This is my second diary in a series of pragmatic approaches to today's problems and issues.
I am a pragmatist. And I don't like the word "can't". To me, there's always a way to do something and to fix a problem if you just think outside of the box a bit.
I made a comment in katanalori's diary : Homeless Diarist MiscastDice: HELP IS ON THE WAY! that got a lot of recs, so I thought I would explore the idea a little further. Join me below the fold for a possible solution to some of the housing woes.
Ok. Solution? That might be a bit far reaching. There's probably no one solution to the variety of woes facing the real estate market right now. But, this idea might just be one piece of the puzzle.
Kantanalori was trying to help out homeless miscastdice and someone suggested the government buy up all the empty houses that got forclosed and let the homeless live in them.
Well, I got to thinking there already is a program that places low income folks in government assisted but privately owned housing. That's Section 8 housing.
The problem is since this is a rental assistance program for private housing, investors in said housing are having problems financing new units they would want to rent out.
Buyers are also reticent to invest in housing units because the prices may continue to slide downward.
So I'm thinking why not have the feds help out on all fronts? Why not use some of that $700 Billion for low low interest loans to buy up foreclosed properties as long as they are used for at least a few years as Section 8 housing.
This solves several problems at once.
First- It creates demand for housing that is just sitting empty. Greater demand means housing prices will stabilize. This is good for everyone. Existing homeowners in neighborhoods will see their property stop losing value and maybe even start to regain some of that lost value.
Second- By opening up the Section 8 program and streamlining approval processes, we can fill moderately priced housing fairly quickly.
Third- The faster housing is filled, the sooner local governments start realizing tax revenues. Cities around the nation are looking at some serious belt tightening in view of the lower projected revenues in the next few years at least. They might even be convinced to value an empty home at a temporarily reduced tax rate just to fill them up.
Fourth- It's an entrepreneurial opportunity. I know money's tight for lots of folks. But some folks with savings don't know where to invest right now. The stock market is a crap shoot at best. I think it would be a great opportunity for people to invest in their community.
Fifth- The most important goal would be putting a roof over a family's head. Perhaps for a family that is homeless, living with relatives, or otherwise just getting by.
So, there you have it. Perhaps it's too pie in the sky of an idea, but like I said, you've got to think outside the box.
Thoughts? More ideas? Let's hear 'em!
[small rant]
Let's start coming up with practical ideas and solutions to the problems in this country. We need to look ahead. And we need to be positive. There's a lot of talented people around here. Let's stop looking at the past and look to a brighter future where Americans are participating in the process of making this country better. [/rant]