[Congressional Record Volume 153, Number 103 (Monday, June 25, 2007)]
[House]
[Pages H7027-H7030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                RECOGNIZING NATIONAL HOMEOWNERSHIP MONTH

  Mr. DONNELLY. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 477) recognizing National Homeownership Month 
and the importance of homeownership in the United States.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 477

       Whereas the President of the United States has issued a 
     proclamation designating the month of June 2007 as National 
     Homeownership Month;
       Whereas the national homeownership rate in the United 
     States has reached a record high of almost 70 percent and 
     more than half of all minority families are homeowners;
       Whereas the people of the United States are one of the 
     best-housed populations in the world;
       Whereas owning a home is a fundamental part of the American 
     dream and is the largest personal investment many families 
     will ever make;
       Whereas homeownership provides economic security for 
     homeowners by aiding them in building wealth over time and 
     strengthens communities through a greater stake among 
     homeowners in local schools, civic organizations, and 
     churches;
       Whereas creating affordable homeownership opportunities 
     requires the commitment and cooperation of the private, 
     public, and nonprofit sectors, including the Federal 
     Government and State and local governments; and
       Whereas the current laws of the United States, such as the 
     American Dream Downpayment Act, encourage homeownership and 
     should continue to do so in the future: Now, therefore, be it
       Resolved,  That the House of Representatives--
       (1) fully supports the goals and ideals of National 
     Homeownership Month; and
       (2) recognizes the importance of homeownership in building 
     strong communities and families.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Indiana (Mr. Donnelly) and the gentleman from Illinois (Mr. Roskam) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Indiana.


                             General Leave

  Mr. DONNELLY. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on the legislation, and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Indiana?
  There was no objection.
  Mr. DONNELLY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H. Res. 477 introduced by 
Congressman Gary G. Miller of California. This resolution recognizes 
the importance of National Homeownership Month, which the President 
designated as June of this year.
  Homeownership is one of the fundamental building blocks of our 
society. And it plays a fundamental role in achieving the American 
Dream. It helps to provide families with economic security and helps to 
build strong communities.
  The national homeownership rate in the United States has reached a 
record high of almost 70 percent. This is the result of the hard work 
of both public and private sector organizations, nonprofit groups, and 
Federal, State and local government working together for a common 
cause: to ensure that families have a stable living environment and are 
in a supportive community.
  Homeownership is a crucial indicator of our economic health. I 
believe that ensuring affordable homeownership for hardworking 
Americans is one of the most important tasks we have here in Congress. 
We must work together to encourage more opportunities for homeownership 
so that buyers are able to choose a housing option that meets their 
needs.

[[Page H7028]]

