Congressman Donnelly Supports Passage of Comprehensive Housing Package
Press Release
Today, Congressman Joe Donnelly joined a bipartisan majority in the House of Representatives in support of a landmark housing package designed to keep people in their homes and stabilize the housing market. Included in the package is legislation introduced by Donnelly that would strengthen the manufactured housing industry.
"This legislation represents the most comprehensive response to date to the housing crisis," Donnelly said. "Helping the housing market recover is critical to turning around our economy."
The Foreclosure Prevention Act of 2008 would allow the Federal Housing Administration (FHA) to guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders. By establishing a mutually agreed upon plan, borrowers at risk of foreclosure could remain in their homes, causing less disruption to families and lessening the impact on jobs and school attendance.
Also included in this bill is legislation introduced by Donnelly that would raise loan limits for the first time since 1992 on FHA Title I-insured manufactured home loans, allowing more people to enter into a mortgage that they can afford.
"Manufactured housing is a good source of affordable housing for low- and middle-income Americans. This critical piece of legislation is good for Indiana and good for America," Donnelly said.
The comprehensive package also includes a number of tax incentives to help prospective and current homeowners. Under the legislation, first time homebuyers would be eligible for a refundable tax credit of up to $7,500 to help with a down payment; and homeowners who do not itemize their tax returns would be eligible to deduct up to $350 ($700 for couples) of the cost of state and local property taxes in 2008.
The Neighborhood Stabilization Act of 2008, which also passed in the House today, would provide $15 billion in loans and grants to states to acquire vacant, foreclosed homes. As a result of this legislation, local communities would be able to rehabilitate foreclosed properties, which drive down the value of neighboring homes, and place these homes back on the market.
"The housing crisis affects us all," added Donnelly. "In 2007 alone, 53,000 Hoosier homes received foreclosure notices. Hopefully, these two pieces of legislation will help end the crisis and get our economy back on track."
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