Newark City Council: Tax Dollars for Winnie the POOH?
As we start our research on different towns, it’s devastating what we’re finding local politicians doing with their constituents’ tax dollars.
But let’s start with this question: How much money did YOU give the City of Newark last year? (Make sure to include the water bills)
It would probably be nice to have some of that money right now, wouldn’t it?
We willingly allow the city to take it from us by taxation because we figure it’s going to, say, “roads, bridges, water and safety,” right?
Think again. Somebody’s got their hands in the honey jar! And it isn’t Winnie the Pooh, after all.
In a continued assault against poor, middle-class renters in our community, Newark Council is doubling down on their efforts to get rid of rental properties in the city entirely. And they’re giving YOUR tax money to NEW NEIGHBORS in order to do it.
At $50,000 per person, 0% interest, and no requirement to pay back, this is the kind of stuff that starts bar brawls.
Codified into law as Section 17-6 of the Newark Municiple Code through Ordinance Number 05-25, Amendment Number 1, which passed on 9/12/2005, the Promoting Owner-Occupancy Homes (POOH) loan program is becoming the ultimate, local example of Delaware politicians playing the Fannie Mae/Freddie Mac banking game with local citizen money.
How much taxpayer money? Up to $250,000 a YEAR. Note: The bill was passed in September, 2005. From 2006 – 2012, that would equal $1,750,000.
What does a person need to do in order to get a free $50,000? Buy a house that currently has a rental permit and promise to live in that new house, not rent it.
How many of you could make a promise not to rent out your house? Maybe you should be getting some Christmas Cash!
But it’s even worse than the bankster games that help bring the national crisis in 2008. These loans are given out with no requirement to pay back, unless the house is ever sold or transferred. (This actually sets up a problem when the homebuyer becomes deceased. Is their poor family picking up this tab??)
That’s right. These are not loans. These are free handouts of YOUR money. Or, at least, money you thought was going to something that might get rid of some of those potholes that are hard on the tires.
And it gets even better: If the house is sold or transferred, not only does the person need to pay the loan back, but Newark gets an equity share in the appreciated value increase of the home.
Those Council members took another move right out of the playbook of the big banks: Hand out other people’s money at the start and leave even the receiving borrower with less at the end.