Federal Housing Finance Reform Act of 2005

FEDERAL HOUSING FINANCE REFORM ACT OF 2005 -- (Extensions of Remarks - November 01, 2005)

SPEECH OF
HON. NYDIA M. VELÁZQUEZ
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, OCTOBER 26, 2005

The House in Committee of the Whole House on the State of the Union had under consideration the bill (H.R. 1461) to reform the regulation of certain housing-related Government-sponsored enterprises, and for other purposes:

Ms. VELÁZQUEZ. Mr. Chairman, I rise today to register my opposition to H.R. 1461 the Federal Housing Finance Reform Act, due to recently add provisions that restrict non-profit organizations from receiving affordable housing funds if they engage in nonpartisan voter registration activities.

On May 25, 2005, the Financial Services Committee reported the GSE bill with strong bipartisan support. I supported moving the bill because it took necessary steps toward expanding homeownership for American families.

However, in an effort to bring the bill to the floor, Republicans altered the language that created an affordable housing trust fund. Under the Republican language, controversial limitations were included to restrict the receipt of the funds by nonprofit organizations. Specifically, the language prohibits nonprofit organizations, including religious groups, from applying for and receiving grants if they engage in, or maintain an affiliation with any organization that engages in, nonpartisan voter registration within the 12 months preceding the application or during the duration of the grant.

This restrictive language has never been debated by the Financial Services Committee, despite the fact that its implications warrant careful study. For instance, the provisions raise significant constitutional questions because they place restrictions on the First Amendment right to affiliate. They also directly contradict current voter registration laws by discouraging civic participation in the democratic process.

Moreover, I am extremely concerned that this language will exempt qualified non-profit groups from providing much needed affordable housing services across the country. The Financial Services Committee had taken great strides in this bill to increase homeownership through the creation of an affordable housing trust fund. Yet, this language throws our bipartisan efforts aside, the impact of which will be felt by the low income, elderly and disabled.

As the Federal Housing Finance Reform Act moves forward through the legislative process, I hope that the Senate and conference committee recognize the harmful effects of these restrictions on non-profit organizations and remove the language that jeopardizes our democratic form of government.

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