Targeted Housing Help
Over these challenging weeks, I’ve worked hard to be out front advocating for the needs of the Lowcountry.
The COVID19 crisis has challenged all of us and our families. For weeks, I’ve advocated for more and better testing, and for supplies for our health care providers. I, too, shared the importance of restoring our economy and getting our state back to normal as best we can.
We now see 30 million people unemployed, a near $4 trillion deficit and businesses shuttered or hanging on by a thread. We have people struggling to pay their mortgages and rent, and the relief that has been offered hasn’t fixed all of the problems.
It was just announced starting May 15th, South Carolina will allow evictions and foreclosures to resume, at a time when the government simultaneously has shut businesses down, unemployment is at distressing and historic highs.
Our government is restricting Lowcountry residents to their homes, only to kick them out!? If people can’t work, they can’t pay their rent.
Perhaps the state of South Carolina can allow people to resume work at the same time they are going to resume foreclosure or eviction proceedings. That would just make sense, right?
But I also have another idea.
A second immediate injection of relief is needed in our housing sector. But this isn’t done by the government giving things away. I’m talking about incentives.
A tax credit for banks, lenders and landlords who suspend or defer mortgage and rent payments to individuals and businesses would help alleviate the pain felt by tenants and homeowners trying to make ends meet.
We have unprecedented unemployment right now as a result of the government shutting businesses down. This means, more people and more businesses will not be able to pay their mortgages or their rent.
A tax credit of one percent per month deferred would go a long way to letting lenders and landlords do more to help individuals in this situation.
In other words, a credit of one percent for every month they defer these payments. So if your bank or your landlord let you go 90 days with no payment, the bank or landlord would receive a three percent lower tax rate.
With layoffs climbing, and hardly anyone hiring, this would go a long way to help prevent a housing crisis like we saw in 2008. It also incentivizes relief NOW and may prevent evictions.
As I’ve done from the beginning, I am bringing forward important, common sense ideas to deal with this crisis.
We cannot panic. But we also cannot hide.
We must meet the reality of the virus and the economic aftermath head on, with pragmatic, common sense action that will mean real relief to people and businesses everywhere.