  Owning a home helps families build financial stability, and it puts 
them on sound financial footing so they are able to invest in things 
like college and saving for retirement. This not only affects every 
American family; it allows our economy to prosper. It is important to 
ensure that while we are promoting homeownership, and that we are 
preparing homeowners for the responsibility of maintaining and paying 
off their home, that they understand this process as well.
  The rise in predatory lending and in subprime loans has contributed 
significantly to the high rate of foreclosures in States like Indiana, 
my home State. Congress must work to ensure a level playing field for 
home buyers to purchase a home with a mortgage that they can work with 
and be able to pay. I urge Members to vote in favor of this resolution.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ROSKAM. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H. Res. 477 and am pleased to 
join with my friend from Indiana and am delighted that we are taking 
time on the floor today to commemorate homeownership in America.
  Recognizing the many benefits of owning a home, the President 
designated June as National Homeownership Month as he has done for the 
past 6 years. To complement this designation, H. Res. 477 was 
introduced by the gentleman from California (Gary G. Miller) to 
recognize that designation and the importance of homeownership in the 
United States.
  Owning a home is a fundamental part of the American Dream, with 
economic security and hard work being rewarded. Homeownership is much 
more than knowing that one has a roof and four walls to shelter one's 
family. It is the symbol of the American Dream, and it forms the 
bedrock of our communities.
  Many of my colleagues celebrate the designation of this month as 
National Homeownership Month because in America every citizen, 
regardless of race, creed, color, or place of birth has the opportunity 
to own a home of their own.
  Today, the national homeownership rate in the United States has 
reached a record high, about 70 percent; and more than half of all 
minority families are homeowners. While many gains have been made, 
minority homeownership rates still lag. With minority households 
expected to account for two-thirds of household growth over the coming 
decade, improving the ability of such households to make a transition 
to homeownership will be an important test of our Nation's capacity to 
create economic opportunities for minorities and immigrants and to 
build strong, stable communities.
  Buying a home is the largest personal investment most families will 
ever make. For the vast majority of families, the purchase of a home 
represents the path to prosperity. A home is a tangible asset that 
builds equity, good credit, borrowing power, and overall wealth. Not 
only does homeownership provide economic security for building wealth 
over time; it also strengthens and builds communities. Homeownership 
creates community stakeholders and inspires civic responsibility. 
People who own a home tend to be more active in charities, churches, 
neighborhood activities and more likely to vote and get involved with 
their community's growth, safety and development.
  Further, families owning a home offer children a stable living 
environment, influencing their personal development in many positive, 
measurable ways both at home and in school.
  Without homeowners, neighborhoods, schools and local businesses 
suffer. Homeownership helps fuel the economy. This happens mostly 
through people who spend money for home improvements.
  I hope Congress will continue to explore new ways to put people on 
the path to homeownership so more Americans can realize its benefits.
  In closing, it is apparent that the Federal Government, consumers and 
the housing industry are linked by our mutual goal of creating housing 
opportunities for more Americans. And although significant strides have 
been made, we still have much more work to do to achieve together for 
the American people, and our best hope of being successful is to work 
in close concert with each other.
  As Congress considers future action to make homeownership more secure 
and available, we need to take care not to hamper the market's ability 
to provide opportunities for homeownership, and that way we can 
continue to open our communities and neighborhoods to new opportunities 
for growth and prosperity.
  The resolution before us, H. Res. 477, recognizes the importance of 
homeownership in America and dedicates the House of Representatives to 
fostering an atmosphere conducive to community development and 
increased homeownership opportunities. Congress has a real opportunity 
here to forge a better America, an America where homeownership and 
security abounds. I know we all look forward to continue to work to 
further the American Dream, and I hope my colleagues will join with me 
and my colleague, Mr. Donnelly, and join in supporting this important 
resolution that does just that.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DONNELLY. Mr. Speaker, I yield 5 minutes to the gentleman from 
Texas (Mr. Hinojosa).
  Mr. HINOJOSA. Mr. Speaker, I wish to thank the gentleman from Indiana 
(Mr. Donnelly) for yielding time to me. I also want to commend him for 
his leadership.
  I rise in strong support of H. Res. 477, a resolution recognizing the 
goals and ideals of National Homeownership Month, which falls in June 
of each year. I also want to commend my colleague on the other side of 
the aisle, the gentleman from California (Mr. Gary G. Miller), for 
introducing the resolution and for working with me on its language.
  Owning a home is a fundamental part of the American Dream and is the 
largest personal investment many families will ever make. Homeownership 
provides economic security by increasing the stake residents have in 
their communities, including local schools, civic organizations, 
community-based organizations, and churches.
  Improving homeownership opportunities requires the commitment and 
cooperation of the private and public sectors, including the Federal 
Government and State and local governments. Our current laws encourage 
homeownership to a significant degree, but need to be updated and 
augmented so that they will continue to promote homeownership in the 
future.
  We need to do everything in our power to ensure that potential home 
buyers and current homeowners do not become victims of predatory 
lenders, as has been the case in recent times.
  To improve the affordability, availability and quality of housing in 
America, I co-founded and I am currently the chairman of the 
Congressional Rural Housing Caucus. The caucus continues to increase in 
number as more and more Members of Congress realize not only the 
importance of homeownership in urban dwellings, but those in rural 
America.
  To increase homeownership, I introduced H.R. 1980, the Housing 
Assistance Counsel Authorization Act. It authorizes $10 million for 
housing assistance counsel in fiscal year 2008 and $15 million in 
fiscal year 2009-2014.
  HAC, a nonprofit corporation, is the only national housing assistance 
group that specializes in rural areas and small towns. The House 
Committee on Financial Services has also held hearings on the bill and 
reported it favorably to the floor of the House of Representatives. A 
companion measure has been introduced in the Senate.
  Mr. Speaker, I also introduced H.R. 1982, the Rural Housing and 
Economic Development Improvement Act. The bill authorizes $30 million 
for the U.S. Department of Housing and Urban Development's RHED program 
in fiscal year 2008 and $40 million for fiscal years 2009-2013. This 
bill has also been reported favorably on the floor of the House of 
Representatives.
  I want to take this opportunity to thank Financial Services Chairman 
Barney Frank, the ranking member; Spencer Bachus; Chairwoman Maxine 
Waters; and the ranking member, Judy Biggert; and all their staffs for 
guiding the HAC and RHED legislation through our committee.
  I have also authored a letter to the Housing Appropriations Committee 
requesting the funding for several programs that the administration's 
budget

[[Page H7029]]

would either eliminate or reduce their funding. I include for today's 
Congressional Record a copy of that letter.
  Again, June is National Homeownership Month. I strongly support the 
goals and ideals of National Homeownership Month and recognize the 
importance of homeownership in building strong communities and 
families.

