Rep. Salazar Votes to Expand Affordable Housing

WASHINGTON, D.C. – Today, Congressman John T. Salazar voted to strengthen the housing market and stabilize the economy, expand affordable housing and mortgage loan opportunities for families at risk of foreclosure, and strengthen consumer protections against risky loans in the future.

“Congress took a major step today to address our nation’s mortgage crisis by establishing a national affordable housing trust fund,” said Congressman Salazar.  “One in seven households nationwide spend more than 50% of their income on housing and about 750,000 people are homeless any given night, including in Colorado.  Too many families face losing their home because of a family crisis, poor health, or the loss of a job.”

The House passed H.R. 2895, The National Affordable Housing Trust Fund Act of 2007 to establish a national affordable housing trust fund to build or preserve 1.5 million homes or apartments over the next 10 years, without increasing government spending or the federal deficit.  The bill will initially allocate between $800 million and $1 billion annually directly to states and local communities and is funded through fees from Fannie Mae and Freddie Mac (in the House-passed GSE Affordable Housing Fund bill), and the increase in the number of FHA loans generated from the enactment of the Expanding American Homeownership Act (HR 1852).  Unlike the HOME program, the trust fund targets funds more for the construction of affordable housing and more for lower income families facing the greatest housing affordability challenges.

“Owning one’s home is a key to the American dream and I am proud of Congress for addressing this issue,” concluded Salazar.