Business - North Carolina Recession kicks off vicious cycle

By Monica Chen The Herald-Sun (Durham) DURHAM, N.C. (AP) -- Anthony and Felisha Tussell were in a good mood this week as they met with a case worker over housing. A new apartment had been located for them, with the deposit and first month's rent paid. That's a welcome change from their recent situation, when the couple became homeless after work dwindled at their temp positions with a manufacturing company. That, combined with a spell of sickness in the fall, led to a period when the couple were working just one or two days a week. The couple didn't have health insurance and had been staying at a Budget Inn in Durham after moving out of a friend's apartment. At one point, there was just enough money to pay for food, hygiene products and laundry, according to Felisha Tussell. Tussell had stayed at Urban Ministries for a time when she first moved to Durham four years ago. She said she never thought she'd have to go back. "It was a scary situation," she said. "That hits you. That hits you hard." While more fortunate workers have been able to return to school and pursue other options after losing their previous livelihoods, others have found their lives devastated by the recession. The recession has resulted in dual problems that feed off each other. Those who have been unemployed or lacking in work for a significant amount of time find themselves unable to pay rent and mortgages, resulting in foreclosures or evictions that damage their credit, which further impede their ability to find work and housing in the future. According to Patrice Nelson, executive director of Urban Ministries, the organization provided 12,069 nightly stays for 473 individuals between Oct. 1 and Dec. 31. Of the 298 people who were not chronically homeless, the most common reason cited for their situation was unemployment or underemployment (35 percent). Another 29 percent cited eviction as the main reason. Fortunately, organizations like Urban Ministries are stepping up to help. The organization in downtown Durham provides food, clothing, shelter and counseling to those in need. Most recently, it has partnered with Durham County Department of Social Services and Housing for New Hope on a new program, Homelessness Prevention and Rapid Rehousing. The program's funding comes from $1.5 billion for a Homelessness Prevention Fund that was part of the American Recovery and Reinvestment Act of 2009. The Tussells are one of 12 families that the organizations have helped since December, when the program launched in Durham. Most of the families are coming from situations where unemployment or a slowdown in work led to their losing their homes, according to Terry Allebaugh, executive director of Housing for New Hope. The new program will prevent people from joining the ranks of the chronically homeless, which will help the wider community in recovering from the recession. "If you're in housing and you're laid off, you can hang on for a while with support from here or there," Allebaugh said. "But your time runs out and you end up seeking shelter." "If some people can be helped a little bit right now to get into housing or keep their housing, the thinking is that they won't need our help down the road," he added. Another barometer for need -- food stamps -- has been steadily increasing. According to the Durham County Department of Social Services, 32,104 individuals received food stamps in December, compared with 29,727 in July. Federal funding for food stamps has increased to meet the need, and federal extensions for unemployment benefits have been approved by Congress to grant additional weeks of benefits on top of existing state and federal programs. However, while most experts say the economy has bottomed out and is now building toward recovery, those who work at homeless shelters and other support services say that from their perspective, the job situation is not improving. With no work available, there could be more people struggling with homelessness as their unemployment benefits run out. "Many of the folks coming in are doing so because they couldn't pay their rent as they lost their job," said Tom Holcomb, manager of the homeless shelter at Urban Ministries. Some of the industries Holcomb is seeing people from are those that have been hit hardest by the recession: construction, roofing, production/assembly line work, entry level retail/sales, landscaping. However, Holcomb is also seeing people from other lines of work, like housekeeping, home health care and food service. "Jobs training programs are fine, but if there aren't any jobs when they complete the program, it doesn't do much good," Holcomb added. Mandy Sackreiter, HUD Housing Case Manager at Urban Ministries, said the economy has not improved for those with limited skills and experience, and especially for those with criminal backgrounds. "Because there are now so many people vying for such limited jobs, it's hard for many of our guests to find employment, period," she said. "But finding employment that pays a wage that will allow for people to sustain themselves without the need of outside assistance is even more difficult." Anthony and Felisha Tussell will receive help from the Rehousing program for the first three months they're in their new apartment. After that, case workers will re-evaluate their situation to see if they need additional help. Felisha Tussell is waiting to hear from a Pell grant to help her get into nursing. Anthony Tussell is enrolling in the Park West Barber School in downtown. "A lot of people don't expect to find themselves in this situation," Felisha Tussell said. "You just have to deal with it as it comes. "Sometimes, I stand in my apartment and I look, and I think, Wow,'" she said. "It's like a second chance." Published: Tue, Feb 16, 2010

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