The White House wants to use excess revenues from the Federal Housing Administration's main insurance fund to expand the supply of affordable housing.

Responding to a report that found the FHA mutual mortgage insurance fund generated $5 billion more in fiscal 1999 than originally expected, President Clinton has asked key federal appointees to recommend ways to use the money to strengthen existing federal housing plans and "develop a plan to enhance comprehensive affordable housing opportunities."

Recommendations could include subsidizing the construction of new and affordable rentals, downpayment assistance and more rental assistance vouchers, among a myriad of other possibilities.

The President has tossed the ball to Andrew Cuomo, secretary of the Department of Housing and Urban Development, as well as Jack Lew, director of the Office of Management and Budget, and Domestic Poilcy Council Director Bruce Reed.

But several key legislators already are lobbying for their own ideas. Rep. Barney Frank, D-Mass., is hoping that new apartment construction will get serious consideration. And Sen. John Kerry, D-Mass., wants to see the creation of a National Housing Trust Fund.

Sec. Cuomo vowed that however the money is used, it will be help families get the housing they need to transform their lives and revitalize their communities.

The FHA collects revenue from fees it charges borrowers to insure their mortgages against default. Revenues above expenses are currently returned to the Treasury. The agency is now expected to make more in the fiscal years between 2002 and 2006 than the projections contained in the President's proposed budget for fiscal 2001.

Published: March 14, 2000

Use of this article without permission is a violation of federal copyright laws.

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.