STATEMENT FROM SECRETARY ALPHONSO JACKSON ON RECORD NEW HOME SALES IN OCTOBER

Sales of new single-family homes set a new monthly record in October. The Census Bureau and HUD released data today showing an annual sales rate of 1.424 million units last month. This is an increase of 13 percent from September and a jump of 9.0 percent from October of last year. The previous monthly record was set in July of this year.

'This new home sales record is really good news for the economy and for America's families. This Administration is committed to helping more families realize the American Dream of homeownership,' said Housing and Urban Development Secretary Alphonso Jackson. 'The President's housing initiatives are helping more families, particularly minorities, to achieved that dream.'

Three years ago, President Bush challenged the nation to create 5.5 million new minority homeowners by the end of this decade. To date, there has been a net increase of 2.35 million minority homeowners, which represents 43 percent of the 5.5 million goal.

To stimulate the production of affordable homes in distressed communities where such housing is scarce, the Administration is again proposing a tax credit of up to 50 percent of the cost of new construction or rehabilitation. This tax credit targets low-income households earning less than 80 percent of an area's median income.

The 2006 Budget also provides $25 million to fund the American Dream Downpayment Initiative (ADDI). This Initiative helps first-time homebuyers with the biggest obstacles to homeownership - the downpayment and closing costs. Since President Bush signed this initiative into law, ADDI has helped more nearly 12,000 families to purchase their first home. Nearly half of these new homeowners are minorities.