[Congressional Record (Bound Edition), Volume 148 (2002), Part 8]
[House]
[Pages 10500-10503]
[From the U.S. Government Publishing Office, www.gpo.gov]




                RECOGNIZING NATIONAL HOMEOWNERSHIP MONTH

  Mr. GARY G. MILLER of California. Madam Speaker, I move to suspend 
the rules and agree to the concurrent resolution (H. Con. Res. 415) 
recognizing National Homeownership Month and the importance of 
homeownership in the United States.
  The Clerk read as follows:

                            H. Con. Res. 415

       Whereas the President has issued a proclamation proclaiming 
     June 2002 as National Homeownership Month;
       Whereas owning a home represents the American dream for our 
     Nation's families;
       Whereas the national homeownership rate has increased to 
     67.8 percent, higher than at any other time in history for 
     all demographic groups, and homeownership rates among 
     minority families are increasing faster than such rates for 
     the population as a whole;
       Whereas the purchase of a home is oftentimes a family's 
     largest personal investment;
       Whereas homeownership provides economic stability and 
     security for homeowners and their communities by allowing 
     homeowners to build wealth over the life of the home and have 
     a greater stake in local schools, civic organizations, and 
     churches;
       Whereas improving homeownership opportunities requires the 
     commitment and cooperation of private, nonprofit, and public 
     sectors, including the Federal Government and State and local 
     governments; and
       Whereas the current policies of the United States 
     Government and the Congress encourage homeownership and 
     should continue to do so in the future: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That the Congress--
       (1) fully supports the goals and ideals of National 
     Homeownership Month; and
       (2) recognizes the importance of homeownership in building 
     strong communities and families in the United States.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Gary G. Miller) and the gentleman from Massachusetts 
(Mr. Frank) each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Gary G. 
Miller).


                             General Leave

  Mr. GARY G. MILLER of California. 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 on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. GARY G. MILLER of California. Madam Speaker, I yield myself such 
time as I may consume.
  Madam Speaker, H. Con. Res. 415 recognizes National Homeownership 
Month. First, I would like to thank the gentleman from Ohio (Mr. 
Oxley), chairman of the Committee on Financial Services, for his 
interest in this issue. The chairman looks for ways to get involved in 
housing issues. His willingness to look at new ideas and focus on long-
term solutions is really encouraging to the rest of the members of this 
committee. The gentleman from Massachusetts (Mr. Frank), the ranking 
member on the Democratic side, has been very encouraging and also 
forthright in looking to issues and ways to resolve the housing crisis 
in this country.
  Homeownership is the American dream. I introduced this resolution 
because I feel so strongly about homeownership. This country is home to 
people of many different origins; but everyone seems to have the same 
dream, to own their own home. This dream means many things to many 
people, independence, financial security, geographic stability, the 
ability to accumulate personal wealth, a place to raise a family, a 
prized possession to decorate and improve, or simply a place to go 
after a long day of work and find peace.
  As a homebuilder for over 30 years, I enjoyed watching many people 
achieve this dream. You could always see the excitement and 
anticipation in the face of a new homebuyer. I believe very strongly in 
the dream of homeownership, and I was pleased to see President Bush 
recognize it by proclaiming June 2002 National Homeownership Month. I 
look forward to working with him and HUD Secretary Mel Martinez to 
further the goal of this proclamation.
  The role of the Federal Government in homeownership: when I first 
started my business, I had an old van that used more oil than gas and 
every tool I had

[[Page 10501]]

