>>Bush also proposed $2.4 billion in tax credits for housing developers that
>>build affordable housing in ``distressed'' areas, a project he said would
>>lead to construction of 200,000 new homes.
>
>Yup. Pure pork. Note that almost all of this money goes to developers,
>financiers, and bureaucrats.
Not exactly. It depends on the program, but generally low to moderate income people do get decent quality housing. Government subsidies may pay for the downpayment, second mortgage and the closing costs - which are out of the pocket up front expenses for the home buyer, and can amount to $18-20k. Low to moderate income first time home buyers simply do not have this kind of money to spend, which represents a major obstacle for their access to housing - even though they could easily afford to pay the mortgage payments (which in many circumstances can be lower than rent).
So yes, that money does end in the pockets of developers, but the low income people get decent housing, and also do not pay rent to slumlords anymore. What is more, this kind of assistance often pays for housing in urban areas, and thus contributes to urban renewal as opposed to suburban sprawl.
wojtek