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Building more problems.(Between The Lines)

The New American

| April 05, 2004 | Hoar, William P. | COPYRIGHT 2004 American Opinion Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

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 ...

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Source: HighBeam Research, Building more problems.(Between The Lines)

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