One Strike and You're Out! Act of 2007

Mr. Speaker, I wish to thank the gentleman from Indiana (Mr. Donnelly) for yielding time to me. I also want to commend him for his leadership.

I rise in strong support of H. Res. 477, a resolution recognizing the goals and ideals of National Homeownership Month, which falls in June of each year. I also want to commend my colleague on the other side of the aisle, the gentleman from California (Mr. Gary G. Miller), for introducing the resolution and for working with me on its language.

Owning a home is a fundamental part of the American Dream and is the largest personal investment many families will ever make. Homeownership provides economic security by increasing the stake residents have in their communities, including local schools, civic organizations, community-based organizations, and churches.

Improving homeownership opportunities requires the commitment and cooperation of the private and public sectors, including the Federal Government and State and local governments. Our current laws encourage homeownership to a significant degree, but need to be updated and augmented so that they will continue to promote homeownership in the future.

We need to do everything in our power to ensure that potential home buyers and current homeowners do not become victims of predatory lenders, as has been the case in recent times.

To improve the affordability, availability and quality of housing in America, I co-founded and I am currently the chairman of the Congressional Rural Housing Caucus. The caucus continues to increase in number as more and more Members of Congress realize not only the importance of homeownership in urban dwellings, but those in rural America.

To increase homeownership, I introduced H.R. 1980, the Housing Assistance Counsel Authorization Act. It authorizes $10 million for housing assistance counsel in fiscal year 2008 and $15 million in fiscal year 2009-2014.

HAC, a nonprofit corporation, is the only national housing assistance group that specializes in rural areas and small towns. The House Committee on Financial Services has also held hearings on the bill and reported it favorably to the floor of the House of Representatives. A companion measure has been introduced in the Senate.

Mr. Speaker, I also introduced H.R. 1982, the Rural Housing and Economic Development Improvement Act. The bill authorizes $30 million for the U.S. Department of Housing and Urban Development's RHED program in fiscal year 2008 and $40 million for fiscal years 2009-2013. This bill has also been reported favorably on the floor of the House of Representatives.

I want to take this opportunity to thank Financial Services Chairman Barney Frank, the ranking member; Spencer Bachus; Chairwoman Maxine Waters; and the ranking member, Judy Biggert; and all their staffs for guiding the HAC and RHED legislation through our committee.

I have also authored a letter to the Housing Appropriations Committee requesting the funding for several programs that the administration's budget

would either eliminate or reduce their funding. I include for today's Congressional Record a copy of that letter.

Again, June is National Homeownership Month. I strongly support the goals and ideals of National Homeownership Month and recognize the importance of homeownership in building strong communities and families.

Congress of the United States,

Washington, DC, March 16, 2007.

Hon. Rosa DeLauro,

Chairwoman, Subcommittee on Agriculture, Rural Development,

Food and Drug Administration and Related Agencies

Appropriations, Washington, DC.

Dear Chairwoman DeLauro: There is a housing crisis in rural

America. We are requesting that you restore funding for the

following USDA rural housing programs in fiscal year 2008:

Section 502 direct homeownership loans, $1.25 billion;

Section 515 rental housing loans, $100 million; Section 523

self-help housing, $60 million; and Section 514/516 farm

labor housing, $50 million each.

The Administration's Fiscal 2008 budget takes square aim at

these programs. The budget cuts spending for rural housing by

some 71 percent and eliminates over $1.3 billion in rural

housing lending assistance targeted to low income families.

If the Administration's budget is approved, it will be the

first time in 40 years that the Agriculture Department has

not offered direct lending assistance to help low income

rural families improve their housing conditions.

According to the Economic Research Service of the US

Department of Agriculture some four million rural families

live in ``housing poverty'', a multidimensional indicator

that combines measures of economic need, housing quality and

neighborhood quality. What is more, the 2000 Census revealed

that 5.5 million people, one-quarter of the non-metro

population, face cost overburden and 1.6 million non-metro

housing units are either moderately or severely substandard.

As you know, the President's budget calls for the

elimination of the Section 502 Direct Loan Program, which is

one of the nation's most responsible loan programs for rural

communities. Under the present Section 502 program, borrowers

may obtain loans for, the purchase or repair of new or

existing single-family housing in rural areas. Borrowers with

income of 80 percent or less of the area median may be

eligible for the direct loans, and may receive interest

credit to reduce the interest rate to as low as 1 percent.

The loans are repayable over a 33-year period. In a given

fiscal year, at least 40 percent of the units financed under

this section must be made available only to very low-

income individuals or families. The Section 502 direct

loan program is an extremely efficient program which

results in a total cost to the Federal government of only

$10,000 per loan. There currently is a backlog of more

than $3.4 billion in loan applications for this program.

