Foreclosures

Hundreds Protest Wells Fargo Shareholder Meeting in SF

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The New Bottom Line, a national campaign to hold banks accountable for foreclosures, kicked off in San Francisco this week, as hundredsmarched through the Financial District to demand that Wells Fargo change corporate policies that bankrupt families, dismantle neighborhoods, and empty public coffers.
During the bank’s annual May 3 shareholder meeting, a group of homeowners and clergy addressed Wells Fargo CEO John Stumpf to demand a foreclosure moratorium.
According to protest organizers, which include Contra Costa Interfaith, ACCE (Alliance of Californians for Community Empowerment) and other members of the New Bottom Line Campaign, unlike other national banks, Wells Fargo has not changed its foreclosure procedures despite reports of “robo-signing” and other foreclosure irregulalities.
“Since 2005, I have been fighting Wells for wrongful foreclosure,” San Leandro resident Donna Vieira said in a press statement. “But through this process, I have learned that I am not alone. A quarter of foreclosures in this country happen right here in California and 700,000 families are in foreclosure right now. We need these banks to have a new bottom line that includes investing in our communities.”
The New Bottom Line Campaign notes that, according to the U.S. Departments of Treasury and Housing and Urban Development, 350,169 Wells Fargo homeowners were eligible for the Home Affordable Modification Program (HAMP) by the end of 2009. But as of Feb 2011, only 77,402 homeowners have received permanent modifications.
Protestors note this only amounts to a 22 percent modification rate, more than two years after the HAMP program began. They also charge that Wells Fargo has canceled 118,697 trial modifications and denied 175,336 homeowners from accessing HAMP.But during this same two-year period, Wells Fargo received nearly $43.7 billion in federal bailout funds, according to a study by the nonpartisan think tank, Nomi Prins of Demos.And in 2010, Wells Fargo reported to the Securities and Exchange Commission that it paid its CEO John Stumpf more than $17 million, including a $14 million bonus.
Protestors also claimed that, over the last ten years, Wells Fargo has paid the lowest worldwide tax rate of the top five biggest banks and did not pay federal taxes in 2009.
Protestors said the May 3 action was supported by a coalition of community organizations, congregations, labor unions, and individuals working to challenge established big bank interests on behalf of struggling and middle-class communities.
“Together, we work to restructure Wall Street to help American families build wealth, close the country’s growing income inequality gap and advance a vision for how our economy can better serve the many rather than the few,” campaign organizers stated.
The New Bottom Line campaign, whic includes National People’s Action, PICO National Network, Alliance for a Just Society, ACCE, and Industrial Areas Foundation of the Southeast (IAF-SE), is making five main demands of Wells Fargo.


1.KEEP FAMILIES IN THEIR HOMES:
“We are demanding that Wells Fargo establish a moratorium on all foreclosures until it negotiates with our coalition to establish comprehensive reforms to their loan modification practices, including offering principal reduction; affordable, fixed interest rates; and provide proof of ownership of the loan,” NBL said in a press release. “We are also calling on Wells Fargo to cease all illegal evictions of tenants in foreclosed properties and commit to working with real estate companies and servicers who follow local and state tenant protection laws.”


2. STOP PREDATORY LENDING:
“We are demanding that Wells Fargo stop financing predatory payday lending companies and stop providing predatory payday loans to their own customers,” NBL stated.


3. REBUILD OUR NEIGHBORHOODS:
“Cities and counties estimate that it costs approximately $34,000 per each foreclosed home that becomes vacant and a potential blight on our communities,” NBL continued. “We are demanding you maintain and PAY the fines on your blighted properties and help share in the cost to our cities and counties starting with Cities and Counties throughout California with Foreclosure Blight and Building Registration Ordinances.”


4. PAY YOUR FAIR SHARE:
“Wells Fargo needs to stop exploiting loop‐holes in property tax laws and federal tax shelters to avoid paying its fair share of local, state and federal taxes,” NBL stated.


5. RESPECT HUMAN RIGHTS:
“We are calling on Wells Fargo to stop investing in the GEO Group and other corporations that are profiting off of immigrant detention centers and private prisons that detain immigrants and separate families,” NBL concluded.


During the May 3 action, eight protestors were reportedly arrested for civil disobedience.

Homeowner defense groups to target Wells Fargo shareholders

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“Foreclosures are the new F-Word.” So said Regina Davis, executive director of the San Francisco Housing Development Corporation, at an April 29 seminar at SFHDC’s office on Third Street that explored ways to prevent more foreclosures in San Francisco, California and beyond.

Since the economic meltdown in 2008, there have been 2,000 foreclosures in San Francisco. And the majority have impacted low-income folks and communities of color, who were sold more predatory loans than other groups, Davis and a panel of foreclosure experts warned
And as the recession drags on, another 2,000 foreclosures could be in the works, further destabilizing communities and draining more resources from the city, in terms of lost property values and related tax revenues.

And while deep-pocketed lobbyists have been making it hard to pass laws that would offer at-risk homeowners more protections, homeowner defender groups have decided to target, and now protest against, the group they believe stand directly in the way of equitable reforms: the banks.
 “Wells-Fargo CEO John Stumpf took home $21 million in 2009 while his bank received $25 billion in TARP funds,” stated a flier that ACCE (formerly ACORN) and the Home Defenders League are distributing to urge folks to meet at Justin Herman Plaza at 11: 30 a.m., May 3 and march to the Wells Fargo shareholder meeting where protesters plan to personally deliver a list of their demands to WF CEO Stumpf.

“He and his cronies fought tooth and nail to kill consumer protection bills in California and around the country and are currently trying to gut a 50-state Attorneys General settlement with homeowners that have been defrauded,” the flier concluded.
It noted that ACCE and the Home Defenders League sponsored this event, in partnership with the California State Labor Federation, the California Nurses Association, Contra Costa Interfaith Supporting Community Organizing, Causa Justa: Just Cause, ENLACE, Jobs for Justice, National Education Association, Oakland Education Association PICO California, PICO National Network, SEIU United Service Workers West and Local 1021 and Tenants Together.

“We are also part of The New Bottom Line, a national campaign focused on creating an economy that works for the many, and not the few,” the flier stated.

How to fight the GOP

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OPINION Now what?

Now we need to build a grassroots progressive movement — wide, deep, and strong enough to fight the right and challenge the corporate center of the Democratic Party.

The stakes are too high and crises too extreme to accept “moderate” accommodation to unending war, regressive taxation, massive unemployment, routine foreclosures, and environmental destruction.

A common formula to avoid is what the Rev. Martin Luther King Jr. called “the paralysis of analysis.” Profuse theory + scant practice = immobilization.

It’s not enough to denounce what’s wrong or to share visionary blueprints. Day in and out, we’ve got to organize for effective and drastic social change, in all walks of life and with a vast array of activism.

Yes, electioneering is just one kind of vital political activity. But government power is extremely important. By now we should have learned too much to succumb to the despairing claim that elections aren’t worth the bother.

Such a claim is false. For instance, consider the many hundreds of on-the-ground volunteers who rejected the paralysis of analysis by walking precincts and making phone calls to help reelect progressive Rep. Raul Grijalva (D-Arizona). Grijalva won a tight race in the state’s southwestern district and will return to Congress next year — much to the disappointment of the corporate flacks and xenophobes who tried to defeat him because of his strong stance against the state’s new racial-profiling immigration law.

The mass-media echo chamber now insists that Republicans have triumphed because President Obama was guilty of overreach. But since its first days, the administration has undermined itself — and the country — with tragic under-reach.

It’s all about priorities. The Obama presidency has given low priority to reducing unemployment, stopping home foreclosures, or following through with lofty pledges to make sure that Main Street recovers along with Wall Street.

Far from constraining the power of the Republican Party, the administration’s approach has fundamentally empowered it. The ostensibly shrewd political strategists in the White House have provided explosive fuel for right-wing “populism” while doing their best to tamp down progressive populism. Tweaks aside, the Obama presidency has aligned itself with the status quo — a formula for further social disintegration and political catastrophe.

The election of 2010 is now grim history. It’s time for progressives to go back to the grassroots and organize with renewed, deepened commitment to changing the direction of this country. If we believe that state power is crucial — and if we believe in government of, by, and for the people — it’s not too soon to begin planning and working for change that can make progressive victories possible in future elections. 

Norman Solomon is co-chair of the Healthcare Not Warfare campaign, launched by Progressive Democrats of America. His books include War Made Easy: How Presidents and Pundits Keep Spinning Us To Death.

Election 2010: The Jackson party

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By Shawn Gaynor

Surrounded by a youthful, diverse, and dedicated volunteer campaign staff, Chris Jackson enthusiastically awaits election results in San Francisco’s district 10.

Nobody here has slept in 24 hours as the campaign pushed for a final get out the vote drive. “Whatever happens, we’ve changed the discussion of this district’s selection, from the focus on middle class issues to a focus on working class issues,” Jackson said. “Our industry is being replaced in District 10 with parking lots and condos. The city needs land trusts to keep foreclosures from destroying neighborhoods.”

He added: “You can’t have high employment in your community if your community reads at a 7th grade level. Win or lose, we are here to stay in the neighborhood and build community. I hope after this election we figure out how to have a united progressive family again, that’s what we need to move forward.”

Stiglitz: The Dangers of Deficit Reduction

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By Joseph E. Stiglitz

Here is our monthly installment of Joseph E. Stiglitz’s Unconventional Economic Wisdom column from the Project Syndicate news series. Stiglitz is University Professor at Columbia University and the winner of the 2001 Nobel Prize in economics. His forthcoming book Freefall will be published this winter.

NEW YORK – A wave of fiscal austerity is rushing over Europe and America. The magnitude of budget deficits – like the magnitude of the downturn – has taken many by surprise. But despite protests by the yesterday’s proponents of deregulation, who would like the government to remain passive, most economists believe that government spending has made a difference, helping to avert another Great Depression.

