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U.S. Department of Housing and Urban Development puts taxpayer on hook for boutique hotel

Published in Blog on July 17, 2017 by Convention Of States Project

Did you know the U.S. Department of Housing and Urban Development has recruited you to be a real estate investor? They've recruited all of us, in fact, to help build a boutique hotel in Cary, North Carolina. The Carolina Journal Online explains,

The U.S. Department of Housing and Urban Development, which often redevelops impoverished areas, is providing a $1.4 million loan to Cary to help build the downtown hotel.

U.S. Sen. Tom Coburn, R-Okla., cited the project as one of the 100 most wasteful uses of taxpayer money in his 2014 Wastebook: What Washington Doesn’t Want You to Read. The projects in the list total $30 billion.

Asked why a loan is in the Wastebook, Coburn’s office replied:

“This is an unusual arrangement in which the federal government makes the taxpayer both the lender and the one responsible for repaying the loan if the recipient does not. With an $18 trillion national debt, taxpayers have already [been] put at enough risk for Washington’s unnecessary borrowing schemes.

“Only government bureaucrats and politicians would think it is a good idea to spend HUD funds on a posh boutique hotel to pamper the well off when thousands in North Carolina are homeless or lack stable housing,” the spokesman added.

Click here to read more from the Carolina Journal Online.

Without your knowledge or consent, you have become both the "lender and the one responsible for repaying the loan" to build a hotel. Clearly, something needs to change.

Now is the time to call a Convention of States to limit the power and jurisdiction of the federal government. Using the Convention of States process, we can shrink the federal bureaucracy and cut down on government waste. And the best part? Congress can't stop it.

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