[Congressional Record Volume 141, Number 82 (Wednesday, May 17, 1995)]
[Extensions of Remarks]
[Page E1058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


      THE INTRODUCTION OF THE HISTORIC HOMEOWNERSHIP ASSISTANCE ACT

                                 ______


                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                         Wednesday, May 17, 1995
  Mr. SHAW. Mr. Speaker, all across America, in the small towns and 
great cities of this country, our heritage as a nation--the physical 
evidence of our past--is at risk. In virtually every corner of this 
land, homes in which grandparents and parents grew up, communities and 
neighborhoods that nurtured vibrant families, schools that were good 
places to learn and churches and synagogues that were filled on days of 
prayer, have suffered the ravages of abandonment and decay.
  In the decade from 1980 to 1990, Chicago lost 41,000 housing units 
through abandonment, Philadelphia 10,000, and St. Louis 7,000. The 
story in our older small communities has been the same, and the trend 
continues. It is important to understand that it is not just the 
buildings that we are losing. It is the sense of our past, the vitality 
of our communities and the shared values of those precious places.
  We need not stand hopelessly by as passive witnesses to the loss of 
these irreplaceable historic resources. We can act, and to that end I 
am introducing today, with my colleagues Mrs. Kennelly, Mr. McCrery, 
Mr. Neal, Mr. Zimmer, Mrs. Johnson of Connecticut, Mr. Gephardt, Mr. 
Goss, Mr. Moakley, Mr. Hutchinson, Mr. Torkildsen, Mrs. Maloney, Mr. 
Richardson, Mr. Hinchey, Mr. Clyburn, and Mr. Nadler, the Historic 
Homeownership Assistance Act.
  This legislation is patterned after the existing Historic 
Rehabilitation Investment tax credit. That legislation has been 
enormously successful in stimulating private investment in the 
rehabilitation of buildings of historic importance all across the 
country. Through its use we have been able to save and re-use a rich 
and diverse array of historic buildings: landmarks such as Union 
Station in Washington, DC, the Fox Paper Mills, a mixed-used project 
that was once a derelict in Appleton, WI, and the Rosa True School, an 
eight-unit low/moderate income rental project in an historic school 
building in Portland, ME. In my own State of Florida, since 1974, the 
existing Historic Rehabilitation Investment tax credit has resulted in 
325 rehabilitation projects, leveraging $238 million in private 
investment. These projects range from the restoration of art deco 
hotels in historic Miami Beach, bringing economic rebirth to this once 
decaying area, to the development of multifamily housing in the 
Springfield Historic District in Jacksonville.
  The legislation that I am introducing today builds on the familiar 
structure of the existing tax credit, but with a different focus and 
more modes scope and cost. It is designed to empower the one major 
constituency that has been barred from using the existing credit--
homeowners. Only those persons who rehabilitate or purchase a newly 
rehabilitated home and occupy it as their
 principal residence would be entitled to the credit that this 
legislation would create. There would be no passive losses, no tax 
shelters, and no syndications under this bill.

  Like the existing investment credit, the bill would provide a credit 
to homeowners equal to 20 percent of the qualified rehabilitation 
expenditures made on an eligible building that is used as a principal 
residence by the owner. Eligible buildings would be those that are 
listed on the National Register of Historic Places, are contributing 
buildings in National Register Historic Districts or in nationally 
certified State or local historic districts, or are individually listed 
on a nationally certified State or local register. As is the case with 
the existing credit, the rehabilitation work would have to be performed 
in compliance with the Secretary of the Interior's standards for 
rehabilitation, although the bill would clarify the directive that the 
standards be interpreted in a manner that takes into consideration 
economic and technical feasibility.
  The bill also makes provision for lower-income homebuyers who may not 
have sufficient Federal income tax liability to use a tax credit. It 
would permit such persons to receive a historic rehabilitation mortgage 
credit certificate which they can use with their bank to obtain a lower 
interest rate on their mortgage.
  The credit would be available for condominiums and co-ops, as well as 
single-family buildings. If a building were to be rehabilitated by a 
developer for sale to a homeowner, the credit would pass through to the 
homeowner. Since one purpose of the bill is to provide incentives for 
middle-income and more affluent families to return to older towns and 
cities, the bill does not discriminate among taxpayers on the basis of 
income. However, it does impose a cap of $50,000 on the amount of 
credit which may be taken for a principal residence.
  The Historic Homeownership Tax Assistance Act will make ownership of 
a rehabilitated older home more affordable for homeowners of modest 
incomes. It will encourage more affluent families to claim a stake in 
older towns and neighborhoods. It affords fiscally stressed cities and 
towns a way to put abandoned buildings back on the tax roles, while 
strengthening their income and sales tax bases. It offers developers, 
realtors, and homebuilders a new realm of economic opportunity in 
revitalizing decaying buildings.
  Mr. Speaker, this bill is no panacea. Although its goals are great, 
its reach will be modest. But it can make a difference, and an 
important difference, in communities large and small all across this 
Nation. The American dream of owning one's home is a powerful force. 
This bill can help it come true for those who are prepared to make a 
personal commitment to join in the rescue of our priceless heritage. By 
their actions they can help to revitalize decaying resources of 
historic importance, create jobs and stimulate economic development, 
and restore to our older towns and cities a lost sense of purpose and 
community.
  I ask unanimous consent that the text of the bill and an explanation 
of its provisions be printed in the Record.


                          ____________________