Most Americans aspire to own their own homes, and it has long been a component of the American Dream. Home ownership serves as an engine of social mobility and the pathway to prosperity. It is a family’s quickest and surest path to self-sufficiency, stability, and security. Today, nearly 70 percent of all Americans are home owners.
Buying a home is often the single largest investment a person will make, and it is an achievement people save and prepare for - mentally and financially - years in advance. The crisis in today’s economy and in the housing market has created devastating consequences for many home owners and communities throughout the country, often through no fault of their own. Too many responsible families, who make their monthly payments and fulfill their obligations, have seen their property values fall, and are now unable to refinance at lower mortgage rates. Too many workers, who have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments and now face possible foreclosure.
Congress established the Neighborhood Stabilization Program last year to sustain neighborhoods facing high rates of foreclosure and abandonment in the wake of the housing crisis. Last month, the Arkansas Development Finance Authority announced that it was making available nearly $18 million in zero-interest loans for housing developments in five Arkansas cities hit hardest by the housing crisis. Public and private developers in Little Rock, North Little Rock, Fort Smith, Fayetteville, and Rogers can access these loans to buy, rehabilitate, or redevelop foreclosed, abandoned, or blighted homes. The new properties can be sold or become affordable residential rental properties.
These emergency funds were specifically intended to benefit people with low and moderate incomes, but the effects will be widespread. Five developers will build a total of 51 single-family homes and 186 multi-family units. These revitalized homes will provide permanent, affordable homes for Arkansas families. Arkansans will be put to work building homes for their fellow citizens, helping provide financial and personal security in an economy that is just now slowly beginning its recovery.
This program helps our communities beyond the homes it will provide for the families who will directly benefit. Keeping homes out of foreclosure helps keep our neighborhoods intact. It reduces the risk of urban blight and protects property values. Keeping neighborhoods intact can inspire further development and investment in the Arkansas communities where these homes will be built.
Everyone has the right to live in a secure home in a safe neighborhood. I extend deep sympathy to Arkansans who have lost their homes or who are in danger of doing so. I expect that the Neighborhood Stabilization Program will help to alleviate some of this strain and provide renewed hope for our people. Recovery from financial crisis is never easy, and we will need strong Arkansas neighborhoods to help us return to prosperity.