George Bush's position on

HUD: Created as a Cabinet-level agency in 1965. HUD is the Nation's housing agency committed to increasing homeownership, particularly among minorities and creating affordable housing opportunities for low-income Americans. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. Link

Description of candidate's position: Bush announced the goal of increasing the number of minority homeowners by at least 5.5 million families by the end of the decade. Bush's plan to dismantle the barriers to homeownership includes fully funding the American Dream Down Payment Initiative, the Single-Family Affordable Housing Tax Credit, simplifying homebuying and increasing education.

Quotation from the candidate: "Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes…So I've set this goal for the country. We want 5.5 million more minority homeowners by 2010… I've asked Congress to fully fund an American Dream down payment fund…We believe when this fund is fully funded and properly administered, which it will be under the Bush Administration, that over 40,000 families a year will be able to realize the dream…The second barrier to ownership is lack of affordable housing…we need to deal with that problem. The best way to do so, I think, is to set up a single family affordable housing tax credit to the tune of $2.4 billion over the next 5 years. The third problem is that the rules are too complex…It is essential that we make it easier to buy a home, not harder." June 18, 2002, from the Bush website.

Assessment of the proposal:

Positive: Sales of new single-family homes in August were the 5th highest ever recorded. HUD Secretary Alphonso Jackson stated, "…Last week's announcement that single-family home construction was near an all-time high in August show that housing is continuing to lead our rapidly recovering economy. The Bush Administration is committed to building on these accomplishments by breaking down the barriers and making it easier for more families to realize the dream of homeownership. The President's housing initiatives will pave the way for more Americans, particularly minorities, to achieve that dream."

Negative: Bush's proposed FY05 budget reduces funding for the Section 8 Housing Voucher Program by $1.66 billion and reduces the number of families that can receive assistance by 250,000. The Housing Voucher Program also currently serves 2.05 million low income households. The proposed cuts to the HUD programs would have a devastating impact on the current 3.5 million homeless people in this country. According to the Brookings Institute, the Bush administration has also sought to limit the nation's Section 8 housing voucher program that helps 2 million households afford rents in the private market. This program, supported by conservative theorists and policymakers for years, is by far the most effective and cost-efficient housing program in the nation's arsenal. Yet the administration&emdash;having failed to convert the program into a block grant&emdash;has now told the country's 2,500 public housing agencies that it would no longer fully fund the vouchers but would cap the federal contribution at the level of August 2003, adjusted for inflation. This stratagem will almost certainly force housing agencies to raise rents or evict tenants, again undercutting the broader goal of helping low-income renters transition to homeownership.The Brookings Institute also noted that historically, low interest rates, rather than federal housing policy, explain the increased numbers in homeownership.

Comparison: The Bush Administration's FY05 budget request contains a proposal to make fundamental changes to the "Section 8" housing voucher program and give more funding to homebuying education. Kerry strongly opposes the Bush Administration's cuts in federal housing programs.

Link to Kerry's issue page