Business forum: Put affordable housing into the election

The "American Dream" of an affordable home is something most people care about, both for themselves and as a foundation for a strong economy.

But this important social and economic issue is being largely ignored or forgotten in the presidential sweepstakes. Meanwhile, from Wall Street to Main Street, the affordable housing issue is being overshadowed by the credit crisis sparked by the implosion of subprime lenders.

But the people are way out in front of the candidates on affordable housing. A recent Zogby Poll said that 70 percent of Americans are more likely to choose a 2008 presidential candidate who articulates a plan for providing affordable housing.

In the past, affordable housing has been dumped into a pile of issues that affected people living at or near the poverty line. Now, it's clear that finding affordable housing is becoming much harder for middle-class working families, as well as very low income people, seniors on fixed-incomes and people with mental or physical disabilities.

In many cities around the country, teachers, police, firefighters and service-industry workers cannot afford to live in the communities where they work.

The first question to ask a presidential candidate is how will he or she get the federal government back into the affordable housing business? The feds have largely abandoned the role established in the mid 1960s when the Department of Housing and Urban Development (HUD) was made into a cabinet-level institution to design and help implement a national housing policy. What is the candidate's plan for restoring HUD's role as a valued partner with public and private housing providers?

There is some evidence that Congress is ready to join with the next president to advance the cause. Recent legislation funded certain HUD programs at higher levels than those proposed by the White House. Also, an analysis of recent congressional "earmarks" shows that significant chunks of money are going to housing initiatives in some congressional districts. That shows there is a demand for publicly supported housing initiatives, and that members of Congress are willing to respond.

We have read about the increase in mortgage foreclosures because of the crumbling of the so-called subprime mortgage market. Many lenders, some with good intentions and some not, gave mortgages to families that couldn't afford to pay the money back. Now, the losses are mounting, causing many mortgage companies to go out of business. Many economists say the slow housing market is having a ripple effect on the economy.

What is the candidate's position on the mortgage crisis? How will the candidate help the families who became victims of those bad loans? Ask the candidate what needs to be changed in the larger mortgage system.

Commercial banks have plenty of regulation -- some would argue too much. But independent mortgage companies may have too little regulation. What will the candidates do to make Federal Housing Administration (FHA) mortgage products once again meet the needs of middle and lower-income households?

In part, the subprime mess resulted from the FHA abandoning its traditional role in financing the housing needs of American families. Let's push for a permanent solution that engages both the public and private sectors.

Housing and transportation

Of course, federal housing policy is much more complicated that just fixing HUD and straightening out the mortgage crisis. Consider the relationship between housing and transportation. A recent study of 28 metropolitan areas by the Center for Housing Policy concluded that working families that moved further from work to get affordable housing actually ended up spending more in increased transportation costs than they saved on housing.

This has implications for policies that promote urban sprawl and cost all of us more money over the long haul. What kind of urban policy changes are important to the presidential candidates?

In Minnesota, we have a tragic reminder of the importance of maintaining our transportation system to meet the needs of a growing population. Transportation, housing and jobs all have to work together, with state and federal policies that support those interrelated efforts. This makes good economic sense. Let's make sure all candidates are committed to making the right connections with these key policies.

With the Republicans coming to town for their national convention in 2008, we have a perfect opportunity to pop the questions on housing and urban policy. Democrats, too, should be challenged on housing and urban issues.

We also have a hot Senate campaign brewing in Minnesota, and those candidates should be asked the same tough questions.

We have an opportunity to make the upcoming elections about issues that matter to people. Nothing is more basic than a decent and affordable place to live.