The proposal received strong support in both chambers of Congress last year, and the HUD secretary said he would work with NAHB to move the legislation forward in the 109th Congress.
Dismissing critics who contend that the zero downpayment program would lead to higher default rates, Jackson said that the proposal enjoyed solid support in the last Congress and that it remains a priority for the Administration.
“Firefighters, police officers, teachers and nurses don’t default on their home. We need to give them an opportunity” to become new home owners, he said.
With President Bush setting a goal of increasing the supply of affordable housing by seven million units over the next decade, Jackson said that expanding homeownership represents “just one piece of a very large pie” for his housing agenda in the coming year.
“I’ve made reform of the Section 8 rental assistance program another of my priorities for 2005,” he said. “Section 8 costs are growing out of control and cannibalizing every HUD program. If we don’t solve this program, all our programs — including our homeownership efforts — will be in jeopardy.”
Jackson also said that he will seek to propose new Real Estate Settlement Procedures Act (RESPA) regulations that simplify the home buying process and make it less costly for consumers.
In marking the 40-year anniversary of the creation of HUD, Jackson noted that NAHB "has worked more closely with us to make housing more affordable to more Americans."
Photograph by Oscar Einzig Photographers
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