Homeless

I read with interest the letter from Jim Ward (April 18). However, his conclusion is incorrect. Ronald Reagan did not cause homelessness. Homelessness is caused by making ownership and, therefore, development of low-income housing unattractive to private investors.

That happens every time a slumlord is prosecuted--every time a lender is harassed for lending to a landlord targeted by the city attorney.

As every economist is aware, political risks (and the risk of arbitrary prosecution must be considered a political risk) drive up the yield required by developers of new low-income housing far beyond what poor people can afford to pay.

The solution? Have the tenants responsible for most maintenance and stop torturing the landlords. That would result in a supply of new construction from the private sector, and we wouldn’t need any federal money.

HOWARD KABAKOW

Encino