We encourage you to provide $1.25 billion in funding for

Section 502 in fiscal year 2008.

The President's budget also proposes to eliminate funding

for the Rural Housing Service Section 515 program. The

Section 515 program plays a critical role in facilitating

affordable rental housing in rural areas, by providing funds

both for new construction and for the repair and preservation

of RHS Section 515 affordable rental housing units. The

Section 515 program is the only authorized Federal program

that provides direct loans for multi-family housing in rural

areas. Units built under the 515 program provide affordable

rental housing for persons of low, very low, and moderate

incomes living in rural areas, many of whom are elderly and

disabled. The 515 program also provides funding for the

repair and rehabilitation of existing 515 affordable rental

housing units, in order to encourage owners to remain in the

program and serve lower income families in rural areas. We

encourage you to provide $100 million in funding for Section

515 in fiscal year 2008.

The President's budget proposes $9.75 million in funding

for Section 523 Self Help Housing which is a reduction of

over 70%. Self-Help Housing makes homes affordable by

enabling future homeowners to build their homes themselves.

Section 523 Self Help Technical Assistance Grants provided to

qualified nonprofit and local government organizations to

provide technical assistance to low and very low-income

families who are building homes in rural areas in conjunction

with the Section 502 Mutual Self-Help Housing Loan Program.

The grant funds are used to assist eligible families in

applying for Section 502 loans, provide pre-purchase

homebuyer education, and supervise construction of the

housing by the family.

Due to the tremendous success in serving minority

households, doubling self help housing is one of the

element's of USDA's `Five Star Commitment to Increasing

Minority Homeownership'. But despite the proven success of

the self-help model and the momentum that it has built over

recent years, budgetary restrictions have made it difficult

for RHS to keep pace with demand for Section 523. In fiscal

year 2007, a total of $3 million was made available for self-

help housing grants. However, the total necessary for

extending grants for performing programs that expire in 2008

is $60 million. We encourage you to provide $60 million in

funding for Section 523 in fiscal year 2008.

The President's budget reduces farm labor housing funding

in Section 514 Farm Labor Housing Loans and in Section 516

Farm Labor Housing Grants by two thirds. As you know, there

is a tremendous need for assistance for farm worker housing.

Migrant and seasonal farm workers are some of the nation's

most poorly housed populations. Farm workers and their

families are some of the poorest yet least assisted people in

the nation. Approximately 61 percent of farm workers earn

incomes below the poverty level. 60 percent of their

households are the ones who are also more susceptible to

live below the poverty threshold which is six times the

national rate. However, less than 20 percent of farm

worker households receive public assistance in any form.

We encourage you to provide $50 million in funding for

Section 514 and 516 in fiscal year 2008.

For these reasons, we urge you to reject the

Administration's Rural Development budget. The Administration

has already made substantial cuts in federal rural

development spending. Over the past 6 years, federal spending

on rural housing and community development programs have been

reduced by more than 20 percent. We strongly urge you to

reject the reductions proposed in the Fiscal 2008 budget and

provide adequate funding for federal rural housing and

community development programs.

Sincerely,

Ruben Hinojosa, Barney Frank, Rick Renzi, Paul W. Hodes,

Charles A. Wilson, Ron Paul, Emanuel Cleaver, Bennie G.

Thompson, Nancy Boyda, Michael E. Capuano, Maxine

Waters, Tim Holden, Corrine Brown, Carolyn B. Maloney,

Luis V. Gutierrez, Peter DeFazio, Darlene Hooley, Earl

Blumenauer, Julia Carson, Geoff Davis, Lois Capps, Tom

Allen, Mazie K. Hirono, Steve Kagen, John T. Salazar,

Neil Abercrombie, Michael H. Michaud, Phil Hare, Rick

Larsen, Doris O. Matsui, Dan Boren, Lincoln Davis.

Mr. Speaker, I am pleased to rise in strong support of this resolution, which expresses the commitment of Congress to fostering increased homeownership opportunities in this country.

Earlier this month, President Bush designated June as National Homeownership Month, as he has done for the past 6 years.

I introduced H. Res. 477 to complement this designation and to elevate the discussion of housing opportunities in this Nation. This resolution conveys the support of the House for the goals and ideals of National Homeownership Month and reiterates the importance of homeownership in the United States.

I would like to thank the leadership on both sides of the aisle for bringing this important resolution to the floor today.

Importance of Homeownership in America

For millions of Americans in communities all across this country, owning a home is a basic part of realizing the American dream.

Aside from helping Americans achieve their dreams, homeownership also helps to build neighborhoods and strengthen communities. As millions of families have demonstrated, increased homeownership helps to build better communities, and better communities help to build a better America. Families who own homes have a vital stake in their communities, a stronger interest in the safekeeping of their neighborhoods, and a deeper commitment to the quality of their schools and public services.

