HOUSING

Joe has taken aggressive action to address the most severe housing climate since the great depression. He has called for a four point economic recovery plan which includes a comprehensive housing package to curtail foreclosures and decelerate declining home values. That is why in addition to co-sponsoring a number of critical legislative efforts he introduced the Homeownership Vesting Plan- a comprehensive plan to reduce foreclosures of residential mortgages.

Highlights of Recent Action to Support Housing Market Stability

Authored Homeownership Vesting Plan

Hope for Homeownership Program is too complicated and costly for homeowners and mortgage owners to get significant participation.

Proposed Provision/Amendments:

1. •Eliminate the shared appreciation provisions;
   

2. •Eliminate the 3% exit fee;
   

3. •pay mortgage servicers $1,000 per modified loan;
   

4. •Buy out 2nd other subordinate lien holders at 5 cents on the dollar;
   

5. •Extend to mortgages originated before December 31, 2008; and
   

6. •Cap the eligible loan amount to the current FHA limit.
   

Authored First Time Homebuyer’s Tax Credit Legislation

1. •Expands the Home Buyer’s Tax Credit cap from $7,500 to 10% of the final sale price of a home - capped at 3.5% of FHA loan limits, and would extend the eligibility time frame from an end date of July 1, 2009, to an end date of December 31, 2009.
   

2. •Extends the eligibility time frame from an end date of July 1, 2009 to an end date of December 31, 2009.
   

Authored Legislation to Support Brownfield Economic Development Initiative

Provisions:

1. •Increases funding for the Brown fields Economic Development Initiative (BEDI) to $1.5 billion;
   

2. •Provides that the maximum allowed for grants be increased from $2 million dollars to $100
   

million dollars for the period of the stimulus bill (2 years);

1. •Preserves HUD 108 loan requirement with no maximum debt limit and funded with an additional
   

$1.5 billion; and

1. •Both the HUD 108 and BEDI programs should be permitted to fund infrastructure for  
   

Brownfields development as described above in EPA section.

Authored Legislation to Strengthen Real Estate Market for EPA Brownfield Development

    Provisions:

1. •Increase the House allocation from $100 million currently proposed in the EPA for
   

    Brownfield Redevelopment to $3 billion dollars

1. •Provide that this public money be used to expand the scope of eligible activities under the
   

program to include site assessment, environmental remediation costs, environmental restoration and infrastructure for Brownfields, including but not limited to public sewer and drinking water systems, electrical and gas mains, storm water management systems, copper and fiber teledata communications backbones, parking lots and parking structures, site lighting and sidewalks.

Voted for the Helping Families Save Their Homes Act, S. 896

1. •Reducing Foreclosures/Incentives for Negotiating Affordable Home Loans
   

Fixes to the FHA's Hope for Homeowners program enacted as part of the comprehensive housing reform legislation from last summer.  These changes, specifically outlined as part of the President’s housing package:

1. oLower fees paid by borrowers and lenders.
   

2. oAuthorize incentive payments to servicers of existing loans and underwriters of new FHA
   

refinanced loans.

1. oProvides mortgage servicers with clarity and certainty for their actions, with protection from lawsuits for loan modifications, consistent with the Obama Administration’s program or done through the Hope for Homeowners program.  Mortgage servicers are concerned about the threat of investor lawsuits if they help families in danger of losing their homes with loan modifications.  This provision is critical to the success of the President’s initiative by providing and incentive for servicers to take part in loan modification programs. 
   

2. oGives FHA and USDA’s Rural Housing Service (RHS) flexibility to undertake loan modifications to make the loans affordable, consistent with the Obama Administration loan modification program.
   

3. oEstablishes the right of a homeowner to know who owns their mortgage. 
   

4. oProtects renters who live in foreclosed properties – preventing sudden evictions by requiring a minimum 90-day notice period.  A bank that forecloses on a home must honor the existing lease, unless the property is sold to an owner-occupant.
   

5. oStrengthens tools to ensure that predatory lenders cannot act as lenders or servicers in the FHA programs.
   

6. oExpands federal foreclosure prevention activities by authorizing an extra $130 million for counseling, fair housing field employees, and advertising to increase public awareness about foreclosure scams.
   

7. oStrengthens help for the homeless by authorizing $2.2 billion for homeless programs, streamlining these critical programs to make them more effective, and focusing them more on the fastest growing segment of the homeless population -- families with children – as well as the chronically homeless.
   

