Thursday, September 8, 2016

HUD Abuse

Prior to the notion that the federal government should assume control of every aspect of the US economy, individuals and families were solely responsible for providing a roof over their heads.  The Great Depression and drought in the 1930s prompted the government to “do something”.  In the 1930s, families lost their farms in the dust bowl.  The drought destroyed their crops and they ran out of money to pay their mortgages and operate their farms.  Family farms lived from harvest to harvest and still had to borrow money from the bank to buy seed, livestock feed and farm equipment.  The banks took their farms when they couldn’t make payments on their loans.

In the cities, factories and businesses closed and families suffered the same foreclosure fate being experienced by the farm families.  Elected officials chose to take the opportunity to bail out the lenders. Mortgage insurance protects the lenders from losing income from mortgage loans and the insurance premiums are paid by the home buyers.  They later added “slum clearance” to their list of HUD functions.

When jobs producing military hardware were created in 1939 after Germany’s invasion of Poland, factories began to open to supply our European allies, Great Britain and France. The drought had ended and the banks could begin to sell the properties they had seized. 

In 1945, when World War II was won, the US emerged as the only manufacturing power left standing.  The government could have stopped there and left their footprint limited to continuing mortgage insurance and slum clearance, but they didn’t.  They moved to expand their control over housing.  This was consistent with the movement toward socialism and the government controlled economy. 

It’s easy to see how the US government would continue to expand its power with the unconstitutional power to print money and subsidize corporations.  Both government and the voters didn’t see how increasing government control would erode individual rights and responsibilities and pervert the free economy.  HUD history is as follows:

·       June 27, 1934 - The National Housing Act creates the Federal Housing Administration, which helps provide mortgage insurance on loans made by FHA-approved lenders.[3]
·       September 1, 1937- Housing Act of 1937 creates the United States Housing Authority, which helps enact slum-clearance projects and construction of low-rent housing
·       February 3, 1938: The National Housing Act Amendments of 1938 is signed into law.[4] The law creates the Federal National Mortgage Association (FNMA), which provides a secondary market to the Federal Housing Administration[5]
·       July 27, 1947 – The Housing and Home Finance Agency is established through Reorganization Plan Number 3
·       July 15, 1949 – The Housing Act of 1949 is enacted to help eradicate slums and promote community development and redevelopment programs
·       August 2, 1954 - The Housing Act of 1954 establishes comprehensive planning assistance
·       September 23, 1959 – The Housing Act of 1959 allows funds for elderly housing
·       September 2, 1964 – The Housing Act of 1964 allows rehabilitation loans for homeowners
·       August 10, 1965 – The Housing and Urban Development Act of 1965 instituted several major expansions in federal housing programs
·       September 1965 – HUD is created as a cabinet-level agency by the Department of Housing and Urban Development Act
·       April 1968 – The Fair Housing Act is made to ban discrimination in housing<
·       During 1968 – The Housing and Urban Development Act of 1968 establishes the Government National Mortgage Association (Ginnie Mae)
·       August 1969 – The Brooke Amendment establishes that low income families only pay no more than 25 percent of their income for rent
·       August 1974 – Housing and Community Development Act of 1974 allows community development block grants and help for urban homesteading
·       October 1977 – The Housing and Community Act of 1977 sets up Urban Development Grants and continues elderly and handicapped assistance
·       July 1987 – The Stewart B. McKinney Homeless Assistance Act gives help to communities to deal with homelessness. It includes the creation of the United States Interagency Council on Homelessness of which HUD is a member.
·       February 1988 – The Housing and Community Development Act provides for the sale of public housing to resident management corporations
·       October 1992 – The HOPE VI program starts to revitalize public housing and how it works
·       October 1992 – The Housing and Community Development Act of 1992 codifies within its language the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 that creates the Office of Federal Housing Enterprise Oversight, and mandates HUD to set goals for lower income and underserved housing areas for the GSEs Fannie Mae and Freddie Mac
·       March 1996 – The Housing Opportunity Program Extension Act give public housing authorities the tools to screen out and evict residents who might endanger other existing residents due to substance abuse and criminal behavior
·       October 1998 – Government laws are proposed which would allow local housing authorities to open up more public housing to the middle class
·       November 2007 – HUD initiates program providing seller concessions to buyers of HUD homes, allowing them to use a down payment of $100
·       May 2013  – HUD announces it will "close its offices on May 24 and possibly six other days" as a result of the Sequester [6]
Mission[edit]
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.[7]

HUD continued to fail to help citizens and erode families and has a long list of failures like “public housing”.

Now HUD is attempting to take over zoning using grant bribes.  Their goal is to move poor minorities (and refugees) into expensive subdivisions nationwide.  This will destroy property values and schools and accomplish nothing more than that. 


Norb Leahy, Dunwoody GA Tea Party Leader

No comments: