'We urge more housing authorities to pilot the RAD model. State housing finance agencies – the bodies that allocate Low-Income Housing Tax Credits, tax-exempt bonds and other public subsidies – can help by working with public housing authorities and communities to coordinate all available financing options. And developers can help housing authorizes navigate the financing and redevelopment process'.
Inclusionary housing fund running on empty, advisory board told
Danielle Sweeney Oct 22, 2014 at 6:10 pm Baltimore Brew
Baltimore’s $2 million affordable housing program has dwindled to just $70,000. The advisory panel chair says the law doesn’t work. As a stop-gap measure, the Board of Estimates today transferred funds to the cash-strapped program.
I want to look at Rule of Law locally and then look at how Rule of Law in the US ties to International Law tomorrow. Looking again at housing and equal protection we know that the majority of people victimized by the subprime loan fraud were people of color and seniors and these are the people now hitting public housing and looking for low-income housing subsidy. This is happening at the same time neo-liberals are working with Republicans to cut spending in housing through a HUD that develops urban areas for affluent and corporations minus the low income housing. So, the working and middle-class taxes are now going to build downtown corporate offices and Johns Hopkins global campus while the poor are being pushed into very predatory housing situations with the end being debtors prisons and working for $2 an hour. That is slightly better than China's $2 dollars a day----but give Johns Hopkins a chance and it will become $2 a day. Remember who these people are left without homes----the economic crash from corporate fraud and the FED policy goal of creating a stagnant domestic economy with 'INNOVATIVE FED POLICY' that tripled the rich's wealth while further impoverishing citizens who could not get jobs with the stagnant economy. These were the former middle-class that were targeted with long-term unemployment to make them use all of their wealth assets as they became impoverished. It is amazing that this was all planned and executed with the knowledge that Rule of Law would be suspended and corporations left to loot the US Treasury and people's pockets at will with no public justice.
Just to remind people that this collapse is coming----the timing changes because the FED delays ending QE because of this fear but the FED is running out of choices:
The On-Going Collapse Of The U.S. Treasury Bond Market Is A Disaster In The Making
September 8, 2013
Source: Lee Rogers
Unfortunately for the Fed they are reaching a point where even endless QE policies are going to be entirely ineffective at controlling the bond market. At some point these policies will result in so much inflation that it won't matter how many bonds they purchase. When this happens there will be no real demand for U.S. Dollars and even less demand for U.S. government debt because inflation will have run out of control. As stated before, nobody will want to buy a debt instrument that is going to pay them interest back in a currency whose future purchasing power is in question. We are already starting to see this with the increased demand for physical gold and silver. This represents a growing number of people who are losing faith in the long term stability of the U.S. Dollar and are converting out of Dollars and into more tangible assets.
Another aspect to this collapsing bond market is the fact that interest rates for home mortgages generally correlate to the movement of Treasury yields. As the rates on these bonds move up so too will mortgage interest rates. In fact we have already started to see this happen over the past 3 months as the rates for both 15 year and 30 year home loans have risen sharply. These higher interest rates will reduce the demand for home loans resulting in less demand for homes which will cause home prices to move sharply lower. This is just one of many negative economic consequences that will undoubtedly result from a collapsing bond market.
Nevertheless, Stockman has been one of the early financial minds to outline the dangers of the bond bubble. Stockman, the bestselling author of “The Great Deformation,” has previously stated on numerous occasions that much of the central bankers today are “bubble-blind,” probably since their cohorts – speculators and bond traders – have established the “greatest bond bubble in history.”
“Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere,” Stockman told CNBC late last year. “It’s only a question of time before the central banks lose control, and a panic sets in when people realize that these values are massively overstated.”
I attended a Baltimore HUD meeting of the board that is a perfect example of how these 'INNOVATIONS' -----PUBLIC MALFEASANCE---- is ongoing. They will not stop until all public wealth has been funneled to the top. This is what Reagan/Clinton neo-liberals started and it is what Obama and neo-liberals hope Hillary will finish.....US PERESTROIKA OF PUBLIC WEALTH TO CREATE US OLIGARCHS and it is all illegal.
