Wexler Lauds Passage of Comprehensive Response to America's Housing Crisis

Today, Congressman Robert Wexler (D-FL) lauded the passage of legislation that aggressively responds to the nation’s housing crisis. For the past year, the number of Florida families at risk of losing their homes has spiked dramatically, and currently 1 in every 97 Florida homes is facing foreclosure.  The House of Representatives passed two key pieces of legislation, the Neighborhood Stabilization Act, and the American Housing Rescue and Foreclosure Prevention Act of 2008, aimed at stabilizing the housing market and helping communities recover from foreclosures.

 “Florida has ne of the highest foreclosure rates in the nation, and every time a home forecloses, the value of entire neighborhood declines,” said Congressman Wexler. “This legislation is designed to keep families in their homes, prevent housing values from plummeting, and help neighborhoods recover from the devastating aftereffects of foreclosures.  Homeownership is still the primary method by which most American families build equity, and by stabilizing the housing market, Congress is taking a critical step towards turning our economy around.”

H.R. 5818, the Neighborhood Stabilization Act of 2008, establishes a $15 billion program for States for the purchase and rehabilitation of housing in areas hit hard by the foreclosure crisis.  The legislation puts special emphasis on middle class homeownership, by requiring that foreclosed homes purchased by the States and then placed back on the market are sold to families with incomes that do not exceed 140% of the median area income. H.R. 5818 passed by a margin of 239 to 188.

H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, modernizes the Federal Housing Administration (FHA) program so that borrowers in danger of losing their homes can refinance into lower cost, government-insured mortgages that they can afford to repay.  The legislation also reforms the Government Sponsored Enterprises (GSE’s), such as Fannie Mae and Freddie Mac, by bringing these organizations under a single independent regulator and creating a new fund to boost the nation’s stock of affordable rental housing. Also passed in the package is the Housing Assistance Tax of 2008, which gives middle class, first-time homebuyers a refundable tax credit of up to $7,500, which works like an interest free loan, to spur home buying and further stabilize the market. H.R. 3221 passed in as a series of amendments.

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