[Congressional Record Volume 144, Number 46 (Thursday, April 23, 1998)]
[Extensions of Remarks]
[Pages E652-E653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          RECOGNIZING COLORADO'S FRONT RANGE CONTINUUM OF CARE

                                 ______
                                 

                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                        Thursday, April 23, 1998

  Mr. BOB SCHAFFER. Mr. Speaker, I rise today to speak about a citizen 
coalition known as Colorado's Northern Front Range Continuum of Care, 
whom I recently met with in my Fort Collins office to learn of their 
assessment of the community's need for affordable housing, transitional 
housing, group homes and homeless services. The Continuum of Care is 
comprised of over 125 individuals representing various community 
organizations including Alternatives to Violence, American Red Cross, 
Catholic Charities-Northern, House of Neighborly Service, WIRS, A 
Woman's Place, Weld Food Bank, Greeley Interfaith, Right to Read, 
Cities of Greeley, Loveland, and Fort Collins, Neighbor to Neighbor, 
Fort Collins Authority, Larimer County Mental Health, Larimer County 
Department of Human Services, Loveland Housing Authority, Crossroads 
Safehouse, Crossroads Ministry, Colorado Division of Housing, Ft. 
Lupton Housing Authority, Greeley Housing Authority, Greeley 
Transitional House, United Way of Weld County, Greeley Area Habitat for 
Humanity, CARE Housing, and Funding Partners.
  Continuum of Care was formed for the purpose of inventorying existing 
local resources in the community, and to identify gaps in housing and 
service delivery for special populations. The assessments were achieved 
through the participation of these representatives who developed this 
analysis bringing their particular community experiences to the table.
  The following facts were established concerning the value of the Low-
Income Housing Tax Credit:
  H.R. 2900 would increase the Low-Income Housing Tax Credits to $1.75 
per capita and index the cap to inflation.
  The current cap is severely limiting the state's capacity to help the 
thousands of lower wage families from renting decent, safe and 
affordable housing.
  In 1996, Colorado was allocated $4.5 million in housing tax credits 
but the demand far exceeded this allocation with requests totaling 
$15.3 million.
  The Low-Income Tax Credit is a federal tax credit to investors for 
ten years for up to 9% of their cost of constructing or rehabilitating 
apartments dedicated to lower-wage working families at restricted 
rents.
  Since 1987, the housing tax credit has helped develop over 7,692 
units of affordable housing in 40 counties in Colorado.
  During that same time period in Larimer and Weld Counties, funds 
totaling $4,525,677 were allocated, providing 1,183 new housing units.
  Facts were also presented in support of Private Activity Bonds:
  H.R. 979 increases the Private Activity Bond (PAB) cap from $50 to 
$75 per capita and index the cap to inflation.
  This legislation will stimulate job creation, the production of 
affordable housing, industrial development, environmental cleanup and 
higher education in Colorado.
  Currently the cap is the greater of $50 per capita or $150 million 
per state per year. This computes to about $200 million annually in 
Colorado.
  Annually, this cap is used-up completely. Demand exceeds supply by 
four-to-one.
  In the last two years, over $414 million of private activity bond 
authority yielded a significant positive economic impact for Colorado.
  Over $336 million in tax exempt bond financing for affordable housing 
for our bluecollar work force funded new home ownership and rental 
opportunities.
  $41 million of financing for industrial development (manufacturing 
facilities) and agricultural loans.

[[Page E653]]

  $37 million in student loans to college students.
  Also brought to my attention is the fact that the Federal Department 
of Housing and Urban Development (HUD) is spending less money on 
transitional housing and more on emergency shelters for the homeless. 
Transitional housing is designed to house women and children on a 
temporary basis when they leave an abusive environment and need a safe 
place to live while transitioning to a new home and life.
  Statistics prove that affordable housing is very limited. For 
example, in Weld County, the median home price in 1990 was $68,118, 
climbing to $123,868 in 1996--an 84% increase. Rental rates climbed 
during the same period at 43%, going from $357 to $511, while vacancy 
rates remainded low. During the same time, job growth jumped up 31.7%, 
but most of the new jobs were created in low-paying service and retail 
sectors. With average median family income rising only by 35%, housing 
is unattainable for many.
  It was my concern over the lack of afforable housing that inspired me 
to co-sponsor H.R. 2990, amending the Internal Revenue Code of 1986 to 
increase the amount of low-incomg housing credits which may be 
allocated to each State, and to index such amount for inflation; and 
H.R. 979 (Private Activity Bonds), which will increase the cap and help 
alleviate the pressure on our housing market. Sister Mary Alice Murphy 
described the housing assistance credit as having a positive impact on 
the community. Additionally, I remain firmly committed to eliminating 
the numerous federally mandated regulations which drive up the cost of 
building homes and those which dictate how a community administers 
their programs. I am pleased to carry the message for more affordable 
and available housing to my colleagues for this problem affects not 
only the people of Colorado's Fourth Congressional District, but also 
people nationwide.

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