Saturday, March 28, 2015

LOCAL: Hope's Village Letter in the SLO Tribune on 3/31/2015

*****Update 3/31/2015: Becky Jorgeson of Hope's Village wrote a nice "letter to the editor" to the Tribune, which was published today. You can read her letter with the caption of "Many Great Villages" by clicking here. In her letter, she thanks the Tribune for their coverage of her cause, and reiterates the need for a parcel of land in which to plant the first Hope's Village.

Anyways, here is Becky's letter, as the link to the Tribune above does not always work:

Becky Jorgeson, founder of Hope's Village of SLO, was showing off this cabin at Home Depot in San Luis Obispo on Tuesday. She hopes to build villages of these tiny homes around SLO County.

I just want to thank Cynthia Lambert for her great article on Wednesday (“Nonprofit seeks land for a village”), and whoever wrote that wonderful bouquet to us in a recent paper!

Thanks to you, Hope’s Village of SLO is closer than ever to getting 50 more homeless folks off the streets and out of the bushes. We’ll serve those people living on the streets of San Luis Obispo who are ineligible for other services because of a million different reasons. If you know anyone in the world with a tiny plot of rural-type land (3 to 5 acres) outside San Luis Obispo city limits that they’d like a great tax write off on, or someone who would give us a longterm inexpensive lease, please advise.

Once we get the first village up and running, we can duplicate in North County; hence the name (Hope’s Village of Paso Robles, or Hope’s Village of Arroyo Grande, or Hope’s Village of Morro Bay). Time to get more proactive. We can reduce homelessness in our town, in our time!

*****Original Post - 3/28/2015: I am a huge supporter of Hope's Village of SLO. They were recently featured in the Tribune newspaper of San Luis Obispo on March 25, 2015 on page A3. You can read that article in the Tribune by Clicking Here. The reason for my support is that I support all options for affordable housing on the Central Coast - and so should you. Some excerpts from the Tribune article below (in blue):
The Hope's Village nonprofit's goal is to create a self-sustaining community of tiny homes in various parts of San Luis Obispo County, starting in or around San Luis Obispo. The idea is to augment existing services, not compete with them...

A village of 30 small, solar-powered dwellings could house about 50 adults in a drug-and-alcohol free space with a “common house” where residents could cook, shower and wash their clothes. The village would have private security and a council of residents who would meet regularly, Jorgeson said.


What the group needs ... is land ... around San Luis Obispo for about 5 acres on which to cluster the tiny homes, the common house and additional space for a garden and a workshop where residents could start small businesses such as refurbishing furniture.


Hope’s Village has constructed one model home; a 7-by-11-foot cabin that cost about $3,900 to build... In the meantime, the organization’s other project, RVs for Veterans, is still going strong. The organization, which passes on donated recreational vehicles to homeless veterans, just received its 37th donation. 


Article by Cynthia Lambert - (805) 781-7929. 



Above: Interior of Hope's Village Cabin on Wheels.

In addition, I support Hope's Village's other program: RV for Veterans, which receives donated RVs, makes minor repairs to them, and donates them to our homeless vets.


Other forms of affordable housing possibilities (besides Tiny Home Villages such as Hope's Village) include (in no particular order):

• Co-operative housing
• Building Codes in Municipalities which allow Affordable Green Micro-Housing to be built
• Expansion of "granny units" within existing residential
• Legalizing "HomeShare" to allow people to share existing housing
• Converting the sizable portion of unoccupied housing into rental housing
• Tent cities: Empty land with legal tents for the homeless, with basic services on site
• Permanent Tiny Home Villages that do not require them to be on a Trailer
• RV and Modular Home Parks, including Trailer Parks
• Allowing living units to be built on top of retail units on the ground floor
Most or all of the above affordable housing options are not being created in SLO county at this time, to my knowledge. 

The reality is that existing so-called Affordable Housing activities by all levels of government do not produce actually produce affordable housing in volumes that make a dent in the problem. For evidence of that, all you have to do is look around - how much "affordable housing" can you find? Answer: pretty much none. I define Affordable Housing as 30% of total income going to housing and utilities. For a person earning $10 per hour ($18,200 per year), that is about $450 per month.


