AVONDALE, Ariz. -- In this Phoenix suburb, two townhouses stand vacant, filled with trash and abutting an empty neighborhood swimming pool covered with graffiti. But to Gina Ramos Montes and other city officials, the dilapidated properties look promising.Think about what this says about our culture. 150 years ago, American pioneers were moving into the wilderness where there were no structures at all and building homes and farms and towns. In Oklahoma, there was a mad rush for such land on March 2, 1889. Can you imagine the reaction you would have gotten from those settlers had there already been homes on the land?
As part of the $4 billion Neighborhood Stabilization Program authorized by Congress in July, Avondale is set to receive $2.5 million to redevelop neighborhoods blighted by abandoned and repossessed homes.
Nowadays, we need the government to come in and make the houses ready for habitation by other citizens. Meanwhile, we've just blown our economy apart because we decided to help low-income people buy homes by making home loans so easy to get that dogs could qualify for the money. At the same time, we subsidize rental housing for single parent families with no expectations on them for morality or thrift. Tax credits for such people will soon be in the mail.
Now, no post on a topic like this would be complete without a quote from the ultimate spokesman for helping people believe in money-dispensing fairies, so here we go:
Rep. Barney Frank, a Massachusetts Democrat and one of the program's main advocates on Capitol Hill, said in an interview that it "would have made a bigger difference if there were more money."Is that classic, or what? We have abandoned homes, vandalized by neighbors who are most likely not even close to paying their share of the tax burden nor expected to do so, being rebuilt by the government with money borrowed from China that will be paid back by our children, assuming we don't simply vaporize our currency first.
Here's what might be the best part of all.
For new subdivisions, the city wants to entice buyers by subsidizing down-payments, closing costs and renovation expenses. The structures are solid, but the interiors are often damaged. Officials suspect that buyers might need a financial incentive before they'll take the plunge. "They're watching the TV," said Rogene Hill, the assistant city manager. "Everybody is getting bailed out. 'Why should I have to buy a refrigerator?' It's emotional, not rational."Fantastic.
Wouldn't it be great to hold a seance with some of the Oklahoma settlers and let them know this was going on?
It's not entirely clear from the article, but it sounds like the big thing keeping these houses abandoned is that somebody does still own them - you can't just move in and "homestead" one, putting in your time and effort instead of cash. You actually have to buy it from somebody, and then pay to fix it up on top of that. And the current owners are still asking for more than they are worth.
ReplyDeleteInstead of the government paying to "refurbish" them, and then expecting the current owners to magicaly become able to sell them, I expect the cities would be better off just giving the owners a choice: either price the houses to actually sell, or the city will sieze them by eminent domain and open them up for "homesteading" by people who are willing to work to fix them up.
Or, alternatively (and even cheaper), they can just wait until the owners let go of their delusions and either actually lower prices enought to sell the things, or stop paying property taxes and let the state take them over and auction them off. Then the problem will take care of itself.
Good points, Tim. If they are still owned, then why are we taxpayers refurbishing them? If they are abandoned, they ought to be auctioned like you said.
ReplyDeleteHaving said that, the unspoken theme here is that there isn't any demand to homestead the places since the people who correspond to the Oklahoma settlers are quite comfortable where they are, subsidized by you and I.
At the end of the day, how is this "scheming" really any different than what got us into this mortgage/financial mess in the first place?
ReplyDeleteACORN, sub-primes, red-lining, etc.... we either didn't learn our lesson or have willfully chose to ignore it.