For Immediate Release
Office of the Press Secretary
June 15, 2002
President Focuses on Home-Ownership in Radio Address
Radio Address by the President to the Nation
Policy in Focus: Home-Ownership
THE PRESIDENT: Good morning. Owning a home lies at the heart of
the American dream. A home is a foundation for families and a source
of stability for communities. It serves as the foundation of many
Americans' financial security. Yet today, while nearly three-quarters
of all white Americans own their homes, less than half of all African
Americans and Hispanic Americans are homeowners. We must begin to
close this homeownership gap by dismantling the barriers that prevent
minorities from owning a piece of the American dream.
The single greatest hurdle to first time homeownership is a high
down payment requirement that can put a home out of reach. So my
administration is proposing the American Dream Down Payment Fund. When
a low-income family is qualified to buy a home, but comes up short on
the down payment, the American Dream Down Payment Fund will help
provide the needed funds. We estimate that this fund will open the
door to homeownership for 40,000 low-income families annually.
A second obstacle to minority homeownership is a lack of affordable
housing. To encourage the production of single-family homes for sale
in neighborhoods where affordable housing is scarce, my administration
is proposing a single-family affordable housing credit. Over the next
five years, this will provide developers nearly $2.4 billion in tax
credits for building affordable single-family housing in distressed
areas. These credits will make 200,000 new homes available over its
first five years to low-income purchasers.
A third major obstacle to minority homeownership is the complexity
and difficulty of the purchasing process. So we're stepping up our
efforts to better educate first-time home buyers. Consumers need to
know their rights and responsibilities as home buyers. Education is
the best protection for families against abusive and unscrupulous
lenders. Financial education and housing counseling can help protect
home buyers against abuses, greatly improve the loan terms they are
offered, and help families get through tough times with their homes
intact.
Through these important initiatives, we can help thousands of
American families live the kinds of lives they had once only dreamed
about. But government action isn't enough. We need to energize and
engage the private sector, as well. That is why I have challenged the
real estate industry leaders to join with the government, with
non-profit organizations, and with private sector financial
institutions in a major nationwide effort to increase minority
homeownership.
My approach to broadening homeownership focuses on empowering
people to help themselves, and to help one another. These important
initiatives will accomplish their purpose because Americans, working
together and taking responsibility for one another, will make this
great country even greater.
The strength of America lies in the honor and the character and
goodwill of its people. When we tap into that strength, we discover
there is no problem that cannot be solved in this wonderful land of
liberty.
Thank you for listening.
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