One of the main reasons Tim Pawlenty initially scared me more than any potential Repub candidate (that is, before finding out he likely wouldn't be able to take Minnesota from Obama) is that he's part of a dying breed. He's as conservative as you can get and still be elected statewide in Minnesota, yet he can sound reasonable long enough to peel off independents. Well, one of his reasonable moments could really hurt him in the Repub primary--his effort to help devout Muslims get their own homes.
As many of you know, many Muslims believe charging interest on loans--the foundation of modern banking--is usurious. That can keep some Muslims from getting houses. The problem was particularly rampant in Minnesota, so Pawlenty hit upon a solution.
In 2004, then-Gov. Pawlenty urged the Minnesota Housing Financing Agency to partner with local groups and businesses in an effort to increase minority homeownership in the state. That partnership became the Emerging Markets Homeowners Initiative. At the time, Minnesota's minority homeownership rate of 42 percent was slightly behind the national average, and part of the reason was that Minnesota's relatively large Muslim population was unable to purchase homes. The MHFA decided to partner with a local group, the African Development Center, in "developing culturally sensitive products," that would allow Muslims to enter the market.
Unfortunately, not many buyers turned up. Remember, this started right around the time the economy started going south. Still, the fact Pawlenty even tried it could potentially be a noose around his neck in the primary, given the anti-sharia hysteria among the base.
In truth, sharia-compliant financing is not nearly the bogeyman that the fringe makes it out to be, according to Islamic law specialist Abed Awad.
While many conservatives believe Sharia-compliant finance is part of a "stealth jihad" to subvert the Constitution, Islamic finance is no more frightening than Kosher food. "You have a segment of society willing to pay more for products as long as they comply with their religious strictures," Awad says. "We want to grow our businesses and make more money. This is the American way." In 2005, when the MHFA issued its plan for increasing minority homeownership, the idea of the U.S. coming under Taliban-style Islamic law was still a fringe conspiracy theory, if it existed at all.
Lately, sharia-compliant financing has become a growth industry. For instance, many banks are offering plans that basically put homes on layaway in order to take out the interest.
So in essence, Pawlenty was merely doing what any halfway competent governor would do--make it easier for people who could afford to own a home to get one. In all likelihood, though, that might get shouted down in the primary. And about the only good thing about it is that it severely hobbles one of the few candidates who on paper could be a threat to Obama.