Bernie and Biden are teaming up.

How will sanders get this proposal adopted in the real world? Has sanders tried to find backers for this proposals? It takes hard work in the real world to get legislation adopted and merely making an announcement does not cut it in the real world

Last edited Sat Mar 28, 2020, 06:50 PM - Edit history (2)

I don't see how you get around it. Evictions? How do you search for a place to live in an era of social distancing?

Landlords, property owners, capitalist REITs took risk when they bought their assets. It's very unfortunate, coronavirus is not something they could have imagined, but rent shortfalls for whatever reason kind of go with the territory. It can happen, it does happen. Often. And it's probably a tax deduction (lost rent), certainly temporary, and therefore an exercise of government's power of taxation. Governments tax real estate, in some states government taxes the value of assets (stocks and bonds), just as the theory of negative interest rates charges a fee on standing assets. Proposals are being floated to also tax cash: make it illegal to spend it, you can only deposit it in a bank, and when you do they charge a percent for the privilege of depositing it. So pretty much if there is a policy the government wants to implement, they can find a way to pay for it, and since tax revenue comes from the people, they levy a tax or fee. This has long been an established power of government.

https://en.wikipedia.org/wiki/Fries%27s_Rebellion

The state of NJ has already delayed mortgage payments in NJ for 3 months, dozens of lenders have signed onto the program.

Few seek a new place to live in the coronavirus era, so if non-paying tenants were evicted they'd be out in the streets and the units would remain empty.

"Landlords, property owners, capitalist REITs took risk when they bought their assets."

A profitable result from investment is not and cannot be guaranteed. If the chop is to come, the creditors ought to take it, or a good portion of it. They are generally better situated then debtors to sustain the harm. The still common idea that somehow creditors are better, more worthy people than debtors, that there is a sort a sort of immorality attached to being in debt, is arrant nonesense given economc reaities of the present day.





"From Bernie’s perspective, dropping out of a race once you have no chance of winning is peculiar behavior that can only be explained by the work of a hidden hand. For most politicians, though, it is actually standard operating procedure. Only Sanders seems to think the normal thing to do once voters have made clear they don’t want to nominate you is to continue campaigning anyway."





"When things are not called by their right names, what is said cannot make sense. When what is said does not make sense, what is planned cannot succeed. When plans do not succeed, people become uneasy. When people are uneasy, punishments do not fit crimes. When punishments do not fit crimes, people cannot know where to put hand or foot."

Cash for Clunkers compensated owners to some extent, some more than others. Once vehicles were traded in the previous owners got cash or a rebate, and the new owners were required to destroy the vehicles, some at a loss, some at a profit. It was following the law. It wasn't a tax, but it could have been described as such. Government tries to improve outcomes for all parties, like bankruptcy court, and keep the processes going. Such is a prudent outcome given the alternative of liquidating businesses. No one wants that because it means assets are sold at auction and often for pennies or dimes on the dollar. Not desirable except to speculators with the capital to assume ownership.

while their tenants live for free? How will a landlord that earns a living from the rentals expected to survive?

That’s the position I’m in. I don’t have a mortgage, but I pay $10,000 a year in property taxes, $4000 for homeowners insurance, $2000 a year in water bills plus repairs and maintenance, I’d be crushed if I lost my rent. I have 2 of everything to fix and maintain.

....tax payments and utilities have decided to stop cutoffs due to delinquencies.

No one is calling for tenants to live for free forever.

but still expected you to show up for work every day for 8 hours, no one would stand for it. Yet landlords are expected to do the same.

At least if a mortgage holder, car dealer, student loan holder,or utility company suspends payments for a time period, they will just extend the length of the loan or add it to your balance, so you still end up having to pay eventually. Rent forgiveness is different because the landlord is expected to just be SOL, and the renter never has to pay for those months.

Besides, if people truly lost their job and can't pay, aren't they covered with the expanded unemployment that was just passed and able to pay their rent?

I have a rental property that supplements my Social Security and, honestly, makes it so my husband and I can stay in our home. I fear that some of my tenants will claim that they can't pay the rent, take advantage of the forgiveness while I still incur the expenses of maintaining the property.

