The National Flomeownership - Global Urban Development

[Pages:87]The National Flomeownership Strategy: Partners in the American Dream

U.S. Department of Housing and Urban Development May 1995

THE WHITE HOUSE

WASHINGTON

May 2, 1995

our natsion's greatest. promise has always been the chance to build a better Life. For millions of America's working families t.hroughouE our hist.ory, owning a home has come to symbolize the realizaEion of Ehe American Dream. Yet sadly, in the 1980s, it became much harder for many young families to buy their first homes, and our nationaf homeownership rate declined for the first time in forEy-six years, Our Administration is determi-ned to reverse this lrend, and we are committed tso ensuring uhat worki-ng families can once again dj-scover t.he j oys of ovtning a home .

This pasE year, I directed HUD Secretary Henry G. Cisneros to work with leaders of the housing industry, with nonprofit organizations, and with leaders at every Level of governmenE t.o develop a plan to boost homeownership in America to an all-time high by E.he end of this century. The National Homeownership Strategy: Partners in the American Dream outlines a substanEive, detailed plan to reach this goal . This report ident.ifies specific actions thaE t.he federal government, iEs partners in state and local government, che privaEe, nonprofiE. communi.ty, and private industry will t,ake to lower barriers that prevent American families from becoming homeowners. Working Eogether, we can add as many as eight million ne$, families to America's homeownership ro11s by t.he year 2000.

Expanding homeownership will strengEhen our nation's famil-ies

and communities, strengthen our great mj-ddIe c1ass. Rekindling

economy, and

Ehe dream of

expand this country's homeownership for

America's working families can prepare our possibilitj,es of the twenty-first century.

nation

to

embrace

the

rich

Foreword

I am honored to present The Nariornl Homeownership Strategt' for the consideration of

the American people. The strategy was prepared in response to a request from President Clinton.

On Nov. 5, 1994, the President called for a national effort to lift America's homeownership rate

to an all-time high by the end of the cenrury. He directed me to develop a National

Homeownership Strategy to reach this goal and to form a national partnership of the private. public, and community sectors to carry out the strategy.

Homeownership is the American dream, but the dream has been fading since 1980. when

the national homeownership rate slipped into decline after 46 years of steady growth. Although

the homeownership rate has risen over the past 2 years, it is still well below its historic peak.

Reviving the trend toward greater homeownership is vital to our Nation's families. communities. and economic prosperity.

The goal of this strategy is ambitious: to generate up to 8 million additional homeowners from 1995 through the year 2000. The strategy recommends a series of concerted actions to help middle-income and low-income families, racial and ethnic minorities, families with children. and young adults overcome current barriers to homeownership. These actions will be undertaken by private industry, national nonprofit organizations, nonprofit community groups, and Federal. State. and local governments working in cooperation at the national, State, and local levels.

Working as partners in this way, we can translate strategy into achievement, making the

dream of homeownership a reality for millions of hard-working people and building a better future for all Americans.

Henry Cisneros Secretary of Housing

and Urban Development

Charptcr l : Tl-rct National Horrleowncrship Strategy .....

Purpose Why Homeownership? Strategy Themes National Homeownershio Goals

Exhibit 1-National Homeownership Rate................. Summary of the National Homeownership Strategy Contents National Homeownership Strategy: List of Proposed Actions

Homeownership Education and Counseling Raising Awareness

Cl-ratrtterr 2 : Pilrtl)crslrip StructLrrc)

Partnership Agreements . National Partners in Homeownership

Chaptcr 3: Procluction ...................

......1-l

1-1 'l-1

1-2 1-2 1-3 1-4 1-5 1-6 1-6 1-6 1-6 1-7

1-B 1-B 1-9 1-9

'.)_ |

2-1 2-1 2-3 2-4

:l- . . . . . . . . . . . . . . . .

I

Strete.riFe

Re-duce Begulatory Barriers to Affordable Homeownersnrp

.. ........ .... ..... 3-1

..................... 3-2

Action 1: Assessing Regulatory lmpacts on Affordable Homeownership................................................... 3-2

Action 2: Modernizing Planning, Zoning, and Subdivision Laws ...................

