Compromise carved out on state Low Income housing Tax Credits
the program is corrupt but we need it
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The St Louis Contrarian
Providing Independent and Intelligent Insight on St. Louis Public Policy Issues
Archive for the category “low income housing tax credits”
Housing in Ferguson
One of the issues surrounding the Michael Brown shooting and its’ aftermath were the poor conditions of affordable housing projects in Ferguson. In fact, the Ferguson Commission raised the issue.
Recently the owners of several of these housing developments and the St. Louis County Housing Authority have cracked down on bad tenants. Lo and behold the community is up in arms about people facing eviction. Once again no one wants to take responsibility for bad behavior. Bad tenants are bad tenants, period. Written by Paul Dribin
Missouri State Tax Credits
The ouster of Greitens may improve the chances of reinstating Missouri credits. Jeff Smith, Executive Director of MOWAHA is quoted in the article saying the credits are efficient and effective. They are neither. Written by Paul Dribin
The Not-So Hidden Truths About the Segregation of America’s Housing – Shelterforce
There are sometimes audible gasps in a room as Richard Rothstein talks about his book, The Color of Law, and the United States government’s work to create, encourage, and enforce racial segregation in housing in the 20th century.
Excellent interview with richard rothstein about housing segregation
— Read on shelterforce.org/2018/05/22/the-not-so-hidden-truths-about-the-segregation-of-americas-housing/
Pagedale. Missouri
Pagedale is a tiny mostly African American community in north St. Louis County. The community has a history of corruption and poor living conditions.
Beyond Housing has been active in Pagedale for some time and is making some positive contributions to the community including housing,economic development, and social services. This process of improvement is difficult and slow.
St. Louis Magazine recently published an article about the situation in Pagedale which highlights the corruption and forwards some criticisms of Beyond Housing. I consider the article to be counterproductive, rehashing old news, gossip, and negativity. Too bad. No good deed goes unpunished. Written by Paul Dribin
Greitens Effect on Affordable Housing
As everyone knows, Governor Eric Greitens of Missouri is in deep trouble after being indicted for violating a Missouri law by taping his semi nude lover without her consent. If Greitens should leave office, it would be positive for affordable housing. He almost solely stopped the Missouri State Affordable Housing Tax Credit. There does not appear to be the same enthusiasm for this elimination on the part of the Lieutenant Governor or many other Republican leaders. We will have to see what happens. Written by Paul Dribin
More About Housing Tax Credits
Much is being written and discussed about the Governor’s decision to terminate Missouri State Affordable Housing Tax Credits. The loss of these credits will make affordable housing difficult to do and adversely affect a certain category of poor person. I am not in favor of eliminating these credits simply because there is really nothing else to work with in the affordable housing arena.
Nevertheless, the greed of some members of the affordable housing industry made this decision by the Governor inevitable. There are many developers, syndicators, attorneys, and consultants who have gotten rich off the program. Too much of a dollar of tax credits does not go for actual housing expenses. Many in the industry do not really care about poor people.
In addition, the Low Income Housing Tax Credit Program is both inefficient and ineffective. Inefficient for the reasons cited above plus a hugely complicated program. Ineffective because the program does not house poor people who need it the most. Tenants still must pay a $400-$600 monthly rent. Homeless people need not apply.
If the traditional public housing program was allowed the same per unit expenditures and site location it would have been a more efficient and effective housing program. Unfortunately, anything that smacks of public involvement is frowned upon these days. Written by Paul Dribin
The Beneficial Effects of Low Income Housing Tax Credits
I read some “scholarly” research today on the effect of Low Income Housing Tax Credit (LIHTC) on neighborhood stability. Some earlier research had suggested that LIHTC projects had a negative effect on low income communities. This study showed a very slight positive effect. This to me is faint praise. Affordable housing has been billed as transformative. Lives are clearly not being transformed by these programs, at best they are somewhat stabilized. Maybe that is all they can accomplish. They should not however be oversold. Written by Paul Dribin
State low Income Housing Tax Credits Again
Tony Messinger wrote a very powerful article today about the abuse of this tax credit program in Missouri. I have mixed emotions in response to his article. He is spot on that the program is inefficient and helps developers, lawyers, accountants, syndicator, bankers, and consultants get rich. Too little of the dollars generated by the program actually go to hard units of housing. I have been to many housing conferences in recent years where the subject could be soybeans, or pork futures. The participants do not care about poor people and affordable housing. I had unsuccessfully tried to get their interest in the work of the National Low Income Housing Coalition, but the group’s only concern had been tax credits.
On the other hand, the tax credit program is the only one there is for construction or rehabilitation of affordable housing. The program needs to be reformed, not eliminated. We also need to develop other tools for building affordable housing. Written by Paul Dribin
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