And with millions of Californians still struggling economically, 2013 is too soon to consider ending this important life-support for our poorest residents.”

One of the reasons the researchers highlighted food insecurity as an important issue is the connection with health outcomes. Studies have found that those who experience it regularly have poorer health and are at increased risk of depression, mental health issues, as well as chronic diseases such as diabetes and hypertension.

Sunny said in recent years the food bank in Monterey has tried to find ways to increase the healthfulness of the food offered to clients.

“We live in the salad bowl,” she said, noting that the family market offers fresh produce to local families. “We also wanted to address the issue of obesity and diabetes with the people we serve.”

The Kern food bank also has increased its offerings of fresh produce through a “Dare to Share” program where they trade excess produce with other counties to increase the offerings.

“Say Fresno is able to procure strawberries,” Anderson said, adding that his agency might trade out pallets of non-perishable items from groceries for the produce. “They would give it to us for free or the cost of freight. It has significantly increased produce.”

Anderson and Sunny both noted that they struggle with finding new distribution sites to get out to residents throughout their counties. Sunny said they have outgrown some of their locations as the number of clients grew. Anderson reiterated the same concerns of limited parking when hundreds of clients show up at a site.

“The existing sites get overwhelmed for us out here in outlying areas,” Anderson said.

 

Report finds racial discrepancies in unemployment benefits

By Nicole Jones
California Health Report

The Great Recession hit black workers the hardest, according to a recent report by The Urban Institute, a nonprofit, nonpartisan policy research organization.

“Many low-wage unemployed African-American workers are likely suffering more economic hardship than their white counterparts,” the report said, on top of the statistics that African-Americans likely have fewer assets to fall back on.

Although the unemployment rate is higher for blacks than for white or Hispanic workers, the report found that black workers were less likely to receive benefits than whites, 23.8 percent compared to 32.2 percent respectively. This is even after considering other factors that might explain differences like education, the type of job they held and length of employment.

Some of the difference could be attributed to workers’ choice or preferences, the report said, but it could also reflect discrimination in hiring and reported reasons for separation from those jobs, both of which can affect eligibility.

Previous similar studies have shown that unemployment benefits help to keep families out of poverty when a breadwinner loses a job, said Margaret Simms, one of the report’s authors. Having access to these benefits helps families reduce the need to deplete their assets and draw funds from retirement accounts.

The unemployment insurance system is designed to assist workers who lose their jobs through no fault of their own. A number of factors are considered that might be related to “fault,” Simms said. For example, “they were not fired for cause or quit the job voluntarily,” she said, or “they worked long enough in the job to show a commitment to the employer. They aren’t job ‘hoppers.’”

The measures used to determine fault may work against some types of workers seeking benefits. For example, people who leave a job for family reasons are not eligible in for unemployment in all states. People who don’t hold a job for at least a year are typically not eligible for benefits. In some states, people who are only looking for part-time work also may not eligible. Workers in certain industries might not get unemployment because their employers do not pay into the system.

California’s unemployment insurance system is fairly inclusive, allowing workers to leave a job and collect benefits for family reasons, and even if they are only looking for part-time work. Although there is currently no data specific to race and unemployment insurance benefits in California, the state saw fewer workers filing for benefits over the last year. The California Employment Development Department reported that there were 518,605 Californians receiving regular unemployment insurance benefits during July, compared to 566,380 last year. At the same time, new claims for unemployment insurance were 52,336 in July 2012, compared with 57,897 in July of last year.

But as the Urban Institute study reports, these numbers are not a true indicator of how many people are actually unemployed. There could be many more people who simply haven’t applied for benefits or have been denied for various reasons.

The current unemployment insurance benefit system is a combination federal-state system, with the states making up most of the rules on who is eligible and setting the tax rates for employers who contribute to the system.

Simms says eliminating the racial gap in benefit receipt work require greater information dissemination about who qualifies, as well as some changes in state and federal policy.

“The federal government could make it attractive for states to institute reforms that make the program more inclusive,” Simms said. This tactic was tested under the 2009 Unemployment Insurance Modernization Act, which was part of the stimulus package, and was only partially successful in encouraging reforms.

“The federal government could also assume a greater share of the costs on an on-going basis, basically federalizing the system,” Simms said. That might not be very likely, she added, given the current concerns about the federal budget deficit.

 

Does it matter who is buying foreclosed homes?

By Callie Shanafelt
California Health Report

Putting homes in reach of the middle class might have seemed like a silver lining of the housing crash in places like Oakland, where housing prices jumped substantially during the boom years. The median home value went from $370,000 in 2003 to $590,800 in 2006. Between April and June of this year, the average home in Oakland was worth $240,000.

But, according to a recent report, more than 40 percent of foreclosed homes are not going to people who will live in them and are instead being purchased by private investors.

