WASHINGTON, DC – U.S. Rep. Bill Delahunt joined with his colleagues in the House of Representatives to pass a comprehensive housing proposal today that will stabilize home values and provide assistance to residents of the South Shore, Cape Cod and the Islands who find themselves in danger of losing their homes.

“In the next twelve months more than 30,000 Massachusetts homes will be at risk of going into foreclosure, and 2,000 of them will be right here in southeastern Massachusetts,” Delahunt said.  “This legislation will provide additional financing options for struggling homeowners and also help our region’s homebuilding industry get back on track.”

H.R. 3221, The American Housing Rescue and Foreclosure Prevention Act of 2008, was passed today by the House with bipartisan support. It was originally passed back in May and went to the Senate and was subsequently amended. It will go back to the Senate later this week where it is expected to pass before it goes to President Bush for his signature.

In the Tenth Congressional District alone there were approximately 1500 property owners who were served notices of foreclosure just in the last quarter (April, May, June.) The Cape and Islands saw a 278 percent increase in foreclosures from the first quarter of 2008.  Plymouth County saw an increase in total number of foreclosures from 317 homes to 671, an increase of 111 percent.  Across the state, we have seen an increase from 2609 foreclosures in the first quarter to 6748, an increase of 158 percent. 

Rick Presbrey, President and CEO of HAC, praised the bill but also put in context how the crisis is affecting Cape Cod and the Islands. 

“The bill is beautifully designed and brilliantly done.  I’m glad the President is going to sign it. Barney Frank has finally come into his own as chair of the Financial Services Committee.  He’s been a tremendous leader on this bill, working both sides of the aisle to get the bill passed,” Presbrey said. “Nantucket and Martha’s Vineyard are experiencing an increasing number of foreclosures, but the Cape rate is steadying. At HAC, we’re seeing about 20 new cases each week in our foreclosure prevention program.”

"The passage of this bill can't come soon enough,” said Beth Ann Strollo, the Executive Director of the Quincy Community Action Programs, Inc.  “It is a sensible and practical solution to a crisis affecting too many low- and moderate-income homeowners that were genuine in their efforts to own a home.  Many homeowners facing foreclosure can make reasonable monthly payments - but not payments that are artificially inflated by the deceptive loan practices that have taken place.  This bill will help those deserving homeowners."

This latest version of the sweeping housing overhaul bill that has been making its way through the House and Senate since April includes the recent proposal by Treasury Secretary Paulson to provide explicit government backing to the two mortgage giants, Fannie Mae and Freddie Mac — through the government purchase of the entities' stock, if necessary, to stabilize the financial markets and prevent disruption in the availability of mortgages. It creates a new independent agency to regulate Fannie Mae, Freddie Mac and the Federal Home Loan Bank System, and the agency could place these mortgage entities into receivership in the event of a financial crisis.

Specifically this legislation would also:

• Provide a zero-interest, 15-year loan for first-time homebuyers, providing them up to $7,500 for a home purchase over the next year;
• Increase the volume cap for the low-income housing tax credit temporarily to allow states to allocate more credits to developers of low-cost housing;
• Authorizes $300 billion in loan guarantees through fiscal year 2011 for a voluntary program to help at risk borrwers refinance into viable mortgages.
• Overhaul the regulation of Fannie Mae and Freddie Mac by bringing them under a single independent regulator called the Federal Housing Fiance Agency (FHFA)
• Raises the limit of reverse mortgages FHA can insure to $417,000 from $275,000.
• Raises FHA loan limits to the lesser of 115 percent of the local area median home price or $625,500;
• Provides $3.9 billion in grants to state and local governments to purchase abandoned and foreclosed homes and residential property.
• Expands homeownership opportunities for veterans and helps returning soldiers avoid foreclosure and stay in their homes;
• Provides tax breaks to spur home buying

For a more detailed breakdown of the bill, please click here.

Presbrey said that anyone who has fallen behind on their mortgage or is at risk of falling behind should call HAC’s foreclosure center as soon as possible. The sooner the homeowner begins to get help, the better the chances that they can hold onto their homes. HAC’s counseling services are available across the Cape. For more information, call (508) 771-5400 or visit www.haconcapecod.org.

Those who live in Quincy and surrounding South Shore towns that also need assistance should call the Quincy Community Action Programs Inc. at 617 479 8181.

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