The change of guard at the White House may be good news for low-income home buyers. Citing the need to assist "hundreds of thousands of low-income families find dignity in a home of their own," the Republican Party's national platform proposed several new plans for assistance to low income and first-time buyer families by transforming current rental programs into programs to assist these buyers. In the platform are proposals for a federal fund to match $3 (with a cap of $1,500) for every dollar put toward a down payment in the form of a "soft" second mortgage which would not have to be paid back if the buyer meets certain conditions.

Stressing the need to assist low-income and those whose income falls below the median income for their area, the platform pledged its opposition to housing discrimination and support for the mortgage interest deduction on income tax returns, affirming that affordable housing is in the national interest, maintaining that keeping the mortgage interest deduction is vital in assisting toward that goal. The national platform holds that home ownership should be encouraged in any tax reform undertaken by the new Administration.

Encouraging a larger role for state and local governments in controlling federally assisted housing programs, the Republican Party says that such programs have in the past been poorly handled by Washington and feel that local governments are more in touch with citizens' needs. The Bush Administration would put forth programs to turn over abandoned or foreclosed government-owned properties and establish an "urban-homesteading" program, or a citizen renovation program for these properties. Such programs have proven to be successful in the past to revitalize deteriorating neighborhoods.

First-time buyers would benefit from a new program, called The American Dream Down Payment Fund, and a tax credit funding program which would encourage building and redeveloping houses for moderate and low-income buyers. Eligible buyers would be at or below 80% of the median income for the area. Federal funds of $3 for every $1 contribution by a bank or other agency (including individuals) toward a down payment or closing costs, including a "soft" second mortgage if the buyer met certain conditions.

Federal tax credit would be given to states in the way low-income housing tax credits are currently given. Builders, competing for the credits, would either use them against their tax liability in the future or could sell the credits for cash (at discount) to qualified buyers. Cost of the plan is estimated at $1.7 billion over the course of five years. The tax credit would result in approximately 100,000 new or rehabilitated units.

In addition, the Republican platform confirms support for a proposal passed by the House that would allow renters who receive federally supported rental assistance to use their vouchers for home purchase. Renters would receive a year's worth of rental assistance voucher payments in a lump sum to be used as a down payment, and up to five years' worth of vouchers to supplement their mortgage payments. By redirecting current assistance programs, no new federal cost would be incurred. In another aspect of the GOP platform, the Bush Administration would pledge $1 billion to assist low-income citizens to start savings accounts in order to accumulate tax-free money to buy a house, start a business or pay for education.

If followed as promised, the GOP platform would be good news for the low and moderate income citizens who desire to enter the housing market, and could be a first step up toward financial security for many who are not able to take advantage of current programs.