[Congressional Record Volume 149, Number 56 (Tuesday, April 8, 2003)]
[Extensions of Remarks]
[Page E709]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               H.R. 1276: AMERICAN DREAM DOWNPAYMENT ACT

                                 ______
                                 

                          HON. GARY G. MILLER

                             of california

                    in the house of representatives

                         Tuesday, April 8, 2003

  Mr. GARY G. MILLER of California. Mr. Speaker, we all know that home 
equity appreciation is one of the most important drivers of wealth 
creation in the United States. By helping people become homeowners, we 
promote long-term economic stability for our Nation. It is for this 
reason that I rise today to urge my colleagues to cosponsor H.R. 1276, 
the American Dream Downpayment Act. This important legislation sets 
first-time, low-income homebuyers on the path to homeownership by 
providing help with downpayments and closing costs.
  One of the primary barriers to achieving the ``American Dream'' of 
homeownership for low- and moderate-income people is the lack of 
accumulated wealth and disposable income. Downpayments and closing 
costs are traditionally the most significant obstacles that would-be 
homebuyers face.
  In order to accumulate enough to cover downpayment and closing costs, 
households must consume less and save more or receive assistance from 
relatives or other benefactors. With rent prices skyrocketing, it is 
very difficult for a family to have enough money leftover for a 
downpayment after paying for basic needs such as shelter, health care 
and food. This bill attempts to assist those who have not been able to 
save enough money upfront but who are earning enough to make the 
monthly mortgage payments.
  Downpayment assistance programs are proven successful in expanding 
homeownership opportunities for low- and moderate-income families. And 
the truth is, the private sector has been working, without government 
intervention, to assist individuals and families who lack the necessary 
funds for downpayment and other related costs become homeowners.
  I would like to talk about one such program, based in Rancho 
Cucamonga, CA. The Housing Action Resource Trust (HART) was established 
in 1995 and began its Downpayment Assistance Program in July of 1998. 
HART is an established non-profit housing organization with a proven 
track record. The HART program has partnered with builders and listing 
agents to assist prospective homebuyers across the nation who qualify 
for a first mortgage loan, but fall short of the downpayment and other 
closing costs essential in purchasing a home.
  The HART program has been recognized as one of the top downpayment 
programs in the country. The HART program has helped 40,000 families 
who rent across the country realize their dream of becoming a 
homeowner.
  The American Dream Downpayment Act will complement the tremendous 
work programs such as HART are doing to help build communities. I urge 
my colleagues to make the dream of homeownership a reality for even 
more Americans by supporting this legislation.

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