[Congressional Record Volume 148, Number 84 (Friday, June 21, 2002)]
[Extensions of Remarks]
[Page E1133]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  H. CON. RES. 415, RECOGNIZING NATIONAL HOMEOWNERSHIP MONTH AND THE 
            IMPORTANCE OF HOMEOWNERSHIP IN THE UNITED STATES

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                       HON. JANICE D. SCHAKOWSKY

                              of illinois

                    in the house of representatives

                         Friday, June 21, 2002

  Ms. SCHAKOWSKY. Mr. Speaker, the House of Representatives passed a 
resolution that recognizes National Homeownership Month. Democrats and 
Republicans are united in their support for homeownership. However, we 
should not fool ourselves by claiming that this resolution is going to 
solve our affordable housing crisis.
  We need to back up our words with action. Housing is not a top 
priority of this House or the Administration. HUD provides down payment 
assistance through several of its programs, yet without sufficient 
resources HUD will not be able to accomplish its homeownership goals. 
In fact in real dollars, HUD's budget is one third of what it was 
during the Ford administration. This is unacceptable.
  Yesterday the Financial Services committee marked-up the ``Housing 
Affordability for American Act of 2002.'' Several members of the 
majority voted against an amendment to create a national affordable 
housing trust fund. The approved amendment creates a trust fund that 
utilizes FHA surplus funds. By creating a housing trust fund we can 
provide the necessary resources to build and preserve 1.5 million units 
of rental housing over the next 10 years.
  Also, predatory lending continues to be a serious problem for 
homeowners. The Coalition for Responsible Lending estimates that 
homeowners lose $9.1 billion annually due to predatory loans. Predatory 
lending is especially a problem in the subprime market. People who have 
trouble getting access to conventional mortgages often use the subprime 
market for mortgage assistance.
  Predatory lenders disproportional prey on the elderly and minorities. 
In 2000, HUD completed a study that found that borrowers in upper 
income African American neighborhoods, who would easily qualify for 
conventional, low rate loans, were twice as likely as homeowners in 
low-income white neighborhoods to receive subprime refinance loans. In 
Chicago the number of high interest loans rose 3,685 between 1993 and 
1999. To combat this problem, I and several of my colleagues have 
introduced anti predatory lending legislation. Regrettably, none of our 
bills have been given consideration by the Republican House leadership. 
Simply supporting homeownership is not enough. We must act to make sure 
the people are able to keep their homes as well.
  Homeownership is expensive and it is difficult for people with low 
incomes to own a home. People in Chicago and across the country need 
affordable housing whether it is a home or an apartment. In Chicago, 
we're short 150,000 units of affordable housing. Nationally, there has 
been a 37 percent increase in the number of people seeking emergency 
shelters in the past year and five and a half million people are facing 
the worst housing crisis in the United States. That is why I have 
introduced H.R. 2999 ``The First Things First Act.'' My legislation 
puts tax breaks for the rich on hold until we address our nation's 
housing crisis and other critical needs. This resolution is only 
effective if we take strong actions to make affordable housing a 
reality for America's families.

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