AMERICANS DESERVE AFFORDABLE HOUSING

Despite the record levels of homeownership we enjoy today, the American Dream is still out of reach for millions. The culprit: affordability. The National Association of Home Builders estimates that one-half million households fail to qualify for a mortgage on a typical new home for every $1,000 increase in sales price. Many other families are forced to purchase homes farther from their jobs and endure long commutes. In many high cost urban markets, our uniformed public employees are commuting 100 miles or more every day.

That is unacceptable, and Americans who live in high-cost areas agree. New York City and Nassau/Suffolk are two of the most expensive housing markets in the nation, ranking 148 and 107 respectively in NAHB’s latest Housing Opportunity Index. According to a survey conducted for NAHB, nearly three of every four likely voters in New York favor federal legislation that would help police officers, fire fighters, teachers and other uniformed municipal workers purchase a home in the communities where they work.

What is the remedy? A key factor in the cost of a new house – which rose from a median of $120,000 in 1989 to $160,000 in 1999 – is overregulation at all levels of government. In fact, layers of excessive and unnecessary regulation by federal, state and local government can add between 20 and 35 percent to the cost of a home.

LIBI strongly supports removing regulatory barriers that affect housing affordability, and played a major role in a legislative effort aimed at doing just that. The legislation, “The Housing and Economic Opportunity Act of 2000,” was adopted by an overwhelming vote of 417 to 8 in the House earlier this year. Rep. Rick Lazio (R-N.Y.), chairman of the Housing and Community Opportunity Subcommittee, was a lead sponsor of the legislation. Companion legislation has been introduced by Robert Bennett (R-Utah) and Ron Wyden (D-Ore.) in the Senate, where the “Promoting Housing Affordability for Working Families Act” awaits consideration by the Banking Committee.

Both the House and Senate bills include the following provisions to expand homeownership opportunities:

 • A requirement that all proposed federal regulations with a significant impact on housing     include a housing impact analysis;
 • An authorization for grants to states and local governments to assist these entities in    developing and implementing barrier-removal strategies;
 • A requirement that jurisdictions otherwise eligible for Community Development Block Grants     certify that they are making a good-faith effort to reduce barriers to affordable housing;
 • A requirement that jurisdictions otherwise eligible for Community Development Block Grants     certify that they are making a good-faith effort to reduce barriers to affordable housing;
 • Creation of a Regulatory Barriers Clearinghouse within the Department of Housing and Urban     Development to collect and disseminate information on the prevalence of regulatory     barriers and their effects on the availability of affordable housing as well as successful     barrier removal strategies; and
 • Creation of a new homeownership option for uniformed municipal employees, particularly fire     fighters, police, nurses, maintenance and sanitation workers through down-payment and     closing-cost assistance.

These bills would help eliminate many of the regulatory barriers currently preventing people of all income levels from becoming homeowners. The strong, bipartisan support for this legislation in the House points to a simple conclusion: it’s time for America to help teachers, police officers, fire fighters and other public servants realize the dream of homeownership.