Forclosure and Gulf Coast Housing Crises Both Deserve Attention
Saturday, June 7th, 2008Housing Trust Funds have a long history of producing diverse affordable housing options at the local level.
Housing advocates have been working hard to bring this idea to scale and create a National Housing Trust Fund to build 1.5 million affordable units in 10 years. Most of the units would help people that pay over 50% of their income towards housing costs, something more and more Americans can relate to as costs of living rise.
But just as it seems we are inching close to securing much needed resources to build affordable rental housing, someone’s always got to throw a stumbling block in the way. As Monday’s editorial in the New York Times points out, the National Housing Trust Fund that has just emerged from Senate committee would redirect the first year’s pot of money to a foreclosure prevention program.
Sounds good, sure — but this is instead of the House’s version, which sends the money to rebuild much-needed housing on the Gulf Coast. The fact that the Gulf Coast’s own Sen. Richard Shelby (R-AL) is leading the effort to funnel money away from the Gulf is particularly painful, but would come as no surprise to those fighting to rebuild communities across the coast.
There is a severe need for funds to build affordable rental housing in the Gulf: in the most devastated parishes, Louisiana only has money allocated to rebuild 1/3 of the 82,000 units of rental housing destroyed; Mississippi has received waivers of low-income requirements on the vast majority of its recovery dollars and moved $600 million of its housing recovery dollars to rebuild their port; and Alabama currently only has the funding to help one-tenth of those that applied in Mobile County for help rebuilding their homes.
There is still a housing crisis in the communities of the Gulf Coast – almost 3 years out families are getting kicked out of trailers with formaldehyde fumes with nowhere to call home. One year of this Fund could significantly contribute to housing production in the Gulf Coast and help ease the immense need.
It’s unfortunate Gulf Coast residents are being forced to compete for money with those swallowed up in the foreclosure crisis. The politicians in Washington must figure out a way to handle both of these pressing housing crises with compassion and vision.
Photo of New Orleans’ Musicians Village by Flickr user Cherie’, used under a Creative Commons license.

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