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How close were Barack Obama and Tony Rezko?
It was almost inevitable that Obama, as a Chicago politician, would spend a lot of quality time with someone like recently jailed Rezko. But that doesn't excuse bad judgment.
By Edward McClelland [2008-02-01]

  • Great Article

    Good job at putting together a complicated issue and getting some on the ground perspective.

    As someone who has worked in affordable housing for over 30 years, there is a key element that is missing. The magnitude of the foreclosures and losses of public funds. These projects are typically designed to have reserves to protect from operating losses and guarrantees. Obama as the attorney for the non profit had the responsibility to make sure the reserves were funded. In most tax credit projects, the "developer fee" is used to fund these reserves. Obviously, the developer, the city and the attorneys were negligent when funding and structuring the projects in funding and planning for oversight of the reserves. Mr. Rezko basically walked away with about 6.1 million in fees .

    This is the disturbing aspect of Senator Obama's role. He was asked this question by the Sun Times:

    Q: Many Rezmar government-financed housing deals have ended up in legal battles, including foreclosure. Several Rezmar buildings are now boarded up, and others are in need of major repairs. Taxpayers have lost millions of dollars on these deals. While Senator Obama has called Mr. Rezko a legal client, campaign contributor and a friend, there's ample evidence that Mr. Rezko was a slum landlord. Was the senator aware then that Mr. Rezko's projects were deeply mired in physical and financial problems? Does the senator think it is fair to characterize Mr. Rezko as a slum landlord?

    Senator Obama in his answer, please remember this is a self proclaimed community organizer first then politician, was the following:

    A: Housing partnerships in which low-income-housing tax credits are syndicated frequently struggle financially. The reasons for the problems such partnerships struggle are complex but frequently include urban crime, demographic changes and social factors outside the control of any developer or owner. Senator Obama was not otherwise aware of financial and physical problems attributable to misconduct by Mr. Rezko

    Translation, it was the tenants fault. It was the "demographics" aka low income African Americans. But no criticism of Rezko. No concern for the loss of housing. No action taken to make good the units lost. This is negligence and in my opinion, backing the man who gives you money before your community.

    Now I am sure you can claim it was not illegal. You can claim it was innuendo. But, my case which no one has disputed, you don't take the side of the landlord, slumlord, over the community or the tenants. Which side are you on?

    So, on judgement, experience and taking responsibility I give Senator Obama an F.

    http://www.suntimes.com/news/metro/353786,CST-NWS-rezquestions23.article

    -- Stellaa
    [Read Stellaa's other letters]
    Friday, February 1, 2008 09:55 AM
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