was in a cardboard box in the back of it. It was a small company and I 
grew that company over the years. But with each passing year, I saw the 
impact of government on the housing industry and with each year came 
more government laws and regulations making it harder to build a home. 
The red tape kept increasing costs, which in business you have to pass 
on to the consumer. Homes kept getting more expensive.
  During National Homeownership Month, I think it is very important 
that we talk about how the government is impacting home prices. Last 
month, a 27 percent tariff was placed on Canadian softwood lumber, 
which will be used to frame homes. This will increase the cost of a new 
home by at least $1,500. Although we have a very similar species of 
wood that is native to the Pacific Northwest, Federal logging 
restrictions have reduced the supply below demand, so builders need to 
import it. The Endangered Species Act is often interpreted to give 
rats, frogs and plants more rights than people.
  In some parts of the country, in my district, specifically, in 
southern California, the heavy burden of Federal, State and local 
mandates is creating a generation of people who cannot afford to live 
in the community where they work and grew up. I call these people the 
new homeless. Exactly who are the new homeless? In my district it might 
be a couple whose husband might be a firefighter and the wife is a 
teacher. They have a good job and they make a good living, but their 
combined income does not qualify them to buy a median-priced home in 
Southern California. This is a national problem also occurring in New 
Jersey, New York, Massachusetts, Colorado and Oregon, among other 
places. The new homeless either end up renting, postponing the American 
dream of homeownership, or they commute, sometimes hours, until they 
find a community they can afford to live in. Although they may be 
homeowners, the only time they really spend in their home is the 8 
hours they spend in bed. Most of the other 16 hours of the day are 
spent working and commuting to and from work.
  I would encourage my colleagues to talk to their D.C. staff to see if 
you have any of the new homeless individuals in your offices. One of my 
legislative assistants has been looking for a condo since January. In 
that time, she has been outbid by $40,000 on an 854 square-foot condo 
that is $40,000 above the asking price and lost out on another 
opportunity to bid because she got to the property on a Sunday morning 
the day after it had gone on the market, and it was already under 
contract. She is almost priced out of the marketplace in the area and 
about ready to move to a cheaper part of the country. My legislative 
director and his wife bought a home in Sperryville, Virginia, which is 
about 2 hours from here. In both cases, the dream of homeownership is 
becoming a question of affordability and quality of life.
  Although nationally homeownership is at an all-time high of 67.8 
percent, there are pockets in this country where that statistic is 
significantly lower, and H. Con. Res. 415 states that improving 
opportunities for homeownership requires the commitment and the 
cooperation of all levels of government, Federal, State and local. I 
hope that National Homeownership Month will encourage that.
  The Federal Commitment to Improving Homeownership: I feel strongly 
about this issue because homeownership is the key to personal wealth in 
our country. When someone buys a home, they purchase an asset which 
will grow over time; and as equity accumulates, so does personal 
wealth. The role of the Federal Government should be to help 
individuals and families move into homeownership so they would have the 
ability to achieve personal wealth.
  I am so pleased that President Bush has announced his aggressive 
agenda to expand homeownership opportunities to at least 5.5 million 
families before the end of the decade. The Federal Government has a 
long history of supporting housing programs. FHA allows people to 
become homeowners with as little as 3 percent for a down payment. The 
Federal Home Loan Bank of San Francisco is working on a program that 
will help some of the new homeless achieve the dream of homeownership. 
They have teamed up with the San Francisco Chamber of Commerce and 
other organizations to offer loans to about 300 middle-income families. 
What is unique is how they define middle income, because in San 
Francisco that includes families making about $100,000 a year.
  While there are also great programs helping specific groups of 
people, I agree with President Bush, we can and must do more to expand 
homeownership opportunity to all people in this country.
  Long-term solutions: when most people talk about housing, they tend 
to focus on the low-income end of the spectrum. While I agree that 
assisting this group is important, I firmly believe that until we 
address the new homeless and begin creating a move-up market for the 
low-income individuals, we will not resolve our affordability entry 
level housing crisis.

                              {time}  1445

  The Federal Government supports a lot of great programs such as 
section 8 rental vouchers, which target low- and moderate-income 
families. But now these programs are starting to experience 
inefficiencies because there is no move-up market for the people in the 
section 8 housing to move out to.
  Programs like section 8 rental vouchers are crucial to moving 
families off welfare and can meet the needs of families who experience 
an emergency such as a job loss or death of a spouse. However, they 
should not be considered long-term solutions. Because we do not have a 
move-up market for a section 8 voucher family, they get stuck relying 
on government. If they make too much money and no longer qualify for 
the voucher, they cannot afford to move into their current community; 
and because they continue to tie up the voucher, other families who 
need assistance are stuck on waiting lists.
  In some areas such as Los Angeles, families are waiting years to get 
a voucher. This problem is compounded by the lack of housing supply 
because landlords can charge much higher rents, usually to the new 
homeless families who can pay the rent, but then cannot save for the 
down payment.
  There is no real incentive to be part of the section 8 voucher 
program. Fifty-nine percent of Los Angeles section 8 voucher recipients 
cannot find a place where they can use the voucher. To truly address 
the housing problem in our country, we need a real solution, not a 
Band-aid. We need policies which encourage the private sector to 
provide the housing that is needed; and this is something that the 
Federal, State, and local governments must really take on, and take on 
in a serious manner.
  I am pleased with President Bush that he has recognized this problem 
and has a plan to expand home ownership opportunities by working with 
the private sector to overcome the obstacles facing the new homeless as 
well as low- and moderate-income families. I am anxious to learn more 
about his proposal and do everything I can to produce a bill that will 
implement it.
  In conclusion, National Home Ownership Month is exciting. It has 
created a forum for us to start addressing issues that impact 
homeownership. I encourage my colleagues to support H. Con. Res. 415 
and take time this month to talk to the public housing authorities, 
Realtors, lenders, and especially perspective homebuyers in their 
districts to learn about the issues affecting homeownership.
  Madam Speaker, I reserve the balance of my time.
  Mr. FRANK. Madam Speaker, I yield 5 minutes to the gentlewoman from 
the District of Columbia (Ms. Norton).
  Ms. NORTON. Madam Speaker, I thank the gentleman from Massachusetts 
for yielding me time.
  Homeownership Month should be a time to study and take note of both 
the successes and the problems our country faces in homeownership. The 
President is in Atlanta speaking today about homeownership for minority 
Americans, and I applaud him for doing so.
  The reason one focuses on minority Americans, people of color, is 
because

