[Weekly Compilation of Presidential Documents Volume 38, Number 25 (Monday, June 24, 2002)]
[Pages 1025-1026]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

June 15, 2002

    Good morning. Owning a home lies at the heart of the American Dream. 
A home is a foundation for families and a source of stability for 
communities. It serves as the foundation of many Americans' financial 
security. Yet today, while nearly three-quarters of all white Americans 
own their homes, less than half of all African Americans and Hispanic 
Americans are homeowners. We must begin to close this homeownership gap 
by dismantling the barriers that prevent minorities from owning a piece 
of the American Dream.
    The single greatest hurdle to first-time homeownership is a high 
downpayment requirement that can put a home out of reach, so my 
administration is proposing the American Dream Downpayment Fund. When a 
low-income family is qualified to buy a home but comes up short on the 
downpayment, the American Dream Downpayment Fund will help provide the 
needed funds. We estimate that this fund will open the door to 
homeownership for 40,000 low-income families annually.
    A second obstacle to minority homeownership is a lack of affordable 
housing. To encourage the production of single-family homes for sale in 
neighborhoods where affordable housing is scarce, my administration is 
proposing a single-family affordable housing credit. Over the next 5 
years, this will provide developers nearly $2.4 billion in tax credits 
for building affordable single-family housing in distressed areas. These 
credits will make 200,000 new homes available over its first 5 years to 
low-income purchasers.
    A third major obstacle to minority homeownership is the complexity 
and difficulty of the purchasing process, so we're stepping up our 
efforts to better educate first-time home buyers. Consumers need to know 
their rights and responsibilities as home buyers. Education is the best 
protection for families against abusive and unscrupulous lenders. 
Financial education and housing counseling can help protect home buyers 
against abuses,

[[Page 1026]]

greatly improve the loan terms they are offered, and help families get 
through tough times with their homes intact.
    Through these important initiatives, we can help thousands of 
American families live the kinds of lives they had once only dreamed 
about. But Government action isn't enough. We need to energize and 
engage the private sector as well. That is why I have challenged the 
real estate industry leaders to join with the Government, with non-
profit organizations, and with private-sector financial institutions in 
a major nationwide effort to increase minority homeownership.
    My approach to broadening homeownership focuses on empowering people 
to help themselves and to help one another. These important initiatives 
will accomplish their purpose because Americans, working together and 
taking responsibility for one another, will make this great country even 
greater.
    The strength of America lies in the honor and the character and good 
will of its people. When we tap into that strength, we discover there is 
no problem that cannot be solved in this wonderful land of liberty.
    Thank you for listening.

Note: The address was recorded at 11:42 a.m. on June 13 in the Cabinet 
Room at the White House for broadcast at 10:06 a.m. on June 15. The 
transcript was made available by the Office of the Press Secretary on 
June 14 but was embargoed for release until the broadcast. The Office of 
the Press Secretary also released a Spanish language transcript of this 
address.