................. 3-2

Action 3: Education and Technical Assistance for Regulatory Reform ................

........... 3-3

Action 4: Consensus Building and Mediation Techniques for Affordable Homeownership......................... 3-3

Fees Action 5: Statewide Standards for lmpact

.................................. 3-4

Action 6: Models of Regulatory Flexibility and Development Controls ....................

....... 3-4

Action 7: Expanded Research on Regulatory Reform

Action 8: Building Code Reform ............... Expand the Supply of Starter Homes

Action 9: Education and Outreach for Higher Density Home Construction Action 10: FastTrack Administrative Review Procedures for Starter Homes

Action 11 : Removing Barriers to Mortgage Financing for Starter Homes

Action 12: Stock Plans and Guidance Materials for Starter Homes

3-4 .... 3-5 ................. 3-5 .......... 3-6 ....... 3-6

3-6 3-6

Action 13: Flexible Regulations to Accommodate Home Rehabilitation

Action 14: Home Rehabilitation Research

3-B ... 3-8

Action 15:Technical Evaluation and Guidance Materials for Energy Conservation ................................... 3-8

Stimulate Technological Innovation in Homebuilding .........

... 3-B

Action 16:Affordable Home Technology Program

.......... 3-9

Action 17: Information, Training, and Technical Assistance for Innovative Technologies ......... 3-9

Action 18:Affordable Home Design and Construction Awards.................

.......... 3-10

Action 19: Stock Plans for Building Affordable Homes

. 3-10

Action 20: Enhanced Homebuilding Product Evaluation

.................. 3-10

Action 21: HUD Technical Evaluations of Homebuilding Products ...............

...... 3-10

Action 22: Research on Technological Innovation for Affordable Homes

........... 3-1 1

Eliminate Regulatory and Financing Barriers to the Availability of Manufactured Housing

3-1 1

Action 23: Regulatory Review of Manufactured Homes

Homes Action 24: State Participation in Manufactured Homes Action 25: Cooperative Research for Manufactured Action 26: Manufactured Home Industry lnitiatives Action 27:Toning and Land Development Reform for Manufactured Homes ................

3-12 . 3-13 ............ 3-13 ....... 3-13 ....... 3-13

Action 28: Access to Financing for Manufactured Homes

3-1 3

Chaptar 4: F'inancin$ ........

Action 29: Alternative Approaches to Homebuying Transactions ................ Action 30; Technological lmprovements in Mortgage Financing Action 31: Lender Processing Time Reductions .......... Action 32: Standardize Homebuying Settlement Procedures ......... Action 33: Bulk Purchase of Homebuying Settlement Services Action 34: Local Government Development Fees and Homeownership Trust Funds Reduce Downpayment and Mortgage Costs......... Action 35: Home Mortgage Loan-to-Value Flexibility Action 36: Subsidies to Reduce Downpayment and Mortgage Costs .........

+-l

4-1 4-1 4-2

4-2 4-2 4-2 4-3 4-3 4-4 4-4 4-4 4-5 4-6

Action 37: lRAs and 401 (k)s for Homeownership Downpayments

Action 38: Savings Plans for Homeownership ........... Action 39: Mortgage Options and Homebuyer Education.............. Action 40: Home Mortgage Foreclosure Requirements................

4-6

..... 44

.... 4-7

..... 4-B

Action 41: Home Purchase and Rehabilitation Financing With FHA 203(k) Action 42: Conventional Financing for Home Purchase and Rehabilitation

......... 4-9 ......... 4-9

Action 43: Home Rehabilitation Financing

4-10

Action 44: Flexible Mortgage Underwriting Criteria

4-10

Action 45: Public-Private Leveraging for Affordable Home Financing

4-1 1

Action 46: Reinventing FHA Single-Family Home Mortgage lnsurance

4-1 1

Action 47: Native American Home Financing Needs

4-12

Action 48: Small Rental Properties to Support Affordable Homeownership............

