In Houston, Texas, a city program called Homes for

Houston provides closing-assistance of up to $9,500 for

qualified buyers in new-home developments within the city.

Qualified buyers with an income of 80 percent or less of the

median income receive this money as an interest-free, soft

second mortgage. The program then forgives the mortgage of

families who live in the house for five years. Buyers with 80

percent to 100 percent of the median income receive $5,000

for closing assistance. Additionally, Homes for Houston

provides counseling and education for these buyers who are, in

many cases, the first homeowners in their families.

Builders don't sacrifice quality to build affordable

housing. 'Affordable' homes are virtually the same product as

entry-level market-rate homes. They are only financed

differently. With the help of their partners, builders identify creative

ways to reduce development and construction costs without

producing an inferior product.

Most builders, for example, construct affordable

housing on affordable land. When the local government

writes-down the cost of land, it gives builders the chance to cut prices

on housing. In fact, a write-down can mean the difference

between marginally more affordable and significantly more

affordable housing.

Many builders are following the latest trend and

building affordable housing in inner city neighborhoods. These

efforts provide affordable housing while breathing life back

into our cities. A partnership recently formed by the

Clinton Administration, the National Association of Home

Builders and the Conference of Mayors has vowed to construct an

additional one million new homes in the nation's cities

and close-in suburbs over the next ten years.

If interested in finding out about affordable housing

opportunities in your area, check with your local government

or chamber of commerce.

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