A new program aimed at boosting homeownership among minority buyers was announced at the annual convention of the National Association of Realtors (NAR).
The One America training program will be developed over the next several months by NAR in cooperation with the Department of Urban Development (HUD). It will be designed to help real estate professionals learn how to work with buyers of different minority groups, cultures and ethnic backgrounds.
“The market is changing for Realtors. If they want to sell homes, they must be able to communicate with buyers,” said HUD secretary Andrew Cuomo, who spoke at the gathering of nearly 18,000 Realtors at the New Orleans convention center.
Cuomo said the nation’s homeownership rate is at an all-time high of 66 percent, “but many people still are locked out of homeownerhip.”
A key factor leading to the new program was the desire of HUD and NAR to reduce the gap between the homeownership rate for whites and minorities. While the homeownership rate of whites is 72 percent, it is only 43 percent for Hispanics and 46 percent for blacks.
“This huge gap must be closed,” said Cuomo, noting that HUD will certify those real estate agents who take the One America course, which will educate brokers and foster cultural awareness and sensitivity. Plus, it will be good business and a new market opportunity.”
Cuomo added that “much of the future growth in homeownership is going to come in urban areas–from minorities, immigrants and women.” This is not a government program, Cuomo said, but rather a private one and “the incentive is profit.”
The U.S. Census Bureau reported that more than 800,000 immigrants entered the country in 1996, or one-third of the year’s total increase in the U.S. population.
“Some families are on the cusp of homeownership,” Cuomo said. “This new program may not solve their problems, but it is one of the tools and will have a very significant impact.”
Cuomo said HUD’s role will not require additional funding, and will be covered by existing resources.
NAR has budgeted $250,000 to develop the program next year. Additional financing is expected on the local level.
In a statement, President Bill Clinton said: “We must do more to break down barriers of housing discrimination and open the doors of homeownership to those who for too long have been locked out. This agreement will help us do just that.”
Cuomo emphasized that the One America program is voluntary, and encourages, rather than forces, market outreach.
The new training and certification will be open to more than 1.5 million members of the real estate industry across the nation, including those who are not members of NAR.
Under the program, NAR will offer training in implementing the Fair Housing Act and find ways to open up housing markets. Agents will not be eligible if they have been found in violation of the law, which bars discrimination because of race, color, religion, sex, disability, family status and national origin. It covers the sale, rental, financing and advertising of almost all housing in the nation.
Cuomo described the law as the stick, while the new program will be the carrot to promote housing.
He noted that President Clinton’s goal for the year 2000 is a 67.5 percent homeownership rate and 8 million new homeowners.
Real estate agents who are certified under the new program will be able to use the One America logo in advertising and promotional materials.
“The One America logo will be a Good Housekeeping seal of approval for Realtors,” said Cuomo.
