Press Release

Media Contact:
Jake Rubin 202.225.5665

CONGRESSMAN  KAGEN  MEETS  THOSE  HELPED WITH  PASSAGE  OF  HOUSING  BILLS

May 9, 2008
Washington, DC -- Congressman Steve Kagen, M.D. today delivered good news to those affected by the housing crisis. Kagen voted yesterday for two housing bills that passed the House and would make it easier for families to stay in their homes and also reform federal agencies. At NeighborWorks in Green Bay, Kagen met with community members and professionals who work to help those in need of credit counseling and mortgage assistance.

 

“This legislation would prevent thousands of homes from falling into foreclosure,” said Kagen.  “This act is not a hand-out.  It is a hand-up to those who need it the most.  We took action to prevent families from losing their homes.”

 

Kagen authored a provision in yesterday’s legislation that would provide grants for mortgage foreclosure and credit counseling for veterans recently returning from active duty.

 

The American Housing Rescue and Foreclosure Prevention Act would establish new reforms in federal agencies such as Fannie Mae and Freddie Mac which dominate the secondary mortgage market. It would also establish a new program, under which the Federal Housing Administration would guarantee refinanced loans for at-risk mortgages. 

 

This legislation would also provide first-time homebuyers a refundable tax credit that acts as an interest-free loan of up to $7,500 to be paid back over 15 years.  It would supply states with additional tax-exempt bond authority in 2008 to refinance sub-prime loans and offer taxpayers that claim the standard deduction with up to an additional $700 standard deduction for property taxes.

 

The Neighborhood Stabilization Act would establish a Department of Housing and Urban Development administered loan and grant program for the purchase and rehabilitation of vacant, foreclosed homes with the goal of occupying them as soon as possible.

 

"Green Bay NeighborWorks is really excited about the passage of this bill," said Jennifer Schnabel of NeighborWorks. "It will provide funding to allow us to offer counseling to households in crisis."

 

NeighborWorks, a national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts has successfully built healthy communities since 1978.  NeighborWorks helpline is 888-995-HOPE.

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