[Congressional Record Volume 143, Number 32 (Thursday, March 13, 1997)]
[Senate]
[Page S2294]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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             COMMITMENT TO INVEST IN LOW-INCOME COMMUNITIES

 Mr. SARBANES. Mr. President, as a nation we have a deep 
commitment to a decent home and suitable living environment for every 
American family. Housing is the cornerstone for healthy communities, a 
vibrant economy, and a competitive nation. Although we have 
significantly improved housing conditions in the last 60 years, we 
still have a long way to go. The latest figures in HUD's Report to 
Congress on the worst case housing needs estimate that 5.3 million very 
low-income renter households pay more than half of their income in rent 
or live in poor-quality housing. They receive no help. Many of those 
people are elderly or people with disabilities.
  Today, four of the leading non-profit affordable housing producers--
The Enterprise Foundation, LISC--the Local Initiatives Support Corp.-- 
Habitat for Humanity International, and the National Neighborworks 
Network--are committing to a $13 billion investment in low-income 
communities across the country over the next 4 years. Each have built 
successful partnerships, leveraging both public and private resources. 
These partnerships have been critical in supporting local nonprofits to 
not only build affordable housing but also provide services and 
encourage economic development to revitalize these neighborhoods. The 
success of these organizations reverberates in low- and moderate-income 
communities across the country as they address our widespread 
affordable housing needs. Their work is supported by Federal programs 
such as HOME, the Community Development Block Grant, and the Low-Income 
Housing Tax Credit.
  The Enterprise Foundation, based in Columbia, MD, is a true success 
story in the affordable housing industry. Founded by Jim Rouse in 1982, 
Enterprise has raised and committed more than $1.8 billion in grants, 
loans, and equity to finance the development of 61,000 affordable 
homes. They have a number of initiatives including the Enterprise 
Social Investment Corp. [EISC] which works with 176 major American 
corporations to help them find new ways to invest in affordable 
housing. Much of this activity has been made possible by the low-income 
housing tax credit. In addition, Enterprise, along with Fannie Mae, has 
created the Cornerstone Housing Corp., a nonprofit that buys and 
preserves large blocks of multifamily rental housing for low-income 
families. Enterprise also runs an intensive training program to assist 
nonprofit organizations in increasing their technical and management 
abilities.

  Habitat for Humanity International, since 1976, has provided 
approximately 55,000 homes through 1,336 local affiliates across the 
country. Using volunteer labor and tax-deductible donations, Habitat 
builds new homes and rehabilitates existing homes. An average three-
bedroom Habitat home costs approximately $38,300, making homeownership 
for many low-income families a reality.
  The Local Initiatives Support Corporation, established in 1979, 
supports 1,400 community development corporations throughout the 
country. This partnership has created over 64,000 homes and 9.6 million 
square feet of commercial and industrial space.
  Neighborworks is a network of local resident-led partnerships 
supported by the Neighborhood Reinvestment Corporation, a public 
nonprofit chartered by Congress in 1978. The Neighborworks Network has 
produced 38,831 units of affordable housing since its inception and in 
the last 5 years has leveraged $1.5 billion in investment within 
communities.
  In Maryland, I have seen these partnerships work. The Enterprise 
Foundation, along with its subsidiaries, have developed more than 3,700 
units of affordable housing and have committed more than $12.3 million 
in loans and $90.3 million in equity. In Sandtown-Winchester, 
Enterprise's Neighborhood Transformation Program has rebuilt more than 
700 abandoned homes through a comprehensive community revitalization 
effort that works in partnership with local residents and the city of 
Baltimore. Neighborworks has three neighborhood housing services 
affiliates in Maryland--in Baltimore, Salisbury, and Cumberland. 
Between 1994 and 1996 alone these three Neighborworks affiliates 
produced over 600 units of affordable housing and leveraged over $24 
million in investments within these Maryland communities. Habitat for 
Humanity has 16 affiliates in Maryland which have built 89 new homes 
and rehabilitated another 227 homes.

  Today these four organizations are challenging themselves and 
challenging us to continue our successful partnerships through the 
Community Development Block Grant, HOME, and the Low-Income Housing Tax 
Credit. These are programs I have supported and programs which have 
been critical in the production of affordable housing. The HOME 
Investment Partnership, for example, is an initiative I championed. 
HOME provides flexible grants to States and units of general government 
to implement local housing strategies designed to increase 
homeownership for low-income people. By requiring a 25 percent match, 
HOME encourages the public-private partnerships that have proven so 
successful in the production of affordable housing.
  Mr. President, I commend the work of these organizations and applaud 
Enterprise, LISC, Habitat, and Neighborworks for their commitment to 
invest $13 billion in our low-income communities. I fully support our 
continued role in this effective and successful partnership through 
Federal programs like HOME, the Low-Income Housing Tax Credit, and the 
Community Development Block Grant and urge my colleagues to do the 
same. This is an excellent step in the right direction, and I am 
pleased to have the opportunity to highlight the work of these 
organizations and the Federal programs that support them.

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