GRM Poverty Reduction White Paper #1 August 2018

Eviction and its contribution to poverty

A White Paper

ABSTRACTThe issues of hunger, education, family, racial inequality, social inequality – these must be viewed through the eyes of the lack of affordable housing.

Stable Housing Offers

Protection

Sense of safety

Comfort

Stability

He stands outside the house he has called home for years. He watches as the

locks are replaced. The sheriff offers him a list of transitional housing options. Where

will he turn now? What will he do? Julio had an adjustable mortgage rate which nearly

doubled from $1400 per month to $26001. The 55-year-old painter now finds that he is

homeless wondering which step to take next. Unfortunately, this scenario isn’t

uncommon.

The word poverty conjures up many images: lack of food, transportation, and

inadequate housing just to name a few. Many factors contribute to poverty such as lack

of education, race issues, lack of high paying jobs, family structure,

as well as poverty related policies2. Rarely, does one consider the

effects of an eviction and its contribution to the cause of poverty.

Yet, “being evicted is a cause, not just a condition of poverty3,” says

Matthew Desmond in his Pulitzer Prize winning book. “Whatever our

issue is, whatever keeps us up at night, whether it’s family, community, educational

inequality, or racial inequality, the lack of stable, affordable housing sits at the root of

that issue, because without stable shelter everything else falls apart.4”  The need for

shelter is essential and perhaps trumped only by the need for food and water. Shelter

provides protection from the elements, a sense of safety, and hopefully even some

comfort in knowing a basic need is filled. Yet, for many the very real threat of facing a

1American News Project Eviction Day: Foreclosure Crisis Forces Man From Home https://www.youtube.com/watch?v=UXep2SsJlHw&feature=youtu.be

2Haveman, Robert Causes of Poverty. Presentation on poverty, Institute for Research on Poverty. June 2013https://www.irp.wisc.edu/newsevents/workshops/teachingpoverty101/participants/Presentations/Haveman-CausesofPoverty1.pdf3Desmond, Matthew. Evicted: Poverty and Profit in the American City. New York: Crown Publishers, 2016. (p 299)4"Eviction: Not Just a Condition, but a Cause of Poverty." USCatholic.org. February 13, 2018. Accessed May 30, 2018. http://www.uscatholic.org/articles/201802/eviction-not-just-condition-cause-poverty-31301.

Reasons for Eviction

Landlord takes back property

Failure to pay

Broken contract

Poor choices of adults/children

possible eviction or experiencing an eviction creates a feeling of instability. Regardless

of the circumstances surrounding the eviction, the end result is loss.

Loss of home.

Loss of security.

Loss of neighborhood.

Children are often faced with loss of school

and familiar friends. Families are now faced with the embarrassment of eviction

notices. Evicted persons are now faced with homelessness.

It is estimated that 2.3 million evictions were filed in the U.S. in 2016 — a

rate of four every minute5.

Housing is generally considered "affordable" when its cost does not exceed 30

percent of the median family income in a given area. However, when 70 percent of a

family’s income is used to pay the rent and keep the lights on, eviction is inevitable.

“Incomes have remained flat for many Americans over the last two decades, but

housing costs have soared. So between 1995 and today, median asking rents have

increased by 70 percent, adjusting for inflation. So there's a shrinking gap between what

families are bringing [in] and what they have to pay for basic shelter6.” We can’t fix

poverty in America without fixing housing. While there are many issues we need to

5Gross, Terry. "First-Ever Evictions Database Shows: 'We're In the Middle Of A Housing Crisis'." NPR. April 12, 2018. Accessed May 30, 2018. https://www.npr.org/2018/04/12/601783346/first-ever-evictions-database-shows-were-in-the-middle-of-a-housing-crisis.

6 ibid

address and work on finding a solution for, housing should be at or near the very top of

the list. A house should provide a sense of security where families and individuals are

free to rest, relax, and enjoy life together. Meals are shared and memories are made in

houses. Yet, this is no more than a dream to many today who face eviction.