A June Urban Strategies Council report shows an increasing trend of private investors buying properties in Oakland. Investors bought 42 percent of the 10,508 homes foreclosed on in the city from 2007 to October 2011.

The report raised the ire of some Oaklanders who worried that outside investors are buying up the city and preying on the problems of homeowners in distress.

“It is an urgent time right now for us in the city of Oakland,” said City Council member Desley Brooks. “The individual home owner who simply wants to buy a home for their family doesn’t have that opportunity because they’re being squeezed out.”

The report expresses concerns that outside investors may mismanage upkeep of properties and drain local wealth. But local investors say that the issue is a little more complicated than the reaction to the report suggests.

The study does show that cash is king in the purchase of foreclosed homes, which eliminates residents’ chance to take advantage of the low prices on foreclosed homes.

Some of those properties, however, are going to small investors who say they are an essential part of getting homes back in the market in buyable shape. Mila Zelkha of Mint Condition Homes is a self-described green-flipper. “We acquire blighted houses predominately in Oakland and we do green-gut rehabs of them,” Zelkha said. Through “green-gut” rehabs Zelkha repairs and upgrades blighted homes to green-building standards while trying to retain their historic character.

She points out that you can’t assume that investors are bad just because they are making a profit. She says she is often welcomed by the communities she works in.

“In my dealings I haven’t had anything but really warm reception from the immediate neighbors around me,” Zelkha said.

A PolicyLink report studying national investor purchases distinguishes between the positive and negative investor. The report found that the smaller the investor, and the closer they are based to their property, the more likely they are to have positive impact on the neighborhood.

“Studies also confirm that neighborhoods with high levels of absentee ownership are less stable and more prone to experience crime and deterioration of property,” the report says.

Investor Michael Morrongiello of the Bay Area Wealth Builders Association argues that investor-owned properties aren’t likely to fall into further disrepair. He says that unlike banks, investors are trying to create a return on their investment so they fix up the property to rent or re-sell it.

The Urban Strategies Council is concerned that investors aren’t always returning homes to the market. USC conducted their own survey of the properties of those investors because of a lack of data about the housing conditions. They found that community Fund LLC and REO Homes LLC in Oakland have bought 500 of the foreclosed homes in the flatlands of Oakland.

Steve King, Housing and Economic Development Coordinator at Urban Strategies Council, said it didn’t seem like any recent work had been done on Community Fund LLC properties in East Oakland. REO Homes LLC, however, seemed to be doing work on their properties in West Oakland.

Zelkha says Community Fund LLC has purchased homes on the courthouse steps for her. “I bet some of my houses are in that data,” Zelkha says “and it’s not fair to generalize and say that wealth is going somewhere else. My buyers tend to be Oakland residents who’ve been waiting for an opportunity to buy.”

It would be difficult for an average homebuyer to do what Zelkha does. People with FHA loans have to purchase a livable home. Zelkha said she has yet to come across a foreclosed home without major repair issues.

Cash buyers do have an advantage at multiple stages of the process of buying foreclosed homes. The USC reports that 16 percent of foreclosed homes are bought at auction on the courthouse steps where cash purchases are all that is allowed. But also when banks are selling their foreclosed housing stock many prefer cash buyers because they are able to unload the properties more quickly.

The trend is frustrating for people like Oakland-native Dorcia White who is trying to buy a home for her family. The mother of two works at a family-owned barbeque restaurant in Oakland and is married to a carpenter. They spent the last five years improving their credit and preparing to buy a home. She hoped that she could buy a foreclosed home that her husband could renovate.

In the past six months cash buyers have outbid her four times on homes in her $350,000 price range. “I’m on my third real-estate agent because I thought it was them,” White said. “I was like, why are you showing me these properties that have 20 bids?”

Now she doesn’t even think of bidding on foreclosed properties. “I’m waiting for some kind of legislation for a first look for people living in the home,” White said.

To address that issue the federal government developed the Neighborhood Stabilization Program. In 2010 they created the First Look program to give people with FHA loans the first chance to bid on FHA owned properties in areas including Alameda County where the stabilization program is in effect.

But the process is still complicated. Non-profits are trying to ensure people like White are able to get homes using these programs. Hello Housing works in Alameda County to access Neighborhood Stabilization funds to buy foreclosed homes, rehab them and sell them to low and moderate-income families. They’ve been taking advantage of the First Look program to bid on properties before they are put on the competitive market.

“There used to be a reasonable supply of Bay Area properties coming through the trust,” said Hello Housing Executive Director Mardie Oakes. “It’s radically dropped off over last few months.” She attributes this to banks holding foreclosed homes off the market in order to raise purchase prices.

