Closing the Housing Gap
Bush administration sets ambitious goal to increase minority homeownership; observers point to previous administration for model
By Ronald Roach

The announcement by President George W. Bush this past June of his administration's plan to expand minority homeownership by at least 5.5 million families by the end of the decade has set forth an ambitious goal. Considering that minority homeownership increased by nearly 1.2 million families between 1993 and 1999, a period during which the minority homeownership rate increased faster than that of White families, the Bush administration needs a highly effective plan to realize an increase of 5.5 million families. In 1999, homeownership by African Americans, Hispanics, Asian Americans and American Indians was 12.4 million families, according to U.S. census data.

"Two-thirds of all Americans own their homes, yet we have a problem here in America because fewer than half of the Hispanics and half the African Americans own the home. That's a homeownership gap. It's a gap that we've got to work together to close for the good of our country, for the sake of a more hopeful future. We've got to work to knock down the barriers that have created a homeownership gap," President Bush declared during the announcement of the minority homeownership campaign.

The Bush proposal, which has been unveiled as a broad strategy, will focus on four key program areas:

n Educating homebuyers. This involves providing potential buyers with information about homeownership opportunities.

n Increasing the supply of affordable homes. The focus will be on increasing the supply of affordable housing in areas where housing is scarce. Strategies will range from using proven and effective federal housing programs in order to boost supply, to reducing local regulatory burdens.

n Providing assistance with down payment and closing costs. Programs will help families overcome one of the most common obstacles to homeownership — high down payment and closing costs — by expanding their options and giving them new opportunities to acquire the necessary capital.