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ITEM: City governments are finding it harder to help lower-income families buy a "starter house," reported the Press-Enterprise (Corona, California). "The 'American Dream' in its most basic form includes home ownership for many. But rising housing costs are putting that dream out of reach, particularly for low-income residents," said the newspaper on March 1.
In Corona, for example, home prices "are rising at a rate of more than 20 percent per year, with the average price at more than $380,000 in October...." Fewer people are qualifying for government assistance, which provides funding to "pay the difference between what they qualify for through their lenders and the home-purchase price." In Buena Park, the city council has "approved an increase of the maximum home price for its program to about $340,000 ... [and voted] ... to increase down-payment assistance to $60,000 ..., pending a go-ahead from the state, which administers the federal funding for many city programs...."
BETWEEN THE LINES: Government is more of a problem than a solution for those seeking affordable housing--with burdensome environmental limitations and "smart-growth" policies jacking up costs. In California, for example, communities have placed expensive development-impact fees on home construction, up to $60,000 for a single-family dwelling, says housing expert Wendell Cox. Nationwide, the least affordable housing areas, including ...
Source: HighBeam Research, Building more problems.(Between The Lines)