H. CON. RES. 415, RECOGNIZING NATIONAL HOMEOWNERSHIP MONTH AND THE IMPORTANCE OF HOMEOWNERSHIP IN THE UNITED STATES -- HON. JANICE D. SCHAKOWSKY (Extensions of Remarks - June 21, 2002)

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HON. JANICE D. SCHAKOWSKY OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Friday, June 21, 2002

Ms. SCHAKOWSKY. Mr. Speaker, the House of Representatives passed a resolution that recognizes National Homeownership Month. Democrats and Republicans are united in their support for homeownership. However, we should not fool ourselves by claiming that this resolution is going to solve our affordable housing crisis.

We need to back up our words with action. Housing is not a top priority of this House or the Administration. HUD provides down payment assistance through several of its programs, yet without sufficient resources HUD will not be able to accomplish its homeownership goals. In fact in real dollars, HUD's budget is one third of what it was during the Ford administration. This is unacceptable.

Yesterday the Financial Services committee marked-up the ``Housing Affordability for American Act of 2002.'' Several members of the majority voted against an amendment to create a national affordable housing trust fund. The approved amendment creates a trust fund that utilizes FHA surplus funds. By creating a housing trust fund we can provide the necessary resources to build and preserve 1.5 million units of rental housing over the next 10 years.

Also, predatory lending continues to be a serious problem for homeowners. The Coalition for Responsible Lending estimates that homeowners lose $9.1 billion annually due to predatory loans. Predatory lending is especially a problem in the subprime market. People who have trouble getting access to conventional mortgages often use the subprime market for mortgage assistance.

Predatory lenders disproportional prey on the elderly and minorities. In 2000, HUD completed a study that found that borrowers in upper income African American neighborhoods, who would easily qualify for conventional, low rate loans, were twice as likely as homeowners in low-income white neighborhoods to receive subprime refinance loans. In Chicago the number of high interest loans rose 3,685 between 1993 and 1999. To combat this problem, I and several of my colleagues have introduced anti predatory lending legislation. Regrettably, none of our bills have been given consideration by the Republican House leadership. Simply supporting homeownership is not enough. We must act to make sure the people are able to keep their homes as well.

Homeownership is expensive and it is difficult for people with low incomes to own a home. People in Chicago and across the country need affordable housing whether it is a home or an apartment. In Chicago, we're short 150,000 units of affordable housing. Nationally, there has been a 37 percent increase in the number of people seeking emergency shelters in the past year and five and a half million people are facing the worst housing crisis in the United States. That is why I have introduced H.R. 2999 ``The First Things First Act.'' My legislation puts tax breaks for the rich on hold until we address our nation's housing crisis and other critical needs. This resolution is only effective if we take strong actions to make affordable housing a reality for America's families.
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