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Economy
Obama to Announce $1.5 Billion boodle in TARP funds for HFAs
2010-02-20
Later today, the President will announce administration plans to allocate $1.5 billion of TARP money toward funding state Housing Finance Authorities (HFAs) in the five states hardest hit by the housing crisis. President Obama will focus on the issue of housing at two events in Las Vegas, where he will be joined by Senator Harry Reid (D-NV).

HFAs in California, Florida, Nevada, Arizona, Michigan will have access to new money. Each of those states has seen home values decline by 20% or more, according a senior administration official, who spoke about the President's announcement on background. The funds will not be allocated equally, but given out based on which states have the biggest need and whose HFAs can demonstrate they can use the money most effectively.

"Primary criteria will be price declines and unemployment," the senior administration official said.

The White House believes HFAs are the best way to distribute the money, because unlike the federal government, the local agencies understand the specific needs of each community.
Spreads the graft around to the "community organizations" much more efficiently that way ...
"They're doing lots of different things, they're deeply knowledge of the local markets," the official explained, "And they're up and running."

Because the money is funded out of TARP, the White House says there will be great attention to accountability and transparency. All programs that benefit will be posted online, and the administration is encouraging HFAs to "go out and innovate."
Oh sure, we can all see how the TARP money has been used ...
Posted by:Fred

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Posted by: Abu Uluque   2010-02-20 12:51  

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