[Congressional Record Volume 149, Number 96 (Thursday, June 26, 2003)]
[Senate]
[Page S8714]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 NEW HOMESTEAD ECONOMIC OPPORTUNITY ACT

  Mr. SMITH. Mr. President, I rise today with great concern. As you are 
aware, President Bush named June National Homeownership Month 2003. I 
am proud that our President has seen fit to promote an aggressive 
homeownership campaign, and I support this administration's efforts to 
see more Americans reach the American Dream of homeownership. As a 
member of the Finance Committee, I have had the opportunity to learn of 
important ways that we can make that a reality. In January I introduced 
the New Homestead Economic Opportunity Act, better known as the 
Homeownership Tax Credit. This legislation will create a single-family 
housing tax credit for developers who build in low income areas, and 
allow more Americans to reach their dreams of homeownership. It will 
also encourage developers of single family units to invest in low 
income areas and improve our communities.
  The Department of Housing and Urban Development has stated that one 
of its goals is to allow every citizen--regardless of race, creed, 
color, or place of birth--the opportunity to own their own home. To 
reach this goal, there must be affordable homes to purchase.
  In his testimony before the Senate Committee on Banking, Housing, and 
Urban Arrairs earlier this month, James Rayburn, the Vice President of 
the National Association of Home Builders stated that the Homeownership 
Tax Credit proposal seeks to close the gap in homeownership rates among 
Americans. While 82 percent of households earning 100 percent or more 
of the national median income now own homes, only 53 percent of 
households earning less than the national median are homeowners. The 
homeownership rate for families earning 80 percent or less of the 
national median is only 40 percent to 45 percent. Homeownership for 
whites is 75 percent, while the ownership rate for African Americans is 
just below 48 percent and 48 percent for Hispanics.
  We can all agree that the quality of life in distressed neighborhoods 
can be improved dramatically by increasing home ownership. Existing 
buildings in these neighborhoods often need extensive renovation before 
they can provide decent owner-occupied housing. It is also difficult 
for renovations to occur because the costs involved exceed the prices 
at which the housing units could be sold. Similarly, the costs of new 
construction may exceed its market value. Properties sit vacant and 
neighborhoods remain devastated. The New Homestead Economic Opportunity 
Act bridges the gap between development costs and market prices and 
will revitalize these areas.
  I would like to see every American given the opportunity to succeed 
at the goal of owning their own home. I am proud to be the sponsor of 
this legislation, and I plan to continue to work to see it become law. 
I urge my colleagues to join me in supporting the American Dream by 
supporting S. 198.

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