Stabenow, Colleagues Pass Housing Bill to Help Communities Devastated by Foreclosure Crisis

Press Release

Stabenow, Colleagues Pass Housing Bill to Help Communities Devastated by Foreclosure Crisis

Includes Stabenow Amendment Providing Incentives for Struggling Manufacturers to Invest in the Economy and Create Jobs

U.S. Senator Debbie Stabenow (D-MI) today announced House and Senate passage of the Housing and Economic Recovery Act of 2008. The act offers urgent assistance to families and communities devastated by the housing crisis throughout Michigan, which currently ranks 5th nationally in the number of foreclosures. The bill also includes a provision encouraging American manufacturers to invest in the economy, thereby creating jobs here at home.

"With unemployment and foreclosure rates rising and gas prices at record highs, families in Michigan and across our country are suffering," said Stabenow. "This housing bill is long overdue and is a good first step to assist families facing the loss of their homes and communities devastated by foreclosures - but we can and must do more. That's why I will continue my fight to create good-paying jobs across our state that will provide a true boost to our economy."

In a recent study, the Center for American Progress revealed that Michigan will potentially receive over $160 million in direct funding from the Senate neighborhood stabilization program alone, which would help create over 3,200 new jobs and help produce over $345 million in economic activity throughout the state.

Furthermore, a provision authored by Senator Stabenow allows companies most affected by the economic downturn to utilize tax credits to make critical investments in their businesses and workforce. The provision permits manufacturers to use alternative minimum tax (AMT) credits and research and development (R&D) tax credits to investment in and strengthen their businesses.

"It is important to support and encourage automakers, manufacturers, and other industries to develop new technology, create new jobs, and invest in Michigan," said Stabenow. "Companies that are hurt most by the current economic climate should get the same incentives for investment and job creation as other companies. These strategic investments are critical to stimulate the economy, and create quality, good-paying middle-class jobs here at home."

Other provisions Housing and Economic Recovery Act of 2008 include:

1. First Time Home Buyers Tax Credit - Encourages the purchase of homes affected by foreclosure, providing a $7,500 interest-free loan for buyers of such homes to be paid back over 15 years.
2. The Foreclosure Prevention Act - Prevents future foreclosures with counseling for families in need, programs to help returning soldiers, FHA modernization, and mortgage disclosure enhancements.
3. GSE Reform legislation - Strengthens the regulatory oversight of government-sponsored enterprises (GSEs) to help stabilize the housing finance system.
4. Treasury Regulator Provision- Stabilizes the market and safeguards the interests of the American taxpayer by giving the authority to the Treasury Department in case the GSEs require temporary Federal financial intervention
5. HOPE for Homeowners Act - Creates a new program at the Federal Housing Administration (FHA) that can help 400,000 families save their homes from foreclosure.
6. The SAFE Mortgage Licensing Act - Creates a federal registry and establishes minimum national standards for all residential mortgage brokers and lenders.
7. The Housing Assistance Tax Act of 2008 - Provides tax benefits for homeowners, homebuyers, and homebuilders designed to assist the housing market's recovery.

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