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So the states will now have to pick up the tab and raise taxes locally.
Department of Housing and Urban Development
Proposed Spending Cuts
by Chris Edwards and Tad DeHaven
May 2010
Federal housing and urban programs have left a legacy of scandal, economic distortion, and social damage over eight decades. Housing and urban infrastructure are properly the responsibilities of local governments and the private sector, and there is no need for federal involvement. The Department of Housing and Urban Development has created more problems than it has solved, and it should be closed down.
Federal urban renewal and public housing projects of the mid-20th century paved over neighborhoods and herded inner-city residents into high-rise concrete boxes. These projects quickly fell into disrepair and were overcome by crime and disorder. It was a spectacular government failure, but federal taxpayers are still spending about $9 billion a year on public housing subsidies. Those subsidies should be ended, and remaining public housing projects should be privatized or bulldozed.
Federal rental assistance programs should also be ended. Project-based and tenant-based rental subsidies cost taxpayers about $27 billion annually. Like public housing, rental subsidies encourage dependency on the government, discourage self-improvement, and stifle renewal in city neighborhoods. Rental assistance programs and public housing both rest on the myth that private markets can’t provide adequate housing for lower-income Americans.
Community development subsidies should be ended to save taxpayers about $13 billion annually. With today’s huge budget deficits, it makes no sense for the federal government to fund purely local projects such as parking lots and museums. Besides, only local policymakers can properly judge the merits of local projects when they balance a project's benefits with the local tax costs.
Housing finance programs designed to subsidize homeownership have created serious economic distortions that played a major part in the recent financial meltdown and recession. These programs encourage people who can’t afford homes to nonetheless buy homes and to get too far into debt. Housing finance markets would work more efficiently without federal subsidies. HUD’s activities in this area should be phased-out to save taxpayers about $12 billion annually.
The table shows that federal taxpayers would save $63 billion annually by closing down HUD, or about $530 for every household in the nation. The low income housing tax credit should also be ended as an unneeded subsidy to developers worth about $5 billion per year. As HUD programs are cut, policymakers should also eliminate building, zoning, and other regulatory barriers that stand in the way of markets providing the low-cost dwellings that moderate-income families rely on.
Department of Housing and Urban Development
Proposed Spending Cuts
Program
Spending in 2010
($ million)
Rental Assistance $27,164
Community Development $13,092
Housing Finance $11,879
Public Housing $8,808
Native American/Hawaiian programs $893
Other $682
Total proposed cuts $62,518
Total department outlays $62,518
Source: Estimated fiscal year outlays from the Budget of the U.S. Government, FY2011.
http://www.downsizinggovernment.org/hud/spending-cuts
So the states will now have to pick up the tab and raise taxes locally.
i knew that once obama created hud, it would fail.
I knew that once you posted, it would fail.
tell us how tax cuts don't cost anything.
what is a tax cut clam. You need barney huh?
who's barney?
the dinosaur
you're quick to emo.
i used to be a partner in a property management company where every single unit was section 8. over 3500 units from cali to dc.
you don't know about where the money is going.
emo? you mean elmo?
so another lib who benefits from the over charging to the federal govt. let me guess were you the ehtical "Ugly Houses" company. Yeah how great people. Buy a house worth $60k for $40 and then sell to the govt for $90. What a racket.
Did you even read the words he posted?
You're in a frenzy now, just spouting off random hatings.
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