Don't forget renters - again

Now that the $8,000 federal tax credit for home buyers has been extended, it's time for Congress and the president to move quickly on another front: providing resources to develop rental housing for low-income Americans.

Congress is considering a Department of Housing and Urban Development proposal to invest $1 billion in rental property through the National Housing Trust Fund, which was created last year with bipartisan support. The plan sends the message that, while homeownership is important to the nation's economy, not everybody can be a homeowner. Developing rental options is critical both for housing and the economy.

The foreclosure crisis showed that a one-size-fits-all approach to housing doesn't work. We need a balanced market that offers a range of options. But once again, we are seeing a lopsided debate that ignores the needs of working-class families, seniors, and others with limited incomes.

Along with urging Congress to approve the HUD proposal, the Housing Alliance of Pennsylvania is calling on the Pennsylvania legislature to create a state housing trust fund, which would ensure that federal funds are applied efficiently toward the development of high-quality rental homes. Pennsylvania is one of the few states that lack such a program.

One argument made for the home buyers' tax credit is that it will rejuvenate all the industries that supply components for new homes. The same analysis holds true for building or rehabilitating rental housing. In fact, a study by Econsult Corp. showed that every $1 invested in rehabilitating homes for rental generates more than $2 in economic activity. The biggest impact, in terms of creating the most jobs with the most earnings as well as the most tax revenue, comes through rehab, not construction of single-family homes.

A security guard, nurse's aide, or Wal-Mart associate might not be ready to buy a home, even with the tax credit. The same can be said for disabled citizens, older Pennsylvanians, and newly hired teachers and police officers. But that doesn't mean they shouldn't have access to quality homes. A greater emphasis on incentives to create rental housing could be the answer.

The government is allocating billions of dollars to the tax credit. Now it must invest in rental development. At the same time, Pennsylvania lawmakers should approve the state housing trust fund so we'll be ready when the federal dollars arrive. Let's make sure resources are directed to badly needed, quality rental homes for all income levels.