Legislation Law Prof Blog

The Energy Efficiency Divide: Hidden Costs of Poverty

    In public housing, energy costs amount to about 40% more per square foot than in private or market rate housing.  While differences in occupant behavior may account for some of this disparity, a large portion has been attributed to energy-efficient building construction and maintenance, or in this case lack thereof. Many public housing units were built as inexpensively as possible, resulting in higher long-term operating costs. Issues such as drafty windows, insufficient insulation, older and more energy-guzzling appliances and even wiring issues can stretch renters' already strained budgets with high utility bills.

    There are similar findings when comparing the rental market with owner-occupied units. Rented multifamily units show utility costs which are 37% higher per square foot than in multifamily housing that is owner-occupied such as condos or coops.  Rental units are less likely to have energy-saving measures such as florescent bulbs, low-flow shower heads and adequate central heating and cooling systems. As a result, low-income households are 25% more likely to use space heaters to supplement or sometimes entirely supply heat and are 50% more likely to use window air conditioning units.

    In the private housing market, there are incentives for owners and landlords. Home owners who pay their own utilities will see direct saving from updates such as energy-efficient windows, new appliances, or better insulation. For landlords who require tenants to pay their own utilities, there is little incentive to invest in greater efficiency and pass on lower utility costs to renters. It remains a paradox that those who have the least to spend on housing often end up with much higher utility costs, and the “affordable” rental stock is often coupled with deeply unaffordable utilities. It behooves policy makers and affordable housing advocates to invest in equitable energy efficiency policies and programs to address this deep divide.

New Legislation Increases Access to Healthy Foods for Families in Illinois

    On Tuesday, July 28, 2015 Governor Rauner signed a bill that will award an additional 40,000 working households, about 100,000 individuals, access to the nutritious foods through the Supplemental Nutrition Assistance Program (SNAP). Senate Bill 1847, led by Senator Daniel Biss (D), will increase the SNAP monthly maximum gross income limit requirement from 130% of the federal poverty level (FPL) to 165% of FLP effective January 1, 2016. The federal poverty level is the minimum amount of gross income that a family needs for food, clothes, transportation, shelter and other necessities determined by the Department of Health and Human Services. The original 130% FPL level is the lowest required federal poverty limit allowed by federal law for SNAP. By increasing the federal poverty level for SNAP, Illinois is now including struggling individuals and families earning just above the monthly income limit as eligible SNAP households. Although individuals will still need to meet the maximum net income test to qualify for SNAP, increasing the gross maximum income limit will allow families, who have high expenses and qualify for childcare and medical deductions, to have more income for food.

    Currently, the poverty level for an individual household in Illinois is $11,770 annually. To put this in perspective, 135% over the FPL is $15,301 and this would qualify a household of one to receive SNAP benefits. Under the new legislation, an individual who makes $19,420.50, or 165% of the federal poverty level, will now qualify for food assistance. Qualified households, households that include an elderly or disabled individual, will be eligible for SNAP at 200% of the federal poverty level.  

    Over 90% of increases in eligibility for benefits will go to households with a worker and 80% will go to households that include children. The Sargent Shriver National Center on Poverty Law predicts the new law will have a fiscal impact of $1 million to the state. Since SNAP is completely federally funded, the increase will add $60 million in federal dollars for Illinois that will get recirculated into the economy. As the cost of living rises and wages stagnate, this new legislation will provide much needed assistance to Illinois’ rising working poor population. 

    States have the ability to set the maximum gross income limit for programs such as SNAP. Ohio, Florida, Texas and Nebraska have kept the maximum gross income limit at 130% of FPL while states such as Connecticut, Florida, and California have raised the maximum gross income limits to 185%, 200% and 200% of FPL respectively. Increasing the maximum gross income limit for SNAP in all states allows vulnerable Americans access to healthy foods that they would not otherwise be able to afford.

Read more about Senate Bill 1847 and how it will increase the number of Illinoisans who will have access to healthy foods here.

The Voting Rights Act, in cases and in comics

From the New York Times, an interesting Voting Rights Act decision out of the Fifth Circuit:

“A federal appeals panel ruled Wednesday that a strict voter identification law in Texas discriminated against blacks and Hispanics and violated the Voting Rights Act of 1965 — a decision that election experts called an important step toward defining the reach of the landmark law. . . While the federal act still bans laws that suppress minority voting, it has been uncertain exactly what kinds of measures cross the legal line since [the Supreme Court’s ruling in Shelby County v. Holder (2013)].  The Texas ID law is one of the strictest of its kind in the country. It requires voters to bring a government-issued photo ID to the polls. Accepted forms of identification include a driver’s license, a United States passport, a concealed-handgun license and an election identification certificate issued by the State Department of Public Safety.”

And for the young, the young-at-heart, and everyone else with an interest in the grassroots advocacy that led to passage of the Voting Rights Act, check out Books One (2013) and Two (2015)of Congressman John Lewis’ graphic novel trilogy about the U.S. civil rights movement, March.

New Scholarship on Legislative and Regulatory Issues Related to Mortgage Foreclosures

As part of the Legislation Law Prof Blog effort to spotlight relevant new scholarship, today we are featuring an article submitted by Professor Christopher Odinet concerning legislative and regulatory issues related to the mortgage foreclosure crisis.  An abstract and link to his article follows.  (If you have a compelling piece of scholarship of interest to our readers, please contact one of the blog editors for consideration.) 

Abstract

During the housing crisis banks were confronted with a previously unknown number mortgage foreclosures, and even as the height of the crisis has passed lenders are still dealing with a tremendous backlog. Overtime lenders have increasingly engaged third party contractors to assist them in managing these assets. These property management companies — with supposed expertise in the management and preservation of real estate — have taken charge of a large swathe of distressed properties in order to ensure that, during the post-default and pre-foreclosure phases, the property is being adequately preserved and maintained. But in mid-2013 a flurry of articles began cropping up in newspapers and media outlets across the country recounting stories of people who had fallen behind on their mortgage payments returning home one day to find that all of their belongings had been taken and their homes heavily damaged. These homeowners soon discovered that it was not a random thief that was the culprit, but rather property management contractors hired by the homeowners' mortgage servicer.

The issues arising from these practices have become so pervasive that lawsuits have been filed in over 30 states, and legal aid organizations in California, Florida, Michigan, Nevada, and New York report that complaints against lender-engaged property managements firms number among their top grievances. This Article analyzes lender-engaged property management firms and these break-in foreclosure activities. In doing so, the paper points out the legislative and regulatory failures related to the regulation of third party contractors by lenders, particularly in the Dodd-Frank Act, and the need to strengthen state-level unfair trade practice legislation to account for these abuses.

Link to article:  here