[Congressional Record Volume 147, Number 39 (Thursday, March 22, 2001)]
[Extensions of Remarks]
[Page E431]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               THE HISTORIC HOMEOWNERSHIP ASSISTANCE ACT

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                        Thursday, March 22, 2001

  Mr. SHAW. Mr. Speaker, all across America, in the small towns and 
great cities of this country, our heritage as a nation--the physical 
evidence of our past--is at risk. In virtually every corner of this 
land, homes in which grandparents and parents grew up, communities and 
neighborhoods that nurtured vibrant families, schools that were good 
places to learn and churches and synagogues that were filled on days of 
prayer, have suffered the ravages of abandonment and decay.
  In the decade from 1980 to 1990, Chicago lost 41,000 housing units 
through abandonment, Philadelphia 10,000, and St. Louis 7,000. The 
story in our older small communities has been the same, and the trend 
continues. It is important to understand that it is not just the 
buildings we are losing. It is the sense of our past, the vitality of 
our communities and the shared values of those precious places.
  We need not stand hopelessly by as passive witnesses to the loss of 
these irreplaceable historic resources. We can act, and to that end I 
am introducing today with a bipartisan group of my colleagues the 
Historic Homeownership Assistance Act.
  This legislation is almost identical to legislation introduced in the 
106th Congress as H.R. 1172, which enjoyed the broad bipartisan support 
of 225 cosponsors. It is patterned after the existing Historic 
Rehabilitation Investment Tax Credit. That legislation has been 
enormously successful in stimulating private investment in the 
rehabilitation of buildings of historic importance all across the 
country. Through its use we have been able to save and re-use a rich 
and diverse array of historic buildings and landmarks such as Union 
Station in Washington, DC.; the Fox Paper Mills, a mixed-used project 
that was once derelict in Appleton, WI; and the Rosa True School, an 
eight-unit low/moderate income rental project in a historic building in 
Portland, Maine. In my own State of Florida, since 1974, the existing 
Historic Rehabilitation Investment Tax Credit has resulted in over 325 
rehabilitation projects, leveraging more than $238 million in private 
investment. These projects range from the restoration of art deco 
hotels in historic Miami Beach, bringing economic rebirth to this once 
decaying area, to the development of multifamily housing in the 
Springfield Historic District in Jacksonville.
  The legislation that I am introducing today builds on the familiar 
structure of the existing tax credit but with a different focus. It is 
designed to empower the one major constituency that has been barred 
from using the existing credit--homeowners. Only those persons who 
rehabilitate or purchase a newly rehabilitated home and occupy it as 
their principal residence would be entitled to the credit that this 
legislation would create. There would be no passive losses, no tax 
shelters, and no syndications under this bill.
  Like the existing investment credit, the bill would provide a credit 
to homeowners equal to 20 percent of the qualified rehabilitation 
expenditures made on an eligible building that is used as a
  The bill also makes provision for lower-income home buyers who may 
not have sufficient federal income tax liability to use a tax credit. 
It would permit such persons to receive a historic rehabilitation 
mortgage credit certificate which they can use with their bank to 
obtain a lower interest rate on their mortgage. The legislation also 
permits home buyers in distressed areas to use the certificate to lower 
their down payment.
  The credit would be available for condominiums and co-ops, as well as 
single-family buildings. If a building were to be rehabilitated by a 
developer for sale to a homeowner, the credit would pass through to the 
homeowner. Since one purpose of the bill is to provide incentives for 
middle-income and more affluent families to return to older towns and 
cities, the bill does not discriminate among taxpayers on the basis of 
income. It does, however, impose a cap of $40,000 on the amount of 
credit which may be taken for a principal residence.
  The Historic Homeownership Assistance Act will make ownership of a 
rehabilitated older home more affordable for homeowners of modest 
incomes. It will encourage more affluent families to claim a stake in 
older towns and neighborhoods. It affords fiscally stressed cities and 
towns a way to put abandoned buildings back on the tax roles, while 
strengthening their income and sales tax bases. It offers developers, 
realtors, and homebuilders a new realm of economic opportunity in 
revitalizing decaying buildings.
  Mr. Speaker, this bill is no panacea. Although its goals are great, 
its reach will be modest. But it can make a difference, and an 
important difference. In communities large and small all across this 
nation, the American dream of owning one's home is a powerful force. 
This bill can help it come true for those who are prepared to make a 
personal commitment to join in the rescue of our priceless heritage. By 
their actions they can help to revitalize decaying resources of 
historic importance, create jobs and stimulate economic development, 
and restore to our older towns and cities a lost sense of purpose and 
community.
  I urge all Members of the House to review and support this important 
legislation, and I look forward to working with the Ways and Means 
Committee to enact this bill.

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