[Rhodes22-list] Political - Housing Market Meltdown

[Brad Haslett]

Rob,

Expanding housing for low income Americans is a tough nut to crack.
I've been studying that issue for three years for the Mississippi Gulf
Coast and haven't touched a project or found a solution yet.  There's
a couple of "free" interest programs (first 5 years) out there for
builders but the federal oversight and restrictions are so onerous
that those funds are still on the shelf waiting for a builder with
bigger 'nads' to tackle. If (and that's a big if) you could build for
$70 a square foot, keep your lot costs under $20,000, and accept a
lower than standard profit margin, you might be able to build
something in the 1200-1400 square foot range at around $130,000.
Depending on how you define "low income", even that is out of range
for many people. Section 8 housing (vouchers) has moved the crime
associated with housing projects in to stable neighborhoods. Here's an
article about the experience in Memphis.

http://www.theatlantic.com/doc/200807/memphis-crime

I don't know what the solution is, if you figure it out, let me know
first.  Conning people into buying houses with the idea that increased
market values will save them sure as hell didn't work out.

Brad



On Fri, Sep 26, 2008 at 9:49 AM, Lowe, Rob <rlowe at vt.edu> wrote:
> Brad,
> Thanks for the video.  Agreed, a bit partisan, but it does tell an
> interesting story.  Don't know that I've ever seen the situation laid
> out quite like this before.  And Obama has pledge to expand housing for
> low income American's.  Wonder if "the other side" told their side of
> the story what it would look like?
>
> As always, thanks for making me think!  Damn you! - rob
>
>
> -----Original Message-----
> From: rhodes22-list-bounces at rhodes22.org
> [mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of Brad Haslett
> Sent: Friday, September 26, 2008 10:17 AM
> To: The Rhodes 22 Email List
> Subject: [Rhodes22-list] Political - Housing Market Meltdown
>
> OK, admittedly this is partisan, but it is accurate - as the video
> says several times, Google it!  This is a pretty good 10 minute
> summation of how the housing market got out of whack.  Nothing new
> here if you've been paying attention.  What's the ultimate solution?
> I don't know and neither does the Gang of 535 in DC.  That's the scary
> part!
>
> http://www.youtube.com/watch?v=H5tZc8oH--o
>
> Brad
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