Michael Hohmann inquires: The rent subsidies also allow renters a degree of locational flexibility. I imagine there are problems with which sources of funds are available, i.e. funds to subsidize new construction vs. direct rent subsidies, federal vs. state vs. local funds, etc. Also, I believe many landlords dislike the Section 8 program. Any comments from knowledgeable government folks (MCDA, MPHA, state/local folks, etc.) and private landlords? Craig, Vicky, Keith...?
Vicky Replies: I can address the "sources of funds" issue. Section 8 vouchers require real cash, that is, out of HUD's pocket/budget. New construction financing gets FRESH MONEY (doesn't come out of any government budget.) Municipal bonds are sold to rich folks, pension funds, etc. who wish to avoid paying taxes. Government agencies (MCDA for example) get paid big fees for underwriting the bond issues. Rating agencies (Standard & Poors for example) get paid big fees for "rating" the bond issues. Brokers (Steve Yanisch, via Piper Jaffray and Dain Bosworth for example) get paid big commissions for selling the bond issues. Purchasers of the bonds (the Yanisch family for example) receive tax free interest and zero risk - 9% interest in the case of the Orpheum Theater bonds. If a developer adds a handful of "affordable" units to the development - he or she gets an extra bundle of money and other goodies, including reduced property taxes. Some of these municipal bond issues are guaranteed by the "full faith and credit" of the taxpayers. Others are not. The Target Store bonds were "pay as you go" (not guaranteed) in the beginning. When interest rates dropped, the bonds were re-financed and OOPS - all of a sudden the taxpayers are on the hook. Sneaky little devils. Vicky Heller Cedar-Riverside and North Oaks TEMPORARY REMINDER: 1. Send all posts in plain-text format. 2. Cut as much of the post you're responding to as possible. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
