He trusted them to follow him where they had never gone before. That is to democratize the country in a few short years. Astrusted them to follow him he moved the country toward a market economy from a command economy. A truck he trusted them to follow him and trust him as he made peace in the cold war against the ancient enemy, the unit United States. He trusted them too much, it turned out. Tonight at 8 00 eastern on cspans q a. On thursday, housing and urban Development Secretary ben carson testified in a oversight hearing about proposed budget ,uts to several hud programs homelessness across the country and Hurricane Relief efforts in puerto rico. This is three hours. We will come to order. Without objection, the chair has authorized to declare arrest a recess at any time. Five legislative days with which to submit extraneous items to the record. The future of housing in america, oversight of the department of housing and urban development. I now recognize myself for three and half minutes to give a Opening Statement. Today, we welcome the 17 secretary of the department of housing and urban development, dr. Ben carson, for his first appearance. In one respect, he may be among the most qualified individual to ever serve as hud secretary. Secretary carson was raised by a single mother with a third grade education. He grew up in poor communities in detroit and boston, lived in multifamily housing with boarded up windows and doors, surrounded by sirens, gangs and murders. Natalie does he understand poverty personally, he understands what it takes to escape it he is passionate about helping others escape as well. He also understands that huds approach to eliminating poverty too often fails and thankfully he is committed to changing it. When it was created 52 years ago hud was intended to be the main weapon in the war on poverty. 1. 6 trillion later the poverty rate remains unchanged. Hud has failed to live up to the aspirations of its birth. I do not it is invaluable part of our social safety net. But i remind all that for the ablebodied there is no bet are Affordable Housing program than a growing committee that creates better jobs and brighter tomorrows. After suffering from eight years of bod Public Policy leading to a sluggish committee that has been growing at barely half of the historic norm working americans deserve fundamental tax returns. There hasnt been any significant tax reform in a century that hasnt groan tax revenues. This growth erased a 5. 6 billion deficit and turned it into a surplus. Even going back to the coolidge era, a series of tax relief resulted in annual average exhibition growth of 4. 7 . We have seen it time and time again when we remove the bush dsrdens and allow them to take more of what they earned we unleashed to create opportunity for everyone. Its not economic theory. Its economic history. Its the very embodiment of Affordable Housing. I also wonder, how can one be for Affordable Housing yet oppose allowing working americans to keep more of their paycheck . So i look forward to hearing more of the new vision for hud and the programs he and his team are beginning to reform. I now yield to the Ranking Member for an Opening Statement. Thank you mr. Chairman. America is currently in the midst of the worst housing crisis we ever experienced. It is hitting our lowest income families the hardest. According to the low Income Coalition the United States has a shortage of 7. 2 million or extremely low income households. Our country is also at a virtual standstill when it comes to reducing homelessness. In some parts of the country homelessness has reached crisis proportions. We also face homeowner ship challenges with minority homeownership rates continuing to lag even as the Housing Market recovers. In the face of Housing NeedsPresident Trump chose dr. Ben carson to serve as head as urban development. The secretary of hud is supposed to be at the forefront to expand access to safe, decent and Affordable Housing and enforce housing rights. Housing is the foundation on which our entire society is built. It is a flat form for economic platform for economic mobility and well being. It is a crucial part of our national economy. It is a necessary human right. We need strong leadership and a bold vision for hud in order to expand access to Affordable Housing in this country. Unfortunately i have seen nothing to indicate that secretary carson is up to the challenge. Secretary carson has expressed views that are deeply alarming to his role as hud such as describing poverty as more of a choice than anything else and saying he doesnt think Public Housing should be too comfortable. His few actions so far as hud secretary are deeply troubling as well. Secretary carson has supported a budget that slashes funding for critical housing programs and proposes harmful rent increases on some of the most vulnerable American Families. He has also moved to roll back obama initiatives with little or no explanation. So i am very much looking forward to hearing from secretary carson today about his actions so far and his plans for serving our nations most vulnerable families. I thank you mr. Chairman and yield back the balance of my time. We recognize mr. Duffy for one and a half minutes. Thank you, mr. Chairman. Over here. Right here. Its hard to find people. I dont know if its secretary or doctor. I think you can tell youll be in for an interesting hearing based on the Opening Statement of the Ranking