Crowley Applauds House Passage of Critical Housing Reforms 7/25/2008 Contact: (202) 225-3965 Miscellaneous press release Most comprehensive Federal housing law overhaul in a generation will help thousands across Queens & the Bronx who face foreclosure; 19.5 million Americans to receive housing tax break (Washington, DC) – Congressman Joseph Crowley (D-Bronx,Queens) applauded passage of the most comprehensive Federal housing legislation in a generation. The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) will help thousands of families across the 7th Congressional District of New York keep their homes, create millions of new units of affordable housing nationwide, give 19.5 million Americans a critical housing tax break, aid local communities hit hard by the foreclosure crisis, and strengthen the economy. The bill passed the U.S. House of Representatives this week by a strong bipartisan vote of 272-152. “Families throughout the Bronx and Queens have been hit hard by foreclosures and declining home values. That is why I was proud to support these critically needed housing reforms and property tax breaks,” said Congressman Joseph Crowley. “I have worked closely with many local community groups to successfully combat blight, graffiti and neighborhood decline in our area, and this bill will help us continue this fight by keeping residents in their homes and reversing the decline in home values. The Democratic-led Congress has been working to ensure that families everywhere continue to have access to the American Dream, including homeownership. It is my hope the President will sign these reforms into law so we can immediately bring relief to millions of struggling families nationwide.” Highlights of the American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) include: Stabilizes Neighborhoods at No Cost to American Taxpayers - Provides mortgage refinancing assistance to keep at least 400,000 families nationwide from losing their homes, to protect neighboring home values, and to help stabilize the housing market at no cost to American taxpayers. - Expands the Federal Housing Administration (FHA) program so that borrowers in danger of losing their home can refinance into lower-cost government-insured mortgages that they can afford to repay. Spurs Home Buying and Expands Refinancing Opportunities - Gives first-time homebuyers a refundable tax credit that works like an interest-free loan of up to $7,500 to spur home buying and stabilize the market. - Provides a new $1,000 property tax deduction for an estimated 19.5 million homeowners who claim the standard deduction, providing immediate tax relief to many seniors who own their own homes, but have been hard hit hard by the weak economy. Preserves the American Dream for Our Nation’s Veterans - Increases VA Home Loan limit, as was done in the stimulus package, for high-cost housing areas to expand homeownership opportunities for veterans. - Helps returning soldiers avoid foreclosure by lengthening the time a lender must wait before starting foreclosure, from three months to nine months after a soldier returns from service. Creates Million of new Units of Affordable Housing - Reinvests the profits of the Federal housing giants Fannie Mae and Freddie Mac into a new Affordable Housing Trust Fund that will create millions of new housing units for working people throughout the country. Modernizes the Federal Housing Administration and Prevents Future Abuses - Expands affordable mortgage loan opportunities for families (many of whom would otherwise turn to subprime lenders) and seniors by expanding access to reverse mortgages through the FHA. - Takes action to prevent future abuses by lenders by establishing a nationwide loan originator licensing and registration system to set minimum standards for all residential mortgage brokers and lenders in an effort to curb abusive lending practices. Strengthens Regulation of Housing Loan Market and Gives Temporary Authority to Shore Them Up - Stabilizes the housing finance market to make sure that affordable home loans continue to be available. The measure gives necessary stand-by authority to the Treasury Department in the unlikely case that the GSEs require temporary Federal financial intervention. The bill now goes to the Senate for passage. Congressman Crowley is a member of the powerful House Committee on Ways and Means that holds Federal jurisdiction over economic support programs. # # #   Washington 2404 Rayburn House Office Building Washington, DC 20515 (202)225-3965 Queens 74-09 37th Ave Suite 306-B Jackson Heights, NY 11372 (718)779-1400 Co-op City 177 Dreiser Loop Bronx, NY 10475 (718)320-2314 Bronx 2800 Bruckner Blvd Bronx, NY 10465 (718)931-1400