Okay, I’ve got a question…..
by Tom on December 22, 2009
in Market Musings
The Treasury just spent $4 Billion in cash to give to State Housing agencies to develop new affordable housing. This makes me wonder…..
- Haven’t prices fallen in almost every area of the country (though some more than others?)
- Don’t almost all areas of the country (though some more than others), have too much inventory?
- Didn’t we get into this mess, in part, by encouraging too many people who shouldn’t be homeowners to buy homes?
Things that make you go “Hmmm…..”
Tom Vanderwell
The amount of American Recovery and Reinvestment Act funds distributed to state agencies to promote affordable housing is running at nearly $4.1bn after the latest round of payouts, the Treasury Department said.Treasury launched the program in May to provide cash payments in lieu of tax credits to state housing agencies to spend on the development or renovation of qualified affordable housing. The state agencies then distribute the funds to developers through a competitive bidding process.
“By uniting with state housing authorities, Treasury has made available more than $4bn to jump start housing development in communities around the country,” said Treasury deputy secretary Neal Wolin. “That investment has already resulted in hundreds of new construction jobs and new housing units for families in need of affordable alternatives.”
Tim–
In Ft Collins CO-pop. 125,000. Based on our Affordable Housing we are short approximately 5000 units in our County–that could be used for rental or homeownership. Typical needed subsidy is 7-30,000 per unit. SO, I’d say no we don’t have enough, but we need to do it the right way–it should be geared towards rental and bleow 50% AMI.