Today, America's housing markets are the envy of the world. We enjoy the lowest interest rates and the highest homeownership rates of any developed nation. With the national homeownership rate reaching 70 percent, we have had success in promoting housing opportunities. However, we must still do more. We must work to help extend housing opportunities to all Americans who do not currently enjoy the benefits of homeownership.

Role of Congress

Our job in Congress, as responsible policymakers, must be to ensure that government helps, rather than impedes, homeownership in America. When I came to Congress, I made it my top priority to highlight federal policies that have hindered the availability of housing in this country and to find ways for government to positively impact homeownership in America. While we have done much to help Americans become homeowners, we must do more. We must remove the hurdles and needless regulation that keep homeownership out of the reach of some families in America.

And oftentimes in government, we pass policies and laws and regulations that sound really good, and when they are implemented they do the exact opposite of what we intend them

to do. Unfortunately, this trend is very apparent in our housing policies.

Congressional Policies

So far in this Congress, I am pleased that we have continued our important work of promoting responsible homeownership policies for our country.

Last month, the House passed the Federal Housing Finance Reform Act to reform Government Sponsored Enterprises (GSEs) that have been at the forefront of creating affordable housing opportunities for American families. A new, credible, independent regulator with appropriate supervisory powers would reaffirm that the GSEs are adequately governed and will continue to provide reasonably-priced funds for housing finance. This bill ensures adequate regulation of GSEs while not adversely affecting the ability of the GSEs to fulfill their housing finance mission.

Another important needed reform to improve homeownership opportunities across our country is to the Federal Housing Administration (FHA). As the private sector mortgage market has become more efficient, the FHA program's inflexible rules and requirements have left it virtually irrelevant as a financing option. Not only can FHA reform provide a viable alternative for families seeking to purchase a home, but it can also help those facing uncertainty about being able to keep their current home.

To make the FHA program a viable mortgage option, we must ensure that the program's products are available across the country and that they meet the needs of borrowers. This includes not only eliminating the geographic barriers to utilization of the program in high cost areas, but also facilitating the purchase of entry-level homes, including condos and manufactured housing. The Committee on Financial Services passed an important FHA reform bill in May and I am optimistic we may consider it on the floor soon.

Conclusion

With June designated as National Homeownership Month, there is no better time to discuss these issues. Now more than ever Congress must continue to cultivate an environment in which more Americans may turn the dream of homeownership into a reality.

I am very pleased today that the President has made it a priority to promote affordable housing and homeownership, even while our Nation faces many other challenges at home and abroad. Along with Secretary Jackson and his team at HUD, the President has taken a leading role in finding new and innovative ways to expand homeownership in all areas of this country.

Fortunately, here in Congress, we have leaders from both sides of the aisle who are deeply committed to increasing housing opportunities for more Americans. I want to commend Chairman Frank, Ranking Member Bachus, Housing Subcommittee Chairwoman Waters, and Ranking Member Biggert for their work in pursuing policies to address affordable housing in the United States.

I look forward to continuing this relationship in the l10th Congress so that we will have success in the months and years to come in increasing homeownership nationwide.

In closing, it is clear that increased homeownership fosters stronger communities and a better America. National Homeownership Month is a reminder of the significance of housing issues in America. I urge all of my colleagues to support this resolution and recognize the importance of homeownership in the United States.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H. Res. 477 and am pleased to join with my friend from Indiana and am delighted that we are taking time on the floor today to commemorate homeownership in America.

Recognizing the many benefits of owning a home, the President designated June as National Homeownership Month as he has done for the past 6 years. To complement this designation, H. Res. 477 was introduced by the gentleman from California (Gary G. Miller) to recognize that designation and the importance of homeownership in the United States.

Owning a home is a fundamental part of the American Dream, with economic security and hard work being rewarded. Homeownership is much more than knowing that one has a roof and four walls to shelter one's family. It is the symbol of the American Dream, and it forms the bedrock of our communities.

Many of my colleagues celebrate the designation of this month as National Homeownership Month because in America every citizen, regardless of race, creed, color, or place of birth has the opportunity to own a home of their own.

Today, the national homeownership rate in the United States has reached a record high, about 70 percent; and more than half of all minority families are homeowners. While many gains have been made, minority homeownership rates still lag. With minority households expected to account for two-thirds of household growth over the coming decade, improving the ability of such households to make a transition to homeownership will be an important test of our Nation's capacity to create economic opportunities for minorities and immigrants and to build strong, stable communities.

