HUD
No. 03-001 Alan Gelfand (973) 622-7900 ext. 3105 |
For
Release Wednesday January 22, 2003 |
BUSH ADMINISTRATION SEEKS $2.3 MILLION INCREASE FOR AFFORDABLE HOUSING IN NEW JERSEY
Budget proposal would provide New Jersey communities $53.5 million
NEWARK, NJ - As part of President Bush's ongoing effort to
increase affordable housing and minority homeownership
in New Jersey,
Housing and Urban Development Secretary Mel Martinez today announced
a proposed increase of nearly $2.3 million for the Department's
HOME Investment Partnerships Program. The announcement is
part of the Bush Administration's fiscal year 2004 budget request
of Congress, a five-percent boost over current funding that would
provide New Jersey communities with $53,529,000 in funding.
Martinez also announced the President's spending plan will seek another $200 million for the American Dream Downpayment Fund to help an additional 40,000 lower income families nationwide to become first-time homeowners.
"This Administration is deeply committed to providing New Jersey communities with the resources they need to produce affordable housing and help individuals and families become homeowners," said Martinez. "We want to empower first-time homebuyers, particularly minorities and low-income families, to cross the threshold into the American Dream. We also want to make sure that affordable rental opportunities exist in neighborhoods across New Jersey."
Martinez further announced that the 2004 proposed budget will emphasize
breaking down regulatory barriers that impede the production of
affordable housing. HUD will create a new Office of Regulatory Reform,
which will commit
an additional $2 million next year on research
efforts to learn more about the nature and extent of these regulatory
obstacles. Through this office, researchers will develop the tools
needed to measure and ultimately reduce the
effects of excessive
barriers that restrict the development of affordable housing at
the local level.
The flexible HOME Program has played an integral role in addressing
the shortages of affordable housing in
communities nationwide. Participating
jurisdictions are encouraged to partner and leverage resources with
nonprofits, developers, private lenders and contractors. These partnerships
have resulted in more than 750,000 affordable housing units being
constructed, rehabilitated or acquired. In addition, an estimated
88,000 families have received
the assistance they need to find safe,
decent and affordable homes to rent.
For the second consecutive year, the President's spending plan
will include $200 million for the American Dream Downpayment Fund
to help approximately 40,000 low- to moderate-income families to
become first time
homeowners. This funding is an important part
of the Administration's goal to add 5.5 million new minority
homeowners
by the end of the decade. A recent HUD study found that the down
payment is the single greatest barrier minority families face when
trying to buy their first home.
Earlier this week, Secretary Martinez announced a proposal to increase
HUD's Housing Counseling Grant Program to $45 million, which
will help 250,000 additional individuals and families to find and
maintain homes. Housing counseling
is one of the most cost-effective
ways to educate homebuyers on matters such as inflated appraisals,
interest
rates and the mortgage settlement process, and is a fundamental
part of HUD's efforts to combat predatory lending.
The combined effect of these multiple funding increases will be
to significantly bolster the Bush Administration's
efforts to bridge
the nation's "homeownership gap." Census figures indicate
that while nearly three-fourths of non-Hispanic whites own their
own homes, less than half of African-American and Hispanic families
are homeowners. In
last year's State of the Union address, President
Bush announced a goal to add 5.5 million new minority homeowners
by the end of the decade.
President Bush also announced "America's Homeownership Challenge," calling on the housing industry to help increase minority homeownership. The result was the Blueprint for the American Dream Partnership, a collaborative effort to advance the President's goal. This unprecedented public-private partnership is helping to educate homebuyers, increase the supply of affordable housing, offer down-payment assistance and provide flexible financing options that help people realize the American Dream.
HUD is the nation's housing agency committed to increasing homeownership,
particularly among minorities, creating affordable housing opportunities
for low-income Americans, supporting the homeless, elderly, people
with disabilities and people living with AIDS. The Department also
promotes economic and community development as well as
enforces
the nation's fair housing laws. More information about HUD and its
programs is available on the Internet.
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