Housing and Urban Development Issue

Housing

Senator Domenici supported funding the Department of Housing and Urban Development at $35.2 billion for fiscal year 2008. He believes it places the right emphasis on homeownership. The national homeownership rate is nearly 70%, and the minority homeownership rate exceeds 51%, which is not only the highest level ever, but also more than halfway to the President's goal of adding 5.5 million new minority homeowners by 2010. Senator Domenici continues to support the Administration's efforts to reduce this homeownership gap.

New Mexico has been the recent recipient of $11.4million in U.S. Department of Housing and Urban Development (HUD) grants that will support a variety of public housing initiatives in communities across New Mexico. The grants were awarded under the American Dream Downpayment Initiative (ADDI), Emergency Shelter Grant (ESG), HOME, and Housing Opportunities for Persons with AIDS (HOPWA) programs. All programs provide federal funding to improve housing assistance to disadvantaged and low-income individuals. As a member of the Senate appropriations subcommittee that sets funding levels for HUD and federal colonias improvement programs, Senator Domenici will work to ensure the necessary funding for our State's housing needs.

Subprime Mortgage Financial Crisis

The growing rate of foreclosures due to the subprime lending crisis continues to have a great effect on our economy, especially since home equity is the greatest asset held by people entering the retirementage. Congress has passed a measure that was included in the Department of Transportation, Housing, and Urban Development Act of 2007 to grant $100 million to help struggling families stay in their homes. This measure will require the Secretary of Housing and Urban Development (HUD) to provide grants to a variety of entities to help troubled borrowers. HUD will be responsible for developing this list of qualified foreclosure mitigation entities and counseling centers to receive these grants.

I am encouraged that the Administration is taking steps to address this national challenge without government mandates or taxpayer subsidies. Secretaries Henry Paulson and Alphonso Jackson have worked together to assemble HOPE NOW, a private sector group that will help borrowers either refinance an existing loan, move to an FHA Secure loan, or freeze their current interest rate for five years. This opportunity is offered to borrowers who stayed current on their mortgage payments during the introductory rates on their home loans, but who will be unable to maintain this re-payment status once the loan resets.

National Affordable Housing Trust Fund Act

Senator Domenici is a cosponsor of the National Affordable Housing Trust Fund Act, a bill to construct, rehabilitate, and preserve 1,500,000 housing units over the next ten years. This measure will bring more safe, affordable housing to low-income families around New Mexico.

Colonias

New Mexico is home to over 35 border communities known as colonias, traditionally defined by their substandard family housing and basic water and wastewater services. A lot of work has been done to try to improve the basic quality of life in these communities, but much more can be done. Senator Domenici is confident that the hard-working people in Southern NM and the colonias can achieve their own visions of the American Dream-a safe and affordable home to raise their families.

Housing for the Homeless and Mentally Ill

The twin burdens of homelessness and mental illness weigh on the lives of far too many New Mexicans. But we can help to make their lives better through efforts such as Albuquerque Health Care for the Homeless. The Senator is very pleased to see federal money being put to work in New Mexico to help the homeless mentally ill. Unfortunately, without services such as those offered by the Health Care for the Homeless organization, so many of these people will have no hope for getting help. Of the 850,000 homeless in the United States, about 300,000 of those individuals suffer from a serious mental illness, and 16 percent of all inmates in State and local jails suffer from a mental illness. As many as 700,000 mentally ill individuals are booked into a jail every year, and they are among the 25-40 percent of America's mentally ill who will come into contact with the criminal justice system.

For news and updates on housing legislation, please visit:
http://banking.senate.gov/

For information on the Department of Housing & Urban Development, please visit:
http://www.hud.gov
http://www.hud.gov/local/index.cfm?state=nm

For information on USDA's Rural Development Programs, please visit:
http://www.rurdev.usda.gov/

For more information on Senator Domenici's views and activities on housing and urban development, visit our online News Center.