"The US Treasury awarded the state $50.8 million to allow developers to exchange unsold tax credits for cash. In addition, the federal Department of Housing and Urban Development awarded $59.6 million to allow the state to help compensate developers in cases where the sales of their tax credits produced less cash than expected"
FLASHBACK:
A state Senate panel today will recommend tougher measures to crack down on developers who abuse the Massachusetts affordable-housing program by keeping excess profits for themselves instead of returning the money, as required, to cities and towns.
No wonder our towns are going broke!
Everybody takes their hunk of flesh, huh?
The controversial program, known as Chapter 40B, has been marred by builders who inflate expenses, underreport profits, and deprive municipalities of millions of dollars, said Senator Marc R. Pacheco of Taunton, a Democrat who is chairman of the Post Audit and Oversight Committee, which is scheduled to issue the findings of a months-long study this afternoon....
But TAXES HAVE TO GO UP!
Pacheco said: "Every penny that ought to be recouped for the taxpayer should be, and it should be done as soon as possible."
Yeah, sure. Why should it have to come to that, ya bunch of thieves?
At a September hearing before the committee, state Inspector General Gregory Sullivan testified that no mechanism existed to track which projects had been certified for financial accuracy....
As a result of his inquiry, Sullivan found "developer profits were routinely and substantially understated. The results, in many cases, were windfall profits to the developers which deprived the respective municipalities of the excess profits."
The law, although spurring the development of 26,000 units of affordable housing since 1969, has been an irritant for many communities that have lost control over development....
(Sigh, sob)
Pacheco said Chapter 40B will remain controversial because the law allows builders to bypass jealously guarded zoning restrictions. However, he said, the program "at least should be something that is done the way it was intended to be done, in terms of accountability and profits going back to the communities if it exceeds a minimum number."
Despite its flaws, the Post Audit committee concluded, "Chapter 40B has proven to be an innovative and effective method to encourage developers to build housing and at the same time meet the demand for affordable housing in Massachusetts."
Even though they are sticking it to us!
Does a rape victim thank the rapist?
Related: Stimulus Was Stolen
"Mass. to get $110m for housing; Federal stimulus money to revive derailed projects" by Jenifer B. McKim, Globe Staff | July 11, 2009
Massachusetts will receive $110 million in federal stimulus money to build nearly 1,100 affordable apartments during the next two years, jump-starting about 25 developments statewide that have been stalled because of the down economy.
State officials yesterday said the money, from two awards under the American Recovery and Reinvestment Act created by Congress in February, should add at least 1,400 construction jobs at a time when Massachusetts’ unemployment rate has soared above 8 percent....
The construction of 1,100 housing units is significant during a time of increasing homelessness and rising unemployment, said Aaron Gornstein, executive director of the Citizens’ Housing and Planning Association, a nonprofit that promotes affordable housing. Housing projects have come to a virtual standstill during the recession. So far this year, fewer than 3,000 housing units of any kind have received construction permits....
******************
The money will be used to revive projects derailed during the past two years because of the slow sale of tax credits provided through the federal Low Income Housing Tax Credit program. The program, considered the nation’s most important financial resource for affordable housing, awards to developers credits that can be used to reduce taxable income. In turn, developers - often nonprofit agencies - sell credits to investors and banks and use the proceeds to finance construction.
Please see: So it ALWAYS, ALWAYS comes back to DEBT and BANKS, 'eh?
This asshole government also turned OUR PROPERTY over to BANKS so they could LEASE the STUFF BACK TO US with INTEREST?!!
"In the 1990s, the T and other transit agencies were encouraged by federal officials to sell their train equipment to banks and then lease it back. The arrangement brought the T $53 million in upfront payments. In return, the private banks realized a tax benefit"
"The authority was attempting to renegotiate terms of a complex financial deal with the banking giant UBS. Known as a swaption, the arrangement could force the authority to pay out a $450 million lump sum"
NOT a GOOD IDEA at all!!! Thanks, Bill Clinton!
"During the go-go investing years, school districts, transit agencies, and other government entities were quick to jump into the global economy, hoping for fast gains to cover growing pension costs and budgets without raising taxes. Deals were arranged by armies of persuasive financiers who received big paydays. But now, hundreds of cities and government agencies are facing economic turmoil"And the DEVELOPERS got a TAX BREAK OUT OF IT -- and a STIMULUS SUBSIDY for KEEPING EXCESS PROFITS!!!
Time for a TEA PARTY, Massachusetts!! Where are you?
Of course the agenda-pushing a**holes at the Globe are in favor!
But the financial crisis that devastated Wall Street last year hit the tax credit market equally hard, and developers could not sell their credits, or were forced to sell them at reduced prices. Last year, 31 affordable housing projects in Massachusetts were stalled because of funding problems.
Some have since managed to move forward on their own, Gornstein said. For instance, the nonprofit Jewish Community Housing for the Elderly in Brighton has been waiting to break ground on a 150-unit apartment building in Framingham for more than a year. Allan Isbitz, vice president of real estate development for the agency, said the project has been unable to find investors willing to buy low-income tax credits. The agency is now talking to new investors and gearing up to apply for some of the federal funds announced yesterday.
Related: Stimulus Bill is For Jewish Interests Only
Barney Frank Benefited From State Debts
“This money is timely and badly needed,’’ said Isbitz. “It’s difficult for us, and we depend on this money to break ground.’’
I know you do, looter!
Tina Brooks, undersecretary of the state Department of Housing and Community Development, said the US Treasury awarded the state $50.8 million to allow developers to exchange unsold tax credits for cash. In addition, the federal Department of Housing and Urban Development awarded $59.6 million to allow the state to help compensate developers in cases where the sales of their tax credits produced less cash than expected....
The news was greeted with enthusiasm by state and local officials who pushed for the funds as part of the federal stimulus package.
Yup, looking out for me and you!!
Senator John F. Kerry noted that the funding comes at a time when the state is housing more than 750 homeless families - including about 1,000 children - in motels because there isn’t enough room in shelters. The motel accommodations are costing Massachusetts taxpayers nearly $2 million a month.
Like THEY CARE about TAXPAYERS!!!
See: Economy Headed Back Down? (about halfway down)
“This affordable housing investment will help these families and thousands more who are out of work or struggling with reduced incomes,’’ Kerry said.
Oh, this INSULTING GARBAGE is TOO MUCH!
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