[Congressional Record Volume 154, Number 57 (Thursday, April 10, 2008)]
[Senate]
[Pages S2836-S2861]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




NEW DIRECTION FOR ENERGY INDEPENDENCE, NATIONAL SECURITY, AND CONSUMER 
PROTECTION ACT AND THE RENEWABLE ENERGY AND ENERGY CONSERVATION TAX ACT 
                                OF 2007

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
Senate will resume consideration of H.R. 3221, which the clerk will 
report.
  The assistant legislative clerk read as follows:

       A bill (H.R. 3221) moving the United States toward greater 
     energy independence and security, developing innovative new 
     technologies, reducing carbon emissions, creating green jobs, 
     protecting consumers, increasing clean renewable energy 
     production, and modernizing our energy infrastructure, and to 
     amend the Internal Revenue Code of 1986 to provide tax 
     incentives for the production of renewable energy and energy 
     conservation.

  Pending:

       Dodd-Shelby amendment No. 4387, in the nature of a 
     substitute.
       Ensign amendment No. 4419 (to amendment No. 4387), to amend 
     the Internal Revenue

[[Page S2837]]

     Code of 1986 to provide for the limited continuation of clean 
     energy production incentives and incentives to improve energy 
     efficiency in order to prevent a downturn in these sectors 
     that would result from a lapse in the tax law.
       Alexander amendment No. 4429 (to amendment No. 4419), to 
     provide a longer extension of the renewable energy production 
     tax credit and to encourage all emerging renewable sources of 
     electricity.


                           Amendment No. 4429

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
question is on agreeing to amendment No. 4429 offered by the Senator 
from Tennessee, Mr. Alexander. The Senator from Tennessee and the 
Senator from Nevada, Mr. Ensign, each have 5 minutes for debate.
  The Senator from Tennessee.
  Mr. ALEXANDER. I ask that the Chair let me know when 2 minutes remain 
because Senator Kyl may be back as a cosponsor.
  Mr. President, I rise in favor of the Alexander-Kyl amendment No. 
4429, which we hope is a helpful amendment to the Ensign-Cantwell 
amendment. Let me try to say this in two different ways. If you care 
about climate change, here is what our amendment will do. It will 
extend from 1 year to 2 the production tax credit for all qualified 
renewable sources of electricity. In other words, these emerging 
renewable energies, which have the capacity to work 24 hours a day, 
would have 2 years, as well as wind.
  Second, it would mean that wind would not get all the money but that 
some others would have more time to respond to the incentives we are 
creating with these tax credits. Let me use a story to illustrate. 
Let's say a family has several children. One of them older. Dad calls a 
meeting and says: I have $3 billion extra, which is the amount of money 
we are talking about for the Ensign-Cantwell amendment. Let's give it 
to the overgrown son who is still living at home who has gotten most of 
the allowance money for the last 16 years. Let's give him another year. 
Mom, who is a little wiser, says: It is nice for you to want to give an 
allowance to the children, but what about all these other children--
open-loop biomass and small irrigation power and landfill gas and trash 
combustion. Instead of giving all the money to the son living at home, 
let's give some to all the children, including the overgrown son. That 
is what we would do if we adopt the Alexander-Kyl amendment.
  According to the Energy Information Administration, the production 
tax credit Senator Ensign wants to extend for a year, 97 percent of it 
went to wind in Fiscal Year 2007, which has gotten most of our 
renewable electricity tax credit money since 1992. So the Ensign-
Cantwell amendment is being advertised as helping renewable energy. It 
adds another $3 billion over the next 10 years to the $11 billion we 
have already invested in wind and these other promising children. Wind 
only works when it wants to. These emerging technologies might work 
when they are told to. We would like to include them. Wind would still 
get more of the money than anybody else, but it would not get 97 
percent. It would not get almost all of it.
  There is another reason to favor the Alexander-Kyl amendment. That 
would be if you care about the spending of tax dollars. According to 
the Energy Information Administration, we spend 53 more times per 
megawatt hour on wind than we do on coal in subsidies, and coal 
provides half our electricity. We spend 94 more times on wind per hour 
than we do on natural gas which produces clean electricity; 15 times 
more on wind per megawatt hour than we do on nuclear; 26 more per 
megawatt hour than we do on biomass; 25 times more than we do on 
geothermal; 35 times more than we do on hydroelectric; 17 times more 
than we do on landfill gas. We spend 27 times more per megawatt hour to 
subsidize wind, a proven technology that only works when it wants to, 
than we do on all the other renewables, 27 to 1. That is not a wise use 
of tax dollars.
  We urge support for the Alexander-Kyl amendment so these 
technologies, and wind as well, will have a 2-year extension of the tax 
credit instead of 1 and so all these promising children can help with 
climate change and clean air rather than giving all the money to one 
overgrown son who ought to be out on his own by now.
  I reserve the remainder of my time.
  The ACTING PRESIDENT pro tempore. The Senator from Nevada.
  Mr. ENSIGN. Mr. President, I ask the Chair to notify me when 2\1/2\ 
minutes remain. First, I'd like to thank Senator Cantwell for her 
leadership in the last few weeks that we have worked together on 
drafting a bipartisan compromise making sure that we help renewable 
energy become more of the power supply to the United States. We all 
believe from an economic standpoint, that it will help create jobs and 
new technologies as well as help the economy not only now, but into the 
future. Renewable energy helps the environment. It is cleaner than 
fossil fuels and makes us less dependent on foreign sources of energy. 
A lot of the money we send overseas is to folks who are not exactly 
friendly to the United States.
  The Ensign-Cantwell amendment is supported by a broad range of 
industries as well as environmental groups.
  I ask unanimous consent that the following two letters of support be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                              National Association


