Samuel Royer: Hammered by housing prices, first responders, teachers seek relief
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From armed battles on the other side of the globe to terror attacks on our own soil, America is no stranger to turbulent times. For over two centuries, we have counted on brave individuals that rise to the occasion to protect our country and our communities, whether overseas or at home.
This time, the enemy is a virus. For the past 21 months, police officers, firefighters, paramedics and teachers have put their personal health and the health of their loved ones on the line so they can serve their communities amid one of the largest pandemics in history.
Despite continuing to show up for others every day, many of these front-line heroes are getting crushed by skyrocketing housing prices, leaving them seemingly out of affordable housing options. America’s best are drowning and we can’t leave them behind.
Congressmen Conor Lamb, Mike Kelly and Guy Reschenthaler understand the value that first responders and teachers provide to Pennsylvania’s communities. They appreciate the sacrifices they make every day, especially in the face of covid-19. That’s why this trio of local lawmakers has chosen to put partisan differences aside and lead as co-sponsors of the Homes for Every Local Protector, Educator and Responder (HELPER) Act.
This commonsense legislation is now supported by more than three dozen Republican and Democratic lawmakers from every corner of the country, and is desperately needed. Pittsburgh Police Chief Scott Schubert has also endorsed the bill, as has the Pennsylvania Chiefs of Police Association, Pennsylvania Sheriffs Association and Pennsylvania Professional Fire Fighters Association.
According to the latest Case-Shiller index, YOY (year on year) home prices recently surged by almost 20%, with the median price now at an all-time high. However, police, firefighters, paramedics and teachers in Pennsylvania have seen average annual wage growth of just 2% to 3%, leaving this largely forgotten class of first-time buyers essentially boxed out of the housing market.
It’s time for these homefront heroes to enjoy access to the American dream of affordable homeownership. The HELPER Act would help make that idea a reality, creating a viable path for front-line workers to build wealth for themselves and a better future for their families.
Originally introduced in the House and since followed by a companion bill in the Senate, this game-changing bipartisan legislation would eliminate downpayment requirements and offer 100% financing for one-time home purchases for buyers who fall within one of the front-line hero categories: police and corrections officers, firefighters, paramedics and EMTs, and preK-12 teachers.
Passage would mean that if a young firefighter or a middle school teacher wants to purchase a moderately priced home, he or she would receive a loan to finance the entire purchase price.
Another key measure of the HELPER Act is the elimination of monthly mortgage insurance premium requirements. Under the normal FHA system, most homebuyers who cannot afford a 20% downpayment must pay a monthly insurance premium and an upfront cost. A $200,000 home, for example, would normally require a monthly premium of $140. Under the HELPER Act, this additional monthly cost is eliminated.
Not only does this legislation save homebuyers significant amounts of money, but it would be low risk for the federal government; loss only occurs if the homebuyer defaults into foreclosure. Because first responders and teachers are dedicated public servants employed in stable, often career-lasting jobs, the odds of this happening are minimal.
I applaud Lamb, Kelly and Reschenthaler for reaching across the aisle and turning this commonsense idea into a legislative reality. Our first responders and teachers deserve the same access to affordable housing that our veterans do. They deserve to live in the same communities in which they serve without the excessive financial burdens imposed by ballooning housing costs.
They have already sacrificed so much, and they have earned their slice of the American dream. Let’s ensure they receive it.
Samuel Royer is the national director for Heroes First Home Loans.