[[Page 10502]]

of a success story. During the New Deal, one of Roosevelt's aims was 
for every American to own their own home. Today, we can say that almost 
every American does own their own home. The average American has 
obtained homeownership; and if we look at who has not, who has not are, 
of course, those who have had other disadvantages in society, and 
particularly people of color.
  In the 1990s we had an extraordinary housing boom and people of color 
forged ahead in homebuying as never before. But with the housing boom 
came economic boom that has very much subsided. Indeed, unemployment 
continues to go up every month, even given all of the prognostications 
about the recession being over. Even so, the housing boom brought a 
housing bust for many families.
  If you live in the District of Columbia or any suburb of any great 
city in the United States, finding affordable housing is like looking 
for a needle in a haystack. It has gone to the top of the list of 
American problems, receiving, however, almost no attention in our 
country and certainly no attention from this body. It is a great 
problem of our time.
  I do want to focus on a great success story here in the Nation's 
Capital, however. I was able in 1997 to get a $5,000 homebuyer credit 
for people who buy homes in the District of Columbia if you have not 
owned a house previously in the District and if you have an income of 
up to $90,000 for single people and up to $130,000 for married people. 
It goes up to that degree because the need in the District was for 
middle-income people. We have got more poor people than most other 
parts of the region.
  A $5,000 homebuyer credit, of course, can be the down payment on a 
$100,000 House; and Fannie Mae has monetized the homebuying credit, 
meaning it is in fact the down payment for many people.
  An independent study has looked at the $5,000 homebuyer credit and 
what it has done for this city and what a similar credit given by 
States could do for other large cities. The Greater Washington Research 
Center in one study found that over half of those who bought homes said 
the credit caused them to buy at this time. In 2000, 50 percent of 
those who bought homes in the District of Columbia bought homes because 
of the credit.
  I have a provision before the House that would make the $5,000 
homebuyer credit, perhaps the most successful economic stimulus in the 
city's history, permanent. It is chiefly responsible for stemming the 
flight that almost destroyed the city's tax base during the 1980s and 
during the financial crisis of the 1990s. The credit offers significant 
evidence that a tightly targeted tax incentive can have a major 
turnaround effect on a central problem confronting a city. The credit 
has been so successful that we have recommended that States do the same 
for many large cities that are rapidly losing taxpayers.
  70 percent of the D.C. homeowners who purchased homes the year after 
the credit was passed did so because of the credit. The $5,000 
homebuyer credit has proved itself so quickly and well that I have been 
able to get it repeatedly extended by Congress. It is minimally 
necessary if the city is to have any chance of increasing its still 
small and depleted tax base, which is an urgent necessity in this city 
at this time.
  I am grateful that the gentleman from Illinois (Speaker Hastert) has 
been working with me to extend the credit. Most such credits go up to 9 
years. I have had to go every 3 years to get this credit extended. It 
expires at the end of the next fiscal year, the end of 2003.
  The city, your Nation's Capital, needs 100,000 more residents for the 
capital city to be stable. This credit has proved its worth, using 
market forces and a tiny tax base, this tax credit provided by the 
Federal Government. States can do that for cities like Boston and 
Chicago. Only the Federal Government can do this for the capital of the 
United States. It has been an extraordinary success. It has helped us 
to get a diverse tax base once again.
  Mr. GARY G. MILLER of California. Madam Speaker, I yield myself 3 
