Contractors Cash in on HUD Program, Not Poor

[UpInArms]

Source: Fox

LOS ANGELES — A federal program designed to help poor families buy affordable homes has actually been lining the pockets of investors and contractors.

A Los Angeles Times investigation found that the Department of Housing and Urban Development's Dollar Homes program has rarely achieved its stated intent to help struggling families put down roots.

The program was mandated by Congress in 1998 and has little oversight, the newspaper said.

The program allows local governments to buy homes for $1 to fix and resell them at a discount to poor families.

More than 2,300 homes have been sold through the program nationally.

Of the 326 sold in California, 62 homes were bought by the city of San Bernardino. The city doesn't track what happens to the homes after they're sold, but the Times investigation found that at least 43 were sold to contractors and investors, and often resold for three times the original sales price.

Read more: http://www.foxnews.com/story/0,2933,514704,00.html

[bluestateguy]

1. This has happened before

The Model Cities program of LBJ's Great Society was taken advantage of the same way too.

[babylonsister]

2. Fux??

http://www.forbes.com/feeds/ap/2009/04/10/ap6279516.html
Feds help Colo. buy, fix, resell foreclosed homes

http://www.thehour.com/story/467802
Free foreclosure help available, Himes says

http://www.thecharlottepost.com/index.php?src=news&srctype=detail&category=Business&refno=1609
HUD help for first-time homebuyers

[UpInArms]

4. ...

:blush:

I was approached by a former employer a long time back with this exact scam of government monies - needless to say, I refused and this creep said:

You're just not very motivated by money, are you?

[LongTomH]

3. This will happen every time!

Every time a lot of money is spent - for an purpose, including laudable ones - where there isn't strict oversight; no 'cop on the beat'. Mr. Obama's recovery plan needs is a lot of cops on the beat to oversee every expenditure, every contract handed out.

[corpseratemedia]

5. gotta replace all those * non-cops

and soon

[xchrom]

6. kick