Member. I would note that poor people have been worse off over the last eight years and minorities have fared worse than the rest of the population. I would argue that with a bigger government you got middle class. Poor people get poorer. Rich people get richer. It happens whenever you implement these policies. To go back to a system that gives people a hand up that helps move them, one of the greatest Brain Surgeons is the american story. Im looking forward to your testimony today. I know you have a lot of reforms you want to discuss with us. Im looking forward to hearing that. I would also like to hear your vision on the prior secretary, when they would look at success of hud, success was viewed in the realm of how many people do we get into the system . Not how many people can i get in. What is the measure of success for hud. My time is up so i look back so i yield back. The time has expired. The future of housing in america strikes me. Thank you for being here. I have opening comments but i may be of greater value if i just tell you that i sat down with shaq to tell him how his father in law and i grew up. We grew up two blocks apart. I ended up getting the opportunity to move out faster than they did. My father said the money, but a lot, but a house, moved the house and i mentioned to you and i always think what would have happened if nobody had helped my mother and father as they were struggling to make a living for four children . I have Three Sisters all with degrees, one with a phd. What wouldve happened if they had ignored us . Housing is important to me. I yield back. The chair recognizes the gentleman from michigan for one minute. Thank you, mr. Chairman. Im glad we are having this hearing. Im glad youre here. The condition of americas cities and towns is a subject thats the jurisdiction of your department. I think in neither case or some time to be fair to you preceding your entry into this position that subject has not gotten nearly the attention that it should. Unfortunately, for decades, important investment in cities and towns, the home program have faced really deep cuts. I grew up in flint, just around the same time you were growing up in detroit. We had a similar childhood experience. A lot of people know flint now because of the terrible crisis that it is facing, coming out of the poisoning. The truth behind clinton story story is it was on the brink of insolvency because the state of michigan and the federal government had eliminated essential support for development of those places. Im anxious to hear how you can square your suggestions to cut further those programs with the sworn oath you took. Time of the gentleman has expired. Today, we welcome honorable ben carson. It is the first time he has appeared before the committee. Dr. Ben carson was sworn in on march 2, 2017. He earned a bachelors degree from yale and received his md from university of michigan medical school. Previously secretary carson served as director at Johns Hopkins childrens center. Without objection the witnesss written statement will be made part of the record. Youre recognized to give an oral presentation. I dont think the microphone is on. If you can turn the microphone on. The red light is on. It is on now. Sec. Carson Ranking Member waters, thank you for inviting me to discuss what we do at housing and urban development. My plans for fulfilling our mission with fidelity is in the best interest of the American People. First, please know that right now, hud is involved in the response to the multiple hurricanes in texas, florida, georgia and u. S. Virgin islands. Hud team is coordinating with our territorial and local Agency Partners providing Housing Solutions for survivors and helping hud assisted clients and fha ensured borrowers. In the longterm, hud will play a key role in Recovery Efforts in these disaster impacted regions as they rebuild. Helping these communities is and will remain a priority for me and this administration. America has changed greatly since hud was established as part of johnsons society half a century ago. We must learn to evolve with the country. Many Americans Still struggle to find Affordable Housing. Chronic homelessness continues to plague tens of thousands of our country men and many millions remain mired in poverty rather than being guide on a path out of it. History has made clear that spending more taxpayer dollars does not necessarily create better outcomes. We must constantly evaluate to ensure we are delivering services effectively and efficiently with the best practices and technologies. Since i arrived at her in march, it has been my mission to employ the well of knowledge held by carriers that to improve our services, reform our programs, and remain careful stewards of taxpayer dollars. After several months of hard work, our team has outlined able plan for institutional reform and improvement that will better serve all americans. Its called the Forward Initiative. The policy element of a Forward Initiative, each fall under what have named the 3rs reimagine how hard works, restore the American Dream, and rethink American Communities. First, reimagining how hud works refers to our internal processes, working conditions, and training. Improvementevery made at hud is to provide Better Service to those in need your second, our job is to restore the American Dream. Hitting americans back on their feet and permanently improving their lives. Tocourse, that is committed