                                             of Manufacturers,

                                    Washington, DC, April 8, 2008.
     U.S. Senate,
     Washington, DC.
       Dear Senator: On behalf of the National Association of 
     Manufacturers (NAM), the nation's largest industrial trade 
     association representing small and large manufacturers in 
     every industrial sector and in all 50 states, I urge you to 
     support the Cantwell-Ensign Clean Energy Tax Stimulus 
     amendment number 4419 to H.R. 3221, housing legislation 
     currently being considered on the Senate floor. This 
     amendment would, among other provisions, extend incentives 
     for clean and renewable energy that are set to expire at the 
     end of this year.
       U.S. manufacturers, large and small, have a substantial 
     concern for affordable domestic energy supplies and improved 
     energy efficiency. As a key component to reducing energy 
     demand, increasing energy efficiency will go a long way to 
     lowering energy costs and increasing economic 
     competitiveness. By promoting energy efficiency and the 
     development of renewable and alternative energy sources, the 
     package of incentives included in the Cantwell-Ensign 
     amendment represents an important step in securing our 
     nation's energy security without raising taxes.
       The NAM's Key Vote Advisory Committee has indicated that 
     votes on the amendment offered by Senators Maria Cantwell (D-
     WA) and John Ensign (R-NV) will be considered for designation 
     as Key Manufacturing Votes in the NAM voting record for the 
     110th Congress. Eligibility for the NAM Award for 
     Manufacturing Legislative Excellence will be based on a 
     member's record on Key Manufacturing Votes.
       Thank you for your consideration.
           Sincerely,
                                                      Jay Timmons,
     Executive Vice President.
                                  ____



                                   American Chemistry Council,

                                     Arlington, VA, April 4, 2008.
     Hon. Maria Cantwell,
     U.S. Senate,
     Washington, DC.
     Hon. John Ensign,
     U.S. Senate,
     Washington, DC.
       Dear Senator Cantwell and Senator Ensign: The American 
     Chemistry Council wishes to convey its strong support for the 
     ``Clean Energy Tax Stimulus Act of 2008,'' (S. 2821), 
     introduced yesterday by you and cosponsored by a large 
     bipartisan group of Senators. The ACC has long advocated for 
     a balanced portfolio of energy policies that advance energy 
     efficiency, fuel diversity, and new supply sources. S. 2821, 
     in its current form, contains a number of critical and cost 
     effective energy efficiency and energy production incentives. 
     We urge the Senate to take up the measure quickly and approve 
     it without attaching any of the controversial ``pay for'' 
     provisions that have prevented the passage of these 
     beneficial incentives in the past.
       The members of the ACC use natural energy resources to make 
     the products that allow our customers to save energy. The 
     products of chemistry go into energy-saving materials used 
     throughout the economy, such as insulation, weatherization 
     equipment, lightweight vehicle parts, lubricants, coatings, 
     energy efficient appliances, solar parts and windmill blades. 
     For example, the use of just one product, insulation in 
     buildings, results in a net benefit to society of 40 BTUs of 
     energy saved for every BTU used to produce the product. We 
     applaud the provisions of the bill that would encourage the 
     use of energy efficient products.
       Similarly, we appreciate that this bill does not include 
     provisions that would increase tax burden on the oil and gas 
     industry, which is a key supplier to and a customer of the 
     American chemical industry. As you know, worldwide demand for 
     energy has pushed our industries power and feedstock prices 
     to dangerously high levels. In the first half of the

