All too often, in the flurry of legislative activity, the true impact of certain bills on specific areas is lost in the shuffle. Sometimes that impact is good; sometimes not.
One of the proposals which I’ve sponsored should have a favorable impact on our neighborhood. The bill,
House Bill 780, would expand the functions of the Missouri Housing Development Commission (MHDC), and would make it easier to obtain residential loans in areas in which private lenders are reluctant to make loans. It would expand the present construction loan program and allow individual homeowners to receive loans.
In addition, it would authorize two new programs; a rehabilitation program and a “loans to lenders” program. None of these programs require any expenditure of state tax revenues, as they are financed by the sale of bonds by the Commission.
Under present law residential loans are made only to limited-dividend or nonprofit corporations, and public agencies. As a result, the Commission’s ability to stimulate the construction and rehabilitation of single-family homes and to aid individuals attempting to purchase or improve a home is limited.
In the past, housing programs have concentrated on the construction of multi-family housing. The rehabilitation of existing housing, especially of single-family homes and small multifamily homes and small multi-family units, which is so important to our area, has been neglected.
House Bill 780 would allow the Missouri Housing Development Commission to make loans to individuals for the construction or rehabilitation of housing. This provision would allow individuals to make use of older housing that is in need of repair but is still potentially valuable. The bill would also allow the Commission, in conjunction with local governments, to use federal Community Development funds in rehabilitation programs.
In addition to the individual rehabilitation programs, areas such as “Skinker-DeBaliviere,” which have difficulty obtaining residential loans will benefit from the “loans to lenders” program. This program would authorize the Commission to make loans to banks and other financial institutions, on the condition that the money be used to finance construction or rehabilitation of housing in areas specified by the Commission.
This bill is in better position than most for passage by the House of Representatives this session. However, the pace of legislative action has been slow this year. And passage by the Senate remains even after House action.
Even if House Bill 780 does not become law this year, its concepts and acceptance by interests involved in housing could have a major and favorable impact on our area.
Original photograph caption
Steve Vossmeyer, State Representative, 86th District. The Paper, May 1975, page 9. Photographer not credited.
Originally published in The Paper, May 1975.
Read this article in the original newspaper issue.
Original source: SD_Times1975_05.pdf, printed page(s) 9; PDF page(s) 9.
