The American Spectator : ACORN Housing Boom

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ACORN Housing Boom

By Matthew Vadum on 3.2.10 @ 6:08AM

The great rebranding continues – as do plans to put our tax dollars to work for ACORN come election time.

As ACORN gears up to use your tax dollars to influence future elections, the U.S. Department of Housing and Urban Development is conducting a "massive" probe of ACORN Housing Corp., a source familiar with the ongoing investigation says.

A spokesman for HUD's inspector general refused to confirm or deny whether ACORN Housing was being investigated.

ACORN Housing is essential to ACORN's member recruitment program. The housing affiliate strongly encourages its clients to pay ACORN $120 a year to be part of the class struggle. Many of the ACORN employees Americans saw on the undercover prostitution sting videos last fall are actually ACORN Housing employees. ACORN Housing's website boasts that from 1986 to 2008 it counseled 338,025 clients, and originated 104,867 mortgages worth $15.5 billion.

The HUD probe comes as ACORN Housing, the best-funded of ACORN's affiliates, participates in the ACORN network-wide rebranding aimed at duping funders and the public and allowing ACORN to continue to devour government grants.

Although ACORN is now converting state chapters into new shell corporations operated out of the same old ACORN offices and staffed by many of the same people, ACORN Housing opted simply to change its name.

ACORN's latest public relations ruse may give it an opportunity to take in untold millions of taxpayer dollars under cover of darkness just in time to cause trouble during the 2012 election cycle.

The ruse consists of ACORN's effort to pass off various state chapters as "new" groups supposedly independent of ACORN. In this rebranding charade state chapters are pretending to break away from the national ACORN group and reincorporate themselves as independent organizations.

But ACORN Housing is rebranding itself a little differently. In a marketing-savvy move, ACORN Housing has been rechristened Affordable Housing Centers of America Inc., which allows the entity to continue using AHC as an acronym.

ACORN Housing is a key component of the far-flung ACORN empire of activism which has long used its housing affiliate as a piggy bank -- so it's too important to be allowed to collapse.

Although the congressionally chartered nonprofit NeighborWorks, which serves as a weigh station for HUD grants, is reportedly not setting aside any 2009 funds for ACORN Housing, in 2008 alone it awarded ACORN Housing $25,050,939 in federal funding.(The 2008 grant documents are here, here, and here.)

The $25 million-plus figure for 2008 is more than ACORN Housing took in from the federal government in a 10-year span ending in 2007. In its tax returns ACORN Housing reported taking in $23,965,756 in government funding from 1997 through 2007.

This federal funding is a problem because ACORN Housing funnels funds -- possibly including government funds -- to ACORN and other affiliates in the ACORN network. The network is notorious for its commingling of funds and it has used government resources previously for partisan political activity.

During the Clinton administration ACORN and ACORN Housing used AmeriCorps resources to give partisan speeches and assist the Clinton White House in preparing a press conference in support of legislation.

In 2007, when ACORN Housing reported taking in $5,205,527 from the government, it also made a $119,509 loan to ACORN. The same year it also paid out $496,615 to the shadowy ACORN affiliate Citizens Consulting Inc. (CCI) for "administrative services."

CCI is an essential part of the Louisiana attorney general's current investigation into ACORN. CCI is also where Dale Rathke, brother of ACORN founder Wade Rathke, worked while he embezzled $948,000 from ACORN.

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topics:
ACORN, Political Scandals, Public Corruption

About the Author

Matthew Vadum is an award-winning investigative journalist at a conservative watchdog group in Washington, D.C. Vadum is also author of Subversion Inc: How Obama's ACORN Red Shirts are Still Terrorizing and Ripping Off American Taxpayers.

Letter to the Editor View all comments (50) | Leave a comment

Fred| 3.2.10 @ 7:40AM

Acorn won't go away. It must be carefully and persistently driven out of business. Their people are organized and their tactics are effective. We must become more aggressive in shutting them out of taxpayer dollars.

Marion McGraw| 3.5.10 @ 9:18PM

We need to stop these people. We, the people
need a special watchdog group to monitor their
dirty dealing, similar to the Natzi Hunters. It should be called ACORN HUNTERS. A PIG IS
STILL A PIG, NO MATTER WHAT LIPSTICK
THEY WEAR!!

Jane Brown| 7.1.10 @ 5:40AM

That's the problem, they're so organized, like the Mafia... :/

Mark V| 3.27.12 @ 10:19AM

they might be organized, but "bad" operation usually shuts down. one way or another

S.L. Toddard| 3.2.10 @ 8:07AM

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myohmy| 3.2.10 @ 9:22AM

The only option is start prosecuting. That is good recipe to stop corruption.

Barb| 3.5.10 @ 3:46PM

How can prosecution be achieved when those charged with prosecuting the criminals are just as guilty or worse than those on trial? It would be a complete farce and ACORN would be found not guilty by some Progressive judge and given a pat on the back to continue their wretched crimes.

Ken (Old Texican)| 3.2.10 @ 10:31AM

Another reason 2010 elections are critical. All funding appropriations start in the House of Representatives.
We just cut off the money. No more Acorn derivatives.

