|
Housing
Policy
The
US economic prosperity has received much impetus from
policies that have been promoted home ownership. Programs
including the Homestead Act, the GI bill and the creation of
federal mortgage credit institutions have made it possible
for Americans of all races, creeds, color and sex to become
homeowners. It is in the national interest to encourage home
ownership for several reasons.
Programs
like these have provided a tremendous return on our
government and taxpayer’s investment. For most homeowners
home equity represents a substantial portion of their net
worth. For most homeowners the largest portion of that home
equity is due to appreciation. Accumulation of substantial
net worth through home ownership means homeowners are less
likely to need financial support from federal or state
agencies either before or after their retirement.
In addition home ownership creates substantial social
benefits. Home ownership contributes to a sense of community
and social stability, and is a substantial contributor to
the growth and stability of the middle class. Homeowners are
more likely to feel a vested interest in their communities,
and support efforts to make the communities better places to
live for all residents. For these reasons strongly pro home
ownership housing policies should be protected and expanded.
Our
nation should expand cost effective programs to assist all
except wealthy citizens to attain home ownership in the
earliest opportunity. Both the successes of the Homestead
Act and the GI bill should be reviewed for ideas for new or
modified programs that will better and more effectively
serve today’s citizens who would otherwise not be able to
own a home. For example, surplus federal cards and buildings
should be more fully utilized as potential vehicles for
moderate and low-income citizens. The HUD Homesteading
program should also be expanded.
We should avoid the creation of tax barriers to home
ownership, especially those barriers that make it more
difficult for those of low and moderate income to attain
home ownership. For this reason AHGA urges the repeal of the
tax on American Homeowners.
AHGA
testimony in opposition to the tax on American Homeowners.
A
national housing policy should also encourage and provide
incentives for middle class home ownership because such a
policy is a very cost effective allocation of economic
resources. At the same time the policy must recognize a need
to balance services to both middle and lower class citizens.
For example, federal mortgage credit institutions (FNMA,
GNMA and FHLMC) serve both audiences. They have both
statutory targets regarding service to low-income
multifamily housing needs and an obligation to seek to
return profits to shareholders (who, as a result of
increased participation in equity markets by the middle
class are increasingly likely to be homeowners). Both middle
and lower class homeowners mutually benefit from a balanced
approach by government-sponsored enterprises (GSEs). Funding
for GSEs should be expanded so that more loans can be made
to both classes of homeowners, which will enable GSEs to
both attain their statutory targets for assisting low-income
homeowners while simultaneously expanding the availability
of GSE services to middle class homeowners and returning
reasonable profits to homeowner and non-homeowner investors.
Both
HUD and nonprofit organizations such as AHF and AHGA and
community based agencies must work both to educate and
assist low and middle income homeowners so that our
nation’s investment in expanded home ownership creates the
maximum possible return on the taxpayers dollar. For that
reason federal and state agencies should expand their
fundraising or community-based agencies to provide
counseling services to renters and homeowners faced with
displacement, maintenance and other owner/occupancy issues.
These same organizations must also continue to educate the
executive and legislative branches of federal and state
governments to the need to support home ownership programs.
Government and nongovernmental organizations should also
focus on improving housing for the elderly and disabled and
assuring that housing policy discriminates against no
segment of the population. |