Event Summary

Cisneros Addresses “Mortgage Meltdown”

Article by Barbara Garrison, from UDaily

Panelists U.S. Senator Tom Carper (D-Del.), HUD regional director John Bravacos, and Delaware State Housing Authority director Sandy Johnson listen to a question posed by a symposium participant.

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Foreclosure prevention legislation introduced by U.S. Rep. Barney Frank and U.S. Sen. Chris Dodd, could help, Cisneros said, urging a long-term look at the problem. He recommends a “bi-partisan, broad, coordinated comprehensive set of housing policies” that will make housing “affordable.”

The most elemental housing need is more shelter beds, transitional housing and rehabilitation programs for the 800,000 homeless in this country, Cisneros said.

He said high-rise public housing should be replaced with mixed-income townhomes and condominiums, and cited the need for subsidized rentals, low income tax credits and vouchers. “There isn’t one single metropolitan area in America today where a family earning minimum wage can afford the fair market rent on a two-bedroom apartment. It doesn’t exist,” he said.

The next element in assuring the housing market won’t be vulnerable to manipulation is to provide affordable entry-level and move-up housing, Cisneros said.

In cities such as New York, Boston and Chicago, to name a few, he said, officials are invigorating the housing market with programs that bring on the market vacant and underutilized land for low cost housing. He said these and other cities are acquiring land through tax foreclosures.

In King County, Washington, there is a requirement that anytime public land becomes available, it must first be considered for affordable housing.

Cities are rezoning to allow greater density and a greater diversity of housing types, Cisneros said, expediting permits for “smart” sustainable developments, revising impact fees and building codes for renovations, using tax increment financing, shared equity and employer assisted housing.

“This quest for affordable housing is not pie-in-the-sky,” he said, adding that the most effective way to recycle a city is to build affordable homes.