One out of three American famil ies rents their home.  For the past

decade, homeownership rates have steadily declined, and the number of

renters has greatly increased.  The supply of rental homes has not come

close to keeping up with the growing demand. More than half of al l renters

pay more than they can afford. 11 mil l ion Americans (1 in 4) spend more

than half their paycheck on rent. “It ’s not that people aren’t working hard

enough: in fact, even working ful l t ime, there is no state in the U.S. where

a minimum wage earner can afford a modest one-bedroom apartment at

the fair market rent. In most of the country, they would need to put in

between 60-80 hours a week to afford such a place… there simply aren’t

enough affordable homes. The shortage of homes priced for the lowest

income levels is so extreme that nationwide, only 35 units are available

for every hundred households that need them 7 .” A secure home is the

foundation for everything else in l i fe. When more than twenty mil l ion

Americans don’t have a decent place to live at a rent they can reasonably

afford, everyone pays the price. Famil ies are forced cut back on

essentials such as food and medical treatment, and this leads to higher

healthcare costs for taxpayers in the long run. Run-down homes are more

7"What Is the Crisis?" Home1. Accessed June 07, 2018. http://home.one/what-is-the-crisis/.

l ikely to have issues with lead, mold and rodent infestations; this leads to

more emergency room visits for children with asthma (an i l lness all too

common for kids with insecure housing). Children living in crowded,

unsafe homes are also more l ikely to have behavioral problems and

trouble in school, leading to more crime and poverty. Famil ies without

reliable affordable housing are l ikely to move often; and frequent moves

make it nearly impossible to succeed in school. Why? Missed school days,

a lack of continuity in lessons, worse home environments for studying, and

disrupted relationships with trusted teachers and friends all lead to a poor

academic performance. Among adolescents, those who moved four or

more times before age 16 were more l ikely to use i l l icit drugs at an early

age. Research also shows that kids who move often are more l ikely to

drop out of school than peers with similar risk factors who don’t have to

switch homes.

When you do a Google search on evictions all of the first page

results are “How to evict.”

Evictions in Oklahoma

Oklahoma has nearly double the national eviction rate.

In 2016, 2.34 percent Americans were evicted.

In the same year 4.24 percent of Oklahomans were evicted.

In 2016 an average of 60 Evictions per day,

Some landlords will choose to bypass the official legal system as a help to those tenants so they can leave without the eviction going on their record. This choice will also save the tenant legal fees and other charges. For the landlord they are simply cutting their losses and they lose the opportunity to garnish wages at a later time.

In the state of Oklahoma, the eviction rate

is nearly double that of the country as a whole.

The 2016 eviction rate for the entire state of

Oklahoma was 4.24 percent, according to the

Eviction Lab. The rate for the whole country was

2.34 percent. Oklahoma saw nearly 60 evictions

per day in 2016, data shows. That comes out to 21,900 evictions that year8.

NOTE: While we are focusing on evictions of rental properties the impact of

foreclosure are similar and in many ways much worse.

The impact of an eviction on someone's record can be detrimental. An eviction

judgment could make it difficult to obtain housing in the future. It takes a good amount of

time and money to establish a home, and an eviction can just delete all that in an

instant. It comes with a court record of this process that can prevent you from moving

into a safe house in a decent neighborhood because so many landlords turn you away.

It can also prevent you from moving into public housing, because most of our public

housing authorities, even though they don’t have to, count evictions as a mark

against an application.

8Schwab, Kyle. "OKC Eviction Rate Is "20th Worst" in Nation, New Program Gives Free Legal Help to Tenants." NewsOK.com. May 08, 2018. Accessed June 07, 2018. https://newsok.com/article/5593790/okc-eviction-rate-is-20th-worst-in-nation-new-program-gives-free-legal-help-to-tenants.

Evictions in Muskogee

• 215 renters in Muskogee are evicted each year

• 62% of people who rent in Muskogee are below poverty

• 3.23% eviction rate

• Substandard housing accommodations

• Long waiting lists for public housing

• Many face homelessness

By the time you finish reading this white paper 4 more people in America will have been evicted!

