Seattle this spring adopted a small loan program to help foreclosure victims. The program was so narrowly defined that it could not help most of the people needing assistance, but represented a step in the right direction. The principal recommending feature of the program was that the money advanced to homeowners was treated as a secured loan, so the cost of the program would be quite limited.
San Diego’s City Attorney proposes another inexpensive approach that warrants study. He is pushing the City Council to pass a moratorium on foreclosures. Cities and local governments could certainly do this. There might be an argument that the legislature had not conferred this power on local governments, but this at the very least is debatable. The possibility of a challenge alone is no reason to avoid doing something that is helpful to people.