Note that Affordable Housing is in demand in order to house the unhoused, as well as to allow low income adults to spend a smaller percentage of their total income for housing. Typically, most low income families in SLO pay 50 to 70% of their income towards housing and utilities, leaving little for the rest of life's essentials.

Above: Hope's Village's "Cabin on Wheels", shown at night with festive lights!

You can contact Becky Jorgeson, President of Hope's Village at 805/234-5478 for more information, or email her at beckyrjorgeson@yahoo.com. As with all local non-profits, donations are always needed, especially once Hope's Village procure a site for their Village.


Below is a conversation from Facebook on this article about Hope's Village. I only show the first names of all the folks participating, while leaving my name "Tim Waag" complete.


  • Leslie - Thanks Tim Waag. Being on disability shouldn't have put me on the streets. I was scared how people would react to me. El Segundo to this. Weird and trippy ride. 
  • Tim Waag Agreed, Leslie. People on disability should not have to live under our overpasses, in our doorways, or in creek beds. We have a massive unhoused population here in SLO (relative to the population at large).
  • Leslie - Its scary.
  • Tim Waag Yes, it's scary - especially for women, for whom it is scary and dangerous.
  • Leslie - Too true. People come down to do their dope and walk by and hang out in front of tent hell I have had someone try to get in. Hate it.
  • Tracy - Thank you, Tim . I will read and definitely support!
  • Tim Waag Thanks Tracy. Note that when Hope's Village acquires a property and develops their "Village", it will only be a drop in the bucket towards creating enough affordable housing for the homeless and the low income. HV envisions a village with 30 small cabi...See More
  • Tim Waag On January 26, 2015, I participated in SLO County's Point in Time Survey, and wrote about it here: http://timwaagblog.blogspot.com/.../slo-point-in-time-pit...

    Just a regular old Central Coast guy who raised some...
    TIMWAAGBLOG.BLOGSPOT.COM|BY TIM WAAG
  • Sally - Tim, is the 30 small cabin limit due to money and resource constraints?
  • Tim Waag Not that I know of. It's just their plan. Once the first "Village" is established, they hope to create more of them.
  • Sally - That's what I was hoping. So it's like a test bed, so to speak. You'll keep us posted on the status of the place I hope.
  • Tim Waag Yep. Just one model for the solution to affordable housing. One of many. A few more (from my blog post on the topic): Other forms of affordable housing possibilities (besides Tiny Home Villages such as Hope's Village) include (in no particular order):...See More
  • Sally - Yeah, I read that in your article. Affordable housing was what got Daniel and I through the tough times in the form of a couple of trailer parks. They were both fantastic. It's sad that they are getting closed down around here. We were able to make a small investment in the trailer on the lot too.
  • Tim Waag The trend is towards Trailer parks getting closed down around here also - the land is too valuable. Certainly, none being built, even though we have the land to do so.
  • Sally - Yes. In the SoCal area here, there was a guy who wanted to close down a mobile home/trailer park but had to provide new housing for the residents before the closure. So what he did to try to skirt that law is he let the trailer park go to pot and soo...See More
  • Sally - BTW, thanks for the greatly informative blog!

                          Click Here to go back to "Tim Waag Blog" Home Page!

OBAMACARE PART III: Still Getting Scr*wed!

*****3/28/2015 Update: The Obamacare "Cadillac Tax" is coming in 2018, but employers are worrying about it now, and so are we.  Based on our trajectory of every-increasing health care premiums, we will be subject to the 40% "excise tax" on our health care premiums as well by 2018. Isn't that swell. Read more at CNBC by clicking here. For those too lazy to click the link, here are some relevant highlights from the CNBC article (in blue):

Beginning in 2018, companies will have to pay Uncle Sam an excise tax of 40% on every dollar spent annually on health plan premiums in excess of $10,200 for individuals and $27,500 for families. In 2018, the ... tax is projected to bring in $5 billion ... That amount is expected to double in 2019, and increase ... to as high as $30 billion in ... 2024. The tax will offset federal subsidies ... for ... Obamacare health insurance plans ...

Nearly 3 out of 4 companies polled in a new survey ... said they're either "somewhat" or "very" concerned they will get whacked with that hefty tax targeted at high-cost health plans, either because of what those plans already cost or where they are headedBased on the definition today, and based on the trajectory most employers are on, sooner or later everybody is going to pay.