[[Page S2838]]

     decade our fuel and feedstock costs have increased by more 
     than $100 billion. Our global competitors do not face similar 
     cost pressures. Our vital industry has lost $60 billion in 
     business to overseas competitors and more than 110,000 high-
     paying jobs have disappeared. Additional taxes on the 
     companies supplying these feedstocks will increase costs to 
     our industry, result in high costs of our industry's inputs 
     and make it more difficult to compete in the global market. 
     You are to be commended for not linking discriminatory and 
     damaging taxes to the very laudable energy efficiency and 
     energy production policy objectives of the bill.
       The American Chemistry Council urges the Senate to pass S. 
     2821, as it is a critical plank in a broader energy policy 
     platform, and for you to strenuously resist including tax 
     increases that constrain the supply of feedstocks that the 
     industry needs to competitively make our energy efficiency 
     products.
           Sincerely,
                                                   Jack N. Gerard,
                                                President and CEO.

  Mr. ENSIGN. It is supported by everybody from the U.S. Chamber of 
Commerce, the National Association of Manufacturers, the Real Estate 
Roundtable, the American Chemistry Council, the Sierra Club, the 
National Resources Defense Council, as well as hundreds of other 
businesses and organizations.
  This, however, is a delicate compromise. Three times in the past 
there have been attempts to pass a renewable energy bill. They have all 
failed. This is our chance to actually pass something that can be 
signed into law. Unfortunately, the Alexander amendment would break the 
delicate balance. We need to defeat the Alexander amendment and pass 
the Ensign-Cantwell amendment if we truly want to encourage renewables 
into the marketplace in a much larger way in the United States. It is 
good for the country, good for the environment, and good for the 
economy.
  I urge a defeat of the Alexander amendment and adoption of the 
Ensign-Cantwell amendment.
  I yield the remainder of my time to Senator Cantwell.
  Ms. CANTWELL. How much time remains?
  The ACTING PRESIDENT pro tempore. There is 2\1/2\ minutes.
  Ms. CANTWELL. Mr. President, I rise in opposition to the Alexander 
amendment. Along with my colleague from Nevada, we reached a very 
delicate balance to get this legislation where it is today. I would 
hate to see that balance disturbed by the proposal the Senator from 
Tennessee is offering about wind. The reality is our nation is still 
only producing a small percentage of renewable energy, and we could 
produce much more. To curtail investment in one of the most promising 
renewable technologies at this point would be premature. We have to 
realize what we are trying to do is create continued incentives not 
just for the long-term, and this legislation is aimed at saving this 
year's investment cycle. If the Senator from Tennessee wants to have a 
discussion later about long-term clean energy investments and what that 
horizon should be, this Senator is more than happy to talk to him about 
that. But this amendment before us is about the near term.
  The bottom line is that we are trying to do is create stimulus for 
this year, we are trying to save the investment in the production tax 
credits, the investment tax credits, and efficiency tax credits. For 
example, PG&E has proposed purchasing 553 megawatts of power, which is 
the size of a typical natural gas or coal plant, from a concentrating 
solar facility in the Mojave Desert. If we don't pass this legislation, 
we are going to lose about $1.5 to $2 billion in investment and a big 
opportunity to increase the tax base of San Bernardino County, CA.
  Another example, Butte, MT, has one of the largest polysilicon plants 
in the world, producing feedstock material for solar panels. Expansion 
of this plant, an investment over $1 billion, is on hold because we 
haven't given predictability in the tax code.
  Passing this amendment will also give consumers efficiency credits of 
up to $500. Using that credit on insulation for example could save 
homeowners over 20 percent on their annual heating and cooling bills. 
The production tax credits in the underlying Ensign amendment, not the 
Alexander amendment, as a result in the next 3 to 5 years, we will have 
