[Vision2020] Affordable Housing

J Ford privatejf32 at hotmail.com
Fri Nov 2 05:42:46 PDT 2007


Not if you use your brain...the longer something remains on the books as a liability, the less chance of any profit being made much less a good profit being made.  Common sense - get it moving, make the profit and be done with it.



J  :]


From: jampot at roadrunner.com
To: privatejf32 at hotmail.com; vision2020 at moscow.com
Date: Thu, 1 Nov 2007 14:31:57 -0700
Subject: Re: [Vision2020] Affordable Housing










So how does "desperate to unload a while elephant," square 
with "They want profit, not just to get rid of things?" The two statements seem 
to contradict one another.
 
g




  ----- Original Message ----- 
  From: 
  J 
  Ford 
  To: vision2020 at moscow.com 
  Sent: Thursday, November 01, 2007 12:56 
  PM
  Subject: Re: [Vision2020] Affordable 
  Housing
  
They don't want to operate at a loss, either, fella!

Did 
  you happen to see what happened to the CEO of Merrill/Lynch this week?  
  He's out due to his taking a gamble on the housing industry and LOOSING big 
  time - to the tune of BILLIONS of dollars.  Not something a bank is 
  knowingly going to go into nor wish to stay in if they can help it.  So 
  taking a white elephant and un-loading it to the first guy with a buck is not 
  going to cut it.  They want profit, not just to get rid of 
  things.

And this is NOT affordable housing...it's a "garage sale" 
  mentality that no one wants.  The person buying into such a house is more 
  encumbered than you realize when they get into such a house.  It is NOT 
  affordable to anyone.

J :]



  
    
    From: jampot at roadrunner.com
To: privatejf32 at hotmail.com; 
    vision2020 at moscow.com
Date: Thu, 1 Nov 2007 07:37:40 -0700
Subject: 
    Re: [Vision2020] Affordable Housing


    Perhaps you or some other "progressive" would like to 
    explain the error in my thinking? Goodness knows I'm not a property/finance 
    expert but, it seems obvious that banks, and more importantly their 
    shareholders don't need or want liabilities ("white elephants") cluttering 
    up the P&L statements. As the houses stagnate on the market the price 
    will drop until it becomes attractive to someone. The very definition of 
    affordable housing. 
     
    g
    
      ----- 
      Original Message ----- 
      From: 
      J 
      Ford 
      To: 
      vision2020 at moscow.com 
      Sent: 
      Thursday, November 01, 2007 6:46 AM
      Subject: 
      Re: [Vision2020] Affordable Housing
      
Yeah - now THERE's some progressive thinking going 
      on!

"Wouldn't that be the market sorting it self 
      out? Doesn't one mans (or banks) "desperate to unload white 
      elephant" becomes another mans affordable housing?"  
      gc

J :]



      
        
        From: jampot at roadrunner.com
To: privatejf32 at hotmail.com; the_ivies3 at yahoo.com; vision2020 at moscow.com
Subject: 
        Re: [Vision2020] Affordable Housing
Date: Thu, 1 Nov 2007 06:39:03 
        -0700


        "I believe sooner or later, we will see a bunch of 
        houses sitting empty with banks desperate to unload a while 
        elephant."

        Wouldn't that be the market sorting it self out? 
        Doesn't one mans (or banks) "desperate to unload white 
        elephant" becomes another mans affordable housing?
         
        g
        
          ----- 
          Original Message ----- 
          From: 
          J Ford 
          To: 
          Tom 
          Ivie ; vision2020 at moscow.com 
          Sent: 
          Thursday, November 01, 2007 6:15 AM
          Subject: 
          Re: [Vision2020] Affordable Housing
          
The thing is, communities around us are selling houses 
          at half to one quarter the prices seen in Moscow and renting for far 
          less than Moscow.  The community and developers (yes, they set 
          the price of the houses they build) need to get together and become 
          educated in what really sells, how it sells and why it sells.  
          The housing in Moscow is just ridiculous when you consider other 
          towns, with larger populations, are seeing houses going for so much 
          less.  I think for a town like ours to have SO many developments 
          with SO many houses in each one is just short-sighted or no-sighted 
          and I believe sooner or later, we will see a bunch of houses sitting 
          empty with banks desperate to unload a while elephant.

I also 
          believe that if Moscow continues to rely on UI or WSU to be 
          main-stayers in the employment fields, we will see a major decline not 
          only in students coming to the area but people staying here.  If 
          the current plans to move the UI colleges to other parts of the state 
          holds true, it will especially hurt us if we don't do something about 
          attracting other types of industry to this area.

Its all fine 
          and well that "New Cities" was accepted by Moscow to be the new vision 
          of things to come, but nothing is going to really pick the area up 
          economically if we can't be more supportive in developing business 
          opportunities rather than housing developments.  Can't sell what 
          people can't pay for due to lack of jobs.

Nor do we need to 
          continue to allow some groups in Moscow to become/remain tax-exempt 
          but owning HUGE amounts of commercial properties, yet 
          service-demanding.

