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Speech File Draft Files
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National Association of Realtors 11/10/89 [OA 3537] [3]
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25
6
6
2
THE WHITE HOUSE
L
WASHINGTON
November 8, 1989
MEMORANDUM FOR CHRISS WINSTON
Deputy Assistant to the President for
Communications
FROM:
BRENT O. HATCH. But
Associate Counsel to the President
SUBJECT:
Presidential Remarks -- National Association of
Realtors
At your request, Counsel's office has reviewed the above-
referenced remarks. We have no legal objections.
Thank you for the opportunity to review this matter.
CC: James W. Cicconi
52:60 8 100 68
Document No. 088452SS
WHITE HOUSE STAFFING MEMORANDUM
11/7/89
11/8/89 10:00 AM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
ROGICH
BATES
UNTERMEYER
CARD
ROGERS
WINSTON
CICCONI
DEMAREST
PINKERTON
FITZWATER
BOSKIN
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 10:00 AM, Wednesday, November 8, with a
copy to my office. Thank you.
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
McGroarty/Dooley
November 7, 1989
12:30 pm
1983 NOV - 7 PM 1: 31
[REALTORS]
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
[Introductory remarks.] Thank you, Ira [Griben] -- the very
able President of the National Association of Realtors. And let
me say hello to two fine members of Congress who have travelled
down to Dallas today, Representatives Bill Thomas and Claudine
Schneider.
[[ Ira mentioned to me on my way in this afternoon that my
speech is a special occasion for this association. 11 I said I
was honored -- and then Ira said "It's not often that we're
addressed by someone who lives in public housing." ]] ////
[[ The truth is, I am not a real estate wizard. When I was
elected to Congress back in 1966, we needed to make housing
arrangements up in Washington. At that time, Senator Al
Simpson's father, Millward, was retiring and moving back to
Wyoming. So I bought the Simpson place -- sight unseen -- made
the deal over the phone. When we got to Washington, there were
just two problems: we found out right away the house wasn't
quite big enough for the Bush family -- and we found out when we
put the place up for sale that it wasn't worth quite as much as
we paid for it. /// That's my claim to fame: I'm the only
2
person who ever lost money in Washington real estate in the last
20 years. /// Ira, where were you when I needed you? 1]
But few people have done more for the real estate industry
than I have. // Barbara and I have moved 28 times in our 44
years of marriage. /// Now I know what you're thinking -- what
a dream client my family would make for any realtor. /// In
fact, OMB is calculating the commissions we've paid over the
years -- measured as a percentage of the GNP. 1] ////
I came here today to lay out a set of housing initiatives --
a comprehensive plan to bring basic shelter and affordable
housing within reach of every American.
But before I outline my housing proposals, I want to speak
for a moment about the single most important factor in helping
millions of Americans realize the American Dream: the economy.
Because the truth is, there's no better housing policy than
a strong economy. One that provides jobs and opportunities for
advancement -- interest rates that open ownership opportunities
to hundreds of thousands of first-time home buyers. I know just
how important interest rates are when it comes to home buying: a
1 1/2 point drop means an additional 670,000 families able to
purchase that home they want.
And all signs point to continued strength in the economy.
November marks the seventh full year of economic expansion -- the
longest peacetime expansion in our nation's history.
Unemployment is lower now than at any point since the early 70s.
And here's one statistic that has to please all of you: home
3
mortgage rates are down from almost 14% back in November, 1982 to
less than 10% today.
All of us know that the way to keep this expansion alive is
to stick with the pro-growth policies that set it in motion --
the policies that provide the private sector room to do what only
it can do: create prosperity and higher standards of living.
Of course, part of any reasonable economic policy is getting
our fiscal house in order. // I want you to know that my
Administration is hanging tough for a responsible budget -- with
real deficit reduction, no smoke and mirrors.
We don't like sequestration -- no one does. But we'll live
with it if we have to -- if it's the only way to rein in spending
and bring that deficit down to the Gramm-Rudman target. I'm
ready to sign a budget bill -- whenever Congress is ready to
strip off all the expensive extras and add-ons hidden away in
those omnibus spending bills. A responsible budget is one of the
best signals the government can send for the sake of continued
growth.
And I'm optimistic -- optimistic that this economic
expansion will continue. Hopeful my Administration and the
Congress -- with the help of members like Bill and Claudine --
can agree on a responsible budget. Hopeful that we'll see more
and more Americans prospering -- providing better lives for their
families, and looking to all of you to help them realize their
dreams.
4
Today, as I told you a few moments ago, I've chosen this
occasion to announce a wide-ranging set of housing initiatives I
call Project Hope -- an initiative that stands for Homeownership
and Opportunity for People Everywhere.
Project HOPE addresses the full range of housing concerns:
from shelter for the homeless to affordable housing for low-
income families -- to initiatives that will help millions more
Americans achieve the American Dream: owning their own home.
Let's start with what Project HOPE will do for first-time
home buyers. You know first-hand about families working hard to
buy that first home -- families whose savings are no match for
skyrocketing prices. First-time buyers deserve our help -- and
they're going to get it. I will ask Congress to enact
legislation allowing first-time buyers -- or their parents -- to
draw without penalty on IRA savings as a downpayment for that
first home.
And we've got to expand the home-buying base -- bring more
low-income families into the ranks of homeowners. I will earmark
funds from the Federal Housing Financing Board, to be used for
mortgage rate buy-downs to make homeowning an option for more
low-income families.
Now, I know you've all seen the news on new housing starts.
It's time for all levels of government to take a second look at
some of the well-intended housing policies that actually decrease
our housing supply. I'm talking about the excessive rules,
regulations and red tape that add unnecessarily to the cost of
5
housing -- tens of thousands of dollars in some cases -- or
create perverse incentives to allow existing housing to
deteriorate.
I have asked my very able Secretary of HUD, Jack Kemp, to
convene a Blue Ribbon Commission to identify barriers to
affordable housing and to make recommendations on how those
barriers can be removed. And let me make the first
recommendation myself: no city, state or town should receive a
single cent of Project HOPE funds until they have identified
barriers to affordable housing -- and devise a plan to remove
them. ///
Project HOPE also means initiatives to improve low-income
housing. Let me say right away that my Administration rejects
costly new construction programs that, in the past, have too
often produced the housing projects that symbolize the very
absence of hope in our inner cities. This Administration remains
100% behind housing vouchers that let low-income families choose
for themselves where they wish to live.
Our challenge is to create incentives that maintain the low-
income housing we need. I will ask Congress to renew the Low-
Income Housing Tax Credit -- on one condition: that the Low-
Income Housing Tax Credit is part of a package that includes a
cut in the capital gains tax. I know the National Association of
Realtors has fought hard to make a capital gains cut a reality.
Well, the fight's not over. We're going to keep up the fight for
6
one simple reason: because a cut in capital gains is good for
growth. ///
And Project HOPE can help us reverse a trend that's stunting
some of the growth and development that would otherwise take
place in low-income areas. Too many poverty-stricken areas have
simply been redlined -- ruled too risky for lending. I am asking
the Federal Housing Authority to work with neighborhood non-
profit groups to identify responsible credit risks in poor areas,
and open a flow of credit for new low and moderate income
housing. The time has come to replace the redline with a
greenline -- to color these inner-city neighborhoods green for
growth.
But the real centerpiece of our plan for public housing is
resident management and, yes, resident ownership. That's the
idea behind our HOPE Grants initiative. It's already working:
In Kenilworth-Parkside, back in Washington, D.C. In Cochran
Gardens in St. Louis. And it's going to work right here -- at
the nation's second-largest public housing project in West
Dallas.
And the results are promising: with tenants in control, we
see better maintenance, more rents paid on time, a decrease in
people on the welfare roles as job opportunities emerge. And we
see something more: a sense of pride that is the very core of
any thriving community.
I hope these successes are only the beginning --- of a
nationwide shift towards tenant control, and ultimately towards
7
tenant ownership. I don't know any better way to revive hope in
our inner cities than to give tenants a say in running their
communities, a stake in the future and the hope that they, too,
can own a home. //
That's worth remembering. Because the true measure of
success isn't how many families we add to housing assistance
roles. It's how many families move up and out -- and into the
ranks of homeowners. ///
Project HOPE can make a difference for millions of Americans
who want to buy a home -- or who simply want to provide their
families decent housing and better hopes for the future. But
there are other people out there we've got to help. People who
stand in the shadows of what is otherwise a very bright economic
picture -- who live a nightmare in the midst of the American
Dream. We see them every day -- on the streets of our cities,
sleeping on steam grates, living out of cardboard boxes. The
homeless. 11
Back in June, I went up to Covenant House in New York. I
met children there who've been out on the street for 4 or 5 years
-- from the time they were 12 and 13 years old. 111 We can't
begin to imagine the horrors they go through.
For all of us, November is the time of year we start looking
forward to the holiday season: Thanksgiving, Christmas, New
Years. For the homeless, November is the time of year the
temperature starts to drop, and simply making it through the
night becomes a life and death struggle. // Homelessness is a
8
tragedy -- and Project HOPE won't be complete unless it reaches
out to help the homeless. 11 Because no child in America should
have to grow up on the streets. And every family in America
should have a roof over its head. ///
Now, my Administration is going to do its part to expand
emergency shelters. We're committed to fully funding the
McKinney Act. We're directing the FHA to set aside 10% of its
foreclosed housing for lease to homeless groups. And today, I
want to announce that -- as part of the savings and loans
recovery program -- I will make certain that a portion of the
properties from failed S&Ls be put to public use as facilities
for the homeless.
But we can't begin to eliminate homelessness -- to really
get at the root of the problem -- until we understand the various
reasons that lead to life on the streets. Homelessness isn't
just a matter of too little shelter space. There are the working
homeless, men and women -- some with children -- who hold down a
job, but still can't afford a home. But they are only a fraction
of the many homeless men and women who are literally incapable of
caring for themselves. And if we care about them, we've got to
take more than a one-dimensional approach to the problem.
The fact is this: Two-thirds of the homeless out on our
streets suffer from drug dependency or mental illness. For these
men and women, shelter alone is not enough. Homelessness is just
one symptom of the larger problems that prevent them from caring
for themselves.
9
The answer for the homeless who are mentally ill or addicted
to drugs is shelter plus: shelter supplemented by the necessary
support-services to get these people the help they need to live
in dignity. And that means a partnership -- a combined federal,
state and local effort -- to supply the funding and other
resources that constitute a comprehensive solution for the hard-
core homeless.
The key here is coordinating basic needs like shelter with
other social services -- to help the homeless get the treatment
they need to get control of their lives. To help them find and
hold down jobs. To help them manage a home. To help them regain
hope -- and leave life on the streets behind for good. ///
Helping the homeless. Helping low-income families find
affordable housing, decent housing. Helping more of the 80
million Americans who don't own a home join the ranks of
homeowners. Those are the aims of Project HOPE -- aims well
within our reach. And they are aims that deserve the active
support of every American who believes in the American Dream.
///
Thank you. God bless you -- and God bless the United States
of America.
# # #
Document No. 088452SS
WHITE HOUSE STAFFING MEMORANDUM
11/7/89
11/8/89 10:00 AM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
ROGICH
BATES
UNTERMEYER
ROGERS
CARD
WINSTON
CICCONI
DEMAREST
PINKERTON
FITZWATER
BOSKIN
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 10:00 AM, Wednesday, November 8, with a
copy to my office. Thank you.
RESPONSE:
OK. BRUCE ZANCA FOR Sig Roy ICH
or : 11v 8 James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
McGroarty/Dooley
November 7, 1989
12:30 pm
1989 NOV -7 PM 1: 31
[REALTORS]
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
[Introductory remarks.] Thank you, Ira [Griben] -- the very
able President of the National Association of Realtors. And let
me say hello to two fine members of Congress who have travelled
down to Dallas today, Representatives Bill Thomas and Claudine
Schneider.
[[ Ira mentioned to me on my way in this afternoon that my
speech is a special occasion for this association. // I said I
was honored -- and then Ira said "It's not often that we're
addressed by someone who lives in public housing." ]] ////
[[ The truth is, I am not a real estate wizard. When I was
elected to Congress back in 1966, we needed to make housing
arrangements up in Washington. At that time, Senator Al
Simpson's father, Millward, was retiring and moving back to
Wyoming. So I bought the Simpson place -- sight unseen -- made
the deal over the phone. When we got to Washington, there were
just two problems: we found out right away the house wasn't
quite big enough for the Bush family -- and we found out when we
put the place up for sale that it wasn't worth quite as much as
we paid for it. /// That's my claim to fame: I'm the only
2
person who ever lost money in Washington real estate in the last
20 years. /// Ira, where were you when I needed you? ]]
But few people have done more for the real estate industry
than I have. // Barbara and I have moved 28 times in our 44
years of marriage. /// Now I know what you're thinking -- what
a dream client my family would make for any realtor. /// In
fact, OMB is calculating the commissions we've paid over the
years -- measured as a percentage of the GNP. 1] ////
I came here today to lay out a set of housing initiatives --
a comprehensive plan to bring basic shelter and affordable
housing within reach of every American.
But before I outline my housing proposals, I want to speak
for a moment about the single most important factor in helping
millions of Americans realize the American Dream: the economy.
Because the truth is, there's no better housing policy than
a strong economy. One that provides jobs and opportunities for
advancement -- interest rates that open ownership opportunities
to hundreds of thousands of first-time home buyers. I know just
how important interest rates are when it comes to home buying: a
1 1/2 point drop means an additional 670,000 families able to
purchase that home they want.
And all signs point to continued strength in the economy.
November marks the seventh full year of economic expansion -- the
longest peacetime expansion in our nation's history.
Unemployment is lower now than at any point since the early 70s.
And here's one statistic that has to please all of you: home
3
mortgage rates are down from almost 14% back in November, 1982 to
less than 10% today.
All of us know that the way to keep this expansion alive is
to stick with the pro-growth policies that set it in motion --
the policies that provide the private sector room to do what only
it can do: create prosperity and higher standards of living.
Of course, part of any reasonable economic policy is getting
our fiscal house in order. // I want you to know that my
Administration is hanging tough for a responsible budget -- with
real deficit reduction, no smoke and mirrors.
We don't like sequestration -- no one does. But we'll live
with it if we have to -- if it's the only way to rein in spending
and bring that deficit down to the Gramm-Rudman target. I'm
ready to sign a budget bill -- whenever Congress is ready to
strip off all the expensive extras and add-ons hidden away in
those omnibus spending bills. A responsible budget is one of the
best signals the government can send for the sake of continued
growth.
