From Deseret News archives:

Rocky wants homeless block vetted

Published: Thursday, Oct. 14, 2004 9:01 a.m. MDT
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Moreover, Bailey and Mayor Anderson agree, $48 million would probably be better spent building more affordable housing rather than moving homeless services a couple blocks. A $48 million investment in low-income housing could go a long way toward curbing homelessness in Salt Lake City, Bailey notes.

There has also been some fear on the part of homeless service providers that if they don't go along with the plan they will lose key funding from groups like Zions Bank and United Way, which both have close ties to the Chamber.

But Chamber leaders have denied those fears are valid. Byron Russell, who is heading up the Chamber's culture block plan, told the City Council last month that the Chamber's homeless proposal was merely an offer and if the homeless service providers didn't want it, then the Chamber would drop it.

Mayor Anderson said Wednesday that he feels the motivation behind the plan is that local banks, which belong to the Chamber, would like to use Community Reinvestment Act (CRA) funds to help the homeless community.

By federal law, banks have to use such funds to help blighted areas, however, those funds have to be invested in ways that will make a profit.

By moving the homeless providers, the land they currently occupy could be turned into a housing development, which would turn a profit, thus meet CRA rules and allowing the banks to use CRA funds to further invest in homeless services.

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"I think the motive is to find a way to bring in CRA funding to expand the (homeless) services provided," Mayor Anderson said, adding "of everyone I've talked to about this I have tremendous respect for all of them."

Still, the mayor has significant issues with the plan, including the notion that it will move the homeless further away from the public view, divert funding from housing and violate an agreement the City Council unanimously approved last year, with homeless providers stating that the city wanted its homeless services to remain where they are.


E-mail: bsnyder@desnews.com

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