minutes.
  Madam Speaker, this resolution and what the President is trying to do 
is an attempt to help people. The best thing you can do to help people 
in this country is enable them to help themselves.
  I remember when I was a boy, I moved to California when I was a year 
old from Arkansas, and at that point in time I lived in South Whittier, 
which was the district of my good friend from the Democrat side, the 
gentlewoman from California (Mrs. Napolitano).
  At that time it was a bunch of immigrants. It was ``Arkies'' and 
``Okies''; and we had one thing in common, we were poor. My dad left my 
mother when I was 6 months old and I was raised by my grandparents. We 
lived in a poor community, but it was our home; and in that home we 
established pride, and with that pride grew equity.
  Today that community is still a community of poor people, but now 
they are from Mexico and Latin America; but they still have the same 
thing in common that I did with my neighbors at that time: we were 
poor.
  Homeownership means a lot. What can we do? We need to make sure that 
the States understand how important it is that we provide opportunity 
for people through homeownership. I applaud the gentleman from 
Massachusetts (Mr. Frank). The gentleman from Massachusetts (Mr. Frank) 
looks at this issue, and he understands that section 8 vouchers are 
great because they help people that need help; but we have never found 
a unit that has been built with a section 8 voucher.
  In order to make sure that people have a place to live, we have to 
make sure that there is an affordable housing stock that is a level 
above a section 8 voucher, and that is for people to move out of 
section 8 homes into affordable homes. With that comes equity, and with 
that comes a future, and with that comes prosperity for their children 
and their future.
  We need to do everything we can in this country to focus the light on 
what the problem is. In many cases the problem is government. We need 
to focus on that issue fervently. The President and the chairman of 
HUD, Secretary Martinez, are doing what they need to to look at issues 
and say how can we fast track the process where people can get permits 
to build houses. How do we eliminate a lot of the restrictions and red 
tape and regulations? How do we tackle the Endangered Species Act?
  I have seen projects in my district that took 5 years to process, 
where they finally got entitled through the county, only to find 
because of a lawsuit that the Federal Government placed a mandate over 
that they now own rat habitat. After 5 years, the project ended up 
having a designation of ``habitat for a rat.''
  I really believe that people are more important than rats. Yes, we 
need to be concerned about the environment, but there was a time in 
this country when we used to swat flies and poison rats. Now we set 
aside habitat for those little critters. The problem is, it is not a 
federally owned habitat; the habitat is owned by private property 
owners, and that is wrong.
  We need to resolve the problems in this country, we need to provide 
opportunity for people to buy homes, and we need to deal with the new 
homes properly.
  Madam Speaker, I reserve the balance of my time.
  Mr. FRANK. Madam Speaker, I yield myself such time as I may consume.
  Madam speaker, I would like to note that I am glad to be here 
endorsing the importance of homeownership; but as the gentleman from 
California indicated, homeownership is very important for a significant 
segment of the population, indeed, we hope for a very large majority. 
But there will always be people among us who, for economic reasons in 
particular, will not be able to afford homes, and a rounded housing 
policy, we will do everything we can to help with homebuilding. It will 
also help with rental, including the production of rental housing.
  I hope that we will continue to support a balanced program, indeed, 
with more resources than we have done previously.
  Mrs. JONES of Ohio. Madam Speaker, giving every family and individual 
the tools they

