[Congressional Record Volume 153, Number 113 (Monday, July 16, 2007)]
[House]
[Pages H7793-H7795]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1430
RURAL HOUSING AND ECONOMIC DEVELOPMENT IMPROVEMENT ACT OF 2007
Mr. HINOJOSA. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1982) to authorize appropriations for the rural housing and
economic development program of the Department of Housing and Urban
Development, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1982
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Housing and Economic
Development Improvement Act of 2007''.
SEC. 2. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.
(a) Use.--The Secretary of Housing and Urban Development
may carry out a program, through the Office of Rural Housing
and Economic Development, to provide assistance to Indian
tribes, State housing finance agencies, State community or
economic development agencies, local nonprofit organizations
and community development corporations in rural areas to
support innovative housing and economic development
activities in rural areas.
(b) Requirement of Social Security Account Number for
Assistance.--As a condition of initial or continuing
assistance under any housing or economic development activity
that is provided assistance with amounts made available under
this section, the Secretary of Housing and Urban Development
shall require that each member of a family so assisted (or of
a family applying for such assistance) who is 18 years of age
or older or is the spouse of the head of household of such
family, shall have a valid social security number.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of Housing and Urban
Development for assistance under this section--
(1) $30,000,000 for fiscal year 2008; and
(2) $40,000,000 for each of fiscal years 2009, 2010, 2011,
2012, and 2013.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Hinojosa) and the gentleman from New Mexico (Mr. Pearce)
each will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. HINOJOSA. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this legislation, and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. HINOJOSA. Madam Speaker, I yield myself such time as I may
consume.
I rise today in strong support of H.R. 1982, the Rural Housing and
Economic Development Improvement Act of 2007.
I introduced H.R. 1982 earlier this year. It was referred to the
Committee on Financial Services. Chairwoman Maxine Waters held a
hearing on it in her Housing Subcommittee, and the committee reported
it favorably to the floor to the point where we are today.
At this point, I would submit for the Record a statement of the
National Association of Realtors in support of the Rural Housing and
Economic Development Improvement Act.
Statement of the National Association of Realtors to the House
Financial Services Committee, Subcommittee on Housing and Community
Opportunity Hearing
rural housing programs: review fiscal year 2008 budget and pending
rural housing legislation--may 9, 2007
Nearly 20% of the U.S. population live in non-metropolitan
areas. Housing conditions in rural areas are generally worse
than in urban or suburban neighborhoods. Federal rural
housing programs are instrumental in providing affordable
housing opportunities to low- and moderate income rural
renters and homebuyers. The National Association of
REALTORS' strongly supports federal housing
programs that target rural communities and provide sufficient
federal assistance needed to meet the housing needs of rural
communities.
Many of our rural citizens face a serious housing crisis.
Nearly all of the counties with the highest poverty rates in
America are rural. As a result, access to an adequate supply
of safe, affordable rental units, mortgage financing and
housing assistance is especially important in these areas.
Approximately 1.9 million rural renters have housing
problems; the majority of these renters are spending more
than 30% of their incomes for housing. These areas also
generally have fewer mortgage lenders competing in the
marketplace, a factor that raises the cost of home mortgages.
FY2008 budget proposals
The President's FY2008 budget proposal for the U.S.
Department of Agriculture's Rural Housing Service (RHS)
reflects a preference for loan guarantees and vouchers to
provide low income rental housing. The President's budget
proposal eliminates funding for the Section 502 single family
direct loan program, while increasing funding for the Section
502 single family guaranteed loan program by 32%. Similarly,
the proposal would eliminate funding for the Section 515
multifamily direct loan program (which provides loans to
developers of affordable rental housing), while doubling
funding for the Section 538 multifamily guaranteed program.
Lastly, the budget proposes to increase from 2 to 3 percent,
the guarantee fee on new 502 loans.