J :]



          
            
            Date: Wed, 31 Oct 2007 20:58:17 -0700
From: 
            the_ivies3 at yahoo.com
To: vision2020 at moscow.com
Subject: Re: 
            [Vision2020] Affordable Housing


            Hi Donovan,
            I agree with you on this one and as you point out, this was a 
            problem WAY before our current city council.  However, there is 
            also another element to affordable housing.  What I am talking 
            about is entry level starter homes.  Not to blame the 
            developers, because I don't know that it is their fault, but the 
            cost of land is not affordable, this gets passed onto the 
            homebuyer.  It is probably a matter of economics that the 
            developers or builders build $200,000 on up homes on the 
            property.  I don't blame them for wanting to get the most money 
            out of their investment.  The fact is that salaries have not 
            gone up at even close to the same rate that housing prices 
            did.  There has been a lot of purchasing of homes done in a 
            manner of creative financing that neither you or I could even try, 
            but those buying strategies have caused some tapering off in the 
            housing market as a direct or indirect result. Does that higher 
            market affect affordable housing?  I think it might.  But 
            I don't know how to explain myself on it.  Maybe someone can 
            takeover from here and explain if I am onto something.  And the 
            same is true if I am completely wrong.  I don't mind learning 
            something new.

Donovan Arnold 
            <donovanjarnold2005 at yahoo.com> wrote:
            
              Joe,
               
              While I certainly am not a trained expert, I have had 
              extensive experience trying to find affordable housing in Moscow 
              and worked with many others also trying to afford decent housing. 
              
               
              When I was in the ASUI Senate, one of my living groups was 
              Family Housing. That caused me to investigate the 
              situation because of the frequent and prevailing 
              problems these families had trying to find adequate housing in the 
              Moscow region. 
               
              I also worked with people with disabilities and could not by 
              law work more than a few hours each week or face losing their 
              medical care which was paramount for their survival. 
               
              In my own personal quest for housing, I also had trouble 
              finding anything decent and affordable in Moscow. 
               
              Here is why I think finding decent housing is unaffordable in 
              Moscow for many people;
               
              Income restriction. If a couple or two adults make more than 
              $24,000 gross, combined, they do not qualify for low income 
              housing. If they do, their rent is still usually about $500-$650 a 
              month plus utilities. So two people making $24,000, net 
              $20,000, must spend about $7000 on housing and utilities. 
              Giving them only $6500 a piece to live on for the whole year, not 
              a fun situation to be in! 
               
              Another encroachment is the education exclusion for low 
              income housing. You cannot be a full time student at UI and 
              legally live in most low income housing units. Undergraduate 
              students taking more than 8 credits, or graduate students 
              taking more than 6 do not qualify for most of the low income 
              housing units in Moscow. Another person that doesn't qualify is a 
              student trying to get his or her GED. If they are taking classes 
              to get a GED, you cannot get into low income housing BECAUSE you 
              are full time student. 
               
              Market rate based low income housing assistance is also 
              a problem in Moscow. That is where the federal government simply 
              discounts housing units by about 20% below the market rate. For 
              example, a housing unit that is a two bedroom, one bath unit on 
              the open market in Moscow would be about $625. So the rate is 
              reduced only to about $525 a month. Still unaffordable 
              because Moscow's housing market is so tight, you cannot get the 
              rate to be affordable for many Moscow residents. 
               
              Next, you also have rent based rent. These units 
              are limited, hard to get into, and generally places you don't 
              want to live unless you have absolutely not other choice. 
              Unless you are on Section 8, which is hard to get into 
              and find a place, on want to live in a tiny cramped 
              noisy studio apartment, you are pretty much screwed 
              out of a decent affordable housing unit in Moscow. 

               
              I would also like to point out, that the problem with Moscow 
              housing is that there simply is not enough housing for the 
              population. Moscow has one of the highest per cap. unit in the 
              state, over 21,000 people for just 8,000 
              units. That drives the rent way up. 
               
              The people, that I think have the hardest time, are those 
              that make between $18,000 and $24,000 a year. Because at that 
              rate, you don't qualify for any type of government assistance, not 
              housing, not food stamps,not medical care, and very 
              limited  education assistance if any. $18,000-$24,000 is 
              not enough to pay for housing, food, medical care, transportation, 
              and other basic needs in Moscow when you have no assistance. 
              
               
               
              Because of rules and restrictions on low income housing, many 
              low income housing units sit empty while many who need those 
              housing units are not allowed in.
               
              My suggestion would be to either change the rules so low 
              income housing units get filled up, or build so much housing that 
              the prices fall from competition. 
               
              Best,
               
              Donovan
               
               
               
               
               
              

Joe Campbell <joekc at adelphia.net> 
              wrote:
              In 
                her recent letter to the editor, Shelley Bennett writes this 
                about development:

"... in order to get companies to 
                locate in Moscow, we also need affordable 
housing options 
                and support services that make living here affordable. The 
                
actions of the current mayor and many members of the City 
                Council have 
done everything they can over the course of the 
                last few years to make sure 
we do not have affordable 
                housing options."

I don't know much about affordable 
                housing. What I do know, I learned from 
Aaron Ament, who is 
                a City Council member, and Bob Stout, who served 
longer on 
                City Council than Tom Lamar. Bob was in favor of affordable 
                housing, 
it was a key issue in his campaign two years ago. 
                Aaron, too, is in favor of 
affordable housing. I have little 
                reason to believe that Lamar, or Linda Paul, 
or Evan Holmes 
                would not be in favor of affordable housing.

I have two 
                questions.

Is what Bennett says true? Has the council 
                made affordable housing options worse?

Doesn't affordable 
                housing begin at the point of development? 

I think so. I 
                think that the developer has a lot more control over costs 
                
than any city council, especially if we're restricting 
                government in the way 
that Jeff thinks we should. The 
                difference in the cost of a single house with 
city fees vs. 
                without them is negligible, I imagine.

But maybe there is 
                something I'm missing.

Best, 
                Joe

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