Bond praises inclusion of $2 billion for low-income housing projects in stimulus bill, derides measure as a whole

U.S. Sen. Kit Bond claimed bipartisan credit Monday for a $2 billion program in the $789 billion economic stimulus bill but said the rest of the measure was so bad he couldn't stomach it.

Standing in front of the Schultz Senior Housing Apartments project on Pacific Street in Cape Girardeau, Bond, Missouri's senior Republican official, said the $2 billion included to jump-start low-income housing projects was vital to preserving construction jobs. Most of the rest, he said, will have little long-term effect.

"The stimulus package as a whole will stimulate the debt, it will stimulate the growth of the federal government but it will not stimulate the economy," Bond said.

Schultz Senior Housing is being built in the former Schultz School, sold to developer Chad Hartle last year after he was awarded $6 million in state tax credits and $6 million in federal tax credits. Hartle is also using historic preservation tax credits to convert the building into 45 one- and two-bedroom apartments that will rent for $285 to $485 per month.

Tax credits supporting the construction were approved by the Missouri Housing Development Commission in December 2007. Each year, the commission approves another batch tax-credit backed projects. Developers typically sell the tax credits at a discount to raise the capital needed for construction. The collapse of credit markets in 2008 left developers who won approval in December 2008 unable in many instances to sell their tax credits. In Missouri, that means 700 housing units that are stalled and another 2,000 that could be in jeopardy in the coming year without action, Bond said.

The provision pushed by Bond and six other Senators, both Democrats and Republicans, will provide $2 billion in direct investments.

"With the credit crisis, all across the country these have been shut down," Bond said.

Cale Bradford, a member of the commission from Southeast Missouri, said 3,000 Missouri jobs on projects totaling $400 million would be preserved by the housing money.

There are other worthy items in the stimulus bill, Bond said, including funds to build or repair highways and river ports as well as a clean coal project known as FutureGen in Mattoon, Ill.

Nearly half of the price tag is for tax cuts and aid to the poor and unemployed. Major provisions include $400 tax credits for individuals and $800 for couples, as well as credits for home purchases, college tuition, people with children and small businesses. For the unemployed and poor, the bill includes extended unemployment insurance benefits, subsidies for health insurance and money to support the Medicaid program. Bond said the package should have been about one-third of the final size. "Sure we need help for health and unemployment compensation, but blowing $790 billion ... you've got $8 billion for high speed rail from Disneyland to Las Vegas, somebody is calling it the sin train. There are things in there that just defy all rationality."

During his tour, Bond was shown how the now-gutted building will be transformed by fall into energy-efficient apartments.

In an interview before the tour, Hartle said there have been few unexpected problems found as the former school building, originally constructed in 1914, was gutted. The construction schedule anticipates completion this fall, with a May date likely to begin accepting applications for apartments.

rkeller@semissourian.com

388-3642

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