George W. Bush 2000 On The Issues
Homeownership
Governor Bush believes
homeownership is at the heart of the American Dream. However, the
homeownership rate among low-income families and minorities lags behind
the national average. Therefore, to increase opportunities for
homeownership, Governor Bush will permit government-subsidized renters
to aggregate up to a year’s worth of rental vouchers to fund the down
payment on a home. He will also establish a $1 billion “American
Dream Down Payment Fund” to provide matching grants to lenders to help
an additional 650,000 low-income families finance the purchase of a
first home. Finally, Governor Bush will provide $1.7 billion in
investor-based tax credits to encourage the rehabilitation or
construction of new, affordable homes in distressed communities.
Governor Bush’s Objectives
Expand Opportunity: Governor Bush believes that homeownership
is central to the health of the U.S. economy and the wealth of families.
Housing accounts for more than 22 percent of U.S. GDP and 21 percent of
all household wealth. However, despite a record homeownership
rate, the rates for low-income households (52 percent) and minority
households (47 percent) are still well below the national average of 67
percent. The chief obstacle to homeownership is the inability of
many families to finance the down payment and closing costs. Governor
Bush will work to tear down this – and other – obstacles to
homeownership and, thus, to the middle class.
Increase the Supply of Affordable Homes: Many distressed
communities lack a sufficient supply of affordable homes. One of
the biggest obstacles to revitalizing these communities is the gap
between the cost of acquiring and rehabbing a home or constructing a new
home and the low market prices for homes in distressed areas. Governor
Bush believes the government should create incentives for private
developers to bridge this gap.
Maintain Local Control of Housing: Housing is a local issue and a
national priority. Local government and communities must have
local control and flexibility with federal resources. Governor
Bush believes the federal government should continue to enforce
anti-discrimination laws and maximize the opportunity for homeownership
for all Americans.
Governor Bush’s Homeownership Proposals
Governor Bush’s Homeownership Plan has 3 objectives:
1. To Increase Homeownership Opportunities for Low-income Working
Families, Governor Bush will:
- Reform the Department of Housing and Urban Development’s Section
8 rental voucher program to allow recipients to aggregate up to
one year’s worth of rental vouchers to use toward the down payment
and closing costs associated with the purchase of a first home.
- Establish the “American Dream Down Payment Fund” to provide
$1 billion over five years to match down payment assistance provided
by banks on a 3 to 1 basis up to $1,500 per family. The
fund will be administered by state housing agencies and should help
over 650,000 first-time low-income homebuyers.
2. To Increase the Supply of Affordable Single Family Housing,
Governor Bush will:
- Establish the “Renewing the Dream” program to provide $1.7
billion of investor-based tax credits over five years to states to
create affordable single family housing. The program will
provide investors with a tax credit of up to 50 percent of project
costs to rehabilitate existing abandoned housing or create new
single-family housing in low-income urban and rural neighborhoods.
3. To Remove Regulatory Barriers to Affordable Housing, Governor
Bush will:
- Identify and remove federal regulations that increase the cost
of buying and building housing. He will also make an
existing federal clearinghouse on local regulations more accessible
to local communities.
Source: George W. Bush for President 2000 Web Site
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