[Congressional Record Volume 147, Number 21 (Wednesday, February 14, 2001)]
[Extensions of Remarks]
[Page E176]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF THE HOMEOWNERSHIP OPPORTUNITIES FOR UNIFORMED SERVICES 
                           AND EDUCATORS ACT

                                 ______
                                 

                          HON. JOHN J. LaFALCE

                              of new york

                    in the house of representatives

                      Wednesday, February 14, 2001

  Mr. LaFALCE. Mr. Speaker, today, along with my colleague 
Representative Leach and a number of other Members of the House, I will 
be introducing the Homeownership Opportunities for Uniformed Services 
and Educators Act, also known as the ``HOUSE Act.''
  The HOUSE Act authorizes I% down payment FHA mortgage loans for 
prekindergarten through 12th grade teachers, policemen, and firemen 
buying a home within the school district or local employing 
jurisdiction. This significantly reduces the down payment hurdle. For 
example, the down payment on a $132,000 home would be lowered from 
around $6,270 to only $1,320. In higher cost areas the effect would be 
more dramatic.
  Moreover, for qualified borrowers, the bill defers the 1.5% up-front 
FHA premium that FHA customarily charges, which currently ranges from 
$1,980 to $3,590, depending on the size of the loan. Moreover, this 
deferred fee is reduced by 20% for each year of public service in the 
community, and entirely waived after five years of continued service.
  Down payment and loan fee reductions will have the effect of helping 
school districts and localities recruit and retain qualified teachers, 
policemen and firemen. It will also make it easier for these public 
servants to buy a home within the community they work. And, the bill's 
premium waiver feature provides an incentive for continued public 
service in the local community.
  The Congressional Budget Office (CBO) has estimated that the bill 
would generate 125,000 new loans to teachers, policemen, and firemen 
over the next five years. CBO also determined that the bill would 
actually increase the federal budget surplus by $162 million over the 
same period.
  This legislation is supported by the Fraternal Order of Police, the 
American Federation of Teachers, the National Education Association, 
and the American Association of School Administrators.
  Moreover, the bill enjoys bi-partisan support, and was in fact passed 
by the House last year, as Section 203 of H.R. 1776. Unfortunately, it 
died when the House and Senate failed to reach agreement. I urge my 
colleagues to join us in cosponsoring this important legislation, so 
that we may enact it into law this year.

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