Acting in concert for the first time in recent memory, five major housing trade groups today issued a policy statement that they say will finally fulfill the promise set forth 51 years ago of a decent home and suitable living environment for every American family.

Issued just in time for the Republic Convention next week in Philadelphia and the Democratic Convention later in August in Los Angeles, the statement describes what the five organizations believe to be the "essential elements of a housing agenda for the federal government."

Their recommendations, the coalition argues, "should be adopted" by the leadership of both political parties.

The organizations -- the American Bankers Association, America's Community Bankers, Mortgage Bankers Association, National Association of Home Builders and the National Association of Realtors -- represent the industries that build, finance and sell houses. Together, they speak for firms that employ some 12 million people.

The pledge of a decent home was part of the 1949 Housing Act. But as has been well documented, the American Dream is still a pipe dream for many people. Large geographical and racial differences in home ownership rates persist, and one in seven renters pay out more than half their incomes for housing and receive no assistance.

Given these and other challenges, the coalition says, "a coherent set of principles is needed to guide the development of a new housing policy." Among them, they add, should be that while Uncle Sam should take the lead role, governments at all levels should be involved.

"Economic development and growth should be anticipated and planned in a timely, orderly and predictable manner," the group says. And "regulation of housing production and housing finance should weigh the impacts on housing affordability and availability against the expected benefits of regulation."

The policy statement covers five areas -- smart growth, housing finance, tax policy, government regulations and housing programs. But they offer nothing new or particularly visionary, save for perhaps an endorsement of tax credits to encourage the development of new technologies that use fewer resources, make houses last longer, cut energy usage and cost less.

In the area of tax policy, for example, the five housing organizations are adamant that they key ownership incentives -- the deductibility of mortgage interest and property taxes, exemption from the capital gains tax on the sale of a principal residence, and elimination of the capital gains tax upon death -- should be preserved "as critical components" of the federal government's commitment to housing.

There has been more and more talk in recent years of scrapping the current tax system and switching to a flat tax, a consumption tax or perhaps even a national sales tax. But the industry's "Housing Policy for the 21st Century" warns that "dramatic changes to the current equilibrium" could wreak havoc with home owner equity.

In the financing arena, the policy statement says the Federal Home Loan Bank System should continue expanding the range of products and services to member institutions that finance housing and community development.

The coalition wants the other government-sponsored enterprises to remain true to their congressional charters by functioning as a secondary mortgage market mechanism for private lenders. But it also wants the rules relaxed and incentives provided to encourage Fannie Mae and Freddie Mac to develop innovation products and supply funding for land acquisition, development and construction "so lenders can package these loans and sell them to investors in the general capital markets."

The coalition also says regulators should recognize the favorable risk characteristics of residential mortgages and housing production credit and not restrict the freedom of depositories to specialize in housing finance. "Unnecessarily burdensome regulation emains within the housing finance process," the groups say. "Modest relief can make the difference achieving home ownership, especially for low and moderate-income borrowers."

Published: July 27, 2000

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.