Senate Majority Leader Frist Voices Commitment on Housing Concerns - 1/24/2005 - Real Estate Education Training Schools Conferences

Senate Majority Leader Frist Voices Commitment on Housing Concerns

“I pledge as a United States senator that I will work tirelessly on the Senate floor to remove those obstacles that stand in the way of emboldening the American dream” of homeownership, said Frist.

The Tennessee senator identified excessive regulation, litigation and taxation as the “three biggest drags on the economy,” and he promised that those items would be high on the agenda as the Congress begins its new session.

Frist vowed to take action on the regulatory front, noting that regulations can account for about one-third of what it costs to build an inexpensive home today. “Washington overflows with good intentions but bad results,” he said. “We don’t need a bigger government; we need a smarter, more effective government. Now, more than ever, it’s the Washington regulators who need to be regulated.”

With the Congress gearing up to debate how to make the tax code fairer and simpler, Frist said that “everything is on the table,” but that “there is only one thing that is non-negotiable — any tax reform must promote homeownership.”

In other tax areas, Frist said that he would fight to make President Bush’s tax cuts permanent and to “make sure the death tax stays dead.”

Frist also voiced his commitment to preserving the low-income housing tax credit in the tax code, although he doesn’t know exactly what form it will take.

Declaring that we have a “broken legal system” that costs the economy as much as $250 billion, Frist said that litigation would be the first issue to be addressed in the Senate, and that class action reform is sorely needed to “get rid of frivolous lawsuits that drive up the cost of every consumer good.”

With a new regulatory structure for the housing government-sponsored enterprises soon to be considered on Capitol Hill, Frist said that, “Congress needs to ensure that Fannie Mae and Freddie Mac are given the opportunity to do what they do best — stimulate the secondary mortgage market and expand the supply of mortgage credit while at the same time adhering to the strictest of accounting standards. We will assure they do just that.”

On another issue of importance to home builders, Frist said that he would fight to enact association health plan legislation to allow small businesses to offer “more convenience, reliability, affordability and responsiveness. Now, more than ever, small businesses and employees need to have access to the health plans and services that best suit their individual needs.”

Proclaiming his commitment to the revival and resurgence of small businesses across America, Frist said, “You want to succeed or fail without government intervention. Small businesses like yours are what keeps the American dream alive.

“You make up the industry which is the foundation upon which American communities stand. I stand with you today and I will stand with you tomorrow. Together, we can secure a safer, stronger, healthier and more prosperous America.”

Photograph by Oscar Einzig Photographers