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Corruption Chronicles

Govt. Studies Prove Need For Costly Minority “Housing Counseling”

In an apparent effort to justify giving leftist groups tens of millions of dollars to provide low-income populations and minorities with “housing counseling,” the Obama Administration has released two in-depth studies that conclude the government-funded program is the best thing since sliced bread.

Furthermore, Uncle Sam must keep doling out the cash for this noble cause, according to the government’s own findings. This seems to be a response to coming under fire for pouring huge sums of taxpayer dollars into the coffers of leftwing community groups that help minorities seeking a good home or struggling to keep one on the verge of foreclosure. In the last few months alone, the nonprofits have received $42 million.

Among them are hundreds of national, regional and local organizations like the powerful open borders group with close ties to the president, the National Council of La Raza (NCLR). Earlier this year the NCLR, whose federal funding has skyrocketed since one of its top officials got a job on the Obama White House, got nearly $2 million to help combat predatory lending, train poor Latinos about financial literacy and help them become homeowners.

The National Community Reinvestment Corporation, a famously liberal activist group that seeks to eliminate “discrimination” in housing and mortgage lending, and the equally leftist National Urban League, which advocates for social justice and claims voter identification laws are racist also got a chunk of change this year. The first group received $2.5 million from Uncle Sam and the second got $1.05 million.

The money couldn’t go to a better cause, according to a pair of studies financed by American taxpayers to justify the waste. The first is documented in a 197-page report titled “Foreclosure Counseling Outcome Study” and the second in a 91-page “Pre-Purchase Counseling Outcome Study.” Nearly 70% of those who received housing counseling were able to avoid foreclosure, according to the first report and pre-purchase counseling really helped a “diverse group of low- to moderate-income individuals obtain useful information” that led to home ownership.

In short, “housing counseling significantly improved the likelihood homeowners remained in their homes” according to a Housing and Urban Development (HUD) press release announcing the reports this month. The announcement is appropriately titled “HUD Studies Show Housing Counseling Helps Families Prepare for Home Ownership and Keep the Homes They Have.”

The key phrase comes via HUD’s Assistant Secretary for Policy Development and Research, Raphael Bostic: “These two studies underscore the need to continue supporting housing counseling programs across this country, especially during this period when families need these services the most.” He continues: “The evidence is clear, with a little investment on the front end, we can go a long way toward improving the chances families will buy a home they can afford and sustain their homes in the long run.”


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