I get copies of the committee’s minutes, since my job at The Monroe Evening News includes reporting on the local non-profit organizations.

Here is the factoid in the campaign material drafts that is getting my attention:

Fair market rent in Monroe County, Mich., in 2008 was determined to be $779 for a two-bedroom apartment and $1,017 for a three-bedroom apartment.

A person who works 40 hours a week at minimum wage of $7.15 an hour earns $14,872 a year. Two people in the household working full time at minimum wage bring in $29,744 a year.

At those rates, a family of four with two people working full time would spend 41 percent of their income just on rent for a three-bedroom apartment.  The recommendation for affordable housing that I’ve often seen, and which the homeless network committee is using for its formula, is 30 percent or less for rent plus utilities.

Yes, a family with that low of an income bracket is financially better off renting a two-bedroom apartment. But there are logistical details to consider if there is both a boy and a girl in the family – or the fourth person is a grandparent or another adult relative.

The utility cost for rentals also has to include the use of coin-operated laundry machines. Most of the apartments I’ve been in, or have looked up, in the Monroe area do not have laundry hookups in the individual units.

A snippet:

Several articles published recently have attempted to celebrate an upshot of the down economy: If a parent loses a job and kids have less money for movies and dinners out with friends, families may have no choice but to spend more time together. An Associated Press feature this month offered this spin: “Cutting back means spending more time at home, giving them an opportunity to reconnect.”

But what if the confines of home lead to more than Hallmark moments? What if a couple has been forced to downsize, or if adult children return to Mom and Dad’s nest, or if a young, growing family can’t trade up to the larger house as they envisioned just a few years ago?

The discussions include the realities of sharing a bathroom, how to handle privacy and finding things the families can do together.

If you do run into a shared housing situation, you also need to take a serious look at the amount of stuff each family member has – both those who already live there and those who are moving in. Tripping over things as you walk through the house will increase the annoyance level of sharing the space.

This means you need to hold a garage sale, hand things down to friends or family, take stuff to a consignment shop, post a classified ad or list on eBay, donate stuff for a tax deduction, and recycle or toss out the broken ande obsolete items.

It’s just stuff. You really can replace most of it when needed; and if you are a careful shopper, it will probably cost less than you think to replace things. Besides, when you are packing up for move, there’s a good chance you will find things you really will never need again. Don’t bring that stuff to the new location.

If you have special pieces such as an extra bedroom set or Grandma’s china that you think are worth keeping in reserve, then you can look into getting a storage unit.

But you need a realistic view on how much the storage space will cost on a monthly basis, and whether the family can afford the expense for several months to a year (or more).

There was a handout at the 2008 foreclosure seminar at Monroe County Community College that discussed whether families should get a storage unit when they are being foreclosed on.

Wow. I would think that’s a rare combination in this area, based on the stories I’ve been hearing in the community. There are just way too many people I have met who are on layoff, whose spouse is on layoff, or who are concerned about the future of their jobs.

But if you are in that personal happy place, Brian J. O’Connor, columnist for the Detroit News, has this topic today: It’s a great time to buy your first home.

A snippet:

The backlog of homes for sale in southeastern Michigan is down, while prices and mortgage interest rates are creeping up. Meanwhile, the federal first-time homebuyers credit can give you $8,000 to help with the down payment, closing costs or fix-up bills for your new home sweet home.

“You can find unbelievable deals out there in great neighborhoods,” says Harry J. Glanz, co-founder of Capital Mortgage Funding in Southfield. “If you have a job and a down payment, you’re going to get a nice property for a much, much lower price than you would have three or four years ago. And you’re going to get an $8,000 tax credit right away.”

Yes, in my neighborhood, one can buy a nicer house for less money than my husband and I paid in 2004.

Now, if you are one of my local readers in Monroe County, Mich., and are looking for your first home, contact the Monroe County Opportunity Program while you are in the research stage to learn about their homebuyer education programs.

MCOP also had this announcement that was printed in Wednesday’s edition of The Monroe Evening News:

The Monroe County Opportunity Program is able to assist qualified homebuyers with rehabilitation, down payments and closing costs to purchase a home.

The agency received funding from the Michigan State Housing Development Authority to would-be homeowners.

To qualify, Monroe County residents must have repairable credit, liquid assets of no more than $10,000 after closing, income between 40 and 80 percent of the median range and total mortgage payments between 25 and 33 percent of total income.

For more information, contact the MCOP rehabilitation and development coordinator at (734) 241-2775, ext. 220.

It’s similar to the mortgage solution community meetings that have been held in many places across the country during the past 18 months, including one that took place a year ago in Monroe. But this program was also aimed at first-time home buyers.

