[Congressional Record Volume 148, Number 80 (Monday, June 17, 2002)]
[House]
[Pages H3573-H3576]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RECOGNIZING NATIONAL HOMEOWNERSHIP MONTH
Mr. GARY G. MILLER of California. Madam Speaker, I move to suspend
the rules and agree to the concurrent resolution (H. Con. Res. 415)
recognizing National Homeownership Month and the importance of
homeownership in the United States.
The Clerk read as follows:
H. Con. Res. 415
Whereas the President has issued a proclamation proclaiming
June 2002 as National Homeownership Month;
Whereas owning a home represents the American dream for our
Nation's families;
Whereas the national homeownership rate has increased to
67.8 percent, higher than at any other time in history for
all demographic groups, and homeownership rates among
minority families are increasing faster than such rates for
the population as a whole;
Whereas the purchase of a home is oftentimes a family's
largest personal investment;
Whereas homeownership provides economic stability and
security for homeowners and their communities by allowing
homeowners to build wealth over the life of the home and have
a greater stake in local schools, civic organizations, and
churches;
Whereas improving homeownership opportunities requires the
commitment and cooperation of private, nonprofit, and public
sectors, including the Federal Government and State and local
governments; and
Whereas the current policies of the United States
Government and the Congress encourage homeownership and
should continue to do so in the future: Now, therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That the Congress--
(1) fully supports the goals and ideals of National
Homeownership Month; and
(2) recognizes the importance of homeownership in building
strong communities and families in the United States.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Gary G. Miller) and the gentleman from Massachusetts
(Mr. Frank) each will control 20 minutes.
The Chair recognizes the gentleman from California (Mr. Gary G.
Miller).
General Leave
Mr. GARY G. MILLER of California. Madam Speaker, I ask unanimous
consent that all Members may have 5 legislative days within which to
revise and extend their remarks on this legislation and to insert
extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. GARY G. MILLER of California. Madam Speaker, I yield myself such
time as I may consume.
Madam Speaker, H. Con. Res. 415 recognizes National Homeownership
Month. First, I would like to thank the gentleman from Ohio (Mr.
Oxley), chairman of the Committee on Financial Services, for his
interest in this issue. The chairman looks for ways to get involved in
housing issues. His willingness to look at new ideas and focus on long-
term solutions is really encouraging to the rest of the members of this
committee. The gentleman from Massachusetts (Mr. Frank), the ranking
member on the Democratic side, has been very encouraging and also
forthright in looking to issues and ways to resolve the housing crisis
in this country.
Homeownership is the American dream. I introduced this resolution
because I feel so strongly about homeownership. This country is home to
people of many different origins; but everyone seems to have the same
dream, to own their own home. This dream means many things to many
people, independence, financial security, geographic stability, the
ability to accumulate personal wealth, a place to raise a family, a
prized possession to decorate and improve, or simply a place to go
after a long day of work and find peace.
As a homebuilder for over 30 years, I enjoyed watching many people
achieve this dream. You could always see the excitement and
anticipation in the face of a new homebuyer. I believe very strongly in
the dream of homeownership, and I was pleased to see President Bush
recognize it by proclaiming June 2002 National Homeownership Month. I
look forward to working with him and HUD Secretary Mel Martinez to
further the goal of this proclamation.
The role of the Federal Government in homeownership: when I first
started my business, I had an old van that used more oil than gas and
every tool I had was in a cardboard box in the back of it. It was a
small company and I grew that company over the years. But with each
passing year, I saw the impact of government on the housing industry
and with each year came more government laws and regulations making it
harder to build a home. The red tape kept increasing costs, which in
business you have to pass on to the consumer. Homes kept getting more
expensive.
During National Homeownership Month, I think it is very important
that we talk about how the government is impacting home prices. Last
month, a 27 percent tariff was placed on Canadian softwood lumber,
which will be used to frame homes. This will increase the cost of a new
home by at least $1,500. Although we have a very similar species of
wood that is native to the Pacific Northwest, Federal logging
restrictions have reduced the supply below demand, so builders need to
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import it. The Endangered Species Act is often interpreted to give
rats, frogs and plants more rights than people.