enough green renewable power to power 35 cities the size of Seattle. If 
we agree to the Ensign amendment instead of the Alexander amendment, 
with the investment tax credit, it will build enough solar power, and 
1.1 million homes could instead have the power of solar and more 
renewable green energy. I encourage my colleagues to turn down the 
Alexander amendment and vote for the Ensign amendment.
  Mr. BYRD. Mr. President, it has been written that King of England 
Edward I--known as the ``Hammer of the Scots''--once tried to prohibit 
London's burning of coal. He is said to have proclaimed, ``Be it known 
to all within the sound of my voice, whoever shall be found guilty of 
burning coal shall suffer the loss of his head.''
  Coal has always had its critics. Despite them, coal has not only 
endured, it has prevailed. It fueled America's Industrial Revolution in 
the 19th century. It fueled America's naval battleships in the early 
20th century. It possesses the bright potential to help America get out 
from under the thumb of foreign oil-wielding despots in the 21st 
century.
  The coal industry has evolved in the last centuries, shaped by safety 
and environmental critiques. It has professed a willingness to evolve 
further. But the harsh attacks and efforts to demonize coal on the 
campaign trail are becoming increasingly irresponsible and 
inflammatory, and destructive. Coal miners hear these comments, and 
what are they to think? They are patriotic Americans. They risk their 
lives every day underground. They reside in the coalfields, where they 
live honest, modest lives, and where they attend church and teach their 
children solid values. And they vote. The last thing they deserve is to 
have their profession--or to have their father's profession--demonized.
  These kinds of comments are counterproductive to the challenges that 
lie in front of us. If our Nation is to regain its independence from 
foreign oil, we must rely on coal. There is no getting around that 
reality.
  Coal produces half of the electricity consumed by the American 
people. It is a cheap, abundant resource in a time when the American 
people demand stable, reliable energy prices. The U.S. military is 
already making long-term investments in liquid-coal technology. The 
chunk of rock that once burned in a stove will soon be widely used in 
fuel tanks of aircrafts, cars, trucks, and buses, and just about 
anything else we need it for. Coal will be around for a long, long 
time.
  I support a broad energy portfolio. Renewable energies have their 
place in that portfolio, but they are not a panacea. Certainly one 
renewable energy alone, like wind, will not guarantee our Nation's 
energy independence. We need to expand our use of other renewable and 
alternative fuels. Solar is important, geothermal is showing promise, 
tidal has great possibilities, and biomass--particularly when combined 
with coal to help immediately reduce emissions that concern us all--is 
certainly a fuel worth investing in.
  It is clear to me that the intent of the Ensign/Cantwell amendment is 
good, but the benefit of the Alexander amendment is greater. And so I 
will cast my vote with those who seek a broader investment in renewable 
energies that is also grounded in the realities of the continuing 
promise of coal.
  Mr. DODD. Mr. President, I rise today to discuss the Ensign-Cantwell 
amendment to the housing bill. This amendment extends expiring tax 
credits for renewable energy production and development and tax credits 
for energy efficient homes and buildings.
  Let me be perfectly clear. I fully support extending these tax 
credits. I voted for them last December when we tried to attach them to 
the Energy bill. I supported them again when we considered the economic 
stimulus package in February. I am in fact an original cosponsor of the 
freestanding legislation this amendment is based on. I have long argued 
that we have a responsibility to put our nation on a path toward energy 
independence. In addition to making us better stewards of the 
environment, this is also vitally important to protecting our national 
security by reducing our dependence on foreign fossil fuels. Done 
responsibly, it can also spur economic growth and create tens of 
thousands of new good-paying green collar jobs.
  However, I felt compelled to oppose the Ensign-Cantwell proposal as 
an

[[Page S2839]]

