In all my recent complaining about the government housing industry, I’ve failed to mention that Greensboro is home to one of the all-time classics —- Project Homestead. The history of this boondoggle has been debated in local media and the blogosphere for years now—- Guarino still asks questions— but for immediate purposes I’ll quote from the City of Greensboro’s proposed bankruptcy settlement so everyone can get the big picture:

The bankruptcy trustee for Project Homestead and the city has negotiated a $640,000 claim, which will be submitted to the federal bankruptcy court today, trustee Bill Miller said.

“We had to look at the big picture and come to what seems to be a reasonable compromise,” Miller said Tuesday.

After all the claims are resolved and the final assets are liquidated sometime next year, Miller said, Greensboro is likely to get about 20 percent of its negotiated claim, or about $128,000.

Over the years, the city spent nearly $18 million on the nonprofit home builder, starting in the 1990s, said Andy Scott, Greensboro’s housing and community development director. The builder agreed to use its profits to invest in more affordable housing.

…..In the bankruptcy case, Greensboro claims it is owed $1.3 million, including $480,000 the nonprofit builder diverted for personal use, such as buying firearms, entertainment, travel and expenses, according to court filings.

I knew about the entertainment and the travel, but somehow I missed the firearms. I must not have been reading closely. But the bottom line is the city’s getting a $128,000 return on an $18 million investment. If anyone needed more evidence that government should be in the housing industry, this is it. But still there’s more.