Obama to announce local housing assistance

The Obama administration may announce a relief package for state and local housing agencies as large as $35 billion, according to administration officials. The plan is aimed at assisting the government-run Housing Finance Agencies, which have found a dearth of funds in the economic downturn. The HFAs are crucial to low-income and first-time homebuyers, who go through the agencies to get lower-rate mortgages. While many claim that government subsidies have stimulated the housing market, Rep. Scott Garrett said that the federal government should be more cautious before pouring more funds into HFA programs. “Most people are calling on the government to lay out an exit strategy,” Garrett said. “This just gets us further into the quagmire.”