[[Page 10503]]

need to buy a home is good for the homebuyer, the community, and the 
Nation. We must never lose sight of our goal and National Homeownership 
Month is the perfect time to rededicate ourselves to this goal.
  The housing industry is in a unique position to lead the Nation out 
of recession in 2002. A new report issued by the National Association 
of Home Builders, ``Housing--The Key to Economic Recovery,'' shows that 
housing accounts for about 14 percent of the Nation's Gross Domestic 
Product, or about one out of every seven dollars spent in the U.S. each 
year.
  The same report shows that the construction of 1,000 single-family 
homes generates 2,448 jobs in construction and construction-related 
industries, approximately $79.4 million in wages and more than $42.5 
million in Federal, State and local tax and revenue fees. Construction 
of 1,000 multifamily homes generates 1,030 jobs in construction and 
related industries, approximately $33.5 million in wages, and more than 
$17.8 million in Federal, State, and local tax revenue and fees.
  Minority purchase power is rising. Hispanics homeownership increased 
39 percent between 1994 and 2000. African-American homeownership 
increased 24 percent in that same period. However, minority 
homeownership rates are almost 30 percent lower than the overall 
national rate.
  Homeownership is a wise investment for long-term financial security, 
and an investment in America.
  Ms. EDDIE BERNICE JOHNSON of Texas. Madam Speaker, I rise today in 
support of H. Con. Res. 415. As we commemorate National Home Ownership 
Month throughout the month of June, it is the perfect time to remember 
that nothing sustains the American dream like owning a home. Home 
ownership is an essential tool for strengthening our communities and 
allowing more Americans to accumulate wealth. Homes are where our 
Nation's families grow, where lives are shaped and where decisions are 
made.
  It is essential that we work to increase the ranks of homeowners in 
every community across this country, and in particular among members of 
the African-American community, whose home ownership rates have 
traditionally lagged far behind other groups.
  According to the 2000 census, African-Americans recorded a $27,910 
median household income--the highest ever recorded--while recording 
record-low poverty rates. In 2001, it was estimated that the total 
income for African-Americans exceeded $565 billion, and more than half 
of African-American married couples had incomes of at least $50,000.
  Yet, according to the U.S. Department of Housing and Urban 
Development, only 48 percent of African-Americans own homes, compared 
to 74 percent of white families. And, in a recent study, 36 percent of 
African-Americans believed that access to capital was their greatest 
barrier to owning a home.
  These statistics show that many families of color are unable to 
capitalize on the benefits that home ownership provides. For far too 
long minority communities have been left out of the home ownership 
process. Though the number of African-American homeowners has increased 
by more than 20 percent in the last decade, too many people of color 
are missing out on the power of home ownership because they've fallen 
prey to decades of unfair lending practices, lack of savings or lack of 
affordable housing. As we all know, without proprietorship we have no 
power. This is whey we must take responsibility to ensure that our 
families can prosper through the benefits of owning a home.
  That is why the Congressional Black Caucus Foundation created the 
``With Ownership, Wealth'' initiative to promote access to lending and 
home ownership education and resources for people of color. This 
initiative is one way that the CBCF is letting people know the 
importance of home ownership and connecting those people with the 
funding sources that can make that dream a reality. Since its 
inception, the Congressional Black Caucus has championed equality for 
all, and the WOW initiative is merely an extension of our fight to 
ensure that all Americans will have the opportunity to experience the 
prosperity that is felt by too few.
  Combined with the CBC's agenda to increase the Nation's home 
ownership rates, this program will serve to develop the all-inclusive 
America of which we have only dreamt for far too long.
  I applaud the Congressional Black Caucus Foundation, under first the 
extraordinary leadership of Congresswoman Eva Clayton and now the 
groundbreaking leadership of Congressman Jefferson, for helping us 
forge ahead with this incredibly important initiative which will help 
all Americans realize the American dream.
  We still have much work to do to educate consumers about the value--
and the responsibility--of owning a home, but I am pleased that more 
resources are available than ever before to assist potential homebuyers 
in making this first step toward acquiring wealth. When we give people 
the right tools to purchase a home, we put them on a road to financial 
success.
  America is only as strong as it communities, and communities are only 
as strong as the families that live within. Home ownership is part of 
the foundation of a stable family. It provides a base for marriages to 
grow, a safe environment for children to learn, and the center through 
which families bond. Just as importantly, home ownership is the first 
step to wealth acquisition, and a primary mechanism for building a 
family asset base.
  Ms. JACKSON-LEE of Texas. Madam Speaker, today I rise to voice my 
support for H. Con. Res. 415, Recognizing National Homeownership Month. 
Today, there are 73 million Americans, who own a home. As our economy 
slowed down, housing is the glue that holds the Nation's economy 
together. This fact alone offers a compelling argument in support of 
homeownership. Owner-occupied property made up 21 percent of all 
household wealth in 1998. Moreover, the Federal Reserve says that this 
was more than 71 percent of all tangible wealth. Housing generates more 
than 22 percent of the Nation's Gross Domestic Product. Housing 
accounts for 32 to 40 cents of every dollar consumers spent.
  We are ignoring the fact that less than half of America's minority 
families are homeowners. So, while strides have been made, the gap in 
homeownership rates is unacceptable until everyone in America has the 
same opportunity for homeownership. Because where homeownership 
flourishes, neighborhoods are more stable, and residents are more 
civic-minded. In addition, schools are better, and crime rates decline. 
We are marking this month with events across the country. This is our 
opportunity to spread the word about homeownership--especially to 
minority families, who own far fewer homes of their own than non-
minority families do.
  H. Con. Res. 415 helps to recognize homeownership, thus more 
Americans become homeowners. This is the central mission at HUD. 
Congress has a long-standing commitment to homeownership. The American 
housing finance system is the best in the world. Moreover, I support 
President Bush's initiative to increase minority homeownership as once 
I did our past President William Jefferson Clinton's efforts as well. 
Therefore, I strongly support H. Con. Res. 415.
  Mr. FRANK. Madam Speaker, I yield back the balance of my time.
  Mr. GARY G. MILLER of California. Madam Speaker, I have no further 
requests for time, and I yield back the balance of my time.
  The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion 
offered by the gentleman from California (Mr. Gary G. Miller) that the 
House suspend the rules and agree to the concurrent resolution, H. Con. 
Res. 415.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. GARY G. MILLER of California. Madam 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.

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