When global corporations call something 'INNOVATIVE' they mean that it maximizes corporate profit by using public revenue and cheap labor to pay for all costs of running the corporation all going to profits. This is why US corporations have never been more profitable and rich....'INNOVATION'---public malfeasance tied to corporate fraud. The Baltimore HUD Board were proud that Baltimore was ranked #! in public housing INNOVATION because of all of the corporate tax breaks, property tax breaks, employee tax breaks, and subsidized employee costs all while getting greening tax credits for what most say does nothing green, and Federal HUD sending all kinds of low-income tax credits to private developers to renovate what will simply revert to these investor's hands. These HUD public housing buildings are on what will become very rich real estate and this is the 'INNOVATION' of transfer of public land to selected investors====Johns Hopkins et al. So, with all these tax subsidies and FED funds and state grants come as well all kinds of CREDIT BOND DEBT.
BALTIMORE CITY HALL HAS PLACED DOZENS OF PUBLIC HOUSING PROPERTY INTO THESE 'INNOVATIVE' FINANCIAL INSTRUMENTS INCLUDING CREDIT BONDS JUST AS THEY DID OUR PUBLIC SCHOOLS IN TIME FOR THE BOND MARKET CRASH COMING IN 2015.....JUST BEFORE THE 2016 ELECTIONS.
Whoops! they will say----didn't see that coming and all those projects tied to credit bond leverage transfers through default to these private investors who by now are covered with Credit Default Swap Insurance to protect them from losses. This is a plan folks tied with the subprime loan fraud and economic crash of 2008.
ALL OF THOSE PUBLIC HOUSING PROPERTIES ALONG WITH THE PUBLIC SCHOOLS ET AL WILL DEFAULT INTO THE HANDS OF THESE PRIVATE INVESTMENT FIRMS----WITH HOPKINS LEADING THE PACK.
What happens when the economic crash worse than 2008 hits =====public housing tenants are thrown out with privatization and there will be no HUD funds to subside housing for them and developers will get for pennies on the dollar prime public real estate and contracts to pay no taxes 'forever'. School buildings privatized with be now owned by corporations and supported by them and not public funding.
THIS IS TOWARDS WHAT JOHNS HOPKINS IS MOVING BALTIMORE AND BALTIMORE DEVELOPMENT AND HOPKINS ARE CAPTURING ALL OF THE PRIME REAL ESTATE DOWNTOWN AS CITIZENS ARE BEING LIED, CHEATED, AND HAVING WEALTH STOLEN FROM UNDER THEM. THE POOR WILL REMAIN POOR AND THERE GOES THE AMERICAN MIDDLE-CLASS!
I reminded Graziano and Hopkin's HUD chairman that Baltimore is owed billions of dollars in subprime mortgage fraud from the same entities tied to these leverage bond deals. The city has accepted almost a trillion dollars in Enterprise Zone money over two decades all with the requirement of low-income housing-----Hopkins has an endowment of some billions of dollars that would repay these low-income funds funneled to their development projects for example.....so there is
TONS OF MONEY AVAILABLE FOR LOW-INCOME HOUSING AND THESE HIGH-RISES CAN BE REHABBED FOR PENNIES ON THE DOLLAR WHAT THESE PRIVATE FIRMS WILL COLLECT!
Baltimore Residents & Workers Voice Outrage Over Plans to Privatize Public Housing (1/2)
Public housing residents and workers say they will lose their jobs and homes when the city sells some of its public housing stock to private developers through the new Rental Assistance Demonstration (RAD) program
- October 3, 14
JAISAL NOOR, TRNN PRODUCER: Baltimore moves ahead with controversial plans to sell about 40 percent of the city's public housing to raise money for badly needed repairs. Over one hundred public housing residents, workers, and advocates gathered to speak out against the proposal.SHARON JONES, TENANT COUNCIL PRESIDENT, BEL-PARK TOWER: Like everyone said, we want to be able to live in the places. We don't want to [incompr.], we don't want to be stepped on, we don't want to be told that everything is going to be alright and the whole time they are running over us over and over again in these large buses, running us out.While local entities such as the Housing Authority of Baltimore City own public housing, the federal government provides capital and maintenance funds. Cities cross the country are grappling with dropping federal funding for public housing. We'll explore this important context in the second part of this story. The Department of Housing and Urban Development (HUD) puts the shortfall at $27 billion. Baltimore says it alone needs $800 million.Officials had been tight-lipped about the move until the Baltimore Brew broke the news the city plans to sell around 4,000 housing units to private developers through HUD's new Rental Assistance Demonstration (or RAD) program. The developers will help finance $300 million in repairs to the buildings. In exchange, they'll begin collecting rent and low-income housing tax credits.The city declined an interview request, but did provide The Real News with this video.
PAUL T. GRAZIANO, BALTIMORE HOUSING COMMISSIONER: The Rental Assistance Demonstration, otherwise known as RAD, will be a real shot in the arm and, as I've said, in some places a lifeline for our public housing communities through many, many neighborhoods in Baltimore City.
SHAUN DONOVAN, SECRETARY, U.S. DEPARTMENT OF HOUSING AND DEVELOPMENT (HUD):
RAD is a tool that can help all public housing access a whole different range of resources to do those repairs, to rebuild, and to provide better quality of life for millions of residents around the country. It's a huge opportunity, and we're seeing it right here in Baltimore.
NOOR: HUD Secretary Shaun Donovan also notes that Baltimore is a national leader by aggressively adopting RAD.
DONOVAN: I have real faith, with Baltimore pursuing one of the biggest, most ambitious comprehensive neighborhood revitalizations that we see around the country, using RAD as just one of many tools, we have real confidence that Baltimore can get it done.
NOOR: Back at the event at Red Emma's Bookstore Coffeehouse that brought public housing advocates together with union workers and residents, many said they were not comforted by city assurances that no one will be displaced and rents won't be increased by RAD.
UNIDENTIFIED: We're not against the organization taking over, but we would like to make sure that if they take over, they don't throw the seniors out, because if you're on fixed income, you can't afford to pay no gas [incompr.] no high rent. And [we need people] in our building [incompr.] [the way it is].
NOOR: Also speaking out against the plan was Jessica Lewis, a housing organizer who's been going building to building speaking with tenants.
JESSICA LEWIS, ORGANIZER, RIGHT TO HOUSING ALLIANCE: Well, we're finding that outside of the Resident Advisory Board, even in the Resident Advisory Board, residents aren't getting information about how the program works and what the impact is going to be. Most residents have no idea. They keep hearing about RAD, they keep hearing there's this RAD program that's going to happen, but they have no idea what's in it. They have not been asked to participate in the process of determining whether or not they want their buildings sold to private developers, and there's been no transparency in this process at all.Some also took issue with reports confirmed by TRN's interview with Councilman Bill Henry that the Baltimore City Council has no oversight in the city's RAD application.
BILL HENRY, BALTIMORE CITY COUNCILMAN: I think it's important to remember in this case that we're talking about the Housing Authority, which is not actually a city agency. It's a federal agency. Its catchment area of responsibility is Baltimore City, but they don't report to us. They are not subject to us in terms of legislative authority.
KAREN WABEKE, ATTORNEY, HOMELESS PERSONS REPRESENTATION PROJECT: Well, I think certainly the city council could weigh in if they had concerns about this program. There might be opportunities through the application process for the low-income housing tax credit for that perspective to come into play and other possibilities that we're still looking into.
NOOR: Some of the 200 public housing workers who could lose their jobs due to change in management also spoke out against the move.
PUBLIC HOUSING WORKER: --because I ain't going to lie. I like working for housing. I want to keep my job. Everybody, oh, I'm doing this and I'm doing that. Go ahead. I'm going to stick it out to the end. You don't know what's going to happen. But come on. Whoever or whatever going to take over, make sure y'all look out for us. Come on, don't do this to us. Let us keep our jobs. Please. I'm begging, 'cause it's hard out here. It is real hard out here. Be fair to us. Don't do this to us. And I'm sticking up for the building monitors.