While NAR's members understand and support programs like
loan guarantees that leverage available funds, we also
believe that direct loan programs are also very important. In
many rural communities, the Section 502 direct loan program
is the only housing assistance available. Section 502
homeownership direct loan program loans are used primarily to
help low income households purchase homes. They can be used
to build, repair, renovate, or relocate homes, and to
purchase and prepare sites, including providing water and
sewage facilities. These loans may also be used to refinance
debts when necessary to avoid foreclosure or when required to
make necessary house repairs affordable. We strongly support
the availability of sufficient federal assistance to ensure
the Section 502 direct loan program responsibly addresses the
housing needs of low and moderate income rural families.
Rental housing is also a critical need in rural
communities. Approximately 7.8 million people in non-
metropolitan areas in the U.S. are poor. Section 515 Rural
Rental Housing Loans are direct, competitive mortgage loans
made to finance affordable multifamily rental housing units
for very low-, low-, and moderate-income families, elderly
persons, and persons with disabilities. Since its inception
in 1962, the Section 515 program has provided more than half
a million decent rental homes affordable for the lowest
income rural residents. We urge Congress to restore
construction funding for the Section 515 program eliminated
in the President's FY2008 budget so as to enable low-income
rural families to find decent, safe, and affordable housing.
We also strongly oppose the proposed increase in the
guarantee fee on 502 loans. Increasing the fee will mean that
rural low- and moderate-income families will have to pay more
for the opportunity to become homeowners. This may cause some
families to become ineligible for a mortgage.
Pending rural housing legislation
The National Association of REALTORS' also
supports H.R. 1982, the ``Rural Housing and Economic
Development Improvement Act of 2007'', introduced by Rep.
Hinojosa (D-TX). This bill would authorize the Rural Housing
and Economic Development program at HUD that provides
assistance to states and localities for housing and economic
development activities in rural communities. The program
provides limited funding on a competitive basis to community
groups including local rural non-profits, community
development corporations, housing finance agencies (HFAs),
and economic development agencies. The funding may be used
for capacity building and similar support for housing and
economic development projects in areas with a population of
less than 20,000. This program has been operating
successfully at HUD but has not been authorized. HR 1982
would simply authorize the program and deserves Congressional
support.
Conclusion
In closing, the National Association of
REALTORS' appreciates this opportunity to comment
on the needs for rural housing. We thank the Subcommittee for
its attention to rural housing, and we urge your strong
support of our policy and funding recommendations to improve
rural housing opportunities.
Madam Speaker, 20 percent of our Nation's population lives in rural
communities, yet far too many of these families live in conditions that
are poor, inadequate or run down. To address these horrendous
conditions, I cofounded and currently chair the Congressional Rural
Housing Caucus. The goal of the caucus is to improve the availability,
affordability and quality of housing in rural America.
H.R. 1982 provides $30 million for the Rural Housing and Economic
Development, known as the RHED, program respectively for fiscal year
2008, and $40 million for fiscal years 2008 throughout the year 2013.
I believe this legislation will go a long way towards accomplishing
the goals of the Congressional Rural Housing Caucus.
The Rural Housing and Economic Development program provides for
capacity building at the State and at the local level for rural housing
and economic development, and to support innovative housing and
economic development activities in rural areas.
[[Page H7794]]
Funds made available under this program are awarded competitively on
an annual basis through a selection process conducted by HUD. This
program is established to assist nonprofit organizations in rural
communities across America. Eligible applicants are local rural
nonprofits as well as community development corporations, federally
recognized Indian tribes, State housing finance agencies, and State
community and/or economic development agencies.
Support for innovative housing and economic development activities is
intended for, but not limited to, other costs for innovative housing
and economic development activities.
Possible activities include the following: Preparation of plans;
architectural drawings; acquisitions of land and buildings; demolition;
provision of infrastructure; purchase of materials and construction
costs; use of local labor markets; job training and counseling for
beneficiaries; and financial services such as revolving loan funds and
IDAs, which are the individual development accounts.
