Neighborhood Stabilization Act of 2008

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The Neighborhood Stabilization Act of 2008 (H.R. 5818) was a bill in the 110th Congress "to authorize the Secretary of Housing and Urban Development to make loans to States to acquire foreclosed housing and to make grants to States for related costs." (Official title.)[1]

Contents

Current status


Bill summary

  • Allows grants to be used for the purchase of qualified foreclosed housing for resale as housing for homeownership to families with incomes below 140 percent of the median income in the area of the housing, for purchase of foreclosed housing as rental or rent-to-own housing to tenants whose incomes do not exceed 100 percent of the median income for the area, and for rehabilitation of foreclosed housing to comply with codes, safety requirements and increased energy efficiency to help resell the building at a price close to the acquisition price of the housing (Sec. 8).[1]
  • Prohibits grants from being used to provide assistance to homebuyers of single family housing for down payments (Sec. 8).[1]
  • Requires at least 50 percent of grant amounts under this act to be provided to "very low income families," who have an income of 50 percent or lower of the median income in the area, with half of the very low income family grant monies required to go to "extremely low income families," who have an income of 30 percent or less of the median income in the area (Sec. 8).[1]
  • States that recipients of loans or grants under this act may not refuse to lease a housing unit to a person receiving vouchers or certificates of eligibility under section 8 of the United States Housing Act of 1937 and that an owner who receives funds for foreclosed housing must uphold the lease and housing assistance payments contract for tenants receiving section 8 vouchers unless the property is unmarketable while occupied or the owner turns the housing into personal or family use (Sec. 8).[1]
  • Requires owners to provide to tenants with a 90-day notice to vacate, and states that tenants with a lease who enter a lease prior to the notice foreclosure may occupy the premises until the earlier of either the end of the lease or the end of a 6-month period beginning on the date of the notice of foreclosure (Sec. 8).[1]
  • Authorizes $15 billion to be appropriated to the Secretary of the Treasury for foreclosure assistance grants and direct loans under this act (Sec. 14).[1]
  • States that anyone who is not lawfully present in the United States is ineligible for financial assistance under this act (Sec. 16).[1]

Key votes

The House passed the bill on May 8, 2008 by a vote of 239 to 188.


Same for all scorecards:

Scored vote

Scorecard: National Journal 2008 House Scorecard

Org. position: Nay

Description:

"Bar individuals convicted of drug dealing, sex offenses, or mortgage fraud from buying homes made available in the mortgage relief program. May 8. (210-216)"

(Original scorecard available at: http://www.nationaljournal.com/njmagazine/cs_20090228_4813.php)


Same for all scorecards:

Scored vote

Scorecard: Drum Major Institute 2008 House Scorecard

Org. position: Aye

Description:

"The Neighborhood Stabilization Act addresses two important problems plaguing aspiring middle-class Americans: the community breakdown that can result from vacant foreclosed homes in neighborhoods across the country and the lack of affordable housing. Middle-class Americans who are current on their mortgages and face no personal risk of foreclosure are nevertheless harmed when a foreclosed home down the street brings down property values, erodes the local tax base, and threatens to become a magnet for crime. The Center for Responsible Lending has shown that approximately 40.6 million homes will experience devaluation because of nearby subprime foreclosures and that homeowners living near foreclosed properties will lose approximately $5,000 on the value of their homes. At the same time, two of the causes of the foreclosure crisis were a lack of affordable housing and the targeting of low-income neighborhoods by subprime lenders. By funneling federal money to local agencies to serve low-income individuals, the Neighborhood Stabilization Act will help neighborhoods recover from the harm done to their communities by foreclosures while helping to ensure that neighborhoods can accommodate aspiring middle-class Americans. Providing funds for rental properties recognizes that the foreclosure crisis affects aspiring middle-class and middle-class renters as well as homeowners."

(Original scorecard available at: http://www.drummajorinstitute.org/library/report.php?ID=87)

Scored vote

Scorecard: National Journal 2008 House Scorecard

Org. position: Aye

Description:

"Provide loans and grants to assist states in salvaging foreclosed properties. May 8. (239-188)"

(Original scorecard available at: http://www.nationaljournal.com/njmagazine/cs_20090228_4813.php)

The bill never came to a vote in the Senate.[2]

Articles and resources

See also

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Project Vote Smart's info page on Neighborhood Stabilization Act of 2008 (H.R.5818).
  2. OpenCongress' info page on H.R. 5818.
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