tv HUD Secretary Addresses National Housing Conference CSPAN June 9, 2017 9:25pm-9:54pm EDT
by fdr to be in this room. this room is almost identical to the way it was on the day that he died. nothing has changed. >> watch q&a from the franklin d roosevelt residential library and museum in hyde park new york. sunday night at eight eastern on c-span. >> c-span, where history unfolds daily. in 1979, c-span was created as a public service by americans cable television companies. and is brought to you today by your cable or satellite provider. >> today housing and urban development secretary dr. ben carson spoke about assisting first-time homebuyers at a conference in washington d.c.. his remarks are one half hour. [applause] >> thank you for the great welcome.
and thanks to all of you for being here today. we are excited to have folks watching live by c-span and through the webcast. it is my pleasure to introduce dr. ben carson so is the 17th secretary of housing and urban development. his bio is in your program books. as many notable accomplishments i wanted to highlight obviously is nearly 30 years as director of pediatrics neurosurgery at johns hopkins children's center. we are very excited to have dr. ben carson join us last night at our 45th annual housing visionary awards and very much appreciate him providing a welcome and joining us for dinner. it is my pleasure to bring up the secretary dr. ben carson to the podium right now. [applause] >> thank you. i am delighted to be here with you. thankful for all of the work that you have done.i had a
wonderful time last night. an opportunity to see many people that i had not seen for quite some time. and enjoyed meeting with some of the award winners. last week hud hosted a policy former expo. a stable secure and the market is safe. i want to emphasize that. the market is in good shape. and much of the credit for that goes with people in this room. after the turbulence of 2008, we must remain vigilant and very watchful and anticipate more than react. we must be prudent and practical, continue to maintain responsible lending practices. wishful thinking cannot be our sole criteria for credit worthiness. and as the economy improves we must never ignore the central
role of housing in the recovery from the 2008 recession. nationally, we must continue to smooth out the cycles that lead to burst bubbles and foreseeable foreclosures. we want to avoid anyone going underwater were losing their home. there is always room for improvement, more stability, more growth. we still see small fluctuations in the market. but dramatic highs and lows seem to be smoothing out. and things are beginning to be more predictable. the data not shows a reasonably straight and rising line on the upward trajectory. and the cycles have become much less dramatic. we are looking for good news and startups and -- and the many sides of home ownership.
the homeownership today is 63.6 percent. in some states upwards of 70 percent. first-time homebuyers make up to 35 percent of all homebuyers in the last 12 months.this good news will continue. the harvard joint center for housing studies projects that the united states will add 13.6 million households over the next eight years. the federal housing administration has a strong role to play. fha has helped more than 46 million americans either obtain mortgages or refinancing. and estimated 40 percent of all first-time homebuyers use fha. in fact, during the time that we spend here today, 4000 new homebuyers will be assisted by
fha. so the pace is really quite exciting. now this is good news, it hides one story. housing market is becoming a lost dream for many of the millennial's. we must create a viable entryway for more credit worthy millennial's. first-time homebuyers feel frozen out. and there is new data from -- showing that 35 percent of all fha loans were close by millennial's. fha.but i worry because there are reports from california. from the state legislature that only about 13 percent of millennial's buying a home. 13 percent. historical low. why? well, the high prices of homes
escalate out of reach for some. this is especially true in places like new york, washington d.c., los angeles and so many of the people face very stark choices. some see wages absorbed 40, 50 and even 60 percent of housing cost. that is a catch-22 for them. because either you become house poor through potential mortgage, if you can get one. and sacrifice all of the other aspects of life. what you forgo a home and have the other necessities in life. even if you are credit worthy, these are tough choices for the future creation of wealth. and quality of life in this country. all of us heard stories about millennial's living at home, renting, sharing rooms. many of these people are credit
will be carried but feel excluded from the possibility of homeownership. you can understand their frustration and it cuts across an entire age group. in the 1920s, hemingway's contemporaries were famously called the lost generation. i worry that millennial's may become a lost generation her homeownership. excluded from the american dream, punished as an unintended byproduct of a financial crisis in 2008. we must be mindful of the situation. we don't want to exclude generation of buyers or even generations to come. we must do more. look for more, find reasonable prudent pathways for millennial's with investors and lenders in the housing market. interestingly enough, at the beginning of the nation people
came here from all areas of the world. and they worked extremely hard. not eight hours a day for 12, 16 hours a day. five days a week. six or seven days a week. no such thing as a minimum wage. not for themselves. but for their children, for their grandchildren. there was always that thinking about the next generation. something have we have to start doing again. we know that a first step toward homeownership is often the purchase of a condominium a condo is often a step on the homeownership letter. anyway of waiting up the letter. we know that fha has a central role to play. it is the lender of choice for many first-time homebuyers. and it is the entryway into the housing market.
