President Bush Signs the Housing and Economic Recovery Act of 2008 Into Law
July 30, 2008This monumental legislation includes nearly $4 billion in one-time, emergency neighborhood stabilization funding, a crucial component to addressing the foreclosure crisis. The White House had previously threatened to veto the legislation if it included a provision for the stabilization funding. However, the threat was withdrawn in an effort to avoid further delays in Congress and bring relief to homeowners more quickly.
The emergency neighborhood stabilization funding will facilitate the bulk purchase and rehabilitation of foreclosed homes in targeted areas. In turn, the funding will help stabilize communities, create rental and ownership opportunities for low- and moderate-income families and stop the cycle of disinvestment.
The bill also will create housing trust and capital magnet funds, which will provide a permanent stream of funding for affordable housing development, especially for very low-income families. In addition, the legislation includes a set of important provisions modernizing the Low-Income Housing Tax Credit (LIHTC) program, which is the nation's largest affordable rental housing production program.
The foreclosure crisis threatens not only the millions of homeowners faced with losing their homes but also the low- and moderate-income communities that will become plagued with concentrations of foreclosed properties, which lenders and investors will be unable to sell in the next few years. According to the Center for Responsible Lending, nearly 45 million homes that are not facing foreclosure will decline in value by an estimated $233 billion. Most of this decline will occur in 2008 and 2009 as foreclosures lower the prices of surrounding homes.
House Passes Latest Version of Landmark Housing Legislation
July 23, 2008
The House today passed the Housing and Economic Recovery Act of 2008 (H.R. 3221), the latest version of the comprehensive housing legislation addressing the housing crisis, by a vote of 272 to 152.
National, state and local organizations have been working diligently with mayors and governors across the country to advance this important legislation and, specifically, the neighborhood stabilization funding. Today's vote represents tremendous progress on behalf of entire communities facing the serious, negative impacts of foreclosure.
The Save America's Neighborhoods Campaign, led by Enterprise and comprised of more than 50 industry community development, civil rights and housing organizations, spearheaded successful efforts to ensure the bill includes nearly $4 billion in one-time, emergency neighborhood stabilization grant funding for the purchase and rehab of foreclosed properties.
The bill will also permanently create the National Affordable Housing Trust and Capital Magnet Funds, which are eventually expected to provide about $600 million annually for the production of affordable housing. The legislation includes several provisions to modernize the Low-Income Housing Tax Credit (LIHTC) program, such as allowing the LIHTC to be taken against alternative minimum tax liability. These important changes will help restore the value of the LIHTC and make more LIHTC developments financially feasible and provide much-needed affordable rental housing.
In addition to agreed-upon changes to the bill since Senate passage on July 11, House Financial Services Committee Chairman Barney Frank (D-Mass.) added new legislative language in response to the Administration's request for emergency measures to restore confidence in Fannie Mae and Freddie Mac.
At the urging of Housing and Community Opportunity Subcommittee Chairwoman Maxine Waters (D-Calif.), House Speaker Nancy Pelosi (D-Calif.) and Chairman Frank, Congress included the nearly $4 billion in emergency neighborhood stabilization funding in the bill despite initial opposition from the Administration. The House also included a provision that raises revenue to cover the cost of the stabilization funding in compliance with the House's pay-as-you-go (PAYGO) budget rules.
The Senate is expected to adopt the House-passed bill shortly and send it to the President's desk for his signature. Earlier today, the President announced intentions to sign the legislation.
House Passes HOPE VI Reauthorization
Bill Includes Green Building Provisions
On January 17, 2008, the U.S. House of Representatives passed H.R. 3524, the HOPE VI Improvement and Reauthorization Act of 2007. This groundbreaking
legislation ensures all new HOPE VI developments will meet green building criteria to the benefit of low-income families nationwide.
Rep. Olver, chairman of the House Transportation-HUD
Appropriations Subcommittee,
stated, "Cities and states across the country are raising the bar on the healthiness, energy
efficiency, and environmental responsibility of affordable housing based on the Green
Communities Criteria approach. And they do so because it makes good sense. With this
vote, the 110th Congress had its first opportunity to live up to the spirit of the landmark
energy legislation that recently became law. We took an important first step toward the
Federal government holding itself to a higher standard. Low-income
families and
public housing authorities are reaping the benefits from lower utility bills."
Read the press release. [PDF, 82KB]
HOPE VI fact sheet. [PDF, 372KB] |
