Cummings Votes to Ease Housing Crisis
Press Release
Cummings Votes to Ease Housing Crisis
Trust Fund Will Build or Preserve 1.5 Million Homes
Washington, D.C. - Today, Congressman Elijah E. Cummings (D-Md.), member of the Joint Economic Committee, joined his colleagues to pass H.R. 2895, the National Affordable Housing Trust Fund Act of 2007, establishing a national affordable housing trust fund to build or preserve 1.5 million homes over the next ten years, without increasing the federal deficit.
"Since the beginning of the year, we have watched predatory subprime lending practices employ a negative ripple effect on our entire economy, forcing hardworking families into homelessness every day," Congressman Cummings said. "Today's bill is just one of many efforts to help ease the fallout of the subprime crisis by offering affordable housing and helping these families save the American Dream of home ownership from becoming a nightmare."
There are currently approximately 750,000 people homeless on any given night, and one in seven (17 million) households is spending more than 50 percent of its income on housing.
H.R. 2895 addresses the need for increased affordable housing by establishing a trust fund to allocate between $800 million and $1 billion annually directly to states and local communities, without increasing government spending or the federal deficit. The fund targets lower-income families facing the greatest housing affordability challenges, requiring all monies to be used for families with incomes below 80 percent of state or local median income. Additionally, at least 75 percent of the funds must be allocated to families with incomes below 30 percent of the state or local median.
The fund also allows monies to be used for construction, rehabilitation, acquisition, preservation incentives, and operating assistance to facilitate affordability.
"Today, the 110th Congress has continued working to fulfill its promise to move America in a new direction by assuring that adequate affordable housing is available for families who have lost their homes," Congressman Cummings said. "The Affordable Housing Trust Fund will help reduce homelessness and provide more Americans with the opportunity to live in safe housing conditions."
Source