They’ve had difficulty competing with private investors in the commercial market because funding regulations requires they pay 99 percent of the appraised value. Private investors with cash on hand can waive any contingencies on their purchase.

Despite their difficulties, Hello Housing still buys 15 to 20 houses a year. They’ve built a web portal to help buyers find homes in their area at homehub.org.

“We’re sort of on track with our goals but the amount of effort is radically different,” Oakes said.

The East Bay Community Foundation decided to work on neighborhood revitalization by helping to grow assets for low and moderate-income families. They are in the pilot phase of their program. They work with 6 different public and private stakeholders to buy homes, rehab them and sell them to qualified families from the area.

“None of us thought they would need cash in hand for an entire purchase,” said EBCF president Nicole Taylor. “Pretty quickly we needed to compete with cash in had because speculators were flooding entire region.”

They’ve been able to buy five houses at a time with cash and are looking to expand the program. Their main concern with private investors is that they are turning foreclosed homes into rental properties instead of selling them to residents to build their assets.

At a heated Special Community and Economic Development committee meeting in July at Oakland City Hall twenty impassioned speakers got up to argue for or against council member Desley Brooks’ proposed non-owner occupied ordinance.

The ordinance would require that single family homes not lived in by their owner be registered and inspected and brought up to code within a reasonable amount of time from their purchase.

Council member Brooks admitted that the ordinance doesn’t directly prevent investors from buying all the properties in Oakland. “You can’t write direct legislation on this – the only thing we as a municipality can do is slow it down,” Brooks said.

“We should be embracing the investor,” Morrongiello said. “The investor will be the solution to this problem.”

But USC’s Steve King sees something wrong with profiting off others’ financial hardship.

“The foreclosure crisis was predicated on speculative risk,” King said. “It was created by investors buying and fueling that bubble. Now we’re in this period of déjà vu. It created this opportunity for investors to come in and buy us out of this crisis. Seems the cards are stacked in favor of those with deep pockets.”

For now council member Brooks’ ordinance will be held in committee until September but other council members seemed willing to work towards supporting it if they have further information at the next meeting.

“Being a homeowner is, you know, the American dream and we want a piece of that,” prospective homeowner and native Oaklander Dorcia White said.

 

Last fire camp standing

Larry Gray on his second day at Pine Grove Youth Conservation Camp. Photo: Callie Shanafelt/California Health Report

By Callie Shanafelt
California Health Report

Driving into the wooded campus of Pine Grove Youth Conservation Camp feels like arriving at a summer camp – until you see the road signs warning that you are entering a correctional facility.

The mint green office, school, kitchen and dorm buildings are relics from their Civilian Conservation Corps days. The only hint that something unique is happening here is the large garage with red and white ambulance-looking vehicles marked CAL FIRE parked inside.

At this camp, about 60 young men aged 18-25 serve the last year of their sentence with the California Division of Juvenile Justice (DJJ) fighting wild land fires and responding to other emergencies on a CAL FIRE crew. There are no fences, the doors are unlocked and wards are regularly left unsupervised.

“We give them opportunities to screw up,” says Camp Superintendent Mike Roots. “We hope they don’t—but sometimes it takes a while.”

The main goal of the camp is to prepare wards to return to their communities with a work ethic and job skills that will help them be productive members of society. But after a decade of juvenile realignment, Roots says that goal is getting harder to achieve.

In the past ten years, the DJJ has gone from more than ten thousand wards to under one thousand. Most low-level offenders are now serving their time in county facilities and those left in state institutions are the highest-level offenders.

In order to qualify to finish their sentences at Pine Grove wards must show signs of rehabilitation, not be a flight risk or have violent tendencies. The number of wards who qualify is getting less and less.

Ten years ago there were six fire camps for juveniles throughout the state. Pine Grove is now the last camp in operation. But Pine Grove is a crucial program for preparing these young men to go back out into the world. Most of them are serving sentences of less than three years.

“A program like Pine Grove is great because it teaches you to practice [life skills] in a pretty safe setting,” says juvenile justice expert Barry Krisberg of the Earl Warren Institute on Law and Social Policy at UC Berkeley.

“If they’re all coming home what’s the process you’d like to see them go through before they come home?” asks Krisberg. “Lock up 21 hours a day is not a good public safety strategy.”

Eighteen-year-old Manuel Lujan has served two years for assault, the result of a fight back in his hometown of Bakersfield. Before coming to Pine Grove, he was incarcerated in the Preston and O.H. Close Youth Correctional Facilities.

“Over there it’s just to do your time—over here it’s to get your mind right.” Lujan said.

In the other institutions he was associated with the Sureños gang. In Pine Grove he’s on a work crew with people from rival Norteños gangs. One day while they were out hiking, he was surprised when he slipped and a Norteño helped him back up.

