( – promoted by DocHoc)
The Neighborhood Stabilization Act of 2008 authorizes the Department of Housing and Urban Development (HUD) to issue $7.5 billion in grants and $7.5 billion in no-interest loans to states for the purchase, sale, and rehabilitation of vacant foreclosed homes. The legislation allocates funds based on the percentage of foreclosures in a state during the last four calendar quarters and the number of subprime loans that have been delinquent in the state for more than 90 days.
Each state must submit a plan to HUD that outlines how it will disburse the federal grants and loans to government, non-profit, and for-profit agencies, giving preference to activities that serve the lowest-income families for the longest period and that serve homeowners whose mortgages have been foreclosed.
The bill mandates that homes purchased under the act be sold to families with incomes below 140% of the local median income and that housing purchased for rental be available to families whose incomes are less than or equal to the local median income. At least half of the grant money must be targeted to families with incomes below 50% of the local median income and at least half must be targeted at families with incomes below 30% of this income. The bill authorizes the federal government to recoup up to 50% of any appreciation that a property owner gains from resale.
The measure was approved by the House, but Rep. John Sullivan (RWR OK CD 01) voted against saving neigborhoods in his district.
Johnny-Boy is out-of-touch and come November will be out of a job.