NOOR: All of the objections could be moot, however, because, as Commissioner Graziano says, there may be no other way to raise capital for the badly needed repairs and renovations for public housing.
GARZIANO: There just really is no alternative. We can do the 200-year plan or we can do the two and a half year plan.
NOOR: But at the event, Lewis and others took aim at that assertion.
LEWIS: Well, I know that the people we are working with want to fight for more transformative solutions than just, you know, putting a Band-Aid on this program. The residents that we're working with in these buildings want something that's going to result in permanently affordable housing. They don't want a public good being turned over to private companies, because we know how private companies handle rental housing. So they're interested in fighting for things like community land trusts that would guarantee permanent affordability and some resident control of what happens to those buildings. And they're willing to fight for that. And then, at the same time, there have to be demands in there that if this program does go through, that the residents get to negotiate the leases, they get to be present at the negotiations on the contracts with the companies, that they get guarantees, that they get things in writing, that they get them in advance, and that they get to participate in the process of determining what those contracts might be.Opponents also agree that if they are to have any chance at slowing down or stopping the plans to sell public housing to developers, they will need a unified front and public support. The Real News will keep following this story. From Baltimore, this is Jaisal Noor.
Baltimore HUD has a chair who is Hopkins employee and Baltimore Development's Graziano is Hopkins so all these HUD funds are disappearing by the hundreds of millions-----a HUD employee said its heading to the CAYMAN ISLANDS and I have no trouble thinking that true. They used HUD funds to pay fraud and corruption lawsuits=====the agency is fused with fraud and corruption. Remember, if the people at the top are stealing billions of dollars each year they must allow the people administering the frauds have thousands and millions. People who say 'good for them' in getting rid of Baltimore's poor and working class----these contracts go on for decades and new residents will become the new prey and they won't be middle-class for long! IT WILL NOT STOP!
BALTIMORE HUD IS THE 'INNOVATIVE' URBAN DEVELOPMENT MODEL IN THE COUNTRY.....SEE HOW MARYLAND IS #1 IN EVERY MEASURE AND NOT REALLY IN ANY OF THEM!
The good news for the citizens of Baltimore whose taxes have soared to pay for all this funneling of money to the rich developers.....
THIS IS ALL PUBLIC MALFEASANCE AND CONTRACTS SIGNED NOT IN THE PUBLIC INTEREST CAN BE VACATED.
I'm hearing people thinking they may get jobs from this say---they are simply coming in and plopping down already made houses....well, a global corporation sold these to HUD with the taxpayer funds for creating jobs.
HUD Manufactured Homes
When today's buyers take possession of a newly purchased manufactured home they can be assured that it was built to a stringent set of national regulations that ensure the safety and construction of manufactured homes.
This is what happens with all Federal grants and State and local contract bidding----the money goes to a Washington beltway corporation that then subcontracts and the city contractors are all but out of business. We have pre-fab homes and a beltway partner privatizing public housing in Baltimore.
Keep in mind that the city had a great deal of small business displaced by what is the Inner Harbor----100,000 jobs lost and national chain restaurants and retail that fail to bring many people back because they have the same businesses in their own neck of the woods. The biggest industry downtown now-----global financial firms all involved in the massive frauds of last decade. The amount of taxpayer money sunk into a small portion of a downtown is amazing. You see below why Baltimore Public Housing deteriorated----
'I walked each block, making notes of the challenges — physical, financial and political. Here’s an example of what I saw: To produce the long public promenade, the plans feature in creating public access to the waterfront — and setting the stage for private investment (hopefully to follow), an expansive bulkhead was the first step. To finance it and the adjacent public park spaces, the city successfully applied (the first of many such applications) for urban renewal funds through the U.S. Department of Housing and Urban Development'.
I wanted to share the private and corporate non-profits being brought into these privatization schemes and note that these 'public housing' buildings have all the PAZZAZZ of high-end architectural design and all these buildings need is a face-lift. The funding for maintenance for public housing has been funneled elsewhere these few decades and the city officials have deliberately let these properties decline. As this article below shows all that is needed could be done with so little money as to allow for low-income funding of rehab houses all around the community.
