[Congressional Record Volume 144, Number 64 (Tuesday, May 19, 1998)]
[Extensions of Remarks]
[Pages E887-E888]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 THE AMERICAN HOMEOWNERSHIP ACT OF 1998

                                 ______
                                 

                            HON. RICK LAZIO

                              of new york

                    in the house of representatives

                         Tuesday, May 19, 1998

  Mr. LAZIO of New York. Mr. Speaker, today I am proud to introduce 
with my colleagues the ``American Homeownership Act of 1998.'' For most 
Americans, the most important financial investment we make in our lives 
is the purchase of a home. Homeownership creates a sense of community 
and common good, binding neighbors together. Homeownership is the 
cornerstone of strong families, prosperous communities and a dynamic 
nation, and this important legislation is designed to provide all 
families great opportunities to attain and preserve the American dream 
of owning their own home.
  This Act will reduce barriers to the production of affordable 
housing, protect our Nation's senior citizens when they obtain reverse 
mortgages, and enable those who receive federal housing assistance, 
such as public housing or Section 8 housing, to use these funds in 
creative ways to achieve homeownership. This bill contains important 
provisions to assist self-help housing providers, such as Habitat for 
Humanity, in achieving their goals of helping our poor citizens move 
into their own homes. The American Homeownership Act provides increased 
flexibility to State and local governments to leverage federal housing 
funds, provided through the HOME Program, to attain higher levels of 
homeownership in their areas through local homeownership initiatives. 
This bill contains provisions to enhance and improve the manufactured 
housing industry. Moreover, this legislation seeks to address concerns 
raised by Native American groups who fear that federal bureaucratic 
procedures will hinder their efforts to increase homeownership on 
Indian lands.

[[Page E888]]

                     BARRIERS TO AFFORDABLE HOUSING

  We must eliminate the bureaucratic red tape and excessive regulation 
that stifles homeownership. Unnecessary governmental regulation adds 20 
to 35 percent, thousands of dollars, to the cost of a new home 
according to the National Association of Home Builders.
  I am pleased to join with my good friends and colleagues, Tom 
Campbell, Jack Metcalf and Jon Fox to incorporate legislation Mr. 
Campbell has previously introduced to reduce barriers to affordable 
housing.
  The Act requires all Federal agencies to include a housing impact 
analysis with any proposed regulations to certify such regulations have 
no significant negative impact on the availability of affordable 
housing. Local non-profits and community development groups are given 
the opportunity to offer alternatives if it is found that the rule 
would have a deleterious effect on affordable housing.


                     REVERSE MORTGAGES FOR SENIORS

  We must preserve and protect opportunities for senior citizens to 
remain in their own homes near their families and friends. The American 
Homeownership Act makes the FHA-insured reverse mortgage program 
permanent. A reverse mortgage offers sometimes the only tool to for 
``house-rich'', ``cash-poor'' seniors to remain in their own homes by 
providing extra income for living and medial expenses or crucial home 
repairs. We also will require HUD to prohibit financial entities from 
charging senior extortionate fees when obtaining a reverse mortgage in 
response to allegations to fraud and abuse within the program last 
year.


           HOMEOWNERSHIP OPTION IN FEDERALLY-ASSISTED HOUSING

  The American Homeownership Act of 1998 will allow families receiving 
rental voucher assistance under the Section 8 program to use those 
funds in a properly structured homeownership program that would help 
them buy their own homes. Residents and public housing authorities are 
authorized to use funds normally used to pay rents for either 
downpayment assistance or toward mortgage payments.


         HOME, HOME LOAN GUARANTEE PROGRAM, HOMEOWNERSHIP ZONES

  The most innovative tools for expanding homeownership opportunities 
are being created at the state and local level. The American 
Homeownership Act creates a HOME Loan Guarantee program to allow 
communities to tap into future HOME grants for affordable housing 
development. HOME is one of the most successful Federal block grant 
programs, and is designed to create affordable housing for low-income 
families. The Act also provides grant authority for use in 
``Homeownership Zones''--designated areas where large scale development 
projects are designed to reclaim distressed neighborhoods by creating 
homeownership opportunities for low and moderate income families. 
Flexibility is also granted in defining metropolitan areas to allow 
greater homeownership opportunities for suburbs affected by the high 
home prices of nearby cities.


                          MANUFACTURED HOUSING

  More and more families are living in manufactured homes than ever 
before. The days of trailer parks filled with metallic shoebox-shaped 
``homes'' are gone. Many of today's manufactured homes are multi-
sectioned with vaulted ceilings and state of the art appliances. They 
are also very affordable for more than 18 million Americans--$40,000 to 
$70,000 for a new, multi-sectioned manufactured home, compared to 
$158,000 for the average new home.
  I am pleased to join with my colleagues Bob Ney, Ken Calvert, David 
McIntosh and others in including legislation we previously introduced 
to reform and modernize the Federal manufactured housing program.
  The American Homeownership Act of 1998 promotes the quality, safety 
and affordability of manufactured homes by ensuring uniform standards 
and codes for construction across the country. The legislation improves 
the Federal management of the program by establishing a consensus 
committee of consumers, industry experts and government officials to 
advise HUD on regulation enforcement.


                        HOUSING ON INDIAN LANDS

  I am pleased to join with my colleague Mr. Redmond of New Mexico to 
include in this bill an Indian Lands Status Commission which will 
develop recommended approaches to improving how the Bureau of Indian 
Affairs conducts title reviews in connection with the sale of Indian 
lands. Receipt of a certificate from the Bureau of Indian Affairs is a 
prerequisite to any sales transaction on Indian lands, and the current 
procedure is overly burdensome and presents a regulatory barrier to 
increasing homeownership on Indian lands. This Commission is charged 
with providing Congress with methods to address these concerns.
  Mr. Speaker, this homeownership legislation recognizes that the 
strength of our Nation lies in its individual communities, and that 
federal government policy should be encouraging and fostering, instead 
of hindering, the efforts of localities and individuals to achieve the 
American dream of homeownership.

                          ____________________