Nationalize work-force housing
Telluride, CO Colorado
A work-force housing program that has been around for more than 30 years in Colorado could be applied to solving the national foreclosure crisis. The plan would be to offer to all homeowners the option to participate in a national work-force-housing program by placing deed restrictions on their homes with a cap rate for resale purposes. The home would be appraised at its new value and payments adjusted (one-third to one-half of a free-market home).
It would not be a giveaway since the owner would have to forfeit the free-market appreciation value to get in the program.
The home would remain affordable for future generations, and the plan would not encourage homeowners who can afford to make their payments to jump in on a bailout or giveaway they do not really need and would reward everyone by solving the foreclosure problem and getting building and construction going again.
The plan could also be offered to bank-owned and developer-owned homes, which would help with the over supply, and even applied to homes that are “for sale.” Renters and first-time home buyers would have a great opportunity to own a home this way.
The delta between the loan amount and the new appraised value would be paid to the note holder by the federal government by means of a tax credit. This would also serve to stimulate the economy since the payment would not be cash from the government but a deduction from taxes owed from profits of us all getting back to work.
Another benefit is that the homes would be scattered throughout our communities, and no one would know the difference after a year or two.
This is a solution to the foreclosure crisis that wasn’t dreamed up to address the problem but one that is just being applied.
As they say, “A crisis is a terrible thing to waste.”
Plus, we know how to implement and run this program. Virtually every community in Colorado has a housing authority that understands deed-restricted work-force housing and none better than Vail.
If you like this idea and believe it has merit, please send it on and pass it around.