Moore Fights for Homeowners and Renters: Bill Would Help Transition Residents of Foreclosed Properties

Press Release

Moore Fights for Homeowners and Renters: Bill Would Help Transition Residents of Foreclosed Properties

Congresswoman Moore introduced legislation (H.R. 5894) yesterday to provide emergency assistance to homeowners and renters that lose their home due to a foreclosure. The Emergency Home Assistance Act would authorize $300 million for the Emergency Food and Shelter Program, which is known for quickly and efficiently distributing money to those in the most need.

"People who lose their homes, whether they are homeowners facing foreclosure or renters given one day's eviction notice because their landlord lost their property, are at a significant risk of becoming homeless or otherwise relying on government housing," Rep. Moore said. "This funding would be used to transition these people, many of whom are innocent victims of the current credit crisis, into a new living situation - usually either another apartment or rental housing of their own."

Under the Emergency Food and Shelter Program, local jurisdictions (usually counties) use a local board to determine which organizations - nonprofits and government agencies - within their communities should receive grants. These organizations then distribute their available funds to help cover the costs needed to transition a family into their own home, which can often mean the difference between stability and living in a shelter.

The bill would allow funds to be used only for a housing purpose and only for those who lived in a property that was foreclosed. Eligible uses for funds could include moving expenses, one month of rent, a down payment on an apartment, or a down payment on a utility.

"Sometimes a small amount of money just to help people find a new place to live or pay a deposit on a utility can mean the difference for a family between an affordable apartment of their own and living in a shelter," Rep. Moore said.

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