ALL OF THIS PUBLIC MONEY IS ABOUT BUILDING THE INFRASTRUCTURE FOR HIGH-END REAL ESTATE WITH THE PROPERTY GOING TO THESE INVESTMENT FIRMS HEAVILY SUBSIDIZED WITH TAXPAYER MONEY.
Remember, we don't need these private developers----these buildings don't need these funds----and the citizens living there do not want to be displaced just as the communities around East Baltimore Development. Gentrification is fine but pay the public and the citizens involved what is needed and true-market value and stop using all of our tax base to do it!
These two journalists do a great job covering this story---RAD and look at the big picture and as they say----there is no plan or any public awareness of how these plans are made, what the goal will be, and where all the money goes. You cannot even get lists of people tied to these financial instruments on any of these properties and this is because the economic crash will move all this property to these people and lawsuits will fly. Baltimore makes it impossible to get any information and if it does----it comes when it is too late to stop it.
MIKE MCGUIRE, PRODUCER: Hello, and welcome to The Real News.
This is Mike McGuire in Baltimore.
Today we are joined by the Baltimore Brew, Which is an online publication focusing on Baltimore politics, culture. Joining us today is Fern Shen, who is the editor of the Baltimore Brew. She started her reporting with The Baltimore Evening Sun in the 1980s, then worked for The Washington Post for 17 years, where she was an award-winning writer covering Maryland politics. Fern founded the Brew in 2007. Also joining us here in the studio is Mark Reutter, who is the senior reporter for the Baltimore Brew. He also started his career at The Baltimore Evening Sun,
Not so long ago, you broke a story about RAD, which is the housing and urban development program that the Baltimore Housing Authority is starting that stands for rental assistance demonstration. It's an unusual name that really doesn't say anything. And in speaking with city officials, you found out that it means a whole lot. Well, what does it mean? The name doesn't suggest anything. The city officials often don't suggest anything. So what did you find?
MARK REUTTER, JOURNALIST, BALTIMORE BREW: Well, it's a demonstration program with really tremendous implications. The plan is to take around half of the city's public housing and privatize it, and to turn over the buildings, particularly the high-rise buildings, to private investors, who would then get all the many tax credits that are provided for low-income housing. And they would invest, under the theory of this (it hasn't been proven), and improve the conditions, physical conditions, modernize this housing, largely because Baltimore City (and some of the other cities that are participating) hasn't been able to do it on its own. But it has huge implications for labor. Many hundreds of Housing Authority workers will lose their jobs. And some may get them back working for the private investors. Who knows? It has lots of implications for the public housing people now, because they probably will be displaced for at least a short time, or they'll be hugely inconvenienced as these floors are rehabbed. And then the whole question of the selling of public assets and what this really means, whether a private investor would be more successful in the city, whether disinvestment would be the end-all of this scenario. So all of these we're trying to look at in the context of really not much information coming out by either the city, state, or federal government.
MCGUIRE: Do you have a sense of what progress they've made on the agreements? I know that--.
REUTTER: They rushed them forward. They rushed the agreements forward. Now it's going to be a long period as they select investors and these investment groups. So it's a little bit of hurry up and stop. Right now we're in sort of the stop phase.
MCGUIRE: You know, one thing that always comes up in Baltimore processes is public participation. And the Housing Authority has noted that they have enjoyed public participation in this, and a lot of residents say that they have not. Have you covered any of this? Have you been to any of the tenant meetings with--.
REUTTER: Fern should answer.FERN SHEN, JOURNALIST, BALTIMORE BREW: Well, first, I mean, the whole thing seems like a sort of a fait accompli--if not quite that, pretty close to it--when the public at large heard about it. I mean, the city and the Housing Authority really, I guess, were not ready to reveal the full plan, and we happened to hear about it early. So just from the beginning, the degree to which this had gone along through the pipeline quietly without public input was striking to me.
