HOUSTONIANS PROMISED HELP MY NOT GET IT RIGHT NOW!
FOX 26 NEWS AND THE INSITE HAVE LEARNED THE CITY OF HOUSTON'S DOWN PAYMENT ASSISTANCE PROGRAM IS ESSENTIALLY BROKE WITH POTENTIALLY DOZENS OF PEOPLE LEFT HOLDING WORTHLESS IOU'S...SOURCES TELL FOX 26 AND THE INSITE THE CITY CONTROLLER 'WAS FORCED' TO ESSENTIALLY SHUT DOWN THE PROGRAM YESTERDAY WHEN AUDITORS LEARNED THE FUND SET UP TO HELP WITH DOWN PAYMENT ASSISTANCE WAS MORE THAN $9 MILLION DOLLARS IN THE HOLE - THE RED. THIS AFFECTS A LONG LIST OF PEOPLE WHO WERE PROMISED FINANCIAL ASSISTANCE BY THE CITY'S HOUSING DEPARTMENT. THE PROGRAM WAS DESIGNED TO HELP THOSE WHO TOOK PART IN A CITY MANDATED CREDIT EDUCATION COURSE TO BUY A HOME. WE'RE TOLD ON THURSDAY CITY CONTROLLER RONALD GREEN WAS NOT ABLE TO CERTIFY THE HOUSING DEPARTMENT HAD FUNDS IN ITS ACCOUNT TO CONTINUE THIS PARTICULAR PROGRAM. WE'RE WORKING TO GET YOU MORE DETAILS AND JUST HOW MANY PEOPLE THIS WILL AFFECT.
Therein lies the rub with programs designed to redistribute wealth with "other people's money". Eventually you run out of other people's money.
ReplyDeleteI question the wisdom of giving money to people who are unable to qualify for loans in order to encourage people to buy houses they cannot afford. Wasn't that what got us into this mess to begin with?
can anyone explain why this was not uncovered by the last controller, are some of these people alseep on the job...jesus please take the wheen !
ReplyDeletehow is a program in the hole when its federally funded.
Native,
ReplyDeleteI'm hearing part of the problem is those in charge never pursued reimbursement as they should've as money went out!
Rorschach,
ReplyDeleteHere lies some of your misunderstanding. Thankfully, I was able to close on my house prior to the program being shut down. To say that people are given money who do not qualify for loans is inaccurate and naive.
In order to even qualify for the money, you have to be able to qualify for a loan, otherwise you will not be able to receive the grant or the loan for that matter.
I work in higher education, and I am working on an advanced graduate degree. Without this program, I would not have been able to purchase a house since I do not have all the money needed for a down payment and closing costs. What that program does, is provide an opportunity for those who would not be able to qualify because they do not posses the money needed for a down payment. My current mortgage is less than what I would pay in rent, and allows me to build equity that I would not have been able to do otherwise.
Thank you, MeOneMeUs, for setting the record strait. The people who are applying for this program must go through the loan process just like anyone else buying a house. And on top of that, they must fill out a city application and provide the additional documentation required. And no, we are not "welfare" slackers or "lazy" bums. I have a graduate degree and am working in a "helping" profession - hence my moderate income. I am three weeks from closing on my first house and the city has just pulled the rug out from under me and a lot of other people in the application progress for these programs. I hope this mess is fixed very soon. A home of one's own is a dream come true - let's make it happen.
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