Liberals never let a crisis go to waste, and sadly for America’s landlords and real estate developers, the current pandemic is no exception.
Far-left lawmakers including members of “The Squad,” Reps. Ilhan Omar, D-Minn., Alexandria Ocasio-Cortez, D-N.Y., Rashida Tlaib, D-Mich., and Ayanna Pressley, D-Mass., are exploiting the crisis to advance their social justice warrior agenda at the expense of property owners. They seek to punish landlords by forcing them to provide free rent for all tenants impacted by the coronavirus.
Don’t let them. For if Omar’s bill, introduced last week and titled the “Rent and Mortgage Cancellation Act of 2020,” gets passed, it’ll be a disaster for our economy, job creation, tenants, landlords, real estate developers, banks and even state governments whose budgets will suffer massive tax revenue loses as a result.
Omar’s bill says all renters and mortgage holders don’t have to pay their monthly rents or mortgage obligations — regardless of income. A rent moratorium that lasts for one calendar month following the end of the national emergency. A crisis, mind you, that could extend for many months as experts predict a resurgence of the virus in the fall and winter.
“Landlords need to show compassion and humanity for those impacted by the coronavirus but economically capable renters should not view this moment as a chance for a free ride,” one of Boston’s largest apartment owners, Bruce A. Percelay, chairman of the Mount Vernon Company said in a statement. “Respecting contracts and obligations are what keeps our system together and when that ethic begins to disappear, the threads that hold everything together will fall apart.”
The bill calls for the creation of a government fund to be established and run by the Department of Housing and Urban Development where landlords can go to recoup crushing rental income losses. Here’s the kicker: They’ll only qualify for relief if they accept a laundry list of misguided requirements such as a five-year rent freeze and other over-the-top demands only a radical liberal or card-carrying socialist could love.
Some of these extreme demands require landlords to be barred from refusing to rent to ex-convicts, those with bad credit histories or illegal immigrants.
It’s worth stating the obvious that if landlords don’t get paid by their tenants, then they will no longer have the funds available to do maintenance repairs or other needed property improvements. It also doesn’t protect tenants, or society, if landlords go broke and have to default on their loans. Apartment buildings could go into foreclosure, teeing up another banking crisis.
“Those activists who are calling for a national rent strike are creating a risk of economic anarchy which will damage our system beyond repair and ultimately hurt those who it is trying to help,” said Percelay. “Mass foreclosures of rental properties both large and small will result in diminished supply and financial havoc.”
Not to mention the loss of hundreds of thousands of jobs. Real estate developers who get burned financially on lost rental income would no longer build housing units, hotels, restaurants and other properties, which means lost jobs for construction workers and related industries.
A far better approach is to have tenants work something out privately with their landlords. Get on a reasonable payment plan that works for both parties without the government inserting itself. When the government does intervene, it inevitably fails to understand the chilling ripple effect these “feel good” measures inflict long term.
It’s important to note that many states have already passed bills that protect tenants from being evicted for failing to pay their rent during the crisis. That’s a good thing. We want protections in place for citizens who are truly struggling. But expecting landlords to foot the bill for all tenants regardless of income goes too far.
“Putting landlords and lenders in the middle of a socialist restructuring of the housing market is not the answer,” said Percelay.
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A principal learned one student’s family is getting evicted. Now she’s working to find them a home
CAPE CORAL — A school principal is working this holiday season to find a home for some of her students.
Shelly Homan posted a plea to Facebook after she learned one of her students’ families was being evicted with nowhere to go. Homan is the Principal here at Heritage Charter Academy. She was helping families in need by telling them about the turkey giveaway sponsored by Cape Coral Police, when she met Vincent Ponzo’s grandchildren.
“When I asked them about the Thanksgiving dinner that the police department was giving away, I found out that they were also going to be homeless,” said Homan.
Ponzo has been looking for a new home for months, but he has bad credit, and doesn’t have enough saved for first and last month’s rent plus a security deposit.
“We’re just running out of time and options at this point, and we’re not bad people. We work hard. I’m the general manager at a restaurant, my wife works for Instacart. My daughter is trying to raise her three kids in our home,” said Ponzo.
So Homan posted an SOS on Facebook, looking for a landlord willing to rent to them. It got a lot of attention.
“Shelly called me, and I was like what did you do? And she was, oh I just put a post out, and next thing you know I’m getting all this feedback from it,” said Ponzo.
“My focus is that the kids are in a home for the holidays. So whatever, whatever I have to do to reach out. The worst people can say is no I can’t help,” said Homan.
But Homan said people have already reached out trying to help. Ponzo said he hopes he can find a home soon, but he also said his story is just one of many this holiday season.
“This takes a lot for me to stand in front of everybody and go this is what’s going on, but if I don’t do it, maybe some other guy wishes somebody did that’s about to get kicked out of his house because he’s going through the same thing or worse,” said Ponzo.
If you are interested in helping Ponzo and his family, you can call the Heritage Charter Academy at (239) 223-7530.
Savvy Group Real Estate Partners With Frazier Credit Services to Make Property Purchase in Columbus, Ohio Available to All – Press Release
Martin Lewis issues guidance on using credit cards to build ratings – best deals | Personal Finance | Finance
Martin Lewis regularly urges savers to use caution when utilising debt themed products but at the same time, he acknowledges the need for a decent credit rating to get by financially. Today, the Money Saving Expert was questioned by viewer Miranda on how one can build their credit rating in difficult circumstances.
“What I’d then like you to do is go and do £50 a month of normal spending on it, things you’d buy anyway.
“[Then] Make sure you pay the card off in full every month, preferably by direct debit so you’re never missing it because the interest rate is hideous.
“That way you won’t pay any interest.
“You do that for a year, you’ll start to build that credit history, showing them you’re a good credit citizen.
“Then you’ll be able to move into the sort of more normal credit card range.
“So, bizarrely, to get credit you need credit. What credit will you get? Bad credit, go get the bad credit just make sure it doesn’t cost you.”
Consumers of all kinds may not have the best options at the moment as recent analysis from moneyfacts.co.uk revealed.
In mid-November, they detailed that a number of high street banks have cut the perks and interest on a number of their current account deals.
On top of this, the Bank of Scotland and Lloyds Bank made credit interest cuts of up to 0.5 percent.
Rachel Springall, a Finance Expert at moneyfacts.co.uk commented on the few options consumers and savers currently have available: “Clearly, it is vital consumers decide carefully if now is the time to switch, but if they wait too long, they may well miss out on a free cash switching perk.
“At present, providers will be assessing how they can sustain any lucrative offers in light of the pandemic.
“With this in mind, we could well see more changes in the months to come and if this does indeed occur, consumers would be wise to review whether their account is still worth keeping.”
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