Community Development Subsidies in St. Louis
Community activists are outraged by TIFs , tax abatement, and other forms of development subsidies in St. Louis. There is justification for these beliefs. Another development subsidy which is more pervasive is more damaging. This takes place with the development of affordable housing where block grant funds are used to subsidize the difference between development costs and ultimate sale price of a house. Back when I worked on loan to the city I saw numerous examples of developments that cost $300,000 and sold for $100,000. Block grant funds were used to write down the development cost in the hope these properties would stimulate community development. They rarely did, but aldermen thought they would. Where is the accountability for this disaster of a policy. Worse these policies are still continuing today. Written by Paul Dribin
The St Louis Contrarian 