Deep Pockets, the IRS, and the Huge Flaw in Trump’s Tax Payroll Deferral

That is true Shamrock, in Oregon they had a “housing emergency,” and the governor (“progressive” with deep socialist connections) used it to first unilaterally declare a statewide rent control, the first in the nation, and then proposes to take ovr all local zoning laws in order to force the progressive vision onto private RE developers so that a certain amount of any new developement is set aside for low income and minority housing. Every new subdivision of houses will have to provide accomodation for not only poors but poors of color. Nevermind the lack of public transportation these suburban pioneers will need, or lack of walkable land, or that in urban environs there tend to be shops within walking distance but in the suburbs that is not the case.

Then you also have the factor that people being planted into subsidized housing in the middle of upscale neighborhoods are going to be looked upon and judged and made to feel unwelcome because the Goodwill Fairy in Salem does not in fact have the power to force people who just paid half a million bucks for their new house like and accept poverty stricken minorities next door. It is a freaking recipe for disaster. It makes things worse not better to force unworkable solutions on to people who are never going to accept being forced.

Fortunately it isn’t going to happen as developers will find a way to circumvent the unicorn fart plans of the governor and her legislative sidekick, the communist Tina Kotec, and feel free to have fun with HER name.

By the way, the rent control they passed is laughable and not control at all if you know anything about math. It allows the landlords to raise the rent no more than the CPI plus 10%. But, they were unclear in the language of the law if that meant 2% (pretending the real inflation reported by the CPI is 2% for example only) plus 10% of that 2% or 2% plus 10%. And the difference is giant. CPI plus 10% would be 12%, CPI plus 10% of the CPI would be 2.2% and I can tell you their actions were way too little way too late. My rent there in southern Oregon went up 90% between the 2013/14 lease and the 2019 lease which I declined to renew and left the state in early 2020. In a period where my COLAs amounted to a few percent rents nearly doubled. The time to act was before that happened not after, now what they have done locks in those higher rents forever because landlords can never reset them woithoug losing their financial base rate, it also means they cannot skip a year of maximum rent increases because they can never then make up for that loss of base income in future. It is a compounding thing that the socialists just do not quite get. If a landlord skips raising rents by the max allowed for a year or two he will eventually be so far below market rent he will end up losing the property over time. His compouned rents will not keep up with the compounded rent increases of those that did raise it by max every year.

Socialists want/demand solutions TODAY and do not know enough about finance and economics to understand the ramifications for the future. Rents on a compounding basis guaranteed to rise is way different from markets setting rents. For years rents did not rise till the state started messing with them. The first problem started when they passed a law in 2015 saying it was illegal to discriminate in rentals on the grounds of source of income, and that sounds all nice and fair. But what it meant was landlords could no longer deny a rental based on HUD section 8 as source of rent payment.

It forced all landlords to accept HUD and thus all the restrictions and rules of the HUD section 8 laws. The fine was $11,000 for rejecting a HUD applicant and it was difficult to prove that was not the reason you rejected them. So all dealings with landlords now are strictly time and date stamped.

The result of this law was landlords just raised the rents higher than HUD could by law pay. They were not responsible to lower their rents to a level HUD could pay. That level by the way was up to 135% of the median rent in a statistical market. So if the median rent was let’s say $800 the landlord only had to raise rent to $800 X 1.40 = $1,120. They also stripped out appliances since HUD recipients do not (not allowed) have savings to buy them, and obviously are too poor to purchase on credit. Also, there was nothing in the law that stopped landlords from collecting gigantic deposits so my last place there had a deopsit of $1,750 you just KNOW those crooked property management places are going to screw you and they did.

Many landlords just took rentals off the market, better to have a total loss of rental income and write off the loss than to risk running afowl of the new laws. So the vacancy rate dropped from 5.6% down to less than 1%, in my town anyway, and that alone would mean ballistic pricing.

It is just a self reinforcing economic clusterfuck with the main message of the progressives being we will FORCE you to accept our vision of economic and social justice even if it kills the whole state.

Ass backwards way of solving REAL problems. Killing prosperity so you can rebuild from scratch is not responsible leadership. Identify the problem, then address the real roots. But the politically correct mafia refuses to admit that poverty/minority issues have any roots in that community itself, all their problems are based in discrimination and racism. ALL OF THEM, so the solutions all have to be about going after the rich white guys doing this to the poor brown people. And they are never going to fix anything till they understand that the community of poor brown people have some real problems of their own they have to address before progress will be made.