Housing Crises Looms for Debate--why is Dodd with Bush still?
Submitted by jhowars on Tue, 11/13/2007 - 6:35pm
One of the few things the Federal government does to actually assist working families to gain first time homeownership is the downpayment assistance program.
I've written about the downpayment assistance issue before, with support from several of the most popular Black bloggers. The Bush Admin and HUD Secretary Alphonso Jackson has been trying to close down the downpayment program-- which allows nonprofits to help qualified first time home buyers with getting the downpayment they need to move into their first home. The GAO reports that if the Bush admin is allowed to close downpayment assistance, then 40% of African-American homebuyers and potentially 30% of Latinos will be unable to utilize FHA loans and will be unable to become homeowners.
In the house, Democrats Maxine Waters and Barney Frank have championed a bill to block Alphonso Jackson's regressive efforts. In the courts, a Federal judge ruled October 31st that HUD cannot issue its decision banning downpayment assistance because of lack of a public hearing and with concern for how many people would be adversely affected.
Now with those kind of odds, shouldn't the Bush admnistration be backing down? No- and that's because they still have support in the Senate. Banking Committee Chairman Chris Dodd is still siding with the Bush administration, echoing Republican Senator Richard Selby by saying he thinks downpayment assistance ought to go...
Clearly, Eliminating downpayment assistance is just another way to put Blacks into a modern day sharecropping system the apartment renting plantation. Without rich parents and inherited wealth, many minorities are trapped in cycles of poverty...never owning assets and always renting...
Let's hope Senator Obama and Senator Clinton takes leadership of this issue that is affecting communities all over the country. Will Blitzer ask a question about how to deal with the housing crises? Will he have the cojones to challenge Dodd for supporting Bush on shutting down the lifeline to these people?
Downpayment assistance is the best way people can AVOID the predatory loans and subprime mortgages which have caused the bubble to burst. Taking downpayment assistance away will only exacerbate problems.
What's Dodd's explanation?
He's a smart guy . . . how does he explain this?
Do good. Be nice. Have fun.
Complex
This is a complex issue. The problem has been with the major "non-profits" involved. The IRS has claimed that they are not true non-profits because money for down payments comes from inflating the loan and these particular non-profits are part of the financial loop. Here's some background:
FHA ban on down payment assistance put on hold
Going cold turkey is not the solution and continuing on the same path is problematic also. Like I said, it's complex.
I've heard similar claims
I believe the problem Greg mentioned is a real one and I doubt it's the only issue.
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Thomas Jefferson said you always get the rulers you deserve.
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Dodd's side
I'd like to set the record straight on Senator Dodd's position on down payment assistance.
First, your attacks have been targeted at Senator Dodd and have painted him as siding with Bush. That's just not true. The FHA Modernization Act passed out of the Banking Committee 20-1, with all Democrats supporting it - a good indication that that Dodd is not supporting the President but rather leading on an issue important to every segment of society and critical to ensure that people are able to find affordable housing and achieve the dream of homeownership.
The Center for American Progress, hardly a pro-Bush bastion, praises the legislation.
Second, I think you're misrepresenting what these programs do. A recent Washington Post article noted that these programs often make housing costs significantly higher. “Such programs allow home sellers to give money to charities, which in turn assist buyers with their down payments. The sellers pay the charities a service fee, but often recoup the money by charging a higher price for the homes, usually 2 or 3 percent more, or an amount equal to the down payment, according to a 2005 study by the Government Accountability Office.”
But most important is what Chris Dodd will do as President. He's for expanding homeownership for all Americans and has a plan to make it easier for people to get down payment assistance without endangering them financially.
You can read his full homeownership plan here: http://chrisdodd.com/issues/homeownership/
Lastly, as you've copied and pasted an identical diary about two dozen times at different progressive community sites, I'm posting this response in multiple locations to ensure everyone can see Dodd's side of the story, complete with links and sourcing.
I proudly work for Chris Dodd's presidential campaign.
Hi Matt
I haven't seen you around since The Roots Project.
Thanks for stopping by to present Dodd's side.
Robin Hayes lied. Nobody died, but thousands of folks lost their jobs.
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Vote Democratic, the ass you save may be your own.
Hi Betsy
Oh I've been around in my various corners of the blogosphere.
I've been working for Dodd since early May -- this is my first time commenting at BlueNC. It's a great site and maybe a hidden bonus of this person "jhoward" posting the same thing at about 25 or 30 progressive community blogs is that I'm getting to register and talk with people at a lot of sites I've heard of but never taken part in before.
I proudly work for Chris Dodd's presidential campaign.