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The St Louis Contrarian

Providing Independent and Intelligent Insight on St. Louis Public Policy Issues

Archive for the category “homeownership”

Container Houses

The Post recently wrote of a couple in Old North St. Louis who are building a house consisting of storage containers. As long as the housing meets code, why not? The sad part of the story is that lenders are not willing to make mortgage loans on the north side. Isn’t that redlining? Written by Paul Dribin

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St. Louis Housing Summit

Today, 9/21, I attended a housing summit here in St. Louis at Christ Church Cathedral downtown. The idea of the summit was to start to build a coalition to develop more affordable housing in St. Louis and end homelessness. There were approximately 300 people in attendance including some homeless people. The speakers were good, enthusiasm high. Let’s hope for the best. Written by Paul Dribin

Update on Paul McKee and Northside Project

Little is happening in this arena. KWMU came upon a renegotiation agreement that requires relatively little of the northside group to keep the deal going. As I have said, I know McKee and consider him an honorable purchase. I think he has been squeezed by too many parties in the city. Written by Paul Dribin

The Biggest Cause of Housing Unaffordability

I run into issues affecting housing affordability every day. The simplest and also most difficult problems are the land use and zoning restrictions that unnecessarily drive up the cost of housing and or limit or ban the construction of apartments. Some of these decisions are things such as:

1. Banning of small houses

2. Minimum lot sizes that require a large expenditure on land.

3. Banning of manufactured housing.

4. Excessive road widths and sidewalk requirements

5. Inefficient inspection processes.

6. Banning of apartments

These are not sexy issues and are often overlooked. Each one of them makes housing less affordable. Written by Paul Dribin

TIF In University City

NOVUS Development had been approved by University City to develop a mixed use commercial site at the intersection of Olive and I-170. This is an ethnically diverse area with lots of small businesses and minority residences. Community leaders are calling for a Community Benefits Agreement which would establish clear objectives to benefit everyone in the community especially those that might be displaced by the development. I believe this is only fair and proper in such a situation. I am confident this development will be a win-win. Written by Paul Dribin

Missouri River Bluffs

Whittaker Development is planning on building single family homes on an environmentally sensitive site over looking the Missouri River near the Katy Trail. The St. Charles County Commissioners need to vote on the proposal which is opposed by environmental groups. I would recommend voting against this project. We don’t often have these environmentally beautiful sites and need to preserve them. Written by Paul Dribin

A Very Good Article About Housing Policy From Brookings

www.brookings.edu/blog/the-avenue/2018/05/02/nine-rules-for-better-housing-policy/

I particularly like that they talk about income subsidy as well.

Homeownership tougher than ever

apple.news/ArLL6FK-DRq6Tg0ze-nlylQ

The Wall Street Journal points out in this article that homeownership is tougher than ever. In most cities there is a short supply of housing, and higher interest rates. Incomes have remained fairly stagnant. The suburban areas of St. Louis fit this pattern. Written by Paul Dribin

A bad racist housing program

www.theatlantic.com/business/archive/2018/04/rent-to-own-redlining/557588/

This article itemizes a new form of land contract housing sales. It preys on African American people of limited means and marginal credit. People pay monthly but title to the property does not transfer until after a long number of years. The potential buyers build no equity and if they miss a payment they are out with no equity to show for it. These programs were used for blockbusting in Chicago when I grew up. Written by Paul Drib in

The Real Story Behind Racial Disparities in Mortgage Lending

There are numerous articles and discussions about the fact that African American borrowers are rejected at a higher rate that white borrowers. This disparity is present even when adjusting for income. On the face of it, this appears to be overt discrimination.

An important piece of the puzzle is missing from the discussion. That piece is the credit record and history of the borrower. This information is never made available in these studies and provides a more qualitative aspect of mortgage underwriting. Two other equally qualified borrowers will have different underwriting results if one has a negative credit record. Research I have conducted has shown that bad credit is the primary cause of a loan going bad.

Another factor shows this poor credit denies loans. Mortgage loan officers are extremely aggressive and make their fees off of closing loans. They would make a loan to anyone who would qualify. Race plays not factor in these decisions. Written by Paul Dribin

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