In some parts of the country, in my district, specifically, in
southern California, the heavy burden of Federal, State and local
mandates is creating a generation of people who cannot afford to live
in the community where they work and grew up. I call these people the
new homeless. Exactly who are the new homeless? In my district it might
be a couple whose husband might be a firefighter and the wife is a
teacher. They have a good job and they make a good living, but their
combined income does not qualify them to buy a median-priced home in
Southern California. This is a national problem also occurring in New
Jersey, New York, Massachusetts, Colorado and Oregon, among other
places. The new homeless either end up renting, postponing the American
dream of homeownership, or they commute, sometimes hours, until they
find a community they can afford to live in. Although they may be
homeowners, the only time they really spend in their home is the 8
hours they spend in bed. Most of the other 16 hours of the day are
spent working and commuting to and from work.
I would encourage my colleagues to talk to their D.C. staff to see if
you have any of the new homeless individuals in your offices. One of my
legislative assistants has been looking for a condo since January. In
that time, she has been outbid by $40,000 on an 854 square-foot condo
that is $40,000 above the asking price and lost out on another
opportunity to bid because she got to the property on a Sunday morning
the day after it had gone on the market, and it was already under
contract. She is almost priced out of the marketplace in the area and
about ready to move to a cheaper part of the country. My legislative
director and his wife bought a home in Sperryville, Virginia, which is
about 2 hours from here. In both cases, the dream of homeownership is
becoming a question of affordability and quality of life.
Although nationally homeownership is at an all-time high of 67.8
percent, there are pockets in this country where that statistic is
significantly lower, and H. Con. Res. 415 states that improving
opportunities for homeownership requires the commitment and the
cooperation of all levels of government, Federal, State and local. I
hope that National Homeownership Month will encourage that.
The Federal Commitment to Improving Homeownership: I feel strongly
about this issue because homeownership is the key to personal wealth in
our country. When someone buys a home, they purchase an asset which
will grow over time; and as equity accumulates, so does personal
wealth. The role of the Federal Government should be to help
individuals and families move into homeownership so they would have the
ability to achieve personal wealth.
I am so pleased that President Bush has announced his aggressive
agenda to expand homeownership opportunities to at least 5.5 million
families before the end of the decade. The Federal Government has a
long history of supporting housing programs. FHA allows people to
become homeowners with as little as 3 percent for a down payment. The
Federal Home Loan Bank of San Francisco is working on a program that
will help some of the new homeless achieve the dream of homeownership.
They have teamed up with the San Francisco Chamber of Commerce and
other organizations to offer loans to about 300 middle-income families.
What is unique is how they define middle income, because in San
Francisco that includes families making about $100,000 a year.
While there are also great programs helping specific groups of
people, I agree with President Bush, we can and must do more to expand
homeownership opportunity to all people in this country.
Long-term solutions: when most people talk about housing, they tend
to focus on the low-income end of the spectrum. While I agree that
assisting this group is important, I firmly believe that until we
address the new homeless and begin creating a move-up market for the
low-income individuals, we will not resolve our affordability entry
level housing crisis.
{time} 1445
The Federal Government supports a lot of great programs such as
section 8 rental vouchers, which target low- and moderate-income
families. But now these programs are starting to experience
inefficiencies because there is no move-up market for the people in the
section 8 housing to move out to.
Programs like section 8 rental vouchers are crucial to moving
families off welfare and can meet the needs of families who experience
an emergency such as a job loss or death of a spouse. However, they
should not be considered long-term solutions. Because we do not have a
move-up market for a section 8 voucher family, they get stuck relying
on government. If they make too much money and no longer qualify for
the voucher, they cannot afford to move into their current community;
and because they continue to tie up the voucher, other families who
need assistance are stuck on waiting lists.
In some areas such as Los Angeles, families are waiting years to get
a voucher. This problem is compounded by the lack of housing supply
because landlords can charge much higher rents, usually to the new
homeless families who can pay the rent, but then cannot save for the
down payment.
There is no real incentive to be part of the section 8 voucher
program. Fifty-nine percent of Los Angeles section 8 voucher recipients
cannot find a place where they can use the voucher use the voucher. To
truly address the housing problem in our country, we need a real
solution, not a Band-aid. We need policies which encourage the private
sector to provide the housing that is needed; and this is something
that the Federal, State, and local governments must really take on, and
take on in a serious manner.
I am pleased with President Bush that he has recognized this problem
and has a plan to expand home ownership opportunities by working with
the private sector to overcome the obstacles facing the new homeless as
well as low- and moderate-income families. I am anxious to learn more
about his proposal and do everything I can to produce a bill that will
implement it.
