House to consider Neighborhood Stabilization Act of 2008 MortgagePress.comHR 5818, Rep. Maxine Waters, Neighborhood Stabilization Act of 2008
This weel, the U.S. House of Representatives is slated to
consider HR 5818, the Neighborhood Stabilization Act of 2008, this
week. The bill, sponsored by Rep. Maxine Waters (D-CA), requires
the Secretary of Housing and Urban Development to make grants and
loans to qualified states, in accordance with HUD-approved plans,
to carry out eligible housing stimulus activities. The legislation
allows states, local government, and nonprofit organizations to use
the loans. The Act imposes the following limitations on the
proposed HUD loans:
Limits the use of such loans to: (1) Purchasing or financing the
purchase of qualified foreclosed housing for resale as housing for
homeownership to families having incomes of up to 140 percent of
the median income for the area in which the housing is located; (2)
rental of such housing only by families whose incomes do not exceed
100% of such median income in the area; and (3) rehabilitation of
such property for the purpose of reselling it within three months
at a price as close as possible to its acquisition price.
Limits the use of grants to: (1) Property holding and operating
costs; (2) property-related acquisition costs; and (3)
state-related administrative and planning costs.
Requires the Secretary, by regulation, to prohibit the use of
such grants or loans for: (1) Political activities; (2) advocacy;
(3) lobbying, whether directly or through other parties; (4)
counseling services; (5) travel expenses; and (6) preparing or
providing advice on tax returns.
Requires the use of such grants to provide housing only for
families with: (1) Very low-income; and (2) extremely
low-income.
Prohibits a loan or grant recipient from discriminating against
a prospective tenant because the individual holds a voucher or
certificate of eligibility under section 8 (public housing rental
assistance) of the United States Housing Act of 1937.
Conditions the use of such loans or grants on a shared
appreciation agreement between the federal government and the owner
of such housing regarding the federal share of proceeds from its
sale or disposition.
Directs the Secretary to require a state to reimburse the
Treasury for amounts of any misused funds. The Act is listed on the
House schedule for consideration as early as May 7, 2008.
For a copy of HR 5818, click
here.