And I'm optimistic -- optimistic that this economic
expansion will continue. Hopeful my Administration and the
Congress -- with the help of members like Bill and Claudine --
can agree on a responsible budget. Hopeful that we'll see more
and more Americans prospering -- providing better lives for their
families, and looking to all of you to help them realize their
dreams.
4
Today, as I told you a few moments ago, I've chosen this
occasion to announce a wide-ranging set of housing initiatives I
call Project Hope -- an initiative that stands for Homeownership
and Opportunity for People Everywhere.
Project HOPE addresses the full range of housing concerns:
from shelter for the homeless to affordable housing for low-
income families -- to initiatives that will help millions more
Americans achieve the American Dream: owning their own home.
Let's start with what Project HOPE will do for first-time
home buyers. You know first-hand about families working hard to
buy that first home -- families whose savings are no match for
skyrocketing prices. First-time buyers deserve our help -- and
they're going to get it. I will ask Congress to enact
legislation allowing first-time buyers -- or their parents -- to
draw without penalty on IRA savings as a downpayment for that
first home.
And we've got to expand the home-buying base -- bring more
low-income families into the ranks of homeowners. I will earmark
funds from the Federal Housing Financing Board, to be used for
mortgage rate buy-downs to make homeowning an option for more
low-income families.
Now, I know you've all seen the news on new housing starts.
It's time for all levels of government to take a second look at
some of the well-intended housing policies that actually decrease
our housing supply. I'm talking about the excessive rules,
regulations and red tape that add unnecessarily to the cost of
5
housing -- tens of thousands of dollars in some cases -- or
create perverse incentives to allow existing housing to
deteriorate.
I have asked my very able Secretary of HUD, Jack Kemp, to
convene a Blue Ribbon Commission to identify barriers to
affordable housing and to make recommendations on how those
barriers can be removed. And let me make the first
recommendation myself: no city, state or town should receive a
single cent of Project HOPE funds until they have identified
barriers to affordable housing -- and devise a plan to remove
them. ///
Project HOPE also means initiatives to improve low-income
housing. Let me say right away that my Administration rejects
costly new construction programs that, in the past, have too
often produced the housing projects that symbolize the very
absence of hope in our inner cities. This Administration remains
100% behind housing vouchers that let low-income families choose
for themselves where they wish to live.
Our challenge is to create incentives that maintain the low-
income housing we need. I will ask Congress to renew the Low-
Income Housing Tax Credit -- on one condition: that the Low-
Income Housing Tax Credit is part of a package that includes a
cut in the capital gains tax. I know the National Association of
Realtors has fought hard to make a capital gains cut a reality.
Well, the fight's not over. We're going to keep up the fight for
6
one simple reason: because a cut in capital gains is good for
growth. ///
And Project HOPE can help us reverse a trend that's stunting
some of the growth and development that would otherwise take
place in low-income areas. Too many poverty-stricken areas have
simply been redlined -- ruled too risky for lending. I am asking
the Federal Housing Authority to work with neighborhood non-
profit groups to identify responsible credit risks in poor areas,
and open a flow of credit for new low and moderate income
housing. The time has come to replace the redline with a
greenline -- to color these inner-city neighborhoods green for
growth.
But the real centerpiece of our plan for public housing is
resident management and, yes, resident ownership. That's the
idea behind our HOPE Grants initiative. It's already working:
In Kenilworth-Parkside, back in Washington, D.C. In Cochran
Gardens in St. Louis. And it's going to work right here -- at
the nation's second-largest public housing project in West
Dallas.
And the results are promising: with tenants in control, we
see better maintenance, more rents paid on time, a decrease in
people on the welfare roles as job opportunities emerge. And we
see something more: a sense of pride that is the very core of
any thriving community.
I hope these successes are only the beginning -- of a
nationwide shift towards tenant control, and ultimately towards
7
tenant ownership. I don't know any better way to revive hope in
our inner cities than to give tenants a say in running their
communities, a stake in the future and the hope that they, too,
can own a home. //
That's worth remembering. Because the true measure of
success isn't how many families we add to housing assistance
roles. It's how many families move up and out -- and into the
ranks of homeowners. ///
Project HOPE can make a difference for millions of Americans
who want to buy a home -- or who simply want to provide their
families decent housing and better hopes for the future. But
there are other people out there we've got to help. People who
stand in the shadows of what is otherwise a very bright economic
picture -- who live a nightmare in the midst of the American
Dream. We see them every day -- on the streets of our cities,
sleeping on steam grates, living out of cardboard boxes. The
homeless. //
Back in June, I went up to Covenant House in New York. I
met children there who've been out on the street for 4 or 5 years
-- from the time they were 12 and 13 years old. /// We can't
begin to imagine the horrors they go through.
For all of us, November is the time of year we start looking
forward to the holiday season: Thanksgiving, Christmas, New
Years. For the homeless, November is the time of year the
temperature starts to drop, and simply making it through the
night becomes a life and death struggle. // Homelessness is a
8
tragedy -- and Project HOPE won't be complete unless it reaches
out to help the homeless. // Because no child in America should
have to grow up on the streets. And every family in America
should have a roof over its head. ///
Now, my Administration is going to do its part to expand
emergency shelters. We're committed to fully funding the
McKinney Act. We're directing the FHA to set aside 10% of its
foreclosed housing for lease to homeless groups. And today, I
want to announce that -- as part of the savings and loans
recovery program -- I will make certain that a portion of the
properties from failed S&Ls be put to public use as facilities
for the homeless.
But we can't begin to eliminate homelessness -- to really
get at the root of the problem -- until we understand the various
reasons that lead to life on the streets. Homelessness isn't
just a matter of too little shelter space. There are the working
homeless, men and women -- some with children -- who hold down a
job, but still can't afford a home. But they are only a fraction
of the many homeless men and women who are literally incapable of
caring for themselves. And if we care about them, we've got to
take more than a one-dimensional approach to the problem.
The fact is this: Two-thirds of the homeless out on our
streets suffer from drug dependency or mental illness. For these
men and women, shelter alone is not enough. Homelessness is just
one symptom of the larger problems that prevent them from caring
for themselves.
9
The answer for the homeless who are mentally ill or addicted
to drugs is shelter plus: shelter supplemented by the necessary
support-services to get these people the help they need to live
in dignity. And that means a partnership -- a combined federal,
state and local effort -- to supply the funding and other
resources that constitute a comprehensive solution for the hard-
core homeless.
The key here is coordinating basic needs like shelter with
other social services -- to help the homeless get the treatment
they need to get control of their lives. To help them find and
hold down jobs. To help them manage a home. To help them regain
hope -- and leave life on the streets behind for good. ///
Helping the homeless. Helping low-income families find
affordable housing, decent housing. Helping more of the 80
million Americans who don't own a home join the ranks of
homeowners. Those are the aims of Project HOPE -- aims well
within our reach. And they are aims that deserve the active
support of every American who believes in the American Dream.
///
Thank you. God bless you -- and God bless the United States
of America.
# # #
action, way Holtz -Eak
Document No. 088452SS
WHITE HOUSE STAFFING MEMORANDUM
11/7/89
11/8/89 10:00 AM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
ROGICH
BATES
UNTERMEYER
ROGERS
CARD
WINSTON
CICCONI
DEMAREST
PINKERTON
FITZWATER
BOSKIN
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 10:00 AM, Wednesday, November 8, with a
copy to my office. Thank you.
RESPONSE:
OK Dongh Hay.te
IE : Olv 8 100 68
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
McGroarty/Dooley
November 7, 1989
12:30 pm
1983 NOV - 7 PM 1: 31
[REALTORS]
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
[Introductory remarks.] Thank you, Ira [Griben] -- the very
able President of the National Association of Realtors. And let
me say hello to two fine members of Congress who have travelled
down to Dallas today, Representatives Bill Thomas and Claudine
Schneider.
[[ Ira mentioned to me on my way in this afternoon that my
speech is a special occasion for this association. // I said I
was honored -- and then Ira said "It's not often that we're
addressed by someone who lives in public housing." ]] ////
[[ The truth is, I am not a real estate wizard. When I was
elected to Congress back in 1966, we needed to make housing
arrangements up in Washington. At that time, Senator Al
Simpson's father, Millward, was retiring and moving back to
Wyoming. So I bought the Simpson place -- sight unseen -- made
the deal over the phone. When we got to Washington, there were
just two problems: we found out right away the house wasn't
quite big enough for the Bush family -- and we found out when we
put the place up for sale that it wasn't worth quite as much as
we paid for it. /// That's my claim to fame: I'm the only
2
person who ever lost money in Washington real estate in the last
20 years. /// Ira, where were you when I needed you? ]]
But few people have done more for the real estate industry
than I have. // Barbara and I have moved 28 times in our 44
years of marriage. /// Now I know what you're thinking -- what
a dream client my family would make for any realtor. /// In
fact, OMB is calculating the commissions we've paid over the
years -- measured as a percentage of the GNP. ]] ////
I came here today to lay out a set of housing initiatives --
a comprehensive plan to bring basic shelter and affordable
housing within reach of every American.
But before I outline my housing proposals, I want to speak
for a moment about the single most important factor in helping
millions of Americans realize the American Dream: the economy.
Because the truth is, there's no better housing policy than
a strong economy. One that provides jobs and opportunities for
advancement -- interest rates that open ownership opportunities
to hundreds of thousands of first-time home buyers. I know just
how important interest rates are when it comes to home buying: a
1 1/2 point drop means an additional 670,000 families able to
purchase that home they want.
And all signs point to continued strength in the economy.
November marks the seventh full year of economic expansion -- the
longest peacetime expansion in our nation's history.
Unemployment is lower now than at any point since the early 70s.
And here's one statistic that has to please all of you: home
3
mortgage rates are down from almost 14% back in November, 1982 to
less than 10% today.
All of us know that the way to keep this expansion alive is
to stick with the pro-growth policies that set it in motion --
the policies that provide the private sector room to do what only
it can do: create prosperity and higher standards of living.
Of course, part of any reasonable economic policy is getting
our fiscal house in order. // I want you to know that my
Administration is hanging tough for a responsible budget -- with
real deficit reduction, no smoke and mirrors.
We don't like sequestration -- no one does. But we'll live
with it if we have to -- if it's the only way to rein in spending
and bring that deficit down to the Gramm-Rudman target. I'm
ready to sign a budget bill -- whenever Congress is ready to
strip off all the expensive extras and add-ons hidden away in
those omnibus spending bills. A responsible budget is one of the
best signals the government can send for the sake of continued
growth.
And I'm optimistic -- optimistic that this economic
expansion will continue. Hopeful my Administration and the
Congress -- with the help of members like Bill and Claudine --
can agree on a responsible budget. Hopeful that we'll see more
and more Americans prospering -- providing better lives for their
families, and looking to all of you to help them realize their
dreams.
4
Today, as I told you a few moments ago, I've chosen this
occasion to announce a wide-ranging set of housing initiatives I
call Project Hope -- an initiative that stands for Homeownership
and Opportunity for People Everywhere.
Project HOPE addresses the full range of housing concerns:
from shelter for the homeless to affordable housing for low-
income families -- to initiatives that will help millions more
Americans achieve the American Dream: owning their own home.
Let's start with what Project HOPE will do for first-time
home buyers. You know first-hand about families working hard to
buy that first home -- families whose savings are no match for
skyrocketing prices. First-time buyers deserve our help -- and
they're going to get it. I will ask Congress to enact
legislation allowing first-time buyers -- or their parents -- to
draw without penalty on IRA savings as a downpayment for that
first home.
arthur
And we've got to expand the home-buying base -- bring more
low-income families into the ranks of homeowners. I will earmark
funds from the Federal Housing Financing Board, to be used for
mortgage rate buy-downs to make homeowning an option for more
low-income families.
Now, I know you've all seen the news on new housing starts.
It's time for all levels of government to take a second look at
some of the well-intended housing policies that actually decrease
our housing supply. I'm talking about the excessive rules,
regulations and red tape that add unnecessarily to the cost of
5
housing -- tens of thousands of dollars in some cases -- or
create perverse incentives to allow existing housing to
deteriorate.
I have asked my very able Secretary of HUD, Jack Kemp, to
convene a Blue Ribbon Commission to identify barriers to
affordable housing and to make recommendations on how those
barriers can be removed. And let me make the first
recommendation myself: no city, state or town should receive a
single cent of Project HOPE funds until they have identified
barriers to affordable housing -- and devise a plan to remove
them. ///
Project HOPE also means initiatives to improve low-income
housing. Let me say right away that my Administration rejects
costly new construction programs that, in the past, have too
often produced the housing projects that symbolize the very
absence of hope in our inner cities. This Administration remains
100% behind housing vouchers that let low-income families choose
for themselves where they wish to live.
Our challenge is to create incentives that maintain the low-
income housing we need. I will ask Congress to renew the Low-
Income Housing Tax Credit -- on one condition: that the Low-
Income Housing Tax Credit is part of a package that includes a
cut in the capital gains tax. I know the National Association of
Realtors has fought hard to make a capital gains cut a reality.
Well, the fight's not over. We're going to keep up the fight for
6
one simple reason: because a cut in capital gains is good for
growth. ///
And Project HOPE can help us reverse a trend that's stunting
some of the growth and development that would otherwise take
place in low-income areas. Too many poverty-stricken areas have
simply been redlined -- ruled too risky for lending. I am asking
the Federal Housing Authority to work with neighborhood non-
profit groups to identify responsible credit risks in poor areas,
and open a flow of credit for new low and moderate income
housing. The time has come to replace the redline with a
greenline -- to color these inner-city neighborhoods green for
growth.
But the real centerpiece of our plan for public housing is
resident management and, yes, resident ownership. That's the
idea behind our HOPE Grants initiative. It's already working:
In Kenilworth-Parkside, back in Washington, D.C. In Cochran
Gardens in St. Louis. And it's going to work right here -- at
the nation's second-largest public housing project in West
Dallas.
And the results are promising: with tenants in control, we
see better maintenance, more rents paid on time, a decrease in
people on the welfare roles as job opportunities emerge. And we
see something more: a sense of pride that is the very core of
any thriving community.
