[Congressional Record Volume 150, Number 90 (Friday, June 25, 2004)]
[Extensions of Remarks]
[Page E1257]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   RENEWING THE DREAM TAX CREDIT ACT

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                        HON. BENJAMIN L. CARDIN

                              of maryland

                    in the house of representatives

                        Thursday, June 24, 2004

  Mr. CARDIN. Mr. Speaker, as we mark June as National Homeownership 
Month, it is imperative that we look for ways to help more of our 
citizens to achieve the American Dream of homeownership.
  Home ownership is the cornerstone of the American Dream. For millions 
of American families, this dream is still just out of reach. This is 
especially true for families living in economically distressed 
neighborhoods, where the costs of renovating existing buildings or that 
of new construction frequently exceed the market value of homes in the 
community, making it impossible to obtain mortgage financing. This 
leads to further deterioration in declining neighborhoods, and forces 
families to look elsewhere for the opportunity to own their own home.
  My friend Rob Portman and I introduced H.R. 839, the Renewing the 
Dream Tax Credit Act, which would provide a tax credit for single-
family home ownership. Modeled after the successful low-income rental 
housing tax credit, this proposal would allow states to allocate 
federal tax credits to developers and investors who provide single-
family homes for purchase by qualified buyers in qualified areas. The 
program will also help stabilize troubled urban neighborhoods, while 
spurring new construction and rehabilitation in rural areas targeted 
for economic development.
  The bill would allow states to provide developers or investors tax 
credits up to 50% of the combined costs of acquiring, building, and 
renovating properties for sale to qualified buyers. The tax credits 
would be carefully targeted to areas in need of economic growth 
incentives, and to families who need help buying a home. States will 
have flexibility in allocating the tax credits. The available tax 
credits under the program are capped at $1.75 per capita, with no state 
to receive less than $2 million in credits.
  This proposal has the support of a broad coalition of groups with 
substantial expertise in the housing industry, including the National 
Association of Home Builders, the National Conference of State Housing 
Agencies, the National Association of Realtors, Fannie Mae and Freddie 
Mac, and a number of non-profit organizations, including the Enterprise 
Foundation, the Local Initiative Support Corporation and Habitat for 
Humanity International.
  H.R. 839 could open the door to affordable homeownership for as many 
as 50,000 families annually. It would not only provide affordable 
housing, but is expected to create up to 120,000 jobs annually. H.R. 
839 enjoys broad bipartisan support, with 288 co-sponsors in the U.S. 
House of Representatives. House passage of H.R. 839 would be a fitting 
tribute to National Homeownership Month, bringing the American Dream 
home to tens of thousands of working American families.

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