LOW-INCOME ENERGY ASSISTANCE

In 1979 I proposed a program to provide an annual total of $1.6 billion to low-income households which are hardest hit by rising energy bills.  With the cooperation of Congress, we were able to move quickly to provide assistance to eligible households in time to meet their winter heating bills.

In response to the extreme heat conditions affecting many parts of the country during 1980, I directed the Community Services Administration to make available over $27 million to assist low-income individuals, especially the elderly, facing life threatening circumstances due to extreme heat.

Congress amended and reauthorized the low-income energy assistance program for fiscal year 1981, and provided $1.85 billion to meet anticipated increasing need.  The need for a program to help low-income households with rising energy expenses will not abate in the near future.  The low-income energy assistance program should be reauthorized to meet those needs.

HOUSING

For the past 14 months, high interest rates have had a severe impact on the nation’s housing market.  Yet the current pressures and uncertainties should not obscure the achievements of the past four years.

Working with the Congress, the regulatory agencies, and the financial community, my Administration has brought about an expanded and steadier flow of funds into home mortgages.  Deregulation of the interest rates payable by depository institutions, the evolution of variable and renegotiated rate mortgages, development of high yielding savings certificates, and expansion of the secondary mortgage market have all increased housing’s ability to attract capital and have assured that mortgage money would not be cut off when interest rates rose.  These actions will diminish the cyclicality of the housing industry.  Further, we have secured legislation updating the Federal Government’s emergency authority to provide support for the housing industry through the Brooke-Cranston program, and creating a new Section 235 housing stimulus program.  These tools will enable the Federal Government to deal quickly and effectively with serious distress in this critical industry.

We have also worked to expand homeownership opportunities for Americans.  By using innovative financing mechanisms, such as the graduated payment mortgage, we have increased the access of middle income families to housing credit.  By revitalizing the Section 235 program, we have enabled nearly 100,000 moderate income households to purchase new homes.  By reducing paperwork and regulation in Federal programs, and by working with State and local governments to ease the regulatory burden, we have helped to hold down housing costs and produce affordable housing.

As a result of these governmentwide efforts, 5 1/2 million more American families bought homes in the past four years than in any equivalent period in history.  And more than 7 million homes have begun construction during my Administration, 1 million more than in the previous four years.