Post by Max on Aug 16, 2007 14:13:59 GMT -3
Should the city be in the business of building subsidized housing units?
This is a poll question taken from the Sudbury Star.
The city has 225 million $ tied up in over 4000 subsidized housing units. The city could increase public housing to nearly 2 billion $ without increasing property taxes by using the following formula.
The city should sell current units to the people who live in them. There would be no money down, no legal fees and a 10 % discount from the market price. For example a 80,000 $ apartment will be sold to the occupant for 70,000 $. No money down and no legal fees. Apartments would now become condos.
Should a residence miss two payments the property automatically reverts back to city ownership and the resident is evicted. Should the resident not do proper maintenance to the property they would also be evicted and ownership reverts back to the city.
Ownership of these properties would build self esteem in the person and instead of paying rent to the city and owning nothing they would have a mortgage payment and own a home. They could take in a student to help pay the bills. As the property value increases so does their net worth and self esteem. These new owners would also become new property tax payers. We currently receive no property tax $ from over 4000 homes.
Once the 225 million $ of housing is sold at a 10% discount the city would have 220 million $ to build more new houses. Once this lot is sold the city would recover 198 million $ to build more homes. This process can be repeated until there is no money left. At the end of the process the city would build nearly 2 billion $ in new housing, create hundreds of jobs over the next few years, create some 20,000 new property tax payers for a revenue win fall, and drastically reduce city staff and current operating expenses. City employees affected would not unemployed, they would be redeployed to other jobs. Many would still be employed in housing as inspectors and to provide the new home owners assistance.
The city would eventually recoup its current 225 million $ investment in housing when the new residences pay property taxes. Money were not recouping now, and never will. Residence who move or want to sell their homes must sell them back to the city plus legal expenses.
What do you think?
This is a poll question taken from the Sudbury Star.
The city has 225 million $ tied up in over 4000 subsidized housing units. The city could increase public housing to nearly 2 billion $ without increasing property taxes by using the following formula.
The city should sell current units to the people who live in them. There would be no money down, no legal fees and a 10 % discount from the market price. For example a 80,000 $ apartment will be sold to the occupant for 70,000 $. No money down and no legal fees. Apartments would now become condos.
Should a residence miss two payments the property automatically reverts back to city ownership and the resident is evicted. Should the resident not do proper maintenance to the property they would also be evicted and ownership reverts back to the city.
Ownership of these properties would build self esteem in the person and instead of paying rent to the city and owning nothing they would have a mortgage payment and own a home. They could take in a student to help pay the bills. As the property value increases so does their net worth and self esteem. These new owners would also become new property tax payers. We currently receive no property tax $ from over 4000 homes.
Once the 225 million $ of housing is sold at a 10% discount the city would have 220 million $ to build more new houses. Once this lot is sold the city would recover 198 million $ to build more homes. This process can be repeated until there is no money left. At the end of the process the city would build nearly 2 billion $ in new housing, create hundreds of jobs over the next few years, create some 20,000 new property tax payers for a revenue win fall, and drastically reduce city staff and current operating expenses. City employees affected would not unemployed, they would be redeployed to other jobs. Many would still be employed in housing as inspectors and to provide the new home owners assistance.
The city would eventually recoup its current 225 million $ investment in housing when the new residences pay property taxes. Money were not recouping now, and never will. Residence who move or want to sell their homes must sell them back to the city plus legal expenses.
What do you think?