2003 Adopted Resolutions
71st Annual Meeting
Denver

return to table of contents

HOMEOWNERSHIP TAX CREDIT

WHEREAS, the economic boom of the 1990s resulted in more American's buying homes than at any other time in the nation's history, pushing the homeownership rate to an all time high of 67.8% in 2002; and

WHEREAS, homeownership gives families a stake in their communities and increases the stability and vitality of neighborhoods

WHEREAS, despite this growth homeownership for lower income families, particularly minorities, lags well below the national average, at 48% for African-Americans and 47.6% for Hispanic-Americans; and

WHEREAS, the Bush Administration has proposed, and legislation has been introduced H.R. 839 and S. 198, to establish a tax credit program to encourage the new construction or substantial rehabilitation of homes for low-income families in economically distressed urban communities modeled after the very successful Low-Income Housing Tax Credit ; and

WHEREAS, the tax credit would bridge the gap between the cost of development and the price at which it could be sold in distressed neighborhoods, thereby serving to help revitalize these neighborhoods; and

WHEREAS, the estimated annual impact of the homeownership tax credit would be:

  • 50,000 homes built or rehabilitated
  • $2 billion of private equity investment generated
  • $6 billion of total development activity
  • 122,000 construction jobs in construction and construction related industries
  • $4 billion in wages
  • $2 billion in federal, state, and local tax revenues and fees,

NOW, THEREFORE, BE IT RESOLVED that the United States Conference of Mayors hereby supports the proposed investor-based single family homeownership tax credit that would encourage the development of affordable single-family housing, help revitalize distressed neighborhoods, and increase homeownership by lower income families; and

BE IT FURTHER RESOLVED, that the United States Conference of Mayors also supports creation of a federal first-time home buyers tax credit that will provide one-time financial assistance to low and moderate income families to help pay for downpayments and closing costs for the purchase of a home; and

BE IT FURTHER RESOLVED that the United States Conference of Mayors calls on the Congress to pass legislation creating a single family homeownership tax credit during this session of the 108th Congress.