Most economists also agree that it is a mistake to look at only one side of a balance sheet (whether for the public or private sector). One has to look not only at what a country or firm owes, but also at its assets. This should help answer those financial sector hawks who are raising alarms about government spending. After all, even deficit hawks acknowledge that we should be focusing not on today’s deficit, but on the long-term national debt. Spending, especially on investments in education, technology, and infrastructure, can actually lead to lower long-term deficits. Banks’ short-sightedness helped create the crisis; we cannot let government short-sightedness – prodded by the financial sector – prolong it.

Faster growth and returns on public investment yield higher tax revenues, and a 5 to 6% return is more than enough to offset temporary increases in the national debt. A social cost-benefit analysis (taking into account impacts other than on the budget) makes such expenditures, even when debt-financed, even more attractive.

Finally, most economists agree that, apart from these considerations, the appropriate size of a deficit depends in part on the state of the economy. A weaker economy calls for a larger deficit, and the appropriate size of the deficit in the face of a recession depends on the precise circumstances.

It is here that economists disagree. Forecasting is always difficult, but especially so in troubled times. What has happened is (fortunately) not an everyday occurrence; it would be foolish to look at past recoveries to predict this one.

In America, for instance, bad debt and foreclosures are at levels not seen for three-quarters of a century; the decline in credit in 2009 was the largest since 1942. Comparisons to the Great Depression are also deceptive, because the economy today is so different in so many ways. And nearly all so-called experts have proven highly fallible – witness the United States Federal Reserve’s dismal forecasting record before the crisis.

Yet, even with large deficits, economic growth in the US and Europe is anemic, and forecasts of private-sector growth suggest that in the absence of continued government support, there is risk of continued stagnation – of growth too weak to return unemployment to normal levels anytime soon.

The risks are asymmetric: if these forecasts are wrong, and there is a more robust recovery, then, of course, expenditures can be cut back and/or taxes increased. But if these forecasts are right, then a premature “exit” from deficit spending risks pushing the economy back into recession. This is one of the lessons we should have learned from America’s experience in the Great Depression; it is also one of the lessons to emerge from Japan’s experience in the late 1990’s.

These points are particularly germane for the hardest-hit economies. The United Kingdom, for example, has had a harder time than other countries for an obvious reason: it had a real-estate bubble (though of less consequence than in Spain), and finance, which was at the epicenter of the crisis, played a more important role in its economy than it does in other countries.

The UK’s weaker performance is not the result of worse policies; indeed, compared to the US, its bank bailouts and labor-market policies were, in many ways, far better. It avoided the massive waste of human resources associated with high unemployment in America, where almost one out of five people who would like a full-time job cannot find one.

As the global economy returns to growth, governments should, of course, have plans on the drawing board to raise taxes and cut expenditures. The right balance will inevitably be a subject of dispute. Principles like “it is better to tax bad things than good things” might suggest imposing environmental taxes.

The financial sector has imposed huge externalities on the rest of society. America’s financial industry polluted the world with toxic mortgages, and, in line with the well established “polluter pays” principle, taxes should be imposed on it. Besides, well-designed taxes on the financial sector might help alleviate problems caused by excessive leverage and banks that are too big to fail. Taxes on speculative activity might encourage banks to focus greater attention on performing their key societal role of providing credit.

Over the longer term, most economists agree that governments, especially in advanced industrial countries with aging populations, should be concerned about the sustainability of their policies. But we must be wary of deficit fetishism. Deficits to finance wars or give-aways to the financial sector (as happened on a massive scale in the US) lead to liabilities without corresponding assets, imposing a burden on future generations. But high-return public investments that more than pay for themselves can actually improve the well-being of future generations, and it would be doubly foolish to burden them with debts from unproductive spending and then cut back on productive investments.

These are questions for a later day – at least in many countries, prospects of a robust recovery are, at best, a year or two away. For now, the economics is clear: reducing government spending is a risk not worth taking. 

Joseph E. Stiglitz is University Professor at Columbia University and recipient of the 2001 Nobel Prize in Economics. His most recent book Freefall: Free Markets and the Sinking of the Global Economy is available in French (Le Triomphe De La Cupidité, Liens Qui Liberent) and will be available shortly in Japanese, Spanish, German, and Italian.

Copyright: Project Syndicate, 2010.
www.project-syndicate.org

Joseph Stiglitz: Muddling Out of Freefall

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Here is our monthly installment of Joseph E. Stiglitz’s Unconventional Economic Wisdom column from the Project Syndicate news series. Stiglitz is University Professor at Columbia University and the winner of the 2001 Nobel Prize in economics. His new book is Freefall.

NEW YORK – Defeat in the Massachusetts senatorial election has deprived America’s Democrats of the 60 votes needed to pass health-care reform and other legislation, and it has changed American politics – at least for the moment. But what does that vote say about American voters and the economy?

It does not herald a shift to the right, as some pundits suggest. Rather, the message it sends is the same as that sent by voters to President Bill Clinton 17 years ago: “It’s the economy, stupid!” and “Jobs, jobs, jobs.” Indeed, on the other side of the United States from Massachusetts, voters in Oregon passed a referendum supporting a tax increase.

The US economy is in a mess – even if growth has resumed, and bankers are once again receiving huge bonuses. More than one out of six Americans who would like a full-time job cannot get one; and 40% of the unemployed have been out of a job for more than six months.

As Europe learned long ago, hardship increases with the length of unemployment, as job skills and prospects deteriorate and savings gets wiped out. The 2.5-3.5 million foreclosures expected this year will exceed those of 2009, and the year began with what is expected to be the first of many large commercial real-estate bankruptcies. Even the Congressional Budget Office is predicting that it will be the middle of the decade before unemployment returns to more normal levels, as America experiences its own version of “Japanese malaise.” 

As I wrote in my new book Freefall, President Barack Obama took a big gamble at the start of his administration. Instead of the marked change that his campaign had promised, he kept many of the same officials and maintained the same “trickle down” strategy to confront the financial crisis. Providing enough money to the banks was, his team seemed to say, the best way to help ordinary homeowners and workers.

When America reformed its welfare programs for the poor under Clinton, it put conditions on recipients: they had to look for a job or enroll in training programs. But when the banks received welfare benefits, no conditions were imposed on them. Had Obama’s attempt at muddling through worked, it would have avoided some big philosophical battles. But it didn’t work, and it has been a long time since popular antipathy to banks has been so great.

Obama wanted to bridge the divides among Americans that George W. Bush had opened. But now those divides are wider. His attempts to please everyone, so evident in the last few weeks, are likely to mollify no one.

Deficit hawks – especially among the bankers who laid low during the government bailout of their institutions, but who have now come back with a vengeance – use worries about the growing deficit to justify cutbacks in spending. But these views on how to run the economy are no better than the bankers’ approach to running their own institutions.

Cutting spending now will weaken the economy. So long as spending goes to investments yielding a modest return of 6%, the long-term debt will be reduced, even as the short-term deficit increases, owing to the higher tax revenues generated by the larger output in the short run and the more rapid growth in the long run.

Trying to “square the circle” between the need to stimulate the economy and please the deficit hawks, Obama has proposed deficit reductions that, while alienating liberal democrats, were too small to please the hawks. Other gestures to help struggling middle-class Americans may show where his heart is, but are too small to make a meaningful difference.

Three things can make a difference: a second stimulus, stemming the tide of housing foreclosures by addressing the roughly 25% of mortgages that are worth more than the value the house, and reshaping our financial system to rein in the banks.

There was a moment a year ago when Obama, with his enormous political capital, might have been able to achieve this ambitious agenda, and, building on these successes, go on to deal with America’s other problems. But anger about the bailout, confusion between the bailout (which didn’t restart lending, as it was supposed to do) and the stimulus (which did what it was supposed to do, but was too small), and disappointment about mounting job losses, has vastly circumscribed his room for maneuver.

Indeed, there is even skepticism about whether Obama will be able to push through his welcome and long overdue efforts to curtail the too-big-to-fail banks and their reckless risk-taking. And, without that, more likely than not, the economy will face another crisis in the not-too-distant future.

Most Americans, however, are focused on today’s downturn, not tomorrow’s. Growth over the next two years is expected to be so anemic that it will barely be able to create enough jobs for new entrants to the labor force, let alone to return unemployment to an acceptable level.

Unfettered markets may have caused this calamity, and markets by themselves won’t get us out, at least any time soon. Government action is needed, and that will require effective and forceful political leadership.

Joseph E. Stiglitz, winner of the 2001 Nobel Prize in economics, served as Chairman of the Council of Economic Advisers from 1995 to 1997. He is the author of the recently published bestseller, Freefall: America, Free Markets, and the Sinking of the World Economy.

Copyright: Project Syndicate, 2010.
www.project-syndicate.org
For a podcast of this commentary in English, please use this link: http://media.blubrry.com/ps/media.libsyn.com/media/ps/stiglitz122.mp3

 

Tenant Torment

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Mayor Gavin Newsom’s mid-December decision to announce — on YouTube — that he planned to introduce legislation to protect San Francisco renters from foreclosure-related evictions has outraged tenants rights organizations.

They say Newsom is trying to undermine a much stronger bill by Sup. John Avalos that would give thousands of tenants in newer buildings the same protections as tenants in buildings constructed before 1979.

The mayor’s bill is a classic piece of politics — stealing some of the limelight and giving political cover to mayoral candidate Sup. Bevan Dufty, who voted against Avalos’ package but doesn’t want to be seen as anti-tenant.

This way Newsom and Dufty can enthusiastically support a bill that won’t offend as many landlords — while the mayor vetoes a more robust tenant-protection measure.

Dufty’s decision to side with Sups. Michela Alioto-Pier, Carmen Chu, and Sean Elsbernd in voting Dec. 8 against Avalos’ just-cause legislation gave Newsom veto power over a package that would have empowered thousands of renters.

The Avalos legislation seeks to extend just-cause eviction requirements and protections to tenants in units that are not now subject to eviction controls, which includes most residential rental units built after June 13, 1979. That’s when the city’s current rent control law took effect — and as part of a compromise needed to get the votes for that law, its framers agreed to exempt all “newly constructed” housing.

Newsom’s proposal would only protect those tenants from one category of evictions.

