Washington, D.C. – July 21, 2010 – (RealEstateRama) — Today, U.S. Senator Patty Murray (D-WA) included major funding in the Fiscal Year 2011 Senate Transportation, Housing, and Urban Development (THUD) Appropriations bill to help families in Washington state and across the country who are suffering in the current foreclosure crisis. The bill includes funding to help families who have lost their homes, as well as for foreclosure prevention counseling and combating housing scams. It also provides important resources to communities to help stabilize neighborhoods impacted by foreclosures and increase affordable housing options. Murray chairs the THUD Appropriations subcommittee, which passed this bill today.
“The foreclosure crisis continues to devastate families and hurt the real estate market in communities across Washington state,” said Senator Patty Murray. “I included this funding to give families across Washington state the opportunity to take the steps they need to take to stay in their homes. This bill also provides resources to help families make responsible decisions when purchasing a home and avoid scams and aggressive lending tactics. We all have an interest in turning this crisis around, and this bill is a strong step toward making that happen.”
“We are appreciative of the Committee’s steadfast leadership under Chairman Murray to support communities and address the foreclosure crisis,” said Kenneth D. Wade, CEO, NeighborWorks America “The funding proposed through this bill will enable NeighborWorks America to continue efforts to help families at risk of foreclosure, including those vulnerable to mortgage rescue scams, and to expand efforts to revitalize communities. The positive impact of these investments will be felt not only by the families directly assisted but also in communities across the country through the improvement of properties and the creation and preservation of local jobs.”
Support for families facing foreclosure in the THUD bill:
Housing Counseling: A total of $225 million for housing counseling efforts. This includes $100 million for HUD’s housing counseling activities including foreclosure prevention activities as well as pre-purchase counseling. In addition, $125 million is included to continue the National Foreclosure Mitigation Counseling program that began in fiscal year 2008.
Combating Rescue Scams: $3 million for the Neighborhood Reinvestment Corporation to continue its mortgage rescue scam public education and outreach campaign. The bill also includes an additional $10 million to target enforcement against mortgage rescue scams.
Community Development Block Grants (CDBG): $3.99 billion is provided for CDBG grant funding for States and communities across the Nation. The allocation is the same as the fiscal year 2010 level and the budget request. This funding will assist states and communities that are still struggling as the economy recovers with their continued efforts to invest in and support the needs of low-income communities.
HOME Investment Partnership: $1.825 billion for the HOME Investment Partnership program, which is equal to the level of funding provided in fiscal year 2010 and $175 million above the President’s budget. This funding supports the creation and rehabilitation of low-income housing across the country.
Capital Grants for the creation of affordable housing: Within the overall amount provided for the Neighborhood Reinvestment Corporation, $35 million is provided for additional capital grants for the NeighborWorks organization to develop and finance affordable housing projects in communities across the country, especially in rural communities.