Crawford, Texas, June 15 (Bloomberg) -- President George W. Bush said the government should give grants to low-income Americans and tax credits to developers to help black and Hispanic Americans buy homes.
Bush said in his weekly radio address from his ranch in Texas that nearly 75 percent of white Americans own their homes while less than half of black and Hispanic Americans are homeowners.
``We must begin to close this home-ownership gap by dismantling the barriers that prevent minorities from owning a piece of the American dream,'' Bush said.
Bush is turning his attention this week to expanding home ownership, a theme in his 2000 presidential campaign, White House Spokesman Ari Fleischer said. On Monday, he'll tour a community redevelopment project in Atlanta and on Tuesday he'll make remarks at the U.S. Department of Housing and Urban Development.
The U.S. government long has encouraged home ownership, including allowing an income tax deduction for mortgage interest.
In a Democratic response to Bush's address, two senators said Congress should pass legislation to reduce the cost of prescription drugs for the elderly. They criticized a Republican plan that would use a delivery system by private insurers.
``These situations are life-and-death reality for too many of our nation's seniors,'' Senator Bob Graham of Florida said. ``What they need is an affordable and accessible prescription drug benefit that is part of Medicare.''
Senator Zell Miller of Georgia joined Graham in the radio address.
Down Payment Fund
Bush said he wants to expand government aid to create a $1 billion ``American Dream Down Payment Fund'' to help as many as 40,000 low-income families buy a first home every year with grants of about $5,000.
The grants, which wouldn't have to be repaid, would be made available to buyers whose incomes don't exceed 80 percent of their areas' median income, according to Bush's 2003 budget proposal.
Bush also proposed $2.4 billion in tax credits for housing developers that build affordable housing in ``distressed'' areas, a project he said would lead to construction of 200,000 new homes.
Both proposals would require congressional approval. Congress hasn't acted on either one.
A record 68 percent of Americans are homeowners, according to Fannie Mae, the largest buyer of U.S. mortgages. The rate may rise to 71 percent or higher as baby boomers move into their prime earning years, Franklin Raines, Fannie Mae's chief executive officer, said earlier this year.
The administration also is stepping up efforts to better educate first-time home buyers, Bush said.
``Education is the best protection for families against abusive and unscrupulous lenders,'' Bush said. ``Financial education and housing counseling can help protect home buyers against abuses, greatly improve the loan terms they are offered, and help families get through tough times with their homes intact.''