[Congressional Record Volume 150, Number 86 (Monday, June 21, 2004)]
[House]
[Pages H4588-H4590]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              HELPING HANDS FOR HOMEOWNERSHIP ACT OF 2004

  Mr. GREEN of Wisconsin. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 4363) to facilitate self-help housing homeownership 
opportunities, as amended.
  The Clerk read as follows:

                               H.R. 4363

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Helping Hands for 
     Homeownership Act of 2004''.

     SEC. 2. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

       Paragraph (1) of section 11(b) of the Housing Opportunity 
     Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
     amended by striking ``dwelling'' and inserting ``dwellings''.

     SEC. 3. DESIGNATION OF DOUG BEREUTER SECTION 502 SINGLE 
                   FAMILY HOUSING LOAN GUARANTEE PROGRAM.

       (a) Congressional Findings.--The Congress finds that--
       (1) the Cranston-Gonzalez National Affordable Housing Act, 
     enacted November 28, 1990, established the section 502 single 
     family housing loan guarantee program of the Rural Housing 
     Service of the United States Department of Agriculture;
       (2) Congressman Doug Bereuter of Nebraska was the 
     legislative author of the single family housing loan 
     guarantee program;
       (3) 316,625 single family loans have been guaranteed under 
     the program since its implementation in 1991;
       (4) the program facilitates home ownership for low- to 
     moderate-income borrowers in rural areas and nonmetropolitan 
     communities who are unable to obtain conventional home 
     mortgage financing; and
       (5) in 2003, the average income of a borrower with a loan 
     guaranteed under the section 502 guarantee program was 
     $34,124.
       (b) Designation.--Subsection (h) of section 502 of the 
     Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) by redesignating paragraphs (1) through (13) as 
     paragraphs (2) through (14), respectively;
       (2) by inserting before paragraph (2) (as so redesignated) 
     the following new paragraph:
       ``(1) Short title.--This subsection may be cited as the 
     `Doug Bereuter Section 502 Single Family Housing Loan 
     Guarantee Act'.''; and
       (3) by striking the subsection designation and heading and 
     inserting the following:
       ``(h) Doug Bereuter Section 502 Single Family Housing Loan 
     Guarantee Program.--''.
       (c) Conforming Amendments.--Subsection (h) of section 502 
     of the Housing Act of 1949 (42 U.S.C. 1472(h)), as amended by 
     section 2 of this Act, is further amended--
       (1) in paragraph (5)(A), by striking ``paragraph (12)(A)'' 
     and inserting ``paragraph (13)''; and
       (2) in paragraph (14)--
       (A) in subparagraph (A), by striking ``General'' and 
     inserting ``general''; and
       (B) in subparagraph (E)--
       (i) by striking ``paragraph (1) and paragraphs (2), (5), 
     (6)(A), (7), and (9)'' and inserting ``paragraph (2) and 
     paragraphs (3), (6), (7)(A), (8), and (10)''; and
       (ii) by striking ``paragraphs (1) through (12)'' and 
     inserting ``paragraphs (2) through (13)''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Wisconsin (Mr. Green) and the gentleman from Massachusetts (Mr. 
Capuano) each will control 20 minutes.
  The Chair recognizes the gentleman from Wisconsin (Mr. Green).


                             General Leave

  Mr. GREEN of Wisconsin. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  Mr. GREEN of Wisconsin. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I rise today in support of H.R. 4363, the Helping Hands 
for Homeownership Act of 2004. I would like to begin by thanking the 
financial services chairman, the gentleman from Ohio (Mr. Oxley), the 
ranking member, the gentleman from Massachusetts (Mr. Frank), and the 
housing subcommittee chairman, the gentleman from Ohio (Mr. Ney) for 
expeditiously considering this bill and, of course, my co-author, the 
gentleman from Tennessee (Mr. Ford).
  Mr. Speaker, it is very fitting that we are taking this measure up 
this week for three reasons. First, of course, June is Homeownership 
Month. A lot of things have changed in American culture over the years, 
but one thing has not, homeownership remains the cornerstone of the 
American dream. The chance to own, the chance to enhance and improve 
your own home to suit your needs and reflect your own values and 
personality is very much at the heart of the American ideal. But it is 
more than that. Homeownership can be the foundation of vibrant 
neighborhoods and communities. People take better care of their 
neighborhood when they have a direct stake, financially and otherwise 
in that neighborhood's future.
  I think one of the greatest responsibilities we have in Congress is 
to make it possible for more Americans from all backgrounds and all 
walks of life to grasp on to the dream of home ownership. In other 
words, we must work to make that dream come true, very true, and not 
just for the most affluent among us.
  The second reason it is so appropriate for us to take up and pass 
this measure today is that it re-enforces the role and the need for non 
profit and private organizations to help meet this challenge. Last 
year, the most famous of these organizations, Habitat For Humanity, 
dedicated its fifty-thousandth and fifty-thousand and first homes in 
the United States. In its 27-plus years of work, work that began in 
very modest, very humble ways, Habitat has provided affordable housing 
for some 750,000 people worldwide.
  In the U.S. alone, Habitat has more than 1,670 affiliates covering 
approximately 80 percent of our population. One of the top producing 
affiliates is in my home State of Wisconsin. The Milwaukee area Habitat 
For Humanity built 21 new homes in 2002 alone. That means 21 Milwaukee 
families realized the American dream. And many Milwaukee neighborhoods 
gained new stakeholders in the push for a brighter future.
  Habitat is the model for faith-based initiatives that Congress does 
and

