Providing for Consideration of H.R. 5818, Neighborhood Stabilization Act of 2008
Floor Speech
PROVIDING FOR CONSIDERATION OF H.R. 5818, NEIGHBORHOOD STABILIZATION ACT OF 2008 -- (House of Representatives - May 07, 2008)
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Mr. Speaker, I rise today in strong support of the Neighborhood Stabilization Act of 2008 and this rule. This New Direction Congress, led by Democrats, understands the impact of this unfortunate Bush economy on neighborhoods throughout America. In order for our country to recover from this economic downturn, it is critical that we stabilize housing for our neighbors and rebuild communities with more affordable housing.
In fact, Federal Reserve Chairman Ben Bernanke urged Congress to take action earlier this week. He stated in part, summarized in this news report, ``The reasons behind surging late payments and foreclosures can vary, and that needs to be taken into account when developing solutions. For instance, in parts of New England, States in the Great Lakes, including Minnesota, Michigan and Wisconsin, show increased mortgage delinquencies and notable increases in unemployment rates. California, Florida, and parts of Colorado, on the other hand, saw delinquencies rise during a period when unemployment generally decreased but the value of homes declined.''
He said, ``A widespread decline in home prices, by contrast, is a relatively novel phenomenon, and lenders and servicers will have to develop new and flexible strategies to deal with this issue. Rising foreclosures add to the glut of unsold homes, and that put more downward pressure on prices, aggravating the housing slump. More rapid declines in house prices could have an adverse impact on the broader economy.''
See, this affects us all, and it affects the stability of the financial system overall. So it is vitally important that we bring this package today, this first bill, the Neighborhood Stabilization Act and more to come because of the record number of foreclosures facing our neighbors back home.
Under President Bush's economic policies, the number of families entering into foreclosure has increased from over 700,000 to 1.5 million last year, but today, we're going to bring new hope to our communities through revitalized neighborhoods and targeted affordable housing to families that need it most.
The Neighborhood Stabilization Act of 2008 provides our local communities with the tools they need to purchase and rehabilitate vacant and foreclosed homes. Now we all know a vacant, deteriorated, foreclosed home in our neighborhood has a devastating impact. We've all seen them. We've driven by them. They're overgrown. They are not paying the taxes like everyone else in the neighborhood is paying. They're causing a drain on services and local governments.
Our initiatives today will help these nonprofit agencies and our local governments purchase those properties, turn them around, rehabilitate them and make them available to families that need them most, and in order to see that families with the greatest needs receive housing first, these new loans and affordable homes will be targeted especially to middle class families and those hardworking families back in our communities.
I know this will help families in my home State of Florida which has been among the Nation's hardest hit States, particularly in my community in the Tampa Bay area. In fact, it was not long ago that one of my neighbors called to tell me that he recently lost his home to foreclosure, and he was dealing with the repercussions from that loss, trying to find another affordable place to live for him and his family.
He was pleased to know, however, that this Congress had already acted on a mortgage forgiveness debt relief act signed into law last year, and because of that act, he will not suffer a double whammy and get hit with an unaffordable tax bill to accompany the loss of his home.
This legislation will help families from my community and communities across this Nation to rebuild and create more affordable housing. I am proud that this Congress has been so proactive and taken so many steps to combat the housing crisis. Millions of Americans will be helped because of the proactive leadership of Chairman BARNEY FRANK on the Financial Services Committee and Chairwoman MAXINE WATERS.
I am pleased to witness firsthand that this new Democratic Congress has made the lives of folks in my neighborhood and my community a whole lot better. Today, we will continue to move forward by passing the Neighborhood Stabilization Act and follow on that with the American Housing Rescue and Foreclosure Prevention Act. These efforts reflect the continued work of this New Direction Congress and offer the most comprehensive response yet to the American mortgage crisis. We are providing much-needed help to hardworking families in this unfortunate Bush economy.
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Mr. Speaker, I would note for the record that the Committee on Financial Services heard from local government officials and housing experts across this country during committee markup and after that. There is no secret that communities across this country need a little bit of help in turning those dilapidated, empty, foreclosed homes into productive, safe, secure housing for families.
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Mr. Speaker, just for purposes of clarifying the record, I think it is important to note that a number of amendments were considered in the full committee, the Committee on Financial Services. And indeed, in the Rules Committee, we considered a number of amendments, and have accepted consideration of seven amendments in this bill that will be voted on later on. Three are Republican amendments.
Now I know the other side has focused a lot on delaying tactics and procedural maneuvers today, and they would love to open this up and have hundreds of amendments considered. A number of amendments filed with the Rules Committee were duplicative. We have tailored this structured rule in a fair manner.
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Mr. Speaker, I urge my colleagues to support the Neighborhood Stabilization Act of 2008 and this rule today so that we can provide our communities with the tools they need to protect our neighborhoods during these economically turbulent times.
And I urge my Republican colleagues not to turn a blind eye to the hardworking families across America that are being squeezed, and your delaying tactics and your procedural maneuvers that are simply delaying our efforts to address the housing crisis for America's hardworking families.
I salute the leadership of Chairman Frank and Chairwoman Waters during this housing crisis and our swift action through this comprehensive housing package that has been encouraged by Federal Reserve Chairman Ben Bernanke and under Democratic leadership. This demonstrates that we are committed to ensuring that families across America can obtain and keep the American dream of homeownership in a safe and secure neighborhood.
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