today, let's find ways and means for credit worthy first-time homebuyers to enter the market. one way i direct your attention to the housing opportunity through modernization act of 2016. that act alone fha under certain circumstances to lower its required owner occupancy standard were approved condominium developments. the owner occupancy minimum has been reduced from 50 percent to 35 percent. ultimately this action will allow for more people, including millennial's, to use fha to buy condos. on wednesday, fannie mae announced that it would reduce its debt to income ratio to attract more millennial homebuyers. such an action would help some millennial's although fha loans would remain an attractive and powerful option. i welcome this action.
in concert with our efforts, millennial's will now have game changing circumstances that should encourage homeownership. however, the federal government cannot be the only solution. we don't want to turn back time. remember, when in response to the troubles of 2008 federal government was virtually the only lender for homeownership. that was not a good role for fha or fanny or freddie. lenders, bankers, mortgage providers need to do everything possible to help credit worthy millennial's to buy their first home. the taxpayer cannot be the sole solution. this is a time for aggressive responses in cities and communities. that open opportunities.we need to do more, we need to stop punishing an entire generation for sub crime crisis. and as we recover from that time, we must not overlook
those trying to enter the market. one publication argues that millennias could become a powerhouse base for homeownership. that could be true. if we set in place the right conditions and the correct responses. in my view, we can shape the future prosperity of this country by retrieving a lost generation and placing it on a firm foundation to wealth creation and future financial prosperity. and do recognize that early on in this country our forefathers, pilgrims were very brave. they face some tremendous odds going across a rugged and hostile land and conquering all of the obstacles. there was something known as the can do attitude that characterized america.
now we are in a different setting. a setting of fiscal austerity. and yet, of great need. that means that american ingenuity, that can-do spirit must once again emerge. not just complaining and crying. but actually utilizing these incredible brands of ours. to come up with innovative, exciting and worthwhile innovations that will allow the american dream to flourish. in the future. thank you so much. [applause] >> thanks so much. mr. secretary. we have got times for a few questions. i appreciate you staying to talk.
obviously i think one of the areas that the housing community is probably most anxious about is related to the budget. that has been proposed by the administration and i think you have said in the past that you don't expect anyone to get kicked out of housing but i think whether that issues of reduction in the housing choice vouchers or public housing properties they can't exist on sufficient funds, resident who can't afford hideout payment or rental assistance provided by home. that physically difficulty to achieve. i wanted to give you a chance to talk about what is going to give and how will we sort of achieve keeping folks from losing their housing if the hud budget will shrink by $7 billion. >> a very good question. the homes are not actually the prime mechanisms for rental assistance. it is section 8 tenant-based and project-based. rental assistance and public
housing. given the fiscal restraints, we have to prioritize. terms of which things we are going to really emphasize. now there are millions of families. 4.6 million households that are assisted through rental assistance programs. we want to make sure all of those people continue to be assisted. that is priority number one. having said that, you know some of the things there some of the other programs have been very helpful. particularly looking at the ability to leverage money. in order to provide more units. the rental assistance demonstration, a perfect example of that being able to create a lot more units than we
are losing on an annual basis with public-private partnerships. and wiping out you know, the backlog of capital needs at the same time. automatically. and investing the local community and the well-being of those neighborhoods and projects. the old model was the government came in with a boatload of money. and said, build this facility for veterans. build this facility for homeless, build this with his low income people. and off to the next project. that has left us with a lot of housing infrastructure problems. the new model, government comes in and seems the project. facilitates the public-private partnerships. as lumbar money and they are then is in the government. and at the same time looks out for the next generation.
those are the kinds of priorities that we must put into place. >> thank you. the next question, more than 50 communities including some states have ended homeless veterans. other communities are not have to do that as well. the housing model shows potential for ending homelessness from any other groups. do you plan on building on this model on this momentum and if so, how? >> absolutely. as far as veterans are concerned you know the strong relationship with the va and had from the street to the main offices. and there has been a lot of other groups also who are focused on veterans homelessness to the point that it has been reduced by 47 percent. you cannot gloat about that but significant progress is being made. our homeless assistance grants requesting to end one fourth
billion dollars -- $225 million will support over 350,000 in homeless shelters. we looking at that homelessness has been reduced from 800,000 to just over 500,000. again, nothing to gloat about that we are moving in the right direction. i think the housing first concept is an excellent concept. the reason i say that is because somebody is sleeping under a bridge. they likely to end up in the emergency room.sometime in the course of that year and be admitted to the hospital. a one-week stay in the hospital costs more than it costs to house them for three years! so you know we have to look at the data. we have to utilize that appropriately.so housing first i agree with. but we also must add housing second and housing third.