[[Page H4589]]

should support. It fulfills its mission not merely by preaching but by 
example, by putting its compassion to work. As one of its most recent 
publications states, ``Just as Jesus Christ healed the sick, fed the 
hungry and restored the soul sick one person at a time, Habitat's 
strength is in its commitment to eliminate substandard housing one 
family at a time.''
  Now, most Americans have heard of Habitat for Humanity. They probably 
have not heard, however, of how Congress has helped Habitat enhance and 
expand its work. For example, in 1996, Congress created the Self-Help 
Home Ownership Opportunity program, called the SHOP program for short. 
This program offers competitive grants for non profit groups like 
habitat for humanity to help with land and infrastructure experiences, 
clearly the two big-ticket items that are necessary for home building.
  SHOP funds help fund local groups across the country, help them 
acquire sites for affordable home and community building. These funds 
help housing advocates leverage their precious resources and make them 
go much further, reaching more families and lifting more communities.
  However, recent legal interpretation of the 1996 law is jeopardizing 
the chance for some local groups like many of Habitat's affiliates, to 
participate in SHOP funded bills. In its 2004 notice of funds 
available, HUD has concluded that H.R. 4363, the SHOP program, the 
sweat equity hours that must be fulfilled by the benefiting homeowners, 
must be earned constructing their own home.
  The problem for groups like Habitat is that they are often built on a 
community building mission and model. Their programs allow folks to 
earn sweat equity hours on their homes but also the homes of others. 
For instance, many habitat affiliates run blitz builds where they build 
a house in one day. Clearly, 24 hours will not be enough for a 
homeowner to meet the sweat equity requirements under the SHOP 
interpretation. So Habitat allows for them to participate in other 
builds to gain additional hours.
  In fact, by working on other family's homes, the program has an even 
greater community development value. It helps build a sense of 
neighborhood.
  H.R. 4363, introduced by the gentleman from Tennessee (Mr. Ford), and 
myself, makes a technical correction to the SHOP Act and restores the 
original intent of Congress when it created this program. It allows for 
blitz build and other community building models to continue the access 
to precious seed money that SHOP offers.
  Finally, Mr. Speaker, the timing of today's action is appropriate 
because this bill also honors one of our most widely respected 
colleagues in the House. Have had the distinct pleasure of serving with 
the gentleman from Nebraska (Mr. Bereuter) on both the Committee on 
Financial Services and Committee on International Relation. He is, as 
anyone here will attest, one of the brightest and most genuine 
individuals serving in Congress.
  My colleague from Nebraska has made his mark in many different areas, 
but perhaps one of his greatest legacies of the creation of the USDA 
section 502 single family housing loan guarantee program. Thousands of 
Americans living in rural parts of country have been able to achieve 
homeownership through this program. I am honored that this bill will 
rename the section 502 program after its founder, the gentleman from 
Nebraska (Congressman Bereuter). I cannot think of a more fitting 
tribute. I am honored to have had the chance to work with him for the 
past few years. I wish he and his family nothing but the best.