MCGUIRE: And this was indeed striking that after you did your reporting, there was a dramatic incident when you are on the Steiner show and Commissioner Graziano called in with some anger in his voice, saying that he wasn't ready to talk about it.
REUTTER: Right, right, after we had reported it. And Graziano then did begin talking about it and did provide the public and media with more information. And so we think that we served our role there. But, yes, there was a lot of problems with the Brew obtaining that information, and there are still some issues there.
MCGUIRE: And what's going on? And you had talked about the--in the positives of this, the possibility of investment in this, in these decrepit buildings, some of which are indeed decrepit, some that have been better kept up than others. So what's the argument in favor of privatization?
REUTTER: That the federal government now, due to cutbacks from Congress, does not have the money, the feds don't give the city enough money to maintain these buildings, although they give the city quite a bit of money, and somehow there'll be a magic bullet that these private investors, through use of these tax credits, will be able to--the city says Graziano says invest upwards to $300 million, which is quite a fantastic figure. But Fern did some reporting even before we did RAD on the conditions of some of the senior high-rise housing. And what she found was that for most residents, they don't need grand rehabilitations of these buildings. What they need is security, decent maintenance, that when a water faucet or toilet doesn't work, that it in a reasonable time period gets fixed. So what we're getting here, very similar to what we see in a lot of things in Baltimore, is these future grand plans while the daily maintenance of very important things for the citizens is poor.
SHEN: Yeah, is ignored. Yeah.
REUTTER: And is ignored.
SHEN: So he's talking about belt Bell Park Towers, which I'll quickly tell you is a senior public housing complex up near Pimlico. And, yeah, there were seniors outside protesting with their signs in the heat because the security there was terrible. There were drug dealers, you know, terrorizing them, writing graffiti, threatening graffiti in the elevators, mugging people in the hallways of this place.
MCGUIRE: And this is specifically seniors housing, Bell Park Towers?
SHEN: Yeah. Yeah. And it all goes back to some policy change some years ago from the federal level, whereby they blend in--it's a mixed population now of seniors and people with disabilities, so that brings in--not seniors, but adults and families, and they're bringing in their friends, and they're propping open the door in the back, and people are coming in and sleeping on mattresses and urinating in the stairwells. And so it was a real nightmare for these residents. So, yeah, as Mark says, it's the day-to-day living of people who--conditions of people who are not down at the harbor, not down in the wealthy, gentrified areas and are in the vast rest of the city really gets ignored. So we're happy to be able to cover that.
MCGUIRE: I wanted to follow up on a couple of things that you were saying, Mark. One was the argument of the government shedding these public assets. So in that light, Baltimore, it's not just in housing that Baltimore has been shedding public assets. There was a big issue a couple of years ago around the privatization of recreational centers. And you'll hear officials making what would be a very conservative argument coming from any kind of media pundit about how the government must shed these assets because we've been unable to administer them. And that's to some degree what's happening here with the public housing administration or public housing authority, right?
REUTTER: Right. It's happened there. It's happened with rec centers. It's happened with Recreation and Parks, more in general. It's happening with the public schools. Yeah, there is a tendency and trend of the city government privatizing things and sort of withdrawing critical public services. They're talking about privatizing or turning the garbage collection into an enterprise unit. At the same time--and this is--we've been at the forefront of and people are very concerned about--the same government gives tax incentives to downtown Inner Harbor and Harborplace developers. So they're spending a huge amount of time sort of trying to pick winners in the development field without ever good questioning--we've tried to do it--of whether this is even a role that they should be engaged in, while I think we hear all the time that citizens not in the fancified areas feel that the public services, trash collection, etc., is going downhill. And this seems to be critical to this whole question of can Baltimore kind of turn the curve around and start attracting people and kind of keep the people who are now here, many of whom really feel that for their property taxes we pay we get lousy services.
MCGUIRE: So, in terms of RAD and housing policy in Baltimore, you have the probability of privatization down the road, though, in spite of your very good journalism, a real lack of details on exactly what kind of shape that's going to take.
