Mayors Want Trust Fund for Low-Income Housing

A committee at the U.S. Conference of Mayors meeting voted Saturday to urge Congress to establish a trust fund providing up to $5 billion a year to finance low-income housing.

Democratic Mayor Frank C. Cooksey of Austin, Tex., called the trust fund a good idea, but objected that the original resolution by Democratic Mayor Harold Washington of Chicago did not specify how the money could be raised.

“This points to the reason why Congress ignores the Conference of Mayors,” he said. “If we go up there and say we want this program but we don’t say how we’re going to get the money for it, I think that’s politically irresponsible.”

Congress’ Help Wanted

At Cooksey’s urging, the committee voted to ask Congress to work with the mayors’ organization to establish a housing fund by earmarking interest on security deposits from tenants, a federal real estate transfer tax, interest on mortgage escrow deposits or assessments on financial institutions.

Republican Mayor John E. Bourne of North Charleston, S.C., noted that he is a realtor and opposed any real estate transfer fees. He was among a handful who opposed suggesting ways to raise money for the fund.

The trust fund would “be generated independently of the federal budget and thus avoid the pitfalls of the deficit debate,” said David C. Orr, vice mayor of Chicago. He spoke for Washington, who Orr said will not arrive until today.

Housing Policy Urged

The resolution is one of nine urging Congress to develop a national housing policy.

Meanwhile, another committee, on environment and economic policies, defeated a resolution by San Francisco Mayor Dianne Feinstein that would have called on Congress to limit corporate takeovers and give cities power to fight mergers that could lead to plant closings and layoffs.

The same committee passed a resolution calling on Congress and the Reagan Administration to “redress the imbalance between military spending and important domestic spending.”

The resolutions will go before all 220 mayors on Wednesday.