Sometimes those employee suggestion boxes can generate compelling ideas. Here’s one from an anonymous commenter at HUD’s public feedback site: Spark urban redevelopment by insuring local TIF commitments.
“Similar to mortgage insurance provided by FHA, HUD should request Congressional authority to insure private loans made using local TIF commitments as collateral. This insurance would stimulate private lending in urban areas, promoting HUD’s interest in strong urban cores through sustainable development, improve local property tax receipts, and create jobs.
“Such an insurance program would jump-start hundreds of millions, and potentially billions, of dollars in projects that have received commitments for future pay-ins from local TIF districts, but that cannot secure upfront private funding to initiate development. An insurance program would reduce the perceived risk of such loans by private lenders and immediately free-up the necessary debt financing.
“Since this would operate as an insurance program, the outcome of promoting sustainable urban development would be accomplished without the need for new spending. In fact, this program could be a profit center similar to current FHA programs.”
So, RealPoints readers … what do you think?