1. 1. •Protecting Consumers’ Savings & Strengthening Community Banks and Credit Unions
      

2. oTo protect the bank deposits and savings of bank and credit union account holders, the legislation extends for four years the increase in deposit insurance per account from $100,000 to $250,000.  This will be particularly helpful for small banks and credit unions that derive the vast majority of their funding from deposits and will allow them to provide more credit to consumers and small businesses. 
   

3. oStrengthens the financial situation of community banks and credit unions by:
   

4. oIncreasing borrowing authority both for the FDIC and the Federal credit union regulator permanently (by $100 billion and $6 billion respectively), and establishing temporary additional borrowing authority ($500 billion and $30 billion respectively).  This will reduce the financial burden on the many community banks that contribute their fair share to the stability of the banking system by replenishing the deposit insurance fund, even though they generally did not offer the risky and exotic mortgages at the root of the subprime meltdown.  The temporary loan authority will allow the FDIC to reduce the special assessments on banks, going into effect at the end of May, by as much as 50%, leaving more capital in American communities that need the flow of credit the most.
   

5. oPermitting the FDIC to charge systemic risk special assessments on bank holding companies, for the first time, if they stand to benefit from the government’s actions to stabilize the banking system, which has the effect of reducing costs to community banks.   
   

6. oExpands accountability of financial rescue funds, by putting in place rules for the proposed private-public investment fund to stabilize the banks, including conflict of interest rules, requiring reports on large investors in the fund, and giving the Special Inspector General access to the books of a fund.
   

Voted for Housing Rescue Provisions in Stimulus Package

1. •Treasury Department low-income housing grants in lieu of tax credits: Under current law, taxpayers are allowed to claim a low-income housing tax credit for certain investments made in low-income housing. These tax credits help attract private capital to invest in the construction, acquisition, or rehabilitation of qualified low-income housing buildings. Current economic conditions have severely undermined the effectiveness of these tax credits. As a result, the bill would allow taxpayers to receive a grant from the Treasury Department in lieu of tax credits. Under this provision, States housing agencies would receive a grant equal to up to eighty-five percent (85%) of forty percent (40%) of the state’s low-income housing tax credit allocation in lieu of the low-income housing tax credits they would have received. The sub awards are subject to the same requirements (including rent, income, and use restrictions on such buildings) as the low-income housing tax credit allocations. The grant program would apply to each state’s 2009 low-income housing tax credit allocation.
   

2. •Public Housing Capital Fund: Funding for building repair and modernization, including critical safety repairs. Every dollar of Capital Fund expenditures produces $2.12 in economic return. Total Cost $4 billion
   

3. •HOME Investment Partnerships: enable state and local government, in partnership with community-based organizations, to acquire, construct, and rehabilitate affordable housing and provide rental assistance to poor families. Total Cost: $2.25 Billion.
   

4. •Native American Housing Block Grants: Funding to rehabilitate and improve energy efficiency at some of the over 42,000 housing units maintained by Native American housing programs. Total Cost: $500 million.
   

5. •Neighborhood Stabilization: Funding to help communities purchase and rehabilitate foreclosed, vacant properties in order to create more affordable  housing and reduce neighborhood blight. Total Cost: $2 billion.
   

6. •Homeless Assistance Grants: Funding for the Emergency Shelter Grant program to provide short term rental assistance, housing relocation, and stabilization services for families during the economic crisis. Funds are distributed by formula. Total Cost: $1.5 billion,
   

7. •Rural Housing Insurance Fund: Funding to support billions in direct loans and loan guarantees to help rural families and individuals buy homes during the credit crunch. Last year these programs received a record number of applications. Total Cost: $200 million.
   

8. •Self-Help and Assisted Homeownership Program: Funding for rural, high-need areas to undertake projects using sustainable and energy-efficient building and rehabilitation practices. Funds will be awarded by competition to projects that can begin quickly.
   

9. •Lead Paint: Funding for competitive grants to local governments and nonprofit organizations to remove lead-based paint hazards in low-income housing. Total Cost: $100 million.
   

10. •Rural Community Facilities: Funding to support $1.2 billion in grants and loans to rural areas for critical community facilities, such as for healthcare, education, fire and rescue, day care, community centers, and libraries. There are over $1.2 billion in applications pending. Total Cost: $130 million.
    