Despite Oklahoma being one of the least expensive states in terms of cost of

living and housing, the eviction rate is higher than the national average. Tulsa ranks

number 11 nationally in evictions with a rate of 7.77%. There were 6,279 evictions in

Tulsa in 2016. That amounts to 17.2 households evicted every day. 7.77 in 100 renter

homes are evicted each year. Oklahoma City ranks number 20 nationally in eviction rate

at 6.19%. There were 6,433 evictions in Oklahoma City in 2016. That amounts to 17.62

households evicted every day. 6.19 in 100 renter homes are evicted each year. Today,

nearly one in six Oklahomans (or 16.9 percent) live in poverty and nearly one-third of

the state’s counties have a poverty rate of 20 percent or more. Extreme poverty is

defined by the U.S. Census Bureau as household income of less than 50 percent of the

poverty level, which is $10,450 per year for a family of three, or $200 a week.  There are

now about 270,000 Oklahomans living in extreme poverty, including 95,000 children, or

slightly more than one out of every ten Oklahoma children. Nationally, three million

children live in households earning less than $2 per person per day9.

There were 215 evictions in Muskogee in 2016. That

amounts to 0.59 households evicted every day. 3.23 in 100

renter homes are evicted each year. While the 3.23% eviction

rate is much lower than Oklahoma City and Tulsa, according to

the website city-data.com, the poverty rate in Muskogee is 29%

compared with the state poverty rate of 22%. The percentage of

renters below the poverty line is 62.1%10. Many

9Edin, Kathryn 1962. $2.00 a Day: Living on Almost Nothing in America/Kathryn L. Edin, and H. Luke Shaefer. Boston: Houghton Mifflin Harcourt, 2015.10"Muskogee, Oklahoma (OK) Poverty Rate DataInformation about Poor and Low Income Residents," Anderson, Indiana (IN) Profile: Population, Maps, Real Estate, Averages, Homes, Statistics, Relocation, Travel, Jobs, Hospitals,

find themselves in substandard housing accommodations in dire need of repair. Others

find themselves on long waiting lists to get into public housing. These are the fortunate

ones. Many others face the possibility of eviction and with no other options in sight, they

find themselves homeless. Of those surveyed at the Gospel Rescue Mission in

Muskogee, 85 percent said they experienced an eviction and 56 percent of those

evicted said they faced difficulty finding housing as a direct result of the eviction. Of

those evicted, 36 percent had children. The overwhelming majority of those evicted and

participating in the survey (81%) ended up in the streets or in a shelter. Eviction can

lead to homelessness or at the very least a sense of instability. An eviction is linked to

job loss. It's such a consuming, stressful event. It causes you to make mistakes at work,

lose your footing there. The eviction can also affect your sense of dignity and your

mental health and your physical health. The mental effects of this traumatic event can

cause depression that may last for years. What is next for the evicted person(s)? Will

job still be available? Will they have a friend or relative to stay with or will they end up in

a shelter? Does the shelter have room? Will they have to sleep on the streets? Will they

have any protection from extreme weather? Are they able to shower, wash hands, or

even have a private place to relieve themselves when necessary? Will they be able to

receive mail? Will a landlord accept them if they were evicted? Will they able to pay for

the deposit? Will the next landlord be a slumlord? Will they have any friends that stick

with them? Will children be taken away? Will the older child have trust issues with

regards to whether or not the parent can provide a safe place? Not only are they now

without a home, but poverty hits from all sides: poor nutrition, lack of access to

Schools, Crime, Moving, Houses, News, Sex Offenders, , accessed June 08, 2018, http://www.city-data.com/poverty/poverty-Muskogee-Oklahoma.html.

adequate food and water, lack of functional sanitation. Slumlords may often take

advantage of tenants who had a previous eviction. This can lead to inadequate heat and

air, often houses infested with rodents, roaches, bed bugs, and mold. The result is

sickness of the home’s occupants. This leads to medical costs which make it nearly

impossible to pay leading to a deeper level of poverty.