I hope these successes are only the beginning -- of a
nationwide shift towards tenant control, and ultimately towards
7
tenant ownership. I don't know any better way to revive hope in
our inner cities than to give tenants a say in running their
communities, a stake in the future and the hope that they, too,
can own a home. //
That's worth remembering. Because the true measure of
success isn't how many families we add to housing assistance
roles. It's how many families move up and out -- and into the
ranks of homeowners. ///
Project HOPE can make a difference for millions of Americans
who want to buy a home -- or who simply want to provide their
families decent housing and better hopes for the future. But
there are other people out there we've got to help. People who
stand in the shadows of what is otherwise a very bright economic
picture -- who live a nightmare in the midst of the American
Dream. We see them every day -- on the streets of our cities,
sleeping on steam grates, living out of cardboard boxes. The
homeless. //
Back in June, I went up to Covenant House in New York. I
met children there who've been out on the street for 4 or 5 years
-- from the time they were 12 and 13 years old. /// We can't
begin to imagine the horrors they go through.
For all of us, November is the time of year we start looking
forward to the holiday season: Thanksgiving, Christmas, New
Years. For the homeless, November is the time of year the
temperature starts to drop, and simply making it through the
night becomes a life and death struggle. // Homelessness is a
8
tragedy -- and Project HOPE won't be complete unless it reaches
out to help the homeless. // Because no child in America should
have to grow up on the streets. And every family in America
should have a roof over its head. ///
Now, my Administration is going to do its part to expand
emergency shelters. We're committed to fully funding the
McKinney Act. We're directing the FHA to set aside 10% of its
foreclosed housing for lease to homeless groups. And today, I
want to announce that -- as part of the savings and loans
recovery program -- I will make certain that a portion of the
R
properties from failed S&Ls be put to public use as facilities
for the homeless.
But we can't begin to eliminate homelessness -- to really
get at the root of the problem -- until we understand the various
reasons that lead to life on the streets. Homelessness isn't
just a matter of too little shelter space. There are the working
homeless, men and women -- some with children -- who hold down a
job, but still can't afford a home. But they are only a fraction
of the many homeless men and women who are literally incapable of
caring for themselves. And if we care about them, we've got to
take more than a one-dimensional approach to the problem.
The?
The fact is this: Two-thirds of the homeless out on our
streets suffer from drug dependency or mental illness. For these
men and women, shelter alone is not enough. Homelessness is just
one symptom of the larger problems that prevent them from caring
for themselves.
9
The answer for the homeless who are mentally ill or addicted
to drugs is shelter plus: shelter supplemented by the necessary
support-services to get these people the help they need to live
in dignity. And that means a partnership -- a combined federal,
state and local effort -- to supply the funding and other
resources that constitute a comprehensive solution for the hard-
core homeless.
The key here is coordinating basic needs like shelter with
other social services -- to help the homeless get the treatment
they need to get control of their lives. To help them find and
hold down jobs. To help them manage a home. To help them regain
hope -- and leave life on the streets behind for good. ///
Helping the homeless. Helping low-income families find
affordable housing, decent housing. Helping more of the 80
million Americans who don't own a home join the ranks of
homeowners. Those are the aims of Project HOPE -- aims well
within our reach. And they are aims that deserve the active
support of every American who believes in the American Dream.
///
Thank you. God bless you -- and God bless the United States
of America.
# # #
THE WHITE HOUSE
WASHINGTON
November 8, 1989
MEMORANDUM FOR ROGER B. PORTER
FROM:
LARRY LINDSEY 4/K
SUBJECT:
National Association of Realtors Speech
p. 2
The empirical support for the claim that a 1.5 percentage
point drop in interest rates means an additional 670,000
home purchases is extremely weak. More significantly,
it could be read as more homes being constructed; we have
had a 1.5 percentage point drop since March and housing
starts have fallen.
I suggest that instead, we use some less precise figure,
such as: "thousands more American families can buy a home
each time interest rates fall".
p. 2
Use 84 months instead of 7th full year, it sounds more
impressive. Or, say that next month will mark the start
of the 8th year.
Also, there are a number of good news points to make on
housing. Some of them include:
Housing Starts have never stayed this high for this long in
history. The typical "housing cycle" used to be 4 to 5 years.
Housing affordability is holding up well. The index stood at
104.7 in September. That's up about 25 percent since the
recovery began in 1983 and up more than 50 percent since the
high interest rate days of the late 1970s and early 1980s.
There are two keys to affordability and both are moving in
the right direction.
-
Real Income has been growing since 1982. Between 1973
and 1981, the real income of the median family declined
9 percent. By 1987, we'd made up for that decline and
last year and again this year, we hit new records in real
income.
-2-
-
Interest Rates are way down. Fixed rate mortgages
(FHMLC) are now in single digits -- 9.8 percent. Long
term interest rates are down 150 basis points since
March.
p. 4 to end:
It is a serious mistake to announce the HOPE initiative
before the details have been agreed to among the relevant
agencies. Even if the word is used, details should be
kept for a time when they have been worked out.
p. 4:
Specifically, points on which there is no interagency
agreement should not be raised. THERE IS NO INTERAGENCY
AGREEMENT ON ALLOWING FIRST TIME HOMEBUYERS TO USE THERE
IRA MONEY. This completely short circuits the policy
process.
p. 4:
The expectations created about the amount of money we
are going to spend on the Federal Housing Finance Board
are so far above where we will go in the budget that we
will produce gales of laughter when the budget is
submitted. Don't hook the President into this.
p. 5:
The linkage between the Low Income Housing Tax Credit
and the capital gains tax is clever, but again, nobody
has signed off on it. In fact, Treasury testified
against extending the Low Income Housing Tax Credit.
p. 6:
Greenlining is clever rhetoric, but if you know what
policies lie behind it, you'd never get the President to
agree to it.
p. 8:
I am not aware that we have "directed the FHA to set
aside 10% of its foreclosed housing for lease to homeless
groups". Why not just direct them to set aside units,
rather than creating a performance standard that we do
not feel confident can be met. It is not clear that
homeless groups have the capacity to absorb anywhere near
10 percent of foreclosed units, particularly in
distressed areas such as Texas.
On the "points of light" front, the President should
challenge the realtors to use their knowledge about real
estate and real estate transactions to help facilitate
this process.
p. 8:
It is simply untrue that any substantial number of
homeless men and women and hold down full-time jobs can't
afford housing. This is a falsehood that the
-3-
President should not make credible by repeating. The
following sentences provide the necessary caveats, but
the sentence can be taken out of context and used for
all kinds of mischief. Preferable would be a sentence
linking affordability and our strategy of improving
purchasing power through vouchers and certificates rather
than build new public housing.
p. 8:
I also suggest removing the word "just" in the second
sentence. Homelessness isn't a matter of too little
shelter space. A possible reformulation: talking in
terms of it being "time to move our struggle against
homelessness beyond beds in shelters."
Otherwise, the statements about homelessness present the
President as being thoughtful and responsive to the issue of
homelessness and should bring kudos for a willingness to be frank
about the issue.
Kemp FAX
Secretary
the draft Realtors
speech:
492-5330
PAGE 1, In
thank Ira and all the
realtors f
Le guidance in helping to
pass the 1
forts are a tribute to
your dedic
ole to be free from
discrimina
The Realtors have told
us that th
in Fair Ho
home # #469-6039
) recognize their efforts
PAGE 2, In
e my Administration to
vigorous S
st and property tax
deductions
homeownership, and are
important
erity. (NOTE: The
Realtors S
ons)
PAGE 4, LI
buld not be called a
project,"
ization called Project
Hope which provides 1000 and Other assistance to developing
countries.
PAGE 4: Other edits as noted in text
PAGE 5: Other edits as noted in the text
PAGE 6, Insert C: good for jobs, and good for the expansion
of seed capital for new entrepreneurs. Not only do I want to cut
the capital gains tax to 15% for the nation, I want to eliminate
in pockets of poverty by passing Enterprise Zone legislation.
Enterprise Zones will help create the jobs and incomes that are
hand. the real keys to affordable housing. Jobs and housing go hand in
PAGE 6, Insert D: Over nine million Americans live in FHA-
insured homes, and every year nearly half a million first-time
Msetz
homebuyers use FHA to help them make their dream affordable. My
Administration has announced major reforms to ensure that FHA is
true to its primary mission of making housing affordable for low
and moderate income families. We will change the destructive
practices which have kept FHA out of the inner cities and
distressed communities that most need its support.
PAGE 6, Insert E: By encouraging non-profit and resident
groups, our nation will be blessed with new property owners who
will bring stability, pride and self-help to low income
neighborhoods.
PAGE 6: Other edits as noted in the text
PAGE 7: Edits are noted in the text
PAGE 8: Edits are noted in the text
PAGE 9, Insert F: Therefore, I am announcing a new initiative to
fund service-supported housing for the homeless who are mentally
impaired or are substance abusers.
The
in this initiative ,but
PAGE 9, Insert G: Our $6.8 billion dollars agonda is only a part
of what we must do to unleash the resources of the profit and
non-profit sectors, of churches and synagogues, states and
localities in our great national enterprise to assure safe,
decent, and affordable housing for all. Only then will we be
able to replace hopelessness with hope. Only then will we be
able to wage war on poverty and despair. And only then will we
be able to complete our vision of a free and prosperous America,
full of opportunity for people everywhere.
insert /
McGroarty/Dooley
November 7, 1989
helping to pass the 1986 Fan Hourry ofet.
12:30 pm
[REALTORS]
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
[Introductory remarks.] Thank you, Ira [Griben] -- the very
able President of the National Association of Realtors. And let
me say hello to two fine members of Congress who have travelled
down to Dallas today, Representatives Bill Thomas and Claudine
and know I can count on
Schneider.
you first as we
on your in stoong support
[[ Ira mentioned to me on my way in this afternoon that my
speech is a special occasion for this association. // I said I
was honored ---- and then Ira said "It's not often that we're
addressed by someone who lives in public housing." ]] ////
[[ The truth is, I am not a real estate wizard. When I was
elected to Congress back in 1966, we needed to make housing
arrangements up in Washington. At that time, Senator Al
Simpson's father, Millward, was retiring and moving back to
Wyoming. So I bought the Simpson place --- sight unseen -- made
the deal over the phone. When we got to Washington, there were
just two problems: we found out right away the house wasn't
quite big enough for the Bush family -- and we found out when we
put the place up for sale that it wasn't worth quite as much as
we paid for it. /// That's my claim to fame: I'm the only
2
person who ever lost money in Washington real estate in the last
20 years. /// Ira, where were you when I needed you? ]]
But few people have done more for the real estate industry
than I have. // Barbara and I have moved 28 times in our 44
years of marriage. /// Now I know what you're thinking -- what
a dream client my family would make for any realtor. /// In
fact, OMB is calculating the commissions we've paid over the
years -- measured as a percentage of the GNP. ]] ////
I came here today to lay out a set of housing initiatives --
a comprehensive plan to bring basic shelter and affordable
housing within reach of every American.
But before I outline my housing proposals, I want to speak
for a moment about the single most important factor in helping
millions of Americans realize the American Dream: the economy.
Because the truth is, there's no better housing policy than
a strong economy. One that provides jobs and opportunities for
advancement -- interest rates that open ownership opportunities
to hundreds of thousands of first-time home buyers. I know just
how important interest rates are when it comes to home buying: a
1 1/2 point drop means an additional 670,000 families able to
purchase that home they want.
And all signs point to continued strength in the economy.
November marks the seventh full year of economic expansion -- the
longest peacetime expansion in our nation's history.
Unemployment is lower now than at any point since the early 70s.
And here's one statistic that has to please all of you: home
3
mortgage rates are down from almost 14% back in November, 1982 to
less than 10% today.
All of us know that the way to keep this expansion alive is
to stick with the pro-growth policies that set it in motion --
the policies that provide the private sector room to do what only
it can do: create prosperity and higher standards of living.
Of course, part of any reasonable economic policy is getting
our fiscal house in order. // I want you to know that my
Administration is hanging tough for a responsible budget -- with
real deficit reduction, no smoke and mirrors.
We don't like sequestration --- no one does. But we'll live
with it if we have to -- if it's the only way to rein in spending
and bring that deficit down to the Gramm-Rudman target. I'm
ready to sign a budget bill -- whenever Congress is ready to
strip off all the expensive extras and add-ons hidden away in
those omnibus spending bills. A responsible budget is one of the
best signals the government can send for the sake of continued
growth.
And I'm optimistic -- optimistic that this economic
expansion will continue. Hopeful my Administration and the
Congress -- with the help of members like Bill and Claudine --
can agree on a responsible budget. Hopeful that we'll see more
and more Americans prospering -- providing better lives for their
families, and looking to all of you to help them realize their
dreams.
4
Today, as I told you a few moments ago, I've chosen this
occasion to announce a wide-ranging set of housing initiatives I
call Project Hope -- an initiative that stands for Homeownership
and Opportunity for People Everywhere.
Project HOPE addresses the full range of housing concerns:
from shelter for the homeless to affordable housing for low-
income families -- to initiatives that will help millions more
Americans achieve the American Dream: owning their own home.
Let's start with what Project HOPE will do for first-time
home buyers. You know first-hand about families working hard to
buy that first home -- families whose savings are no match for
skyrocketing prices. First-time buyers deserve our help -- and
they're going to get it. I will ask Congress to enact
legislation allowing first-time buyers -- or their parents -- to
draw without penalty on IRA savings as a downpayment for that
first home.
And we've got to expand the home-buying base -- bring more
low-income families into the ranks of homeowners. I will earmark
funds from the Federal Housing Financing Board, to be used for
mortgage rate buy-downs to make homeowning an option for more
low-income families.
Now, I know you've all seen the news on new housing starts.
It's time for all levels of government to take a second look at
some of the well-intended housing policies that actually decrease
our housing supply. I'm talking about the excessive rules,
regulations and red tape that add unnecessarily to the cost of
5
housing -- tens of thousands of dollars in some cases -- or
create perverse incentives to allow existing housing to
deteriorate.
I have asked my very able Secretary of HUD, Jack Kemp, to
convene a Blue Ribbon Commission to identify barriers to
affordable housing and to make recommendations on how those
barriers can be removed. And let me make the first
recommendation myself: no city, state or town should receive a
single cent of Project HOPE funds until they have identified
barriers to affordable housing -- and devise a plan to remove
them. ///
Project HOPE also means initiatives to improve low-income
housing. Let me say right away that my Administration rejects
costly new construction programs that, in the past, have too
often produced the housing projects that symbolize the very
absence of hope in our inner cities. This Administration remains
100% behind housing vouchers that let low-income families choose
for themselves where they wish to live.
Our challenge is to create incentives that maintain the low-
income housing we need. I will ask Congress to renew the Low-
Income Housing Tax Credit -- on one condition: that the Low-
Income Housing Tax Credit is part of a package that includes a
cut in the capital gains tax. I know the National Association of
Realtors has fought hard to make a capital gains cut a reality.