Oldefarte| 3.2.10 @ 1:52PM

Cut off funding....absolutely agree! the November elections should represent a complete overturn of congress [total House plus 1/3 of Senate] by national voters replacing current incumbents with pledged conservatives to halt/dismantle the growth of government [including this defunding of this fraudulent, corrupt Accorn (or whatever its new name is)]. Folks, this is how YOUR TAXES are being spent by OUR government!!!!!!

Ken (Old Texican)| 3.2.10 @ 2:04PM

Olde Farte,.................. precisely!
Check out teapartypatriots.com and find your local tea party to find out who the right contestants are.

Marc Jeric| 3.2.10 @ 2:42PM

ACORN brown shirts are directed by their boss - Abu Hussein from Kenya, our Community Organizer-in-Chief. They are his system of local soviets (in Russian soviets=community organizations) charged with voter registration fraud and real voting fraud. Their Housing Corporation together with intimidation of banks are the primary cause of the mortgage and banking crises, including the bankruptcy of Fannie and Freddie. Stimulus bill has $8.7 billion for them in this census year.

Inge| 3.3.10 @ 4:28AM

Whenever I hear the word 'Affordable" in any of the liberal organizination, I already know that it is connected to dubious, or outright deceptious motives. Without ACORN, and instituted voterfraught in 2008, Obama would NOT have won, regardless whther McCain was a lousy contender.
I also think that libs once more count on voterfraud to continue their lust for power, since none of the libs worry too much about elections coming up.

Thorvald| 3.3.10 @ 8:18AM

If prosecutions don't slow them down, there are a lot of simple men who'd like to "take them rascals down to the swamp, put 'em on their knees, and tie 'em to a stump."

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To The Republic| 3.9.10 @ 5:54AM

It's time to beat 'em at their own game... Go to the websites they have posted over the years. Look at the ribbon-cutting photos they love to include in them and identify the many different corps. that have played kiss-up, all the while knowing what was going on. Contact these companies and let them know that it is either ACORN or us. Let's make certain that we avoid the party line in November and vote for the candidates that have avoided the PR game during their careers. Check voter awareness websites that give break downs on candidates' past.

David| 3.31.10 @ 10:04AM

They must be stopped. Their cruelty must be stopped for the good of all the people. People must be one to fight and stop them.

Sean| 6.9.10 @ 11:06AM

Our tax dollars at work

Steve| 6.20.10 @ 9:06PM

Let's just hope that the corruption can be stopped in case these people are actually doing the good things their charter suggests they should be. It's intolerable to have corruption in organizations funded by the tax payers. Transparency is the only solution.

Ingvar Gud| 7.9.10 @ 11:10AM

This is a typical case of corruption .....

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Sebrina "Housing Grants Diva"| 10.24.10 @ 11:17AM

It is unfortunate how corrupt ACORN has become.

Speaking as someone that used to be their target "customer", ACORN is a great idea but the people running it are no longer executing on the organization's original mandates.

Dealing with ACORN and the other public sector assistance programs I contacted to secure some assistance for the purchase of a new home was a nightmare at best; I ended up working with a privately-owned foundation that was extremely helpful and able to quickly turnaround a grant for my family.

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Montreal Dentist| 10.29.10 @ 12:59PM

How exactly are they able to get away with this? This is very eye-opening, and at the same time, I'm not exactly surprised after reading the whole article... thanks, good stuff.

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iddaa| 12.21.10 @ 12:19PM

ACORN brown shirts are directed by their boss - Abu Hussein from Kenya, our Community Organizer-in-Chief.

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Decided to Quit| 12.30.10 @ 9:03AM

Dentist in Palm Coast| 3.10.11 @ 2:10PM

There will never be an end to the Town House. ACORN is never going to stop and they will never really get in trouble, they will just be left off the hook.

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Best Kitchen Appliances| 3.19.11 @ 10:33PM

Thanks for the reminder. Something really needs to be done about these guys.

Nance Realtor| 3.22.11 @ 6:18PM

I'm waiting for the day that Acorn goes down.

Kurt| 3.31.11 @ 3:08PM

I think its just amazing that ACORN got away with as much as it did for so long. Good for HUD for looking into this.

Nerds Next Door| 4.1.11 @ 12:21PM

Looks like ACORN is pretty much no more. So is this a non-issue now? Or have they evolved somehow? Where did they go, it's probably too much to hope that they died out.

Brian| 4.5.11 @ 5:17PM

Where have Acron gone? are they still around? I have looked for some more info on them.. and can not find anything.

แรน| 4.22.11 @ 12:48AM

Let's make certain that we avoid the party line in November and vote for the candidates that have avoided the PR game during their careers. Check voter awareness websites that give break downs on candidates' past.

Home in Seattle| 5.20.11 @ 1:32PM

I actually learned what ACORN was, Thanks.

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Mr. Funny Shirts| 8.13.11 @ 7:05PM

Didn't Acorn just shut down and emerge as a new entity starting this stuff all over again?

Curtis| 8.18.11 @ 11:25AM

Glad these guys got de-funded

Mr. How to Read Palms| 9.5.11 @ 6:37AM

On November 2, 2010, ACORN filed for Chapter 7 liquidation, effectively closing the organization. From Wikipedia. Yeah they're closed.

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Jobs| 9.22.11 @ 10:32AM

@MR.How to Read Palms, It's about time these people were finally shut down. Good riddance.

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