COLUMBUS, Ohio - Middle-class families have taken the biggest hit during the Great Recession, according to a Federal Reserve Bulletin report on family wealth. Many see the decline in home values and the foreclosure crisis as the primary reasons, because home ownership is the main source of wealth for most people.

According to Algernon Austin, director of the Program on Race, Ethnicity and the Economy at the Economic Policy Institute, the decline is even worse for people of color, since many minorities have been the targets of unfair lending practices.

"Following the Federal Reserve data for African Americans, we saw that the home ownership rate actually peaked in 2004, and we've been seeing a rather strong and startlingly strong decline since then."

The decline in wealth for African Americans and Latinos is not surprising, says David Berenbaum, chief program officer, National Community Reinvestment Coalition, given the lax underwriting standards of big financial institutions for home loan products.

"African American and Latino consumers were often steered into products - frankly, subprime loans or nontraditional loans - when they qualified for prime, high-credit, high-quality products."

Some have blamed the Community Reinvestment Act as the reason for so many foreclosures. Berenbaum disagrees.

"The myth out there is that low incomes from consumers who were not ready for home ownership created this crisis. In fact, most of the subprime loans were refinanced loans, not loans designed to expand home ownership."

Dedrick Muhammad, senior director of the NAACP's Economic Department, points out that the decline in wealth for middle-class Americans has been 30 years in the making, and is especially difficult for people of color, who had less to begin with. He sees closer scrutiny of lending practices by the U.S. Justice Department as one step in the right direction.

"Much more needs to be done. As a country, we need to come together and see how we can really move the economy forward, so we can all grow together."

Many big banks, including Wells Fargo and Bank of America, have settled multimillion-dollar lawsuits in recent months, charged with unfair lending practices that targeted minorities.

The June 2012 Federal Reserve Bulletin report is online at federalreserve.gov.



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A new report shows Montana has the nation's most rapidly rising homeless population. Advocates for more affordable housing call the situation critical.

One Kalispell-based shelter is asking for state funding to expand, and do what it can to help.

The most recent Annual Homelessness Assessment Report shows Montana saw a 551% increase in its unsheltered population, the steepest rise in the country between 2007 and 2023.

Kalispell-based Samaritan House Executive Director Chris Krager said he feels the pinch every night.

"I like to think we can handle it," said Krager. "We're trying to address it. Samaritan House, we see between 95 and 105 people every night."

That's capacity for Samaritan House, which Krager said has been full every night for a decade - and often has to help people find other options.

He has asked for state funds to expand the facility, which would double its occupancy.

In addition to building single and multi-family housing, Samaritan House also plans to create housing for veterans.

Krager said they often experience mental health issues along with homelessness. The report shows Montana was one of only four states with an increase in homeless veterans.

"Kalispell is the largest city in Montana with no dedicated homeless veteran housing," said Krager. "So, we're going to fix that. The reason this is serious is because the nature of homelessness in Montana - certain times of the year, it could be fatal. So, we want to really be on our game, especially if it's cold out."

More than 30% of people in Montana's homeless shelters reported a mental health and/or substance use disorder in 2022. The report shows in some shelters, that number is nearly two-thirds.




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Georgia lawmakers appear to be taking a major step toward safeguarding property owners against people who occupy homes or apartments illegally, with what's known as the Squatters Reform Act.

House Bill 1017 passed unanimously in both the Georgia House and Senate. It would make illegally occupying personal property a criminal matter, rather than a civil case. This means the rightful owners can get people out of their homes sooner who don't belong there.

The move is expected to bring relief to such residents as Dan Rodgers, who said he once felt squatters had more legal protection than property owners.

"I think the new three-day process is going to benefit a lot of homeowners," Rodgers said. "It seemed like previous squatters' rights were giving them the opportunity to hide behind process."

Under the Squatters Reform Act, people would have to provide valid documentation of their right to occupy the property within three business days or face arrest for criminal trespass. Those who present documents would have their case reviewed within seven days to establish its legitimacy.

Georgia law has required homeowners to file an "Affidavit of Intruder" in the court system to remove squatters from their property, which can take weeks or months. Rodgers, who owns property in Muscogee County, said he hopes the new legislation will serve as a deterrent to those who previously sought to take advantage.

"I don't think that there's very many circumstances we could think of with a normal trespasser having as many protected rights as squatters do, and ending up being able to really affect people's livelihood," he said. "So, I really feel like it's a really good incentive for people to do the right thing."

The bill was sent to Gov. Brian Kemp this week and is pending his signature to become law.


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A case out of Oregon soon to be heard by the U.S. Supreme Court could have a major impact on how cities treat homelessness. Oral arguments for 'Johnson v. Grants Pass' are scheduled for April 22.

It concerns an ordinance in the City of Grants Pass that banned people from sleeping in public, including a prohibition on the use of blankets and pillows.

Loren Naldoza, public policy advocate with Oregon Food Bank, which filed an amicus brief with 15 other organizations in the state in support of the plaintiffs, said homelessness isn't a lifestyle choice.

"It's an involuntary state of being because there have been systems or crises - like our housing crisis, our cost of living crisis or personal crises - that are impacting people across the state, that converge together and make it harder for people to stay stably housed," he explained.

The 9th District Court ruled in favor of the plaintiffs that the Grants Pass law violates the Eighth Amendment against cruel and unusual punishment. Supporters of the Grants Pass law say cities should be allowed to decide their own policies rather than the federal government.

Naldoza said criminalizing homelessness isn't an effective tool and would only create more hunger and poverty, and added people who exit the criminal justice system struggle in many different ways.

"What you get at the end is criminal record, which makes it harder for people who are formerly experiencing homelessness to find a safe, stable or affordable place to call home. And it's also hard to get gainful employment, especially if the employment requires a background check or licensure," he continued.

Naldoza added there are more effective ways to address this crisis.

"What we really need to be investing in is care and compassion, and treatment and other resources that people actually need to exit their experience from homelessness," he said.