Shawn Olson

The number of people living in poverty in America rose by nearly 4 million to 43.6 million in 2009 -the largest figure in the 51 years for which poverty estimates are available - the Census Bureau said Thursday.

The bureau said that the official poverty rate was 14.3 percent, or 1 in 7 of Americans, the highest proportion of the population since 1994.

It was the third consecutive annual increase, up from 39.8 million, or 13.2 percent, in 2008.

The bureau added that there were 8.8 million families living in poverty in 2009.

The poverty rate for under-18s rose from 19.0 percent in 2008 to 20.7 percent in 2009, but fewer people 65 and older were in poverty, with the percentage rate falling from 9.7 percent in 2008 to 8.9 percent in 2009.

The statistics cover President Barack Obama's first year in office, when unemployment climbed to 10 percent in the months after the financial meltdown.

The share of Americans without health coverage rose from 15.4 percent to 16.7 percent - or 50.7 million people - mostly because of the loss of employer-provided health insurance during the recession.

Congress passed a health overhaul this year to address rising numbers of the uninsured, but the main provisions will not take effect until 2014.

The median - or midpoint - household income was $49,777 in 2009, although the bureau said this was not "statistically different" from the 2008 median.

The report also found that:

• Among the working-age population, ages 18 to 65, poverty rose from 11.7 percent to 12.9 percent. That puts it at the highest since the 1960s, when the government launched a war on poverty that expanded the federal role in social welfare programs from education to health care.
• Poverty rose among all race and ethnic groups, but stood at higher levels for blacks and Hispanics. The number of Hispanics in poverty increased from 23.2 percent to 25.3 percent; for blacks it increased from 24.7 percent to 25.8 percent. The number of whites in poverty rose from 8.6 percent to 9.4 percent.
• Child poverty rose from 19 percent to 20.7 percent.
• The earnings of women who worked full time, year-round were 77 percent of that for corresponding men.
• The real median earnings of men who worked full time, year-round rose by 2.0 percent between 2008 and 2009, from $46,191 to $47,127. For women, the corresponding increase was 1.9 percent, from $35,609 to $36,278.

Politically sensitive time
The new figures come at a politically sensitive time, just weeks before the Nov. 2 congressional elections, when voters restive about high unemployment and the slow pace of economic improvement will decide whether to keep Democrats in power or turn to Republicans.

The 14.3 percent poverty rate, which covers all ages, was a 16-year high but was lower than estimates of many demographers who were bracing for a record gain based on last year's skyrocketing unemployment. Many had predicted a range of 14.7 percent to 15 percent.

Analysts credited in part increases in Social Security payments in 2009 as well as federal expansions of unemployment insurance, which rose substantially in 2009 under the economic stimulus program.

With the additional unemployment benefits, workers were eligible for extensions that gave them up to 99 weeks of payments after a layoff.

Another likely factor was a record number of working mothers, who helped households by bringing home paychecks after the recession took the jobs of a disproportionately high number of men.

"Given all the unemployment we saw, it's the government safety net that's keeping people above the poverty line," said Douglas Besharov, a University of Maryland public policy professor and former scholar at the conservative American Enterprise Institute.

In 2009, the poverty level stood at $21,954 for a family of four, based on an official government calculation that includes only cash income before tax deductions. It excludes capital gains or accumulated wealth, such as home ownership.

As a result, the official poverty rate takes into account the effects of some stimulus programs in 2009, such as unemployment benefits as well as jobs that were created or saved by government spending.

But it does not factor in noncash government aid such as tax credits and food stamps, which have surged to record levels in recent months. Experts say such noncash aid tends to have a larger effect on lowering child poverty.

Beginning next year, the government plans to publish new, supplemental poverty figures that are expected to show even higher numbers of people in poverty than previously known.

The figures will incorporate rising costs of medical care, transportation and child care, a change analysts believe will add to the ranks of both seniors and working-age people in poverty.

Consumer confidence is up for the month of August and the average price of homes was surprisingly up for the month of June. The price of a U.S single family home rose in the month of June and was up overall for the second quarter of 2010, according to a report released by The S&P/ Case-Shiller Home Price Indices. After a home price fall the first quarter of 2010 by 2.8 percent it is great to see an increase in home prices by 4.4 percent the second quarter. Nationwide home prices are up 3.6 percent from a year ago. Many economists caution though that the increase seen was a result of the home buyer's tax credit, and prices could likely fall in the months to come.

The S&P/Case-Shiller home price index tracks the value of residential real estate across the nation and of 20 major metropolitan regions. The price of homes across the United State has risen 6 percent since the price bottom dropped in April of 2009, but still remain 28 percent below their peak in 2006. 17 of the 20 major regions showed an increase in home prices for the month June. Chicago, Detroit, and Minneapolis ranked as the top 3 with increases of 2.5 percent. This marks the third month in a row that home prices have increased in the Minneapolis area, but many feel that this trend is about to end as a result of the home buyer's tax credit having come to a close. The three cities that did not see a gain were Seattle and Phoenix were prices remained flat and Las Vegas were prices fell by .06 percent

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Seems like every time I turn around these days they are changes after changes. New programs, guidelines changes, underwriting, investors want this and not this. Do we want people in houses???? The American Dream is gone. You have to jump though hoop these days to get a loan done no matter who you are and how much you have. The interest rates are great but not many canget into a home with all this tough underwriting. From one extreme to another!!!!!! Please dont vote for OBAMA we have had enough change for the BAD!!!

U.S. Housing and Urban Development Secretary Shaun Donovan today awarded an additional $12 million in funding to Minnesota communities struggling to reverse the effects of the foreclosure crisis.

The grants announced Wednesday represent a third round of funding through HUD's Neighborhood Stabilization Program (NSP) and will provide targeted emergency assistance to help local communities Minnesota acquire, redevelop or demolish foreclosed properties.

"These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods," said Donovan. "We want to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight. As a direct result of the leadership provided by Senator Chris Dodd and Congressman Barney Frank, who played key roles in winning approval for these funds, we will be able to make investments that will reduce blight, bolster neighboring home values, create jobs and produce affordable housing."

The funding announced today is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion.

Like those earlier rounds of NSP grants, these targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. Today, 92 cents of every dollar from the first round of NSP funding is obligated - and is in use by communities, buying up and renovating homes, and creating jobs.

State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low-to moderate-income homebuyers (household incomes not exceed 120 percent of area median income).

In addition, these grantees can create "land banks" to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. HUD will issue an NSP3 guidance notice in the next few weeks to assist grantees in designing their programs and applying for funds.

NSP 3 will take full advantage of the historic First Look partnership Secretary Donovan announced with the National Community Stabilization Trust last week. First Look gives NSP grantees an exclusive 12-14 day window to evaluate and bid on properties before others can do so.

By giving every NSP grantee the first crack at buying foreclosed and abandoned properties in these targeted neighborhoods, First Look will maximize the impact of NSP dollars in the hardest-hit neighborhoods - making it more likely the properties communities want to buy are strategically chosen and cutting in half the traditional 75-to-85 day process it takes to re-sell foreclosed properties.

NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. HUD seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under NSP receive homeownership counseling and obtain a mortgage loan from a lender who agrees to comply with sound lending practices.

In determining the allocations announced today, HUD, as it did with NSP1, followed key indicators for the distribution formula outlined by Congress. HUD is using the latest data to implement the Congressional formula. The formula weighs several factors to match funding to need in the 20 percent most distressed neighborhoods as determined based on the number and percentage of home foreclosures, the number and percentage of homes financed by a subprime mortgage related loan, and the number and percentage of homes in delinquency.

To estimate the level of need down to the neighborhood level, HUD uses a model that takes into account causes of foreclosures and delinquencies, which include housing price declines from peak levels, and increases in unemployment, and rate of high cost and highly leveraged loans. HUD also considers vacancy problems in neighborhoods with severe foreclosure related problems.

In addition to a third round of NSP funding, the Dodd-Frank Wall Street Reform and Consumer Protection Act creates a $1 billion Emergency Homeowners Loan Program to be administered by HUD. This loan program will provide up to 24 months in mortgage assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.

HUD will announce additional details, including the targeted areas and other program specifics when the program is officially launched in the coming weeks.