[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1597 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1597

To provide mortgage payment assistance for employees who are separated 
                            from employment.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 9, 2003

    Mr. Allen (for himself, Mr. Warner, Mr. Edwards, Mrs. Dole, Mr. 
 Hollings, Mr. Graham of South Carolina, Mr. Chambliss, and Ms. Snowe) 
introduced the following bill; which was read twice and referred to the 
          Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To provide mortgage payment assistance for employees who are separated 
                            from employment.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homestead Preservation Act''.

SEC. 2. MORTGAGE PAYMENT ASSISTANCE.

    (a) Establishment of Program.--The Secretary of Labor (referred to 
in this section as the ``Secretary'') shall establish a program under 
which the Secretary shall award low-interest loans to eligible 
individuals to enable such individuals to continue to make mortgage 
payments with respect to the primary residences of such individuals.
    (b) Eligibility.--To be eligible to receive a loan under the 
program established under subsection (a), an individual shall--
            (1) be--
                    (A) an adversely affected worker with respect to 
                whom a certification of eligibility has been issued by 
                the Secretary of Labor under chapter 2 of title II of 
                the Trade Act of 1974 (19 U.S.C. 2271 et seq.); or
                    (B) an individual who would be an individual 
                described in subparagraph (A) but who resides in a 
                State that has not entered into an agreement under 
                section 239 of such Act (19 U.S.C. 2311);
            (2) be a borrower under a loan which requires the 
        individual to make monthly mortgage payments with respect to 
        the primary place of residence of the individual; and
            (3) be enrolled in a job training or job assistance 
        program.
    (c) Loan Requirements.--
            (1) In general.--A loan provided to an eligible individual 
        under this section shall--
                    (A) be for a period of not to exceed 12 months;
                    (B) be for an amount that does not exceed the sum 
                of--
                            (i) the amount of the monthly mortgage 
                        payment owed by the individual; and
                            (ii) the number of months for which the 
                        loan is provided;
                    (C) have an applicable rate of interest that equals 
                4 percent;
                    (D) require repayment as provided for in subsection 
                (d); and
                    (E) be subject to such other terms and conditions 
                as the Secretary determines appropriate.
            (2) Account.--A loan awarded to an individual under this 
        section shall be deposited into an account from which a monthly 
        mortgage payment will be made in accordance with the terms and 
        conditions of such loan.
    (d) Repayment.--
            (1) In general.--An individual to which a loan has been 
        awarded under this section shall be required to begin making 
        repayments on the loan on the earlier of--
                    (A) the date on which the individual has been 
                employed on a full-time basis for 6 consecutive months; 
                or
                    (B) the date that is 1 year after the date on which 
                the loan has been approved under this section.
            (2) Repayment period and amount.--
                    (A) Repayment period.--A loan awarded under this 
                section shall be repaid on a monthly basis over the 5-
                year period beginning on the date determined under 
                paragraph (1).
                    (B) Amount.--The amount of the monthly payment 
                described in subparagraph (A) shall be determined by 
                dividing the total amount provided under the loan (plus 
                interest) by 60.
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to prohibit an individual 
                from--
                            (i) paying off a loan awarded under this 
                        section in less than 5 years; or
                            (ii) from paying a monthly amount under 
                        such loan in excess of the monthly amount 
                        determined under subparagraph (B) with respect 
                        to the loan.
    (e) Regulations.--Not later than 6 weeks after the date of 
enactment of this Act, the Secretary shall promulgate regulations 
necessary to carry out this section, including regulations that permit 
an individual to certify that the individual is an eligible individual 
under subsection (b).
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $10,000,000 for each of fiscal 
years 2004 through 2008.
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