While Newsom promised to introduce his counter-proposal Dec. 15, nothing has come from the Mayor’s Office of Housing so far, fuelling suspicions that the legislation is in fact being drafted by Michael Yarne, a former developer who now works for the Mayor’s Office of Economic and Workforce Development.

Asked Dec. 16 if the Mayor’s Office has submitted any tenant protection legislation, mayoral spokesperson Joe Arellano e-mailed the Guardian, “Not yet. Still ironing out a few details.”

‘OUTRAGEOUS’

In his YouTube address, Newsom said he was committed to vetoing the Avalos legislation, which he claimed was “well-intended” but “went too far.”

His alternative, Newsom said, would protect tenants from the “predatory nature of banks” and “other circumstances” related to “macroeconomic challenges.”

Sara Shortt, executive director of the Housing Rights Committee of San Francisco, described Newsom’s play as “outrageous.”

“The mayor is essentially stealing a bill that came out of the community, watering it down and taking credit for other people’s work,” she said.

“Probably the most frustrating part of this is that there was no attempt to work with any of us,” Shortt added.

As Shortt notes, if Avalos’ legislation doesn’t pass, tenants in at least 10,000 rental units that have come onto the market since 1979 will be left without just-cause eviction protection. That means they can be tossed out for almost any reason.

Shortt’s estimate includes 1,900 units at Trinity Place, 113 units at 430 Main St., 308 units at 333 Harrison St., 113 units built by the Emerald Fund in the Castro District, 192 recently completed units at Strata in Mission Bay, 179 units at 1 Polk St., 720 units at 1401 Market St., 52 units at 818 Van Ness Ave., 5,679 units at Park Merced, and 720 units at Archstone, 350 Eighth St.

But her estimate doesn’t factor in the thousands of potential rentals in the pipeline for Treasure Island, the Candlestick Point shipyard development and the old Schlage Lock site.

Facing a mayoral veto and unwilling to leave tenants without any hope, Avalos introduced an amended version of his just-cause evictions package that addressed Dufty’s concerns about unintended consequences during the board’s Dec. 15 meeting.

“Dufty said he was worried that if someone was in the military and was sent to Afghanistan or decided to go to Harvard to finish their master’s and then wanted to return to their apartment, they’d have to pay a relocation benefit,” Avalos legislative aide Raquel Redondiez explained.

So Avalos amended his legislative package to provide an owner the option of giving additional notice in lieu of making relocation payments for owner move-in eviction of a newly converted single-family home or individually-owned condominium, provided the tenant was initially given specified notice of this status.

The amended bill would also allow eviction from a condominium unit with separable title that had been rented by the developer for a limited time prior to sale of the unit, when the developer has given specified advance notice to the renters.

But Dufty still voted against the amended legislation.

Dufty’s legislative aide Boe Hayward claimed the office didn’t cut a deal with Newsom. “We heard Newsom was interested in introducing legislation but we haven’t seen a draft,” Hayward said. “Michael Yarne mentioned it.”

NO DATA

Hayward told the Guardian that part of Dufty’s problem was an absence of data to support advocates’ claims that people in non-rent-controlled units are being evicted without cause.

“I’ve heard anecdotally that this has happened, but I’ve never seen anyone testify that this has happened,” Hayward said.

He also said Dufty wants Avalos to sit down with small property owners and the San Francisco Apartment Association to hear their concerns.

Shortt acknowledged that such data is hard to come by, but noted that this data gap occurs precisely because there is currently no reporting requirement for evictions that occur in buildings built after June 1979.

“For folks in non-rent-controlled units, it’s like the Wild West,” she said. “Landlords can say ‘I want you out’ and they don’t have to give a reason.

“Right now, such evictions are perfectly legal,” Shortt added, noting that part of the benefit of Avalos’ proposed legislation is that these evictions would be tracked and monitored in future.

She said the mayor’s alternative doesn’t address the larger problem. “While foreclosures are a huge piece of the problem, they are not all of it. There is all this new construction going on. And now that the housing market has turned, units that are either being built or temporarily marketed as rentals, not condos. We’re gaining more units without protections. We can’t just turn a blind eye and say there is no problem and wait for a crisis.”

Dufty told the Guardian that he voted Dec. 15 against Avalos’ amended proposal because “small property owners weren’t invited to the table to dialogue. There needs to be more dialogue between tenant advocates and property owners to come to common ground.”

He said owners are already keeping thousands of rent-controlled units off the market and fears they’ll do the same with post-1979 units. “I don’t want to legislate to the extremes and create a ripple effect where post-1979 units are kept off the market. I’m trying to find ways for folks to rent out their units.” Dufty also said he hadn’t seen the mayor’s proposed legislation.

Shortt said she doesn’t understand what Dufty hopes to achieve by convening landlords and tenant groups. “I feel like we’ve made it clear where we’re willing to go on this, and I can’t imagine anything the San Francisco Apartment Association or others might say that would convince us otherwise. Maybe it’s just a torture technique.”

————–

PROTECTING FAMILIES FROM EVICTIONS

Another major tenant protection bill — Sup. Eric Mar’s legislation to protect families from owner move-in evictions — is headed to the full Board of Supervisors in January. The legislation follows what Mar calls “a couple of minor tweaks” during a Dec. 14 Land Use Committee hearing that took place after months of vetting his bill with the public and family, tenant, and landlord advocacy groups.

The bill seeks to protect families with children from eviction through the OMI process, but would preserve the right of a landlord’s family to evict a tenant’s family, Mar explained.

“During these challenging economic times, our city needs to do whatever it can to ensure that our families are able to live and work here,” Mar said. “This legislation will help our city protect one of our most vulnerable populations: families with children.”

During the hearing, Mar observed that San Francisco is the third most expensive county in the nation for renters and that rent-controlled housing, which encompasses about 70 percent of the city’s rental housing stock, contributes to maintaining a balanced city.

“When a rent-controlled unit is vacated voluntarily or through eviction, the landlord can bring the rental property up to current market rate, making these units unaffordable for our working class and low-income families,” Mar said.

Ted Gullicksen, executive director of the San Francisco Tenants Union, said children need to be protected from no-fault evictions.

“San Francisco protects seniors and other vulnerable tenants from no-fault evictions like the so-called owner move-in eviction,” Gullicksen observed. “We see many families with children being evicted in San Francisco, too often resulting in the family being forced to leave the city where their children were born.”

Advocates say the problem is serious. “We see families flee San Francisco every year due to evictions such as owner move-ins,” said Chelsea Boilard, family policy and communications associate at Coleman Advocates for Children.

Representatives for the San Francisco Apartment Association and other landlord groups spoke out against Mar’s proposal, arguing that anyone with children would have a permanent protection and raising similar objections to ones raised in hearings on Sup. John Avalos’ just-cause legislation.

By the meeting’s end, Mar had amended his legislation to address concerns around the definition of “custodial parent,” including the worry that a 19-year-old could sublease a room to a 16-year-old pretending to be the “custodial parent.”

But Sup. Sophie Maxwell came out against Mar’s amended proposal, which is headed to the full board in January at the recommendation of Mar and Board President David Chiu. All three supervisors sit on the Land Use committee.

“I’m not comfortable with a yes on this legislation,” Maxwell said. “I think we need a comprehensive look at our rental laws and what we need to do. Otherwise, we’ll end up with a hodgepodge.” (Sarah Phelan)

Economic snapshot for November 2009

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The Center for American Progress reports that weakness in the labor market is threatening the fledgling economic recovery. Policy should center on creating jobs to boost U.S. middle class economic security and help those who are most vulnerable.

Friday, November 20, 2009

By Christian E. Weller

(The Center for American Progress is a nonpartisan research and educational institute dedicated to promoting a strong, just and free America that ensures opportunity for all.)

Lingering weakness in the labor market is threatening the fledgling economic recovery. Millions of jobs have been lost and unemployment has risen to the highest level in almost three decades. The labor market weakness will make it harder for families to repay their high levels of debt and thus will likely contribute to high foreclosures, credit card defaults, and bankruptcies.

Policy has shown what it can do to revive a depressed financial market and turn the corner for a shrinking economy. Policy attention should now lie squarely on job creation to ensure that the recent improvements are not short lived. Strong labor market gains are necessary to boost the American middle class’ economic security and help those who are economically most vulnerable. Extended unemployment benefits, increased health insurance coverage, and support for state and local government programs will all help achieve those goals.

1. The U.S. economy has turned the corner. Gross domestic product grew at an annual rate of 3.5% in the third quarter of 2009, the first increase since the second quarter of 2008 and the largest gain since the third quarter of 2007. The economic stimulus legislation helped to increase consumer spending, home purchases, and federal government spending in the summer of 2009, which all contributed to faster growth.

Economic Snapshot for December 2009

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Center for American Progress

Economic Snapshot for December 2009

By Christian E. Weller


Download the snapshot with full graphs
(pdf)

Financial markets have eased, the economy is in recovery, and job losses are shrinking. Economic policy now has two challenges: ensuring strong job growth and securing durable economic growth. These goals are intertwined. Millions of Americans need to find jobs that will allow them to repay their large debts and avoid high foreclosures, credit card defaults, and bankruptcies, which in turn will boost business investment and economic growth.

The successes of past economic policies are apparent. Credit markets have substantially eased from the panic of last year, and the recession ended more quickly than would have been the case without the stimulus. Public policy interventions now need to help bring back millions of jobs and create stronger long-term growth.

Lennar’s third quarter earnings are down

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Text by Sarah Phelan

Lennar kicked off the first day of fall by reporting a $171.6 million third quarter fiscal loss for the period ending August 31. That’s more than double Lennar’s $89 million third quarter loss in 2008.

In a peppy press release posted at the corporation’s investor relations website, Lennar President and CEO Stuart Miller attributed his company’s 3Q loss to lower sales volumes and falling house prices.

“While high unemployment and foreclosures will continue to present challenges, consumer sentiment has significantly improved as homebuyers have recognized that the residential housing market is stabilizing,” he said.