    Public Housing

1. •$4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs -- especially those improving energy efficiency in aging buildings.
   

2. •$2 billion for full-year payments to owners receiving Section 8 project-based rental assistance. 
   

3. •$2 billion for the redevelopment of abandoned and foreclosed homes. 
   

4. •$1.5 billion for homeless prevention activities, which will be sent out to states, cities and local governments through the emergency shelter grant formula.
   

5. •$250 million is included for energy retrofitting and green investments in HUD-assisted housing projects.
   

    Benefits for Pennsylvania

1. •$213.2 million through the Public Housing Capital Fund to enable local public housing
   

    agencies to address a national $32 billion backlog in capital needs – especially those improving energy efficiency in aging developments – in this critical element of the nation’s affordable housing infrastructure

1. •$95 million in HOME Funding to enable state and local government, in partnership with community-based organizations, to acquire, construct, and rehabilitate affordable housing and provide rental assistance to poor families
   

2. •$90.4 million through the Homelessness Prevention Fund to be used for prevention activities, which include: short or medium-term rental assistance, first and last month’s rental payment, or utility payments. As such, most of this funding will go directly into the economy of local communities, as the funds will be used to pay housing and other associated costs in the private market
   

    Voted for the TARP Reform and Accountability Act of 2009

    Title V - Hope for Homeowners Improvements

1. 1. 1. •Eliminates 3% upfront premium
         

      2. •Reduces 1.5% annual premium to a range between .55% and .75%, based on risk-based pricing (also makes technical fix to permit discontinuation of fees when loan balance drops below certain levels, consistent with normal FHA policy)
         

      3. •Raises maximum loan to value (LTV) from 90% to 93% for borrowers above a 31% mortgage debt to income (DTI) ratio or above a 43% ratio
         

      4. •Eliminates government profit sharing of appreciation over market value of home at time of refinance. Retains government declining share (from 100% to 50% after five years) of equity created by the refinance, to be paid at time of sale or refinance as an exit fee
         

      5. •Authorizes payments to servicers participating in successful refinancing.
         

      6. •Administrative simplification: (a) eliminates borrower certifications regarding not intentionally defaulting on any debt, (b) eliminates special requirement to collect 2 years of tax returns, (c) eliminates originator liability for first payment default, (d) eliminates March 1, 2008 31% DTI test, (e) eliminates prohibition against taking out future second loans, (f) requires Board to make documents, forms, and procedures conform to those under normal FHA loans to the maximum extent possible consistent with statutory requirements.
         

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    Title VI - Home Buyer Stimulus

1. 1. 1. •Requires Treasury to develop a program, outside of the TARP, to stimulate demand for home purchases and clear inventory of properties, including through ensuring the availability of affordable mortgages rates for qualified home buyers.  In developing such program, Treasury may take into consideration impact on areas with highest inventories of foreclosed properties.  The program will be executed through the purchase of mortgages and MBS using funding under HERA.
         

      2. •In developing such program, Treasury shall provide mechanisms to ensure availability of such reduced rate loans through financial institutions that act as either originators or as portfolio lenders.
         

      3. •Treasury shall make the affordable rates available under this program available in connection with Hope for Homeowner refinancing program.
         

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Voted for the Federal Housing Finance Reform Act of 2007

   

    Establishes a regulatory framework for Fannie Mae, FreddieMac– with a proper focus on safety and soundness, while simultaneously boosting their mission oriented activities.

 

1. •The structure of the new GSE regulator is fashioned in a way that incorporates a true
   

2. •housing focus by establishing a deputy director for mission oversight for all the housing GSEs–Fannie Mae, Freddie Mac and the Federal Home Loan Banks;
   

3. •Safety and soundness is the driving factor for any minimum capital increase. Temporary increases would be regularly reviewed and returned to the statutory level once the “triggering” issue or issues are resolved;
   

4. •Standards overseeing the enterprises’ portfolios are based solely on mission and safety and soundness considerations, and not on broader concerns, such as systemic risk;
   

5. •Program and activity approval processes are rigorous while allowing the GSEs reasonable flexibility for innovation;
   

6. •The determination of the Fannie Mae and Freddie Mac conforming loan limit recognizes that special consideration should be given to high cost areas to ensure borrowers in such areas could benefit from lower rates on conforming loans;
   

7. •Fannie Mae’s and Freddie Mac’s affordable housing requirements are made more challenging and thus convey more of their advantages to targeted home buyers and providers of affordable rental housing. Tougher mortgage purchase goals and a new Affordable Housing Fund will direct FannieMae and Freddie Mac to segments of the market that they previously have not reached.
   

