Smith Bill to Keep Families in their Homes Passes Senate
Press Release
Smith Bill to Keep Families in their Homes Passes Senate
$122 million in assistance for Oregon homeowners, green tax incentives included in housing stimulus package
With over 1400 mortgages in default just in Oregon, the Senate today passed legislation that will help slow the skyrocketing rate of foreclosures. The provision, authored by Senators Gordon Smith and John Kerry, will provide $122 million in new mortgage financing assistance to struggling Oregon homeowners.
"The escalating housing crisis is devastating communities, shaking our economy and putting the financial security of millions of families at risk. Entire blocks in some areas now sit vacant because homeowners had no way to get help," Smith said. "Providing safe and fair options will not only save family homes, it will keep our economy on firm ground. This is a solid step in the right direction."
Also included in the housing stimulus bill was a provision supported by Senator Smith to create $20 billion of investment in clean energy. The legislation, co-authored by Senators Maria Cantwell (D-WA) and John Ensign (R-NV), extends several energy tax incentives and credits, including production tax credits for businesses who install solar and fuel cell equipment and homeowners who make qualifying energy efficient investments.
The Smith-Kerry provision would temporarily expand the use of state bonding programs to include refinancing of subprime loans and allow states to issue up to $10 billion in additional bonds over the next three years. Under current law, state and local governments may issue bonds to finance new mortgage loans only to first-time homebuyers.
The provision will translate to roughly $122 million in new bond authority to address the Oregon's housing needs. Nationwide, it is estimated that the proposal would lead to roughly 80,000 new loans according to the National Council of State Housing Agencies. The housing stimulus package passed the Senate today by a vote of 84 to 12.
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