amendment to the housing bill. In my view, however, the housing bill 
simply was the wrong legislative vehicle for this initiative. As I have 
said many times, nearly 8,000 people every day are facing foreclosure--
8,000 people every single day are losing their homes and must cope with 
uncertain and difficult financial futures for themselves and their 
families. Working this week with Senator Shelby, the majority and 
minority leaders, and others, I felt it my responsibility to shepherd 
through a basic set of policies that will help mitigate this housing 
crisis. This bill did clearly not include everything I would have 
liked, but it provides a critical first step, and it was imperative in 
my view that we act quickly to stem this national housing crisis 
without being sidelined by other matters, regardless of their merit.
  I wish to thank my colleagues Senator Cantwell and Senator Ensign for 
their commitment to clean, renewable energy and their leadership on the 
issue. For the reasons I have given, I wish this proposal could have 
been advanced differently. However, I remain committed to working with 
them and all the Members of this body to achieve the goal of energy 
independence.
  The ACTING PRESIDENT pro tempore. The Senator from Tennessee has 55 
seconds.
  Mr. ALEXANDER. Mr. President, let me emphasize this point. No. 1, the 
Alexander-Kyl amendment has more certainty. It extends the production 
tax credit from 1 year to 2 for all these. Second, the distinguished 
Senator from Washington mentioned solar power. Solar asked to be out of 
the production tax credit 3 years ago because all the money in the 
production tax credit was going to wind. In the Energy Policy Act of 
2005, I was the lead sponsor of the amendment adding the investment tax 
credit for solar power. No one loses under the Alexander amendment No. 
4429, except wind is treated similar to everybody else. It gets 1 cent 
per kilowatt hour. That means it will still get more of the money than 
anybody in the production tax credit. But open-loop biomass, all these 
emerging renewable technologies will suddenly have a fighting chance to 
get some of the money that since 1992 has almost all gone to one proven 
technology. That is not a wise use of taxpayer dollars. It is not a 
good use of funds to continue to over subsidize wind, which is now a 
mature energy technology. Two years instead of one is a vote yes.
  The ACTING PRESIDENT pro tempore. The time of the Senator has 
expired.
  Mr. ENSIGN. I ask unanimous consent for the yeas and nays on both the 
Ensign and Alexander amendments.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Is there a sufficient second?
  There appears to be and is a sufficient second.
  The yeas and nays are ordered on both amendments.
  The Senator from Washington.
  Ms. CANTWELL. I ask unanimous consent that in any sequence of votes 
after the first vote, the time be limited to 10 minutes each and that 
prior to each vote, there be 2 minutes of debate available, equally 
divided and controlled in the usual form.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The question is on agreeing to the amendment No. 4429.
  The clerk will call the roll.
  The assistant legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from New York (Mrs. Clinton), 
the Senator from Iowa (Mr. Harkin), the Senator from New Jersey (Mr. 
Menendez), and the Senator from Illinois (Mr. Obama) are necessarily 
absent.
  I further announce that, if present and voting, the Senator from New 
Jersey (Mr. Menendez) would vote ``nay.''
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from North Carolina (Mrs. Dole) and the Senator from Arizona (Mr. 
McCain).
  The PRESIDING OFFICER (Mr. Brown). Are there any other Senators in 
the Chamber desiring to vote?
  The result was announced--yeas 15, nays 79, as follows:

                      [Rollcall Vote No. 94 Leg.]

                                YEAS--15

     Alexander
     Bennett
     Bunning
     Byrd
     Chambliss
     Cochran
     Gregg
     Isakson
     Kyl
     McConnell
     Sessions
     Shelby
     Vitter
     Voinovich
     Wicker

                                NAYS--79

     Akaka
     Allard
     Barrasso
     Baucus
     Bayh
     Biden
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Burr
     Cantwell
     Cardin
     Carper
     Casey
     Coburn
     Coleman
     Collins
     Conrad
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Dodd
     Domenici
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Feinstein
     Graham
     Grassley
     Hagel
     Hatch
     Hutchison
     Inhofe
     Inouye
     Johnson
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCaskill
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Sanders
     Schumer
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Tester
     Thune
     Warner
     Webb
     Whitehouse
     Wyden

                             NOT VOTING--6

     Clinton
     Dole
     Harkin
     McCain
     Menendez
     Obama
  The amendment (No. 4429) was rejected.
  Ms. CANTWELL. Mr. President, I move to reconsider the vote, and I 
move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. The question is on agreeing to Ensign 
amendment No. 4419.
  There are 2 minutes for debate equally divided. Who seeks time?
  The Senator from Nevada is recognized.
  Mr. ENSIGN. Mr. President, just very briefly, this is our chance, a 
bipartisan chance, to have renewable energy in this country in a big 
way. It will preserve over 100,000 jobs in the United States. Let's 
help us become less dependent on foreign energy. Let's help the 
environment in the United States. I encourage all Members to vote aye.
  I yield back the remainder of my time.
  The PRESIDING OFFICER. Who yields time?
  Mr. ENSIGN. Mr. President, I ask unanimous consent that all time be 
yielded back.
  The PRESIDING OFFICER. Without objection, it is so ordered. The 
question is on agreeing to the amendment.
  The yeas and nays have been ordered. The clerk will call the roll.
  The bill clerk called the roll.
  Mr. DURBIN: I announce that the Senator from New York (Mrs. Clinton) 
and the Senator from Illinois (Mr. Obama) are necessarily absent.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from North Carolina (Mrs. Dole) and the Senator from Arizona (Mr. 
McCain).
  Further, if present and voting, the Senator from North Carolina (Mrs. 
Dole) would have voted ``yea.''
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 88, nays 8, as follows:

                      [Rollcall Vote No. 95 Leg.]

