[Congressional Record (Bound Edition), Volume 154 (2008), Part 3]
[Senate]
[Pages 3021-3022]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             HOUSING CRISIS

  Mr. McCONNELL. Mr. President, I wish to take a few moments of my 
leader time, not to interfere in the record with this discussion that 
has been ongoing between the Senators from Kansas and Washington.
  Last week we debated housing. Democrats want to raise monthly 
mortgage payments on everyone who wants to buy a new home or refinance 
an existing one. Republicans have a broader, bolder plan. We want to 
create the economic conditions that make home ownership easier--more 
jobs and higher wages. Our first priority is to help families who are 
either facing foreclosure or seeing the values of their homes drop as a 
result of other foreclosures nearby.
  This morning I want to talk about one specific action we can take to 
help these families. Home values are falling not only because of cut-
rate sell-offs by banks but also because areas with high volume and 
vacant homes often see an increase in crime and neglect. One thing 
government has done in the past to the help reverse a slide in home 
values is to make tax credits available to people who pick up 
foreclosed homes in affected areas. This worked in the mid-1970s when a 
period of easing credit led to overconstruction and higher interest 
rates. Congress responded with a $6,000 tax credit spread over 3 years 
for anyone who bought a new home for their primary residence. This is 
what they did back in the 1970s. Home values were stabilized. Inventory 
dropped, and the housing market recovered.
  Congress should do the same today. Senator Johnny Isakson of Georgia, 
a real expert in real estate and housing, who spent decades in that 
field, has a fabulous idea. He saw the good effects of the tax credit 
that Congress provided back in the 1970s. Now he is proposing a $15,000 
credit spread over 3 years for people who buy newer homes with a first 
mortgage in default or single-family homes in the possession of a bank. 
Let me say that again. He is proposing a $15,000 tax credit spread over 
3 years for people who buy newer homes with a first mortgage in default 
or single family homes in the possession of a

[[Page 3022]]

bank. Buyers must occupy those homes as their principal residence to be 
eligible. We are not about to let speculators come in and make the 
current problem even worse.
  This is one idea Republicans are proposing to help families 
struggling with the painful effects of the housing downturn. I 
mentioned some of these ideas yesterday. We will discuss others as the 
week goes on.
  A lot of families need urgent relief. They should know the Government 
is doing everything it can, without damaging our long-term economy, to 
help them through a very difficult stretch. We certainly should avoid 
measures that make the underlying situation worse, as the centerpiece 
of the Democrats' response to the housing situation would certainly 
make happen.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from Washington.

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