“Assuming the economy continues to stabilize, we believe our improved sales environment, increasing pre-impairment gross margins and ability to leverage S,G&A [ selling, general and administrative expenses] should enable us to return to profitability in fiscal 2010,” Miller concluded.

That’s a pretty big assumption that Wall Street apparently wasn’t swallowing: it sent Lennar’s shares down 53 cents, or 3.2 percent, to $16.01 in yesterday’s midday trading.

Further casting doubt over Lennar’s hopes of a 2010 comeback is the fact that it’s still unclear if lawmakers will decide to extend a federal tax credit of up to $8,000 for first-time homebuyers which expires Nov. 30.

The price of normal

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news@sfbg.com

With a 2010 state proposition on gay marriage in the works and a national gay rally on the Washington Mall being planned for October 10-11 of that year, it’s obvious that more and more of the LGBT community’s resources are being funneled into the battle for marriage equality, while other causes go begging.

Already gay marriage has become a black hole that is sucking untold amounts of money, time, and energy out of our community. In the 2008 election alone, gay marriage supporters raised $43.3 million to defeat Proposition 8, the anti-gay marriage initiative that California voters passed by 52 percent. It may be the biggest chunk of change the community has ever spent for a single fight.

A QUESTION OF PRIORITIES


I’m not against gay marriage. If queer couples want to be as miserable as straight ones, that’s their choice. Marriage is a failed institution. With a 54.8 percent divorce rate nationally and a 60 percent rate here in California, there’s no doubt in my mind that heterosexual "wedded bliss" is more of an oxymoron than a reality.

What’s troubling to me as a queer activist of almost 40 years (much of that time spent on economic justice work) is that, with the tremendous amount of homelessness, poverty, and unemployment in our community, we are spending so much dough on the fight to give a minority of folks — those who opt for tying the knot — rights and privileges that straight married folks have.

Sure, it’s unfair that married straights get tax breaks, not to mention the status of next-of-kin for hospital visits and medical decisions when one partner is ill, and queers don’t. Altogether, married couples have 1,400 benefits, both state and federal, that domestic partners and single people don’t enjoy. It’s a matter of simple justice that the playing field be leveled. Only a right-wing idiot could disagree with that. Now, if only we could fight to give everyone (including singles) those 1,400 benefits.

For me it’s a question of priorities. We are living in scary times. Unemployment is sky-high; millions are without healthcare, including children; foreclosures are robbing homeowners and tenants alike of their housing; and business collapses are leaving a lot of people out in the cold and unable to pay the rent or the mortgage.

DINKS NO MORE


The queer community is no better off.

It’s a popular misconception that queers have a lot of disposable income. The "double income, no kids" (DINK) myth was promoted in the 1980s by gay publishers who wanted to expand their advertising base and their profits. These days, to read many gay publications, you’d think that all queers are going on fabulous vacations and buying expensive clothes, jewelry, and electronic gizmos.

That myth was easily dispelled by a recent study, "Poverty in the Lesbian, Gay and Bisexual Community," published this March by the Williams Institute at UCLA. Like "Income Inflation: the myth of affluence among gay, lesbian, and bisexual Americans," the groundbreaking 1998 study by M.V. Lee Badgett of the Department of Economics at the University of Massachusetts at Amherst, the Williams report found that many members of our community aren’t shopping ’til they drop. They can barely afford to put food on the table.

Nationally, 24 percent of lesbians and bisexual women are poor compared to 19 percent of heterosexual women; 15 percent of gay and bisexual men are poor compared to 13 percent of heterosexual men.

Queers aren’t just low on cash — we’re homeless, too. A 2006 report, "Lesbian, Gay, Bisexual and Transgender Youth: An Epidemic of Homelessness" from the National Lesbian and Gay Task Force and the National Coalition on Homelessness, showed that 20 percent to 40 percent of the 1.6 million homeless youth in America identify as LGBT. In San Francisco, the number of queers in the homeless youth population (estimated at 4,000 by the Mayor’s Office) is "roughly 44 percent," according to Dr. Mike Toohey of the Homeless Youth Alliance in the Haight.

Brian Basinger of the AIDS Housing Alliance says that 40 percent of people with HIV/AIDS, in the city once acclaimed for its care of those with the disease, are either "unstably housed or are homeless." In the Castro, Basinger said, there are only "12 dedicated HOPWA beds" for people with the disease. HOPWA (Housing Opportunities for People with AIDS) is a federal voucher program for low-income people with AIDS that is similar to federal housing assistance program Section 8.

Certain members of our community don’t fare much better in the area of employment. A 2006 survey by the Guardian and the Transgender Law Center reported that 75 percent of transgender people are not employed full-time, and 59 percent make less than $15,299 a year. A mere 4 percent of respondents earned more than $61,200, the then-median income average for San Francisco.

Fifty-seven percent of trangendered people said they suffered employment discrimination, demonstrating the need for the inclusion of "gender identity" in the federal Employment Non-discrimination Act. Human Rights Campaign, a national gay organization, and out Congress member Barney Frank (D-Mass.) cut transgenders out of that legislation the last time it was up before Congress.

It could all get a whole lot worse.

AXING THE FUTURE


Gov. Arnold Schwarzenegger wants to lop at least $81 million from California’s AIDS budget, including money for AIDS drugs, leaving low-income people stranded without their medication. Senior services are also on his cutting block, including $230.8 million from in-home services and $117 million from adult health-care programs. (As we go to press, the state Legislature is working to restore the AIDS money to the budget.)

Mayor Gavin Newsom, in his proposed city budget cuts, is axing $128.4 million from public health and $15.9 million from human services. There’s no doubt these cuts in health and human services will severely affect people with AIDS, seniors, youth, the homeless, and others in our community who can least afford to pay for the city’s budget shortfall.

The millions spent on gay marriage in the past few years could have gone a long way in these lean times. It could have helped make the proposed queer senior housing project, Open House, a reality. With 88 units in the works at 55 Laguna St., the site of the old UC extension, it will be the only such housing for LGBT seniors in San Francisco.

The money also could have funded housing in the Castro for homeless queer youth or people with AIDS. It could have been used as seed money for a much-needed war against poverty in the LGBT community.

A DIFFERENT KIND OF LIBERATION


The queer movement hasn’t always been this obsessed about getting hitched. Forty years ago this week, drag queens and others fought back against the cops who were raiding a gay bar called the Stonewall Inn in New York City’s West Village. Three days of protests led to the creation of the Gay Liberation Front (GLF), a revolutionary group dedicated to the sexual liberation of all people. GLFers weren’t looking to walk down the aisle or form binary couples. In a desire to "abolish existing social institutions," as the NYC branch of GLF said in its statement of purpose, some GLFers explored polyamory (more than one relationship at a time).

That’s why I edited Smash the Church, Smash the State! The Early Years of Gay Liberation, just published by City Lights Books, a collection of writings by former GLF members and other gay liberationists. I wanted to commemorate the 40th anniversary of Stonewall and the birth of GLF with a reminder of who we were and what we did. After all these years, I still don’t want to head to the chapel to get married.

When it really comes down to it, gay marriage is a conservative issue. It’s about wanting to fit in, to be like everyone else. Beyond the important issues of tax breaks and next-of-kin status — and the fact that if any institution exists, it shouldn’t discriminate against queers — marriage is ultimately a means of normalizing binary queer relationships, especially for gay men who have always enjoyed the freedom to be promiscuous. It’s a way to try and rein in our libidos, though the prevalence of extramarital sex among straight couples — 50 percent for women, 60 percent for men, according to a recent issue of Journal of Couple and Relationship Therapy — shows that marriage doesn’t come with a chastity belt.

It also doesn’t come with any guarantees, as researchers discovered in Sweden, where queers were able to contract for same-sex partnerships from 1995 until recently, when full same-sex marriage was instituted. According to a study by the Institute for Marriage and Public Policy, Swedish queers have been divorcing in high numbers, like their straight counterparts, who have a divorce rate that’s just a little higher than the United States.

For queers in Sweden, that’s the price of being normal.

Tommi Avicolli Mecca, who has been a queer activist since he was involved with the Gay Liberation Front at Temple University in Philadelphia in the early 1970s, is editor of Smash the Church, Smash the State! The Early Years of Gay Liberation (City Lights Books).

How to recapture foreclosed homes

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Text by Sarah Phelan

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Courtesy of the San Francisco Housing Development Corporation.

As the Guardian’s report about foreclosures in San Francisco reveals, they are concentrated in the southeast, where working people and communities of color live, making efforts to recapture these properties and resell them as affordable housing units a worthy endeavor.

But for those who believe buying these properties isn’t the best use of city money in stringent budgetary times, it’s worth looking at what’s happening policy-wise elsewhere in the Bay Area.

Last month, a dozen Democratic U.S senators joined their Republican colleagues to defeat a bill that would have allowed judges to reduce mortgages in bankruptcy courts. President Obama, facing strong opposition from the nation’s surviving banks, did not pressure lawmakers to support the measure, and the Senate killed a plan to spare thousands of homeowners from foreclosure through bankruptcy.

Steven Zuckerman, managing director of the California branch of Self-Help, one of the largest community development financial institutions (CDFI) in the United States, says his organization was deeply involved in supporting that legislation. And he doesn’t buy detractors arguments that lowering mortgages in bankruptcy courts would cause banks to raise other people’s mortgage rates.”

‘The bill only included mortgages that already exist,” Zuckerman, who blames the bill’s failure on the “lobbying of bankers’ associations,” told me.

According to information posted at its website, the North Carolina-based Self-Help has already provided billions in financing to small business owners and nonprofits nationwide in an effort to create and protect ownership and economic opportunities for minorities, women, rural residents, and low-wealth families and communities.

And locally, Self-Help is one of several CDFIs trying to help communities like San Francisco’s southeast sector and North Richmond in the East Bay, which have been hard hit by the recent wave of foreclosures sweeping the area.

”We do have a program and a product that we are trying to make available to groups that work in areas with high foreclosures,” Zuckerman said.

Saving the southeast

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sarah@sfbg.com

foreclosures0509.jpg
This map of all foreclosures in San Francisco shows a heavy concentration in the southern part of the city, home to many low-income communities of color.

