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HUD Needs Funding to Address the Housing Crisis

By George Bennett

Real Estate Agent with Inactive

December 30, 2008 05:35 AM

The Housing Crisis has many aspects to it. Foreclosures create

Families in need of affordable housing
Liquidity and/or solvency problems for the lenders
Increasing number of homes for sale in a market with excess inventory.

Congress needs to fund a new HUD program to purchase REO properties.

The Department of Housing and Urban Development (HUD) should receive funds to buy 500,000 homes in major metropolitan areas to address the housing needs of low income families. These homes would then be allocated to local and/or regional Housing Authorities to provide public housing at rental rates that low income families can afford.

For example, a $100 billion allocation could buy approximately 500,000 homes with a purchase price of less than $200,000. This action would provide affordable housing for low income families, improve the liquidity/solvency of lenders, reduce the inventory of homes for sale in these markets, slow the free fall of home prices, and help establish a bottom for the housing market in these areas.

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Anonymous

Valanderous Bell

I am hopeful as many are, that HUD will involve with the current and increasing housing crisis in major metropolitan . However, there is a dire need for housing in small cities and towns. As Director of a Non-Profit orginization I have found that people in these small areas are looking prayerfully to relief to their housing needs. If within your power please plea on behalf of these areas as well.

Have A Great Holiday and a Joyous New Year!

Dec 30, 2008 01:53 PM

George Bennett

Inactive - Port Orford, OR

Inactive Principal Broker, GRI

Hi Val,

Thank you for your comment. I agree that small cities and towns need relief for their housing needs. The government usually addresses these needs through the USDA Rural Development program. Funding could and should be made available for the families in rural America. If we lowered the maximum price for the purchase of REO properties to an appraised value of $125,000 then an allocation of 5 billion dollars could purchase approximately 40,000 homes. This program could be managed through the Rural Development offices in each state to address the housing needs of low income families in small cities and rural towns.

Dec 30, 2008 02:28 PM

HUD Needs Funding to Address the Housing Crisis

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