I had a “meet and greet” appearance that evening as part of my “Grocery Shopping on a Budget” event series. My co-worker Charles Slat was covering the event for The Monroe Evening News, and here is his report for today’s edition:

When Ron Jeffors was laid off from his factory job, he knew he’d have to live off savings for a while.

What he didn’t know was how long he’d have to do it.

“I knew it might be tough to get a job that paid the same,” he said. “I didn’t know it would be so hard to get any job.”

He finally was hired at a store, but it’s part-time work that doesn’t come close to matching his previous income. His savings are being chewed up and he fears he won’t make his next mortgage payment.”

That’s why the 38-year-old Monroe man was among those who showed up for a series of financial seminars held Wednesday night at the La-Z-Boy Center of Monroe County Community College.

Called “Housing Options – Problem Erasing,” the sessions were organized by several community groups to provide help, or at least hope, to those struggling to make ends meet in an unforgiving economy.

The sessions provided tips on living without debt, requirements for a home purchase and, most important to Mr. Jeffors, how to deal with the threat of foreclosure.

Panels of experts gave advice and answered questions during the three rotating sessions that drew nearly 100 people.

News of new federally backed programs that would allow homeowners in trouble to refinance their mortgages or modify the terms of their home loans was heartening to Mr. Jeffors. “I plan to look into those,” he said.

Patrick Williams, vice president and manager of Monroe Bank & Trust’s residential lending, explained the differences between a mortgagor, or investor in a loan, and the servicer, which is the company that collects and processes mortgage payments. Servicers generally aren’t motivated to work with homeowners because they merely are processing payments, receive a nominal fee for their work, and could be liable if they changed the terms of a loan themselves.

Two new federal plans taking shape might change that and provide incentives for the borrower, mortgagor and servicer to work together, he explained.

One allows a refinancing option to those who still are current with their payments and have loans owned or guaranteed by Fannie Mae or Freddic Mac, the federal loan underwriting agencies.

The other involves a loan modification that provides a lower interest rate, fixed for five years, after which the terms revert to the original loan terms or are subject to a cap. There are no closing costs associated with the new program. The homeowner also could be eligible for a treasury credit of up to $1,000 a year for five years if every payment is made on time. More information is available at www.financialstability.gov.

The experts on foreclosures stressed that each mortgage has a unique set of circumstances and individual needs that defy generalities. But they emphasized that communication is key, though contacts might be rebuffed by lenders. “You have to be persistent. You have to continue to make those calls,” said Renee Matteson, a foreclosure prevention specialist with the Monroe County Opportunity Program.

“The word foreclosure is not a pretty word to hear, but I try to tell people it’s not the end of the world,” she added.

Even if a homeowner is three months behind in making payments, “You still have time to negotiate with the mortgagor or the loan servicer,” she said.

But she said homeowners also have to be realistic. “If you can’t afford the home, look at other options.”

Those include a short-sell in which the lender will allow the homeowner to sell the home for less than what is owed on it. However, there could be income tax impacts to that strategy.

A deed in lieu is another option. It essentially involves deeding the property back to the mortgage company to end the loan.

Brenda Reau of the Monroe County Cooperative Extension Service said it’s important for people to know how they’re spending their money.

“If you really discipline yourself to keep track of everywhere you spend money over the course of one month, you’ll be surprised,” she said.

Aaron Mason, MBT manager of special accounts, collections and foreclosures, warned troubled homeowners that a loan modification will have to last two or three years – a lender probably wouldn’t agree to shorter terms. And he said that although occasionally a principal payment is lowered, those are “extreme cases” and usually involve homeowners who the bank believes actually can afford the home they are living in.

Mr. Williams said his bank will work with customers fearing foreclosure, but he said the homeowner must be practical about cutting optional expenses such as cell phone, cable service or cigarettes. “It takes some serious accountability at home. You have to ask yourself, if I give up these things, would they save me enough cash flow to keep my mortgage current?”

“There are some sacrifices you’re going to have to make if you truly want to keep that home,” Ms. Matteson agreed.

Keynote speaker for the event was state Sen. Randy Richardville, R-Monroe, who gave a summary of past and pending legislation aimed at ending mortgage abuses and helping homeowners on the brink of foreclosure.

The program sponsors were MCOP, the Monroe Housing Cooperative, the Monroe County Association of Realtors, Corporation for Supportive Housing and The Monroe Evening News. Grants from the National Association of Realtors and the Michigan State Housing Development Authority helped underwrite the event.

In the next post, I’ll relate what took place in the Debt-Free Living breakout discussion since Charles focused on the most important breakout discussion on housing options.

