FEDERAL HOUSING FINANCE REFORMACT OF 2007

Mr. McCaul of Texas- Mr. Chairman, I rise today in support of an important amendment to H.R. 1427. As we all know, the underlying bill creates an Affordable Housing Fund. In addition, the bill provides for the establishment of an Affordable Housing Trust Fund, should Congress decide to create one in the future. All the moneys from the Affordable Housing Fund would then be transferred into the Affordable Housing Trust Fund.

While I have serious concerns that a fund like this creates the opportunity for fraud, waste and abuse, and detracts from the bipartisan goal of GSE reform, I would like to commend the chairman of the Financial Services Committee for including in the bill a list of prohibited uses for the housing fund grants. These prohibitions include political activities, advocacy and lobbying.

I know that my friends on the other side of the aisle agree with me when I say that government grants should not be used to fund political activities of any sort. If they didn't, they would not have included it in this bill.

My amendment simply applies the exact same restrictions on any future trust fund. While an argument can be made against this amendment that the prohibitions are implied in the text of the bill, it is important in my view that when we are dealing with the taxpayers' dollars that we are as clear and explicit as possible.

I thank the chairman.