The sad reality is these statistics and situations are not just numbers and

possibilities; real people with hopes, dreams, and aspirations are forever affected by

eviction. Some may be because of lifestyle choices, such as one man that was

interviewed as part of this research. He had financial security, but discovered he also

had a substance abuse issue. His addiction led him to seeking drugs rather than his

ultimate dreams. Eventually, the money began to run out, but the desire for drugs did

not. When it came to making a choice between paying rent or buying drugs to feed his

addiction, he chose the latter. As a result, he was evicted. He found himself couch

hopping and later in jail. He shares how he is now clean and sober thanks to a renewed

faith in God along with being in Muskogee County drug court. Yet, the effects of the

eviction still haunt him. If it wasn’t for a family member willing to take him in, he would

be homeless.

Several landlords reported that nearly 100% of the evictions that they

served were for failure to pay rent. Bottom line: Pay your rent first and find help

for other bills as needed. Additionally the landlords interviewed all reported that

if the tenants communicated better when they have financial issues they are

typically willing to work something out.

Stories of Eviction

One lady shared how that despite a prior eviction, she was living in a nice 3-

bedroom, 2 bath apartment complete with its own washer and dryer hookup. Yet an

offer for a possible rent to own house became available and she took the chance. She

was in the house for 16 months before the owner actually sold the house due to a

loophole in the paperwork. Faced with the reality of eviction, she now found herself

scrambling. All she was able to find was a much smaller apartment which is not

maintained well by the landlord. She is no longer eligible for subsidized housing. She

overpays for her apartment forcing her to take out payday loans which prey upon those

in poverty. It’s a vicious cycle that imprisons.

One young lady shared that when she received her 30 day eviction notice that

she simply gave up. Even though things have turned around since, her daughter even

today refuses to decorate out of fear that they are simply going to move again soon

anyway. She reported that the speed of the move required her to put many of her items

in storage where many items were pillaged and stolen.

Another man shared that when he was evicted from his apartment (maybe

illegally) that at first he was emotionally distressed. However, as soon as he found

another place to live he completely dismissed in his own mind whatever the causes of

his eviction were.

My own story from childhood is one of moving from house to house in order to

avoid evictions. It resulted in a constant change of schools and loss of friends. I often

chose not to try to make relationships for fear of another change of school districts. This

resulted in a sense of uncertainty and lack of confidence. The emotional effects of

changing schools weighed heavily upon me. It affected my social capital and led to

anxiety and depression which has continued for years. (Daniel Blankenship)

Too often landlords see tenants who have drank or smoked their rent

money or simply had different priorities than paying the rent and so are less likely

to work with tenants.

Solutions

So, what can be done to help fight eviction, or at least the effects of eviction?

Surely an issue as common and widespread as eviction must have many solutions that

are working. Unfortunately, there are not any easy fixes to the situation.

One man who lost his home to substance abuse, recommends intense detox and

substance abuse counseling.

Others recommend teaching simple skills such as learning to budget. This will at

least allow individuals to see where their money is going, but that doesn’t fix the

problem of jobs which do not pay enough to put people in a position to succeed. Higher

paying jobs are definitely needed. Education and specialized skill training in preparation

for higher paying jobs will definitely help. One area that can be added immediately to

our education system is to teach high school students and even younger a level of

financial literacy.

GRM is also advocating for a Renter Rights Flyer that will inform renters of the

appropriate procedure that should go into play anytime there is an eviction. Mandating

that landlords hand out these to every renter will ensure that both sides are informed

and keeping within the law.

Another solution would be that if someone gets behind on their rent that they

would be allowed to continue to live in their apartment with their tax refund to go directly

to the landlord to cover the amount behind.

Note: several of the landlords interviewed for this paper recommended that

renters use their tax refund to pay ahead on their rent. This would give the renter

security of mind and would also demonstrate responsibility to the landlord.

“One thing America is missing is a strong moral indictment of the level of

destitution in this rich land and a real, frank conversation about how our lives,

our tax breaks, our neighborhoods, and our schools contribute in real ways to

poverty. . Poverty isn’t just a product of low incomes or certain decisions, or

even certain structural transformations.11” It is going to take a joint effort of all

people to solve the housing crisis in the United States.