A snippet:

“I’m surprised to see that number going down,” said Joe Grifka, the director of Fairview. I’m wondering if people are just fleeing southeast Michigan.”

To apply for and maintain public grants, communities are required by the U.S. Department of Housing and Urban Development to put together a Point In Time survey every couple of years to determine the number of homeless people.

In 2007, the local number was just less than 100, and the number increased to about 125 last year, said Stephanie Kasprzak, director of the Monroe County Opportunity Program (MCOP).

I got an interesting question from a reader the other day. She mentioned a foreclosure that was taking place in her neighborhood, and asked about the foreclosed families, “Where do these people all go?”

Good question. I’m not sure anybody really has the answer.

The Monroe County Network on Homelessness, which led this study, keeps as close a tab as possible on this population.

But it’s not like everyone whose home is sold at the courthouse entrance moves into an emergency shelter or sets up a tent somewhere. Some families who have lost their homes move in with friends or relatives, some move into rentals and some just pack up and leave town.

A snippet:

Siblings are moving in with one another to help pay the mortgage. Adult children who’ve lost homes to foreclosure are moving back home with Mom and Dad. Even spouses in the throes of divorce are putting off separating, living together in awkward cold wars because they can’t sell their houses.

That’s in large part because those losing homes often have nowhere else to go. Many live paycheck to paycheck: Nearly 61% of local and state homeless coalitions are seeing an increase in homelessness since the foreclosure crisis began in 2007, according to an April 2008 study by the National Coalition for the Homeless. Only 5% said they hadn’t seen an increase. The survey found that more than 76% of homeowners and renters who must move because of foreclosures are staying with family and friends.

The Detroit foreclosure rate of 4.5 percent in 2008 is listed in the sidebar.

I know a family in Ohio where two sisters and a granddaughter have moved into the home where their late parents once lived. The arrangement means a commute for both of the sisters – but the house isn’t selling. So they may as well live there for now.

In addition to some examples of how and why people are doing this, the article provides a lot of helpful tips to consider. After all, you’ll be a landlord and that brings a whole lot of logistical issues.

A snippet:

Joe Iacona, who is advertising a spacious bedroom with free Internet access and use of the swimming pool, said he’s gotten a lot of responses from people who didn’t have stable income to pay rent.

“Everyone that I get sounds really down and out and wants a handout,” he said. “It’s like they don’t even have a security deposit.”

If you are leasing out for money, you want to make sure that money exists.

Part of my daily errands for my job is to pick up a pile of paperwork at the Monroe County Courthouse. Almost every day, while I am in the courthouse lobby, I overhear conversations between the court clerks and property owners who need to evict someone for non-payment of rent or other reasons.

Would you want to go through that process for someone who is actually living in your home? I wouldn’t.

On the other hand, I am aware of an Ohio family where three adult family members are now sharing a home.

Mother died this summer, having started the process of moving out of the family home to live with one of her adult daughters. But the house had not sold, and there is a co-signed loan to settle in a bad real estate market, so it’s not a simple matter to “let the house go.”

Two daughters who are divorced have now moved into their childhood home. Even though it means a commute out -of-town to their jobs, financially this made sense for them while they work on fixing up the place.

In the meantime, an adult granddaughter has moved in with them.

The Monroe County Opportunity Program received funding to assist qualifying median-income residents.

Funding from the Michigan State Housing Development Authority has allowed MCOP to help residents with rehabilitation, down payment and closing costs toward the purchase of a home within the City of Monroe, Mich.

To qualify, Monroe County residents must have readily repairable credit, liquid assets of no more than $10,000 after closing, income that falls between 40 and 80 percent of the median range and a total mortgage payment that falls between 25 and 33 percent of total income.

For more information, call the MCOP rehabilitation and development coordinator at 241-2775, ext. 202.

In the Crown Financial Ministries household budget system that I’m using as a reference point, housing expenses include mortgage or rent, gas, electric, maintenance / repair, trash pickup fees if you have those, laundry service costs if you don’t have laundry hook-ups, home or renters insurance and property taxes.

