Gov shafts renters (again)

After defunding the renters' and homeowners' tax assistance program (known as the "renters' rebate") on grounds that the state could not afford to make any tax rebate payments to low-income senior, blind and disabled Californians, the Governor has signed legislation to give $100 million in new tax credits to people who buy homes between March 2009 and March 2010.

The Governor's move is another slap in the face to low-income Californians. The Governor prefers to give $10,000 each to individuals who are well off enough to be buying new homes in the current economy, rather than continue a program that provides an annual $347.50 payment to low-income senior, blind and disabled Californians.

Full story at www.RentsandRants.org

Work

The workmen over and above the fence
fit bricks, lift mortar, slap it accurately
in place. Guilty by sitting idle, I
imagine they envy my luxury
of doing nothing until I remember
the days I had my hands full of shovel,
the dragline plowing the ditch of a sewer
through a future subdivision and how
I pitied those who walked by our work
with no apparent occupation,
denied the pleasure of making something,
piece by piece—even if it would soon
be buried—they would depend upon.

- Robert King (from www.rattle.com)

NY Times Urges Affordable Housing Funding in Stimulus Package

A Stimulus for the Poor

   February 7, 2009

   NY Times Editorial

The stimulus package taking shape in Congress does little to provide affordable housing for the country's poorest families. That is grim news. Affordable housing has been hard to find in recent years. It's even harder now that many Americans have lost their jobs and homes.

Congress could help low-income Americans find homes — and create jobs doing it — by providing money for the National Housing Trust Fund, a worthy program it created last summer but has so far failed to finance. The Senate and House versions of the stimulus bills do not now contain such money, but funds could and should be added in the conference committee that must reconcile the bills.

The trust fund was originally envisioned as a project that would encourage developers to build 1.5 million affordable housing units in mixed-income developments. The government-backed mortgage companies, Freddie Mac and Fannie Mae, were to provide the money. Both, however, ran into financial trouble.

Congress can take up the slack. The need for affordable housing has increased dramatically in the last six months, and the Department of Housing and Urban Development has already done a lot of advance planning.

Estimates by the National Low Income Housing Coalition suggest that a Congressional down payment of $10 billion for the fund, plus $3.5 billion in housing vouchers under the Section 8 program, could produce affordable housing for up to 400,000 people. New construction would, of course, spawn new jobs right away.

The Senate's stimulus bill would give home buyers a tax credit of 10 percent of the price of a primary residence, up to $15,000. This would help middle- and upper-income buyers, but not the elderly, poor and disabled who don't earn enough to qualify for this break. Congress can help them by reviving the National Housing Trust Fund.