From the Office of Senator Kerry

Wednesday, May 22, 2002

Washington, DC - Senator John F. Kerry and Boston Mayor Thomas Menino today joined mayors from across the country to discuss ways that Congress and the Administration can partner with cities to address the affordable housing crisis across the country.

Senator Kerry said, "These mayors are on the front lines in this fight to give all Americans access to the American dream. They have helped us identify the barriers keeping families from the realizing that dream and we must work with them to determine the most effective role the federal government can play in this crisis. This is a crisis not just for the poorest of Americans - it is being felt by middle income and low income families across the country and our solution must address families trying put a down payment on a first home, families living in rental housing, and families living in public housing. That's why we must roll up our sleeves and begin work on a comprehensive effort on the federal, state and local level on creative ways that we can make sure that citizens can afford a decent place to live. " This week Mayors, members of Congress, housing policy experts, and representatives of the public health, public education, senior citizen, labor, and business communities are meeting this week in Washington to discuss the nation's affordable housing crisis. Their findings included:

Establishing a national affordable housing trust fund to provide a reliable and dedicated stream of funding to address the housing needs of primarily those with very low incomes. Approximately 200 communities across the country have such funds already.

Creating a new national homeownership tax credit to make buying a home more affordable for those with low- and moderate-incomes. About 90 percent of the benefits from the existing mortgage interest tax deduction go to those with incomes over $40,000 per year. A new, targeted tax credit could help some of those people who are currently unable to afford to purchase a home.

Senator Kerry is the author of the National Affordable Housing Trust Fund which would produce 1.5 million units of affordable housing over the next 10 years using excess revenues from the Federal Housing Administration (FHA) and the Government National Mortgage Association (GNMA). The goal of the legislation is to create long-term, affordable, mixed-income developments in areas with the greatest opportunities for low-income families. According to current projections, approximately $26 billion will be available for the Trust Fund between now and 2008.

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