[Congressional Record Volume 150, Number 90 (Friday, June 25, 2004)]
[Extensions of Remarks]
[Page E1277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              HELPING HANDS FOR HOMEOWNERSHIP ACT OF 2004

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                               speech of

                         HON. MICHAEL G. OXLEY

                                of ohio

                    in the house of representatives

                         Monday, June 21, 2004

  Mr. OXLEY. Mr. Speaker, I rise today to express my support for H.R. 
4363, the Helping Hands for Homeownership Act of 2004. This bill will 
be considered under the suspension of the rules. This legislation 
passed the House Financial Services Committee, by a unanimous 
bipartisan voice vote on June 3, 2004.
  This legislation was introduced by the distinguished gentleman from 
Wisconsin (Mr. Green). This bill will simply make a technical 
correction to the ``Housing Opportunity Program Extension Act of 1996'' 
to permit families who receive homes from groups such as Habitat for 
Humanity (Habitat) to fulfill the ``sweat equity'' requirement for 
receiving Self-Help Homeownership Opportunity Program (SHOP) funds by 
helping to build other Habitat homes in the community, in addition to 
their own.
  In 1996, Congress created the SHOP, which provides competitive grants 
for groups such as Habitat to help with land and infrastructure 
expenses. In order to receive SHOP funds, the recipients of a home from 
groups such as Habitat must contribute a certain amount of physical 
labor to the home-building process, also known as ``sweat equity.'' In 
FY 2004, the Department of Housing and Urban Development (HUD) for the 
first time interpreted the law to preclude the families who receive 
these homes from fulfilling their ``sweat equity'' requirements by 
working on program homes other than their own.
  This new interpretation could cause problems for Habitat affiliates 
all over the country. Habitat allows its home recipients to obtain its 
``sweat equity'' requirement by working on Habitat homes for others in 
the community, as well as their own home. H.R. 4363 makes the needed 
technical change to make sure that Habitat and similar programs can 
continue to promote homeownership.
  Furthermore, H.R. 4363 also contains a provision which names the U.S. 
Department of Agriculture (USDA) Section 502 single-family loan 
guarantee program after my friend and colleague, the distinguished 
gentleman from Nebraska (Mr. Bereuter). This program, like Habitat, 
promotes the goal of homeownership among those who might otherwise find 
it out of reach. Those are precisely the people that Mr. Bereuter has 
spent his career serving, and this provision represents a small thank-
you for those efforts.
  As many of you know, the distinguished gentleman from Nebraska (Mr. 
Bereuter) is leaving the House at the end of August to become the 
President of the Asia Foundation. He was elected to the House in 1978 
to represent the constituents of the First District of Nebraska. Mr. 
Bereuter has served on the House Financial Services Committee and its 
predecessor, the House Banking Committee, since 1981. During his 
service on these committees, he has authored a number of significant 
bipartisan bills which were enacted into law.
  One of his most successful legislative accomplishments is the USDA 
Section 502 single-family loan guarantee program. This initiative was 
enacted into law as part of the Cranston-Gonzalez National Affordable 
Housing Act in 1990 and authorizes the Department of Agriculture to 
guarantee a single-family loan made by a commercial lender to moderate-
income families in small towns and rural areas where conventional 
mortgage financing may not always be available.
  Since the program's creation in 1991, 316,625 single-family loans 
have been guaranteed by the USDA. The State of Ohio has been a major 
beneficiary with 629 single-family loans valued at over $58 million 
having been guaranteed in Ohio under this program so far this year. 
This program, like Mr. Bereuter's legislative career, has been a huge 
success.
  In conclusion, I want to urge your support for H.R. 4363. This 
bipartisan bill contains important provisions to promote homeownership.

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