Signed by President George Bush

Vote Smart's Synopsis:

Vote to pass a bill that increases mortgage grants, mortgage limitations, various property assistances to the homeless and veterans, and the line of credit for mortgages under Fannie Mae and Freddie Mac.

Highlights:

• Increases the national debt limit from $9.82 trillion to $10.62 trillion (Sec. 3083).

• Establishes the Home Ownership Preservation Entity Fund to fund the HOPE (Home Ownership Preservation Entity) for Homeowners Program, which will insure up to $300 billion for 30 year refinanced loans for distressed borrowers between October 1, 2008-September 30, 2011 (Sec. 1402).

• Provides that the mortgagor and the Secretary for Housing and Urban Development each receive 50 percent of the appreciation value for each eligible mortgage insured under the HOPE program if changes occur to the property value 5 years after the loan is taken over by HOPE (Sec. 1402).

• Allocates $3.92 billion in grants to States and other units of local government to redevelop abandoned and foreclosed property and $180 million to the Neighborhood Reinvestment Corporation, given that at least 15 percent of the $180 million be provided to housing counseling organizations that provide services for loss mitigation to minority and low-income homeowners (Sec. 2305).

• Establishes a Housing Trust Fund to be used to increase and preserve the supply of rental housing for extremely low and very low-income families (Sec. 1131).

• Establishes the Federal Housing Finance Agency, with regulatory authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance (Sec. 1101).

• Sets conforming loan limitations for Fannie Mae and Freddie Mac at a maximum of $417,000 for a single-family residence up to $801,950 for a 4-family residence, adjusted annually (Sec. 1124).

• Raises the limits on the size of the principle mortgage obligation that is eligible for insurance for most homeowners, up to 115 percent of the local area median house price for single-family homes (Sec. 2112).

• Increases conforming loan limitations in areas where the average house price is over 115 percent of the housing price index (Sec. 1124).

• Increases appropriations under the McKinney-Vento Homeless Assistance Act from $70 million to $100 million for the fiscal year 2009 (Sec. 2901).

• Increases housing benefits for specially adapted houses for disabled veterans from $10,000 to $12,000, with increases each year tied to the residential home cost-of-construction index (Sec. 2605).

• Changes the limitation on the sale, foreclosure, or seizure of property owned by service members from 90 days to nine months after their return from military service, and limits their interest rates to 6 percent during service and one year after their return (Sec. 2203).

• Provides first-time home buyers with a tax credit of up to $7,500 for residences purchased on or after April 9, 2008, which the homebuyers will repay over fifteen years following their purchase (Sec. 3011).

• Expands home ownership counseling eligibility to include people who have a reduction in income due to divorce or death, or who have an increase in expenses due to medical expenses, divorce, unexpected property damages not covered by insurance, or a large property tax increase (Sec. 2127).

• Allows a real property tax deduction on the amount of state and local real property taxes paid during the taxable year of up to $500 for individuals and $1,000 for joint returns, applicable to taxable years beginning in 2008 (Sec. 3012).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases mortgage grants, mortgage limitations, various property assistances to the homeless and veterans, and the line of credit for mortgages under Fannie Mae and Freddie Mac.

Highlights:

• Increases the national debt limit from $9.82 trillion to $10.62 trillion (Sec. 3083).

• Establishes the Home Ownership Preservation Entity Fund to fund the HOPE (Home Ownership Preservation Entity) for Homeowners Program, which will insure up to $300 billion for 30 year refinanced loans for distressed borrowers between October 1, 2008-September 30, 2011 (Sec. 1402).

• Provides that the mortgagor and the Secretary for Housing and Urban Development each receive 50 percent of the appreciation value for each eligible mortgage insured under the HOPE program if changes occur to the property value 5 years after the loan is taken over by HOPE (Sec. 1402).

• Allocates $3.92 billion in grants to States and other units of local government to redevelop abandoned and foreclosed property and $180 million to the Neighborhood Reinvestment Corporation, given that at least 15 percent of the $180 million be provided to housing counseling organizations that provide services for loss mitigation to minority and low-income homeowners (Sec. 2305).

• Establishes a Housing Trust Fund to be used to increase and preserve the supply of rental housing for extremely low and very low-income families (Sec. 1131).