When Mayor Gavin Newsom and Sup. Sophie Maxwell convened a task force in July 2007 to figure out why African Americans are leaving San Francisco and how to reverse this trend, the subprime loan market crisis was about to send a shock wave of home foreclosures sweeping through southeast San Francisco.

Hope SF, the promised rebuild of the city’s public housing projects, is underway at a cost of $95 million. The city’s certificates of preference program, giving housing priority to black residents displaced by redevelopment, has been expanded and extended. But little has been done to address the immediate problem.

Instead political leaders have focused on a plan to subsidize Lennar Corp.’s construction of thousands of new condos in the southeast section of the city — the heart of the San Francisco’s remaining African American community — and have done nothing to promote a plan that could convert hundreds of foreclosed homes into affordable for-sale or rental units there, right here, right now.

African American Out Migration Task Force (AAOMTF) members recall warning that the crisis would likely hit San Francisco’s already dwindling black population extra hard. And Sup. John Avalos, who was running for election in District 11, remembers seeing impacts in the Excelsior District as early as 2007.

"I was telling people in early 2007 that this was a problem in District 11, and even real estate people didn’t believe me," recalled Avalos, who is exploring legislation to hold banks accountable and spoke at an ACORN protest in support of Excelsior homeowner Genaro Paed, a Filipino native who just staved off eviction orders pending the outcome of his lawsuit against Washington Mutual concerning what Paed describes as "a predatory loan" secured in 2006.

Avalos also planned to introduce legislation on May 12 that would expand protection of renters, including those in foreclosed homes who are now being evicted by banks.

This isn’t the first time city leaders have studied the African American exodus or ways to prevent low-income and minority households from being preyed upon or displaced. Indeed, this task force’s initial findings, (released last summer after Lennar spent millions to persuade voters to support building 10,000 condos in the city’s southeast) suggests San Francisco’s entire black community is at risk unless proactive and immediate steps are taken.

According to U.S. Census data, the city’s African American population shrank to 6.6 percent of the city’s total population by 2005 (a 40 percent decline since 1990) and will likely slip to 4.6 percent by 2050, according to the California Department of Finance. And these findings were made before the foreclosure crisis heated up.

In 2008 Maxwell and other elected officials convened a Fair Lending Working Group (FLWG) to figure out how to respond to the wave of foreclosures. By year’s end, there were 667 home foreclosures in San Francisco, almost all in the city’s southeast sector.

These numbers sound small compared to Contra Costa County or Oakland, where thousands of foreclosures occurred. And they aren’t big enough to qualify for the first round of President Barack Obama’s National Stabilization Program grants, which were released earlier this year. Based on a census-driven formula, the grants sent $8 million to Oakland and no money to San Francisco.

But with half the city’s foreclosures in the Bayview, home to most of the city’s remaining African Americans, the fact that little has been done to save these homes — or to follow early recommendations to do so — is a gentrification crisis in the making.

Ed Donaldson, housing counseling director at the San Francisco Housing Development Corporation in the Bayview District, served on the FLWG and remembers suggesting a two-tier track. First, take steps to protect renters in places that have been foreclosed and second, buy as many foreclosed properties as possible with the aim of reselling or leasing them as affordable units. While the FLWG liked the renter protection angle, it did not support the foreclosure acquisition program.

"The idea fell on deaf ears," recalls Donaldson, who was disappointed his foreclosure purchase plan didn’t make it onto FLWG’s recent recommendation list. FLWG members include financial institutions such as Wells Fargo, Washington Mutual, and Patelco Credit Union; community-based organizations such as Housing and Economic Rights Advocates, SFHDC, Mission Economic Development Agency; and city agencies. The agency also has received staff support from Assessor-Recorder Phil Ting, the Mayor’s Office of Housing, Treasurer Jose Cisneros and the Office of the Legislative Analyst.

"We’d already seen the spike in foreclosure numbers, so how did these recommendations get pushed out? We need something with teeth," Donaldson said.

SFHDC executive director Regina Davis says she suggested a foreclosure purchase and resale plan as an AAOMTF member and was concerned when she noticed that her recommendation was not included on the list discussed at the April 23 meeting. Billed as a closing-out session, that meeting took place at the San Francisco Redevelopment Agency and was attended by Davis, chair Aileen Hernandez, Redevelopment director Fred Blackwell, the Rev. Amos Brown, Barbara Cohen of the African American Action Network, Tinisch Hollins of the Mayor’s Office of Criminal Justice, and former supervisor and assessor Doris Ward, among others. The AAOMTF is finishing up its work this week.

"I got involved because I believed that in exchange for participation, we would see things done and/or funded. Part of what we want to see are real action items that keep African Americans in San Francisco or bring them back. So we really want this issue to move forward with substance," Davis told the Guardian.

Recognizing that San Francisco is facing massive budget constraints, SFHDC is proposing to borrow $1.5 million from Clearinghouse CDFI, a Los Angeles community development financial agency, to acquire and rehabilitate these foreclosed properties.

Davis’ group would then turn it around and offer residents several options: buy (if the prospective buyer qualifies for the city’s $150,000 downpayment assistance and a $50,000 loan from the California Housing Financing Agency); lease (in which SFHDC sells the home to the buyer but leases the land, making the price affordable), lease-to-own. Or, Davis adds, people could rent the units at affordable rates.

But to make the plan work, SFHDC need the banks to sell the properties AT below market rates. Noting that foreclosed properties are still selling in the Bayview for $400,000, Davis says her nonprofit intends to purchase 100 to 200 homes during a 24-month period at less than $200,000 mark.

Yet Davis remains optimistic about the plan’s chances as SFHDC negotiates with major banks for a 50 percent discount, noting that there is a monthly average of 50 foreclosures in the Bayview-Hunter’s Point, and SFHDC has access to 100 qualified buyers.

Blackwell said the Redevelopment Agency hasn’t developed an initiative or a funding pool to respond to the foreclosures in the city’s southeast sector. But, he said, the agency is looking at ways to apply for National Stabilization Program funds even though "federal guidelines mostly don’t apply well in expensive markets like San Francisco.

"We are engaged in advocacy so San Francisco can take advantage of any federal stabilization funds, but we don’t have an agency-specific proposal," he continued.

"Frankly, I think community-based organizations are the best to do programs like that, especially since there is so much anxiety about the Redevelopment Agency and property acquisition in the southeast," Blackwell added.

He believes that given the city’s current budgetary constraints, the AAOMTF "will likely look for leadership from the Mayor and the Board of Supervisors in cases where members have made recommendations and there is an opportunity to bring in public money."

Blackwell feels the city is still getting its mind around its foreclosure problem. "We’ve been spared the wholesale neighborhood-by-neighborhood devastation that places like Antioch faced," Blackwell said. "So, there wasn’t the same sense of urgency. And there’s a need to look more closely at the data. A lot of the information is based on anecdotes."

Yet the feds seem willing to help if city officials take the initiative. Larry Bush, spokesperson for the U.S. Department of Housing and Urban Development’s regional office, says San Francisco and Oakland could file a joint foreclosure plan application.

"If they can identify 100 homes, they’d be eligible for $5 million," Bush said, noting one snag that could unravel the plan locally. "Foreclosed properties must be vacant for at least six months. And as you know, in San Francisco, foreclosed homes still sell."

Maxwell says the city could do more to confront predatory lenders and enforce tenant rights, as well as developing a plan to buy foreclosed properties. "But in San Francisco it’s an issue because of relatively high prices," she told us.

Yet the city’s high prices are the very problem pushing out low-income residents. African American home ownership actually increased after 1990, even as out-migration among black renters increased. But now, if the foreclosures stand, that exodus will likely accelerate.

Asked if she supports SFHDC’s current foreclosure plan, Maxwell said, "It makes sense to me. If that could be done, it would be optimal."

Myrna Melgar of the Mayor’s Office of Housing says she’s not sure that a foreclosure resale plan would work in San Francisco for folks who bought a couple of years ago, when house prices hit $700,000, only to see house prices fall to around $400,000.

"San Francisco is a very different universe from Detroit," Melgar said. "Properties don’t sit around empty and vacant. They are bought by speculators who are betting that in two or three years, their values will go up. So if we had money to buy these properties, which we don’t, we’d be in competition with the speculators, who have lots of money with no strings attached, and who drive the prices up."

Another difference, Melgar said, is that San Francisco banks are holding onto 50 percent of their foreclosed properties, whereas Antioch banks are only holding onto 22 percent. "We’d like to keep folks in the homes," Melgar said. "But it’s a policy issue related to the reality that we have such limited funds."

Pitting poor against poor

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OPINION In 2004, California voters passed Proposition 63, the Mental Health Services Act (MHSA), to fund the expansion of community-based mental health services. MHSA is funded through a 1 percent tax on the portion of a taxpayer’s income in excess of $1 million. It was a form of uniquely appropriate progressive taxation, making the rich pay for all the ways they test our sanity, made especially acute today in the wake of foreclosures and job losses.

Today, Gov. Schwarzenegger is leading a bipartisan assault on Prop. 63, which funds an array of needed services in California and San Francisco. By placing Proposition 1E on the May ballot, the governor is asking voters to divert MHSA money to pay for the budget deficit. This maneuver ignores the fact that California is a safer, saner place because of the act — 200,000 people are now enrolled in mental health services who were not in 2004.

The proposition pits the poor against the poor, making mental health consumers pay the price for the budget deadlock in Sacramento. Mental health services are designed to improve the lives of communities by minimizing the potential for homelessness and hospitalization. Prop. 1E, pitched as a two-year measure, leaves effective programs in the lurch, threatening resources in every neighborhood.

MHSA funds programs for youth and families affected by street and gang violence, queer youth showing early signs of mental health issues, and residents in supportive housing. One of its key accomplishments has been the expansion of resources designed to reach consumers in culturally appropriate ways, with an open process, allowing communities to design solutions to their own problems.

