With so many of our government agencies and spending priorities as a nation, I try to take the approach of ‘what if we were starting a country from scratch today, how would we set things up’.
Based on what we all know, about how the federal government is only supposed to be doing those things that the states either cannot do, or cannot do as well as the federal government, wouldn’t you think that dealing with housing and urban development would be something the states and local governments would be able to do or should be able to do?
Perhaps a small federal agency to coordinate and facilitate between and amongst the states and municipalities to help foster best practices is worth having, but isn’t it a total cop out and failure of leadership in dealing with the root problems that even cause housing and urban development problems to begin with that makes a federal agency like this even come into existence?
If I had to summarize my views on HUD…..1) I believe in the work it is doing, I’m just not sold on the idea that it all needs to be done by the federal government, at least not at this stage of our history….maybe 50, 75, 100 years ago, but not necessarily now, 2) we need to try and offload as much of what it does to the states as possible, and 3) we do still need to keep federal oversight of Fannie Mae and Freddie Mac since they are nationwide financial institutions.
Other than that, I’m hard pressed to see what the federal government can do that is so special that states and municipalities cannot do when it comes to affordable housing and developing and revitalizing their urban areas.
What the federal government should be focusing its time and effort on is fixing the root problems that cause the symptoms of housing and urban development issues….and that is education and economic opportunities and fostering economic growth.
The federal government does not belong in the housing business.
Perry Waag 