Date: 2010-06-23
Speaker: JACKSON LEE (democrat)
Chamber: H
State: Texas

Mr. Speaker. I rise in support of H. Res. 1434 to recognize National Homeownership Month and the importance of homeownership in America. As you know. homeownership is an important portion of our economy and a central piece of American culture that lies within the idea of the "American Dream". The idea of homeownership being central to the "American Dream" has a long history. Some believe that its roots date all the way back to 1776. where in the Declaration of Independence. Jefferson stated that all men have the right to "life. liberty. and the pursuit of happiness." In American culture. home ownership is often used as a proxy for the promised prosperity that was to be included in the interpretation of "liberty" and "happiness." In 1931. James Truslow Adams invented the term "American Dream" and used it to exemplify the idea that with enough hard work. anyone can achieve what they desire in life. For many Americans. homeownership is a central aspiration and the key to happiness and prosperity. Our great nation has long supported this theme in American culture. In response to the Great Depression and a failing housing industry. the U.S. government created the Federal Housing Administration in 1934. The FHA then became a part of the Department of Housing and Urban Development office in 1965. Together. the mission of these organizations is to create strong. sustainable. inclusive communities and quality affordable homes for all. Since its inception in 1934. the FHA and HUD have insured over 34 million home mortgages and 47.205 multifamily project mortgages. In the 1920s only about 4 out of 10 homes were owned. Thanks to the work of the FHA the homeownership rate in America is now upwards of 66%. FHA insurance has been especially important for minority communities. lowincome families. and firsttime homebuyers. Mr. Speaker. homeownership does not only serve as a centralized American idea. but also as a fundamental source of growing capital and investment for the American people and economy. The purchase of a home is one of the biggest investments one can make. It strengthens both a homeowners individual economic growth as well as the local communities as the effects of a growing housing market will trickle down in the form of jobs. building suppliers. tax bases. schools. and other 3 forms of revenue. Until recently. the U.S. gross domestic product has always been very closely tied to the total American housing valuation. Housing is a form of wealth that increases American consumption and the growth of the economy. With consideration to the significance of homeownership in America. the House recently passed H.R. 5072. the FHA Reform Act of 2010. This act will serve to crack down on fraud and misrepresentation from lenders. improve the FHAs internal controls and risk management. and provide more transparency and information to the public. This act is crucial to the future growth of the American housing industry. and it signifies the congressional recognition of the extreme importance of homeownership in our economy. For these reasons. Mr. Speaker. I rise in support of H. Res. 1434 to recognize National Homeownership month and give praise to home owners in America.