                                Congress of the United States,

                                   Washington, DC, March 16, 2007.
     Hon. Rosa DeLauro,
     Chairwoman, Subcommittee on Agriculture, Rural Development, 
         Food and Drug Administration and Related Agencies 
         Appropriations, Washington, DC.
       Dear Chairwoman DeLauro: There is a housing crisis in rural 
     America. We are requesting that you restore funding for the 
     following USDA rural housing programs in fiscal year 2008: 
     Section 502 direct homeownership loans, $1.25 billion; 
     Section 515 rental housing loans, $100 million; Section 523 
     self-help housing, $60 million; and Section 514/516 farm 
     labor housing, $50 million each.
       The Administration's Fiscal 2008 budget takes square aim at 
     these programs. The budget cuts spending for rural housing by 
     some 71 percent and eliminates over $1.3 billion in rural 
     housing lending assistance targeted to low income families. 
     If the Administration's budget is approved, it will be the 
     first time in 40 years that the Agriculture Department has 
     not offered direct lending assistance to help low income 
     rural families improve their housing conditions.
       According to the Economic Research Service of the US 
     Department of Agriculture some four million rural families 
     live in ``housing poverty'', a multidimensional indicator 
     that combines measures of economic need, housing quality and 
     neighborhood quality. What is more, the 2000 Census revealed 
     that 5.5 million people, one-quarter of the non-metro 
     population, face cost overburden and 1.6 million non-metro 
     housing units are either moderately or severely substandard.
       As you know, the President's budget calls for the 
     elimination of the Section 502 Direct Loan Program, which is 
     one of the nation's most responsible loan programs for rural 
     communities. Under the present Section 502 program, borrowers 
     may obtain loans for, the purchase or repair of new or 
     existing single-family housing in rural areas. Borrowers with 
     income of 80 percent or less of the area median may be 
     eligible for the direct loans, and may receive interest 
     credit to reduce the interest rate to as low as 1 percent. 
     The loans are repayable over a 33-year period. In a given 
     fiscal year, at least 40 percent of the units financed under 
     this section must be made available only to very low-
     income individuals or families. The Section 502 direct 
     loan program is an extremely efficient program which 
     results in a total cost to the Federal government of only 
     $10,000 per loan. There currently is a backlog of more 
     than $3.4 billion in loan applications for this program. 
     We encourage you to provide $1.25 billion in funding for 
     Section 502 in fiscal year 2008.
       The President's budget also proposes to eliminate funding 
     for the Rural Housing Service Section 515 program. The 
     Section 515 program plays a critical role in facilitating 
     affordable rental housing in rural areas, by providing funds 
     both for new construction and for the repair and preservation 
     of RHS Section 515 affordable rental housing units. The 
     Section 515 program is the only authorized Federal program 
     that provides direct loans for multi-family housing in rural 
     areas. Units built under the 515 program provide affordable 
     rental housing for persons of low, very low, and moderate 
     incomes living in rural areas, many of whom are elderly and 
     disabled. The 515 program also provides funding for the 
     repair and rehabilitation of existing 515 affordable rental 
     housing units, in order to encourage owners to remain in the 
     program and serve lower income families in rural areas. We 
     encourage you to provide $100 million in funding for Section 
     515 in fiscal year 2008.
       The President's budget proposes $9.75 million in funding 
     for Section 523 Self Help Housing which is a reduction of 
     over 70%. Self-Help Housing makes homes affordable by 
     enabling future homeowners to build their homes themselves. 
     Section 523 Self Help Technical Assistance Grants provided to 
     qualified nonprofit and local government organizations to 
     provide technical assistance to low and very low-income 
     families who are building homes in rural areas in conjunction 
     with the Section 502 Mutual Self-Help Housing Loan Program. 
     The grant funds are used to assist eligible families in 
     applying for Section 502 loans, provide pre-purchase 
     homebuyer education, and supervise construction of the 
     housing by the family.
       Due to the tremendous success in serving minority 
     households, doubling self help housing is one of the 
     element's of USDA's `Five Star Commitment to Increasing 
     Minority Homeownership'. But despite the proven success of 
     the self-help model and the momentum that it has built over 
     recent years, budgetary restrictions have made it difficult 
     for RHS to keep pace with demand for Section 523. In fiscal 
     year 2007, a total of $3 million was made available for self-
     help housing grants. However, the total necessary for 
     extending grants for performing programs that expire in 2008 
     is $60 million. We encourage you to provide $60 million in 
     funding for Section 523 in fiscal year 2008.
       The President's budget reduces farm labor housing funding 
     in Section 514 Farm Labor Housing Loans and in Section 516 
     Farm Labor Housing Grants by two thirds. As you know, there 
     is a tremendous need for assistance for farm worker housing. 
     Migrant and seasonal farm workers are some of the nation's 
     most poorly housed populations. Farm workers and their 
     families are some of the poorest yet least assisted people in 
     the nation. Approximately 61 percent of farm workers earn 
     incomes below the poverty level. 60 percent of their 
     households are the ones who are also more susceptible to 
     live below the poverty threshold which is six times the 
     national rate. However, less than 20 percent of farm 
     worker households receive public assistance in any form. 
     We encourage you to provide $50 million in funding for 
     Section 514 and 516 in fiscal year 2008.
       For these reasons, we urge you to reject the 
     Administration's Rural Development budget. The Administration 
     has already made substantial cuts in federal rural 
     development spending. Over the past 6 years, federal spending 
     on rural housing and community development programs have been 
     reduced by more than 20 percent. We strongly urge you to 
     reject the reductions proposed in the Fiscal 2008 budget and 
     provide adequate funding for federal rural housing and 
     community development programs.
           Sincerely,
         Ruben Hinojosa, Barney Frank, Rick Renzi, Paul W. Hodes, 
           Charles A. Wilson, Ron Paul, Emanuel Cleaver, Bennie G. 
           Thompson, Nancy Boyda, Michael E. Capuano, Maxine 
           Waters, Tim Holden, Corrine Brown, Carolyn B. Maloney, 
           Luis V. Gutierrez, Peter DeFazio, Darlene Hooley, Earl 
           Blumenauer, Julia Carson, Geoff Davis, Lois Capps, Tom 
           Allen, Mazie K. Hirono, Steve Kagen, John T. Salazar, 
           Neil Abercrombie, Michael H. Michaud, Phil Hare, Rick 
           Larsen, Doris O. Matsui, Dan Boren, Lincoln Davis.

