I want to thank the Chairman for holding what I expect will be a highly informative review of the current Federal Home Loan Bank System and the future oversight of the system. The Home Loan Bank System has proven valuable in providing an affordable source of credit for home lending, contributing to a healthy housing market and reasonable financing for homeowners. While I expect the Cominittee to probe the proposed changes to the Federal Housing Finance Board's oversight of the Home Loan Banks, I wanted to take the opportunity to express my enthusiasm for the Community Investment Program's (CIP) prospect for providing resources for housing and community development in underserved communities.
I am encouraged that since the CIP was authorized by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the program has financed over 32 1,000 homeownership and rental units. By facilitating the availability of long-term permanent financing for the development of low- and moderate income housing, many low income Americans are now able to afford their first home. I also believe the CIP can be instrumental in securing mortgage loan financing for Native American designated housing entities. As Chairman Morrison may know, my state of South Dakota contains several of the poorest counties in the nation, all of which are within reservation boundaries. I believe strongly that housing is an integral and most basic component to economic development for Indian and non-Indian communities alike, and that federal initiatives such as CIP can help achieve the important goal of providing decent, affordable housing.
I have long supported housing initiatives aimed at advancing entire communities, not only to
provide shelter, but to build cities and towns in which people can live and work safely and
productively. I appreciate the Subcommittee Chairman's continued efforts to ensure a solid and
secure home loan banking system, and I look forward to constructive discussion this morning on
proposals to enhance and improve the current system.
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