• Establishes the Federal Housing Finance Agency, with regulatory authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance (Sec. 1101).

• Sets conforming loan limitations for Fannie Mae and Freddie Mac at a maximum of $417,000 for a single-family residence up to $801,950 for a 4-family residence, adjusted annually (Sec. 1124).

• Raises the limits on the size of the principle mortgage obligation that is eligible for insurance for most homeowners, up to 115 percent of the local area median house price for single-family homes (Sec. 2112).

• Increases conforming loan limitations in areas where the average house price is over 115 percent of the housing price index (Sec. 1124).

• Increases appropriations under the McKinney-Vento Homeless Assistance Act from $70 million to $100 million for the fiscal year 2009 (Sec. 2901).

• Increases housing benefits for specially adapted houses for disabled veterans from $10,000 to $12,000, with increases each year tied to the residential home cost-of-construction index (Sec. 2605).

• Changes the limitation on the sale, foreclosure, or seizure of property owned by service members from 90 days to nine months after their return from military service, and limits their interest rates to 6 percent during service and one year after their return (Sec. 2203).

• Provides first-time home buyers with a tax credit of up to $7,500 for residences purchased on or after April 9, 2008, which the homebuyers will repay over fifteen years following their purchase (Sec. 3011).

• Expands home ownership counseling eligibility to include people who have a reduction in income due to divorce or death, or who have an increase in expenses due to medical expenses, divorce, unexpected property damages not covered by insurance, or a large property tax increase (Sec. 2127).

• Allows a real property tax deduction on the amount of state and local real property taxes paid during the taxable year of up to $500 for individuals and $1,000 for joint returns, applicable to taxable years beginning in 2008 (Sec. 3012).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt an amendment to HR 3221 that changes various tax provisions related to home purchases, low-income housing, and other foreclosure-related issues.

Highlights:

• Provides first-time homebuyers with a tax credit of up to $7,500 for residences purchased on or after April 9, 2008, which the homebuyers will repay over fifteen years following their purchase (Sec. 712).

• Provides existing homeowners with a real property tax deduction of up to $350 for an individual or $700 for a joint return (Sec. 713).

• Provides the states with $10 billion of additional tax-exempt housing bonds to be issued before December 31, 2010 and used for qualified residential rental projects or mortgage issues, including the refinancing of mortgages on residences originally financed through subprime loans (Sec. 715).

• Provides that bonds guaranteed by federal home loan banks between the date of enactment of this bill and December 31, 2010 are eligible for treatment as tax-exempt bonds (Sec. 717).

• Repeals the Alternative Minimum Tax limitations on tax-exempt housing bonds issued after enactment of this bill and repeals limits on low-income housing and rehabilitation credits for periods after December 31, 2007 (Sec. 716).

• Requires that the Secretary of Housing and Urban Development implement procedural changes to expedite the approval of low-income multifamily housing projects (Sec. 752).

• Requires that the Secretary of Agriculture take actions to facilitate timely approval of requests to transfer ownership or control of multifamily housing projects for which assistance is provided by the Department of Agriculture in conjunction with certain low-income housing credits (Sec. 753).

• Changes the limitation on the sale, foreclosure, or seizure of property owned by servicemembers from 90 days to one year after their return from military service (Sec. 761).

• Requires that any charges accrued by a servicemember who defaults on an obligation for two consecutive months during their service or during the one-year limitation on foreclosures for servicemembers shall be provided with a statement describing his or her liability (Sec. 762).

Full Bill Text

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt an amendment to HR 3221 that would set up a Federal Housing Administration refinance program, make changes to the Federal Housing Administration (FHA), make changes to and increase oversight and regulation of housing-related government sponsored entities, and enact other provisions related to housing.

Highlights:

• Establishes the Refinance Program Oversight Board, which is responsible for coordinating a program that insures "homeownership retention mortgages," which are refinance loans designed for borrowers who are at risk of foreclosure (Sec. 112).

• Specifies that the aggregate original principal mortgages insured under the "homeownership retention mortgage" program may not exceed $300 billion (Sec. 112).

• Expands eligibility for FHA mortgage insurance to include borrowers who have been deemed "high risk" due to having a credit score equivalent to a Fair Isaac Corporation (FICO) score of less than 560 (Sec. 206).