Other possible activities include home ownership and financial
counseling, the latter of which is important to me in my role as the
cofounder and cochair of the Financial and Economic Literacy Caucus
with my friend Congresswoman Biggert.
The RHED program also allows for application of innovative
construction methods, provision of financial assistance to homeowners,
businesses and developers, and the establishment of CDFIs, lines of
credit, revolving loan funds, microenterprises, and something that is
much needed in my own district, small business incubators.
The Rural Housing and Economic Development Enhancement Act of 2007
will help the RHED program provide additional funding needed to
increase and improve capacity, building at the State and local level
for rural housing and economic development.
I urge my colleagues to vote for the bill.
Madam Speaker, I reserve the balance of my time.
Mr. PEARCE. Madam Speaker, I rise today in support of H.R. 1982, the
Rural Housing and Economic Development Improvement Act of 2007. RHED is
designed to provide grants to Indian tribes, State housing finance
agencies, State community or economic development agencies, local
nonprofit organizations and community development corporations.
H.R. 1982 was introduced in response to the administration's budget
proposals for the fiscal year 2008, which zeros out the RHED program by
consolidating it into the Community Development Block Grant program,
CDBG.
This shows a continuing promise by the administration to more
effectively manage its grant programs. However, preserving the one
remaining outreach in HUD to rural communities is critical in helping
our most impoverished citizens.
The Second District of New Mexico, which I represent, is one of
America's most rural districts, and it is critical that Congress
provide our rural citizens with the proper access to safe, affordable
housing. For example, in the town of Columbus, New Mexico, near the
Mexican border, there are citizens who have no running water in their
homes. They must bring a pail to the center of town in order to get
water for their families. Many times these individuals are overlooked
because of geography, and we must protect their rights.
I would like to thank Congressman Hinojosa for recognizing the need
for safe housing in rural communities like those in southern New
Mexico. The need for this kind of program is great in the Second
District, and I am grateful to assist in seeing that Congress is coming
to the aid of the neediest families in rural areas. I urge my
colleagues to support this legislation.
Madam Speaker, I reserve the balance of my time.
Mr. HINOJOSA. Madam Speaker, at this time, I wish to yield 5 minutes
to my good friend, the gentleman from New Hampshire, Congressman Paul
Hodes.
Congressman Hodes has helped focus Congress' attention on rural
housing issues and environmentally green, sustainable building
practices. And he has earned the respect of those of us on that
committee.
Mr. HODES. I thank the gentleman for yielding on this important bill.
Madam Speaker, I had the privilege to speak briefly on H.R. 1980. In
many ways, H.R. 1982 is a companion measure.
This important act authorizes the Secretary of Housing and Urban
Development, through the Office of Rural Housing and Economic
Development, to implement important assistance programs to support
innovative housing and economic development activities in rural areas.
Both in my State of New Hampshire and in States around the country,
this important act will provide much needed assistance.
I rise in strong support of this act. I urge my colleagues to
unanimously approve of this measure.
Ms. WATERS. Madam Speaker, I rise in strong support of H.R. 1982, the
Rural Housing and Economic Development Improvement Act of 2007. This
bill authorizes $30 million for the U.S. Department of Housing and
Urban Development's, HUD, Rural Housing and Economic Development, RHED,
program in FY 2008 and $40 million for Fiscal Years 2009-2013.
Although Congress has funded RHED since 1999, this bill finally gives
the program formal authorization. Such authorization is long overdue,
as this competitive grant program has long-since proven its worthiness.
According to the Office of Management and Budget, RHED grants have
created more than 9,100 jobs and more than 112,000 housing units.
RHED grants are desperately needed to address the growing affordable
housing crisis in rural America. While housing costs are lower in rural
America, so too are household incomes. As a result, rural America faces
a growing affordability concern, particularly among renters. According
to the 2005 American Housing Survey, nearly 3.6 million rural
households are cost burdened, paying more than 30 percent of their
monthly income for housing costs. The Department of Housing and Urban
Development's biennial ``worst case housing needs'' survey reveals
that, in 2005, nearly 1 million rural households paid more than half
their incomes in housing costs and/or lived in substandard housing--a
dramatic 51 percent increase since 2003.