 

Voted for the Recovery Rebate and Economic Stimulus for the American People Act

1. •Increasing Affordable Refinancing Opportunities and Liquidity in Housing Market. For 2008, the bill increases the FHA loan limits up to $729,750, to expand affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration.  To enhance credit availability in the mortgage market, the measure includes an increase in the loan limits for single family homes from Fannie Mae and Freddie Mac from $417,000 up to $729,750 that covers loans made between July 31, 2007, and December 31, 2008.
   

Voted for Affordable Housing for the Elderly Act

1. •The Section 202 Supportive Housing for the Elderly Program is the only U.S. Department of Housing and Urban Development (HUD) program that provides housing exclusively for seniors. This legislation would: help preserve the existing supply of affordable housing for seniors, while facilitating the development of new homes to meet increasing demand; allow for adjustment to Project Rental Assistance contracts to accommodate fluctuations in project costs and emergencies, such as utility cost spikes; and maintain and upgrade existing Section 202 housing by allowing property owners to seek financing for the rehabilitation and improvement of current housing, while keeping costs low for their residents.
   

 

Voted for Comprehensive Housing Package/Responding to Subprime Mortgage Crisis

1. •This comprehensive package provides mortgage refinancing assistance so that families in danger of losing their homes can refinance into lower-cost government-insured mortgages they can afford to repay, and would help at least 400,000 families avoid foreclosure.  The package also creates a federal backstop for Fannie Mae and Freddie Mac, which are crucial to the mortgage market.  This comprehensive package also contains tax provisions to expand refinancing opportunities and spur home buying; and the provisions of the Neighborhood Stabilization Act, FHA Modernization Act, and GSE Reform Act.
   

 

Voted for Neighborhood Stabilization Act/Responding to Subprime Mortgage Crisis

1. •Incorporated the Neighborhood Stabilization Act into H.R. 3221, Comprehensive Housing Package; the Act provides $3.9 billion in grants to state and local governments for purchasing and rehabilitating foreclosed homes, in order to help stabilize communities hurt by rising foreclosure rates.
   

 

Voted for FHA Modernization Act/Responding to Subprime Mortgage Crisis

1. •Incorporated the FHA Modernization Act into H.R. 3221, Comprehensive Housing Package; the Act expands access to affordable mortgages, and to “reverse mortgages” for seniors who need equity from their homes; and raises FHA loan limits to create affordable mortgage loans for moderately priced homes.
   

 

Voted for GSE Reform Act/Responding to Subprime Mortgage Crisis

1. •Incorporated the GSE Reform Act into H.R. 3221, Comprehensive Housing Package; the Act creates a tough, independent new regulator in charge of Fannie Mae and Freddie Mac, in order to ensure tha Fannie Mae and Freddie Mac safely and soundly work to provide our nation’s families with affordable housing; and creates a new permanent Affordable Housing Trust Fund, financed by Fannie Mae and Freddie Mac and not by the taxpayers. 
   

 

Voted for Housing Tax Relief

1. •This bipartisan bill stops the tax on phantom income when a lender forgives some part of a families’ mortgage in foreclosure for three years. It is wrong that homeowners can find themselves facing a large tax bill at the same time that they are losing their homes. This occurs because current law taxes homeowners on mortgage debt that is forgiven by banks. Families dealing with the pain of foreclosure should not have the double burden of a large tax bill for terminating their mortgage through no fault of
   

      their own.

Voted for Mortgage Reform and Anti-Predatory Lending

1. •The bill responds to the subprime mortgage crisis by instituting much needed reform to prevent these bad loans from being made in the first place.
   

 

Voted for the Expanding Homeownership Act of 2007

1. •This bill will revitalize the Federal Housing Administration (FHA), which was established to provide a reliable source of affordable mortgage loans for first-time homebuyers. The bill will enable the FHA to serve more subprime borrowers at affordable rates and terms, to attract borrowers that have turned to predatory loans in recent years, and to offer refinancing to homeowners struggling to meet their mortgage payments in the midst of the current turbulent mortgage markets.

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