“Both Rep. Barney Frank and I are committed to requiring both Fannie and Freddie to set up an affordable-housing program similar to that of the Federal Home Loan Banks.”

Sen. Jack Reed

Will proposed GSE reform have a positive impact on affordable housing? 
Yes, if done correctly, GSE reform should dramatically strengthen Fannie Mae and Freddie Mac’s affordable-housing mission. Both Rep. Barney Frank (D-MA-4) and I are committed to requiring both Fannie and Freddie to set up an affordable-housing program similar to that of the Federal Home Loan Banks. We also want to strengthen Fannie and Freddie’s affordable-housing goals. In particular, we want to align their goals with current Community Reinvestment Act income-targeting definitions, which I believe should help the lower end of the conventional market become more liquid.

What is your view of a provision in the reform legislation that would require
Fannie Mae and Freddie Mac to set aside five percent of their profits to fund a Federal Home Loan Banks-style affordable-housing program?
This was the type of formula that I and others originally proposed in the past, but this is
the kind of detail that is part of the legislative process of developing a bill.

What are the chances of reform legislation passing this session? 
I am cautiously optimistic that we can move forward on legislation this year.

Are there any new federal programs under consideration that would provide additional resources for affordable housing? 
I think that we are going to see a number of new initiatives that would provide additional resources for affordable housing.

Has the federal government been providing adequate resources to support affordable housing in local communities? 
No.
   
What can the federal government do to support cities struggling to rebound after years of decline? What has been the key to Providence’s downtown revival? 
The Senate Banking, Housing, and Urban Affairs Committee plans to examine the state of America’s cities, exurbs, edge cities, and ring cities to see what we can do to help with transportation, housing, and job challenges. Providence has benefited from the hard work of many people on a number of these issues — and can serve as an example of how such revivals are possible.

Has the Federal Home Loan Bank of Boston’s Affordable Housing Program been effective in expanding the supply of affordable housing in the region?  
The program has been an incredible boon to the region, which is one reason I decided that such a program would be helpful to have at Fannie Mae and Freddie Mac as well.

Sen. Jack Reed (left) with Sharon Conard-Wells and Joseph Garlick, members of the Federal Home Loan Bank of Boston's Advisory Council, at an Affordable Housing Program training in Providence.

Are the state’s current housing policies, including Rhode Island’s Low and Moderate Income Housing Act, working effectively to ensure an adequate supply of affordable housing in local communities? 
Clearly, affordable housing is an issue that is increasingly important around the state.  For the first time, many middle-class families are worrying about whether or not the next generation in the family is ever going to be able to buy a home. Although these policies are still a work in progress, the state is on the right track towards ensuring that there is adequate affordable housing in every town in our state.

What role have you played in proposals to ban lead paint and to increase heating-assistance funding for low-income residents?
I have been a consistent supporter of programs to reduce and eliminate lead from homes. In 2003, I created the Urban Lead Hazard Reduction Demonstration Program to fight lead poisoning in communities with the highest rates of lead poisoning in children. I have also secured a 25 percent increase in 2001, and a 10 percent increase in 2002 in HUD’s budget to remove lead-based paint, educate families about the dangers of lead, help cities comply with new federal lead-safety regulations, test low-income housing units for the presence of lead, and train inspectors and workers to identify lead contamination in housing.