For large communities, especially major metros like Houston, Dallas, and Austin, the condo conversion issue must be a “both-and” proposition rather than an “either-or” question.

While rented apartments that are converted to fee-simple ownership units usually hit the market at a price below the average single-family home, providing first-time buyers and low-income wage earners with a better possibility of owning the roof over their heads, the conversions significantly reduce the number of rental housing units needed for people who will never have the means to even consider owning a home.

The challenge for most jurisdictions has been balancing the inventory.

The Washington, D.C.-based National Low Income Housing Coalition, which has sought creative ways to fund basic shelter for more than a decade, is looking for more legislative sponsors for HR 2895, the National Affordable Housing Trust Fund Act of 2007, which would establish a national housing trust fund (www.nhtf.org) with dedicated sources of funding for the production, preservation, and rehabilitation of 1.5 million affordable housing units in 10 years. At least 75% of the funds would be designated to provide housing for households that are extremely low – those earning less than 30% of an area’s median income.

The NLIHC says the promotion and perception of homeownership as the American dream has gone way overboard. While nearly two-thirds of the nation’s households now own their homes, the remaining portion goes underserved. Low-income citizens are referred to as “those people” and the government is not doing as much for them as it does for owners, according to Sheila Crowley, NLIHC president.

“The picture that has been painted about homeownership has in a way demonized renters,’’ Crowley says. “They are seen as the ones who have been unable to get there, despite all the programs the government has pushed to get under way. There’s an over-desire to own, but there has not been the federal investment in rental housing that there should be.”

Crowley is tough, clear, and experienced in the way things work on Capitol Hill. She is creative and blunt – as just about anyone pushing for the same cause for 10 years might be. She constantly seeks ways to fund basic shelter, so any “extras” in addition to a primary residence simply don’t register on her monitor. I found that out a few years ago when the subject of second-home sales were shown to be a major contributor to the national housing picture.

“Second homes would have to be classified as a luxury,” Crowley believes. “I mean, does anybody really need one? So, why not have a surtax on them? Can you image how quickly the homebuilders would move to get that notion turned around?”

The Housing Trust Fund, which would provide the spark for low-income rental building, would be distributed by a formula allocation developed by the United States Department of Housing and Urban Development. The way it is now proposed, the distribution of funds would ensure that every type of community has access to funds.

The fund would also encourage “matches” from states, jurisdictions, or nonprofits. For example, if an entity uses locally controlled federal dollars, it would receive two federal trust fund dollars for every dollar the entity provides.

Crowley says that while some may criticize the trust fund by claiming that existing programs will suffice, “the stark reality is that the federal budget is in a deep deficit and anything other than small improvements to the funding levels of existing programs is not likely in the foreseeable future. The National Affordable Housing Trust Fund will not depend on regular appropriations nor will it reduce funding to existing programs.”

Three decades ago, there were plenty of buildings for low-income renters. The NLIHC is pushing for new methods to bridge the gap that occurred in the availability of low-income rental units that grew from what it contends to be government neglect. What, exactly, happened?

A couple of primary factors is “gentrification,” a nationwide phenomenon where aging, usually inner-city neighborhoods suddenly become desirable. Affluent young homeowners moved in and fixed up houses, which was good for the neighborhood but hard on the low-income residents who were displaced. Another factor is that support has dwindled for Section 8 subsidized-housing assistance available to low-income renters.

According to the NLIHC, there are only 6.2 million homes renting at prices affordable to the nine million extremely low income renter households – a shortage of 2.8 million homes. Housing is considered affordable if it costs no more than 30% of household income.

Not everybody can own. It’s critical to restore, produce, and offer incentives for developers to construct affordable rental units.