[Congressional Record Volume 152, Number 44 (Friday, April 7, 2006)]
[Extensions of Remarks]
[Page E562]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           INTRODUCTION OF THE WORKFORCE HOUSING ACT OF 2006

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                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                        Thursday, April 6, 2006

  Mr. HASTINGS of Florida. Mr. Speaker, I rise today to introduce the 
Workforce Housing Act of 2006.
  Finding a moderately priced home used to be a concern solely for 
those with low incomes. Today, as the median price for a home in some 
parts of the United States is over $400,000, it has become an issue for 
all workers. This is especially true when only about 18 percent of the 
working population has enough income to purchase such a home. Other 
workers simply do not have the down payment needed to buy a home.
  When large numbers of Americans are priced out of the housing market, 
it affects more than just a working family's ability to purchase a 
home. Communities that fail to provide affordable housing leave 
employers straining to find employees. The price to attract prospective 
workers ultimately makes essential jobs and services more difficult and 
more expensive for everyone.
  Workers who cannot find affordable housing in or around places of 
employment are pressured to move further away. They endure longer 
commutes, use more gasoline, increase the levels of greenhouse gases, 
and spend more of their hard earned money on transportation. The 
financial impact is especially hard on low-income families who can 
spend 40 percent of their incomes on transportation alone.
  In other cases, people are forced to seek less expensive homes 
elsewhere. Many of the housing alternatives they have to choose from 
are often built from older materials, emit more pollution, and require 
up to 50 percent more energy. Faulty ventilation and energy hungry 
appliances also increase the costs to heat, cool, and power a home. 
Rising energy costs required Americans to spend 24 percent more for 
energy in 2005 than in the previous year. Such expenditures quickly 
deplete any savings that working families hope to use when trying to 
buy a home.
  Left unchecked, the shortage of affordable housing, combined with 
higher energy prices and increased transportation demands paralyzes 
employment, holds back economic growth, and leads to inflation. The 
Workforce Housing Act successfully addresses the challenges faced by 
America's current housing crisis. This bill provides badly needed 
assistance to help individuals and families purchase their first home 
and to encourage developers to build affordable workforce housing.
  For those looking to purchase a home, the Workforce Housing Act 
creates two forms of assistance that can be used for the down payment, 
service charges, appraisal, and other acquisition costs to purchase a 
single-family home or condominium.
  First, the bill creates a tax-exempt mortgage down payment account to 
be used for purchasing a home. This account works much like an 
Individual Savings Account, but can be used regardless of age and 
allows contributions of up to $10,000. Taxpayers that earn incomes up 
to 125 percent of the area median income will receive a tax credit 
equal to the amount of their annual contributions. The maximum credit 
is $2,500 for either single or married-filing-joint taxpayers. Those 
making below 80 percent of AMI can also receive an additional $500 
credit to start the account.
  Once the home is purchased, it is also possible to use any remaining 
funds for the future repair or replacement of items such as roofs, 
water heaters, or major appliances. This provision helps to ensure 
families can pay for these types of expenses without jeopardizing their 
mortgage payments.
  Those who purchase homes using assistance from the Workforce Housing 
Act must use the home as their primary residence. To preserve the 
supply of homes created under this act, ownership of these homes can 
only be transferred to those with incomes that meet the stated 
affordability requirements.
  Second, the Workforce Housing Act provides potential homebuyers with 
finance counseling and up to $15,000 in down payment assistance. Local 
communities have the discretion under the bill to give teachers, first 
responders, certain service workers, the elderly, and low-income 
families priority for this part of the program.
  For builders, incentives are available for the construction of 
affordable workforce homes. Developers are allowed base incentives in 
the form of expedited building permits and density allowances that are 
above current limits when at least 25 percent of the units are priced 
affordably. Affordability is based on homes with a sale price that does 
not exceed the median purchase price for a specific area.
  Additional incentives are provided in the bill for affordable 
workforce homes that are built near mass transit lines, with energy 
efficient technologies and appliances, and using active and/or passive 
solar technology. These incentives can be used individually or in any 
combination not to exceed 15 percent of the base incentive value. Local 
jurisdictions will determine how to utilize these incentives based on 
the needs of their communities.
  The Workforce Housing Act is necessary to ensure there is an adequate 
supply of affordable housing for the people who need it most. It also 
provides reasonable alternatives that reduce some of the negative 
effects of increased energy demands. These are factors that threaten 
our economy, our ability to reduce our dependence on fossil fuels, and 
the viability of our cities and towns.
  I ask my colleagues to support this legislation and urge the House 
leadership to bring it swiftly to the House floor for consideration.

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