The Great Right Hype

Posted by Andrew Macurak on October 1, 2008

In my last post I mentioned that right-wing political attaches and house organs are using ACORN’s troubles, among other things, to attack the landmark Community Reinvestment Act. Today’s press shows that they’re also after affordable housing.

There appeared to be language in the $700 billion “rescue” package that could have funneled an estimated $100 million to ACORN and other groups through an “affordable housing trust fund.” That’s a code phrase for one of the big precipitators of the subprime mortgage house of cards that collapsed and shook to the footer the American economy—giving mortgages to people without financial wherewithal. (“ACORN’S role: Thankfully stripped,” Pittsburgh Tribune-Review, October 1st, 2008)

Whoooaaaa there: How does the provision of affordable housing equal giving money to ACORN to fund mortgages for people “without financial wherewithal”?

Affordable housing, first of all, is not necessarily for sale—often it is for rent by a private landlord, or for rent by a public authority. Renters generally do not hold mortgages.

Affordable housing, second of all, when sold, is not necessarily sold to those without the financial wherewithal to pay a mortgage – it’s sold to those without the financial wherewithal to pay a large mortgage.

Read on:

These groups must be held accountable for not only their histories of questionable practices but for how they will spend this massive cash influx funded by American taxpayers. Appropriate oversight has not been established and the opportunities for fraud within ACORN are rampant. (“CRL: ACORN Will Still Reap Windfall from Financial Crisis,” MarketWatch, September 29th, 2008)

Again, let’s back up a few steps. How does provision of money to support affordable housing equal giving a massive cash influx to ACORN? Affordable housing is not necessarily owned, provided, or supported by ACORN, and no provision of the $700 billion bailout earmarks money specifically for ACORN.

The Wall Street Journal offers some speculation as to the underlying motivation for this attack in an article responding to this summer’s housing bill:

What most riles Republicans about the bill is the symbiotic relationship between the Democratic Party and the housing advocacy groups, of which Acorn is among the biggest…Acorn has been singled out for criticism because of its reach, its endorsements of Democrats, and past flaws in its bookkeeping and voter-registration efforts (“Democratic Ally Mobilizes in Housing Crunch,” The Wall Street Journal, July 31st, 2008)

It’s clear that the work of affordable housing advocates benefits the Democratic Party’s constituency, but this blanket attack on providers of a service to the poor is akin to if Democrats were to attack veterans’ benefits on account of veterans’ propensity to vote Republican. (Nevermind that, in reality, it’s Democrats that support veterans’ benefits.) Steven Adamske, spokesman for Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, comments

In the end, how much of the bailout’s potential profits are earmarked for ACORN? “None. Absolutely none. All funds would go to state and local governments,” said [Adamske]. State and local governments can then dole out the funds and could send money to ACORN if they so choose and if the organization’s efforts meet the standards set out in the law.” Are they worried that the Governor of Alaska and the Mayor of Wasilla will give money to Acorn?” (“ACORN Issue Fueling Bailout Opposition,” CBS News, September 27th, 2008)

The right-wing’s condemnation of affordable housing for the sins of ACORN is as ludicrous as condemning all corporations for the sins of Enron. (As opposed to condemning all corporations for the sins of AIG and Bear Sterns, that is.) Without making comment or passing judgment on ACORN’s issues, support for affordable housing must not and cannot be conflated with funneling money carte blanche into that particular organization—or with giving huge mortgages to potential homeowners with no source of income. Affordable housing is much more than that.

Affordable housing is where the service workers upon which our daily lives depend live. Affordable housing is where the disabled and retired can live with dignity. And affordable housing is in short supply in many of America’s most booming job markets. If American taxpayers can bail out Fannie Mae and Freddie Mac—and what are those, if not America’s largest affordable housing program—then vulnerable renters and homeowners deserve something.

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