                                YEAS--88

     Akaka
     Allard
     Barrasso
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Burr
     Cantwell
     Cardin
     Casey
     Chambliss
     Coburn
     Cochran
     Coleman
     Collins
     Conrad
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Domenici
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Feinstein
     Graham
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hutchison
     Inhofe
     Inouye
     Isakson
     Johnson
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCaskill
     McConnell
     Menendez
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Sanders
     Schumer
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Tester
     Thune
     Vitter
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--8

     Alexander
     Bunning
     Byrd
     Carper
     Dodd
     Kyl
     Sessions
     Voinovich

                             NOT VOTING--4

     Clinton
     Dole
     McCain
     Obama
  The amendment (No. 4419) was agreed to.

[[Page S2840]]

                   First-time Homebuyers' Tax Credit

  Mr. CARDIN. Mr. President, in a short while, the Senate will be 
voting to approve H.R. 3221, the Foreclosure Prevention Act. It is a 
good bill with some good provisions; namely, $10 billion for mortgage 
revenue bonds, $4 billion for community development block grants, and 
$200 million for foreclosure prevention counseling. I regret, however, 
that we missed two opportunities to make it even better. The first 
missed opportunity was our failure to adopt Senator Durbin's provision 
regarding bankruptcy. I am still mystified why a bankruptcy judge can 
reduce the principal or modify the mortgage loan terms on a vacation 
home but not on a primary residence. The second missed opportunity, in 
my estimation, was our inability to adopt an amendment Senator Ensign 
and I offered to establish a $7,000 nonrefundable tax credit for first-
time homebuyers. I regret that the Parliamentarian ruled our amendment 
out of order and we never had a chance to vote on it.
  The amendment Senator Ensign and I offered was timely, targeted, and 
temporary: eligibility for the credit would be phased out for single 
filers whose adjusted gross income, AGI, is between $70,000 and 
$90,000; for married couples filing a joint return, eligibility for the 
credit would be phased out if their AGI is between $110,000 and 
$130,000. These phase-out levels are identical to the phase-out levels 
contained in the District of Columbia's first-time homebuyers' tax 
credit. The credit would be available only for the purchase of a 
primary residence made within 1 year of the date of enactment.
  We need to encourage prospective buyers to get off the sidelines and 
back into the market. An important segment of that population--39 
percent nationwide--consists of first-time homebuyers. Recently, first-
time homebuyers have accounted for 65 to 67 percent of sales in 
Baltimore.
  The District of Columbia had a similar tax credit and it worked. 
Through the end of last year, first-time homebuyers who purchased a 
home in the District were eligible for a $5,000 tax credit. The credit 
helped 3,000 to 4,000 people become home owners each year, and it 
boosted buyers' interest in neighborhoods where home ownership rates 
lagged.
  I think this amendment, if adopted, would have made a good bill 
better. I hope the House will incorporate a first-time homebuyers' tax 
credit provision in its version of this bill.
  Mr. ENSIGN. I would like to associate myself with the remarks from 
the junior Senator from Maryland regarding the Cardin-Ensign first-time 
homebuyers' tax credit amendment. We worked together as members of the 
House Ways & Means Committee and I was pleased to be able to work with 
him again on this amendment here in the Senate. The foreclosure problem 
is particularly acute in Nevada; in fact, we have the highest rate of 
foreclosures in the Nation. Last year, according to RealtyTrac.com, we 
had 66,316 foreclosure filings--a 215 percent increase over 2006 and a 
760-percent increase over 2005. We have nearly 35,000 properties in 
foreclosure, which is 3.4 percent of all households. This tidal wave of 
economic misfortune is swamping the housing market in my home State. 
The amendment Senator Cardin and I offered would have helped to 
stabilize the market and I am disappointed that the Senate didn't have 
a chance to vote on it.
  Mr. BAUCUS. I would say to my colleagues from Maryland and Nevada 
that I, too, think that in the current economy, a temporary tax credit 
is a meritorious idea. I commend the Senators for working so hard on 
their amendment and I can understand their disappointment. It appears 
that, yesterday, the Ways and Means Committee adopted a credit more 
along the lines the Senators have proposed. I look forward to working 
with the House in a conference to craft a homebuyer tax credit that 
will help the housing market recover. There are many things we can and 
should do to help homeowners and a targeted, temporary homebuyer credit 
is one of them.
  Mr. CARDIN. Mr. President, I would like to thank the chairman of the 
Senate Finance Committee for his remarks, which I find encouraging. I 
look forward to working with him and with my colleague from Nevada on 
this matter.
 Mr. McCAIN. Mr. President, there is a justifiable feeling of 
anger and worry across America today regarding the ongoing housing 
crisis. Millions of Americans are currently bearing a heavy burden to 
keep their family homes and desperate for relief. The clamor for the 
Federal Government to act quickly has been heard by the Senate and we 
are now set to vote on a bipartisan package that will offer some 
assistance to suffering homeowners.
  Without action, the pain of the foreclosure crisis will not only be 
felt by the millions of American families who stand to lose their homes 
but by all Americans. Congress must confront this reality and pass 
legislation that has three key components: it is temporary in nature, 
has an immediate goal of helping cash-strapped but credit-worthy home 
owners stay in their homes, and prevents a mortgage crisis from 
happening again.
  The bill before the Senate is not perfect, but it does contain 
several provisions that I support and believe can help our housing 
market--for both mortgage borrowers and lenders--now and in the future. 
It is important to avoid situations in which homeowners owe more money 
than their home is worth. Unfortunately, that has become too common a 
scenario in part because many homeowners never had much equity in their 
home to begin with. This bill contains a provision that would ensure 
homeowners avoid this situation by requiring a modest increase in the 
downpayment necessary for Federal Housing Administration-insured 
mortgages. This legislation can also offer some relief to borrowers by 
increasing the amount of FHA-insured loans, which typically carry lower 
interest rates. Additionally, it is also vital to have well-informed 
borrowers who understand the terms and obligations in a mortgage 
agreement and provide lenders with accurate and easily understood 
financial information. The bill expands the early disclosures 
requirements under the Truth In Lending Act and requires a new 
disclosure informing borrowers of the maximum monthly payments possible 
under their loans. While these provisions should help bring about some 
relief, I do not think we should kid ourselves into believing that this 
bill is the panacea for our housing crisis.
  I am supporting this bill and thank its bipartisan sponsors. However, 
I do want the record to be clear that I remain concerned over the 
inclusion of several provisions that do not adhere to my principles for 
mortgage relief and question the effectiveness of these provisions in 
delivering needed assistance to home owners. Mr. President, again, I 
thank those who have worked so hard on this measure on both sides of 
the aisle, and I look forward to acting on this important 
subject.
  Mr. KOHL. Mr. President, today the Senate threw a lifeline to 
homeowners facing the specter of foreclosure. This legislation includes 
valuable resources for communities, homeowners, and industry to combat 
the downturn in the housing market.
  In my home State of Wisconsin, foreclosures have risen at an alarming 
rate. Compared to last year, foreclosures have increased by 145 
percent. Many of these foreclosed properties were connected with 
subprime loans with adjusting interest rates. A combination of lax 
lending standards and the creation of exotic financial products gave 
lenders the ability to offer people who would not qualify before the 
chance to own a home. However, there was little concern on whether or 
not the person or family would be able to sustain home ownership. 
Because of the irresponsibility of some lenders, families across the 
country have lost their homes and more are soon to follow if help does 
not come.
  One of the provisions included in the Foreclosure Prevention Act 
increases funds for housing counseling services. These nonprofit 
housing counseling agencies help homeowners connect to their lenders 
and renegotiate terms that will allow them to keep their homes. The 
money is estimated to help close to 500,000 families stay in their 
homes. Another very important provision provides $4 billion in 
community development block grant for communities to purchase and 
redevelop foreclosed-upon properties. This will enable localities to 
purchase unoccupied

