It's a Start? Maybe?

by Dollars and Sense

This is nothing more than a gimmick in a market that lost $2 trillion or something like that in 2008 alone. And it's ironic that the piece comes out on the day the administration seems to be caving in on the only worthwhile part (not very worthwhile at that, compared to single-payer) of the healthcare reform bill--the public option. But there it is. Noteworthy of the diminishing vision of "public servants" in this age of "change we can believe in" is Rep. Frank's remark to the effect that simply having a home is a dream these days. From The 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.

Read the rest of the article

Labels: Barack Obama, barney frank, housing market, hud, renting

 

Please consider donating to Dollars & Sense and/or subscribing to the magazine (both print and e-subscriptions now available!).
8/16/2009 03:14:00 PM