Bush Discusses Minority Homeownership Gap

WASHINGTON (AP) April 20, 2004 - Shining a White House spotlight on the big disparity between the number of white and minority families who own their own homes, President Bush is arguing that narrowing the gap is an economic as well as social imperative.

While headlining the daylong White House Conference on Increasing Minority Homeownership on Tuesday, Bush was to tout a new analysis from his administration claiming that getting 5.5 million more black and Hispanic families into their own homes -- the goal he has set -- would give the U.S. economy a $256 billion shot in the arm over the decade.

Almost three-quarters of white American families are homeowners, but the same can be said for less than half of black and Hispanic families, or just over 13 million households.

Bush wants to address that inequality by boosting minority homeownership by more than 40 percent by 2010. To do so, he has proposed increased government help for 40,000 low-income families trying to scrape together a downpayment to buy their first home; $2.4 billion in tax credits for developers who build or repair homes for low-income buyers; and letting federal rental assistance be used toward down payments or mortgage payments. All the proposals are pending in Congress.

The conference, to be held at George Washington University, was designed as a forum for new ideas as well as a kick in the pants for the myriad government and private sector players. Federal housing officials believe the president's goal is realistic, but only if the mortgage industry and nonprofit organizations also keep their end of the bargain by making capital and credit more available to minorities.

"One of the things presidents can do is they can call the old conference. So I'm going to call one, just to make sure people understand we're serious,'' Bush said in the summer.

Bush was to wrap up the day with an afternoon address, following panels on affordable housing, the mortgage finance industry and educating consumers about the pitfalls of obtaining affordable mortgages.

Skeptics applaud Bush's intentions, but question whether his as-yet-unpassed proposals can realistically accomplish his goal, noting they are targeted based on income, not race. They also criticize his housing policy's focus on home ownership, arguing it should concentrate instead on the larger and more pressing need for more affordable rental housing.

But with the congressional midterm elections approaching, promoting minority homeownership presents several potential political benefits for Bush.

The Bush White House has made romancing black and Hispanic voters and organized labor such as the Carpenters Union a top priority.

And in the face of Democratic charges he is neglecting the economy and polls showing voters wants the president to pay closer attention to their pocketbook worries, Bush has been looking for ways to appear a good steward of the economy -- even as he continues the war on terror and contemplates military action in Iraq.

To that end, a Department of Housing and Urban Development report being released Tuesday estimated the combined impact of 5.5 million new minority homebuyers over the decade.

Assuming that 15 percent buy a newly constructed home, the result would be 4.1 million new jobs that would pump $150 billion in wages into the economy. In addition, the new homeowners -- who spend more in their first year of occupancy than non-movers -- would purchase of $19 billion worth of furniture and appliances, make $17 billion in home improvements and pay $70 billion in fees for professional services associated with home-buying, according to the report.

"When people own their own homes, they not only build they own futures, they transform entire communities in ways that have enormous social and economic benefits to all Americans,'' Housing Secretary Mel Martinez said.