Government Meddling Distorts the Housing Market


This Washington Examiner editorial discusses President Obama’s HUD program, called “First look,”

which gives state and local governments and nonprofits first dibs on purchasing foreclosed properties for “affordable housing.
The government not only loses money where ever it is involved but it also completely distorts the regular marketplace.  Government involvement also increases the likelihood of corruption becoming involved.
Not only is First Look the wrong approach to help the housing market, it also invites corruption by groups like the Association of Community Organizations for Reform Now. Consider NeighborWorks America, whose chairman is a director of the Federal Deposit Insurance Corp. The group “assists over 3,000 community-based organizations and oversees the support of a national network of more than 240 affordable housing and community development organizations.”

The Reno Housing Authority is competing with investors here in Reno however, I am not aware if they are involved with First Look.

Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/Government-meddling-distorts-the-housing-market-782344-102449349.html#ixzz0z5vY47Jf

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About rereno

Real estate investor
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