Permalinks not working

I am having issues getting permalinks to work on my localhost

I am running Mac OSx with standard php / apache install

When I activate my permalinks to post name I get this error message

403 Forbidden

Forbidden

You don’t have permission to access /~steve02/allisongrayce/index.php on this server.

Here is what I have done so far
—————————————————
htaccess file –permissions set to 777

Options -Indexes
Options +FollowSymLinks

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /~steve%202/allisongrayce/
RewriteRule ^index\.php$ – [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /~steve%202/allisongrayce/index.php [L]
</IfModule>

# END WordPress

—————————————–
etc/apache2/httpd.conf

has the following code in it

# User home directories
Include /private/etc/apache2/extra/httpd-userdir.conf

—————————————–
httpd-userdir.conf has the following code in it

# Settings for user home directories
#
# Required module: mod_userdir

#
# UserDir: The name of the directory that is appended onto a user’s home
# directory if a ~user request is received. Note that you must also set
# the default access control for these directories, as in the example below.
#
UserDir Sites

#
# Users might not be in /Users/*/Sites, so use user-specific config files.
#
Include /private/etc/apache2/users/*.conf
<IfModule bonjour_module>
RegisterUserSite customized-users
</IfModule>

——————————————–

steve 2.conf file has this code in it

<Directory “/Users/steve 2/Sites/”>
Options Indexes MultiViews FollowSymLinks
AllowOverride All AuthConfig

Allow from all
</Directory>
——————————————–

Any suggestions?