                              {time}  1545

  Mr. ROSKAM. Mr. Speaker, I simply rise and urge the passage of House 
Resolution 477.
  I have no other speakers seeking recognition and, with that, yield 
back the balance of my time.
  Mr. DONNELLY. Mr. Speaker, I have no further requests. I want to 
thank my good friend, my colleague from Illinois, for his assistance in 
this. It is a terrific resolution. We look forward to its success.
  Mr. GARY G. MILLER of California. Mr. Speaker, I am pleased to rise 
in strong support of this resolution, which expresses the commitment of 
Congress to fostering increased homeownership opportunities in this 
country.
  Earlier this month, President Bush designated June as National 
Homeownership Month, as he has done for the past 6 years.
  I introduced H. Res. 477 to complement this designation and to 
elevate the discussion of housing opportunities in this Nation. This 
resolution conveys the support of the House for the goals and ideals of 
National Homeownership Month and reiterates the importance of 
homeownership in the United States.
  I would like to thank the leadership on both sides of the aisle for 
bringing this important resolution to the floor today.


                 Importance of Homeownership in America

  For millions of Americans in communities all across this country, 
owning a home is a basic part of realizing the American dream.
  Aside from helping Americans achieve their dreams, homeownership also 
helps to build neighborhoods and strengthen communities. As millions of 
families have demonstrated, increased homeownership helps to build 
better communities, and better communities help to build a better 
America. Families who own homes have a vital stake in their 
communities, a stronger interest in the safekeeping of their 
neighborhoods, and a deeper commitment to the quality of their schools 
and public services.
  Today, America's housing markets are the envy of the world. We enjoy 
the lowest interest rates and the highest homeownership rates of any 
developed nation. With the national homeownership rate reaching 70 
percent, we have had success in promoting housing opportunities. 
However, we must still do more. We must work to help extend housing 
opportunities to all Americans who do not currently enjoy the benefits 
of homeownership.


                            Role of Congress

  Our job in Congress, as responsible policymakers, must be to ensure 
that government helps, rather than impedes, homeownership in America. 
When I came to Congress, I made it my top priority to highlight federal 
policies that have hindered the availability of housing in this country 
and to find ways for government to positively impact homeownership in 
America. While we have done much to help Americans become homeowners, 
we must do more. We must remove the hurdles and needless regulation 
that keep homeownership out of the reach of some families in America.

