Housing program doesn't work so give them even more money

USAToday reported in October on a money black hole (under Bush and predecessors) so Obama has decided it just needs more money

Federal funding for a housing counseling program carried out by local non-profit groups such as ACORN has more than tripled since 2002, even though it has been criticized by government auditors for failing to show results.

President Obama's budget calls for a 54% increase next year — $100 million in all — for the program, which helps people buy or refinance a home, prevent a foreclosure or find rental housing. The Senate agreed, while the House of Representatives suggested $70 million; final negotiations over the bill are pending.

The Department of Housing and Urban Development (HUD) has been unable to provide much proof the program works, according to government reports, despite an increase in funding from $20 million in 2002 to $65 million last year." Link for details on the failures.

It's very hard to ever defund a "poverty" program, and even harder if it is for the "working family" or "low to moderate income" even if the program doesn't work. For instance, after forty plus years and billions of dollars for Head Start, studies show after a year or two in school, most gains are lost due to the children's home environment. It would be political death to NOT vote for the Head Start fantasy. Same with the "right to home ownership" dream which both parties claim and Bush really loved. At its worst it did nothing more than push already economically fragile people into debt beyond their wildest dreams; and at best, it funneled them into foreclosure workshops and refinancing failures. Either way, the agencies, groups, churches and nonprofits keep their own staff employed.

Yesterday it was announced that NeighborWorks America (created by Congress) received almost $5 million from HUD to provide training for housing counselors through its various agencies, so it would seem the first payouts are forthcoming.

"Today NeighborWorks America announced that it received $4,860,802 in funding from the U.S. Department of Housing and Urban Development, which will support training and certification opportunities for thousands of counselors from HUD-approved nonprofit counseling agencies, as well as nonprofit housing counseling at local NeighborWorks organizations. Link to details

It's a revolving door, but it keeps the staff of foundations, non-profits, churches, and government offices employed. With unemployment at the highest levels since Jimmy Carter days, now is hardly the time to hand out tax dollars to training classes for luring people into mortgages.

A Tangled Web of Housing Grants

Since 1978 "NeighborWorks has been helping create opportunities for homeownership through NeighborWorks® America, local NeighborWorks organizations and Neighborhood Housing Services of America." Considering the amount of money they've been pulling down, I'm surprised anyone is left to recruit for the program! Just teasing. The money goes to fund their offices and salaries just as in most government programs.

Why, just last year NeighborWorks received a big chunk ($180 million) of the $360 million funds appropriated by Congress for 2008 to increase the availability of foreclosure counseling services across the country, and they're getting another $180 million from the newest bailout. Grants are being made to fund foreclosure counseling and legal assistance to homeowners at risk of foreclosure to housing counseling intermediaries approved by the U.S. Department of Housing and Urban Development. Of course, if you sign up to take one of their classes so you can counsel people in foreclosure who were probably counseled by one of NeighborWorks home ownership counselors, you'll have to pay over $1,000 to take the class. It's only $610 to learn how to prequalify potential buyers. Who knows where the $360 million goes--the courses certainly aren't free--maybe to pay your salary after you become a counselor?

And look who helps NeighborWorks--research and input from ACORN, and La Raza, the militant organization that wants to return our southwestern states to Mexico is on their Advisory Board. Not that advocacy groups like NeighborWorks much. Seems to be a parting of the ways when slicing and dicing the poorer communities.

And you should see the career opportunities in this organization. Big time. I don't know how many poor get into homes, but there are bunches of high level administrative jobs for bureaucrats like DIRECTOR OF FINANCE & ADMINISTRATION, Senior Corporate Partnership Development Manager, and PRESIDENT/CEO! And you can work in the nice trendy suburbs of DC (except for that one with the Navajos--you need to go to NM and have a brokers license).