Housing Crisis Continues to Grow

The housing crisis in Kane County continues to grow. Elgin has the highest rate of foreclosures in Kane County with 316 homes entering foreclosure in November alone according to Realty Trac. Across the county, 1,116 homes entered foreclosure giving Kane County a 64% foreclosure rate compared to a 24% national rate, ranking Kane County 9th out of 3,141 counties in the country. The 2000 census revealed that 53.4% of homes in Kane County were owned by very low-income owner households and with an unemployment rate remaining over 10% the foreclosure crisis is not likely to end soon. In fact, November’s numbers were the highest for 2009 and each month has seen increases. This crisis has significant destabilizing impact in a community. While the government seeks to stem the tide through programs and the tax code, few people can understand the complexities of these laws.

With your help, Administer Justice will address the housing crisis by intervening and educating affected clients living below 250% of the poverty guideline. Every family needs safe and secure housing regardless of race, national origin, age, disability or language. The foreclosure crisis has ripple effects: an estimated 50,000 Illinois home renters had their housing stability compromised when their landlord went into foreclosure. Illinois ranks third in the nation for mortgage fraud according to a March 2009 report from the Mortgage Asset Research Institute which includes mortgage prevention fraud, elderly and immigrant identity fraud and tax return/financial statement fraud. The 2009 Report on Chicago Region Poverty by Heartland Alliance reveals Kane County is leading in every category of human need outside Chicago, with 25.5% of the population living in poverty (an increase of 2.5% over 2008 with an expected increase of 7% in 2009). That is more than 129,000 people living below 200% of the poverty guideline ($44,000 for a family of 4).

Where can people turn for competent, caring advice, information and intervention assistance? The most recent comprehensive study “Documenting the Justice Gap in America” (2007) found that as many as 80% of low-income individuals experiencing a problem with a legal dimension do not understand that there may be a legal solution. In addition, it found that a majority of low-income people either do not know about the availability of free legal services or do not understand that they are financially eligible for them.

Administer Justice will change that with your help as we communicate our availability to serve low-income adults, disabled individuals, disadvantaged minorities and elderly. These are individuals in crises who are struggling financially and without an understanding of legal and tax options available to them. In the midst of crisis, these individuals and families do not know where to turn for help while navigating through complex and often multiple legal and tax issues. They find themselves overwhelmed and the stress of the situation frequently results in sleeplessness and health problems. Without professional help and without hope they may well find themselves homeless with significant additional legal and tax issues including divorce, bankruptcy, imputation of income for tax purposes and further destabilizing factors. With 34% of Elgin and 28% of Kane County having a Latino population (according to the Pew Hispanic Center based on the most recent census update), these needs are further complicated by language and cultural factors. Kane County has the 53rd largest population of Latinos in the country placing it in the top 2% of the nation. This population is increasing, and any service provider must be prepared to address the needs of this population.

Administer Justice brings competent caring professional counsel to this community crisis. With your support we will bring stability and peace of mind through education, counsel and intervention assistance which in turn will provide significant stability to the entire community. Please consider how you can volunteer or donate to make a difference today by visiting our website at http://www.administerjustice.org/ or calling 847-844-1100.