Housing

Most Americans’ primary investment is their home and ending the mortgage crisis is vital to America’s economic recovery.  I believe we must do all we can to protect and expand the American dream of home ownership.  Affordable housing is crucial to strong families, strong communities and a strong economy.

Protecting Arizona’s Housing Market

Arizona has consistently ranked in the top four states for foreclosures over the past two years. It is important that we stabilize the housing market in our state and across the nation. That is why I voted for the bipartisan Federal Housing Administration (FHA) Reform Act (H.R. 5072), a bill that will help us get back on the road to recovery.

This bill would strengthen the financial footing of the FHA, which insures mortgages to expand homeownership opportunities; reduce federal spending and save taxpayers money; and gives the FHA the tools necessary to crack down on fraudulent lenders.  The bill would also reduce federal spending and save taxpayers $2.5 billion over five years.

The FHA has helped 37 million Americans buy homes since 1934 and is filling a vital role in the nation’s economy by providing crucial mortgage insurance at a time when the private sector has pulled back from the mortgage market. H.R. 5072 passed the House in a bipartisan vote of 406 to 4 and now goes to the Senate for consideration. Our homes are our greatest investment. For this reason, I am committed to strengthening the housing market and protecting consumers from fraudulent lenders.

First-time Homebuyers

Experts say the first tax credit has been responsible for the sale of hundreds of thousands of homes nationwide in 2009.  Congress established the $8,000 homebuyer tax credit as a component of the American Recovery and Reinvestment Act of 2009, which passed the House of Representatives in February 2009.  This tax credit has helped working families and individuals fulfill the dream of homeownership during these challenging economic times. 

To allow Arizonans to continue to take advantage of the federal $8,000 homebuyer tax credit, I voted to extend the First-time Homebuyer tax credit beyond its original expiration date of November 30 to April 30, 2010 and expand the credit to current homeowners for new home purchases.

Helping Families Save Their Homes Act

Provides key tools and incentives for lenders, servicers and homeowners to modify loans and to avoid foreclosures by:

• Reducing the current fees for homeowners and lenders that have discouraged them from participating in the Hope for Homeowners program;
• Offering new incentives for lenders to negotiate loan modifications with borrowers at risk of foreclosure under the Hope for Homeowners program;
• Strengthening consumer rights to housing information and the community banks; and
• Protecting the bank deposits and savings of consumers with a four-year extension of the increase in deposit insurance to $250,000.

American Recovery and Reinvestment Act

To create and save 3.5 million American jobs, jumpstart our economy, and transform it for success in the 21st century.  This legislation:

• Modifies the refundable first-time home buyer credit of up to $8,000 by eliminating the repayment obligation for purchases after Jan. 1, 2009;
• Extends and expands tax credits for energy-efficient investments in homes through 2010 such as furnaces, energy-efficient windows and doors, or insulation;
• $2 billion for Neighborhood Stabilization Program for local governments and state to purchase and rehabilitate vacant housing;
• $4 billion for Public Housing Capital Fund to rehabilitate units to improve energy efficiency, increase affordable housing projects, and address senior citizens’ needs; and
• $2.3 billion for HOME Program, block grants to state and local governments to create affordable housing for low-income households.

TARP Reform and Accountability Act

Tough accountability measure to overhaul the Troubled Assets Relief Program (TARP), ensuring that funds will be spent responsibly and transparently to help stabilize our economy and get credit flowing again to families and businesses.  Among other measures, H.R. 384 will help Americans stay in their homes by:

• Calling on Treasury to immediately commit up to $100 billion of the second $350 billion TARP funding on a comprehensive foreclosure mitigation plan (to be developed by Treasury by March 15 and implemented by April 1);
• Protecting mortgage servicers who modify loan to stem foreclosures against lawsuits that are impeding modifications;
• Mandating that the foreclosure mitigation plan include at least $20 billion for a systematic program to guarantee loan modifications to help families in danger of losing their homes;
• Making changes to the Hope for Homeowners refinancing program to encourage more lenders to refinance home loans for borrowers at risk of losing their homes;
• Requiring Treasury to develop a program outside of TARP to ensure the availability of affordable mortgages by purchasing mortgages and mortgage-backed securities; and
• Requiring the TARP’s congressional oversight panel to report to Congress by July 1 on actions taken by the Treasury to mitigate foreclosures.

Housing Opportunity and Mortgage Equity Act

• Would allow all current homeowners and qualified borrowers to receive a fixed 4-percent interest rate with a fixed 30-year term.

Affordable Housing and Community Development Act

• Would increase funding for the Community Development Block Grant Program (CDBG) to $8 billion for fiscal years 2011 and 2012.

In addition, I remain committed to fighting for Arizona’s fair share of Low Income Home Energy Assistance Program (LIHEAP) funding, the one federal program aimed at helping our country’s most vulnerable cope with extreme weather.  In the 110th Congress, I cosponsored the Warm in Winter and Cool in Summer Act (H.R. 6427), legislation that would nearly double funding for LIHEAP.  Arizona received $8.2 million in LIHEAP funds in FY 2008; H.R. 6427 would bring an additional $24,680,040 into the state.  I also signed a letter along with 89 of my colleagues sent to House leaders calling for at least $3.12 billion in LIHEAP funding, and another letter in September 2008 urging them to include at least $2.5 billion in any additional stimulus or supplemental appropriations bill for LIHEAP.  Low-income families, individuals with disabilities and seniors on fixed incomes in Arizona and across the country are struggling with high energy costs.  These people should not be forced to choose between cooling or heating their home and buying food or prescription medicine.