“I thanked him,” said Lujan.

“Here, a lot of people basically put their gang stuff behind them,” said 21-year-old Jose Nunez “because it’s your life or another person’s life and you got to be able to help them out.”

Roots says wards with gang backgrounds often catch on to the firefighting chain of command quicker than others.

“They have a value system – it’s a messed up one, but they have one,” Roots said. “If their allegiance goes to their crew instead of their gang, they end up doing a great job.”

Many of the wards at Pine Grove are reevaluating their relationships on the outside.

“All this gang banging that’s old news—that was fun when I was young,” said 19-year-old Larry Gray of Inglewood. “Everybody in my hood, they’re my associates—my one true homie understands.”

Many of the wards never worked before they were incarcerated. Now they all have to get up and work every morning whether there is a fire or not. Every night from 6-10 the ones without a high school diploma have to go to school.

“The pace here is ten times what it is in a facility, yet when they leave here it is one hundred times what it is in here,” Superintendent Mike Roots said.

And he points out that at Pine Grove they are provided with a place to live, food to eat and access to a doctor and nurse 24 hours a day, something that is harder to come by on the outside.

Twenty-two-year-old Bryan Griffith of Oakland has been at Pine Grove for about a year. Before that he served four years of his sentence for second degree homicide at the Preston facility. Over the first two months of his time at Pine Grove, his CAL FIRE captains promoted him through fifteen crew positions to first man because he demonstrated strong leadership qualities and work ethic.

That position comes with privileges. The base pay for any ward is one dollar an hour. As first man, Griffith is paid two dollars an hour with an additional dollar added when he is out responding to an emergency. He also eats first and sits at the head of the table in the mess hall.

But even though he’s learned to shoulder extra responsibility, Griffith says sometimes he’s embarrassed to think about how unprepared he is for the outside world. “I don’t know nothing about no ATM machine,” Griffith said. “I never got a chance to drive myself back and forth to work.”

But he says Pine Grove has helped him to take one step closer to his freedom. He’s decided he would rather go home and get a living wage job than make quick money selling drugs.

“Just learning to accept you can’t get everything you want in life,” Griffith said, “and it actually feels good to do the right thing.” When he gets out in December he hopes a family friend will be able to help him enroll in a pipe trades apprenticeship in San Francisco.

When asked if he wants to be a firefighter the answer is a simple “No.” He hopes to start a family and he doesn’t want to spend 2-3 days at work.

Superintendent Mike Roots says about 10 percent of their wards have been determined to keep fighting wild land fires and got work with the forest service.

The CALFire Division Chief Brian Estes says since most of the wards at Pine Grove and adult fire camps have felonies they are disqualified from working for CAL FIRE or local fire departments. The work crews at Pine Grove basically contain wild land fires by using hand tools to clear fire lines around the fire. Currently only inmates are doing this work.

Estes says it is getting harder and harder to build crews of the highest-level firefighters at the fire camps. “I’m concerned for the program and the future in general because of realignment and DJJ in general,” Estes said. “If you look at the history, I’d be crazy to say I’m not concerned.”

Until recently, the camp had four crews of 13-17 young men. They require two crews in order to assemble a strike-team to go to another part of the state for a fire. They recently had to send an entire crew back to institutional facilities because they robbed a house when they were out on a fire.

Superintendent Mike Roots says nothing like that has happened during the seven years he’s been there.

He thinks some aspects of realignment such as the increased rehabilitation programs have been positive, but he’s finding it challenging to cope with others.

Before realignment, wards were paroled to state parole officers with whom Pine Grove caseworkers worked closely to find placements. Sometimes that meant finding them a place to live away from negative associations back home. Now wards are released into the supervision of county probation departments. Roots worries that rehabilitation will be more difficult after realignment because there is no longer the same emphasis on getting wards away from the negative peer influences they had before detention.

Barry Krisberg believes that probation officers are in a better position than parole to integrate these guys back into their communities. But he says the transition from parole to probation was made too quickly and with little planning.

Krisberg is more concerned that no one is tracking the 500 youth who’ve been released from DJJ since the switch. “Why isn’t the legislature demanding to know what is happening to these youth?” asks Krisberg. “Public safety demands we should be doing it.”

Roots will continue to follow-up with his wards twelve months after they’re released and try to adjust his program to set his wards up for success.

Wards like 19-year-old Nathaniel Hawkins will be returning to Los Angeles in nine months. He’s working on his AA through correspondence courses at Coastline Community College and hopes to eventually study business and acting. He returns to a supportive mother who was devastated by his past behavior.

“She’s proud of me now,” Hawkins said. I’m proud of myself, I never thought I’d be here to the point I’m a man like this—but I am.”

 
 
 

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