[Congressional Record Volume 141, Number 172 (Thursday, November 2, 1995)]
[Senate]
[Page S16629]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NUNN:
  S. 1387. A bill to provide for innovative approaches for 
homeownership opportunity, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.


       the homesteading and neighborhood restoration act of 1995

  Mr. NUNN. Mr. President, I rise today to discuss one of our Nation's 
most critical problems--the lack of affordable housing for low income 
people. As my colleagues know, housing is one of the most basic human 
needs. Lack of it is a problem which plagues every State, in both urban 
and rural areas. Today I would like to remind my colleagues of an 
organization founded on the belief that this is unacceptable. This 
organization is Habitat for Humanity International.
  Habitat is a nonprofit, ecumenical Christian housing ministry founded 
in 1976 by Millard and Linda Fuller and based in Americus, GA. Its 
ambitious goal is nothing less than to eliminate poverty housing and 
homelessness from the world. Since 1976, Habitat has constructed 40,000 
homes worldwide, in every U.S. State and in 45 other countries. As a 
result of Habitat's efforts, a quarter of a million people worldwide 
are living in safe, decent, and affordable housing.
  Though Habitat has chapters all over the globe, its work is done on a 
truly grass roots, individual basis. Through volunteer labor and tax 
deductible donations of money and materials, Habitat joins with the 
partner family to build or rehabilitate a house. Habitat houses are 
then sold to partner families at no profit, financed with affordable 
loans with no interest. The homeowners' monthly mortgage payments go 
into a revolving fund which finances the building of more houses.
  As the numbers I mentioned a moment ago demonstrate, this has been a 
fantastically successful concept. In my view, though, the idea at the 
heart of Habitat's success is the idea of ``sweat equity.'' Part of the 
deal presented to a potential homeowner is that they must contribute 
their own hard work and sweat to the construction of their home and the 
homes of others. In this way, the family builds a tangible bond to the 
finished product, and therefore has a strong interest in maintaining 
it. In addition, the contribution of sweat equity leads new homeowners 
to a stronger sense of community responsibility--contributing to the 
decency and safety of their street and neighborhood.
  In this way, Habitat not only builds new homes, it also helps rebuild 
the internal sense of community that has declined in our Nation. By 
giving families a home--not a handout from a faceless Government 
bureaucrat, not a benefit check, but an opportunity to dedicate their 
hard work to owning their own home--Habitat helps to combat the despair 
and apathy evident in so many of our communities.
  For these reasons, I am introducing today the Homesteading and 
Neighborhood Restoration Act of 1995. This legislation, which is 
supported by such diverse interests as former President Carter, Speaker 
Gingrich, and HUD Secretary Cisneros, directs the Secretary of Housing 
and Urban Development to reprogram $50 million in existing HUD funds 
into a grant program for Habitat for Humanity and other low cost 
housing organizations. In keeping with Habitat's policy of refusing to 
accept Government funds for actual construction work on dwellings, the 
funds could only be used for land acquisition or infrastructure 
improvements, and only in the United States. The bill directs that half 
of the reprogrammed dollars would be granted to Habitat, and the other 
half would be held in reserve for other similar organizations to 
compete for. Any funds not claimed by qualified organizations would be 
granted to Habitat.
  My estimates indicate that the funds included in this legislation 
would allow Habitat to begin construction on 5,000 new dwellings across 
the Nation immediately. Additionally, as new homeowners begin to pay 
back their loans, the money would be recycled to build even more homes.
  So many times we in Congress must allocate Government dollars based 
on a sense of trust--with very little assurance that the taxpayers' 
funds will actually yield any results at all. Thankfully, this 
legislation does not necessitate Congress taking such a leap of faith. 
The successes of Habitat for Humanity are standing already in brick and 
mortar in 40,000 places around the world. This legislation will enable 
them to expand their successes to many more locations. This is a 
private initiative that really works, and I urge my colleagues to 
support it.
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