“The authority AOC envisions would require a $30 billion budget…It would also entail a parallel loan fund. The 1.25 million housing units anticipated to be built by the authority would have their rent pegged to 25 percent of a household’s income, thus preserving affordability.
It would be hard for YIMBYs to argue with the idea of spending $30 billion to increase housing supply.”
I don’t believe the YIMBY movement will like this at all. All this does is create more waste. When the government builds something, especially as described here requiring “union jobs” everything costs more….a lot more.
To fund the housing, we have to take tax money from someone else to build homes at inflated prices. Further, since we are controlling the mortgage price, there will inevitably be a chronic shortage of these homes. And what happens when the household income drops to zero? Does the mortgage fall to zero? What happens if the owners take part-time jobs, secure in the comfort that the government (other taxpayers) will always foot the difference?
I realize I haven’t read the bill, but ideas like this are littered with minefields and opportunities for waste. Better just make it easier to build housing and allow the problem to solve itself.
I hope Harris embraces the AOC approach outlined here. Definitely a smart game changer.
“The authority AOC envisions would require a $30 billion budget…It would also entail a parallel loan fund. The 1.25 million housing units anticipated to be built by the authority would have their rent pegged to 25 percent of a household’s income, thus preserving affordability.
It would be hard for YIMBYs to argue with the idea of spending $30 billion to increase housing supply.”
I don’t believe the YIMBY movement will like this at all. All this does is create more waste. When the government builds something, especially as described here requiring “union jobs” everything costs more….a lot more.
To fund the housing, we have to take tax money from someone else to build homes at inflated prices. Further, since we are controlling the mortgage price, there will inevitably be a chronic shortage of these homes. And what happens when the household income drops to zero? Does the mortgage fall to zero? What happens if the owners take part-time jobs, secure in the comfort that the government (other taxpayers) will always foot the difference?
I realize I haven’t read the bill, but ideas like this are littered with minefields and opportunities for waste. Better just make it easier to build housing and allow the problem to solve itself.