[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3088 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3088

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2005

Mr. Goode (for himself and Mr. Boucher) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To provide mortgage payment assistance for certain 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.--To the extent that amounts are 
provided pursuant to subsection (f), 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.--An individual is eligible to receive a loan under 
the program established under subsection (a) if the individual--
            (1) is--
                    (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 that Act (19 U.S.C. 2311);
            (2) is 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) is receiving training under section 236 of the Trade 
        Act of 1974, has received a job search allowance under section 
        237 of that Act or a relocation allowance under section 238 of 
        that Act, or is receiving assistance under the Work Force 
        Investment Act of 1998 or comparable assistance under any other 
        Federal law.
    (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) 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 the 
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 2006 through 2010.
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