In conclusion, National Home Ownership Month is exciting. It has
created a forum for us to start addressing issues that impact
homeownership. I encourage my colleagues to support H. Con. Res. 415
and take time this month to talk to the public housing authorities,
Realtors, lenders, and especially perspective homebuyers in their
districts to learn about the issues affecting homeownership.
Madam Speaker, I reserve the balance of my time.
Mr. FRANK. Madam Speaker, I yield 5 minutes to the gentlewoman from
the District of Columbia (Ms. Norton).
Ms. NORTON. Madam Speaker, I thank the gentleman from Massachusetts
for yielding me time.
Homeownership Month should be a time to study and take note of both
the successes and the problems our country faces in homeownership. The
President is in Atlanta speaking today about homeownership for minority
Americans, and I applaud him for doing so.
The reason one focuses on minority Americans, people of color, is
because of a success story. During the New Deal, one of Roosevelt's
aims was for every American to own her own home. Today, we can say that
almost every American does own her own home. The average American has
obtained homeownership; and if we look at who has not, who has not are,
of course, those who have had other disadvantages in society, and
particularly people of color.
In the 1990s we had an extraordinary housing boom and people of color
forged ahead in homebuying as never before. But with the housing boom
came economic boom that has very much subsided. Indeed, unemployment
continues to go up every month, even given all of the prognostications
about the recession being over. Even so, the housing boom brought a
housing bust for many families.
If you live in the District of Columbia or any suburb of any great
city in the United States, finding affordable housing is like looking
for a needle in a haystack. It has gone to the top of the list of
American problems, receiving, however, almost no attention in our
country and certainly no attention from this body. It is a great
problem of our time.
I do want to focus on a great success story here in the Nation's
Capital,
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however. I was able in 1997 to get a $5,000 homebuyer credit for people
who buy homes in the District of Columbia if you have not owned a house
previously in the District and if you have an income of up to $90,000
for single people and up to $130,000 for married people. It goes up to
that degree because the need in the District was for middle-income
people. We have got more poor people than most other parts of the
region.
A $5,000 homebuyer credit, of course, can be the down payment on a
$100,000 House; and Fannie Mae has monetized the homebuying credit,
meaning it is in fact the down payment for many people.
An independent study has looked at the $5,000 homebuyer credit and
what it has done for this city and what a similar credit given by
States could do for other large cities. The Greater Washington Research
Center in one study found that over half of those who bought homes said
the credit caused them to buy at this time. In 2000, 50 percent of
those who bought homes in the District of Columbia bought homes because
of the credit.
I have a provision before the House that would make the $5,000
homebuyer credit, perhaps the most successful economic stimulus in the
city's history, permanent. It is chiefly responsible for stemming the
flight that almost destroyed the city's tax base during the 1980s and
during the financial crisis of the 1990s. The credit offers significant
evidence that a tightly targeted tax incentive can have a major
turnaround effect on a central problem confronting a city. The credit
has been so successful that we have recommended that States do the same
for many large cities that are rapidly losing taxpayers.
70 percent of the D.C. homeowners who purchased homes the year after
the credit was passed did so because of the credit. The $5,000
homebuyer credit has proved itself so quickly and well that I have been
able to get it repeatedly extended by Congress. It is minimally
necessary if the city is to have any chance of increasing its still
small and depleted tax base, which is an urgent necessity in this city
at this time.
I am grateful that the gentleman from Illinois (Speaker Hastert) has
been working with me to extend the credit. Most such credits go up to 9
years. I have had to go every 3 years to get this credit extended. It
expires at the end of the next fiscal year, the end of 2003.
The city, your Nation's Capital, needs 100,000 more residents for the
capital city to be stable. This credit has proved its worth, using
market forces and a tiny tax base, this tax credit provided by the
Federal Government. States can do that for cities like Boston and
Chicago. Only the Federal Government can do this for the capital of the
United States. It has been an extraordinary success. It has helped us
to get a diverse tax base once again.
Mr. GARY G. MILLER of California. Madam Speaker, I yield myself 3
minutes.
Madam Speaker, this resolution and what the President is trying to do
is an attempt to help people. The best thing you can do to help people
in this country is enable them to help themselves.
I remember when I was a boy, I moved to California when I was a year
old from Arkansas, and at that point in time I lived in South Whittier,
which was the district of my good friend from the Democrat side, the
gentlewoman from California (Mrs. Napolitano).
At that time it was a bunch of immigrants. It was ``Arkies'' and
``Okies''; and we had one thing in common, we were poor. My dad left my
mother when I was 6 months old and I was raised by my grandparents. We
lived in a poor community, but it was our home; and in that home we
established pride, and with that pride grew equity.
Today that community is still a community of poor people, but now
they are from Mexico and Latin America; but they still have the same
thing in common that I did with my neighbors at that time: we were
poor.
Homeownership means a lot. What can we do? We need to make sure that
the States understand how important it is that we provide opportunity
for people through homeownership. I applaud the gentleman from
Massachusetts (Mr. Frank). The gentleman from Massachusetts (Mr. Frank)
looks at this issue, and he understands that section 8 vouchers are
great because they help people that need help; but we have never found
a unit that has been built with a section 8 voucher.
In order to make sure that people have a place to live, we have to
make sure that there is an affordable housing stock that is a level
above a section 8 voucher, and that is for people to move out of
section 8 homes into affordable homes. With that comes equity, and with
that comes a future, and with that comes prosperity for their children
and their future.
We need to do everything we can in this country to focus the light on
what the problem is. In many cases the problem is government. We need
to focus on that issue fervently. The President and the chairman of
HUD, Secretary Martinez, are doing what they need to to look at issues
and say how can we fast track the process where people can get permits
to build houses. How do we eliminate a lot of the restrictions and red
tape and regulations? How do we tackle the Endangered Species Act?
I have seen projects in my district that took 5 years to process,
where they finally got entitled through the county, only to find
because of a lawsuit that the Federal Government placed a mandate over
that they now own rat habitat. After 5 years, the project ended up
having a designation of ``habitat for a rat.''
I really believe that people are more important than rats. Yes, we
need to be concerned about the environment, but there was a time in
this country when we used to swat flies and poison rats. Now we set
aside habitat for those little critters. The problem is, it is not a
federally owned habitat; the habitat is owned by private property
owners, and that is wrong.
We need to resolve the problems in this country, we need to provide
opportunity for people to buy homes, and we need to deal with the new
homes properly.
Madam Speaker, I reserve the balance of my time.
Mr. FRANK. Madam Speaker, I yield myself such time as I may consume.
Madam speaker, I would like to note that I am glad to be here
endorsing the importance of homeownership; but as the gentleman from
California indicated, homeownership is very important for a significant
segment of the population, indeed, we hope for a very large majority.
But there will always be people among us who, for economic reasons in
particular, will not be able to afford homes, and a rounded housing
policy, we will do everything we can to help with homebuilding. It will
also help with rental, including the production of rental housing.
I hope that we will continue to support a balanced program, indeed,
with more resources than we have done previously.
Mrs. JONES of Ohio. Madam Speaker, giving every family and individual
the tools they need to buy a home is good for the homebuyer, the
community, and the Nation. We must never lose sight of our goal and
National Homeownership Month is the perfect time to rededicate
ourselves to this goal.
The housing industry is in a unique position to lead the Nation out
of recession in 2002. A new report issued by the National Association
of Home Builders, ``Housing--The Key to Economic Recovery,'' shows that
housing accounts for about 14 percent of the Nation's Gross Domestic
Product, or about one out of every seven dollars spent in the U.S. each
year.
The same report shows that the construction of 1,000 single-family
homes generates 2,448 jobs in construction and construction-related
industries, approximately $79.4 million in wages and more than $42.5
million in Federal, State and local tax and revenue fees. Construction
of 1,000 multifamily homes generates 1,030 jobs in construction and
related industries, approximately $33.5 million in wages, and more than
$17.8 million in Federal, State, and local tax revenue and fees.
Minority purchase power is rising. Hispanics homeownership increased
39 percent between 1994 and 2000. African-American homeownership
increased 24 percent in that same period. However, minority
homeownership rates are almost 30 percent lower than the overall
national rate.
Homeownership is a wise investment for long-term financial security,
and an investment in America.
Ms. EDDIE BERNICE JOHNSON of Texas. Madam Speaker, I rise today in
support of H. Con. Res. 415. As we commemorate National Home Ownership
Month throughout the month of June, it is the perfect time to remember
that nothing sustains the American dream like
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owning a home. Home ownership is an essential tool for strengthening
our communities and allowing more Americans to accumulate wealth. Homes
are where our Nation's families grow, where lives are shaped and where
decisions are made.
It is essential that we work to increase the ranks of homeowners in
every community across this country, and in particular among members of
the African-American community, whose home ownership rates have
traditionally lagged far behind other groups.
According to the 2000 census, African-Americans recorded a $27,910
median household income--the highest ever recorded--while recording
record-low poverty rates. In 2001, it was estimated that the total
income for African-Americans exceeded $565 billion, and more than half
of African-American married couples had incomes of at least $50,000.
Yet, according to the U.S. Department of Housing and Urban
Development, only 48 percent of African-Americans own homes, compared
to 74 percent of white families. And, in a recent study, 36 percent of
African-Americans believed that access to capital was their greatest
barrier to owning a home.
These statistics show that many families of color are unable to
capitalize on the benefits that home ownership provides. For far too
long minority communities have been left out of the home ownership
process. Though the number of African-American homeowners has increased
by more than 20 percent in the last decade, too many people of color
are missing out on the power of home ownership because they've fallen
prey to decades of unfair lending practices, lack of savings or lack of
affordable housing. As we all know, without proprietorship we have no
power. This is whey we must take responsibility to ensure that our
families can prosper through the benefits of owning a home.
That is why the Congressional Black Caucus Foundation created the
``With Ownership, Wealth'' initiative to promote access to lending and
home ownership education and resources for people of color. This
initiative is one way that the CBCF is letting people know the
importance of home ownership and connecting those people with the
funding sources that can make that dream a reality. Since its
inception, the Congressional Black Caucus has championed equality for
all, and the WOW initiative is merely an extension of our fight to
ensure that all Americans will have the opportunity to experience the
prosperity that is felt by too few.
Combined with the CBC's agenda to increase the Nation's home
ownership rates, this program will serve to develop the all-inclusive
America of which we have only dreamt for far too long.
I applaud the Congressional Black Caucus Foundation, under first the
extraordinary leadership of Congresswoman Eva Clayton and now the
groundbreaking leadership of Congressman Jefferson, for helping us
forge ahead with this incredibly important initiative which will help
all Americans realize the American dream.
We still have much work to do to educate consumers about the value--
and the responsibility--of owning a home, but I am pleased that more
resources are available than ever before to assist potential homebuyers
in making this first step toward acquiring wealth. When we give people
the right tools to purchase a home, we put them on a road to financial
success.
America is only as strong as it communities, and communities are only
as strong as the families that live within. Home ownership is part of
the foundation of a stable family. It provides a base for marriages to
grow, a safe environment for children to learn, and the center through
which families bond. Just as importantly, home ownership is the first
step to wealth acquisition, and a primary mechanism for building a
family asset base.
Ms. JACKSON-LEE of Texas. Madam Speaker, today I rise to voice my
support for H. Con. Res. 415, Recognizing National Homeownership Month.
Today, there are 73 million Americans, who own a home. As our economy
slowed down, housing is the glue that holds the Nation's economy
together. This fact alone offers a compelling argument in support of
homeownership. Owner-occupied property made up 21 percent of all
household wealth in 1998. Moreover, the Federal Reserve says that this
was more than 71 percent of all tangible wealth. Housing generates more
than 22 percent of the Nation's Gross Domestic Product. Housing
accounts for 32 to 40 cents of every dollar consumers spent.
We are ignoring the fact that less than half of America's minority
families are homeowners. So, while strides have been made, the gap in
homeownership rates is unacceptable until everyone in America has the
same opportunity for homeownership. Because where homeownership
flourishes, neighborhoods are more stable, and residents are more
civic-minded. In addition, schools are better, and crime rates decline.
We are marking this month with events across the country. This is our
opportunity to spread the word about homeownership--especially to
minority families, who own far fewer homes of their own than non-
minority families do.
H. Con. Res. 415 helps to recognize homeownership, thus more
Americans become homeowners. This is the central mission at HUD.
Congress has a long-standing commitment to homeownership. The American
housing finance system is the best in the world. Moreover, I support
President Bush's initiative to increase minority homeownership as once
I did our past President William Jefferson Clinton's efforts as well.
Therefore, I strongly support H. Con. Res. 415.
Mr. FRANK. Madam Speaker, I yield back the balance of my time.
Mr. GARY G. MILLER of California. Madam Speaker, I have no further
requests for time, and I yield back the balance of my time.
The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion
offered by the gentleman from California (Mr. Gary G. Miller) that the
House suspend the rules and agree to the concurrent resolution, H. Con.
Res. 415.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. GARY G. MILLER of California. Madam Speaker, on that I demand the
yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________