I'm not some shifty "slum lady", just a caring person who fortunately was able to invest in the building. It's on the historic register, so maintenance and repair cost more than most income properties. I get along very well with my tenants, but I know that some would take advantage of this policy.

I am not making my tenants move.

1. They are excellent tenants and I don’t have to worry about damage
2. No one is going to be moving until things improve, so it’s either no rent with good tenants who will go back to work and be paying again, or let it sit empty, still no rent and then have to go thru the process of finding a decent tenant again

Yes, it’s a loss, but what are ya gonna do? Everyone is going to lose, some more than others

The whole 'while tenants live for free' line contains an unspoken assumption, that tenants are lesser people than landlords. People of many stations are going to need relief and assistance. But turning people out of their homes in time of plague is the sort of thing revolutions are made of, and ought to be made of. Rather than complaining about rent relief for people in financial difficulties owing to public health measures, perhaps landlords ought to band together and petition the government for some dedicated relief, a tax holiday, and income support through the crisis, and a pause in mortgage collections.





"From Bernie’s perspective, dropping out of a race once you have no chance of winning is peculiar behavior that can only be explained by the work of a hidden hand. For most politicians, though, it is actually standard operating procedure. Only Sanders seems to think the normal thing to do once voters have made clear they don’t want to nominate you is to continue campaigning anyway."





"When things are not called by their right names, what is said cannot make sense. When what is said does not make sense, what is planned cannot succeed. When plans do not succeed, people become uneasy. When people are uneasy, punishments do not fit crimes. When punishments do not fit crimes, people cannot know where to put hand or foot."

I seriously doubt, however, that such a law could pass the US Congress, and I have even less hope that such a law could pass in the red-state-hell legislature that governs my life.

Sigh.

-Laelth

If rents are to be forgiven, what is the point of even talking about freezing them anyway?

"Speaking Friday night at a CNN town hall, Biden said of rent payments, "Freeze it and forgive it so that you're able to stay in that place ... There should be a rent freeze. No one should be evicted during this period -- period." The vice president added that stipulations would include helping small businesses and targeting people whose income is below $75,000. "

And other expenses landlords have have to also be frozen and forgiven or they’ll be the ones out on the street.

Both sides of the matter ought to be taken care of. Unfortunately, landlords tend to complain about relief given tenants rather than seek relief for themselves to maintain a proper balance.





"From Bernie’s perspective, dropping out of a race once you have no chance of winning is peculiar behavior that can only be explained by the work of a hidden hand. For most politicians, though, it is actually standard operating procedure. Only Sanders seems to think the normal thing to do once voters have made clear they don’t want to nominate you is to continue campaigning anyway."





"When things are not called by their right names, what is said cannot make sense. When what is said does not make sense, what is planned cannot succeed. When plans do not succeed, people become uneasy. When people are uneasy, punishments do not fit crimes. When punishments do not fit crimes, people cannot know where to put hand or foot."

You can do this but you have to compensate the landlords

The government can "freeze" rent and mortgage payments, evictions, foreclosures, etc., only if the government pays the freight.

The "takings clause" of the Fifth Amendment forbids the government taking private property without compensation. A "taking" does not require that the taking be permanent. Even a temporary taking is a taking.

Not all landlords are big businesses. Not all mortgagees are banks. Freezing rents and mortgage payments will hurt small property holders.

The idea is sound. We really don't need more people on the streets. However, the taxpayer is going to have to pay the freight.

On the positive side, if governments do this without compensating the landlords and mortgagees, it will be a lawyer full employment act.

This would be a regulatory taking and the landlords would have to be compensated

No one in congress is going to be paying attention to sanders unless and until sanders is able to generate his magical voter revolution in the real world. I admit that I never considered sanders to be a serious candidate and never understood sanders appeal. sanders has no significant legislative accomplishments in his time in Congress in large part because sanders never bothered to attempt to get his fellow members of congress to support his programs. In the real world, it takes hard work and getting along with people to get major legislation passed. I was not surprised with sanders admitted that he does not try to get along with his fellow members of congress and that he was not good at pleasantries

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