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By Franklin D. López-former United Press International and The Associated Press news-writer.

“Creation of  Latin-American Development Bank Housing mortgage guarantee insurance agency through the InterAmerican Development Bank (BID) and using the loan guarantee structure of the Small Business Administration to develop a micro-loan business loan guarantee in Central and South America.”
 

 

The most polarizing and neuralgic issue in the United States political landscape is the immigration, as well as building the wall to safeguard our National security. In order to effectively address the immigration crisis you must deal with the roots that causes it!   An issue of this nature is one that crosses the border of the union of states and has a direct effect in the International community that may jeopardize the foundations of the value represented by our Nation’s flags, even our national motto “e pluribus unum” “Out of many ONE.”

 

In 1986 I was invited to participate in a Latin American conference of Mayors meeting in Curazao. My presentation was a very simple one, in order to eliminate poverty, urban decay, the United States Government should consider creating through the Inter American Development Bank (BID)  a FHA loan guarantee programs to provide descent housing and a plot of land to the millions  Central and Latin American families that are forced to emigrate to the United States looking for a better life and work.  Illegal immigration cost the U.S tax payers at least $ 200 Billion dollars a year. This program cost much less than the present system to the U.S Taxpayers A loan guarantee program for the millions of poor families in Latin American will cost much less than that at it will serve to retain population in their respective Latin American homelands and planting the seeds for a new low middle class that may strengthen democracy and provide with political stability .Besides this program bay be the corner stone of Social Justice at it will serve to strengthen the ties of Latin American countries with the U.S.  neutralizing China’s “Open Wallet” policy  South of the Border.

It has been proven that the ownership of property provokes a metamorphosis in the owners, family and converts it into being more conservative and stable to protect the ownership of the property. This is of special importance to Latinos who treasured the family life! It is part of their social genes! Is embedded in their soul. Thousands take the risk of literally walking from their central American countries, risking their lives in order to find work and live the American dream. Home ownership his has been  foundations of the growth of the middle class in the United States. Central American countries and their government has enough land to give 320 square meters to every citizen currently living in the countries that integrates Central America.

Promoting a solid program to allow very poor families in the region to own a piece of land , with a decent housing structure and finance in the same manner the Federal Housing Administration finances homes in the United States through mortgage guarantees is a cheaper solution than paying for all the social services that an immigrant creates when entering the National territory legally or illegally! This program will be funded from an initial allocation of $500 million dollars to create a housing loan guarantee to be known as the Latin America Housing Alliance (LAHA). This program is extremely cheaper that the current programs of building walls and assigning ICE staffers to the USA-Mexico borders. It will do long over due social justice.

I) Latin American-Banks will also guarantee the housing loan for up to 30 years “pari-Pasu” with LAHA.

II) A micro-loan guarantees to provide families with seed monies to start a family business like the loan guarantees of the Small Business administration is also recommended. These microloans has been successfully implemented in India with little or no default

III- The family participating in the program will comitt to live it for 10 years  and not sell it.

IV- Each ministry of housing department will provide human resources and operational support to identify land to be subdivided in small 320 square plots, with access to water and electricity for the program

V- Participating families will commit to live the housing unit for at least 10 year and will pay a low interest mortgage.

VI- The Overseas Private Investment corporation could be a participating agency in the program,. They already have the structure to be helpful in making it a reality

The Inter-American Development  Bank (BID Will be the  institution to implement this program. A pilot two phase program  should be considered to begin this initiative, that will project American values, globally!

 

 This is a bold initiative that will eventually neutralize lefties extremism and will help stabilize the politics of governments in the region. Home ownership will be the spark that will dramatically change the ideologies of the family that owns property! Google: Evergreen Eco homes  The Secretary of State should convene a summit of Central American leaders with the Organization of American States to explore this initiative. It will be a cheaper program Than sending foreign aid that rarely benefits the individuals citizens in Central America. Home ownership is a game changer. This proposal demands refinement and analysis. But is easier to sell not only to the American electorate but as well as to our Central American brothers and sisters. It a noble and humane solution to a polarizing  It’s time for a new fresh approach!as Private Investment Corporation (OPIC) and The Small Business Administration could assist in establishing the mortgage insurance guaranteed by the Country’s Central Bank and the Inter American Development Bank (BID). This will be the greatest social initiative since John F. Kennedy launched The Alliance for Progress in 1961! This is cheaper than providing social services, health, housing security in the states of the Union to illegal immigrants and will provide some breathing space to deal with this immigration cases  that are based on human rights violations!

 

This Latin American  America Housing Alliance solution can be done through the auspices of the Inter-American Development Bank (BID) together with each Nation’s national bank of the Central American countries and the Overseas Private Investment Corporation. This is a bold initiative that will eventually eliminates by it’s gravitas lefties extremism and will help stabilize the politics of governments in the region. Home ownership will dramatically change the ideologies of the family that owns property! Google: Evergreen Eco homes. The Secretary of State should convene a summit of Central American leaders with the Organization of American States to explore this initiative. It will be a cheaper program than sending foreign aid that rarely benefits the individual citizens in Central America. Home ownership is a game changer. The Idea requires refinement and analysis. This is a great opportunity for the Biden-Harris Administration to contain China’s open wallet initiative in The Caribbean, Central and South America. (Please also read:  “A Matter of National Security” in this blog) It’s time for a new fresh approach!

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