Response to Housing Department's Proposal (repost)

repost from an email received March 10th, 2008 in response to LAHD's decision to cancel it's low and moderate income down payment assistance programs.

Dear Fellow Lenders:

The Los Angeles Housing Department announced today that it is suspending its home ownership program in favor of a new initiative that will create a city-sponsored interface between distressed properties, lenders and home buyers. Please see the attached report submitted to the City Council.

This plan, while well-intentioned, is premised on the idea that City's intervention in the normal home buying market can create efficiencies and save money. My view is that the City's role should be limited to making it down payment assistance money available to qualified home buyers who put together viable deals working with lenders and real estate agents. These three parties (home buyers, lenders and real estate agents) are best poised to take advantage of current market opportunities, over come obstacles and close deals in the most efficient manner possible.

The Housing Department correctly touts the success of their home ownership program over the last few years. And I believe it is true that they have designed and implemented a great program, but at the end of the day it is the efforts of participating lenders and real estate agents that actually make deals happen.

If you agree, I recommend you make this argument, in writing, to the Housing Department, to Mayor Villaralgosa, Councilman Herb Wesson (Chair of the Housing Committee) and to Merceds Mercado, the Housing Department's General Manager. Their addresses are listed below. Please reference City Council File # 08-0274 in your letter. Here are some points you may want to make in your letter:

• The proposal is unnecessary, normal market forces and business practices are bringing distressed properties back on the market efficiently
• Access to mortgage credit is still readily available for first-time buyers
• The City's proposed intervention will add extra costs and delay disposing of distressed properties
• Home buyers, lenders and real estate agents are in the best position to put together good deals efficiently.
• Given the past success of LAHD's home ownership program and the tremendous market opportunties the exist (decreased home prices and low interest rates) the Mayor and City Council should take every possible step to increase funding to LAHD's home ownership programs in the current year.

Of course, the tone of the letter should be positive and polite. If you can't write the letter on your company letter head, perhaps you can write a personal letter. It would help to include brief antitodal stories about clients you've helped with LAHD's home ownership programs.

Thank you!

Matthew Callahan
Civic Center Home Loans & Realty, Inc.
www.GoHomeLA.com
(562) 846-7483 - Office
(562) 724-6080 - Office Fax
(562) 547-9372 - Mobile Phone
6528 Greenleaf Avenue, Suite 204
Whittier, CA 90601

CONTACT ADDRESS:

Maro Anotonio Villaraigosa

City of Los Angeles

200 North Spring Street, # 303

Los Angeles, CA 90012

Honorable Herb Wesson

Chair, Housing, Community and

Economic Development Committee

200 North Spring Street, Room 360

Los Angeles, CA 90012

Mercedes Mercado

General Manager

Los Angeles Housing Department

1200 West 7th Street, 9th Floor

Los Angeles, CA 90017