Here are some practical tips on how to cut those expenses back:

• Make good long-term housing decisions. My husband and I deliberately chose to live in the Monroe city limits where we had easy access to shopping, easy access to I-75, walking distance to downtown, the daughter had a short bus ride to school, and we could use public transit. Those accessibility qualities have become increasingly popular among homeowners at a time when gas prices are rising and suburban or country home locations are not as appealing as they used to be. On a related matter, if you own multiple properties such as a retirement home or summer cottage and need to downsize, make careful decisions as to which properties you want to sell off. Think beyond the investment losses and consider the location where your monthly expenses will be as low as possible.
• Watch for any mortgage relief or adjustment programs you may qualify for. There has been a lot of hoopla and headlines about these programs – the problem is that very few homeowners can meet the typical criteria of equity in the home / stable local real estate market / reliable job / good credit. Therefore, if you do qualify for such a program – take advantage of it! If you live in southeast Michigan, I have a resource page called What you can do in a mortgage meltdown.
• Sign up for those budget pay programs on your utilities. I’ve been on those budget-pay programs for natural gas and electric service off and on throughout my adult bill-paying life. Yes, you will pay the same on average throughout the year. But I do appreciate not have a peak of three months of high electric bills during air conditioning season.
• Be cautious about electric use. Look up the projected electric use before you buy that new appliance – while new household appliances typically use less electricity, many of the new TV sets are an exception to the rule. My husband and I noticed about a $5 a month drop in our electric bill after installing as many CFL bulbs as possible throughout the house. I unplug my cell phone when it’s not being charged, and park on the street rather than use the electric garage door opener when I am in and out during the day. And while it’s tempting to get a deep freezer to save money on food expenses, remember the impact on your electric bill. It may be better to stock up instead on dry good items that won’t require special storage.
• Use electric timers and programmable thermostats when possible. We put our outdoor Christmas lights on an electric timer. And if there are times during the day when no one is home (I know, some of you are on different work shifts), you are an ideal candidate for a programmable thermostat.
• Recycle anything possible rather than throw it out. I don’t get a break on our trash bill by sorting plastic, glass, metal and paper items into the recycling bins, because our trash bill is paid through the city budget as part of our property taxes. But I am saving my city from unnecessary landfill fees, which is good stewardship and in the long run saves money for my tax bill. Besides, we used to live in a neighborhood where trash service was cheaper for families who put out only two cans a week rather than subscribing to unlimited service.
• Work into new laundry routines. If you have laundry appliances at home, you can choose when to run those machines. It could make a lot of sense to run the laundry at night rather than during the hot day. Line drying is also making a comeback in popularity to avoid the electric use; and while I don’t do that now, there was a time when I didn’t have a clothes dryer and had no other option. If you have to haul out your laundry to the laundry center, remember to bring your own snacks and drinks and books so you aren’t wasting money on the vending machines and convenience stores. And from time to time, the local laundry centers have advertised off-peak hour discounts for services – watch for those!
• Ask about insurance discounts. Don’t go without home or renters’ insurance. But you can often bundle your insurance policies with one company in order to qualify for discounts. Another tactic is to raise your deductible. And when you are choosing a new rental or owner-occupied home, speak to your insurance agent about how you can keep the insurance expense down. It’s a wonderful coincidence if you happen to move into a home where the neighborhood fire hydrant is literally in your front yard!
• Pay close attention to your property tax bill. If there is something that doesn’t make sense on your tax statement, or is obviously an error, then contact your tax department for an explanation or follow the procedures to file an appeal. If you are asked to vote an approval or renewal for property tax levy, it may be tempting to vote “no.” But first find out what will happen if that funding doesn’t pass at the ballot. You might lose out in the long run if that public service is no longer available.
• Find repair companies and contractors you can trust. Yes, it’s very trendy to use the Internet-based referral services. But here’s another idea – attend a business or vendor expo to you can meet the business owners and representatives in person and see examples of their work. I hired a landscape company after meeting their rep at the Home Builders Association of Monroe County vendor show. Even the Monroe County Fair can give you an opportunity to see service and product vendors you may not already be familiar with.
• Check into communication bundles and discounts. There is a lot of competition in the market for cable service, wireless and landline phones. You can drive yourself crazy looking for the cheapest options, so here’s my advice: focus on the features you need or use on a regular basis. Some people have dropped their landlines or long distance service. Others take pay-as-you go wireless. Some people need all-you-can text. Some families don’t spend enough time at home to warrant a cable subscription. Then seek out your best pricing options that fit your actual use. Communication bundles change all the time and sometimes even existing customers can get discounts. Example: this week I followed up on a letter from my phone company to review my account. The customer service rep and I went through the options line by line, and when the call was done I got $23 off our phone bill each month for a landline package that still fit our calling patterns.

Homeowners are being sought by Habitat for Humanity of Monroe County.

The local non-profit group is accepting applications for a Habitat house through January.

According to Executive Director Deborah Wykes, the local Habitat is anticipating the contruction or rehabilitation of approximately nine homes in 1009.

Anyone interested can pick up an application at the Habitat office, 840 LaPlaisance Rd., or go online to www.habitatmonroemi.org.