THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, November 30, 1995 TAG: 9511300380
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY MIKE KNEPLER, STAFF WRITER
DATELINE: HAMPTON LENGTH: Long : 116 lines
The state government will launch a $1.4 billion public-private partnership to help more than 15,000 Virginians become first-time homebuyers, Gov. George F. Allen announced Wednesday.
The effort will include more than $50 million in low-interest loans and down-payment assistance to low-income families. It could be used to encourage more police to buy homes in targeted neighborhoods, thereby expanding a program begun by Allen last year.
The announcement came during the 8th annual Governor's Conference on Housing being held in Hampton.
Allen said his administration also will propose legislation to create tax-exempt savings accounts for poor families, helping them put aside money to buy homes, start businesses and improve their education or job skills.
The proposal seeks to authorize 10,000 such savings accounts, which would be augmented by tax-deductible contributions from businesses and individuals, said David Caprara, director of the Virginia Department of Housing and Community Development.
If enacted, the program could put Virginia in the forefront of a national movement to help poor people accumulate savings and other tangible assets, said Robert E. Friedman, a San Francisco-based advocate for such efforts.
Another initiative unveiled by Allen seeks to foster greater tenant management of public housing, including encouraging more local governments to appoint tenants to housing-authority commissions. Tenants already have such seats in Norfolk and Portsmouth.
The initiatives, along with two others, were aimed at tapping more private-sector and neighborhood involvement in solving Virginia's problems, Allen said.
``We can no longer, regrettably, say that all social ills are going to be solved by government,'' Allen said.
Afterward, Allen said he would consider setting a statewide example by appointing a public-housing tenant to the Virginia Board of Housing and Community Development.
The three-day conference, concluding today, has drawn more than 800 participants from across Virginia.
Noting various private-sector, local government and grass-roots efforts around the state, Allen asked for help from the conferees and bi-partisan support from Democrats.
``I don't have all the answers,'' Allen said. ``What we're trying to figure out is how we can marshal all your good ideas, all your support . . . to move Virginia forward.''
Throughout the day, the governor and several top aides also were generous in their praise of housing efforts led by Democrats, such as Dels. Alan Diamonstein of Newport News and James Almand of Arlington.
Allen described Diamonstein, chairman of the Virginia Housing Study Commission, as ``my dear friend . . . who over the years has just been a tremendous leader.''
Caprara called Diamonstein the state's leading champion of housing programs.
In turn, Diamonstein thanked Allen for continuing the annual housing conference that began during the administration of former Gov. Gerald Baliles.
Other speakers also seemed to find common ground on the value of home ownership.
Nicholas P. Retsinas, assistant secretary for housing in President Clinton's administration, said children growing up in owner-occupied homes do better academically than those whose parents are renters.
He said the Clinton administration also is trying to reduce federal regulations that interfere with housing production.
Such deregulation, Retsinas said, will help reach the president's goal of cutting in half the transaction costs of home purchases by the year 2000. That, he said, will decrease some disparities in homeownership rates among various income, racial and ethnic groups.
Other speakers, too, set a conciliatory tone.
Robert Woodson, the conservative founder of the National Center for Neighborhood Enterprise, urged avoidance of political fingerpointing. He asked government and agency officials to have more faith in the ability of low-income citizens to solve many of their problems.
He also said grass-roots-initiated programs have a better chance than government-sponsored efforts to help poor people address social problems such as the breakdown of families, crime and vandalism. MEMO: INITIATIVES
Housing initiatives announced by Gov. George F. Allen on Wednesday:
$1.4 billion public-private partnership to help more than 15,000
Virginians become first-time homebuyers. This will be joint effort of
the Virginia Housing Development Authority, Department of Housing and
Community Development and several banks. It includes $50 million in
low-interest loans and down-payment assistance and issuance of taxable
bonds to help raise money for the programs.
Proposed legislation to allow 10,000 poor families to set up
tax-free, interest-bearing savings accounts to build nest eggs for
buying homes, starting businesses or improving their education or job
skills. Families would be able to deposit up to $1,200 annually over
five years, including up to $600 in matching funds from charitable
private contributions. Donors would get 50 percent tax credits. The
accounts would be administered by certain non-profit agencies, housing
authorities and social service departments.
Intention to ask the General Assembly to endorse greater tenant
management of public housing and encourage more local governments to put
tenants on housing-authority commissions.
Establish deregulation ``report cards'' of local governments as a way
to encourage the lowering of housing-production ``barriers,'' such as
utility hook-up fees, subdivision site standards and restrictions on
manufactured housing.
Creation of a ``Virginia Neighborhood Development Partnership'' to
help citizens and neighborhoods solve community problems. The program
will render advice and other technical help, but the governor was not
specific.
ILLUSTRATION: Photo by VICKI CRONIS, The Virginian-Pilot
Gov. George F. Allen told the 8th annual Governor's Conference on
Housing being held in Hampton that the state is launching a
partnership to help 15,000 buy homes.
by CNB