Neighborhood Stabilization Act of 2008

NEIGHBORHOOD STABILIZATION ACT OF 2008 -- (House of Representatives - May 07, 2008)

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Mr. ELLISON. Madam Chairman, let me start by thanking Chairman Frank and Chairwoman Waters for bringing this critical and much-needed legislation to the floor. I'm proud to have worked with both of them on this important legislation which represents the most comprehensive response yet in the American mortgage crisis.

The package of housing measures that we will vote on today and that I proudly support will help thousands of families facing foreclosure keep their homes. This bill will ultimately help other families avoid foreclosures in the future and help recovery of communities harmed by empty homes caught in the foreclosure crisis.

This legislation comes before us at an important time in the mortgage foreclosure and housing crisis. The Pew Center has stated that between seven to eight thousand people per day are filing for foreclosure. Hennepin County alone, which is the largest county in the Fifth District of Minnesota that I represent, has experienced a 54 percent increase in foreclosures from the year before. Statewide foreclosures have risen by 39 percent.

The legislation we're considering today establishes a $15 billion HUD-administered loan and grant program for the purpose of rehabilitation of vacant, foreclosed homes with the goal of occupying them as soon as possible.

Madam Chairman, let me just say this: The fact of the matter is that for the people who paid every single mortgage payment and were never late even one time, they are suffering because of this mortgage crisis because they live on a block with foreclosed homes.

This bill saves money. Can you imagine the cost to a city, in terms of fire, police and public works resources, just to be able to deal with a home that's foreclosed on a block? This is saving money. This is actually improving the quality of life for people all over America. And this amount of money that we will spend on this bill will pay thousand-fold in terms of quality of life for people all over this country.

And so I'm proud to be able to associate myself with this bill, proud to be able to say that when the people of America face a serious foreclosure crisis that is affecting not just the victims of foreclosure, but others, we responded.

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