[Congressional Record Volume 140, Number 109 (Tuesday, August 9, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 9, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1994

                                 ______


                               speech of

                         HON. RICHARD W. POMBO

                             of california

                    in the house of representatives

                         Friday, July 22, 1994

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 3838) to 
     amend and extend certain laws relating to housing and 
     community development, and for other purposes:

  Mr. POMBO. Mr. Chairman, today I would like to express my support for 
H.R. 3838, the ``Housing and Community Development Act of 1994'', that 
expands home ownership opportunities to the Federal Housing 
Administrations', Single Family Mortgage Insurance Program. In 1979, 
when the $67,500 limit was adopted, the average home price was $65,237. 
In 1993, the average home price was $135,255, in the past 15 years 
there hasn't been an increase in the FHA loan limit.
  I supported provisions in the House and Senate housing bills which 
would raise the maximum FHA loan limit from $67,500 to $100,000 in base 
designated areas, and $151,750, to $172,675 in high cost areas. Raising 
the FHA base loan limit to $100,000 would allow 1.5 million more 
families to buy homes, and raising the maximum loan limit to $172,675 
would allow another 250,000 families to buy homes using FHA insured 
mortgages.
  With H.R. 3838 the FHA could insure home mortgages for up to 
$101,575. A family with a combined household income of $42,000 would 
qualify. These are not high income families, they are people who work 
hard, follow the rules, and deserve an opportunity to own a house. 
Increasing the loan limits for the FHA would allow them to strengthen 
their insurance fund reserves, while increasing HUD's ability to serve 
millions who otherwise would have little hope of becoming homeowners. 
Likewise, last year FHA's national foreclosure rate was less than 1 
percent, a solid accomplishment by the FHA and the new homeowners of 
America.
  I am pleased to see that the House of Representatives passed H.R. 
3838 220-176, on July 22, 1994. In a time of political and economic 
uncertainty, the change for the American people should be to assure 
equality of opportunity.