"After Prop. 63 was passed, people with untreated mental health needs saw a glimmer of hope," remarked James Keyes, who serves as a member of the San Francisco Mental Health Board. "In San Francisco alone, we were able to do workforce training, prevention, and housing retention among people with mental health concerns. These innovative programs might not be with us if Prop. 1E passes."

For whatever short-term savings Prop. 1E might provide, the long-term consequences are disastrous. The costs of untreated mental illnesses affect our public health system. Those who never get care, or who lose care, will likely find their jobs, housing, and relationships in peril, and will rely on the remaining (and much more expensive) threads of the social safety net.

Vote No on 1E and send a message to the state government that long-term budget solutions start with Prop. 63’s logic — progressive taxation on those with the most ability to pay. Letting the governor and the legislature cut essential survival services to balance the budget sets a horrible precedent. If voters let them get away with it, they will surely target poor people every time the budget is deadlocked. *

James Tracy works with Community Housing Partnership.

Mayor’s Homeless Count report: Just as invisible as many homeless San Franciscans

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By Rebecca Bowe

On an evening in late January, hundreds of volunteers hit the streets of San Francisco to complete the 2009 Homeless Count, a biennial point-in-time head count of homeless persons in the city. The count is required by the US Department of Housing and Urban Development for all jurisdictions receiving federal funding to provide housing and services for the homeless. To do it, city staffers from various departments team up with volunteers to go out into city streets, emergency shelters, drop-in centers, jails and hospitals to take a tally of how many homeless people they encounter.

In the weeks leading up to it, the Mayor Gavin Newsom issued a press release announcing that he was working with the city’s Human Services Agency to conduct the point-in-time count. “Having an accurate count of our homeless community is essential in determining the effectiveness of our homeless outreach efforts,” Newsom said in a statement. “We’ve got a long way to go toward ending chronic homelessness in San Francisco, but this count will help us to continue in the right direction.”

We called the Mayor’s Office of Communications in January and asked them to keep us in the loop when the results of the homeless count were released. Given the tanking economy, home foreclosures, and anecdotal accounts of rising homelessness, we were interested to see what this survey might reveal. Yet after submitting a series of requests to the MOC earlier this week for the homeless count results, we were finally told: “There has not been a report that has been released.”

Really? How strange. Because Jennifer Friedenbach from the Coalition on Homelessness later forwarded us a document from the city titled “2009 Homeless Count: Executive Summary,” featuring an introduction, survey methods, homeless count results, and analysis. Looks like a report. Sounds like a report. It must be a report!

‘The end of the goddamn family dog’

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Former Bottom of the Hill and DNA Lounge doorperson Greg Slugocki wakes up every morning at 4 a.m. to feed and care for 75 rescued dogs at Milo Sanctuary, one of the largest dog and cat rescue sanctuaries in the country. It’s one-third the size of Golden Gate Park and tucked in the mountains of Mendocino County, north of Ukiah.

Slugocki has worked like a dog since he was hired last November, part of a crew of two who cover 283 acres of mountainous terrain. But it’s something else that has recently made his head spin.

"The rate of animals we’ve had to take because of foreclosures is astronomical," Slugocki said. "I’ve taken more dogs in the last three months than in the last two years."

Milo Sanctuary holds adoptions in Berkeley, Oakland, and San Rafael, and he communicates daily with Bay Area shelters and rescues, which also have reported unprecedented increases in animals reluctantly turned over by their desperate owners.

Slugocki may be in the backwoods of Mendocino County, but he’s not alone in this dilemma. Shelters all over the country are reporting rising numbers of dogs, cats, horses, and all kinds of family pets made homeless by the home foreclosure crisis.

In January, San Francisco Animal Care and Control — the municipal shelter and adoption department obligated to take all animals — documented, for the first time, an unprecedented increase in owner-surrendered animals. The report found that since August 2008, there’s been steady monthly increase in such animals, amounting to a 13 percent average rise since last year. Last month saw the highest number of owner-surrendered animals, with an increase of 35 percent.

Though there may not be a clear, quantifiable way of determining whether those owner-surrendered animals are in fact casualties of the foreclosure crisis, animal rescue folks say there is overwhelming anecdotal evidence that this is the case. "Our rescue partners are stretched," SFACC director Rebecca Katz told the Guardian. "We’re stretched."

Indeed, almost every kennel contains a dog with a tag reading "owner- surrender." Animal Care and Control runs a "no kill" shelter — which means animals are euthanized only if they are too sick to be treated or too aggressive to qualify for adoption — has had to spill some of its new arrivals over into its adoption kennels rather than give all the new arrivals a chance for the owners to reclaim them.

"I’ve been dealing with this shelter for 15 years," said Paley Boucher, founder of volunteer-run Rocket Dog rescue, which saves almost 200 dogs from lethal injection each year. "It used to stand out when you saw a dog that was owner-surrendered. But now almost all of them are." Linda Pope with Nike Animal Rescue Foundation says dogs adopted and returned due to foreclosures is an entirely new phenomenon to the center.

Cat Brown, deputy director of the San Francisco SPCA, reported a rise in owner-surrendered animals. "We feel it’s directly related to the economy," she added. "It’s about people losing their jobs and thinking about what they can give up."

Gary Tiscornia, executive director of Monterey County’s SPCA, says there have been a high number of foreclosure animals and a lack of communication between the shelters and the banks, real estate agents, property inspectors, and other entities that find abandoned animals in vacated homes.

Tiscornia said that Realtors in California have found animals in all kinds of conditions in vacated homes, including rottweillers abandoned with a few bags of food and a tub of water, and a dog left for dead in an empty house. It hasn’t always been the case that such incidents were reported to animal shelters.

The disconnect between corporate entities and shelters has been exacerbated by California laws requiring that inspected property, including animals, be left untouched. A new law that went into effect last month addresses the problem. Assembly Bill 2949 requires anyone who encounters an abandoned animal in a property that has been vacated through lease termination or foreclosure to immediately contact a local animal control agency.

The American Society for the Prevention of Cruelty to Animals (ASPCA) issued a statement on foreclosure animals Jan. 29, offering the following advice to those facing foreclosure or eviction: Check with friends, family and neighbors to see if someone can provide temporary foster care for your pet until you get back on your feet. Make sure pets are allowed — and get permission in writing — if you are moving into a rental property. Contact your local shelter, humane society, or rescue group in advance of moving, and provide your animal’s records to help it get placed in an appropriate home.

To love and lose a home is a hard thing, but to love and lose a home and a furry family member is worse, especially when people don’t know where their pet will end up. "People don’t know what to do," said Boucher, citing an example of a Bay Area woman who kept her dog in the backyard of her foreclosed home long after she had moved, and another of a family that asked the subsequent owners of their foreclosed home to care for their dog.

"We’re perceived as a no-kill city, but that’s just not true," said Boucher, who rescues pit pulls, the most frequently euthanized of all dogs. Like many rescue agents, Boucher disagrees with the standards set by the temperament tests that determine whether a dog is suitable for adoption, arguing that many perfect dogs would not pass the test.

Slugocki also takes issue with temperament tests. "Let’s say I’m a dog that hasn’t eaten for weeks and I get picked up and taken to a shelter and they put down a bowl of food as part of the temperament test. Take it away and see what I’ll do."

"This is a huge disaster, a quiet emergency," Boucher said. "I hope people can open their minds to fostering an animal."

Despite the spike in economy-related homeless animals, Katz says SFACC is still under control, at least for the time being. "We have not seen an increase in euthanasia and we hope not to." About 84 percent of animals that end up at the SF shelter are saved, compared to the depressing national average of 30 percent.

"We do everything we can to save animals’ lives. We reach out to every rescue we know of," Katz said.

But with shelters, rescues, and sanctuaries swamped with a growing wave of owner-surrendered pets, caring for the displaced animals is bound to get tougher, particularly if foreclosure crisis gets worse, as many economists predict. And with budget cuts in the offing in the city, SFACC staff fear cutbacks could drive up euthanasia rates.

Slugocki says his sanctuary has something other shelters don’t: space. He has 283 redwood-adorned majestic acres of it, and he’s willing to take every dog, no matter how many have failed the temperament tests that would guarantee a swift lethal injection at the pound.

"I can take dogs that don’t stand a chance. I can take them crippled, heart worm positive, deaf, blind, you name it," Slugocki said. Half of the 75 dogs at Milo are unadoptable and will live peacefully among the redwoods for the rest of their days. He says he can take up to 1,000 dogs but he’s missing one thing: sufficient staff to build enough dog pens and feed and care for a small city of dogs every day.

"I desperately need volunteers," Slugocki said. "I know there is a crowd of people, that 30 to 60 tattooed, pierced, old rock ‘n’rollers, new Buddhists, lifelong punks who are older and maybe have kids now." For now he’s taking as many dogs as he has pens for and is working 14-hour days to help save the discarded critters of the economic crisis.

"It’s the end of the goddamn family dog," Slugocki lamented. "Nobody who has a dog and has lost a home will ever think about having a dog again."

To contact Greg Slugocki, call (707) 459-0930 or email milo.sanctuary@yahoo.com.

The future of a giant landlord

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OPINION The business model of CitiApartments is in crisis. The local landlord giant faces an avalanche of foreclosures, with almost 20 percent of its units being returned to lenders and dozens more properties in danger. A recent article in The Wall Street Journal blamed the credit market for the losses — but tenants standing up for their rights were a factor, too.

San Francisco renters have complained for years about the company’s practice of buying rent-controlled buildings then driving out tenants in order to re-rent their units at higher rates. In the past few years, tenant organizing has brought attention to CitiApartments’ aggressive tactics and put a kink in the company’s plans.

For years, CitiApartments has been accused of harassing tenants, with tactics ranging from illegal buyout offers to physical intimidation to intrusive surveillance. Tenants report living for months without walls and elevators, struggling with leaks and health hazards, with CitiApartments refusing to make repairs. Such problems are no accident: CitiApartments success depends on getting long-term tenants to move out.

Yet tenants are not sitting idly by. A campaign of tenants and advocates, CitiStop, has been educating new CitiApartments tenants about their rights. Over time, tenants have become less afraid and increasingly in touch with tenant advocates and lawyers. Tenants have pursued hefty private lawsuits and are also working with City Attorney Dennis Herrera, who is suing the company for numerous violations.