  And oftentimes in government, we pass policies and laws and 
regulations that sound really good, and when they are implemented they 
do the exact opposite of what we intend them

[[Page H7030]]

to do. Unfortunately, this trend is very apparent in our housing 
policies.


                         Congressional Policies

  So far in this Congress, I am pleased that we have continued our 
important work of promoting responsible homeownership policies for our 
country.
  Last month, the House passed the Federal Housing Finance Reform Act 
to reform Government Sponsored Enterprises (GSEs) that have been at the 
forefront of creating affordable housing opportunities for American 
families. A new, credible, independent regulator with appropriate 
supervisory powers would reaffirm that the GSEs are adequately governed 
and will continue to provide reasonably-priced funds for housing 
finance. This bill ensures adequate regulation of GSEs while not 
adversely affecting the ability of the GSEs to fulfill their housing 
finance mission.
  Another important needed reform to improve homeownership 
opportunities across our country is to the Federal Housing 
Administration (FHA). As the private sector mortgage market has become 
more efficient, the FHA program's inflexible rules and requirements 
have left it virtually irrelevant as a financing option. Not only can 
FHA reform provide a viable alternative for families seeking to 
purchase a home, but it can also help those facing uncertainty about 
being able to keep their current home.
  To make the FHA program a viable mortgage option, we must ensure that 
the program's products are available across the country and that they 
meet the needs of borrowers. This includes not only eliminating the 
geographic barriers to utilization of the program in high cost areas, 
but also facilitating the purchase of entry-level homes, including 
condos and manufactured housing. The Committee on Financial Services 
passed an important FHA reform bill in May and I am optimistic we may 
consider it on the floor soon.


                               Conclusion

  With June designated as National Homeownership Month, there is no 
better time to discuss these issues. Now more than ever Congress must 
continue to cultivate an environment in which more Americans may turn 
the dream of homeownership into a reality.
  I am very pleased today that the President has made it a priority to 
promote affordable housing and homeownership, even while our Nation 
faces many other challenges at home and abroad. Along with Secretary 
Jackson and his team at HUD, the President has taken a leading role in 
finding new and innovative ways to expand homeownership in all areas of 
this country.
  Fortunately, here in Congress, we have leaders from both sides of the 
aisle who are deeply committed to increasing housing opportunities for 
more Americans. I want to commend Chairman Frank, Ranking Member 
Bachus, Housing Subcommittee Chairwoman Waters, and Ranking Member 
Biggert for their work in pursuing policies to address affordable 
housing in the United States.
  I look forward to continuing this relationship in the l10th Congress 
so that we will have success in the months and years to come in 
increasing homeownership nationwide.
  In closing, it is clear that increased homeownership fosters stronger 
communities and a better America. National Homeownership Month is a 
reminder of the significance of housing issues in America. I urge all 
of my colleagues to support this resolution and recognize the 
importance of homeownership in the United States.
  Ms. LEE. Mr. Speaker, I rise today in strong support of H. Res. 477, 
recognizing the goals and ideals of National Home Ownership Month. I'd 
like to thank my colleague from California Congressman Gary Miller for 
introducing this resolution.
  Mr. Speaker, home ownership has long been acknowledged as a vehicle 
to build personal wealth, a source of pride and motivation, provided a 
sense of security to its owners, helped stabilize our neighborhoods and 
families and a tool that drives the Nation's economic engine.
  Unfortunately, in recent years the goals of home ownership have 
proven elusive for many Americans. According to a recent report by the 
Center on American Progress, nearly one in three Americans is low-
income, with an income below twice the poverty line. A further 1 in 20 
Americans lives in extreme poverty, with an income below half of the 
poverty line.
  That's why I have often joined with my colleagues in the House to 
call for the provision of adequate and affordable housing and a strong, 
safe and stable community for all Americans particularly those of low- 
and moderate income individuals and families and members of minority 
populations.
  Furthermore, in the 110th Congress, I am sponsoring three housing 
bills: H.R. 172--Community Partners Next Door Act; H.R. 173--One Strike 
and You're Out Bill; and H.R. 174--Public Housing Drug Elimination 
Program. These bills take steps to address housing affordability, 
neighborhood safety and fairness in the enforcement of local and 
Federal statutes.
  Mr. Speaker, we have a responsibility to ensure that the gap between 
the rich and the poor is narrowed and that all Americans have the 
opportunity to pursue the American dream.
  Mr. DONNELLY. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Indiana (Mr. Donnelly) that the House suspend the rules 
and agree to the resolution, H. Res. 477.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the resolution was agreed to.
  A motion to reconsider was laid on the table.

                          ____________________