Contact: Ernie Blazar 202.224.7627 Shana Stribling 202.224.0309
Friday, September 20, 2002

Bill Encourages Production of New Houses

WASHINGTON - Senator Kit Bond today introduced new legislation (S. 2967) today to encourage the production of new houses for very low and extremely low-income families in Missouri and around the nation. Senator Susan Collins, (R-ME), joined Bond as an original co-sponsor.

“A safe and affordable home can make all the difference in the world for children and families of very modest means,” said Bond, a long-time housing advocate. “This bill will help us build new houses and renovate older buildings.”

Bond is in a unique position to influence the nation’s housing debate because of his position as the top-ranking Republican on the Senate Appropriations Subcommittee that funds the U.S. Department of Housing and Urban Development.

The legislation would establish a $1 billion program to give money to state housing agencies. No more than 20 percent of the money can be used to renovate older housing. The rest must be used to build new houses. Though the $1 billion would be distributed to all the states on a per capita basis, no state will reserve less than $6 million. Also, states would be required to meet a 25-percent matching requirement.

The assisted housing is to be developed as part of mixed-income housing with at least 30-percent of the housing targeted to extremely low-income families (families at or below 30 percent of median income). Rents for assisted units are modeled after the low-income program, only with even deeper targeting: extremely low-income families would pay in rent no more than 25 percent of 30 percent of median income and very low-income families would pay no more than 25 percent of 50 percent of median income.

In addition, Bond’s housing bill would establish a “Thrifty Voucher” program that targets Section-8 housing for new construction and substantial rehabilitation. The bill also contains a new loan guarantee program that will allow public housing agencies to rehabilitate existing public housing or develop off-site public housing in mixed income developments. This will help public housing agencies address the $20 billion backlog in public housing needs.

“As rates of home-ownership climb and home prices soar, very low-income families will be left behind unless we act now,” said Bond. “Building safe and affordable homes is the most cost-effective investment we can make in families who need help.”