Well, the fight's not over. We're going to keep up the fight for
6
one simple reason: because a cut in capital gains is good for
growth. ///
And Project HOPE can help us reverse a trend that's stunting
some of the growth and development that would otherwise take
place in low-income areas. Too many poverty-stricken areas have
simply been redlined -- ruled too risky for lending. I am asking
the Federal Housing Authority to work with neighborhood non-
profit groups to identify responsible credit risks in poor areas,
and open a flow of credit for new low and moderate income
housing. The time has come to replace the redline with a
greenline -- to color these inner-city neighborhoods green for
growth.
But the real centerpiece of our plan for public housing is
resident management and, yes, resident ownership. That's the
idea behind our HOPE Grants initiative. It's already working:
In Kenilworth-Parkside, back in Washington, D.C. In Cochran
Gardens in St. Louis. And it's going to work right here -- at
the nation's second-largest public housing project in West
Dallas.
And the results are promising: with tenants in control, we
see better maintenance, more rents paid on time, a decrease in
people on the welfare roles as job opportunities emerge. And we
see something more: a sense of pride that is the very core of
any thriving community.
I hope these successes are only the beginning -- of a
nationwide shift towards tenant control, and ultimately towards
7
tenant ownership. I don't know any better way to revive hope in
our inner cities than to give tenants a say in running their
communities, a stake in the future and the hope that they, too,
can own a home. //
That's worth remembering. Because the true measure of
success isn't how many families we add to housing assistance
roles. It's how many families move up and out -- and into the
ranks of homeowners. ///
Project HOPE can make a difference for millions of Americans
who want to buy a home -- or who simply want to provide their
that saw story
stuch in my
families decent housing and better hopes for the future. But
there are other people out there we've got to help. People who
stand in the shadows of what is otherwise a very bright economic
picture ---- who live a nightmare in the midst of the American
Dream. We see them every day -- on the streets of our cities,
sleeping on steam grates, living out of cardboard boxes. The
homeless. //
Kid
cheamed
ngot
Back in June, I went up to Covenant House in New York. I
"I"
mm
met children there who've been out on the street for 4 or 5 years
my
8_
her
Bettin
from the time they were 12 and 13 years old. /// We can't
begin to imagine the horrors they go through.
& wearth figbred und.
a
For all of us, November is the time of year we start looking
forward to the holiday season: Thanksgiving, Christmas, New
Years. For the homeless, November is the time of year the
temperature starts to drop, and simply making it through the
night becomes a life and death struggle. // Homelessness is a
"If
have
a wish
I
could
a
wish, for every body, J'd
with that everyone Tab a home."
Some tids dream of tags new video
a hand,
Game, new whe
8
tragedy -- and Project HOPE won't be complete unless it reaches
out to help the homeless. // Because no child in America should
have to grow up on the streets. And every family in America
should have a roof over its head. ///
Now, my Administration is going to do its part to expand
emergency shelters. We're committed to fully funding the
McKinney Act. We're directing the FHA to set aside 10% of its
foreclosed housing for lease to homeless groups. And today, I
want to announce that -- as part of the savings and loans
recovery program -- I will make certain that a portion of the
properties from failed S&Ls be put to public use as facilities
for the homeless.
But we can't begin to eliminate homelessness -- to really
get at the root of the problem -- until we understand the various
reasons that lead to life on the streets. Homelessness isn't
just a matter of too little shelter space. There are the working
homeless, men and women -- some with children -- who hold down a
job, but still can't afford a home. But they are only a fraction
of the many homeless men and women who are literally incapable of
caring for themselves. And if we care about them, we've got to
take more than a one-dimensional approach to the problem.
The fact is this: Two-thirds of the homeless out on our
streets suffer from drug dependency or mental illness. For these
men and women, shelter alone is not enough. Homelessness is just
one symptom of the larger problems that prevent them from caring
for themselves.
9
The answer for the homeless who are mentally ill or addicted
to drugs is shelter plus: shelter supplemented by the necessary
support-services to get these people the help they need to live
in dignity. And that means a partnership -- a combined federal,
state and local effort -- to supply the funding and other
resources that constitute a comprehensive solution for the hard-
core homeless.
The key here is coordinating basic needs like shelter with
other social services -- to help the homeless get the treatment
they need to get control of their lives. To help them find and
hold down jobs. To help them manage a home. To help them regain
hope -- and leave life on the streets behind for good. 111
Helping the homeless. Helping low-income families find
affordable housing, decent housing. Helping more of the 80
million Americans who don't own a home join the ranks of
homeowners. Those are the aims of Project HOPE -- aims well
within our reach. And they are aims that deserve the active
support of every American who believes in the American Dream.
///
Thank you. God bless you -- and God bless the United States
of America.
# # #
Reconcil.
McGroarty/Dooley
November 8, 1989
4:00 pm
[REALTORS]
PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
Thank you, Ira [Gribin]. I know I speak for everyone here
today when I salute you for serving so ably as President of the
National Association of Realtors. My best wishes to your
successor, seated down in front here: Norm Flynn. And let me
recognize the man who's doing such wonderful work as Secretary of
HUD, Jack Kemp, and two fine members of Congress who have
travelled down on Air force One with me today, Senator Phil Gramm
and Dallas' own Congressman, Steve Bartlett.
[[ Ira mentioned to me on my way in this afternoon that my
speech is a special occasion for this association. // I said I
was honored -- and then Ira said "It's not often that we're
addressed by someone who lives in public housing." ]] ////
[[ The truth is, I am not a real estate wizard. When I was
elected to Congress back in 1966, we needed to make housing
arrangements up in Washington. At that time, Senator Al
Simpson's father, Milward, was retiring and moving back to
Wyoming. So I bought the Simpson place -- sight unseen -- made
the deal over the phone. When we got to Washington, there were
just two problems: we found out right away the house wasn't
quite big enough for the Bush family -- and we found out when we
2
put the place up for sale that it wasn't worth quite as much as
we paid for it. /// That's my claim to fame: I'm the only
person who ever lost money in Washington real estate in the last
20 years. /// Ira, where were you when I needed you? ]]
But few people have done more for the real estate industry
than I have. // Barbara and I have moved 28 times in our 44
years of marriage. /// Now I know what you're thinking -- what
a dream client my family would make for any realtor. /// In
fact, OMB is calculating the commissions we've paid over the
years -- measured as a percentage of the GNP. ]] ////
agenda help
I came here today to lay out a comprehensive plan to bring
basic shelter and affordable housing within reach of millions of
AMERICA'S
Americans. I call it Project HOPE -- Homeownership and
Opportunity for People Everywhere.
But before I tell you about Project HOPE, I want to speak
for a moment about the single most important factor in helping
millions of Americans realize the American Dream: the economy.
Because the truth is, there's no better housing policy than
and we've got one
wages
a strong economy. One that provides jobs and opportunities for
advancement longtenm interest rates that open ownership opportunities
to hundreds of thousands of first-time home buyers. That's
2
almost a
check
crucial -- because a 1 1/2 point drop means an additional half
more
million, families able to purchase that home they want.
And all signs point to continued strength in the economy.
84THMONTH
November marks the seventh full year of economic expansion -- the
longest peacetime expansion in our nation's history. on rocord,
HOUSID
3
fortheyear
Unemployment is lower now than at any point since the early 70s.
really hits nme
And here's one statistic that has to please all of you: home
mortgage rates are down from almost 14% back in November, 1982 to
and housing starts have never stayed this hisa fN this long in history.
less than 10% today. and my goal IS to pursue policies that will bring
them down even further.
Of course, part of any reasonable economic policy is getting
our fiscal house in order. // I want you to know that my
Administration is hanging tough for a responsible budget -- with
real deficit reduction, no smoke and mirrors.
We don't like sequestration -- no one does. But we'll live
Checken
with it if we have to -- if it's the only way to rein in spending
and bring that deficit down to the Gramm-Rudman target. I'm
w/
ready to sign a budget bill -- whenever Congress is ready to
strip off all the costly extras and add-ons hidden away in those
omnibus spending bills.
And I'm optimistic -- optimistic that my Administration and
the Congress can agree on a responsible budget. Optimistic that
we'll see more and more Americans prospering -- providing better
lives for their families, and looking to all of you to help them
realize their dreams.
moest ref. to Faci Hunsing
John
But more must be done and, initiative
That's where Project the HOPE comes in. These initiatives
address the full range of housing concerns: from shelter for the
homeless to affordable housing for low-income families -- to
initiatives that will help millions more Americans own their own
home.
Let's start right there -- with what Project HOPE can do for
first-time home buyers. You all know about families working to
4
buy that first home families whose savings are no match for
well, they
skyrocketing prices. First-time buyers deserve our help -- and
B F. they're going to get it. will ask Congress to enact
[Cor their parents
legislation allowing first-time buyers to draw, without penalty,
on IRA savings as a downpayment for that first home
But every american should share the driom of ] home ounership.
And we ve got to expand the home-buying base bring more
That's whil
low-income families into the ranks of homeowners. I will earmark
funds from the Federal Housing Financing Board, for mortgage rate
and moderate
buy-downs to make homeowning an option for more low-income
families.
our
(initistive also)
efforts
And Project HOPE means initiatives to improve low-income
as you know,
housing. Let me say right away that my Administration rejects
public
costly new construction programs that, in the past, have too
often produced the housing projects that symbolize the very
absence of hope in our inner cities. This Administration is 100%
behind housing vouchers that let low-income families choose where
they want to live.
5.
The real/
Our challenge is to create incentives that maintain the low-
First- housing vouchers
second
income housing we need. I will ask Congress to renew the Low-
bee but should make it
Income Housing Tax Credit. ## on one condition: //// The
a
Low-Income Housing Tax Credit must be part of a package that also
includes a cut in the capital gains tax.
A cut in capital gains means an increase in jobs, investment
and growth. I know the National Association of Realtors has
fought hard to make a capital gains cut a reality. Well, the
fight's not over.
///
Insert 2
5
stet
And Project HOPE can help us reverse a trend that stunting
growth and development in low-income areas. Too many of these
poverty-stricken areas have simply been redlined -- ruled too
risky for lending. I will direct the Federal Housing Authority
to work with neighborhood non-profit groups to open a new flow of
credit for low and moderate income housing. The time has come to
replace the redline with a greenline -- to color these inner-city
neighborhoods green for growth.
to eliminate pockets of poverter by passing
And there's another way we can improve living conditions in
legislation.
low-income areas. I'm talking about Enterprise Zones. I've
to called help create on Congress the jobsand to create incomes at that least are 50 the Enterprise real key Zones to affordable over housing
the next four years. I hope Congress gets the message. It's
time we gave the green light to the urban entrepreneur.
You know, Winston Churchill once said about building a home,
"We shape it -- thereafter, it shapes us." The same is true when
it comes to low-income housing policy.
the real conterpree of our 18 to recapture the American drem
That's why Project HOPE includes initiatives to expand
initiative:
resident management and, yes, resident ownership. That's the
idea behind our HOPE Grants initiative. It's already working:
In Kenilworth-Parkside, back in Washington, D.C. In Cochran
By eucouraging non-profit and resident groups,
Gardens in St. Louis. And it's going to work right here -- at
the nation's second-largest public housing project in West Dallas
-- and all across the United States.
The results are promising: with tenants in control, we see
better maintenance, more rents paid on time, a decrease in people
of home ownership for those who have been left behind * through
6
on the welfare rolls. And we see something more: a sense of
pride that is the very core of any thriving community.
I don't know any better way to revive hope in our inner
cities than to give tenants a say in running their communities, a
belief
stake in the future and the hope that they, too, can own a home.
Because the true measure of success isn't how many families we
rolls.
add to housing assistance roles. It's how many families move up
and out -- and into the ranks of homeowners. ///
Project HOPE can make a difference for millions of Americans
who want to buy a home or who simply want to provide their
families decent housing and better hopes for the future But
more to the HOPE initiative and now I'm take ng about Omericas
theres are other people out there we've got to help. People who
stet
stand in the shadows of what is otherwise a very bright economic
picture -- who live a nightmare in the midst of the American
Dream. We see them every day -- on the streets of our cities,
sleeping on steam grates, living out of cardboard boxes. The
homeless. //
most
For all of us, November is the time of year we start looking
forward to the holiday season: Thanksgiving, Christmas, New
Years. For the homeless, November is the time of year the
temperature starts to drop, and simply making it through the
night becomes a life and death struggle. / /
Think about the children. Pretty soon, your kids will be
dreaming about Christmas toys -- that new video game or new bike
they'd like. It's different for kids on the street. I read a
story not long ago that's stuck in my mind about a little boy
7
without a home. Here's what he dreams about at night: "I
dreamed my Mom got her Section 8," he said, "and we got a house
with a great big back yard."
But in the morning, for that little boy, the dream is over.
He is up at 5:30, out of a shelter and back onto the streets. ///
That's a tragedy -- because no child in America should have
to grow up on the streets. And every family in America should
have a roof over its head. ///
My Administration is going to do its part to expand
emergency shelters. We're committed to fully funding the
McKinney Act. And today, I want to announce that we're directing
the FHA to set aside 10% of its foreclosed housing for lease to
homeless groups. And -- as part of the savings and loans
recovery program -- I will make certain that a portion of the
,
properties from failed S&Ls be put to public use as facilities
to fl ght poverty
for and the homeless ness ]
But we can't begin to eliminate homelessness until we
understand the various reasons that lead to life on the streets.
stet
Homelessness isn't just a matter of too little shelter space.
There are the working homeless, men and women -- some with
children -- who hold down a job, but still can't afford a home.
more
But they are only a fraction of the many homeless men and women
who are literally incapable of caring for themselves.
these
the
impacred those
The answer for the homeless who are mentally ill or addicted
oralcohols
to drugs, is shelter plus: shelter supplemented by the necessary
support-services to get these people the help they need to live
8
in dignity. And that means a partnership -- a combined federal,
state and local effort -- to supply the funding and other
resources that constitute a comprehensive solution for the hard-
core homeless. And if we care about them, we've got to take more
than a one-dimensional approach to the problem.
The key here is coordinating basic needs like shelter with
other social services --- to help the homeless get the treatment
they need to get control of their lives. To help them find and
LL
newinitiative
hold down jobs. To help them regain hope -- and leave life on
the streets behind for good. ///
Helping the homeless. Helping low-income families find
affordable housing, decent housing. Helping more of the 80
million Americans who don't own a home join the ranks of
homeowners. Those are the aims of Project HOPE initiative aims well
the
within our reach.
Think about that little boy I spoke about a moment ago.
