By Franklin D. López-former United Press International and The Associated Press news-writer.
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, and 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 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. Homeownership his has been the 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 integrate 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 overdue 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 commit to living 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 living the housing unit for at least 10 year and will pay a low-interest mortgage. With restriction to selling it!
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. Homeownership will be the spark that will dramatically change the ideologies of the family that owns the 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. Homeownership 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 these 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 eliminate by it’s gravitas lefties extremism and will help stabilize the politics of governments in the region. Homeownership will dramatically change the ideologies of the family that owns the 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. Homeownership 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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