[Congressional Record Volume 151, Number 48 (Wednesday, April 20, 2005)]
[Senate]
[Page S4031]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM (for himself, Mr. Kerry, Mr. Smith, Ms. Stabenow, 
        Mr. Allard, and Mr. Sarbanes):
  S. 859. A bill to amend the Internal Revenue Code of 1986 to allow an 
income tax credit for the provision of homeownership and community 
development, and for other purposes; to the Committee on Finance.
  Mr. SANTORUM. Mr. President, I rise today to introduce the Community 
Development Homeownership Tax Credit Act. I am very pleased to be 
joined in this effort by Senators Kerry, Smith, Stabenow, Allard, and 
Sarbanes, who are original cosponsors of this legislation.
  Homeownership is a key component of the American Dream. Many people 
around this country dream of and plan for the day they can buy a home 
of their own in which to raise their children, to settle down in a 
community, and to build equity and wealth. They see the importance of 
homeownership and the stability it can bring to families and 
neighborhoods. It is often homeownership that financially anchors 
American families and civically anchors our communities. But I believe 
our focus on homeownership also returns our attention to the basic 
ideals of the American Dream. Ensuring access to homeownership is among 
the most significant ways we can empower our citizens to achieve the 
happy, productive and stable lifestyle everyone desires.
  Having a house of one's own that provides security and comfort to 
one's family and that gives families an active, vested interest in the 
quality of life their community provides is central to our collective 
ideas about freedom and self-determination. As a nation, we know that 
homeownership helps the emotional and intellectual growth and 
development of children. We know that homeowners show greater interest 
and more frequent participation in civic organizations and neighborhood 
issues. We know that when people own homes, they are more likely to 
accumulate wealth and assets and to prepare themselves financially for 
such things as their children's education and retirement.
  In America today, homeownership is at a record high. Unfortunately, 
there remains a significant homeownership gap between minority and non-
minority populations, leaving homeownership an elusive financial 
prospect for many. According to the Census Bureau, in 2004, the 
homeownership rate for non-Hispanic whites reached 76 percent, compared 
to 49.1 percent for African-Americans and 48.1 percent for Hispanics or 
Latinos.
  The bill I introduce today enjoys strong bipartisan support in the 
Senate and will encourage increased homeownership rates, more stable 
neighborhoods and strong communities. This legislation would give 
developers and investors an incentive to participate in the 
rehabilitation and construction of homes for low- and moderate-income 
buyers. It will also spur economic development in low- and moderate-
income communities across our country and provide an important stimulus 
for the development of our nation's economy.
  This proposal is modeled after the very successful low-income rental 
tax credit. It will allow states to allocate tax credits to developers 
and investors to construct or substantially rehabilitate homes in 
economically disadvantaged communities, including rural areas, for sale 
to low- or moderate-income buyers. These tax credits will help bridge 
the gap between the cost of developing affordable housing and the price 
at which these homes can be sold to eligible buyers in low-income 
neighborhoods where housing is scarce. It provides investors with a tax 
credit of up to 50 percent of the cost of home construction or 
rehabilitation. It is estimated that this legislation will encourage 
the construction and substantial rehabilitation of up to 500,000 homes 
for low- and moderate-income families in economically distressed areas 
over the next ten years.
  President Bush has long supported the creation of a homeownership tax 
credit as have the majority of both the House and Senate in the last 
Congress. This proposal also has the backing of a large and broad 
coalition of housing-related groups, including the National Association 
of Home Builders, the National Council of State Housing Agencies, and 
the National Association of Realtors. In addition, this initiative has 
the backing of major non-profit groups, including Habitat for Humanity, 
as well as the Local Initiatives Support Corporation and the Enterprise 
Foundation.
  This important legislation addresses a key issue facing many 
Americans today, housing affordability. It also addresses the community 
development needs of many neighborhoods. It continues to have strong 
bipartisan support, and I am hopeful that it will be enacted this year. 
I ask my colleagues to join me in supporting homeownership by 
cosponsoring this legislation.
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