Background

Affordable housing for moderate-income families has long been a pressing concern for policy-makers. Starting with the creation of the Federal Housing Administration in the mid-1930s, the federal government has created many incentives that facilitate home ownership. During the 1940s and 50s, an unprecedented number of families moved from central cities to suburban communities. This was made possible by subsidy programs such as mortgages insured by the Veterans Administration and the Federal Housing Administration. Despite the availability of these and other government subsidies and incentives, the American dream of home ownership remained out of the reach of many moderate-income families as the cost of housing escalated.

Wilmington, Delaware, ranks near the top third of the most expensive metropolitan areas in the country in which to purchase a home. In 2007, homebuyers needed an annual income of $77,422 to purchase a median-priced home, while median prices in Wilmington were about $237,000. Only 36 percent of Delawareans earned enough to afford a median-priced home. In the past decade or so, subprime mortgages and several other financial products were developed that allowed borrowers who had not previously been eligible based on their incomes and credit histories to qualify for mortgages. This financing allowed an unprecedented number of moderate-income families to purchase homes, but now foreclosures are occurring on an unprecedented scale, and housing prices are spiraling downward. These problems have shaken the financial markets and not been resolved.

The Symposium will begin with lunch and a keynote address by Henry Cisneros, the former Secretary of the U.S. Department of Housing and Urban Development. Mr. Cisneros will discuss the current problems and the role that home ownership plays in enhancing a family’s social and economic opportunities. Cisneros will be followed by a panel of distinguished elected officials, who will react to his remarks and discuss strategies for affordable housing in light of the mortgage meltdown.