housing second means we need to diagnose the reason that they are in that situation and housing third means we need to address that. that is what real compassion is. putting people on a pathway to self-sustaining.>> great. mentioned fha in your opening remarks. and obviously it has played a pretty big role in helping first-time homebuyers with access to safe and sustainable mortgages. and it is a comparable role financing affordable rental housing as well. many of our members have questions about future fha policy including mortgage insurance premium reduction that has a final rule on the condominium policy, -- are you contemplating any policy changes for fha and single-family or multi family at this point? >> yes but i cannot talk about in this form.there are a lot
of interesting things that need to happen. certainly you know as far as the condo rule is concerned. we are going to be looking at that carefully and making sure that it is consistent with our goals of increasing homeownership. particularly in a stepwise fashion. you know, looking at some of the impediments to lenders getting involved, false claims acts and things like that. clearly, the rules are important. and you are making sure that people understand what the rules are and single-family and multifamily. no question about that. but finding ways to take some of the obstacles out of the way and you know some of the mistakes that are made are nonmaterial mistakes. and yet, you know they lead to a lot of complications, those
are things that push people out of the market. we are looking at those carefully, trimming those out of the way. only looking at material effects. actually last month, we instituted a lender electronic assessment tool that allows people to gain their certification and recertification online. and that also integrates a process that kicks out you know, nonmaterial errors. those kinds of modernization told obviously of going to make a huge difference and we are looking forward to having a new fha commissioner in place. and to strengthening the whole infrastructure of our organization.
running it much more like a business i think everybody is going to find it much easier to work with. >> and i will not attempt to look around the audience and see that commissioner might be. i want to go back, talk on something that came up in the election.certainly there was a sense of world voters in particular feeling and expression of dissatisfaction of being left out of the economic growth of the country and being abandoned. both usda and had played an important role in different aspects of rural housing. how d.c. hud's response and responsibility rural america's housing needs? >> well, we have to have a strong relationship between hud and the department of agriculture. recognizing that you know we have joint interest. we are looking at ways to amalgamate those interests in a most efficient way. interestingly enough, there are
more severely affected people in terms of housing in our metropolitan city areas than they are in rural areas. but that doesn't mean that they are any less important. we are not going to continue to focus on that. you know you have your 515 program though the department of agriculture. you have the various housing and rental assistance programs. and again, we are looking at ways to streamline and maximize the effectiveness of that so that we can actually help more rather than less people. >> great. thank you. hud placed several important roles in fair housing and equal opportunity and supports programs to prevent or eliminate discriminatory housing practices. but the department of justice supports antidiscrimination requirements. are you planning any changes to hud enforcement and implementation of the fair
housing act? >> the fair housing act of 1968, which was modified in 1988. i think is one of the most beautiful pieces of legislation that we have ever crafted in a bipartisan fashion. [applause] >> i will not only look to make sure that we continue but to enhance everything we can to make all housing policies bear for every group in our society. >> thank you. thank you. i want to come back to a point you mentioned about red and that successes we have seen in the rental area. you have been vocal in support of partnerships. i think the conundrum for folks is that the proposed
elimination of homes, housing trust fund, the capital magnet fund are essential elements to this recapitalization. so how do you envision the provision of rad to work in that sort of context that cuts the programs? >> actually, rad itself we need to lift the cap on that. that we can spread that much further and much faster. we see that it works. i've been on a national tour and number of cities. and have seen what's happening with those programs. it is a win-win situation. we also have the ability to modify some of the programs in order to make sure that we enhance those public-private partnerships. the use of low income housing tax credits and other incentives in order to bring in much more revenue.
and it is not just a matter of bringing in the revenue. it is a matter of bringing in the interest. there are a lot of things that we are doing that are outside of the budget instance. the creation of vision/opportunity centers. these will be all privately funded. but repurposed buildings and infrequently boarded up in low-income neighborhoods, because you ask the children in their. what do you want to do when you grow up? there are a thousand answers. and we want to bring in people who can show them those other 995 answers and how you get there. we want to bring in childcare because so many of the young women get pregnant, their education ends and that is problematic. want to give a chance to get that ged, the associate's
degree, a bachelor's degree, master's degree. take control of their own lives. teach their children to take control of their own lives which breaks the cycle. mentorship programs have been shown to greatly reduce high school dropouts. so, using those the focus is for mentorship programs and teaching people basic skills. when i was in high school i knew basic skills. i know how to use a drill press and building you know they don't teach kids that stuff anymore. we need to give people basic skills once again. we are going to be doing all this to private funding. because there is an enormous amount of goodwill in our country. it just needs to be focused and directed. >> mr. secretary, thank you so much fear time today. really appreciate you being with this. with forward to more conversations in the future. please join me and thanking secretary dr. ben carson.
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