• Provides incentives for "high risk" borrowers who have consistently paid their premiums on time that would reduce the amount of annual premium payments to payment levels equal to that of individuals who are not deemed "high risk" borrowers (Sec. 208).

• Mandates the establishment of underwriting standards which allow the FHA to insure mortgage loans for qualified borrowers who have existing mortgages with adverse terms or rates, qualified borrowers who do not have access to mortgages "at reasonable rates and terms for such refinancings due to adverse market conditions", and qualified borrowers who are in default or at imminent risk of being in default (Sec. 210).

• Outlines the following eligibility requirements for receiving insurance for a "homeownership retention mortgage" (Sec. 112):
• The insured residence shall be the sole residence in which the mortgagor has a full ownership interest;
• The mortgagor shall be verifiably unable to pay the existing mortgage(s) and, as of March 1, 2008, the mortgagor shall have had a mortgage debt-to-income ratio of greater than 35 percent;
• The new loans shall not exceed 90 percent of the property's value;
• Prepayment, default, and delinquency penalties on existing mortgages shall be waived;
• Indebtedness under the existing senior mortgage shall have been reduced by such percentage as the Refinance Program Oversight Board may require, and holders of liens on property securing a mortgage to be insured under the program shall agree to accept the proceeds of the insured loan as payment in full for all indebtedness under all existing mortgages;
• The Secretary of Housing and Urban Development shall hold and retain a lien on the residence which will be subordinate to the mortgage insured under the program but will be senior to all other mortgages;
• The mortgage insured under the program shall bear a single rate which will be fixed for the entire mortgage term; and
• The mortgagor shall undergo a criminal history check to ensure that he or she has not been convicted of mortgage fraud in the past seven years.

• Requires the implementation of the following underwriting standards for the "homeownership retention mortgage" program: the mortgagor insured under the program shall have "a reasonable expectation" of repaying the mortgage, there shall be no denial of insurance based on credit scores, based on previous delinquency or default, or based on bankruptcy, and a total debt-to-income ratio of up to 50 percent shall be allowed (Sec. 112).

• Terminates "homeownership retention mortgages" two years after the enactment of this amendment, in the absence of any approved extensions (Sec. 112).

• Increases the allowed levels of principal obligations for mortgages insured by the FHA (Sec. 203).

• Extends the term of mortgages insured by the FHA from thirty-five to forty years (Sec. 204).

• Establishes the Federal Housing Finance Agency, which shall supervise and regulate Fannie Mae, Freddie Mac, and Federal Home Loan Banks (Sec. 311).

• Raises limits on loans that Fannie Mae and Freddie Mac can purchase from $93,750 to $417,000 for a single-family residence, from $120,000 to $533,850 for a two-family residence, from $145,000 to $645,300 for a three-family residence, and from $180,000 to $801,950 for a four-family residence (Sec. 333).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that changes mortgage and property tax laws and extends energy tax credits.

Highlights:

• Appropriates $4 billion for assistance to states and local governments for the redevelopment of abandoned and foreclosed properties (Sec. 301).

• Allows a tax credit of up to $7,000 for the purchase of a qualified principal residence during the taxable year (Sec. 603).

• Requires the Secretary of Housing and Urban Development and the Commissioner of the Federal Housing Administration (FHA) to consult with foreclosure prevention organizations and develop a plan to improve the FHA's loss mitigation process (Sec. 125).

• Adds people who have a reduction in income due to divorce or death, or who have an increase in expenses due to medical expenses, divorce, unexpected property damages not covered by insurance, or a large property tax increase to the eligibility list for homeownership counseling (Sec. 127).

• Allows a real property tax deduction on the amount of state and local real property taxes paid during the taxable year of up to $500 for individuals and $1,000 for joint returns (Sec. 604).

• Temporarily increases the cap on qualified mortgage bond proceeds that can be used to assist individuals in refinancing sub-prime home loans to $10 billion in 2008 (Sec. 602).

• Extends expiring tax credits until Jan 1, 2010 for the establishment of certain facilities that produce power by using wind energy, biomass energy, geothermal energy, solar energy, small irrigation power, landfill gas, trash combustion, refined coal production, and hydropower, while also expanding these tax credits so as to apply to certain new marine and hydrokinetic facilities (Sec. 1011).

