pic by urban garden

Moving the Economy forward requires less talk and more action.

Congress needs to pass a bill that requires:

1. All foreclosures to go thorough a standard process where an online auction is conducted thorough a local government/nonprofit affordable housing initiative.
2. No renter can be evicted due to the fact that an owner defaulted on the mortgage.
3. Mandate 25 billion of financial bail out monies to be used by the local nonprofits or housing authorities to bid for the properties as a first right of refusal.  Have the final dollar amount represent the cost to create a sufficient number of housing units in each state to meet a define level of need in the state.
4. Have a requirement that nonprofits or governments participating must pay a minimum of 20% of their bid price with other funds.
5. Mandate that for a property to be purchased under the program that said the bid price can be no more than the amount that would allow for rents to be set within an affordable housing category that is 30% of income.  The category must be defined as representing 30% of that communities set minimum wage level.
6. Government and nonprofits can exceed said cap if they bid for the property and request no federal dollars and are the winning bid.

The Result:

• Property moves more quickly to new owners
• Less people become homeless or evicted
• Number of homes for sale drops
• Values of the housing market stabilize
• Affordable housing stock increases dramatically
• Access to credit markets by nonprofits increases

The initiative needs to be about creating housing for individuals and families can afford base on the wages of that community.  Thus, some of the housings that people are going to lose under foreclosure may be eligible to be renters under the program.

This entry was posted on Friday, December 19th, 2008 at 8:03 pm and is filed under Public Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.