hud is committed to serving those families who might always need someone to lean on. Additionally, we have an opportunity to eliminate veterans homelessness in america. Sacrificed for our country and deserve all the support we can give. And finally, we need to rethink American Communities and how we can make them thrive, expanding Community Investment through privatePublic Partnerships produces better results than heavyhanded government intervention. It is also our special priority to help more American Families lived in healthy homes, free of lead hazards and other poisonous substances. As a doctor, i have seen firsthand the tragic consequences of childhood exposure to dangerous building materials. Ridding our homes of hazards is a great cause for future generations. While pursuing his mission to provide safe, decent and Affordable Housing, the hud team is also cognizant of its vital duty to be a good steward of taxpayer dollars. The president has directed federal agencies to take special care against earning American Families and their businesses with unnecessary and expensive regulations. Hud is reviewing its existing regulations to assess their compliance, costs, reduce Regulatory Burden and build a efficienttive and agency. Let me close by reiterating the interest of our administration and my personal interest in working with this committee on Housing Finance reform. Will be inactive participant in this critical dialogue because of our fundamental Housing Mission and because our fha Mortgage Insurance Program are a jenny may fundamental reform should be built on sharing goals of ensuring a well functioning Housing Finance system that provides access for creditworthy borrowers who are ready to own a home. Expands the role of the private sector and reduces overall taxpayer exposure. Thank you for inviting me to testify today and i welcome any questions. Chair recognizes himself for five minutes for questions. Secretary carson, my colleague, mr. Duffy, alluded in his Opening Statement to kind of metrics of success. And there are some who view the success of hud to be tied to the size of its budget or the number of people who have section 8 vouchers. But i am curious, does hud have or is hud developing any different metric . I mean, how many people actually get to escape poverty . How many ablebodied individuals are able to escape poverty to move beyond section 8 housing and maybe at one point enjoy the dream of Home Ownership . Does hud have any way to measure this . Are we looking at this wrong . Should there be a different metric of success for what youre doing . There have been a number of studies over the course of decades. And as was mentioned in your Opening Statement, there hasnt been a tremendous amount of progress there. This is not because the people who have been there have had bad intentions. I think they have very good intentions. But we do have to look at the fact that were not making a great deal with progress with poverty. And thats why we are looking to reform this whole thing. And really looking more at the person than at the housing complex. Housing is a component of developing people. We have to recognize that we only have 330 Million People in this country. We have to compete in thefuture with china and india, who have four times that many people. That means, if we dont develop all of our people, we are not going to be able to keep up in the future. Its as simple as that. We have to start thinking in terms of Wholistic Development of people and communities. How do we enable people to climb that ladder of opportunity. How do we incentivize them to climb that ladder of opportunity so that they become part of the strength of this country. Part of Affordable Housing is obviously tied to our Housing Finance system. Recently, Federal Reserve governor Jerome Powell said, if congress does not enact reforms over the next few years we are at risk of settling for the status quo, a government dominated Mortgage Market with insufficient private capital to protect taxpayers and insufficient competition to drive innovation. Do you agree or disagree with governor powells assessment . There is no question that we need to engage in a serious discussion about finance reform. A lot of progress has been made, by the way. Ten years ago we were talking about how important it is to get everybody into Home Ownership. And again, i am not criticizing the people who did that. But i dont think they realized that to put somebody in a home that they cant afford is not really doing them a favor. They lose the home. They lose their credit. They lose their future opportunities. We have to learn from those kinds of situations. And innovation is the hallmark of america. Mr. Secretary, can we reform our Housing Finance system without reforming fha, which is obviously under hud . Fha, as you probably know, the largest guarantor of mortgages in the world. So its an essential part of it and needs to be reformed as well. Well, historically the mission of fha was to support firsttime and lowincome lowtomoderate income families. And it had a small footprint in the market. Now it has a very large footprint in the market and, in many areas of the u. S. , the fha loan limits are the same as the conventional market, 636,150 in socalled highcost areas. At least where i come from, only the top wageearners can afford a mortgage of 636,000. Do you agree that establishing a home price or loan limit more in line, say, with the me