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And we’ve got to set priorities. And one of the key priorities is going to be inner-city America. Good schools and affordable housing will help revitalize our inner cities.
Another obstacle to minority homeownership is the lack of information. You know, getting into your own home can be complicated. It can be a difficult process. I had that very same problem. (Laughter and applause.)
Every home buyer has responsibilities and rights that need to be understood clearly. And yet, when you look at some of the contracts, there’s a lot of small print. And you can imagine somebody newly arrived from Peru looking at all that print, and saying, I’m not sure I can possibly understand that. Why do I want to buy a home? There’s an educational process that needs to go on, not only to explain the contract, explain obligation, but also to explain financing options, to help people understand the complexities of a homeownership market, and also at the same time to protect people from unscrupulous lenders, people who would take advantage of a good-hearted soul who is trying to realize their dream.
Homeownership education is critical. And so today, I’m pleased to announce that through Mel’s office, we’re going to distribute $35 million in 2003 to more than 100 national, state and local organizations that promote homeownership through buyer education. (Applause.)
And, of course, one of the larger obstacles to minority homeownership is financing, is the ability to have their dream financed. Right now, we have a program that all of you are familiar with, maybe our fellow Americans are, and that’s what they call a Section 8 housing program, that provides billions of dollars in vouchers to help low-income Americans with their rent. It encourages leasing. We think it’s important that we use those vouchers, that federal money to help low-income Americans go from being somebody who leases to somebody who owns; that we use the Section 8 program to not only help with down payment, but to help with continuing monthly mortgage payments after they’re into their new home. It is a - it is a way to help us meet this dream of 5.5 million additional families owning their home.
I’m also going to encourage the lending industry to develop a mortgage market so that this script, these vouchers, can regularly be used as a source of payment to provide more capital to lenders, who can then help more families move from rental housing into houses of their own.
These are some of the barriers that home owners face, potential home owners face, and this is what we intend to do about it. But like in a lot of our life, government can’t do everything. It’s impossible to provide every aspect of a national strategy, particularly in this case. And that’s why we need the help of private and nonprofit sectors in our country to help play a vital role in helping to meet the goal. Many of you here represent the nonprofit, as well as the private sectors of our economy and our country, and I want to thank you for your commitment.
Last June, I issued a challenge to everyone involved in the housing industry to help increase the number of minority families to be home owners. And what I’m talking about, I’m talking about your bankers and your brokers and developers, as well as members of faith-based community and community programs. And the response to the home owners challenge has been very strong and very gratifying. Twenty-two public and private partners have signed up to help meet our national goal. Partners in the mortgage finance industry are encouraging homeownership by purchasing more loans made by banks to African Americans, Hispanics and other minorities.
Representatives of the real estate and homebuilding industries, through their nationwide networks or affiliates, are committed to broadening homeownership. They made the commitment to help meet the national goal we set.
Freddie Mae - Fannie Mae and Freddie Mac - I see the heads who are here; I want to thank you all for coming - (laughter) - have committed to provide more money for lenders. They’ve committed to help meet the shortage of capital available for minority home buyers.
Fannie Mae recently announced a $50 million program to develop 600 homes for the Cherokee Nation in Oklahoma. Franklin, I appreciate that commitment. They also announced $12.7 million investment in a condominium project in Harlem. It’s the beginnings of a series of initiatives to help meet the goal of 5.5 million families. Franklin told me at the meeting where we kicked this office, he said, I promise you we will help, and he has, like many others in this room have done.
Freddie Mac recently began 25 initiatives around the country to dismantle barriers and create greater opportunities for homeownership. One of the programs is designed to help deserving families who have bad credit histories to qualify for homeownership loans. Freddie Mac is also working with the Department of Defense to promote construction and financing for housing for men and women in the military.
There’s all kinds of ways that we can work together to meet the goal. Corporate America has a responsibility to work to make America a compassionate place. Corporate America has responded. As an example - only one of many examples - the good folks at Sears and Roebuck have responded by making a five-year, $100 million commitment to making homeownership and home maintenance possible for millions of Americans.
There have been other steps that are being taken to close the homeownership gap. And you’ve heard some of the stories here today, people much more eloquent than me, to talk about what’s taking place on the front line of meeting this national goal.
The non-profit groups are bringing homeownership to some of our most troubled communities. And as you know, I’m a strong advocate of what I call the faith-based initiative. And the reason I am is because I understand the universal call to love a neighbor like you’d like to be loved yourself, and that includes helping somebody find a home.
One such example is the Enterprise Foundation, a national non-profit organization that provides assistance to grassroots homeownership organizations. Because of their work, as one example, 185 affordable homes will be available in the Baltimore neighborhood that was once so crime-ridden that people had written it off. Revitalizing neighborhoods is a real possibility if people put their mind to it. And at the same time, you’re helping people own a home in America.
And the faith-based community is doing some fantastic work when it comes to encouraging homeownership, whether it be financial counseling, or job training or other outreach services, to help people understand what it takes to buy a home.
And then there’s my friend Kirbyjon Caldwell. He not only provides counseling and job training, he actually decided to encourage a development of homes in the Houston area. People - low-income people are going to be able to more afford a home in Texas because of Kirbyjon’s vision and work. He’s answered the call of faith to help people help themselves and to help them realize dreams.
The other thing Kirbyjon told me, which I really appreciate, is you don’t have to have a lousy home for first-time home buyers. If you put your mind to it, the first-time home buyer, the low-income home buyer can have just as nice a house as anybody else. And I know Kirbyjon. He is what I call a social entrepreneur who is using his platform as a Methodist preacher to improve the neighborhood and the community in which he lives.
And so is Luis Cortes, who represents Nueva Esperanza in Philadelphia. I went to see Luis in the inner-city Philadelphia. Luis is - at least he was - he’s probably still there - in what one would call a tough neighborhood. There’s a lot of abandoned buildings. And I mean, beautiful old structures just empty. Luis had a dream to revitalize his neighborhood, starting with a good charter school, one that would work, one that would teach kids how to read and write and add and subtract.
But he also understood that a homeownership program is incredibly important to revitalize this neighborhood that a lot of folks had already quit on. I suspect one day we’ll all go back to Luis’ neighborhood and we’ll find first-time home owners there, and a good education system. And this will be the beginning of a - of a neighborhood revitalization in that part of Philadelphia, because there was vision and drive and hope for our fellow citizens.
So I want to thank you all for coming. I want to thank you for your determination to help close the minority homeownership gap. It’s an incredibly important initiative for this country. See, America is a good and generous country. It’s a great place. Part of it was to make sure that the dream, the American Dream, the ability to come from anywhere in our society and say, I own this home, is a reality - can be achievable for anybody, regardless of their status, regardless of their - of whether or not they - whether or not they think the dream is meant for them.
I mean, we can put light where there’s darkness, and hope where there’s despondency in this country. And part of it is working together as a nation to encourage folks to own their own home.
Again, I want to tell you, this is an initiative - as Mel will tell you, it’s an initiative that we take very seriously. We’re going to stay on it until we’re - until we achieve the goal. And as we all achieve the goal, we can look back and say, America is a better place for our hard work, our efforts and our desires for our fellow Americans to realize the greatness of our country.
Thank you for coming. May God bless your vision. May God bless America. (Applause.)
I hope this clears up where the financial crisis the US is currently in came from. that is to say, it came from republicans, most notably the current administration. republicans.