An August 9 story in the New York Times reports that “more than 120 owners of homes built by Habitat for Humanity in New Orleans are…behind on payments and facing an imminent threat of foreclosure…” according to Habitat officials.
These homeowners are seeing their monthly payments exceed their means due to the rising cost of insurance.
After Hurricane Katrina, Habitat for Humanity was a blessing for many who lost their homes. Habitat made it possible for folks to build generational security in an area of the country that is seeing sky-rocketing rents and a lack of affordable housing.
However, the cost of insurance has risen significantly in coastal areas due to more extreme storms due to the changing climate. Additionally, a series of storms in 2020 and 2021 caused many insurers to leave Louisiana forcing homeowners to turn to Louisiana Citizens Property Insurance Corp., a state-run so-called insurer of last resort.
Sound familiar?
Sadly, Habitat Homeowners and others in affordable housing in the Keys and across Florida are facing the same situation as those in New Orleans.
From the Times article, “…the New Orleans City Council provided a temporary fix, routing $2 million in federal pandemic funds to habitat for Humanity to help stave off foreclosures for now.” Voters will decide this fall on a ballot initiative to create a housing trust fund to help.
These are temporary fixes.
FIRM has been brainstorming with our local Habitat for Humanity Affiliates to find a way to protect their homeowners from the plight facing the homeowners in New Orleans. This week we had an introductory call with officials from Habitat Florida, the organization that oversees all the affiliates in Florida. Together we’ll be working toward building a permanent solution.
Equitable and affordable property insurance protects homeowners and property values and contributes to housing affordability. FIRM is dedicated to helping residents who are the backbone of our workforce to remain in Monroe County and to thrive.