President shifts focus to renting, not owning

[ensho]

http://www.boston.com/news/nation/washington/articles/2009/08/16/president_shifts_focus_to_renting_not_owning/


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.

-snip-

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.

The funds for new units will be available under competitive grants, and officials in Massachusetts said they will be among the states aggressively competing for the money.

-snip tell of who is against it-
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[rocktivity]

1. Works for me.

Especially if our economy is going to evolve into one consisting of the dirt poor and filthy rich.

:headbang:
rocktivity

[GreenArrow]

2. Abandoning the "ownership society"?

On the contrary, this step is essential to ensuring that anything and everything worth owning will be owned by the fewest people possible.

[high density]

8. Renting makes sense for many people

That seems especially true in a job market like this one where somebody may have to be open to relocating to get a decent position. Bush's "ownership society" put people into houses that they couldn't afford. The banks got rich with the business, and then we made them richer when it all came crashing down.

[BlooInBloo]

13. Abandoning the "foreclosure society"?

I corrected your typo. You're welcome.

[Cha]

3. Fucking bushcheney owns this economy and the WAR

on Iraq and all the rape of our blood and treasure.

President Obama and Team have come in to try to fix the bushcheney FUBAR.

[Hello_Kitty]

4. They also need to repurpose those empty foreclosed McMansions

You could easily fit 2 or 3 apartments into one of them, with a bit of remodeling.

[Arkana]

10. Exactly. Turn 'em into condos or something.

[kiva]

5. I agree that not everyone can, should, or wants to own a home.

The bursting bubble of real estate should be proof that home ownership isn't a guaranteed way to create national wealth and has instead done much to decease the wealth of the millions who are now upside down on their mortgages. For people who move frequently, either because of jobs or simply because they like to experience new places, it's much simpler to rent than to buy and sell houses in fluctuating markets. Not everyone wants to spend the time and money needed to maintain a home. This funding, as well as strengthening laws that protect renters, is a much more effective way to provide housing.

[tblue37]

6. Furthermore, less expensive rental units will get homeless

working families out of shelters and off the streets and into decent housing, even though they are not now in a position to buy a home and are unlikely to be in the near future.

[Laelth]

7. Good plan.

He needs to take the same tack regarding health insurance.

Forcing people to buy insurance is no more the solution to a failed health care system than forcing people to buy houses is the solution to homelessness.

:dem:

-Laelth

[butterfly77]

14. Wrong.,,

[Faryn Balyncd]

9. I thought this must be from The Onion, and about health "reform"

[Igel]

11. At the same time, it's a problem.

One of the big differences between whites and some minorities is the amount of accrued wealth their families have. It persistently shows up in various measures of equality--the average white family has X thousands of dollars more in assets than the average black family.

One of the reasons for that is house ownership. It's one reason people in the '90s were screaming themselves blue in the face about redlining, and why the "ownership" society rhetoric sounded so good. Granted, if you use your house like an ATM machine, always sucking out any equity you have in it, you lose the advantage. Moreover, the discrepancy arose when housing prices were more stable (and the discrepancy grew and was more often cited because of rapidly increasing house prices).

[butterfly77]

12. Finally, a President who can see..

what is really going on and what is the problem in this country.

[grasswire]

15. maybe victims of greedy landlords can get some help

There are many thousands of renters who have been thrown from their homes because the landlords defaulted on mortgages and pocketed the rent. Perhaps some assistance will come their way. All they wanted to do was stay in the home they had been renting. Make a way, Obama. Make a way.