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$4.25B Pumped Into Subsidized Rentals

From the bought and rented Boston Globe:

President shifts focus to renting, not owning

Using $4.25b to build affordable housing

By Joseph Williams, Globe Staff  |  August 16, 2009

WASHINGTON – The Obama administration, in a major shift on housing policy, is abandoning George W. Bush’s vision of creating an “ownership society’’ and instead plans to pump $4.25 billion of economic stimulus money into creating tens of thousands of federally subsidized rental units in American cities.

The idea is to pay for the construction of low-rise rental apartment buildings and town houses, as well as the purchase of foreclosed homes that can be refurbished and rented to low- and moderate-income families at affordable rates.

Analysts say the approach takes a wrecking ball to Bush’s heavy emphasis on encouraging homeownership as a way to create national wealth and provide upward mobility for low- and working-class families, especially minorities. Housing and Urban Development Secretary Shaun Donovan’s recalibration of federal housing policy, they said, shows that the Obama White House has acknowledged that not everyone can or should own a home.

In addition to an ideological shift, the move is a practical response to skyrocketing foreclosure rates, tight credit, and the economic crisis.

“I’ve always said the American dream should be a home – not homeownership,’’ said Representative Barney Frank, chairman of the House Financial Services Committee and one of the earliest critics of the Bush administration’s push to put mortgages in the hands of low- and moderate-income people

The $4.25 billion set aside for the creation of rental housing will come from $14 billion that HUD has received from the federal economic stimulus package. Another $4 billion of the money will be used to fix up the nation’s existing public housing stock of 1.2 million units…

Bush made homeownership a signature issue of his tenure.

In remarks before a panel discussion on promoting minority homeownership in 2002, Bush said America is “a nation of owners. Owning something is freedom, as far as I’m concerned.’’

But that vision disappeared over the last two years as the housing market plunged, leaving homeowners struggling under mortgages they could no longer afford for a home that was no longer worth what they paid.

As mortgage defaults piled up, banks that made the risky loans imploded, helping trigger the global financial crisis.

“This notion that a home was your source of wealth was a recent one,’’ Frank said. “People thought that prices would go up, and up, and up, and up.’’

Frank said he never bought the idea that Americans could keep borrowing to support higher and higher home prices.

“My answer was, I wish I could eat more and not gain weight,’’ he said.

Doesn’t this article give the impression that the push to give minorities and poor people greater access to owning their own homes started with the last administration?

And isn’t it odd to see Barney Frank cited in such an effort?

Why would our watchdog media seek to give such a fallacious impression to its readers?

It’s almost as if they are trying to re-write history for some reason.

The government can tell people how to live if they pay for their housing, whether through mortgage assistance or rental assistance.

So why not have such a government run program for renters?

This article was posted by Steve on Sunday, August 16th, 2009. Comments are currently closed.

19 Responses to “$4.25B Pumped Into Subsidized Rentals”

  1. retire05 says:

    So the new Obama policy is: you lose (as in your home) and minorities win (as in now being able to live in your home for 1/3 of the house payment which will be picked up by taxpayers).

    So now that the Obama administration has taken ownership of banks, auto companies it is now going to go into the real estate business? Is there any industry that Obama is not willing to take over?

    And just what does the Obama administration think will happen to all those homes that they are going to buy or build? Every housing project in America was once new, modern and clean. How long does it take before they are run down and look like every housing project in America? People don’t take care of what they don’t have to pay for. Just ask any parent who gave their kid a car.

    And once again, we have taxpayers assuming all the responsibility for providing for the “poor” while the “poor” have absolutely no responsibility to those picking up the tab. Hell, you can’t make people in public housing even sweep their door steps if they don’t want to.

    So Bill the Carpenter, who lost his job to an illegal, and has now lost his home, will see Minny the Moocher living in what was once his dream home.

    Marx would be so proud.

    • Helena says:

      It smacks of Zimbabwe, doesn’t it? Where the govt seizes private property on whisper-thin premises and hands them over to Mugabe’s family, friends and supporters. And no – I don’t believe there is ANY industry Zero doesn’t feel perfectly within his rights about “nationalizing – i.e. – grabbing.” And his party is behind him all the way.

    • Colonel1961 says:

      Zimbabwe is the perfect analog. Although I doubt the dems had the vision to plan such a twisted two-fer, the transition from homeowners to the gubmint-subsidized renter-cum-moocher crowd is obvious…

      And as renters, don’t they get ‘free’ major maintenance (e.g., roofs, water heaters) unlike real homeowners?


    • Liberals Demise says:

      My money is on Barrys’ illegal aunt getting out of the crime ridden projects and living the dream at taxpayers expense in a plush Gated neighborhood’ where she is a minority again!

  2. mrbeverage says:

    i wonder , since there are strings attached to all government money, will one be allowed to smoke in his rented home if he accepts the subsidy?

  3. dulcimergrl says:

    – ” “I’ve always said the American dream should be a home – not homeownership,’’ said Representative Barney Frank, chairman of the House Financial Services Committee and one of the earliest critics of the Bush administration’s push to put mortgages in the hands of low- and moderate-income people.”