Think about his dream --- because it's really the American Dream -
- what all of us want for ourselves and our families. ///
Thank you. God bless you -- and God bless the United States
of America.
# # #
Insert I
We must unleash the
NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
THANK YOU, IRA [GRIBIN]. I KNOW I SPEAK FOR
EVERYONE HERE TODAY WHEN I SALUTE YOU FOR SERVING SO
ABLY AS PRESIDENT OF THE NATIONAL ASSOCIATION OF
REALTORS. MY BEST WISHES TO YOUR SUCCESSOR: NORM
FLYNN. // LET ME ALSO RECOGNIZE THE MAN WHO'S DOING
SUCH WONDERFUL WORK, PUTTING THROUGH THE TOUGH NEW
REFORMS THAT ENSURE THAT HIS AGENCY SERVES PEOPLE IN
NEED, MY SECRETARY OF HUD, JACK KEMP. AND TWO FINE
MEMBERS OF CONGRESS WHO HAVE TRAVELLED DOWN ON AIR
FORCE ONE WITH ME TODAY, SENATOR PHIL GRAMM AND DALLAS'
OWN CONGRESSMAN, STEVE BARTLETT.
[[ IRA MENTIONED TO ME THIS AFTERNOON THAT MY
SPEECH IS A SPECIAL OCCASION FOR THIS ASSOCIATION. //
I SAID I WAS HONORED -- AND THEN IRA SAID "IT'S NOT
OFTEN THAT WE'RE ADDRESSED BY SOMEONE WHO LIVES IN
PUBLIC HOUSING." ]] ////
- 2 -
[[ THE TRUTH IS, I AM NOT A REAL ESTATE WIZARD.
WHEN I WAS ELECTED TO CONGRESS BACK IN 1966, WE NEEDED
TO MAKE HOUSING ARRANGEMENTS UP IN WASHINGTON. AT THAT
TIME, SENATOR AL SIMPSON'S FATHER, MILWARD, WAS
RETIRING AND MOVING BACK TO WYOMING. SO I BOUGHT THE
SIMPSON PLACE -- SIGHT UNSEEN -- MADE THE DEAL OVER THE
PHONE. WHEN WE GOT TO WASHINGTON, THERE WERE JUST TWO
PROBLEMS: WE FOUND OUT RIGHT AWAY THE HOUSE WASN'T
QUITE BIG ENOUGH FOR THE BUSH FAMILY -- AND WE FOUND
OUT WHEN WE PUT THE PLACE UP FOR SALE THAT IT WASN'T
WORTH QUITE AS MUCH AS WE PAID FOR IT. /// THAT'S MY
CLAIM TO FAME: I'M THE ONLY PERSON WHO EVER LOST MONEY
IN WASHINGTON REAL ESTATE IN THE LAST 20 YEARS. ///
IRA, WHERE WERE YOU WHEN I NEEDED YOU? ]]
BUT FEW PEOPLE HAVE DONE MORE FOR THE REAL ESTATE
INDUSTRY THAN I HAVE. // BARBARA AND I HAVE MOVED 28
TIMES IN OUR 44 YEARS OF MARRIAGE. /// NOW I KNOW
WHAT YOU'RE THINKING -- WHAT A DREAM CLIENT MY FAMILY
WOULD MAKE FOR ANY REALTOR. /// IN FACT, OMB IS
CALCULATING THE COMMISSIONS WE'VE PAID OVER THE
YEARS -- MEASURED AS A PERCENTAGE OF THE GNP. ]] ////
- 3 -
I CAME HERE TODAY TO LAY OUT A COMPREHENSIVE
AGENDA TO HELP BRING BASIC SHELTER AND AFFORDABLE
HOUSING WITHIN REACH OF MILLIONS OF AMERICANS. I CALL
IT AMERICA'S HOPE -- HOMEOWNERSHIP AND OPPORTUNITY FOR
PEOPLE EVERYWHERE.
BUT BEFORE I TELL YOU ABOUT HOPE, I WANT TO SPEAK
FOR A MOMENT ABOUT THE SINGLE MOST IMPORTANT FACTOR IN
HELPING MILLIONS OF AMERICANS REALIZE THE AMERICAN
DREAM: THE ECONOMY.
BECAUSE THE TRUTH IS, THERE'S NO BETTER HOUSING
POLICY THAN A GROWING ECONOMY. AND WE'VE GOT ONE. ONE
THAT PROVIDES JOBS, WAGES AND OPPORTUNITIES FOR
ADVANCEMENT -- LONG-TERM INTEREST RATES THAT OPEN
OWNERSHIP OPPORTUNITIES TO HUNDREDS OF THOUSANDS OF
FIRST-TIME HOME BUYERS. BECAUSE EVERY DROP IN INTEREST
RATES MAKES IT POSSIBLE FOR MORE FAMILIES TO BUY THAT
HOME THEY WANT. AND I PLEDGE THAT MY ADMINISTRATION
WILL VIGOROUSLY SUPPORT THE MORTGAGE INTEREST AND
PROPERTY TAX DEDUCTIONS. THESE DEDUCTIONS ENCOURAGE
HOME OWNERSHIP -- AND ARE IMPORTANT TO OUR OVERALL
ECONOMIC PROSPERITY.
- 4 -
AND ALL SIGNS POINT TO CONTINUED STRENGTH IN THE
ECONOMY. NOVEMBER MARKS THE 84TH MONTH OF ECONOMIC
EXPANSION -- THE LONGEST PEACETIME EXPANSION ON RECORD.
AND HERE'S ONE STATISTIC THAT REALLY HITS HOME:
MORTGAGE RATES ARE DOWN FROM ALMOST 14% BACK IN
NOVEMBER 1982 TO LESS THAN 10% TODAY. MY GOAL IS TO
PURSUE POLICIES THAT WILL BRING THEM DOWN EVEN FURTHER.
OF COURSE, PART OF ANY RESPONSIBLE ECONOMIC POLICY
IS GETTING OUR FISCAL HOUSE IN ORDER. 11 I WANT YOU
TO KNOW THAT MY ADMINISTRATION IS HANGING TOUGH FOR A
RESPONSIBLE BUDGET -- WITH REAL DEFICIT REDUCTION, NO
SMOKE AND MIRRORS.
WE DON'T LIKE SEQUESTRATION -- NO ONE DOES. BUT
WE'LL LIVE WITH IT IF WE HAVE TO -- IF IT'S THE ONLY
WAY TO REIN IN SPENDING AND BRING THAT DEFICIT DOWN TO
THE GRAMM-RUDMAN TARGET. I'M READY TO SIGN A BUDGET
BILL -- WHENEVER CONGRESS IS READY TO STRIP OFF ALL THE
COSTLY EXTRAS AND ADD-ONS HIDDEN AWAY IN THOSE OMNIBUS
SPENDING BILLS.
- 5 -
AND I'M OPTIMISTIC -- OPTIMISTIC THAT MY
ADMINISTRATION AND THE CONGRESS CAN AGREE ON A
RESPONSIBLE BUDGET. OPTIMISTIC THAT WE'LL SEE MORE AND
MORE AMERICANS PROSPERING -- PROVIDING BETTER LIVES FOR
THEIR FAMILIES, AND LOOKING TO ALL OF YOU TO HELP THEM
REALIZE THEIR DREAMS.
AND I KNOW WE CAN COUNT ON YOU -- JUST AS WE
COUNTED ON YOUR STRONG SUPPORT IN HELPING TO PASS THE
1988 FAIR HOUSING ACT. IRA, THAT'S A TRIBUTE TO YOUR
LEADERSHIP -- TO YOUR ORGANIZATION AND ITS DEDICATION
TO THE RIGHT OF ALL PEOPLE TO BE FREE FROM
DISCRIMINATION AND PREJUDICE.
BUT MORE MUST BE DONE, AND THAT'S WHERE THE HOPE
INITIATIVE COMES IN. THIS INITIATIVE WILL ADDRESS THE
FULL RANGE OF HOUSING CONCERNS: FROM SHELTER FOR THE
HOMELESS TO AFFORDABLE HOUSING FOR LOW-INCOME FAMILIES
-- TO INITIATIVES THAT OPEN ACCESS TO EXPANDED JOB
OPPORTUNITIES, AND HELP MILLIONS MORE AMERICANS OWN
THEIR OWN HOME.
- 6 -
LET'S START RIGHT THERE -- WITH WHAT HOPE CAN DO
FOR FIRST-TIME HOME BUYERS. YOU ALL KNOW ABOUT
FAMILIES WORKING TO BUY THAT FIRST HOME. WELL, THEY
DESERVE OUR HELP -- AND THEY'RE GOING TO GET IT. I
WILL ASK CONGRESS TO ENACT LEGISLATION ALLOWING
FIRST-TIME BUYERS TO DRAW, WITHOUT PENALTY, ON I.R.A.
SAVINGS AS A DOWNPAYMENT FOR THAT FIRST HOME.
OUR HOPE INITIATIVE ALSO MEANS EFFORTS TO IMPROVE
LOW-INCOME HOUSING. AS YOU KNOW, MY ADMINISTRATION
REJECTS COSTLY NEW PUBLIC CONSTRUCTION PROGRAMS THAT,
IN THE PAST, HAVE TOO OFTEN PRODUCED THE HOUSING
PROJECTS THAT SYMBOLIZE THE VERY ABSENCE OF HOPE IN OUR
INNER CITIES. THERE'S A BETTER WAY: HOUSING VOUCHERS
-- THAT EMPOWER LOW-INCOME FAMILIES TO CHOOSE WHERE
THEY WANT TO LIVE.
- 7 -
OUR IDEA IS TO CREATE INCENTIVES FOR THE
CONSTRUCTION AND REHABILITATION OF THE HOUSING LOW-
INCOME FAMILIES NEED. THAT'S WHY I'M CALLING ON
CONGRESS TO RENEW THE LOW-INCOME HOUSING TAX CREDIT --
BUT MAKE IT PART OF A PACKAGE THAT ALSO INCLUDES A CUT
IN THE CAPITAL GAINS TAX. A CUT IN CAPITAL GAINS MEANS
AN INCREASE IN JOBS, INVESTMENT AND GROWTH. I KNOW THE
NATIONAL ASSOCIATION OF REALTORS HAS FOUGHT HARD TO
MAKE A CAPITAL GAINS CUT A REALITY. WELL, THE FIGHT'S
NOT OVER. ///
BUT WE'VE GOT TO GO ONE STEP FURTHER -- IN THOSE
POCKETS OF POVERTY WHERE DESPAIR HAS DRIVEN OUT HOPE,
WE'VE GOT TO ELIMINATE THE CAPITAL GAINS TAX
ALTOGETHER. THAT'S A KEY ELEMENT IN THE ENTERPRISE
ZONE LEGISLATION I WANT TO SEE ENACTED. I'VE CALLED ON
CONGRESS TO CREATE AT LEAST 50 ENTERPRISE ZONES OVER
THE NEXT FOUR YEARS TO HELP CREATE THE JOBS AND INCOMES
THAT ARE THE REAL KEY TO AFFORDABLE HOUSING. I HOPE
CONGRESS GETS THE MESSAGE. IT'S TIME WE GAVE THE GREEN
LIGHT TO OUR INNER CITY ENTREPRENEURS.
- 8 -
AND HOPE CAN HELP US REVERSE A TREND THAT'S
STUNTING GROWTH AND DEVELOPMENT IN LOW-INCOME AREAS.
OVER NINE MILLION AMERICANS LIVE IN FHA-INSURED HOMES,
AND EVERY YEAR NEARLY HALF A MILLION FIRST-TIME
HOMEBUYERS USE FHA TO HELP THEM MAKE THEIR DREAM
AFFORDABLE.
MY ADMINISTRATION HAS ANNOUNCED MAJOR REFORMS TO
ENSURE THAT FHA IS TRUE TO ITS PRIMARY MISSION OF
MAKING HOUSING AFFORDABLE FOR LOW AND MODERATE INCOME
FAMILIES. WE WILL CHANGE THE DESTRUCTIVE PRACTICES
WHICH HAVE KEPT FHA OUT OF THE INNER CITIES AND
DISTRESSED COMMUNITIES THAT MOST NEED ITS SUPPORT.
- 9 -
AND -- AT ALL LEVELS OF GOVERNMENT -- WE'VE GOT TO
TAKE A SECOND LOOK AT SOME OF THE WELL-INTENDED HOUSING
POLICIES THAT ACTUALLY DECREASE OUR HOUSING SUPPLY.
I'M TALKING ABOUT THE EXCESSIVE RULES, REGULATIONS AND
RED TAPE THAT ADD UNNECESSARILY TO THE COST OF HOUSING
-- BY TENS OF THOUSANDS OF DOLLARS -- OR CREATE
PERVERSE INCENTIVES TO ALLOW EXISTING HOUSING TO
DETERIORATE. I HAVE ASKED JACK KEMP TO CONVENE A BLUE
RIBBON COMMISSION TO IDENTIFY BARRIERS TO AFFORDABLE
HOUSING -- AND TO MAKE RECOMMENDATIONS ON HOW THESE
BARRIERS CAN BE REMOVED. AND LET ME MAKE THE FIRST
RECOMMENDATION RIGHT HERE: NO CITY, STATE OR TOWN
SHOULD RECEIVE A SINGLE PENNY OF HOPE FUNDING UNTIL
THEY HAVE IDENTIFIED BARRIERS TO AFFORDABLE HOUSING IN
THEIR OWN BACK YARD -- AND START TAKING STEPS TO REMOVE
THEM. ////
YOU KNOW, SOMEONE ONCE SAID "WE SHAPE BUILDINGS --
THEREAFTER, THEY SHAPE US." THE SAME IS TRUE WHEN IT
COMES TO LOW-INCOME HOUSING POLICY.
- 10 -
THAT'S THE REAL CENTERPIECE OF OUR HOPE
INITIATIVE: TO RECAPTURE THE AMERICAN DREAM OF HOME
OWNERSHIP FOR THOSE WHO HAVE BEEN LEFT BEHIND --
THROUGH RESIDENT MANAGEMENT AND RESIDENT OWNERSHIP.
IT'S ALREADY WORKING: IN KENILWORTH-PARKSIDE, BACK IN
WASHINGTON, D.C. IN COCHRAN GARDENS IN ST. LOUIS. BY
ENCOURAGING NON-PROFIT AND RESIDENT GROUPS, IT'S GOING
TO WORK RIGHT HERE IN DALLAS -- AT PLACES LIKE RHOADS
TERRACE UNDER THE TAKE-CHARGE LEADERSHIP OF A
COURAGEOUS MOTHER NAMED JESSIE TOLES -- AND ALL ACROSS
THE UNITED STATES.
