A Fruitless Effort

Tribune story this morning "2 suburbs move on affordable housing". The "affordable housing" law targeting 49 affluent Illinois communities is another illustration of the symbolism over substance of the Blagojevich administration---showy but no way to pay for it.

Formerly known as the Builder's Appeal Act, it was pushed through under the radar by Rep. Julie Hamos and State Sen. Jeff Schoenberg, among others, to further the interests of their friends, those profitable non-profits. Not to mention some other prominent real estate donors to the Democrat party and their proteges at IHDA. These stellar public servants held hearings in Chicago and around the state, but not in their own district, among the communities most affected.

So, as the Tribune story suggests, unless communities assert home rule, or fight it is as unconstitutional, they may be forced to squander millions on high priced land in order to prop up a few old homes or condos to award to a select few. Glencoe's average home price is $1 million, Wilmette's about $750,000. The state defines AH as selling for $125,000 or less. You do the math on the gap. Even Wilmette's Mallinckrodt senior condos don't qualify. Their supposed AH condos, essentially subsidized by other condo buyers, cost just under $200,000. The other units start in the $300,000s and go up to $1 million.

And unless they find a George Soros or his ilk to swan into the community, it may be financed by raising taxes on senior citizens and their retirement nest eggs through teardown taxes. Since this scheme is a money pit, I anticipate more taxes will be forthcoming, as Highland Park has done, making it more expensive for young families and single moms to live in Wilmette. The middle will be forced out, exacerbating income divides. A new second-class citizenry will be created, as the law will lock them out of realizing the financial gains of owning their own home, and passing them on to their children. They will be denied the American Dream by the same government that purports to help.

Supposedly this affordable housing will go to local government employees who wish to live in town. Aside from the fact that company towns went out of style over a century ago, most if not all full-time employees make too much to qualify for affordable housing. And if they don't, then raise their salaries.

Right next to this story in the Trib is another one, "Urban League shifts focus to economic empowerment":

The organization plans to concentrate on building businesses, workforce diversity and commercial real-estate development, league president and CEO Cheryle Jackson told the Tribune editorial board earlier this week.

The announcement comes as Urban League chapters nationwide are increasingly promoting economic rights as the "next civil rights frontier" for blacks.....

"We're focusing on entrepreneurship because it creates jobs and generational wealth," said Jackson, who became chief executive of the 1,000-member league in October.

This is the way to go. The push for "affordable" housing on the north shore is wrongheaded, raising the bar for working families and locking needy families out of the American Dream. It's a misuse of resources, defies common sense, and in the end is a fruitless effort.

UPDATE: For example, Wilmette starting salary for a policeman is $55, 631. According to HUD stats in the Chicago area (last section), the AH qualifying cap for a family of one at 100% of median income is $52, 800. After 5 years, the Wilmette policeman's salary would be $72, 441. If he's married, no children, presumably the spouse works, bringing in another salary.

UPDATE: In case you didn't know, Chicago is exempt from this bill. They are not building affordable housing on the liberal Gold Coast.