If one of you says to them, "Go in peace; keep warm and well fed," but does nothing

about their physical needs, what good is it? James 2:16

11 Eviction: Not Just a Condition, But A Cause of Poverty.

Sources Consulted

https://www.irp.wisc.edu/newsevents/workshops/teachingpoverty101/participants/Presentations/Haveman-CausesofPoverty1.pdf

https://newsok.com/article/5593790/okc-eviction-rate-is-20th-worst-in-nation-new-program-gives-free-legal-help-to-tenants

https://evictionlab.org/rankings/#/evictions?r=United%20States&a=1&d=evictionRate&l=277

http://www.uscatholic.org/articles/201802/eviction-not-just-condition-cause-poverty-31301

http://news.cornell.edu/stories/2016/11/eviction-cause-not-just-condition-poverty

https://www.youtube.com/watch?v=UXep2SsJlHw&feature=youtu.be

Gross, Terry. "First-Ever Evictions Database Shows: 'We're In the Middle Of A Housing Crisis'." NPR. April 12, 2018. Accessed May 30, 2018. https://www.npr.org/2018/04/12/601783346/first-ever-evictions-database-shows-were-in-the-middle-of-a-housing-crisis.

https://www.npr.org/templates/transcript/transcript.php?storyId=601783346

Gross, Terry. "First-Ever Evictions Database Shows: 'We're In the Middle Of A Housing Crisis'." NPR. April 12, 2018. Accessed May 30, 2018. https://www.npr.org/2018/04/12/601783346/first-ever-evictions-database-shows-were-in-the-middle-of-a-housing-crisis.

"First-Ever Evictions Database Shows: 'We're In the Middle Of A Housing Crisis'." NPR. April 12, 2018. Accessed June 06, 2018. https://www.npr.org/templates/transcript/transcript.php?storyId=601783346.

https://hbswk.hbs.edu/item/no-place-like-home-americas-housing-crisis-and-its-impact-on-business

http://home.one/#whole_story

https://youtu.be/GZmUONxuZIE

https://www.youtube.com/watch?v=iJb2pN-SQkc

Schwab, Kyle. "OKC Eviction Rate Is "20th Worst" in Nation, New Program Gives Free Legal Help to Tenants." NewsOK.com. May 08, 2018. Accessed June 07, 2018. https://newsok.com/article/5593790/okc-eviction-rate-is-20th-worst-in-nation-new-program-gives-free-legal-help-to-tenants.

Contributors

Lead Author: Daniel Blankenship

Phyllis Lewelling

Aaron Masterson

Charolette Sanders

Jack Murr

Rich Schaus

Sandy Coe

Jim Essert

Appendix A Additional questions to consider

Why are more people renting?

Who actually benefits financially from evictions?

Why is it more likely that those in poverty will have their things in storage

facilities ransacked and stolen?

What school curriculum could be instituted to prepare young men and

women for the real world of bills, taxes and work?

What can be done to help more people get off of welfare programs?

Appendix 2 Sample Eviction Information Flyer Information

What is Eviction?

Eviction is a legal procedure a landlord uses to get you out of your home. If you do not pay your rent, your landlord can have you evicted. To evict you legally, the landlord must follow certain steps.

What are the steps in an eviction for non-payment of rent?

1. Landlord gives you written notice2. Five-day grace period3. Landlord files suit4. You are served with summons5. Court hearing6. Judgment7. Move-out period8. Landlord takes back the property

THE FIRST STEP - WRITTEN NOTICEBefore filing an eviction case in court, the landlord must give you written notice to pay your rent. The notice does not need to be notarized or be written in any special form. The notice does not need any special language. Often, the notice tells you to pay your rent within a certain time or move. The landlord must give you the notice in one of three ways:

1. The landlord can hand you the notice in person;2. If you cannot be found, the landlord can give the written notice to any family

member over 15 years old who lives in your home; or

3. If no one is at the home, the landlord can post the notice on your door and send you a copy by certified mail.

THE SECOND STEP - GRACE PERIODAfter you get the notice, you have a 5-day grace period before the landlord can evict you. If you live in public housing, you have a 14-day grace period. If you pay the landlord all of the money you owe before the end of the grace period, then you cannot be legally evicted for non-payment of rent. If you pay your rent during the 5-day grace period, make sure you get a receipt that shows the date you paid, the amount paid, and that you have "paid in full." You want to be able. The receipt proves you paid if the landlord still tries to evict you. If you cannot pay your rent within the 5-day grace period, decide whether you want to pay your rent at all. You may want to use the money you have to pay for your move. If you pay your rent after the 5-day grace period has expired and you want to stay, make sure you get a receipt that says "landlord agrees not to seek eviction." Remember, if you cannot pay your rent before the grace period ends, get out as quickly as you can. Do not waste time.

THE THIRD STEP - STARTING AN EVICTION LAWSUITThe landlord must file a lawsuit in court to force you out of your home. An eviction lawsuit is called a "Forcible Entry and Detainer" action. Usually, the landlord files the lawsuit in Small Claims Court. After the landlord files suit, you will receive notice of the lawsuit and get a chance to appear in a court hearing before a judge. The landlord can ask the judge for any and all of the following:

All the rent owed plus late charges; The cost of repair to the property; Any other costs which result from your failure to pay rent; Court costs; and, Attorney fees.

The judge may order you to pay these costs in addition to evicting you from the property.

THE FOURTH STEP - SUMMONS (NOTICE)The Summons is your notice that an eviction hearing is set for a certain time and date. If you get the Summons less than three days before the hearing date, you

can ask the judge to reschedule the hearing. If the judge agrees to reschedule, you will have a few more days to move out or get legal help. The landlord must deliver the Summons and copies of all the papers filed in the lawsuit. When the papers are delivered, they have been "served." You can be served in one or more of the following ways:

In person by a process server or a sheriff's deputy at least 3 days before the hearing date;

If you are not home, the papers may be left with anyone over 15 years old who lives at your home;

By certified mail, restricted delivery, return receipt postmarked at least 3 days before the hearing date.

If you can not be found, service can be by publication in a newspaper of general circulation in the county in which you live; or

You can be served by having the sheriff or private process server post the summons on the property at least five days before the hearing and sending you a copy of the summons by certified mail, with a return receipt postmarked at least five days before the hearing date.

Notice by publication or by posting allows the landlord get the property. However, if you fail to show up for the hearing, the judge cannot award money damages against you.

THE FIFTH STEP - HEARINGMany times the judge will ask you to try and work things out with the landlord before the hearing. If you and the landlord reach agreement, both of you should tell the judge or the judge's clerk that you have settled your dispute, and what your agreement is. Do not leave the courthouse before you tell the judge about your agreement. Do not rely on the landlord to tell the judge for you. If you and the landlord cannot agree, then there will be a hearing. At the hearing, the judge will ask if you got notice and if you paid your rent. Tell the judge if you did not get the written notice or if you paid your rent in full during the grace period. Then show the judge your receipt.

THE SIXTH STEP - JUDGMENTIf the landlord followed the steps and you owe money for rent, the judge can order you to move immediately. The judge may also enter judgment against you for past due rent, damages, court costs and attorney's fees. Once the landlord has a

judgment against you, he or she can garnish your wages or bank account to pay what you owe.

THE LAST STEP- MOVING OUTThe landlord must give you a 2-day (48 hour) notice to move out after the hearing. The landlord can give you the notice or send the sheriff to give the notice to you. It is extremely important that you move out before the two days are up. If you do not move out within the two days and the landlord takes back the property, you risk losing everything you have left in the home. If you are pressed for time, take your important papers and most valuable things first, along with any personal property you cannot replace. The landlord can lock up anything you leave, throw your belongings out on the curb, or put things into storage. The landlord can also charge you storage costs. If you do not pay the storage costs, the landlord or the storage company can sell your property. Contact an attorney if you have specific concerns about your situation or for further information about evictions.