This campaign has had real results. Tenants are refusing to let CitiApartments force them out. And the organizing effort has helped defend rent control for all San Francisco tenants — CitiApartments owns such a large share of the apartment rental market that it is able to artificially raise rents citywide.

Normally foreclosures are bad news for tenants who have to deal with large banks unfamiliar with San Francisco tenant law. But in the case of CitiApartments, even bank ownership is an improvement. However, UBS, CitiApartments’ lender, has already made its first serious blunder by allowing CitiApartments to continue managing the buildings the bank now owns. UBS should seriously reconsider this decision, given CitiApartments’ track record.

The long-term fate of the buildings is an open question. An ideal solution would be for the city or a nonprofit to take over ownership of the buildings with the goal of providing permanent, affordable housing.

Though CitiApartments’ distressed mortgages are ideal candidates for federal aid, this option must be pursued carefully. It would not be helpful for the government to invest in these buildings based on CitiApartments’ claims that the company can recoup the money using the same flawed model that caused the problems in the first place. But as long as we avoid that trap, we have a great opportunity to meet the city’s pressing need for affordable rental housing.

CitiApartments’ business model has not been working for tenants for a long time, and now it is not working for CitiApartments. It is time to abandon speculative rental schemes and start prioritizing fair, equitable housing. *

Jane Martin is vice chair of SF Pride At Work and an organizer with the CitiStop Campaign.

Herrera weighs in on utility shutoffs

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By Tim Redmond

Foreclosures can be tough on tenants, and some people are facing evictions. But even if the bank doesn’t toss you out, the previous owner might have stopped paying the utility bills, leaving you with no electricity.

CIty Attorney Dennis Herrera has weighed in with an opinion (PDF) asserting that it’s illegal to shut off power to a tenant after a foreclosure. PG&E can get fines $1,000 a day for cutting off your power. There’s info there on how you can fight back.

Unsteady ground

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› sarah@sfbg.com

If you’ve been tracking Lennar Corp.’s massive redevelopment project at Hunters Point Shipyard in San Francisco, then you probably know that several years ago, after the Florida-based megadeveloper won an exclusive negotiating agreement with the city, it formed a limited liability company, Lennar-BVHP, LLC, to handle operations on Parcel A of the former naval shipyard.

Parcel A is the only parcel of the shipyard that the Navy has released to the city as cleaned up and ready for development. And since "Lennar-BVHP" pops up in court filings related to the developer’s failures to properly monitor asbestos at Parcel A — failures that led Lennar to enter into a half-million dollar settlement with the local air district in July — that entity has been central to activists’ efforts to uncover the giant developer’s local business secrets.

So we noted with interest the fact that that "Lennar-BVHP" has now sold its development rights at Candlestick and the Shipyard to "HPS Development Co., LLC" — just as an environmental review is being prepared of the entire shipyard, including some of its most toxic and radiologically impaired hot spots.

The transaction took place quietly in August, but was mentioned at a Dec. 16 meeting of the San Francisco Redevelopment Commission, during which the Agency authorized a reimbursement-related amendment to the "Lennar-BVHP-HPS Development Co." acquisition agreement.

During this same Dec. 16 meeting, the SFRC also amended a contract with environmental consultants PBS&J/EIP Associates to add tasks and increase the budget so as to complete the long-awaited environmental review of the combined Hunters Point Shipyard/Candlestick development project. Until the EIR is complete and certified, nothing can move forward.

But before we get to the implications of the environmental review for Lennar’s proposed Candlestick Point/Shipyard development, it’s worth rewinding the tape to early 2008 to clarify just how, why, and when Lennar-BVHP became HPS Development — and what that transfer means.

BIG-SPENDING DEVELOPER


In the first six months of 2008 (see "Promises and reality," 04/23/08), Lennar spent more than $5 million to help ensure the victory of Proposition G, which folded the Shipyard and Candlestick Point into one huge redevelopment project, one that could include a new stadium for the 49ers.

And just as urban planners were beginning to wonder if Lennar really would be able to sell proposed luxury condominium complexes on heavily polluted Shipyard land — in the face of a nationwide real estate nosedive — the Irvine-based investment and development company Scala Real Estate Partners announced, in February 2008, that it had signed a multimillion-dollar letter of intent related to Lennar-BVHP’s development.

Founded by former executives of the Perot Group’s real estate division, Scala said it planned to invest up to $200 million — and have equal ownership interests — in the project.

The investment fulfilled a city-issued mandate that Lennar find a financial backer to guarantee its proposed multibillion-dollar project, regardless of market conditions.

Then this fall, Lennar demanded and got approval from the Redevelopment Commission for an additional 500 homes and a 7.5 percent increase in its profit margins (see "Bait and Switch," 11/05/08), as part of an Oct. 27 draft financing plan for the Candlestick Point/Shipyard proposal.

But at the time that this financing plan was negotiated, Lennar-BVHP had, in fact, already sold all of its title and interest in the project land and assigned all its rights and obligations under the related financing documents to HPS Development Co., LP, which filed a business license with the state on Aug. 28.

Records filed with the California Secretary of State show that HPS Development Co., LP, lists yet another limited liability company, CP/HPS Development Co., GP, LLC, which filed a license with the state on Dec. 11, as its general partner. Lennar Urban’s Kofi Bonner is listed as the authorized person for CP/HPS development. And HPS Development Co., LP’s office address is listed as being c/o Lennar Urban’s 49 Stevenson Street, Suite 600 address.

Land-use lawyer Sue Hestor told the Guardian that the move to form HPS Development Co., LP suggests that Lennar ran out of money.

"Forming a limited liability company means that people are just putting their money into that project," Hestor said. "It’s a way to segregate it from other projects."

TOXIC MELTDOWN


The Redevelopment Agency also renegotiated the terms of its contract with consultants PBS&J for an environmental review of the combined Hunters Point Shipyard/Candlestick Development Project Dec. 16th — and the results of that study could shed light on some very scary prospects.

According to Redevelopment Commission documents, the Agency and Planning Department staff, working with the Mayor’s Office, have dentified a number of additional tasks that are necessary to adequately complete this review.

These include the addition of an "analysis of windsurfing off Candlestick Point and evaluations of greenhouse gases and sea-level rise."

The most interesting part of the study, however, may be the analysis of geology and soils, to be prepared by Geotechnical Consultants, Inc. That report will look at the phenomenon known as liquefaction — the tendency of landfill to melt into liquid during a major earthquake.

The development zone is situated on a heavily polluted Superfund site, within a stone’s throw from an existing residential community.

As the executive summary in the Redevelopment Commission’s Dec. 16 agenda, notes: "The Project Areas are underlain predominantly by historic artificial fill with moderate to high liquefaction potential, followed by tidal flats and bay mud deposits that are typically soft, weak, and highly compressible…. These include temporary soil/slope instability caused by grading; erosion potential and increased hazards produced by potential failure of foundation support; and strong seismic groundshaking."

Just what kind of liquefaction risks are involved?

According to a February 2005 memo from Navy environmental coordinator Keith Forman to the Hunters Point Shipyard Restoration Advisory Board, the USGS Hazard Zone Map, which represents potential liquefaction risks, is intended for planning purposes and is not intended to be site specific.

"It depicts the general risk within neighborhoods and the relative risk from community to community," stated Forman.

But that report concluded that during a 7.9 earthquake, Parcel E-2, which is the landfill site where an underground fire burned for months in 2000, may have a lateral shift of 4 to 5 feet and a settlement of about 10 inches.

"This amount of lateral shift and settling could cause some small breaches in a containment remedy, but would be quickly and easily repairable," Forman added.

But the Navy and the city are proposing to cap Parcel E-2, rather than excavate and remove contaminants, which are thought to include PCBs and radionuclides — and there’s some fear that Hunters Point could be the next Hurricane Katrina when the inevitable major earthquake hits.

Members of the Health and Environment/Education Committee of the Bayview Hunters Point Project Area Committee invited Thomas L. Holzer of the US Geological Survey in Menlo Park to give a Dec. 5 beginner’s course in liquefaction — and his remarks were grounds for some serious concern.

Dressed in a gray and white tweed jacket with suede elbow patches, Holzer described how "sand becomes like liquid, capable of flowing" during an earthquake.

"More importantly, where you have groundwater contamination, fluids are discharged to the surface of the contaminated water, from a depth of 40 to 50 feet," Holzer said.

Noting that according to the USGS, a 6.7 earthquake has a 62 percent chance of hitting the region in the next 30 years, Holzer told the crowd, "If it is close enough to Hunters Point, then it’s probably enough to trigger liquefaction in susceptible materials."

In theory, then, the toxic material that the city buried under a cap could become a major hazard. "The soil liquefies, the ground gets to slosh around, and because movement isn’t always uniform, you can get cracks," he said.

As Holzer told the Guardian after the meeting, "Different people and different entities will issue different levels of risk. For some, everything has to do with profitability. So, San Francisco has some soul searching to do. Is it worth it to fast-track a project that has the potential to impact the whole city, should a major earthquake hit? Because then it would no longer be just about Bayview–Hunters Point."

Wise words, given the reality that Lennar continues to hurt financially.

"In 2009, cash generation will continue to be our top priority," Lennar president and CEO Stuart Miller said Dec. 18, as Lennar’s fourth quarter revenues showed a 41 percent decrease.

"We will convert inventory to cash and reduce both our land purchases and homebuilding starts," Miller promised, blaming falling home prices, increased foreclosures, tighter credit, and volatile equity markets for eroding consumer confidence, depressing home sales, and furthering the decline of the housing market.

San Francisco needs a New Deal

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By Christopher D. Cook and Eric Quezada


OPINION On the night the voters spoke, word began filtering through Palm Pilots and iPhones about sweeping budget cuts likely to carve a hole in vital city programs. It’s ugly: massive cuts to the Department of Public Health and numerous social service programs. As usual, programs helping those most in need are getting cut the most. Why aren’t we instead raising revenue from those who have the most?

