flooded homeowners want out

Floods may put housing out of reach for some

By JASON CLAYWORTH • jclayworth@dmreg.com • August 3, 2008 found at desmoinesregister.com

Iowa faces a major long-term housing dilemma that stretches far beyond the immediate shelter needs for weather flood and tornado victims.

The wider-reaching problem is a lack of affordable housing and, for people like Patricia Jordan, the consequences could mean homelessness.

Jordan, who is legally blind, has for years received a federal housing voucher to pay rent for herself and her 9-year-old daughter. But after losing the home she rented during the June flood, she has spent more than a month trying to find a home or apartment for rent in Cedar Rapids that will accept her voucher. If she can't, a homeless shelter might be her next move.

Housing advocates say the issue Jordan faces is one that will reach across Iowa, even to families not directly hit by flooding or tornadoes.

Many of the state's flooded homes were among the oldest and least expensive in their communities, according to housing officials. If flood-prone houses are purchased in buyout programs or if they are abandoned or foreclosed upon, it means thousands of lower-income families may be forced to relocate.

The result is fewer homes that are considered affordable, pushing higher housing costs to all Iowa families - many who were already paying more than they can afford.

Several state housing advocates said last week that estimating the increase would be difficult. But, particularly in areas hit hardest by the floods, higher housing costs are likely.

"I think it was a crisis before the flood, but I think it's very obvious now what the needs are," said Sheila Lumley, executive director of the Polk County Housing Trust Fund, a nonprofit group focused on affordable housing.

Gov. Chet Culver also is focusing on Iowans without permanent shelter.

Culver, in Cedar Rapids on Thursday when Democratic presidential candidate Barack Obama toured flood-damaged areas, said 10,000-plus Iowans have been out of their homes for more than 30 days. He called on federal officials to deliver aid to Iowans who must decide whether to invest in reconstruction or wait for buyouts.

Floods exacerbate state housing problem

Iowa officials have said for years that many of the state's 1.15 million households are in poor condition. The 2000 census, for example, showed that 4,800 homes or apartments lacked complete plumbing and roughly 6,000 lacked a complete kitchen. A report from the University of Iowa that year showed that at least 100,000 Iowans lived in substandard housing or in homes they can't afford.

Data from the Iowa Finance Authority show that 31 percent of renters and 14 percent of homeowners in 2007 were cost-burdened, meaning they spent more than 30 percent of their household gross income on housing.

The floods will almost certainly compound the problem, creating a huge gap in affordable housing that "becomes very significant," David Miller, administrator of the Iowa Division of Homeland Security and Emergency Management, told Culver and the Rebuild Iowa Commission during its first meeting.

Federal and state assistance that has been identified so far cannot fill the gaps, Miller and housing advocates have said.

Even homeowners in areas that might ultimately be targeted in buyout programs face large challenges that could place additional pressure on the amount of affordable housing in Iowa. Such owners are given pre-flood fair market value when their homes are purchased in buyout programs. It's rarely enough to pay the cost of reconstruction, housing and emergency officials have acknowledged.

For those families who choose to repair their homes, the amount of federal assistance is rarely enough to cover the damage. For most, the federal assistance is around $5,600. The maximum is $28,800, said Bill Vogel, a top official with the Federal Emergency Management Agency in Iowa.

C.R. officials estimate 1,000 homes lost

The most direct hit may be in Cedar Rapids, Iowa's second-largest city, which took some of the largest losses in the state.

Many of the houses that were flooded were homes of low- and moderate-income families, said Jane Benning, an assisted-housing manager for the city.

"Any housing that we lose there is going to affect the affordable housing arena," Benning said.

Jordan and her daughter are currently living with one of her grown daughters, but the space is crowded and the family occasionally has disagreements that make it hard to live together, she said. She recently considered moving into a homeless shelter but received word last week that one apartment has a unit available and has accepted her application. She hopes to move into her new place sometime this week.

"It can't come too soon," said Jordan, who knows she's among the lucky.

Cedar Rapids Councilman Pat Shey told the Rebuild Iowa Commission's Housing Task Force last week that city officials believe at least 1,000 homes will not be rebuilt in his city and that the estimate could double. Most of those homes had 1,000 or fewer square feet, he said.

Federal and state officials continue to inspect and update home damage. Preliminary estimates used by Culver's staff show more than 22,000 homes or apartments with flood damage, of which roughly half are currently uninhabitable. Those estimates come from a combination of numbers from the Federal Emergency Management Agency, the Small Business Administration and state damage assessments.

While the number of homes sold in Iowa has declined, the median home sale price of around $128,000 has remained relatively consistent, which will not offset potential housing crunches, said Pam Carmichael, the head of an Iowa group known as Home Inc. The group helps low-income families become homeowners.

The Rebuild Iowa Commission's Housing Task Force will make recommendations to state officials on how to address the state's housing shortage. The first report, due Aug. 18, will likely focus on short-term recommendations.

Longer-term solutions will be examined throughout the rest of the year, said James Davis, a Charles City flood victim who is a co-chairman of the task force.