[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.

                          ____________________