4-12

Action 49: Continuation of the Mortgage Revenue Bond Program and Mortgage Credit Certificates ..... 4-13

Action 50: Energy Efficiency and Home Mortgage Underwriting

4-13

Action 51 : Cooperative Homeownership

4-13

Ctrapter 5: Building CornmLlnities ..............

Action 52: Homeownership Education and TechnicalAssistance for Communities Action 53: Spotlight on Successf ul Local Partnerships ................. Expand Homeownership Opportunities in Areas of Employment Action 54. Employer-Assisted Homeownership Action 55: Location-Efficient Home Mortgages Revitalize Distressed and Declining Urban Neighborhoods ............. Action 56: Comprehensive Community Revitalization ................ Action 57: Homeownership Zones Action 58: Federal and State Resources for Affordable Homeownership Action 59: Promoting Mixed-lncome Neighborhoods Action 60: Redeveloping Vacant Properties Increase Opportunities for Homeownership in RuralAreas Action 61: Mortgage Credit for Rural Areas Action 62: Rural Home Financing Demonstration Program Action 63: Expanding Rural Home Financing Action 64: Homeownership Capacity Building in RuralAreas Action 65: Rehabilitating Rural Homes Action 66: Homeownership Opportunities for Native Americans

5-l

5-1 5-1 5-1 5-1

5-2 5-2 5-3 5-3 5-3 5-4 5-4 5-5 5-5 5-6 5-6 5-6 5-7 5-7 5-8 5-9 5-9 5-9

Cltratlrft"r (i: ()1rt'rtirt$ IVlatrkots ...............

.....

o.....

a a.. r. r t.. r.. t......................

r..............4.

a. 6-

I

Action 67: The President's Fair Housing Council

............ 6-3

Action 68: Voluntary Fair Housing Self-Enforcement and Affirmative Marketing by

Homeownership lndustry Organizations............... Action 69: Metropolitan Regional Fair Housing Initiatives Promote Fair Lending and Insurance ..............

.... 6-3 .................. 6-4

... 6-4

Action 70: Voluntary Self-Enforcement and Affirmative Marketing by Mortgage Lending and

Homeowners I nsurance Industry Organizations ...............

6-5

Action 7'1: Access to Home Mortgage Lending Data ...........

6-6

ActionT2: Research on Fair Lending and lnsurance lssues

6-6

Increase Diversity in the Homeownership Delivery System

6-6

Action 73: Market Review of Underserved Groups and Communities..........

6-6

Action 74: Workplace Diversity in Hiring and Promotion..............

6-6

Action 75: Research on the Homeownership lmpacts of Diversity ... . .... .....

6-7

Action 76: Mentoring Minority-Owned Homeownership Businesses

6-7

Increase Outreach to Underserved Groups

6-7

Action 77: Marketing Homeownership Products and Programs in Foreign Languages

6-B

Action 78: Tailoring Home Design and Construction to Diverse Populations

6-8

Action 79: Homeownership Models That Work

6-B

Action 80: "One-Stop" Home Financing Catalogue

6-9

Chaptr:r 7: Florncownership Education and Counseling...

.7-l

lmprove the Quality, Consistency, and Effectiveness of Homeownership

Education and Counseling Efforts..

..............7-2

Action 81: National Institute for Homeownership Education and Counseling............. ............. 7-3

Action 82: Federal Efforts to Build Local Homeownership Counseling Capacity

.................... 7-3

Action 83: Research on Homeownership Education and Counseling ............

......7-3

Action 84: Clearinghouse for Homeownership Education and Counseling ............

.................7-4

Action 85: Curriculum Development for Homeownership Education and Counseling

............. 7-4

Action 86: Training and Accreditation for Homeownership Education and Counseling

...........7-5

Action 87: Cultural Sensitivity and Diversity in Homeownership Education and Counseling .....................7-G

Action 88: Education on Alternative Forms of Homeownership

.........7-6

Develop a Steady Stream of Funding For Homeownership Counseling Providers

..,..7-7

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