Housing

On January 20, 1941, President Roosevelt declared, "A nation, like a person, has a body - a body that must be fed and clothed and housed, invigorated and rested, in a manner that measures up to the objectives of our time." And in his State of the Union Address of 1945, FDR motivated the nation with this call: "The provision of a decent home for every family is a national necessity, if this country is to be worthy of its greatness - and that task will itself create great employment opportunities. Most of our cities need extensive rebuilding. Much of our farm plant is in a state of disrepair. To make a frontal attack on the problems of housing and reconstruction will require thorough-going cooperation between industry and labor, and the Federal, State and local governments." It is as if FDR's speeches were written yesterday - and they remain relevant enough to deliver tomorrow.

Great strides have been made since the Depression-era housing crisis, which prompted the nation, under President Roosevelt's bold leadership, to start down the path of federal involvement in the housing sector. Today record numbers of American families own their own homes; the overall quality of housing stock and the diversity of housing choices available to Americans both have improved markedly. Federal policies have been instrumental in eliminating financial risk to homeowners and lenders through such vehicles as mortgage insurance and favorable tax treatment for homeowners, developers, and investors. Direct subsidies allowing for below-market interest rates and down-payment assistance have created a whole new class of homeowners. A secondary market for mortgages made possible through the creation of government-sponsored enterprises like Fannie Mae, Freddie Mac, and Ginny Mae, a HUD agency, provide liquidity and economic security to lenders, enabling extensions of credit to American families not possible before federal intervention. Though the political rhetoric often implies that only the poor have benefited from federal housing programs, it is clear that national housing policies have bolstered the housing conditions of American families at all income levels.

Despite those efforts, as well as unprecedented levels of productivity and financial prosperity, far too many Americans suffer from severe housing needs. Nearly 14 million Americans - one in every seven families - are unable to live in both healthy and affordable conditions. The provision of affordable housing affects not only the housing-burdened, but also, ultimately, the nation's future economic health.

It is well documented that the state of the housing industry has always been closely linked to the nation's economic growth. For example, when housing starts fail to keep pace with job creation in high-growth areas, shortages cause prices to spiral out of control. Sale prices for existing housing stock are driven up, out of the reach of low- and increasingly of moderate-income, families as well. Higher construction costs cause builders to cater to higher-end buyers, leaving behind workers who are essential to the community's continued viability. It is not only lower-wage public sector and service industry employees who are affected by these market circumstances. Faced with housing shortages and longer commutes, professional employees are turning down otherwise appealing job offers, posing serious recruiting problems for employers. Without an appropriate federal response to this pervasive market failure at all income levels, this pattern will only worsen.

Many of us have always believed that adequate housing is synonymous with "the American Dream." Unfortunately, it is no longer a foregone conclusion that hardworking Americans, even families with two adults working full time, can provide for their families and own their own homes, as was once possible in this great country. While a majority of working-class families own their own homes, these families, struggling to make high mortgage payments relative to their incomes, cannot avail themselves of the primary federal housing subsidy - the mortgage interest deduction. Without sufficient income to itemize deductions on their income tax returns, 1.6 million low- and moderate-income working families struggle without any form of available federal assistance to meet their housing needs. Only a comprehensive federal housing policy that meets the needs of all Americans - at all income levels - can guarantee the future strength of our nation and our economy.

After a job or an income that provides adequate economic security - and right next to universal and comprehensive health care of equal high quality - decent, safe, sanitary, and affordable housing stands as one of the greatest material needs of the American people.

I believe that adequate, safe, and affordable housing is a human right. As civilizations and economies develop, certain material basics (like food, shelter, health care, and education) should not be turned over completely to market forces, to a "survival of the fittest" philosophy and program. We know that in such a system, the few always wind up on top with the best and most of everything, while the many end up on the bottom with the least and worst. Such is the case with housing in America.

Adequate and fair housing for all of the American people should not be treated like peanuts, soybeans, beer, and cars - a commodity to be produced, distributed, and sold privately in the marketplace for profit. Left completely alone, the market has not and will not provide decent, safe, sanitary, and affordable housing for all Americans. The market has a role, which I respect, and it plays its role very well. If the market provided for the housing needs of all Americans, that would be fine with me. I have no philosophical or ideological objection or bias to the contrary. But history has demonstrated that the market, left to its own devices, does not serve the housing needs or interests of all Americans, particularly poor and low-income and today increasingly middle-income-people. The market hasn't, it doesn't, and it won't or it already would have. Thus, as representatives of all of the American people - not just those who can survive in a private, "survival of the fittest," housing market - Congress and the executive branch of the federal government must assume its responsibility.

Speeches and articles:

• October 18, 2003: WOW Homebuyer Workshop

Additional material:

• Jan. 24, 2005: New Senior Housing Center In Harvey Named For Congressman Jackson
• Jan. 8, 2003: Members of Congress Support Low Income Home Energy Assistance Program