• Extends certain tax credits for the development of solar energy until January 1, 2017 and for the development of fuel cell energy until December 31, 2017 (Sec. 1012).

• Extends the expiration date of the "residential energy efficient property" credit (which provides a tax credit of 30 percent of expenditures on certain types of solar energy) from December 31, 2008 until December 31, 2009, and removes the $2,000 credit limit on solar electric energy (Sec. 1013).

• Extends the authority to issue "clean renewable energy bonds" until December 31, 2009, and increases the limitation on the cumulative value of the bonds from $800 million to $1.2 billion (Sec. 1014).

• Extends the expiration date of the "new energy efficient home" credit (which applies to certain new homes that meet specific energy conservation criteria) from December 31, 2008 to December 31, 2010 (Sec. 1022).

• Extends the "energy efficient commercial buildings" deduction until December 31, 2009, and increases the maximum deduction from $1.80 to $2.25 per square foot (Sec. 1023).

• Modifies energy efficient appliance credit levels and extends certain credits through the 2010 calendar year (Sec. 1024).

NOTE: This bill was passed by the House as an energy related bill. The Senate substituted the text of this bill to make it a foreclosure related bill with some energy tax provisions.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes regulations and economic incentives to increase renewable energy technology and production in the United States.

Highlights:

• Defines a retail electric supplier as a supplier that sells at least 1 million megawatt-hours of electricity for non-resale use, but excludes suppliers that are operated by the government or by rural electric cooperatives (sec. 9611).

• Requires 15% of energy produced by retail electrical suppliers to be generated from renewable energy sources by 2020 (Sec. 9611).

• Allows the Governor of any state to petition the Secretary of Energy to allow up to 25% of the renewable energy requirement to be met by purchasing energy efficiency credits (Sec. 9611).

• Repeals the tax deduction for income attributable to oil or natural gas (Sec. 13001).

• Increases development loan limits for companies undergoing projects designed to reduce energy consumption by at least 10 percent (Sec. 3003).

• Authorizes grants up to $300,000 under the Small Business Sustainability Initiative to provide support to smaller and medium sized businesses to improve environmental performance (Sec. 3005).

• Establishes the Advanced Research Projects Agency (ARPA-E) within the Department of Energy to develop energy technologies that result in reductions in energy imports and greenhouse gas emissions (Sec. 4001).

• Requires the President to establish an interagency United States Global Change Research Program to develop scenarios for climate change and convene regional workshops to facilitate information exchange among experts (Sec. 4614).

• Authorizes loan guarantees of up to $1 billion to assist in the development and construction of bio-refineries and bio-fuel production plants (Sec. 5003).

• Requires Federal agencies to purchase light or medium-duty passenger vehicles that have been designated by the Environmental Protection Agency (EPA) as low greenhouse-gas emitting vehicles (Sec. 6201).

• Requires on-shore oil operators operating a lease under the Mineral Leasing Act to restore any impacted land to its previous conditions, and to replace contaminated water supplies (Sec. 7222-7223).

• Authorizes $850 million a year in future appropriated funds to reduce fares and expand services for public transportation, including $750 million a year for HR 3221 grants to urbanized areas and $100 million for grants to non-urbanized areas (Sec. 8201).

• Authorizes $10 million a year in future appropriated funds for grants to railroad carriers and state and local governments for assistance in purchasing hybrid locomotives (Sec. 8301).

• Requires the Secretary of Energy to issue regulations prohibiting the sale of 100 watt general service incandescent lamps after January 1, 2012, unless they emit at least 60 lumens per watt (Sec. 9021).

• Requires the development of fuel standards for diesel fuel containing 20 percent bio-diesel if the American Society for Testing and Materials has not developed standards within a year (Sec. 9307).

• Allows a base tax credit for plug-in hybrid vehicles equal to the sum of $4,000 with additional credits for battery capacity, not to exceed an additional $2,000 (Sec. 12001).

• Phases out the hybrid tax credit the first year that the number of hybrid vehicles sold is at least 60,000 (Sec. 12001).

• Authorizes a credit for any qualified cellulosic alcohol fuel producer of 50 cents for each gallon of cellulosic fuel produced (Sec. 12004).

Full Bill Text

Full Bill Text