REUTTER: Right. Next six months or so, we'll be looking to see how it goes forward. It's also extremely ambitious, which is a bit worrisome. They didn't--even though they call this a demonstration project, they're privatizing around 20 to 25 units, involving thousands of residents. And it would seem to be wise to do a pilot and to see how it actually works in real life and deal with some of the problems on a micro level before turning all this over. But, again--.
MCGUIRE: Which may be the case, with Baltimore being the biggest test case for the housing [crosstalk]
REUTTER: But, again, it involves politics, because many of the developers who are getting this, we have found and we've reported on, are very generous campaign contributors to the powers that be.
If you Google the entire article----I only post a small part here you will see how this project sends hundreds of billions of dollars to HUD from job training to RAD housing project privatization and all this is happening as they know the economy is ready to crash with a bond market crash. Remember, they did the same with subprime mortgage loans in the 2000s----the money the Federal government sent to increase the number of subprime loans given grew even as in 2005 everyone was talking about systemic fraud and corruption in the mortgage industry. The amount of Federal taxpayer money sent to these criminal programs grew as they became more fraudulent.
The same is happening with these HUD budgets and as you see it is saturated with public private partnerships filled with tax breaks and bond leveraging that will have the Federal government on the hook at the next collapse as much as with the subprime loan fiasco. Then you have the state and local bond leveraging directed at these HUD deals and it is a super-sized mess, just as the subprime mortgage fraud was. I have shown how financial analysts have now largely stated the economic crash is coming ----not if, but when-----and the key to much of this LEVERAGE is credit bond leverage.
Even if you do not care about housing for the poor and low-income----think of the trillions of taxpayer dollars subsidizing all those subprime loans lost to fraud---it was breath-taking. Well, they are back and no one has felt justice for the last looting so they are primed for more INNOVATION!!!!!!
THESE DEALS WILL PARTNER WITH THE SAME ENTITIES THAT DROVE THE SUBPRIME MORTGAGE FRAUD AND THEY STILL HAVE BILLIONS TO PAY IN FRAUD TO THE CITY OF BALTIMORE. RATHER, THEY WILL EARN MILLIONS OF DOLLARS MANAGING THESE INSTRUMENTS AND BE THERE TO COLLECT AS THE COLLAPSE SENDS ALL INTO DEFAULT, JUST AS WITH THE HOMEOWNERS FORECLOSING ON HOMES AT THE LAST COLLAPSE.
April 03, 2014
Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies Hearing 1 Federal Information & News Dispatch, Inc.
Thank you, Chairman Murray and Ranking Member Collins, for this opportunity to discuss how HUD's fiscal year 2015 budget proposal follows the roadmap the President has laid out for jumpstarting our economy through educating, innovating, and building. This Budget targets our investments to the families and geographies that need them the most, and puts Americans back to work. Further, the Budget adheres to the 2015 spending levels agreed to in the Bipartisan Budget Act and shows the choices the President would make at those levels. But it also shows how to build on this progress to realize the nation's full potential with a fully paid for $56 billion Opportunity, Growth, and Security Initiative, split evenly between defense and non-defense priorities.
HUD's Budget is an essential component of the President's vision of investing in the things we need to grow our economy, create jobs, increase skills training and improve education, while continuing long term deficit reduction. While our request makes critical investments to speed economic growth -- growing neighborhoods of opportunity through Choice Neighborhoods and providing access to credit through FHA--it also includes new savings proposals and some very difficult choices we may not have made in a better fiscal environment.
Overall, the President's Budget provides $46.66 billion for HUD programs, an increase of $1.2 billion above the 2014 enacted level. This spending is offset by projected receipts of $14 billion. Increases are provided to protect vulnerable families, make significant progress toward the goal of ending homelessness, and support community-centered investments, including funding to revitalize neighborhoods with distressed HUD-assisted housing and concentrated poverty. To build evidence of what works, State and local public housing authorities are offered program flexibilities in exchange for designing and rigorously evaluating innovative programs and policies. The constrained fiscal environment also forced tough choices, including funding reductions to our two largest block grant programs, CDBG and HOME.