[Hpn] Congressman's Bill May Spur Issuance;Re: National Housing Trust Fund Bill

Morgan W. Brown morganbrown@hotmail.com
Thu, 28 Jun 2001 12:41:01 -0400


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-------Forwarded article-------

Found at:

http://bernie.house.gov/documents/articles/2001-06-28-housing-bondbuyer.asp

Published on JUNE 28, 2001 in the THE BOND BUYER

Congressman's Bill May Spur Issuance

by MATTHEW VADUM

Arguing that new federal legislation is needed to combat the nation's 
"severe housing crunch," Rep. Bernie Sanders, I-Vt., has introduced a bill 
that would create a new National Housing Trust Fund.

The bill, if enacted, could spur housing construction and housing bond 
issuance by providing funds to housing finance agencies and to the nonprofit 
housing community, sources said.

"There are millions of people in Vermont and throughout this country who are 
finding it extremely difficult to afford the escalating cost of housing even 
if they are working full time," said Sanders, a member of the housing 
subcommittee of the House Financial Services Committee. The trust fund, if 
established, could "triple the amount of affordable housing construction in 
this country next year," he said.

The proposed fund would pump billions of dollars into affordable housing, he 
said, and would be funded by using some of the surplus that is generated 
each year by the Federal Housing Administration, which is a branch of the 
U.S. Department of Housing and Urban Development. The bill's goal would be 
to encourage the creation of 1.5 million affordable housing units over the 
coming decade, said Sanders, who enjoys some notoriety as the sole 
self-described socialist in Congress.

Sanders' bill, cosponsored by Reps. Danny K. Davis, D-Ill., Barbara Lee, 
D-Calif., Stephanie Tubbs Jones, D-Ohio, and others, is strikingly similar 
to another bill introduced recently by Sen. John F. Kerry, D-Mass. Kerry's 
bill would divert $2 billion from the U.S. Treasury to a National Housing 
Trust Fund. This money would come from the annual earnings of the FHA's 
Mutual Mortgage Insurance Fund and Ginnie Mae, and would be used for 
affordable housing.

Kurt van Kuller, director of municipal research at Merrill Lynch & Co., said 
the bill could be "very bullish" for the housing bond market. "It sounds 
like an excellent way to bridge the gap" between market prices and what 
low-income families can afford to pay for housing, he said.

Greg Brown, association manager at the National Association of Local Housing 
Finance Agencies, stopped short of endorsing the bill, but said its was a 
good thing because the more lawmakers propose a housing production program, 
the more likely Congress will be to actually approve one.

Brown said he was concerned about bill provisions that would allocate some 
funding directly to state housing finance agencies, while forcing nonprofit 
groups and local HFAs to compete for funding. NALHFA would want to see the 
provision changed before agreeing to support the bill, he said.

---End of forwarded article---

Sanders Unveils National Affordable Housing Trust Fund Legislation: Workers 
In America Should Not Have To Sleep In Their Cars:

http://bernie.house.gov/documents/2001/06-27-2001.asp

~~~Hosted at:

Congressman Bernard Sanders: Vermont's Independent Representative:

http://bernie.house.gov/

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-------End of forward-------

Morgan <morganbrown@hotmail.com>
Morgan W. Brown
Montpelier Vermont USA


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