HOUSING
If there is one thing that is often equated with the American Dream, it is your own home. For many, a home is not merely shelter, but also provides an opportunity for growth, prosperity and security.
While the homeownership rate continues to rise -- setting an all-time high in 2004 at 69 percent, it would be wrong to suggest that a disparity in homeownership rates in America does not exist. There have been some positive strides made in reducing this disparity in recent years. According to the Harvard Joint Center for Housing Studies' 2005 State of the Nation's Housing report, between 1991 and 2003, the minority share of first-time homebuyers increased from 22 to 35 percent. But I believe that we should and can do better.
Congress and President Bush are committed to bridging the gap in homeownership rates. I intend to work with my colleagues to develop solutions to housing barriers faced by underserved populations and to provide relief that makes homeownership possible for all. We must ensure that the people of the 26th District have an opportunity to have a piece of the American Dream.
American Dream Downpayment Program
On December 16, 2003, President Bush signed into law (Public Law 108-186) The American Dream Downpayment Act, which authorizes the downpayment assistance program. The HUD Secretary may award grants to state and local governments to assist low-income families who are first-time homebuyers with incomes at or below 80 percent of the local area median income. Funds will be allocated to jurisdictions based on the percentage of the national total of low-income households residing in rental housing in the participating jurisdiction. The law authorizes $200 million for each fiscal year from 2004 through 2007. Up to 20 percent of the grant funds may be used to provide assistance to the first-time homebuyers for home repairs. Downpayment assistance to families is limited to not more than the greater of either 6 percent of the purchase price of the home or $10,000. The House-passed version of H.R. 3058, The FY2006 Transportation, Treasury, Housing and Urban Development, the Judiciary, District of Columbia, and independent agencies appropriations bill, includes $50 million for this program.
Single-Family Affordable Housing Tax Credit
The Bush Administration has proposed a homeownership tax credit to stimulate the production of homes that are affordable to lower-income households and to help revitalize distressed communities. I support the creation and implementation of a single-family affordable housing tax credit.
The ownership tax credits would provide tax credits to be taken by homebuilders (developer or investor partnership) over five years to encourage the rehabilitation of existing properties (including abandoned housing in central cities) or new construction of about 40,000 affordable single-family homes a year in urban or rural areas. Credits would be allocated to state housing credit agencies on the basis of population ($1.80 per capita in the first year and indexed to inflation thereafter). State agencies would award first-year credits to single-family housing units in a project located in a census tract with median income equal to 80 percent or less of the area median income. The present value of credits, determined on the date of a qualifying sale, could not be more than 50 percent of the cost of constructing a new home or rehabilitating an existing property.
For more information on Housing issues, please visit the following websites:
House Housing Committee
House Financial Services Committee
Texas Department of Housing and Community Affairs