RHED funding is prudently allocated--based on community need measured
by poverty and unemployment rates, as well as by other indicators
including rates of substandard housing and percentage of households
facing affordability problems.
The RHED program also emphasizes specific high needs regions and
populations. Over 60 percent of the organizations that have received
RHED funds over the program's history serve high needs regions, which
include Appalachia, the Mississippi Delta, the Border Colonias, Native
American lands, and farmworkers.
The RHED program also targets smallest, most isolated rural
communities, giving extra weight to applications proposing to serve
areas with populations of 2,500 or less. Because of this targeting, the
Housing Assistance Council estimates that almost one-third of RHED
grants have been allocated to organizations serving the most remote
rural counties.
RHED is an especially important housing resource for rural America
because of its exclusive focus on rural communities--a unique niche
among HUD programs, and one that helps redress the challenges rural
communities face in obtaining funding in many other federal housing
programs. For example, only 12 percent of section 8 funds go to non-
metropolitan areas and the HOME program has no set-aide for rural
communities, with the result that they receive a disproportionately
small portion of formula grants. Less than 7 percent of FHA assistance
goes to non-metropolitan areas. On a per-capita basis, rural counties
fare worse with FHA, getting only $25 per capita versus $264 per capita
in metro areas. Only about 10 percent of Veterans Affairs housing
programs reach non-metropolitan areas and per capita spending in rural
counties is only one-third that of metropolitan areas.
RHED fills such critical gaps left by other Federal housing and
community development programs. Its flexible design supports
comprehensive community development efforts that address the
interconnected housing and economic development needs of rural
communities. This targeted resource has enabled rural community
organizations across the country to design and implement innovative
programs and stabilize their communities. The ongoing need for the RHED
programs is clear and I encourage my colleagues to vote for H.R. 1982,
the Rural Housing and Economic Development Improvement Act of 2007.
Mr. RODRIGUEZ. Madam Speaker, I would like to thank Chairman Frank
and my friend Congressman Hinojosa for bringing forth this important
legislation and making it a priority for the American people.
[[Page H7795]]
I rise today in strong support of H.R. 1982, the Rural Housing and
Economic Development Improvement Act of 2007, a bill that would
implement an assistance program to support economic and housing
development in rural areas. This act would provide assistance to Indian
tribes, State housing finance agencies, State community or development
agencies, local nonprofit organizations and community development
corporations.
According to the Texas Low Income Housing Information Service, in
Texas alone, more than one million people have lived in public housing
over the past 60 years. In Texas and throughout the country, the
majority of families living in public housing have very low income and
have no alternative to public housing.
My Congressional District is very rural, and housing in these very
low-income communities remains a top concern. This act would allow
sustainable low income housing and improve the economic standard of our
working-class families in Texas.
I ask all my colleagues to join me in supporting those in need of
assistance by voting for this bill.
Mr. SMITH of Nebraska. Madam Speaker, In 2006, the Santee Sioux Tribe
of Nebraska, in Niobrara, received a Rural Housing and Economic
Development Innovative Support Grant award, to provide additional
funding for a 40-unit subdivision in the Village of Santee.
Today, we will pass H.R. 1982, authorizing the Office of Housing and
Urban Development to authorize the Rural Housing and Economic
Development program to provide competitive grants to support housing
and economic development in rural areas.
This program is the only exclusively rural housing program
administered by HUD, and focuses on ``high-risk'' areas.
If rural areas of Nebraska are going to grow and prosper, we need
strong, safe communities. H.R. 1982 is an investment in the future for
struggling rural areas, and is a good step in the right direction.
Mr. PEARCE. Madam Speaker, I yield back the balance of my time.
Mr. HINOJOSA. Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Hinojosa) that the House suspend the rules
and pass the bill, H.R. 1982, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. PEARCE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________