U.S. Senator Ken Salazar Member: Finance, Agriculture, Energy, Ethics and Aging Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release Friday, July 11, 2008		CONTACT:Michael Amodeo – 303-249-5286 Matt Lee-Ashley – 202-228-5905
UPDATE: Senate Passes Housing Recovery Legislation Sen. Salazar: Bill Will Curb Foreclosures, Help Homeowners, and Bolster a Crumbling Pillar of the Economy WASHINGTON, DC – Today, United States Senator Ken Salazar lauded the Senate’s passage of The Housing and Economic Recovery Act of 2008, legislation that will help stabilize the housing sector and get the economy back on its feet and moving again. The bill, which passed the Senate by a series of strong bipartisan votes, will now move to the House of Representatives for consideration. “The bill we passed today will help alleviate some of the pain that American families are feeling as a result of the current housing crisis,” said Senator Salazar. “I am proud to have worked on this bill and to support it. It gets to the roots of the current crisis, while delivering relief to homeowners and communities suffering the debilitating effects of rising foreclosures and plummeting home prices. “As families in Colorado and across the nation struggle to stay afloat during these uncertain economic times, and as the crisis worsens with every passing day, this legislation comes at a crucial time. We still have more work to do, but this bill will bolster one of the crumbling pillars of our economy, so that we restore stability and strength to our country’s economic future.” The Center for Responsible Lending, a non-profit organization that works to eliminate abusive financial practices, projects that Colorado will experience nearly 50,000 additional foreclosures in 2008 and 2009, as adjustable-rate mortgages reset and as home values continue to plummet. In addition to those 50,000 foreclosures, almost 750,000 homes – approximately 35 percent of all the homes in Colorado – will suffer declines in their value for a total decline in statewide home values of $3.2 billion. Specifically, The Housing and Economic Recovery Act of 2008: Provides Help for Homeowners, Homebuyers and Homebuilders Tax Incentives to Reinvigorate Housing Market: Refundable first-time homebuyer credit of 10% of the purchase of a home (up to $8,000) for homes purchased between 4/9/08 and 4/1/09 Tax Relief for Families Facing High Property Taxes: Property tax deduction for non-itemizing taxpayers Provisions to Promote Affordable Housing Development: Increased allocation and simplification of Low-Income Housing Tax Credits (provides leverage for private investment in affordable housing) Increases the Availability of Stable Home Financing Allows Fannie Mae, Freddie Mac, and the Federal Housing Authority greater flexibility in terms of the kinds of mortgages they can purchase and insure, which will increase the availability of stable credit $11 billion increase in use of tax-exempt Mortgage Revenue Bonds (provides low-interest financing and refinancing assistance to low- and moderate-income homebuyers) Help for Families and Communities Facing Foreclosure Pre-Foreclosure Counseling Assistance for Homeowners: $150 million for credit counseling Assistance for Communities Afflicted by Foreclosure: $3.9 billion in CDBG funding for communities to purchase/rehabilitate foreclosed homes Protections Against Future Foreclosures: Stronger disclosure requirements on mortgage documents Assistance for Veterans: Targeted foreclosure prevention assistance for veterans/returning service members Takes Steps to Prevent Mortgage Fraud Creates a federal registry and establish minimum national standards for all residential mortgage brokers and lenders ###