Heather Jenson of Monticello came to the podium Sunday to describe how her family's expenses mounted after her husband's car accident in 2002, followed by bankruptcy and finally the loss of their house.

Then came Sharon Glover of Golden Valley, who described abusive treatment by a lending company because she had to wait for her Social Security check before making her monthly mortgage payment.

Both women told about 75 people at a housing forum in Minnetonka that their problems grew worse when they refinanced their houses and their monthly payments jumped hundreds of dollars.

"Minnesota's struggle in the housing crisis is growing quickly," said Matt Entenza, board chairman of Minnesota 2020, a public policy think tank that cosponsored the forum with the Minnesota Housing Partnership. "We have a real and serious issue."

Speakers talked about neighborhoods losing their identities as longtime residents lose their houses and move away, about unscrupulous mortgage lenders targeting communities of color, about rising public costs as city crews try to reckon with vacant property, and about shifting economics in the value of land and buildings.

"The reality is, the housing crisis is tearing apart communities, it's tearing apart lives," Entenza said.

Minnesota's housing market once was "a great economic engine" but indicators began to show that too many people were spending more than half of their income for housing at the expense of food, medications and other necessities, said Chip Halbach, executive director of Minnesota Housing Partnership.

And Pam Perri Weaver, executive vice president at Builders Association of Minnesota, said that downturns in the value of houses in the metro area represent "corrections" in the market. "Builders were building like crazy, homeowners were buying like crazy, everyone was happy," she said.

Sheri Pugh, who represents Northside Residents Redevelopment Council, said that "boutique mortgage products" targeted families of color. "How do we rebuild these communities?" she asked. "What happens to families who have lost their homes?"

Kevin Giles • 651-298-1554