  Mr. Speaker, I urge my colleagues to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CAPUANO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today the House takes up important housing legislation 
to help communities across America achieve homeownership. The bill we 
are taking up today was recently passed by a voice vote from the 
Committee on Financial Services.
  H.R. 4363, Helping Hands For Homeownership Act of 2004, introduced by 
the gentleman from Wisconsin (Mr. Green) would make a technical 
correction for the Housing Opportunity Program Extension Act of 1996 to 
permit families who receive homes from groups such as Habitat for 
Humanity to fulfill the sweat equity requirements for receiving self-
help homeownership opportunity program funds or SHOP funds by helping 
to build other Habitat homes in the community in addition to their own.
  SHOP provides competitive grants for groups such as Habitat to help 
with land and infrastructure expenses. This change fulfills the 
original intent of Congress and corrects the U.S. Department of Housing 
and Urban Development interpretation which create a hurdle to home 
ownership, the exact opposite of HUD's mission.
  In 1996, Congress created the SHOP program to provide grants to non-
profit groups like Habitat for Humanity to help with land and 
infrastructure expenses. However, because of a new interpretation of 
SHOP by HUD, Habitat's involvement in the program was placed in 
jeopardy. Under the new interpretation, families are required to 
contribute sweat equity labor hours towards the construction of their 
own home. The legislation of the gentleman from Wisconsin (Mr. Green) 
changes this to allow families to accumulate their sweat equity hours 
by working on both their own homes and other Habitat homes.
  These grants are essential in helping groups like Habitat carry out 
their mission of building stronger communities. By correcting this 
problem Congress, will remove a major barrier to home ownership for low 
income families and give them a chance to help other families in their 
communities.
  Habitat for Humanity's headquarters located Georgia provides 
information, training and a variety of other support services to 
Habitat affiliates throughout the world. Habitat for Humanity 
International is a non-profit, ecumenical, Christian housing ministry. 
They seek to eliminate poverty housing and homelessness from around the 
world and to make decent shelter a matter of conscience and action. 
Habitat invites people of all backgrounds, races and religions to build 
houses together in partnership with families in need.
  Habitat has built more than 150,000 houses around the world providing 
more than 750,000 people in more than 3,000 communities with safe, 
decent, and affordable shelter. They were founded in 1976 by Millard 
Fuller, along with his wife Linda.
  Mr. Speaker, I ask that this bill be passed.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GREEN of Wisconsin. Mr. Speaker, I yield 3 minutes to the 
gentleman from Virginia (Mr. Cantor).
  (Mr. CANTOR asked and was given permission to revise and extend his 
remarks.)
  Mr. CANTOR. Mr. Speaker, I would like to, first of all, congratulate 
the gentleman from Wisconsin (Mr. Green) and the gentleman from 
Tennessee (Mr. Ford) for bringing forth this legislation, and for 
really identifying the need for a correction in this very impactful 
portion of our statute.
  As the gentleman had said, there was a recent interpretation of a 
statute which simply makes achieving the dream of home ownership that 
much more unattainable, and we are here today to try and make that 
correction so we can continue as the gentlemen from Massachusetts and 
Wisconsin have said, making the dream of home ownership that much more 
attainable.

