Channel 2's David Goldstein Finds "Affordable Housing" Scam
You really must watch the report by Channel 2's investigative reporter David Goldstein on how a "charity" used an "affordable housing" program to rip-off you, the taxpayer. To see it, click here.
Goldstein reports that the Esperanza "charity" obtained "surplus property" from Caltrans in order to provide "affordable housing" to "low-income" households. Sounds nice, doesn't it? But Goldstein caught the director of the "charity" living in one of those homes and, indeed, driving her beautiful new BMW out of the drive She admitted on camera, moreover, that her family is not a "low-income" household.
Goldstein also found that the tenants in two other houses who were purportedly paying modest rents -- $315 or so in one case, and $1000 or so in the other -- but who were also paying $1400 per month in "maintenance fees," which the "charity" did not bother to report to the state.
So the "affordable housing" program did not provide "affordable housing" to "low income" families. Instead, it provided an opportunity for an unethical enterpreneur to pocket a government subsidy, while charging market rates for housing.
The good news is, Goldstein found this particular scam. The bad news is, David Goldstein does not have time to check on every tenant of every "affordable housing" unit from now to the end of time. And no one else is going to check, either. When you subsidize "affordable housing," your money is going to developers, not the poor. Maybe they will play by the rules, maybe not. But you'll never know.
[Note: the picture above is NOT the house and BMW mentioned in the story.]