THE RESULTS ARE PROMISING: WITH TENANTS IN
CONTROL, WE SEE BETTER MAINTENANCE, MORE RENTS PAID ON
TIME, A DECREASE IN PEOPLE ON THE WELFARE ROLLS. AND
WE SEE SOMETHING MORE: A SENSE OF PRIDE THAT IS THE
VERY CORE OF ANY THRIVING COMMUNITY.
- 11 -
I DON'T KNOW ANY BETTER WAY TO REVIVE HOPE IN OUR
INNER CITIES THAN TO GIVE TENANTS THEMSELVES A SAY IN
RUNNING THEIR COMMUNITIES, A STAKE IN THE FUTURE AND
THE BELIEF THAT THEY, Too, CAN OWN A HOME. BECAUSE THE
TRUE MEASURE OF SUCCESS ISN'T HOW MANY FAMILIES WE ADD
TO HOUSING ASSISTANCE ROLLS. IT'S HOW MANY FAMILIES
MOVE UP AND OUT -- AND INTO THE RANKS OF HOMEOWNERS.
///
BUT THERE'S MORE TO THE HOPE INITIATIVE. AND NOW
I'M TALKING ABOUT PEOPLE WHO STAND IN THE SHADOWS OF
WHAT IS OTHERWISE A VERY BRIGHT ECONOMIC PICTURE -- WHO
LIVE A NIGHTMARE IN THE MIDST OF THE AMERICAN DREAM.
WE SEE THEM EVERY DAY -- ON THE STREETS OF OUR CITIES,
SLEEPING ON STEAM GRATES, LIVING OUT OF CARDBOARD
BOXES. THE HOMELESS. 11
FOR MOST OF US, NOVEMBER IS THE TIME OF YEAR WE
START LOOKING FORWARD TO THE HOLIDAY SEASON:
THANKSGIVING, CHRISTMAS, NEW YEARS. FOR THE HOMELESS,
NOVEMBER IS THE TIME OF YEAR THE TEMPERATURE STARTS TO
DROP, AND SIMPLY MAKING IT THROUGH THE NIGHT BECOMES A
LIFE AND DEATH STRUGGLE. 11
- 12 -
THINK ABOUT THE CHILDREN. PRETTY SOON, YOUR KIDS
WILL BE DREAMING ABOUT CHRISTMAS TOYS -- THAT NEW VIDEO
GAME OR NEW BIKE THEY'D LIKE. IT'S DIFFERENT FOR KIDS
ON THE STREET. I READ A STORY NOT LONG AGO THAT'S
STUCK IN MY MIND ABOUT A LITTLE BOY WITHOUT A HOME.
HERE'S WHAT HE DREAMS ABOUT AT NIGHT: "I DREAMED MY
MOM GOT HER [HOUSING ASSISTANCE]," HE SAID, "AND WE GOT
A HOUSE WITH A GREAT BIG BACK YARD."
BUT IN THE MORNING, FOR THAT LITTLE BOY, THE DREAM
IS OVER. HE IS UP AT 5:30, OUT OF A SHELTER AND BACK
ONTO THE STREETS. ///
THAT'S A TRAGEDY -- BECAUSE NO CHILD IN AMERICA
SHOULD HAVE TO GROW UP ON THE STREETS. AND EVERY
FAMILY IN AMERICA SHOULD HAVE A ROOF OVER ITS HEAD.
///
- 13 -
MY ADMINISTRATION IS GOING TO DO ITS PART TO
EXPAND EMERGENCY SHELTERS. YESTERDAY, I SIGNED A BILL
THAT SUBSTANTIALLY INCREASES FUNDING UNDER THE MCKINNEY
ACT TO REDUCE HOMELESSNESS. AND WE'RE GOING TO
CONTINUE TO PUSH FOR FULL FUNDING OF HOMELESS PROGRAMS
UNDER THAT LAW. TODAY, I'M ALSO ASKING JACK KEMP TO
FIND NEW WAYS TO PUT A PORTION OF OUR FHA FORECLOSURES
INTO THE HANDS OF NON-PROFIT GROUPS -- GROUPS THAT ARE
DOING SUCH WONDERFUL WORK REHABILITATING ABANDONED
HOMES, AND FIGHTING POVERTY IN OUR INNER CITIES.
BUT THE REAL ANSWER FOR THE HOMELESS -- THOSE WITH
MENTAL PROBLEMS OR DEPENDENT ON DRUGS OR ALCOHOL, IS
SHELTER PLUS CARE: SHELTER SUPPLEMENTED BY THE
NECESSARY SUPPORT-SERVICES TO GET THESE PEOPLE THE HELP
THEY NEED TO LIVE IN DIGNITY. AND THAT MEANS A
PARTNERSHIP -- A COMBINED FEDERAL, STATE AND LOCAL
EFFORT -- TO SUPPLY THE FUNDING AND OTHER RESOURCES
THAT CONSTITUTE A COMPREHENSIVE SOLUTION FOR THE
HARD-CORE HOMELESS. AND IF WE CARE ABOUT THEM, WE'VE
GOT TO TAKE MORE THAN A ONE-DIMENSIONAL APPROACH TO THE
PROBLEM.
- 14 -
THE HOPE INITIATIVE WILL INCLUDE IMPROVED
COORDINATION OF BASIC NEEDS LIKE SHELTER WITH OTHER
SOCIAL SERVICES -- TO HELP THE HOMELESS GET THE
TREATMENT THEY NEED TO GET CONTROL OF THEIR LIVES. TO
HELP THEM FIND AND HOLD DOWN JOBS. TO HELP THEM REGAIN
HOPE -- AND LEAVE LIFE ON THE STREETS BEHIND FOR GOOD.
III
HELPING THE HOMELESS. HELPING LOW-INCOME FAMILIES
FIND AFFORDABLE HOUSING, DECENT HOUSING. HELPING MORE
OF THE 80 MILLION AMERICANS WHO DON'T OWN A HOME JOIN
THE RANKS OF HOMEOWNERS. THOSE ARE THE AIMS OF THE
HOPE INITIATIVE -- AIMS WELL WITHIN OUR REACH.
THINK ABOUT THAT LITTLE BOY I SPOKE ABOUT A MOMENT
AGO. THINK ABOUT HIS DREAM -- BECAUSE IT'S REALLY THE
AMERICAN DREAM -- WHAT ALL OF US WANT FOR OURSELVES AND
OUR FAMILIES. ///
- 15 -
WE MUST UNLEASH THE RESOURCES OF THE PROFIT AND
NON-PROFIT SECTORS, OF CHURCHES AND SYNAGOGUES, STATES
AND LOCALITIES IN OUR GREAT NATIONAL ENTERPRISE TO
ASSURE SAFE, DECENT, AND AFFORDABLE HOUSING FOR ALL.
ONLY THEN WILL WE BE ABLE TO REPLACE HOPELESSNESS WITH
HOPE. ONLY THEN WILL WE BE ABLE TO WAGE WAR ON POVERTY
AND DESPAIR. AND ONLY THEN WILL WE BE ABLE TO COMPLETE
OUR VISION OF A FREE AND PROSPEROUS AMERICA, FULL OF
OPPORTUNITY FOR PEOPLE EVERYWHERE.
THANK YOU. GOD BLESS YOU -- AND GOD BLESS THE
UNITED STATES OF AMERICA.
# # #
NATIONAL ASSOCIATION OF REALTORS
DALLAS, TEXAS
NOVEMBER 10, 1989
2:15 P.M.
THANK YOU, IRA [GRIBIN]. I KNOW I SPEAK FOR
EVERYONE HERE TODAY WHEN I SALUTE YOU FOR SERVING SO
ABLY AS PRESIDENT OF THE NATIONAL ASSOCIATION OF
REALTORS. MY BEST WISHES TO YOUR SUCCESSOR: NORM
FLYNN. // LET ME ALSO RECOGNIZE THE MAN WHO'S DOING
SUCH WONDERFUL WORK, PUTTING THROUGH THE TOUGH NEW
REFORMS THAT ENSURE THAT HIS AGENCY SERVES PEOPLE IN
NEED, MY SECRETARY OF HUD, JACK KEMP. AND TWO FINE
MEMBERS OF CONGRESS WHO HAVE TRAVELLED DOWN ON AIR
FORCE ONE WITH ME TODAY, SENATOR PHIL GRAMM AND DALLAS'
OWN CONGRESSMAN, STEVE BARTLETT.
[[ IRA MENTIONED TO ME THIS AFTERNOON THAT MY
SPEECH IS A SPECIAL OCCASION FOR THIS ASSOCIATION. //
I SAID I WAS HONORED -- AND THEN IRA SAID "IT'S NOT
OFTEN THAT WE'RE ADDRESSED BY SOMEONE WHO LIVES IN
PUBLIC HOUSING." ]] ////
- 2 -
[[ THE TRUTH IS, I AM NOT A REAL ESTATE WIZARD.
WHEN I WAS ELECTED TO CONGRESS BACK IN 1966, WE NEEDED
TO MAKE HOUSING ARRANGEMENTS UP IN WASHINGTON. AT THAT
TIME, SENATOR AL SIMPSON'S FATHER, MILWARD, WAS
RETIRING AND MOVING BACK TO WYOMING. SO I BOUGHT THE
SIMPSON PLACE SIGHT UNSEEN -- MADE THE DEAL OVER THE
PHONE. WHEN WE GOT TO WASHINGTON, THERE WERE JUST TWO
PROBLEMS: WE FOUND OUT RIGHT AWAY THE HOUSE WASN'T
QUITE BIG ENOUGH FOR THE BUSH FAMILY -- AND WE FOUND
OUT WHEN WE PUT THE PLACE UP FOR SALE THAT IT WASN'T
WORTH QUITE AS MUCH AS WE PAID FOR IT. /// THAT'S MY
CLAIM TO FAME: I'M THE ONLY PERSON WHO EVER LOST MONEY
IN WASHINGTON REAL ESTATE IN THE LAST 20 YEARS. ///
IRA, WHERE WERE YOU WHEN I NEEDED YOU? ]]
BUT FEW PEOPLE HAVE DONE MORE FOR THE REAL ESTATE
INDUSTRY THAN I HAVE. // BARBARA AND I HAVE MOVED 28
TIMES IN OUR 44 YEARS OF MARRIAGE. /// NOW I KNOW
WHAT YOU'RE THINKING -- WHAT A DREAM CLIENT MY FAMILY
WOULD MAKE FOR ANY REALTOR. /// IN FACT, OMB IS
CALCULATING THE COMMISSIONS WE'VE PAID OVER THE
YEARS -- MEASURED AS A PERCENTAGE OF THE GNP. ]] ////
- 3 -
I CAME HERE TODAY TO LAY OUT A COMPREHENSIVE
AGENDA TO HELP BRING BASIC SHELTER AND AFFORDABLE
HOUSING WITHIN REACH OF MILLIONS OF AMERICANS. I CALL
IT AMERICA'S HOPE -- HOMEOWNERSHIP AND OPPORTUNITY FOR
PEOPLE EVERYWHERE.
BUT BEFORE I TELL YOU ABOUT HOPE, I WANT TO SPEAK
FOR A MOMENT ABOUT THE SINGLE MOST IMPORTANT FACTOR IN
HELPING MILLIONS OF AMERICANS REALIZE THE AMERICAN
DREAM: THE ECONOMY.
BECAUSE THE TRUTH IS, THERE'S NO BETTER HOUSING
POLICY THAN A GROWING ECONOMY. AND WE'VE GOT ONE. ONE
THAT PROVIDES JOBS, WAGES AND OPPORTUNITIES FOR
ADVANCEMENT -- LONG-TERM INTEREST RATES THAT OPEN
OWNERSHIP OPPORTUNITIES TO HUNDREDS OF THOUSANDS OF
FIRST-TIME HOME BUYERS. BECAUSE EVERY DROP IN INTEREST
RATES MAKES IT POSSIBLE FOR MORE FAMILIES TO BUY THAT
HOME THEY WANT. AND I PLEDGE THAT MY ADMINISTRATION
WILL VIGOROUSLY SUPPORT THE MORTGAGE INTEREST AND
PROPERTY TAX DEDUCTIONS. THESE DEDUCTIONS ENCOURAGE
HOME OWNERSHIP -- AND ARE IMPORTANT TO OUR OVERALL
ECONOMIC PROSPERITY.
- 4 -
AND ALL SIGNS POINT TO CONTINUED STRENGTH IN THE
ECONOMY. NOVEMBER MARKS THE 84TH MONTH OF ECONOMIC
EXPANSION -- THE LONGEST PEACETIME EXPANSION ON RECORD.
AND HERE'S ONE STATISTIC THAT REALLY HITS HOME:
MORTGAGE RATES ARE DOWN FROM ALMOST 14% BACK IN
NOVEMBER 1982 TO LESS THAN 10% TODAY. MY GOAL IS TO
PURSUE POLICIES THAT WILL BRING THEM DOWN EVEN FURTHER.
OF COURSE, PART OF ANY RESPONSIBLE ECONOMIC POLICY
IS GETTING OUR FISCAL HOUSE IN ORDER. // I WANT YOU
TO KNOW THAT MY ADMINISTRATION IS HANGING TOUGH FOR A
RESPONSIBLE BUDGET -- WITH REAL DEFICIT REDUCTION, NO
SMOKE AND MIRRORS.
WE DON'T LIKE SEQUESTRATION -- NO ONE DOES. BUT
WE'LL LIVE WITH IT IF WE HAVE TO -- IF IT'S THE ONLY
WAY TO REIN IN SPENDING AND BRING THAT DEFICIT DOWN TO
THE GRAMM-RUDMAN TARGET. I'M READY TO SIGN A BUDGET
BILL -- WHENEVER CONGRESS IS READY TO STRIP OFF ALL THE
COSTLY EXTRAS AND ADD-ONS HIDDEN AWAY IN THOSE OMNIBUS
SPENDING BILLS.
- 5 -
AND I'M OPTIMISTIC -- OPTIMISTIC THAT MY
ADMINISTRATION AND THE CONGRESS CAN AGREE ON A
RESPONSIBLE BUDGET. OPTIMISTIC THAT WE'LL SEE MORE AND
MORE AMERICANS PROSPERING -- PROVIDING BETTER LIVES FOR
THEIR FAMILIES, AND LOOKING TO ALL OF YOU TO HELP THEM
REALIZE THEIR DREAMS.
