Monday, March 26, 2007

3625

Less Federal money for housing assistance

That's the story today in the Columbus Dispatch. Licking, Fairfield, and Pickaway Counties are closing their Section 8 housing lists. The paper says the federal funding has dropped. I'm guessing there's more to this story than meets the eye. So I took a look at the law at the HUD site. The formula for FMR (Fair Market Rents) was changed during the Clinton administration--it was too complex for anyone but a government bureaucrat to understand, like what percentage of the people live in a census tract, but I was able to read the date. However, I'm just guessing it has more than a bit to do with what's happening to real estate in those counties. During the last real estate boom, they were hot, hot, hot. Unbelieveable housing development going on with easy access to Columbus via free-ways. I'm thinking some pretty cheap houses and acreage was bought up by developers, and now low income owner occupied housing has been replaced with middle income and upper middle income neighborhoods. Every exit of the free-way has many restaurants, Krogers, Target, Wal-Mart, auto parts, video stores, etc. Every community is trying to pass bond issues for new schools. All these areas need infrastructure--roads, police, fire, water systems, parks, etc. Are rents higher than before? You betcha! It's called progress.

The federal government got in the housing assistance business during the Depression. People were desperate. My parents took in borders to make ends meet and they had jobs. What was unemployment then? 20-30%? Do you think the Congress of the 1930s intended to make this assistance permanent? (Actually, since gov't programs don't ever go away or get smaller, they probably did.) Today, you feel you are borderline poor if you don't have cable, a cell phone, 2 TVs and 2 cars. Maybe sending tax money to Washington so they can send a smidgen back for housing vouchers to live in wealthy counties with an unemployment rate of about 4.5% isn't such a terrific idea.

Can I hear an Amen?

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