Tuesday, March 28Welcome

On Housing, Yonkin’s Opportunity to Become a Business Manager

Jeff E. Shapiro Richmond Times Dispatch

Glenn Youngkin knows better than anyone that you can make a lot of money with other people’s money.

Part of his personal fortune as a private equity professional consists of borrowed cash. That’s SOPs. Take out a loan to buy an underperforming business. Cut costs by laying off employees and scrapping unprofitable products and services. Increase productivity and improve product delivery. When the money starts coming in, sell for the highest amount, pay off the loan, and pocket the rest.

Youngkin, now governor of Virginia, could have done a lot with borrowed money to ease the housing crisis. In this example, the bond pays off over time at a higher interest rate, making it more attractive to investors. He seems hesitant to throw cash at what he rightly perceives as vital to economic expansion. Unless you don’t have a place to call home because your is so high.

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The Joint Legislative Audit and Review Commission, an investigative arm of Congress, estimates that the state is short of 200,000 homes.

In Richmond and the three surrounding counties of Chesterfield, Hanover and Henrico, renting and owning more and more homes is becoming increasingly popular for office and transportation workers, salespeople and, in this foodie-centric region, low-income hospitality workers. Increasingly out of reach, a survey by the Richmond Real Estate Association. In contrast, high-income people in finance and business can rent or buy almost anything anywhere in the region.

Governor Jonkin

Virginia Governor Glenn Youngkin speaks at a joint meeting of the House Appropriations Committee, the House Finance Committee, and the Senate Finance and Appropriations Committee at the Pocahontas Building in Richmond, Virginia, Friday, August 19, 2022. did.

Daniel Sanjiv Min/TIMES-DISPATCH

And the study looks at the income and housing mixes of many civil servants in the metropolitan area, especially police, firefighters, paramedics, teachers, and others whose ranks have been dried up by the pandemic, social unrest, and political grudges. Not provided. all three.

“It’s not that previous governors didn’t support housing — they did.” clarified the relationship between housing and economic development.”

As communications director for a former governor, Lafayette is well aware of the challenges of gaining public support for initiatives that require funding and taste. How to fund federal housing. “

Jonkin says the solution is less government than more money. Local governments must, through strict land-use and zoning decisions, effectively stop installing obstacles to new housing. I see it as another attack. This time, it is used to ensure quality of life.

Many of the territories Mr. Youngkin won in 2021, who was elected by a narrow margin, were local, and he didn’t want to strip away certain taxing powers. They blocked him in Congress this year and kept a small share of the food tax. Now he appears to be targeting the franchises they protect. Probably more jealous than taxing.

Youngkin from the dinner party Donald Trump threw at his Florida home for entertainer Kanye West, who has been accused of anti-Semitic rants, and anti-Semitic Holocaust denier Nick Fuentes. was also only slightly more proactive about the details of his evolving housing modifications.

Jonkin said little about the former, lest he become a major target for the opposition ahead of the 2024 Republican presidential election year, and nothing about the latter. Presidential nomination.

When it comes to funding housing policy, there are far more opportunities for Youngkin to cooperate than to fight.

New approaches may come down to trying the old: State-local partnerships are similar to those introduced to build community prisons and local schools. It is achieved through a combination of bonds.

Since the late 1980s, Virginia has subsidized half of the prison’s construction costs. They were paired with bonds issued by local authorities. As for schools, municipal bonds were secured by the state purchasing the paper.

With a surplus of $1.9 billion, the state is never short of cash. A housing advocate suggests the state may set aside her $200 million to help local governments support hybrid financing for low- and middle-income housing .

Such schemes don’t necessarily involve Virginia’s independent bond-issuing agency, Home Brokers, whose focus is on helping first-time buyers. However, at the request of Youngkin’s Democratic predecessor Ralph Northam, the company pledged about $50 million to meet housing demand related to Amazon’s East Coast headquarters in northern Virginia. did.

It focuses on the state’s housing shortage and the income gap that puts rentals and purchases out of reach for low-income individuals.

Shapiro: one of those who cares about people's business

Dominion Energy lobbyist Jim Beamer met David Poole in 1985. A former political reporter for Lynchburg News & Advance, Poole…

Both targeted residents of new publicly subsidized, rented, or purchased housing, unlike inmates and school-aged children, who make no significant contribution to the economy. Commuting — Pumping dollars into your community through jobs, shopping, and property improvements.

The wealth delivered to individuals and the value delivered to communities can strengthen the ability of economies and regions to return to bond markets.

Virginia’s surprisingly strong recovery from the COVID-19 catastrophe means states with durable, highest possible credit ratings can safely generate more collateralized debt obligations. According to the state’s debt watchdog, the total outstanding debt is $52.5 billion, plus an additional $1.1 billion. Committee.

Some believe Virginia can responsibly push further into the bond market, including housing. Davenport & Co., which advises the City of Richmond on its finances, recently pitched the Youngkin administration to consider broader use of debt financing, arguing that fundamentals such as its economic base and generational shift favor Virginia. I was.

Because you can make a lot of money with other people’s money.

Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com. Follow him on Facebook and his Twitter @RTDSchapiro. Listen to his analysis on Radio IQ on Fridays at 7:45 am and 5:45 pm. 89.7 FM in Richmond, 89.1 FM in Roanoke and WHRV 89.5 FM in Norfolk.

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