[Congressional Record (Bound Edition), Volume 154 (2008), Part 4]
[House]
[Page 4693]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1730
                       THE CURRENT HOUSING CRISIS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from New York (Ms. Clarke) is recognized for 5 minutes.
  Ms. CLARKE. Madam Speaker, today I rise to express my dismay 
regarding the housing crisis. It's a multifaceted housing crisis. It's 
a mortgage crisis for home buyers. It's an inventory crisis for the 
affordable rentals. It is an investment crisis for public housing.
  Two top executives at Countrywide Financial are expected to receive a 
combined golden parachute totaling $19 million, and while these top 
executives cash out their stock options, hardworking Americans are left 
struggling, trying to prevent the loss of their homes and ultimately 
their financial ruin.
  It is truly incredible how the Bush administration, SEC Chairman Cox, 
Treasury Secretary Paulson, and Federal Reserve Chairman Bernanke have 
seen fit to extend billions of dollars for a Wall Street bailout but 
won't provide additional, adequate aid to borrowers fighting every day 
to save their properties.
  Today, we are looking at one of the biggest financial catastrophes 
since the Great Depression.
  Brooklyn, New York, has five of the top 10 neighborhoods with the 
highest subprime lending rates, including East Flatbush, which is 
located in my district.
  Madam Speaker, after analysis and examination, the sharp increases in 
foreclosures are connected to predatory lending practices from abusive 
lending institutions. New York City will likely see more than 10,000 
foreclosures this year, which is roughly double the number of 
foreclosures in 2004.
  But while Washington is concerned about the impact of the subprime 
mortgage crisis on Wall Street, on Main Street many hardworking people 
are getting left behind. Hardworking families and individuals like 
those I represent in central Brooklyn have for far too long been 
targets of predatory lending practices; yet this administration comes 
to the rescue of the high-profile executives and leaves the very people 
who they are sworn to serve, defend, and protect to fend for 
themselves.
  We must not forget that there is another dimension to the housing 
crisis occurring in communities less traveled by many, in the community 
where many are suffering from the affordable rental housing crisis. 
These families are being squeezed out of their homes as landlords 
convert their apartments to high-priced condominiums, earning double-
digit rent increases or opting out of Federal subsidy programs such as 
Mitchell-Lama or project-based section 8 as more affordable rental 
apartments are being lost while the demand increases.
  Let's not forget as well public housing's vital role in this housing 
crisis. Public housing is home to more than 400,000 New Yorkers. The 
New York City Housing Authority, which has a running deficit of more 
than $200 million every year, has been severely reducing their spending 
on security, maintenance, sanitation, and repairs, leaving many 
residents living in uninhabitable conditions.
  NYCHA had to lay off employees and close youth centers in an attempt 
to preserve its core services, and in housing projects located in 
neighborhoods such as Brownsville, Brooklyn, crime continues to reach 
into the lives of our families.
  Public housing is essential to New York City, and this negligence 
simply cannot continue.
  So, in conclusion, Madam Speaker, the Bush administration's actions, 
or lack thereof, clearly demonstrates that instead of preventing the 
devastating loss to our communities by providing financial assistance 
to homeowners, providing full funding to reduce the affordable housing 
stock from dwindling, and preventing public housing units from 
deteriorating, our President has taken the path of least resistance by 
bailing out corporate fat cats and turning a blind eye and a deaf ear 
to the hard-working families of my district and of our Nation.
  Madam Speaker, I look forward to working with my colleagues to turn 
this devastating condition around and restoring the pride and dignity 
of responsible, thriving communities.

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