|
Resolution
Supporting HUD’s Zero Down
Payment FHA proposal
WHEREAS, the U.S. homeownership
rate has reached record levels, with 68.6% of
households (72.6 million) currently owning their
own homes; and
WHEREAS,
extending homeownership to more families has
been a national priority because of the great
financial and social benefits that result from
homeownership; and
WHEREAS,
homeownership is very effective both as a
wealth-building tool for families and a
community-building tool for neighborhoods; and
WHEREAS,
minority homeownership rates are not equal to
that of non-minorities. In the 4th
quarter of 2003, 50.6 percent of minority
households owned their homes compared to a
non-Hispanic white rate of 75.5 percent; and
WHEREAS,
President Bush and the Department of Housing and
Urban Development (HUD) developed the
Blueprint for the American Dream initiative
last year to close the minority homeownership
gap and create 5.5 million new minority
homeowners by the end of the decade; and
WHEREAS, the
down payment is often an unwarranted obstacle to
homeownership, especially for minority and low-
and moderate-income families. A recent Federal
Reserve study indicated that removing the down
payment for African-American and Hispanic
families would have a far greater impact on
homeownership rates than lowering interest
rates; and
WHEREAS, LULAC
and HUD believe that FHA can be a primary
vehicle for closing this gap and increasing the
number of minority and low- and moderate-income
families able to achieve homeownership. FHA has
a long and strong record of assisting those not
served by conventional markets; and
WHEREAS, the
“Zero Down Payment Proposal” will empower FHA
with an additional tool to fulfill its mandate
to serve those families underserved in the
private market. This initiative will increase
homeownership opportunities for minority and
low- and moderate-income families who can handle
the responsibilities of homeownership but find
it difficult to save for a down payment.
NOW THEREFORE, BE IT
RESOLVED, that the League of United
Latin American Citizens (LULAC) goes on record
supporting HUD’s FHA Zero Down Payment
proposal.
Submitted by Hector M. Flores,
LULAC National President.
Adopted this 10th day of July
2004.
Hector M. Flores
LULAC National President |