                              {time}  1430

  Many of us have worked on houses which have been built under this 
program. The gentleman mentions Habitat for Humanity. I think all of us 
have done that.
  Recently, 2 weeks ago, I did participate in the construction of a 
house with Habitat and with the Richmond Association of Realtors; and 
in that project, I think the house was completed in 4 days. So we can 
see the problem: if we require an individual to exhort 200 hours, let 
us say, of his own sweat equity and try and squeeze that into 4 days 
during the construction period, it is just not going to work.
  So a looser or more flexible interpretation of this, which does not 
take away from the volunteer requirement of the requisite number of 
hours, I think accomplishes two things. One, it allows an individual to 
continue to benefit from the SHOP program; but it

[[Page H4590]]

also encourages volunteerism and makes that volunteerism more workable 
to be able to fit into that homeowner's work schedule. Many of the 
homeowners are single parents, obviously with the parental obligations 
that come with that role as well.
  So, Mr. Speaker, I am here to congratulate and endorse this 
legislation and urge its passage.
  Mr. OSBORNE. Mr. Speaker, I rise in support of H.R. 4363, the Helping 
Hands for Homeownership Act.
  I am pleased to be a cosponsor of this very important legislation.
  The legislation corrects an interpretation by the Department of 
Housing and Urban Development (HUD) in Fiscal Year 2004 which prevents 
families who received Self-Help Homeownership Opportunity Program funds 
from fulfilling their ``sweat equity'' requirement by working on other 
program homes.
  The legislation corrects this interpretation by HUD and clarifies 
Congress' intent to permit organizations like Habitat for Humanity to 
allow their homeowners to work on other homes to fulfill their sweat 
equity requirements.
  Each Habitat for Humanity Chapter has established its own requirement 
for sweat equity hours.
  The Habitat for Humanity chapter in Grand Island, Nebraska, requires 
their homeowners to put in 500 hours of sweat equity.
  Mr. Speaker, there have been several instances where the homeowners 
have put most of their sweat equity into other Habitat for Humanity 
Homes to fulfill the 500 hour requirement.
  I would like to give you two examples.
  One Habitat family's home was primarily built by a local high school 
as learning project.
  The family did put sweat equity hours into their home, but had to put 
the additional required hours into other Habitat homes to complete 
their sweat equity.
  Under this interpretation by HUD, the family would not have been 
allowed to live in this home since they would not have been able to 
complete the 500 hours of sweat equity that was required.
  Another example from the same chapter was of a family who had 
completed most of their sweat equity hours in other Habitat homes in 
the community before construction was to begin on their home.
  Before construction was to begin on their home, another Habitat home 
that had been completed earlier became available when a Habitat family 
moved out of town, allowing this family an opportunity to purchase the 
home and move in.
  Had this interpretation by HUD been in place, the family would not 
have been allowed to move into this home because they had not put 500 
hours of sweat equity into this Habitat home.
  Mr. Speaker, I would like to thank Mr. Green for introducing this 
important legislation.
  I would also like to thank Chairman Oxley and Ranking Member Frank 
for including an amendment to this legislation that will change the 
name of the USDA Section 502 Single Family Housing Loan Guarantee 
Program to the Doug Bereuter Section 502 Single Family Housing Loan 
Guarantee Program.
  My colleague, Mr. Bereuter, was the legislative author of this very 
important program which was enacted on November 28, 1990.
  Since 1990, the program has assisted low- to moderate-income 
borrowers in obtaining over 316,000 single-family home loans in rural 
and non-metropolitan communities.
  Mr. Bereuter will be retiring from the House at the end of August, 
2004, and this is an appropriate way to thank Mr. Bereuter for all of 
his hard work on this essential program that has helped thousands of 
families become homeowners in rural and non-metropolitan areas.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R. 
4363: Helping Hands for Homeownership Act of 2004, which amends the 
housing opportunity program extension act of 1996 to permit a homeowner 
under the sweat equity model program to perform required construction 
time on more than one dwelling.
  The ``Helping Hands for Homeownership Act of 2004'' (H.R. 4363) will 
permit prospective homebuyers to qualify for ``sweat equity'' credit 
when they work on multiple houses rather than exclusively on their own 
home. This important change will enable Americans to gain valuable 
labor skills, foster stronger communities, and make more Americans 
homeowners by making home ownership more accessible.
  Sweat equity programs allows families and individuals to purchase a 
home in return for their labor. These programs significantly reduce 
construction and rehabilitation costs, as well as financial 
contributions.
  As the Housing Opportunity Program Extension Act currently stands, 
individuals participating in sweat equity programs are permitted to 
work on only one dwelling to perform required construction time. With 
this act, we will extend the opportunity for individuals to work on 
multiple dwellings, which will provide Americans with greater access to 
home ownership.
  In a country where a home valued at more than $170,000.00 is 
considered affordable, we must take measures to make home ownership 
more realistic for the average American. What better way to build 
community than to provide financial incentives to perform required 
construction time on more than one dwelling?
  It is our responsibility to make sure that our children are not 
exposed to increased risk of diseases like asthma because of the lack 
of affordable, decent housing. We have the opportunity to extend the 
opportunity for success, community and home ownership by enabling those 
participating in sweat equity programs to work on more than one 
dwelling.
  Mr. Speaker, I would like to urge my colleagues to support a H.R. 
4363, a bill that actually empowers individuals to become home owners, 
builds communities, and provides citizens with valuable skill sets. 
Affordable and decent housing should be a right in this country, and 
providing citizens with more accessibility to home ownership is our 
duty.
  Mr. CAPUANO. Mr. Speaker, I yield back the balance of my time.
  Mr. GREEN of Wisconsin. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Terry). The question is on the motion 
offered by the gentleman from Wisconsin (Mr. Green) that the House 
suspend the rules and pass the bill, H.R. 4363, as amended.
  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. GREEN of Wisconsin. Mr. 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.

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