In this year of "change," we need a fundamental shift in our city’s taxing and spending priorities — a bold New Deal for San Francisco that enlarges the public pie that everyone’s scuffling over, and that creates green jobs and new housing opportunities targeting poor neighborhoods and districts.

It’s time to get serious about taxing and redistributing wealth to stimulate new economic opportunities. The passage of Propositions N and Q — expanding real estate transfer and payroll taxes — is a good start. We need to tax wealth in new ways that replenish the local economy, creating green living-wage jobs with health care and opportunities for small businesses and community-serving groups.

City leaders can make San Francisco a model of good sense by demanding that our wealthiest citizens and corporations help fund a program that creates jobs and economic opportunity for the rest of us. Particularly in the city’s eastern neighborhoods, Districts 9, 10, and 11 (and parts of 6), poverty and economic stress are rampant and families are pressed to their limits — unable to afford health care, working multiple jobs, living in overcrowded apartments, and often in shamefully dilapidated housing conditions.

With home prices declining but rents and foreclosures skyrocketing, the city needs to help thousands of working-class residents who provide vital services — teachers, service-industry workers, and cash-poor immigrants — to remain in San Francisco. Now is the time to prioritize production, public infrastructure, education, and cooperation for the common good; our economy needs a stimulus based on solidarity and collective good.

We’re being presented with false scarcity and false choices — do we cut housing or health care to meet the budget? Few are asking the key question: why don’t we have more money to work with, in this vastly wealthy region?

In an earlier New Deal, President Franklin D. Roosevelt imposed a 90 percent tax on upper income brackets — making it virtually illegal for people to earn so much more than others. Locally, city leaders should explore a gross receipts tax on large firms; new taxes on luxury and high-priced items, such as SUVs, second homes, yachts, and other extravagances; perhaps revive the push for a downtown business tax levied on large firms in the financial district; and a truly progressive income tax harnessing revenues from high-income folks.

People can argue over where the money should go. But it’s brutally clear we are in an age of deepening inequality, widening economic stress, and environmental limits. There’s no room for huge disparities — no room to continue allowing extra-wealthy individuals and corporations to consolidate their gains at the expense of the rest of us. We must renew the fight for public wealth — now. *

Journalist and author Christopher D. Cook is a former Guardian city editor, and a local activist. Contact him at www.christopherdcook.com. Eric Quezada is executive director of Dolores Street Community Services, and was recently a candidate for District 9 supervisor.

Reviving radicalism

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› news@sfbg.com

As the country’s economic, environmental, and political systems teeter on the brink of collapse, several Bay Area groups are reviving calls for radical solutions. And some are drawing parallels to the spirited political activity of 40 years ago.

“In my opinion, 1968 was the beginning of a process, an awakening of the questioning of social movements,” Andrej Grubacic, a globalization lecturer at ZMedia Institute and the University of San Francisco, told the Guardian.

The Great Rehearsal was a week of events from Sept. 17-25 that centered on the many protests, actions, and events of the 1960s and ’70s that are paralleled today. The event alluded to an ongoing struggle for alternatives to the failing institutions that are hurting the average American.

“Neoliberalism is this sort of clinching of the system. It is the last gasp of a dying system,” Katherine Wallerstein, executive director of the nonprofit Global Commons, told us. Wallerstein believes that deregulation is to blame for many of our economic woes, such as the housing crisis, job loss, and a volatile market.

Other recent events such as the Radical Women conference in San Francisco have highlighted the systemic causes of our economic turmoil, saying we should bail out people not banks, cancel student debt, and end home foreclosures. They went on to suggest that the bailout was just a form of jubilee for the rich.

Radical Women member Linda Averill announced at the conference that “if unions don’t take the offense now, we’re going to lose it all.” She went on to advocate mobilizing the labor movement, stating that we must band together against those sustaining the system. Other revolutionaries went even further, calling to abolish the capitalist system. RW member Toni Mendicino said the system of profit is inherently greedy and that reguutf8g it isn’t enough — we must get rid of it.

The Student Environmental Action Coalition (SEAC) is a radical student-run organization focused on solving global climate change. Many of the initiatives taken by SEAC deal with less mainstream environmental concerns, including combating coal power and promoting clean water. These previously ignored problems are pumping new life into the environmental movement. Brian Kelly, former Students for a Democratic Society organizer who now does organizing work for SEAC, told us, “The problem is the fucked-up system. (We need to) carve out a decent life through an alternative to capitalism.”

John Cronan, an organizer for the radical union Industrial Workers of the World, advocates Participatory Economics (Parecon) as an alternative to capitalism. He highlighted Parecon’s values as a solidarity-based system that abolishes the market and replaces it with participatory planning. Parecon, he says, will take into account the social costs that goods and services create; something commonly ignored in today’s capitalist system, a system many claim perpetuates the environmental crisis.

“Climate change is highlighting the system flaws,” Kelly said. He went on to place the environment and climate change as the highest priority in the upcoming presidential election, proposing green technology as the answer to the economic turmoil and global climate change taking place. The Power Vote program, he told us, supports the investment in green technologies by politicians and citizens.

The Community Environmental Legal Defense Fund (CELDF) has pushed local governments in many rural farming communities to create ordinances claiming nature as an entity that should have more political and legal prominence than property. These ordinances aim to curb pollution and provide communities with a safeguard against corporate influence.

Through similar efforts, grassroots organizations have managed to stop 59 coal-fired power plants in 2007 by persuading courts not to grant permits for the plants. This is one of many steps to contest the environmental degradation taking place.

“I believe we have reached the stage where it is time for civil disobedience,” said Al Gore, calling for people to rise up against the construction of new coal plants, speaking at the Clinton Global Initiative in March.

Gore’s call to action has prompted many activists to battle corporations and self-interested government. “The current economic and political systems are out of whack with human and democratic values,” Kelly said. “The system is exposing itself.” According to many, the system is shifting dangerously close to totalitarianism.

There’s even been a resurgence of the old Cointelpro (Counter Intelligence Program), an FBI-run spying and political sabotage program that was responsible for the arrests of 13 Black Panthers in 1973 in connection with the 1971 murder of a San Francisco police officer. The men were subjected to torture techniques similar to those used at Guantánamo Bay and Abu Ghraib.

The 13 Panthers were acquitted for lack of evidence and the case was closed. However, in 2005, with the help of the USA Patriot Act, the case was reopened and eight of the Panthers were re-arrested. John Bowman, one of the detained, announced to the press, “The same people who tried to kill me in 1973 are the same people who are here today trying to destroy me.” Former Panther Richard Brown warned audiences at the Great Rehearsal that the Patriot Act has given the government the ability to profile any ethnic group or organization, past and present, as terrorists.

“The Patriot Act was passed in the name of protecting us and our democracy. But it limits us,” Cronan said. Groups like New SDS have incorporated working against the Patriot Act through their antiwar work, and the American Civil Liberties Union (ACLU) has consistently battled against the act.

Even the Communists are back. Earlier this month, the Revolutionary Communist Party held a demonstration in San Francisco, telling the small crowd, “The world today cries out for radical, fundamental change.”

Many radical groups see opportunity in the current moment. Grubacic told us that, “The future belongs to the ones creating it in the present.” *

 

Economic stimulus, at home

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EDITORIAL Mayor Gavin Newsom is planning to announce a local economic stimulus package some time this week. The Board of Supervisors is holding hearings on how the city can help the San Francisco economy. As the presidential candidates thrash around with proposals to address the worst economic crisis since the 1930s, local politicians are hoping to do their part at home.

And that’s a fine idea. Even in this globalized economy, San Francisco can do a lot to protect its residents and businesses from the ongoing disaster. But the best way to do that will require political courage — and a recognition that economic stimulus works best from the bottom up, not the top down.

The most effective way to get a depressed economy going, in other words, is to put money as directly as possible in the hands of the people most likely to spend it. That means the sorts of policies that big business and landlords will want — say, cutting "red tape" and reducing business fees and taxes — isn’t gong to help.

Progressive economists say that on the national level, one of the most effective policies would be a short-term reduction in the payroll tax. Most working people pay 7.5 percent of their wages into the Social Security trust fund, and most businesses match that contribution. Suspend the employee contribution for three months and everyone in the nation instantly gets a significant raise. (The Social Security fund would take a hit, but this is an emergency and that can be fixed later; despite all the gloom and doom, Social Security will be fine for the next half century with just a few minor fixes.)

The idea is that people who get a raise during a recession are likely to spend it, quickly, which pours money into the economy. The same principal can work in San Francisco. Any economic stimulus package will cost money and add to the city’s deficit (unless Newsom and the supervisors are willing to raise taxes to fund it). But some short-term policies could more than pay for themselves by jump-starting local spending.

A few ideas:

Place a moratorium on all residential evictions. Barack Obama is talking about a short-term freeze on mortgage foreclosures, which makes sense for the nation. But in San Francisco, where most residents are renters, evictions are far more of an economic threat. The mayor and the supervisors could ask the sheriff to refrain from carrying out any eviction actions for a limited period (and potentially cut off funding for eviction actions).

Create an emergency rent-subsidy fund. Make city cash available to anyone facing eviction because of economic circumstance.

Reduce Muni fares for a few months. Muni is in many ways a tax on the poor and working class, who have no other travel options. Almost every penny that people spend on transportation would go right back into the economy.

Suspend the payroll tax on small businesses. Small businesses create most of the jobs in the city; suspending the tax on the smallest businesses (those, say, with payrolls of less than $500,000) would help the most vulnerable and keep the engines of the local economy from failing. Raising the tax on big businesses would, of course, more than pay for this.

Raise the general assistance payment. Sure, some of that money would be spent on alcohol and drugs, but most would be spent on things like food and clothing.

Spend more, not less, on the public sector. Government spending creates jobs; government programs saved the United States from the Great Depression. Taxing the wealthy to fund public jobs programs makes excellent economic sense at the city level, too.

Those are just a few ideas. The supervisors should devote their hearings to developing more. But a plan that only helps big business and doesn’t put money in the pockets of the rest of San Franciscans won’t do anything to help the local economy. *