MARTINEZ ENDORSES AMERICAN DREAM LEGISLATION TO INCREASE HOMEOWNERSHIP AMONG
LOWER INCOME FAMILIES
House & Senate bills help meet President's goal of adding 5.5 million more
minority homeowners
WASHINGTON - A bi-partisan bill supporting the Bush Administration's American
Dream Downpayment Initiative will open the door of homeownership to 40,000
more low-income and minority families by helping to offset the upfront costs
of buying a home. That was the message Housing and Urban Development Secretary
Mel Martinez delivered today in testimony to members of the House Financial
Services Committee.
Rep. Katherine Harris is co-sponsoring legislation along with 35 other House
members to authorize the downpayment assistance program. Sen. Wayne Allard is
introducing similar legislation today in the Senate. This year, Congress appropriated
$75 million to fund the American Dream Downpayment Initiative and President
Bush is proposing another $200 million in fiscal year 2004. Qualifying families
will receive an average of $5,000 to be used toward downpayment and closing
costs.
"The downpayment is one of the major barriers to homeownership for many families,"
said Martinez. "This bill will help lower income and minority families realize
the American dream. Not only will the bill create more homeowners, but it will
help build and strengthen entire communities."
Allard said, "When more Americans share in the dream of owning their own home,
we all win. Homeownership represents a path to prosperity that leaves people
feeling more invested in their own neighborhoods and creates safer, more stable
communities."
"The American Dream Downpayment Act will provide thousands of men, women, and
children across our nation with the dignity, stability and economic empowerment
of homeownership. I look forward to helping President Bush and Secretary Martinez
achieve this visionary means of fulfilling the moral imperative of extending
quality, affordable housing to every American," said Harris.
Census figures indicate that while nearly 70 percent of all American households
are homeowners, less than half of African-American and Hispanic families own
their own homes. Intent on closing this homeownership gap, President Bush issued
the "Homeownership Challenge" to increase minority homeownership by 5.5 million
by the end of the decade.
The American Dream Downpayment Initiative will be administered under
HUD's HOME Investment Partnerships Program (HOME). Since its inception,
the HOME Program has played a vital role in addressing the shortages of affordable
rental housing and homeownership in communities nationwide. For more information
about the American Dream Downpayment Initiative, visit www.hud.gov/news/releasedocs/addfund.cfm.
Last year HUD released a report that concludes adding 5.5 million minority
homeowners will stimulate an additional $256 billion in benefits to the housing
sector of the U.S. economy. In addition, HUD created The Blueprint for the
American Dream Partnership, a coalition involving every segment of the housing
industry to build broad-based support of the President's goal of increasing
homeownership opportunities for minority families. HUD and its partners hope
to meet the President's challenge by: