[Congressional Record (Bound Edition), Volume 146 (2000), Part 12]
[Extensions of Remarks]
[Page 16890]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 16890]]

             COMMUNITY RENEWAL AND NEW MARKETS ACT OF 2000

                                 ______
                                 

                               speech of

                         HON. CAROLYN McCARTHY

                              of new york

                    in the house of representatives

                         Tuesday, July 25, 2000

  Mrs. McCARTHY of New York. Mr. Speaker, I rise in support of the New 
Markets Initiative before the House today. This bipartisan bill 
provides hope for distressed economic areas that have not benefited 
from the longest stretch of economic growth since World War II.
  Despite unprecedented economic expansion and sustained unemployment 
levels, many people in inner cities and rural areas continue to live in 
poverty. Job growth is virtually nonexistent while crime rates continue 
to increase.
  This legislation establishes 40 new ``renewal communities'' in areas 
with high poverty and unemployment levels. These distressed areas can 
qualify for various tax incentives and loan assistance programs.
  As a member of the House Small Business Committee, I believe the New 
Markets Initiative will help jumpstart these underserved communities. 
Specifically, the New Markets Venture Capital Program which creates a 
new class of venture capital funds that target low-to-moderate income 
communities.
  In addition to attracting investors and businesses to these 
distressed areas, this legislation addresses the housing needs of 
community residents. One provision, in particular, expands the low 
income housing credit from $1.25 per capita to $1.75 per capita. This 
tax credit, administered by the states, helps build 90,000 affordable 
housing units each year. However, the demand for the credits is greater 
than the supply by three to one. This proposal would help create an 
additional 180,000 units of affordable housing over the next 5 years 
for low-income families.
  In order to sustain this economic boom, it must benefit everyone. The 
New Markets Initiative helps achieve this goal by providing the tools 
and incentives to foster and sustain economic growth in distressed 
areas.
  I urge my colleagues to support this important piece of legislation.

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