Thrift Rescue Should Include Housing Funds, Officials Say
City officials from throughout the country Saturday urged Congress to require savings and loans to set aside money for housing programs as a condition of the $157-billion rescue of the S&L; insurance fund.
Under a plan proposed by the House, at least $75 million would be set aside each year by the nation’s Federal Home Loan Bank Board to provide low-cost loans to thrifts for financing low- and moderate-income housing. Other provisions in the House bill require some types of repossessed property to be set aside for low- and moderate-income housing.
Representatives of the National League of Cities met in Los Angeles last week to endorse the housing-support provisions of the House bill.
“We believe that in bailing out the thrift industry, we should also reexamine and verify the purpose of these institutions,” said Atlanta City Council member Barbara Asher. “They came into being to help people realize the American dream of owning their own home or having affordable housing.”
American taxpayers shouldn’t be asked to pick up the bill for thrift failures without getting something in return, said Asher.
“We urge the savings and loan industry to accept the plan, not as a burden but as a challenge,” she said.