Hotel homelessness is the homeless problem that you don’t see. People choose to spend more overall to live in an hotel for a couple of reasons. There is no security deposit or credit check. People who may be in debt because of an illness in the family may not have the money or the credit rating to get an apartment, although that would be cheaper. Another reason is that living in an hotel is better than living in a homeless shelter or on the streets.
The problem with hotel homelessness is that it is expensive enough that families have a hard time saving enough to leave, so it becomes a trap.
Hotel Homelessness – Causes
“no fault eviction”
In California, landlords can evict tenants for no reason at all, if the apartment is going to be taken off of the market. That is called an “Ellis Act eviction.” These types of evictions are happening in Chicago and Boston, too.
Landlords have been using that law to get rid of tenants with rent control.
What happens when you try to work with the lender, and they just won’t listen?
People who default on their mortgage loans try to negotiate a deal with the lender to either rent their house or buy it at a higher price. The answer is always “no” from Fannie Mae.
Once forced out of your house, your credit is ruined and usually your bank account is as well. That leads to the homeless hotel and hotel homelessness.
Lack of Affordable Housing
In California, for example, 20,000 affordable units have been lost since 2001 because of redevelopment. In 1986, California passed the Ellis Act, which allows landlords to get out of the rental market and convert units to condominiums, often resulting in tenant evictions.
You leave whether you want to or not, through no fault (so to speak) of your own. Voila! Hotel homelessness.
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