AND I KNOW WE CAN COUNT ON YOU -- JUST AS WE
COUNTED ON YOUR STRONG SUPPORT IN HELPING TO PASS THE
1988 FAIR HOUSING ACT. IRA, THAT'S A TRIBUTE TO YOUR
LEADERSHIP -- TO YOUR ORGANIZATION AND ITS DEDICATION
TO THE RIGHT OF ALL PEOPLE TO BE FREE FROM
DISCRIMINATION AND PREJUDICE.
BUT MORE MUST BE DONE, AND THAT'S WHERE THE HOPE
INITIATIVE COMES IN. THIS INITIATIVE WILL ADDRESS THE
FULL RANGE OF HOUSING CONCERNS: FROM SHELTER FOR THE
HOMELESS TO AFFORDABLE HOUSING FOR LOW-INCOME FAMILIES
-- TO INITIATIVES THAT OPEN ACCESS TO EXPANDED JOB
OPPORTUNITIES, AND HELP MILLIONS MORE AMERICANS OWN
THEIR OWN HOME.
- 6 -
LET'S START RIGHT THERE -- WITH WHAT HOPE CAN DO
FOR FIRST-TIME HOME BUYERS. YOU ALL KNOW ABOUT
FAMILIES WORKING TO BUY THAT FIRST HOME. WELL, THEY
DESERVE OUR HELP -- AND THEY'RE GOING TO GET IT. I
WILL ASK CONGRESS TO ENACT LEGISLATION ALLOWING
FIRST-TIME BUYERS TO DRAW, WITHOUT PENALTY, ON I.R.A.
SAVINGS AS A DOWNPAYMENT FOR THAT FIRST HOME.
OUR HOPE INITIATIVE ALSO MEANS EFFORTS TO IMPROVE
LOW-INCOME HOUSING. AS YOU KNOW, MY ADMINISTRATION
REJECTS COSTLY NEW PUBLIC CONSTRUCTION PROGRAMS THAT,
IN THE PAST, HAVE TOO OFTEN PRODUCED THE HOUSING
PROJECTS THAT SYMBOLIZE THE VERY ABSENCE OF HOPE IN OUR
INNER CITIES. THERE'S A BETTER WAY: HOUSING VOUCHERS
-- THAT EMPOWER LOW-INCOME FAMILIES TO CHOOSE WHERE
THEY WANT TO LIVE.
- 7 -
OUR IDEA IS TO CREATE INCENTIVES FOR THE
CONSTRUCTION AND REHABILITATION OF THE HOUSING LOW-
INCOME FAMILIES NEED. THAT'S WHY I'M CALLING ON
CONGRESS TO RENEW THE LOW-INCOME HOUSING TAX CREDIT --
BUT MAKE IT PART OF A PACKAGE THAT ALSO INCLUDES A CUT
IN THE CAPITAL GAINS TAX. A CUT IN CAPITAL GAINS MEANS
AN INCREASE IN JOBS, INVESTMENT AND GROWTH. I KNOW THE
NATIONAL ASSOCIATION OF REALTORS HAS FOUGHT HARD TO
MAKE A CAPITAL GAINS CUT A REALITY. WELL, THE FIGHT'S
NOT OVER. ///
BUT WE'VE GOT TO GO ONE STEP FURTHER -- IN THOSE
POCKETS OF POVERTY WHERE DESPAIR HAS DRIVEN OUT HOPE,
WE'VE GOT TO ELIMINATE THE CAPITAL GAINS TAX
ALTOGETHER. THAT'S A KEY ELEMENT IN THE ENTERPRISE
ZONE LEGISLATION I WANT TO SEE ENACTED. I'VE CALLED ON
CONGRESS TO CREATE AT LEAST 50 ENTERPRISE ZONES OVER
THE NEXT FOUR YEARS TO HELP CREATE THE JOBS AND INCOMES
THAT ARE THE REAL KEY TO AFFORDABLE HOUSING. I HOPE
CONGRESS GETS THE MESSAGE. IT'S TIME WE GAVE THE GREEN
LIGHT TO OUR INNER CITY ENTREPRENEURS.
- 8 -
AND HOPE CAN HELP US REVERSE A TREND THAT'S
STUNTING GROWTH AND DEVELOPMENT IN LOW-INCOME AREAS.
OVER NINE MILLION AMERICANS LIVE IN FHA-INSURED HOMES,
AND EVERY YEAR NEARLY HALF A MILLION FIRST-TIME
HOMEBUYERS USE FHA TO HELP THEM MAKE THEIR DREAM
AFFORDABLE.
MY ADMINISTRATION HAS ANNOUNCED MAJOR REFORMS TO
ENSURE THAT FHA IS TRUE TO ITS PRIMARY MISSION OF
MAKING HOUSING AFFORDABLE FOR LOW AND MODERATE INCOME
FAMILIES. WE WILL CHANGE THE DESTRUCTIVE PRACTICES
WHICH HAVE KEPT FHA OUT OF THE INNER CITIES AND
DISTRESSED COMMUNITIES THAT MOST NEED ITS SUPPORT.
- 9 -
AND -- AT ALL LEVELS OF GOVERNMENT -- WE'VE GOT TO
TAKE A SECOND LOOK AT SOME OF THE WELL-INTENDED HOUSING
POLICIES THAT ACTUALLY DECREASE OUR HOUSING SUPPLY.
I'M TALKING ABOUT THE EXCESSIVE RULES, REGULATIONS AND
RED TAPE THAT ADD UNNECESSARILY TO THE COST OF HOUSING
-- BY TENS OF THOUSANDS OF DOLLARS -- OR CREATE
PERVERSE INCENTIVES TO ALLOW EXISTING HOUSING TO
DETERIORATE. I HAVE ASKED JACK KEMP TO CONVENE A BLUE
RIBBON COMMISSION TO IDENTIFY BARRIERS TO AFFORDABLE
HOUSING -- AND TO MAKE RECOMMENDATIONS ON HOW THESE
BARRIERS CAN BE REMOVED. AND LET ME MAKE THE FIRST
RECOMMENDATION RIGHT HERE: NO CITY, STATE OR TOWN
SHOULD RECEIVE A SINGLE PENNY OF HOPE FUNDING UNTIL
THEY HAVE IDENTIFIED BARRIERS TO AFFORDABLE HOUSING IN
THEIR OWN BACK YARD -- AND START TAKING STEPS TO REMOVE
THEM. ///
YOU KNOW, SOMEONE ONCE SAID "WE SHAPE BUILDINGS --
THEREAFTER, THEY SHAPE US." THE SAME IS TRUE WHEN IT
COMES TO LOW-INCOME HOUSING POLICY.
- 10 -
THAT'S THE REAL CENTERPIECE OF OUR HOPE
INITIATIVE: TO RECAPTURE THE AMERICAN DREAM OF HOME
OWNERSHIP FOR THOSE WHO HAVE BEEN LEFT BEHIND --
THROUGH RESIDENT MANAGEMENT AND RESIDENT OWNERSHIP.
IT'S ALREADY WORKING: IN KENILWORTH-PARKSIDE, BACK IN
WASHINGTON, D.C. IN COCHRAN GARDENS IN ST. LOUIS. BY
ENCOURAGING NON-PROFIT AND RESIDENT GROUPS, IT'S GOING
TO WORK RIGHT HERE IN DALLAS -- AT PLACES LIKE RHOADS
TERRACE UNDER THE TAKE-CHARGE LEADERSHIP OF A
COURAGEOUS MOTHER NAMED JESSIE TOLES -- AND ALL ACROSS
THE UNITED STATES.
THE RESULTS ARE PROMISING: WITH TENANTS IN
CONTROL, WE SEE BETTER MAINTENANCE, MORE RENTS PAID ON
TIME, A DECREASE IN PEOPLE ON THE WELFARE ROLLS. AND
WE SEE SOMETHING MORE: A SENSE OF PRIDE THAT IS THE
VERY CORE OF ANY THRIVING COMMUNITY.
- 11 -
I DON'T KNOW ANY BETTER WAY TO REVIVE HOPE IN OUR
INNER CITIES THAN TO GIVE TENANTS THEMSELVES A SAY IN
RUNNING THEIR COMMUNITIES, A STAKE IN THE FUTURE AND
THE BELIEF THAT THEY, Too, CAN OWN A HOME. BECAUSE THE
TRUE MEASURE OF SUCCESS ISN'T HOW MANY FAMILIES WE ADD
TO HOUSING ASSISTANCE ROLLS. IT'S HOW MANY FAMILIES
MOVE UP AND OUT -- AND INTO THE RANKS OF HOMEOWNERS.
///
BUT THERE'S MORE TO THE HOPE INITIATIVE. AND NOW
I'M TALKING ABOUT PEOPLE WHO STAND IN THE SHADOWS OF
WHAT IS OTHERWISE A VERY BRIGHT ECONOMIC PICTURE -- WHO
LIVE A NIGHTMARE IN THE MIDST OF THE AMERICAN DREAM.
WE SEE THEM EVERY DAY -- ON THE STREETS OF OUR CITIES,
SLEEPING ON STEAM GRATES, LIVING OUT OF CARDBOARD
BOXES. THE HOMELESS. //
FOR MOST OF US, NOVEMBER IS THE TIME OF YEAR WE
START LOOKING FORWARD TO THE HOLIDAY SEASON:
THANKSGIVING, CHRISTMAS, NEW YEARS. FOR THE HOMELESS,
NOVEMBER IS THE TIME OF YEAR THE TEMPERATURE STARTS TO
DROP, AND SIMPLY MAKING IT THROUGH THE NIGHT BECOMES A
LIFE AND DEATH STRUGGLE. //
. 12 -
THINK ABOUT THE CHILDREN. PRETTY SOON, YOUR KIDS
WILL BE DREAMING ABOUT CHRISTMAS TOYS -- THAT NEW VIDEO
GAME OR NEW BIKE THEY'D LIKE. IT'S DIFFERENT FOR KIDS
ON THE STREET. I READ A STORY NOT LONG AGO THAT'S
STUCK IN MY MIND ABOUT A LITTLE BOY WITHOUT A HOME.
HERE'S WHAT HE DREAMS ABOUT AT NIGHT: "I DREAMED MY
MOM GOT HER [HOUSING ASSISTANCE]," HE SAID, "AND WE GOT
A HOUSE WITH A GREAT BIG BACK YARD."
BUT IN THE MORNING, FOR THAT LITTLE BOY, THE DREAM
IS OVER. HE IS UP AT 5:30, OUT OF A SHELTER AND BACK
ONTO THE STREETS. ///
THAT'S A TRAGEDY -- BECAUSE NO CHILD IN AMERICA
SHOULD HAVE TO GROW UP ON THE STREETS. AND EVERY
FAMILY IN AMERICA SHOULD HAVE A ROOF OVER ITS HEAD.
///
- 13 -
MY ADMINISTRATION IS GOING TO DO ITS PART TO
EXPAND EMERGENCY SHELTERS. YESTERDAY, I SIGNED A BILL
THAT SUBSTANTIALLY INCREASES FUNDING UNDER THE MCKINNEY
ACT TO REDUCE HOMELESSNESS. AND WE'RE GOING TO
CONTINUE TO PUSH FOR FULL FUNDING OF HOMELESS PROGRAMS
UNDER THAT LAW. TODAY, I'M ALSO ASKING JACK KEMP TO
FIND NEW WAYS TO PUT A PORTION OF OUR FHA FORECLOSURES
INTO THE HANDS OF NON-PROFIT GROUPS -- GROUPS THAT ARE
DOING SUCH WONDERFUL WORK REHABILITATING ABANDONED
HOMES, AND FIGHTING POVERTY IN OUR INNER CITIES.
BUT THE REAL ANSWER FOR THE HOMELESS -- THOSE WITH
MENTAL PROBLEMS OR DEPENDENT ON DRUGS OR ALCOHOL, IS
SHELTER PLUS CARE: SHELTER SUPPLEMENTED BY THE
NECESSARY SUPPORT-SERVICES TO GET THESE PEOPLE THE HELP
THEY NEED TO LIVE IN DIGNITY. AND THAT MEANS A
PARTNERSHIP -- A COMBINED FEDERAL, STATE AND LOCAL
EFFORT -- TO SUPPLY THE FUNDING AND OTHER RESOURCES
THAT CONSTITUTE A COMPREHENSIVE SOLUTION FOR THE
HARD-CORE HOMELESS. AND IF WE CARE ABOUT THEM, WE'VE
GOT TO TAKE MORE THAN A ONE-DIMENSIONAL APPROACH TO THE
PROBLEM.
- 14 -
THE HOPE INITIATIVE WILL INCLUDE IMPROVED
COORDINATION OF BASIC NEEDS LIKE SHELTER WITH OTHER
SOCIAL SERVICES -- TO HELP THE HOMELESS GET THE
TREATMENT THEY NEED TO GET CONTROL OF THEIR LIVES. TO
HELP THEM FIND AND HOLD DOWN JOBS. TO HELP THEM REGAIN
HOPE -- AND LEAVE LIFE ON THE STREETS BEHIND FOR GOOD.
///
HELPING THE HOMELESS. HELPING LOW-INCOME FAMILIES
FIND AFFORDABLE HOUSING, DECENT HOUSING. HELPING MORE
OF THE 80 MILLION AMERICANS WHO DON'T OWN A HOME JOIN
THE RANKS OF HOMEOWNERS. THOSE ARE THE AIMS OF THE
HOPE INITIATIVE -- AIMS WELL WITHIN OUR REACH.
THINK ABOUT THAT LITTLE BOY I SPOKE ABOUT A MOMENT
AGO. THINK ABOUT HIS DREAM -- BECAUSE IT'S REALLY THE
AMERICAN DREAM -- WHAT ALL OF US WANT FOR OURSELVES AND
OUR FAMILIES. ///
- 15 -
WE MUST UNLEASH THE RESOURCES OF THE PROFIT AND
NON-PROFIT SECTORS, OF CHURCHES AND SYNAGOGUES, STATES
AND LOCALITIES IN OUR GREAT NATIONAL ENTERPRISE TO
ASSURE SAFE, DECENT, AND AFFORDABLE HOUSING FOR ALL.
ONLY THEN WILL WE BE ABLE TO REPLACE HOPELESSNESS WITH
HOPE. ONLY THEN WILL WE BE ABLE TO WAGE WAR ON POVERTY
AND DESPAIR. AND ONLY THEN WILL WE BE ABLE TO COMPLETE
OUR VISION OF A FREE AND PROSPEROUS AMERICA, FULL OF
OPPORTUNITY FOR PEOPLE EVERYWHERE.
THANK YOU. GOD BLESS YOU -- AND GOD BLESS THE
UNITED STATES OF AMERICA.