Buying a home is the largest personal investment most families will ever make. For the vast majority of families, the purchase of a home represents the path to prosperity. A home is a tangible asset that builds equity, good credit, borrowing power, and overall wealth. Not only does homeownership provide economic security for building wealth over time; it also strengthens and builds communities. Homeownership creates community stakeholders and inspires civic responsibility. People who own a home tend to be more active in charities, churches, neighborhood activities and more likely to vote and get involved with their community's growth, safety and development.

Further, families owning a home offer children a stable living environment, influencing their personal development in many positive, measurable ways both at home and in school.

Without homeowners, neighborhoods, schools and local businesses suffer. Homeownership helps fuel the economy. This happens mostly through people who spend money for home improvements.

I hope Congress will continue to explore new ways to put people on the path to homeownership so more Americans can realize its benefits.

In closing, it is apparent that the Federal Government, consumers and the housing industry are linked by our mutual goal of creating housing opportunities for more Americans. And although significant strides have been made, we still have much more work to do to achieve together for the American people, and our best hope of being successful is to work in close concert with each other.

As Congress considers future action to make homeownership more secure and available, we need to take care not to hamper the market's ability to provide opportunities for homeownership, and that way we can continue to open our communities and neighborhoods to new opportunities for growth and prosperity.

The resolution before us, H. Res. 477, recognizes the importance of homeownership in America and dedicates the House of Representatives to fostering an atmosphere conducive to community development and increased homeownership opportunities. Congress has a real opportunity here to forge a better America, an America where homeownership and security abounds. I know we all look forward to continue to work to further the American Dream, and I hope my colleagues will join with me and my colleague, Mr. Donnelly, and join in supporting this important resolution that does just that.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I simply rise and urge the passage of House Resolution 477.

I have no other speakers seeking recognition and, with that, yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 477) recognizing National Homeownership Month and the importance of homeownership in the United States.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on the legislation, and to insert extraneous material thereon.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H. Res. 477 introduced by Congressman Gary G. Miller of California. This resolution recognizes the importance of National Homeownership Month, which the President designated as June of this year.

Homeownership is one of the fundamental building blocks of our society. And it plays a fundamental role in achieving the American Dream. It helps to provide families with economic security and helps to build strong communities.

The national homeownership rate in the United States has reached a record high of almost 70 percent. This is the result of the hard work of both public and private sector organizations, nonprofit groups, and Federal, State and local government working together for a common cause: to ensure that families have a stable living environment and are in a supportive community.

Homeownership is a crucial indicator of our economic health. I believe that ensuring affordable homeownership for hardworking Americans is one of the most important tasks we have here in Congress. We must work together to encourage more opportunities for homeownership so that buyers are able to choose a housing option that meets their needs.

Owning a home helps families build financial stability, and it puts them on sound financial footing so they are able to invest in things like college and saving for retirement. This not only affects every American family; it allows our economy to prosper. It is important to ensure that while we are promoting homeownership, and that we are preparing homeowners for the responsibility of maintaining and paying off their home, that they understand this process as well.

The rise in predatory lending and in subprime loans has contributed significantly to the high rate of foreclosures in States like Indiana, my home State. Congress must work to ensure a level playing field for home buyers to purchase a home with a mortgage that they can work with and be able to pay. I urge Members to vote in favor of this resolution.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 5 minutes to the gentleman from Texas (Mr. Hinojosa).

Mr. Speaker, I have no further requests. I want to thank my good friend, my colleague from Illinois, for his assistance in this. It is a terrific resolution. We look forward to its success.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I rise today in strong support of H. Res. 477, recognizing the goals and ideals of National Home Ownership Month. I'd like to thank my colleague from California Congressman Gary Miller for introducing this resolution.

Mr. Speaker, home ownership has long been acknowledged as a vehicle to build personal wealth, a source of pride and motivation, provided a sense of security to its owners, helped stabilize our neighborhoods and families and a tool that drives the Nation's economic engine.

Unfortunately, in recent years the goals of home ownership have proven elusive for many Americans. According to a recent report by the Center on American Progress, nearly one in three Americans is low- income, with an income below twice the poverty line. A further 1 in 20 Americans lives in extreme poverty, with an income below half of the poverty line.

That's why I have often joined with my colleagues in the House to call for the provision of adequate and affordable housing and a strong, safe and stable community for all Americans particularly those of low- and moderate income individuals and families and members of minority populations.

Furthermore, in the 110th Congress, I am sponsoring three housing bills: H.R. 172--Community Partners Next Door Act; H.R. 173--One Strike and You're Out Bill; and H.R. 174--Public Housing Drug Elimination Program. These bills take steps to address housing affordability, neighborhood safety and fairness in the enforcement of local and Federal statutes.

Mr. Speaker, we have a responsibility to ensure that the gap between the rich and the poor is narrowed and that all Americans have the opportunity to pursue the American dream.