State Representative — 86th District
When asked to write a column for The Paper I had visions of expounding in erudite fashion on the myriad problems facing our country, state, city and neighborhood — in that kind of language. Scratch a politician and you usually find a frustrated Joseph Kraft, Stewart Alsop and Art Buchwald.
The first column, I had hoped, would provide an overview of the significant changes now occurring in the way the Federal Government does business. An earlier draft, for instance, contained such statement as:
The role of the Federal government as an active advocate for the poor, the hungry, the have-nots, is under attack. And if it succumbs, a minor governmental revolution and a major redistribution of power will have been brought about by an ax-wielding Nixon Administration.
Lofty, hun? After some thought, however, I realized that anyone who takes time to read this column also reads other papers, magazines, and periodicals. And the “big picture” has been offered and reiterated in every Op-Ed page of every newspaper large enough to have one.
The real subject is what does the focus of so much newsprint mean to those of us who live in an area fighting for its survival in a city struggling for its life? In slightly more than 400 words.
In one important area — housing — initially at least it means that new redevelopment projects will be harder to finance. Why? Because FHA, as we have come to know it in its post-1968 Housing Act form, is going out of business. Disasterous? Not necessarily. Certainly no more so than when FHA blindly took the plunge into social engineering in the first place.
Anyone who believes that FHA did a bang-up job in servicing our area’s needs will mourn its demise. But I wouldn’t bet on a big wake.
The implications? In short, if there is to be a systematic program to upgrade our states 503,074 housing units found to be unsound or lacking in adequate mechanical facilities during a 1970 housing survey — 34% of all housing units in Missouri — it must come from sources other than the federal government.
In our area, Federal retrenchment means that several of last years Section 353 Redevelopment Proposals will have extremely tough sleding. For instance, the 200 unit Kingsbury and Westminster will not be built with HUD assistance as originally submitted under Section 236 of the 1968 Housing Act. Neither will Project Rehab in the Urban Renewal Area. And Forest Village, bounded by Clara, DeBaliviere, Delmar and Waterman needs additional help from sources other than the Federal Government. The Union-Sarah C-3 project is furthest along, but with the new Federal nervousness, it too may need additional non-Federal help.
The answer? There isn’t any one answer. FHA will still insure development to some extent, more state help is being demanded. There are some promising options closer to home. The most promising is the fledgling Missouri Housing Development Commission — in this age of acronyms, MHDC. MHDC was created by the 75th General Assembly to provide housing for low and moderate income families. It has the tools to be effective. MHDC can borrow money and issue negotiable bonds or notes to finance its undertakings. Its first development loan was made on December 28, 1971. Within two years of that initial loan MHDC will have provided for the financing of 1,714 units valued at $33,477,451.
An important first step? Yes. But… at that rate it would take MHDC 250 years to correct the inadequate housing in Missouri — if the housing stock and population remained in a state of suspended animation. “If we had world enough and time”… etc.
And yet that first step has been taken. And a second step is about to be. Until this year, MHDC has been working under a tremendous handicap. MHDC loans, in the past, have been contingent on the developer obtaining FHA mortgage insurance, first. That’s enough to render Samson weak and Bella Abzung dumb.
But this year, MHDC has requested, and should receive, the power to insure its own undertakings. In fact, my first successful attempt to amend a piece of legislation recently increased to MHDC’s Reserve Insurance Fund by $500,000, bringing the total development pot to $2,000,000.
Small potatoes? Sure! But at a 20:1 ratio of outstanding mortgages to insurance reserves, the $2,000,000 included in the Appropriations Committee Bill would be sufficient to accommodate $40,000,000 in mortgages.
To the Central West End, that means that Redevelopment plans which would have died from economic malnutrition under the new Federal requirements are still alive. And, I have found the developers are all interested in working with MHDC.
Granted, the Missouri Housing Development Commission has a big gap to fill. The Feds have blown billions on housing during the last five years. But it’s worth a try. Because if it works, there will be more local control, which I’m convinced is good — and perhaps essential.
And after all, our options are limited. Because after sitting through the first round of Appropriations hearings, it looks like Washington means business.
Original photograph caption
Original portrait printed with Steve Vossmeyer’s Representative Report, The Paper, April 1973, page 5. Individual photographer not credited.
Originally published in The Paper, April 1973.
Read this article in the original newspaper issue.
Original source: SD_Times1973_04.pdf, printed page(s) 5, 7.
