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The St Louis Contrarian

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

Archive for the category “missouri”

Two Contradictory and Yet Similar Views of Missouri

I take the lists of best and worst to not be worth very much. Nevertheless in the competitive world of travel and jobs maybe they do play a role.

First, a list I just saw ranks St. Louis as the very best place for a young person to move. The report cites the low cost of housing and cultural amenities. I think we all know that, the question is how do we harness it to bring more young people here and retain the ones we have. I would suggest offering a free weekend trip to St. Louis for anyone who wants it who live a certain distance away. Paying for this would of course be an issue but maybe the Regional Chamber can tighten up on some of their salaries to do this. Our cultural amenities are on a par with the greatest cities in the world

On the extremely negative side, Fodor’s published a list of where not to travel in the world, Missouri was listed right up there with Myanmar and Cuba( actually you would be safer in Cuba for sure). I don’t know why Missouri is worse than some other redneck states but we are. Much of it goes back to the NAACP report from awhile ago. Written by Paul Dribin

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Greitens and MHDC Board Vote to Eliminate State Low Income Housing Tax Credits

The MHDC board met Friday and voted to eliminate the state credits. This will result in a significant loss of affordable housing in Missouri which is a tragedy. Reforms needed to be made in the program, but I don’t think Greitens is really interested in reform, simply grandstanding. Nevertheless, a big part of the reason the program was eliminated was the greed of the industry supported by the credits. MHDC never had an open application process with clear standards for judging and eliminating applications. The board made of high level political appointees was subject to legal and illegal graft. The program was run as a political fiefdom and returned far too little of the funds to actual low income recipients.

Still the program should not have been eliminated unless something better was around with which to replace it. As always low income people are the ones who suffer the most. 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 of Missouri Low Income Housing Tax Credits

Well the hammer has dropped. The Missouri Housing Development Commission. (MHDC) board voted today to eliminate the State Affordable Housing Tax Credits. These credits have been used in conjunction with federal affordable credits, historic credits, and other forms of subsidy and equity to build and rehabilitate affordable housing in Missouri. Governor Grietens has been pushing to eliminate these credits since he has taken office.

This action will make affordable housing in Missouri more difficult to accomplish. There will be fewer deals and less affordable rents. The state credit appears expensive in a simplistic way, but in terms of jobs creation and long term housing affordability it is critical.

There has been significant criticism of the multitude of state tax credits in Missouri. The reason for this is the unreliability of the state legislative process an the subsequent uncertainty to housing investors. My mild criticism of the industry for a long time has been that we are too reliant on tax credits and need to develop alternative sources of funding. Written by Paul Dribin

HUD to Defund Fair Housing Grants in Missouri

Missouri passed a law about six months ago which made filing a discrimination or fair housing complaint more difficult. Many in the know advised against it primarily for moral reasons, but also because of the potential for lawsuits and possibility of listing federal funding. Well, the predictions have come true. HUD has written that if the law is not changed by March 2018 federal funding for fair housing enforcement will be terminated. That is because the state law is no longer “substantially equivalent” to the federal law. It would be just deserts if Amazon opted not to come here due to our redneck ways. Written by Paul Dribin

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