Presidential Candidates Square off on Housing Issues

As the campaign for the White House was entering its final phase, NAHB asked the two presidential candidates — President George W. Bush and Massachusetts Senator John Kerry — a series of questions about their stands on important housing issues that will figure prominently in the decisions of American voters as they go to the ballot box in November.

Housing has been a major contributor to the nation’s economic growth in recent years. Looking ahead, how critical is housing’s performance to the nation’s economic recovery? What specifically would you do to ensure that housing production and home sales continue to lead the economy forward?

PRESIDENT BUSH: America’s economy is strong and getting stronger. In three short years, we have turned recession into recovery and moved into robust economic growth. Since August 2003, the economy has added nearly 1.5 million new jobs. And with interest and inflation rates low and consumer confidence high, our economy is the fastest growing of any major industrial country in the world.

Homeownership rates have soared to record levels in recent months, further evidence of a growing economy. By lowering taxes and laying the foundation for companies to create new jobs, we are contributing to the strength of the housing market and the economy as a whole. Tax relief has left Americans with more money to put toward buying a home or paying the monthly mortgage. In addition, I have pursued an aggressive homeownership agenda that includes the goal of creating 5.5 million new minority home owners by the end of the decade through a variety of proposals to assist low- and moderate-income families.

To meet this goal, I signed into law the American Dream Downpayment initiative, which authorizes $200 million a year to assist an estimated 40,000 low-income families with downpayment funds. In this year’s budget, I proposed the Zero Downpayment Initiative, which would eliminate the statutory requirement of a minimum 3% downpayment for Federal Housing Administration (FHA)-insured single-family mortgages for first-time home buyers. Preliminary projections indicate that the new FHA mortgage product would generate about 150,000 home buyers in the first year alone. I also proposed to triple funding for self-help programs that offer homeownership opportunities to families willing to contribute their own "sweat equity," and I have increased funding for housing counseling programs.

To increase the supply of affordable housing, I proposed a $2.54 billion, five-year Single-Family Affordable Housing Tax Credit for up to 50% of the project costs of rehabilitation and construction of affordable homes, provided they are offered to home buyers with incomes of not more than 80% of area median income. The tax credit would eventually result in an additional 200,000 affordable single-family homes becoming available through construction or rehabilitation.

When I launched my Homeownership Initiative, I challenged the entire real estate and mortgage finance industry to do their part to help close the gap that exists between the homeownership rates of minorities and non-minorities. In response, more than two dozen industry leaders made commitments to help achieve this goal.

My initiative is producing results. The latest Census estimate of the number of minority home owners is 1.6 million higher than it was when the initiative was launched. And homeownership rates are at record levels. Overall homeownership reached a record 69.2% in the second quarter of 2004, while minority homeownership is at a record high of 51%.

With more Americans employed and able to take advantage of home-buying opportunities, the housing market should remain a key contributor to America’s strength and prosperity.

SENATOR KERRY: Housing has been a pillar of strength for our economy, even while many other industries have been experiencing difficulties. We must ensure that our housing sector remains strong while we work to create new jobs and growth in our economy.

As Ranking Member of the Senate Banking Committee’s Housing Subcommittee for a number of years, and as a current member of the Senate Finance Committee, I understand the important role housing plays in developing our economy. That is why I have worked to promote the whole spectrum of housing opportunities, including: the preservation of existing affordable housing; the construction of new affordable housing; protecting and expanding the Low Income Housing Tax Credit; introducing legislation to increase homeownership through the rehabilitation of existing homes and the construction of new homes; protecting and expanding the multifamily and single-family FHA programs; and producing elderly and assisted housing.

John Edwards and I will strengthen the economy while keeping interest rates lower by restoring fiscal discipline and putting sound economic policies in place.  Our plan will help encourage homeownership and result in a sustainable boost to the housing market.

To see how the candidates responded to the remaining questions posed by NAHB please visit the August 30, 2004 edition of Nation's Building News Online. [ return to top ]