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Want to buy a home? The City doesn't want to help.
With all the recent hype about problems affording homes in Los Angeles and several of the Council members endorsing a plan to keep housing affordable, it appears that the City supports home ownership.
However, in an email sent to mortgage brokers, the City has indicated that it will be discontinuing the down payment assistance programs that have been getting a lot of use recently.
The standard problem of lack of funds is cited. When reading the email below keep in mind that the program being cancelled provided up to $90,000 of down payment assistance to people who needed it. This isn't a blanket program that everyone can take advantage of, like rent control, it was specifically aimed at those in need.
The city council and mayor have been complaining about funds, but the city revenue has grown over the past 5 years by at least 5% per year. The total revenue growth since the 02/03 fiscal year to the 06/07 year is 31.11%. Clearly, you must account for inflation which has been 15.69% over the same period.
So the question is where is all the additional revenue going. Are more streets getting paved? More sidewalks repaired? More graffiti removal? It is time to start asking the questions.
Photo by Chad Jones of Gold Coast Real Tours via Flickr
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