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Welfare Housing Recently the city of Mission Viejo, as well as Huntington Beach and Dana Point, have been accused by some critics of restricting the building of “affordable” housing units required under state law. Admittedly, there is a lack of clarity in the state law that sets city “affordable” housing goals. However, it is abundantly clear that selling homes or renting apartments at below-market costs to those who “qualify” for “affordable” housing is simply another form of “welfare housing.” And like other forms of welfare, someone else – taxpayers and other owners – pays the price for this welfare housing. Builders of these units receive special tax credits that other builders don’t. The buyers who pay less than market value also pay lower property taxes. Cities and school districts get less property-tax revenue from these welfare owners. Those who buy the same home at full market value not only pay a higher mortgage, but they pay higher property taxes to make up for the lower taxes the welfare owners enjoy. Being able to buy a $350,000 condo for $100,000 may be a great bargain, but it’s not “free.” This is another example of welfare run amok. Homeownership is a major life goal. For nearly all owners who achieve that goal, they succeed by developing good job skills, working hard and saving enough money for the first down payment. They don’t walk around with their hand out waiting for “free” money for “affordable” housing. Michael Ferrall, Ph. D. |
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