NEW ORLEANS – Housing advocacy group HousingLOUISIANA says when CARES Act foreclosure protections expire, Louisiana will need $140 million per month to stabilize homeowners. The group says 28% of Louisiana homeowners (nearly 110,000 households) were unable to pay their mortgage in September. The information can be found in a new report titled Homeowners on the edge: Is America on the Brink of a Foreclosure Crisis?.
“In essence, we’re four months away from the 2008 foreclosure crisis repeating itself in Louisiana,” said Andreanecia Morris, HousingLOUISIANA president. “The data in this report makes that very clear. Last month in the Greater New Orleans area alone, more than 21,000 households did not pay their mortgages. What is going to happen to these families come January, when the federal protections expire? HousingLOUISIANA is sounding the alarm now because we have to take action now. Louisiana legislators are in session and we need them to act. Members of congress will be running for re-election, and we need to know what they plan to do about this before we cast our ballots.”
The report was compiled by UrbanFootprint on behalf of Center for Planning Excellence and focuses on HousingLOUISIANA’s nine regions. As is the case with the rental crisis, homeowners who are falling behind on their mortgages are disproportionately low-income, non-white residents.
- More than 50% of those who were unable to pay their mortgage have a household income of less than $50,000 a year.
- Non-white communities in Louisiana have a non-payment rate that is nearly twice that of white communities – 14% and 8%, respectively.
“The report’s findings on the state of home ownership amid the COVID-19 pandemic, along with what we already know about the rental needs in Louisiana, make clear that we cannot wait for this looming crisis to unfold – the stakes are too high,” said Camille Manning-Broome, president and CEO of the Center for Planning Excellence. “The state of Louisiana cannot afford the economic instability and the deepening disparities that will result if our lawmakers fail to put forth proactive, data-driven, equity-driven policies and programs to address this housing crisis. As we navigate the impacts of the pandemic, addressing Louisiana residents’ most basic needs by ensuring they have food on the table and a roof over their heads should be legislators’ top priority during this special session.”
Click here for more information.
