Housing groups back tax credit

A coalition of housing groups said implementing a homeownership tax credit similar to the one proposed by President Bush in his 2004 budget would create jobs, bring private investment to economically distressed neighborhoods and boost homeownership rates among people of all backgrounds and income levels.

At a news conference Monday, coalition representatives said Congress and the president also should look at ways to increase the number of affordable rentals by complementing or improving several other programs that help low- and moderate-income families. Programs include one that gives tax credits to low-income residents and another that allows poor families to use vouchers to rent private apartments.

“We shouldn’t forget that what little strength this economy has had is largely attributable to the housing market,” said coalition member Barton Harvey, chief executive of the Enterprise Foundation, which advocates affordable housing.

The coalition includes advocates for the poor, as well as the National Assn. of Home Builders and the Mortgage Bankers Assn. of America.

A report released last year by the congressionally appointed Millennial Housing Commission found that 28 million households spent more than they could afford on their homes.