Making Housing More Affordable

We applaud your recent series of articles focusing on the crisis in affordable housing in Southern California. And we agree, for the most part, with your editorial (“Holes in Housing Policy,” Sept. 7). However, we must take exception to your conclusion that “the housing squeeze is best dealt with at the state level.” All of the enabling programs that the federal and state governments can enact to solve the problem are for naught if there is no concerted matching effort at the local level. Local governments, with support from their constituencies, are best suited to address the myriad of issues related to creating new housing. At the state level, we can encourage the creation and preservation of affordable housing but we cannot create it without significant community support.

Your editorial leaves the mistaken impression that there is little being done at the state level. On the contrary, the California Housing Finance Agency has taken steps to “create more homeowner assistance programs that make it easier to get into a first home.” Since April, low-to-moderate-income first-time home buyers in L.A. County (and other high-cost counties) can now obtain a CHFA 30-year, no-down-payment loan with a fixed interest rate that is generally one full percentage point under current interest rates. And in partnership with selected local governmental programs, we offer a further reduction in interest rate if the local government assists with paying the closing costs. CHFA is also taking an active leadership role to “preserve 110,000 affordable housing units, largely for seniors and families with children, as federal subsidies expire.” In our recently enacted $7.5-billion, five-year business plan, $750 million has been earmarked for preservation of this vitally needed affordable rental housing stock.

We would like to do more to address the problem, but we are con-strained by a federally imposed limitation in our ability to sell the tax-exempt mortgage revenue bonds. However, there is a measure currently before the Congress, (HR 979), which if passed, will increase by $800 million our authority to sell bonds.

THERESA A. PARKER

Exec. Dir., CHFA

Sacramento