# # #
Nov. 9 / Administration of George Bush, 1989
Administration of George Bush, 1989 / Nov. 10
year of our Lord nineteen hundred and
way in Eastern Europe-and certainly I
didn't-but last May, right here in Texas,
Wyoming. So, I bought the Simpson house,
eighty-nine, and of the Independence of
rates are down from almost 14 percent back
the United States of America the two hun-
over at Texas A&M, I noted hopeful,
sight unseen over the telephone. And when
in November of '82 to less than 10 percent
we got to Washington, there were just two
dred and fourteenth.
indeed, remarkable signs of a Soviet break
today. And my goal and Jack's goal, the goal
problems: We found out right away that the
with the cycles of the past. And I called
of our entire administration-to pursue poli-
George Bush
house wasn't quite big enough for our
upon the Soviet Union to support self-deter-
cies that will bring them down even fur-
family, and we found out when we put the
ther.
mination for the nations of eastern and cen-
[Filed with the Office of the Federal Regis-
place up for sale that it wasn't worth quite
tral Europe and to tear down the Iron Cur-
Of course, part of any responsible eco-
ter, 11:39 a.m., November 13, 1989]
as much as we paid for it. [Laughter] And
tain. And now we're seeing it happen. And
nomic policy is getting our fiscal house in
that's my claim to fame in your business.
when I visited Poland and Hungary in July,
order. And I want you to know that my
I'm the only person who ever lost money in
I sensed that historically important events
administration is hanging tough for a re-
Washington real estate in the last 20 years.
there held the seeds for even more dramat-
sponsible budget, with real deficit reduc-
[Laughter] Ira, where the hell were you
Remarks to the National Association of
ic change.
tion, no smoke and no mirrors. We don't
when I needed you? [Laughter]
Realtors in Dallas, Texas
And this played a big part in the decision
like sequestration; no one does. But we'll
But few people have done more for the
have to live with it if we have to and if it's
November 10, 1989
last July made, really, at the G-7 meeting in
real estate industry than Barbara and I
Paris. On the way back, I proposed a face-
have. We've moved 28-this is true-we
the only way to rein in spending and bring
Thank you, Ira. I know I speak for every-
that deficit down to the Gramm-Rudman
to-face meeting with President Gorbachev
have moved 28 times in our 44 years of
one here today when I salute you for serv-
before next spring's summit. And the Malta
marriage. [Laughter] You ought to be smil-
target. I'm ready to sign a budget bill
ing so ably as the president of the National
meeting, given recent events, takes on, I
ing. Now, I know what you're thinking:
whenever Congress is ready to strip off all
Association of Realtors. And my best wishes
think, even more importance than when I
What a dream client my family would make
those costly extras and add-ons hidden away
to your successor, Norm Flynn. And let me
conceived the idea 3½ months ago.
for any realtor. [Laughter] In fact, [Direc-
in those omnibus spending bills.
also recognize-rerecognize, if you will, the
The changes in recent months make clear
tor] Dick Darman over at OMB is calculat-
We're getting down to the wire, and I'm
man who is doing such wonderful work,
that the process of reform initiated by the
ing the commissions we've paid over the
optimistic-optimistic that my administra-
bringing vision to HUD, putting through
Eastern Europeans and supported by Mr.
years, measured as a percentage of the
tion and the Congress can agree on a re-
the tough new reforms that ensures that his
Gorbachev and by America and by our
gross national product. [Laughter]
sponsible budget; optimistic that we'll see
agency serves people in need, my outstand-
allies is real, offers us all much hope, and
But I came here today to lay out a com-
more and more Americans prospering-
ing Secretary of HUD, Jack Kemp. I am so
deserves our continued encouragement.
prehensive agenda to help bring basic shel-
providing better lives for their families and
proud he's with me here today. And of
course, an old friend and a fine Member of
We're living in fascinating times, and we will
ter and affordable housing within reach of
looking to all of you to help them realize
Congress who traveled down on Air Force
seize every opportunity to contribute to
millions of Americans, and I call it Ameri-
their dreams. And I know we can count on
lasting peace and to extend democracy.
ca's HOPE, Homeownership and Opportu-
you, just as we counted on your strong sup-
One with Barbara and Jack and me today,
Dallas' own Congressman Steve Bartlett.
And in doing so, I will conduct the foreign
nity for People Everywhere.
port in helping to pass that 1988 Fair Hous-
policy of this great country with the pru-
But before I tell you about HOPE, I want
ing Act. Ira, that is a tribute to your leader-
And of course, I'm delighted that the
dence that these fascinating times, times of
to speak for just a minute about the single
ship, to your strong organization, and to its
mother of the Texas Rangers boss is here
today, my wife, Barbara, the "Silver Fox."
change demand-and with the imagination.
most important factor in helping millions of
dedication to the right of all people to be
Before going into my main remarks, let
The 1980's has been the decade of Ameri-
Americans realize the American Dream:
free from discrimination and prejudice.
can renewal. And I believe that around the
the economy. Because the truth is, there is
But more must be done, and that's where
me just say a word about the momentous
world, the 1990's will inevitably be the
no better housing policy than a growing
the HOPE initiative comes in. This initia-
events in East Germany. I was moved, as
decade of democracy.
economy. And we've got one, one that pro-
tive will address the full range of housing
you all were, by the pictures of Berliners
Ira mentioned to me that my speech is a
vides jobs and wages and opportunities for
concerns, from shelter for the homeless to
from East and West, standing atop the Wall
with chisels and hammers, celebrating the
special occasion for this association, and I
advancement-long-term interest rates that
affordable housing for low-income families
opening of the most vivid symbol of the
said I was honored. And then Ira said,
open ownership opportunities to hundreds
to initiatives that open access to expanded
of thousands of first-time home buyers be-
job opportunities and help millions more
Iron Curtain. And then today, just on the
"Well, it's not often that we're addressed by
plane coming down, I read a report where
someone who lives in public housing."
cause every drop in interest rates makes it
Americans own their homes.
[Laughter] And you know something: Bar-
possible for more families to buy that home
Let's start right there, with what HOPE
18 new border crossings would be made in
the Wall in the near future. And to be
bara and I get just as emotional about it
they want. And I pledge that my adminis-
can do for first-time home buyers. You all
today as the day we first walked in there.
tration will vigorously support the mort-
know about families working to buy that
honest with you, I doubted that this would
The truth is, I am not a real estate wizard.
gage-interest and property-tax deductions.
first home. Well, they deserve our help, and
happen in the very first year of this admin-
istration. Twenty-eight years after the des-
When I was elected to Congress-and I get
These deductions encourage home owner-
they're going to get it. I will ask Congress
perate days of 1961, when tanks faced off at
reminded about this by Barbara-when I
ship, and they are vitally important to our
to enact legislation allowing first-time
was elected to Congress in 1966, we needed
overall economic prosperity.
buyers to draw, without penalty, on IRA
Check Point Charlie and that terrible bar-
to make housing arrangements up in Wash-
And all signs point to continued strength
savings as a down payment for that first
rier was built-now the East German Gov-
ington. We were in Houston. And at that
in the economy. November marks the 84th
home.
ernment has responded to the wishes of its
time, Senator Al Simpson's father, Milward
month of economic expansion-the longest
Our HOPE initiative also means efforts to
people. And while no one really accurately
predicted the speed of the changes under-
Simpson, was retiring and moving back to
peacetime expansion on record. And here's
improve low-income housing. As you know,
one statistic that really hits home: mortgage
my administration rejects these costly new
1716
1717
Nov. 10 / Administration of George Bush, 1989
Administration of George Bush, 1989 / Nov. 10
public construction programs that, in the
to the cost of housing by tens of thousands
steam grates, living out of cardboard boxes.
shelter with other social services, to help
past, have too often produced the housing
of dollars or that create perverse incentives
Of course, I'm talking about the homeless.
the homeless get the treatment that they
projects that symbolize the very absence of
to allow existing housing to deteriorate.
And for most of us, November is the time
need to get control of their lives; to help
hope in our inner cities. There's a better
And so, I've asked my able Secretary, Jack
of year when we start looking forward to
them find and hold down jobs; to help them
way: housing vouchers that empower low-
Kemp, to convene a blue ribbon commis-
the holiday season: Thanksgiving, Christ-
regain hope and leave life on the streets,
income families to choose where they want
sion to identify barriers to affordable hous-
mas, New Year's. For the homeless, Novem-
leave that life behind for good.
to live.
ing and then to make recommendations on
ber is the time of year the temperature
So, our idea is to create incentives for the
how these barriers can be removed. And let
starts to drop and simply making it through
Helping the homeless; helping low-
construction and rehabilitation of the hous-
me make the first recommendation right
the night becomes a life-and-death struggle.
income families find affordable housing,
ing low-income families need. That's why
here, Mr. Secretary: No city, State, or town
Think about the children. Pretty soon
decent housing; helping more of the 80 mil-
I'm calling on Congress to renew the low-
should receive a single penny of HOPE
your kids-our kids-will be dreaming
lion Americans who don't own a home join
funding until they have identified barriers
about Christmas toys-new video game or
the ranks of homeowners-these are the
income housing tax credit, but make it part
of a package that also includes the cut in
the bike they'd like. And it's different for
aims of the HOPE initiative, and these are
to affordable housing in their own backyard
the capital gains tax. I don't care what the
and take steps to remove them.
kids on the street, though. I read a story not
aims well within our reach. And think about
political opponents say, what the critics say.
long ago that stuck in my mind about a
that little boy I spoke about a moment ago.
Someone once said, "We shape buildings;
A cut in capital gains means an increase in
and thereafter, they shape us." The same is
little boy without a home. And here's what
Think about his dream because it really is
jobs, investment, and growth. And I'm
he dreams about at night: "I dreamed my
the American Dream, what all of us want
true when it comes to low-income housing
grateful for the fact that the National Asso-
policy. That's the real centerpiece of our
Mom got her housing assistance," he said,
for ourselves and our families.
ciation of Realtors has fought hard to make
HOPE initiative: to recapture the American
"and we got a house with a great big back-
We must unleash the resources of the
a capital gains cut a reality. Well, let me tell
yard." But in the morning, for that little
profit and nonprofit sectors, of churches
dream of home ownership, for those who
you something: That fight is not over.
boy, the dream is over. He is up at 5:30
and synagogues, States and localities in our
We've got to go one step further, as a
have been left behind, through resident
a.m., out of a shelter and back onto the
great national enterprise to assure safe,
matter of fact. In those pockets of poverty
management and resident ownership. It's
streets. Now, that is a tragedy because no
decent, and affordable housing for all. And
where despair has driven out hope, we've
already working-Kenilworth-Parkside
child in America should have to grow up on
only then will we be able to replace hope-
got to eliminate the capital gains tax alto-
back in Washington; Cochran Gardens in St.
the streets and every family in America
lessness with hope. And only then will we
gether. And that's a key element in the
Louis; in East L.A., public housing through
should have a roof over its head.
be able to wage war on poverty and de-
enterprise-zone legislation that I want to
community leaders, like Alicia Rodriguez,
We've got to do better. And my adminis-
spair. And only then will we be able to
see enacted, that Jack Kemp has worked so
and by encouraging nonprofit and resident
tration is going to do its part to expand
complete our vision of a free and prosper-
hard to produce. I've called on Congress to
groups. It's going to work right here in
emergency shelters. And yesterday I signed
ous America, full of opportunity for people
create at least 50 enterprise zones over the
Dallas-at places like Rhoads Terrace under
a bill that substantially increases funding
everywhere.
next 4 years to help create the jobs and
the take-charge leadership of a courageous
under the McKinney Act to reduce home-
Thank you all very much. God bless you,
incomes that are the real key to affordable
mother named Jessie Toles-and all across
lessness. And we're going to continue to
and God bless the United States of America.
housing. I hope Congress gets the message.
the United States.
push for full funding of homeless programs
It is time that we gave the green light to
The results are promising because, you
under that law. And today I'm also asking
Note: The President spoke at 2:10 p.m. in
our inner-city entrepreneurs.
see, with tenants in control, we see better
Jack Kemp to find new ways to put a por-
the Chantilly Ballroom at Loew's Anatoel
And HOPE can help us reverse a trend
maintenance, more rents paid on time, a
tion of our FHA foreclosures into the hands
Hotel. In his opening remarks, he referred
that's stunting growth and development in
decrease in people on the welfare rolls. And
of nonprofit groups, groups that are doing
to Ira Gribin, president of the association.
low-income areas. Over 9 million Americans
we see something more: a sense of pride
such wonderful work rehabilitating aban-
A tape was not available for verification of
live in these FHA-insured homes, and every
that is the very core of any thriving com-
doned homes, fighting poverty in our inner
the content of these remarks.
year nearly a half a million first-time home
munity. I don't know any better way to
cities.
buyers use FHA to help them make their
revive hope in our inner cities than to give
But the real answer for the homeless,
dream affordable. My administration has an-
tenants themselves a say in running their
those with mental problems or dependent
nounced major reforms to ensure that FHA
communities; a stake in the future; and the
on drugs or alcohol, is shelter plus care:
is true to its primary mission of making
belief that they, too, can own a home. Be-
shelter supplemented by the necessary sup-
White House Fact Sheet on the HOPE
housing affordable for low- and moderate-
cause the true measure of success isn't how
port services to get these people the help
Initiative: Homeownership and
income families. We will change the de-
many families we add to housing assistance
they need to live in dignity. And that
Opportunity for People Everywhere
structive practices which have kept FHA
rolls; it's how many families move up and
means a partnership-a combined Federal,
November 10, 1989
out of the inner cities and distressed com-
out and into the ranks of homeowners.
State, and local effort-to supply the fund-
munities that most need its support.
But let's face it. There's more to the
ing and other resources that constitute a
President Bush today announced an initi-
And frankly, at all levels of government,
HOPE initiative. And now I'm talking about
comprehensive solution for the hardcore
ative to increase homeownership opportuni-
we have got to take a second look at some
people who stand in the shadows of what is
homeless. And if we care about them, we've
ties for low- and moderate-income families
of the well-intended housing policies that
otherwide a very bright economic picture,
got to take more than a one-dimensional
and to create jobs and entrepreneurial ac-
actually decrease our housing supply. I'm
who live a nightmare in the midst of the
approach to the problem.
tivity in the Nation's distressed urban and
talking about the excessive rules, regula-
American dream. We see them every day
The HOPE initiative will include im-
rural communities. The President's forward-
tions, and red tape that add unnecessarily
on the streets of our cities, sleeping on the
proved coordination of basic needs, like
looking plan for housing is called HOPE-
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