...the tax is indexed to roughly the general rate of inflation—which ... is worrisome because health-care costs for years have easily outpaced the overall consumer price index. Companies polled ... expect their health-care costs for active employees to rise by an average of 4 percent in 2015 if they make changes to the design of their plans ... without making such changes, those costs are expected to rise an average of 5.2 percent. The latest reading of the consumer price index ... shows ... increases of 2 percent over the past 12 months before seasonal adjustments, according to the U.S. Bureau of Labor Statistics.

In other words, medical expenses are rising at 2.5 times the rate of inflation, and by 2018, we (and many like us) will be paying the 40% excise tax on top of the crummy overpriced medical plan from Blue Shield that we are already paying. Right now we are paying a premium of $21,000 per year for a plan with a $2,000 per person deductible and a maximum out of pocket of $6,000. That could easily rise from in 2018 to the level of $27,500 where the 40% tax kicks in. Let's do some math:


2014 Insurance Premium: $21,000

2015 +5.2% = $22,092
2016 +5.2% = $23,240
2017 +5.2% = $24,449
2018 +5.2% = $25,720 (okay, it's not quite at $27,500, but close)
2018 + 40% excise tax = $36,008

In the above calculations, the odds that our premium increases will "only" be 5.2% are ludicrous, as ours have been rising recently at about 20% per year or so. Assuming that we pay our full out of pocket costs (like we will be doing this year in 2015), that adds another $6,000, plus prescription drugs at about $1,000 per year, gets us to $43,000 per year in 2018, using round numbers.

Paying $43,000 per year for Health Insurance Premiums and out of pocket expenses is like buying a new luxury car every year, or 2 brand new mid-size sedans (like 2 new Honda Accords) EVERY YEAR. At this rate, we can never retire because we cannot figure out how to pay for medical care.

The only possible way that we would be saved from this excise tax of 40% is if Hillary gets elected President after Obama. Why? Well, because the excise tax will hit the progressives beloved union workers the hardest, and we can't have that. Plus, with Obama's precedent setting administrative changes to ObamaCare, Hillary too would have her "phone and her pen" and give a gift to union workers of repealing the "Cadillac Tax of 2018" without any say from the Congress or the people.

*****2/7/2015 Update: ObamaCare and the insurance industry is totally screwing over people like us who buy small business health insurance plans. We normally never share private personal information like this on the internet, but it has gotten so bad that we no longer care who knows who screwed over we are. 

Here are some recent numbers for us:
- Blue Shield PPO 2000 plan: 12 months insurance premium $20,721
- Tim and Sue made 10 doctor visits total between the 2 of us for the year
- Blue Shield insurance paid a total of $746 for all 10 doctor visits
- We paid $2,460 for all 10 doctor visits

Totals for entire year:
- we paid $23,181 for crappy health insurance that hardly covers anything
- Blue Shield shelled out $746, allowing them to net $22,435 from us: wonderful
- Thanks, Obama!

For this year, we have the same cr*ppy plan as we did previously. We changed health insurance brokers, hoping that they could find us something better. Nope.  Wish we had the option for a self-insured cash plan (i.e, you go without insurance and pay all expenses in cash to the doctor), except that ObamaCare does not allow it - you have to pay the "penalty tax" if you self-insure. This s*cks totally.

Normally, we never share such personal information, except this blows so bad, that I feel compelled to put it out there. Don't get me wrong: we are grateful to be able to afford to overpay for health insurance in order to subsidize ObamaCare plans. However, it means we will never be able to retire until Medicare health insurance kicks in for us far down the road. Hey, we don't mind working, it's just that we've been working for 40 years and want to do something else.

Before ObamaCare, we used to pay less for better health care plans. Paying for health insurance with ObamaCare is equivalent to making a monthly 30 year mortgage at 4% on $400,000 forever (yep, payment on a $400,000 loan for 30 years at 4% is roughly $1,900 per month). In fact, its worse, because it only keeps going up, unlike a fixed rate mortgage. Sad.

This sucks so bad that I shall not adorn this bland text-only post with a beautiful photo.