    This has got to be the biggest lie I’ve heard from this administration in some time, and I’ve heard some whoppers! Does anyone have a link to an actual quote by Bahnee Fwank back in the day when he was pushing cheap mortgages? This lying sack of you-know-what needs to be exposed for the fraud he is!

  4. proreason says:

    Now that they have bankrupted home owners, renters become a juicy target.

    When Fannie Rental Homes fails, the government can takeover another huge segment of the economy.

    Every program comes back to that, doesn’t it?

    But somehow, I feel the Commisars will continue to live quite well.

  5. mrbeverage says:

    here ya go! i believe the second one is the best.

    i just threw in the last one because of the hypocrisy of frank and democrats on passing bills without allowing amendments

  6. curvyred says:

    That has been tried and failed: what about all the towers of public housing?

    In the city where I grew up, when all the mills closed down the city (which has beautiful houses by the way) became overran with “section 8” housing voucher recipients now the town is total crap with shootings and direlicts everywhere.

    Fantastic idea – El Presidente and banking Queen – good job! Keep the entitlements coming.

  7. sheehanjihad says:

    Barney Frank is a fat pig liar. Not only a liar, but a bald faced miserable excuse for a human being liar. Outright liar el biggo grande liar! That son of a b*itch pushed for every last citizen’s “right” to OWN a home, and thus his back door (pun intended) effort to make that happen, even though it led to the horrible economic break down due directly to his inability to see past his fat effing face. He is a liar. Oh, by the way, he isnt telling the truth either. Take heed at how easily he changes from one position to the other (pun intended) to better stick it to the citizens while blaming it on the Bush administration. HEY BARNEY!!! You are a fat lying bastard! Ok, somebody, quick….flag@whitehouse.gov needs my post!! The only thing “fishy” about it is just how bad Frank smells after he is done drilling the public…..hopefully, his constituents may actually have to fight to keep him in office next time….oh, yeah, sorry…I forgot. He’s lying too. A liar. A freakin con man dressed as an elected representative. Did I say he was lying? yeah…but he’s still a cheap self centered miserable chunk of liquid hippo poop, but even the poop cant lie as good as he just did. Remind me to not like him in the morning, could you? Effing tubby jerk.

    • dulcimergrl says:

      SJ, please don’t hold back! Tell us how you REALLY feel! ;-)

      And yeah, that Barney guy, he’s a liar. Probably the biggest one I’ve ever seen, next to Obambi.

    • proreason says:

      Drooling Barney is taking out his self-loathing (justified, in any opinion) on the country.

      If he isn’t stopped, it will only get much worse, because with a pervert of that magnitude, there is no limit to what he is willing to do.

      He should marry Rosey O’Donnel, so they can torment each other rather than the country.

  8. BigOil says:

    Liberals once again recycling failed policies. Now we can look forward to low rise versions of Cabrini Green.

  9. Rusty Shackleford says:

    Insanity is doing the same thing, the same way, over and over, expecting different results.

  10. Confucius says:

    Just what every neighborhood needs. A government-owned home filled with welfare transients.

    That’ll help the housing market. (Not.)

  11. xdannyh says:

    Coming soon to your neighborhood and school district, Instant ghetto, provided by Uncle Sham. and all the bureaucratic organization to implement it. Isn’t it great what you can do with borrowed money while the great unwashed sleeps on? The only way to control government is to deny them money. I wonder if Singapore can absorb not only Jimmy Rogers but about 150 million fleeing US citizens?

  12. catie says:

    We have a foreclosed house that has been empty for about 5 months now in our cul de sac. Boy, it’s a thrilling idea to have these “subsidized rental losers” soon moving in./sarc off
    I’m sick of these losers who sit on their asses, eat mac and cheese all day, drink beer, smoke dope, make babies they could care less about and feel that they should be taken care of. Where can we move though? I mean really, what is there for us who work hard, pay our taxes and do what is right. Nothing. The Marxist Obama and his liberal “friends” have ruined this country. It’s been going downhill though since FDR.

    • proreason says:

      catie, their version of a fair country is to bring everybody down to the level of the mac and cheese eaters. That’s what the Rent Houses for Deadbeats program is all about

      When that happens, society will be perfect because the only gaps will be the yawning chasm between the kingly commissars and their dependents (everybody else).

      “Perfect” means “permanent”.

  13. Steve says:

    And of course the simple truth is that none of this is new.

    It goes on in a hundred other guises, even in the name of ‘stimulus.’

    From the Associated Press:

    NYC gets stimulus funds for housing

    August 17, 2009 By The Associated Press

    NEW YORK (AP) — Four new housing developments are going up in New York City, with the help of federal stimulus money.

    Gov. David Paterson and Mayor Michael Bloomberg are announcing that three will be in Harlem and one in the East New York neighborhood of Brooklyn.

    The $60 million in stimulus funding is helping jump-start the project, which will create 739 units of affordable housing.

    The federal government awarded $2.25 billion in housing funding nationwide. The state received $250 million, and New York City got $85 million.

    Officials were making the announcement at one of the sites Monday in Harlem. Those units are scheduled to be complete in 2011. They will be available to households with incomes up to $46,080 for a family of four.


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