[[Page S2841]]

properties which drag down neighboring home prices and are easy targets 
for criminal activity. By rehabilitating these blights, communities 
will be able to prevent further loss of property value while at the 
same time providing affordable housing units. Other important 
provisions include providing a temporary tax refund to help struggling 
businesses stay afloat and including reforms to the Federal Housing 
Administration to make it easier for low- and moderate-income families 
utilize the home ownership programs.
  The housing crisis has shed light on the complexity and problems in 
our Nation's lending system. Many homeowners were rushed through the 
process without truly understanding the terms and conditions of their 
loans. The Foreclosure Prevention Act will amend the Truth in Lending 
Act to require lenders to fully disclose the terms and conditions of 
the loan and to provide the home buyer with the maximum loan payment 
they will have to make. This simple change will enable future home 
buyers to make informed decisions regarding their mortgage and enable 
them to plan accordingly.
  While this bill is not the final answer to the housing crisis, it is 
a step in the right direction. There are still many issues that need to 
be resolved in order to avoid a similar housing and economic downturn. 
We must consider revising lending standards to protect future home 
buyers, increasing our affordable rental housing stock and ensuring we 
create sound fiscal policies that promote the economic well-being of 
each and every American.
  Mr. WARNER. Mr. President, I wish to speak about the legislation 
currently before the Senate. The Foreclosure Prevention Act of 2008 
seeks to provide assistance to families and businesses adversely 
affected by the decline of the values of real estate.
  While I support many of the worthy initiatives in this bill, such as 
the Federal Housing Authority modernization provisions and other 
resources to assist communities devastated by foreclosures, there are 
several provisions that cause me to withhold my support at this time. I 
note that the bill will go to a conference committee with the House of 
Representatives, and subsequent to their work, I will revisit this 
legislation.
  America, our Republic, rests on basic and time tested principles. 
Among them is our free enterprise system. The foundation of this system 
must not be unduly influenced from excessive government interference.
  Again, while this legislation contains a number of worthy 
initiatives, respectfully, in my view, this legislation as a whole 
overreaches and fails this basic test.
  Mr. FEINGOLD. Mr. President, I support the Foreclosure Prevention Act 
of 2008 because it provides targeted relief to homeowners facing 
foreclosure and communities dealing with the negative effects of 
increasing numbers of foreclosures. Unfortunately, this bill also 
includes provisions that would not provide assistance to those most in 
need and it is my hope that those provisions will be modified or 
removed during the conference process. While I have reservations about 
some of the provisions in this bill, on balance, the legislation takes 
a step towards addressing some of the problems in the housing industry 
by increasing mortgage disclosures provided to borrowers and providing 
more housing counseling to homeowners facing foreclosure. I hope as 
Congress moves forward on this bill and other related housing measures 
we make sure that the legislation is crafted to help those most in 
need.
  It is estimated that at least 2 million Americans may face 
foreclosure on their homes in the coming months and years, which will 
not only have a devastating impact for those individual families, but 
will also have significant negative impact on the communities in which 
those homes are located. Various cities report that increased numbers 
of foreclosures and the concentration of foreclosures in certain 
neighborhoods can lead to increased instances of vandalism, crime, and 
theft. We need to act now to provide assistance that will help keep 
American families in their homes both for the good of those families 
and also for the good of whole neighborhoods.
  While Wisconsin has not been as hard hit as other regions of the 
country, foreclosures are in the rise in the state and a number of 
Wisconsinites have told me about their concerns about the effects of 
rising number of foreclosures on communities around the state. I have 
heard from local government officials who are concerned about holding 
lenders accountable for maintaining abandoned homes and ensuring the 
abandoned homes do not fall into disrepair. I have heard from housing 
advocates concerned about borrowers who may have been misled into 
taking out a subprime loan and now face the prospect of losing their 
homes. And I have heard from dedicated lawyers and counselors who are 
trying to provide counseling and other services in order to help 
individual and families through these tough times.
  If these personal stories are not enough to urge us to act, available 
foreclosure data should also move us to take steps to address the 
rising number of foreclosures around our country. One report, by the 
Center for Responsible Lending, looks at the effects of subprime loans 
issued in 2005 and 2006 throughout the Nation, including in Wisconsin. 
According to the center's analysis, there were over 60,000 subprime 
loans issued in 2005 and 2006 in Wisconsin and close to 12,000 of these 
homes financed by a subprime loan during those years may be foreclosed 
upon. Additionally, the foreclosures from these subprime loans may 
result in over 550,000 surrounding homes in my State of Wisconsin 
experiencing a decline in their value. These statistics are alarming 
and unfortunately are replicated in States around the country.

  This bill does take some good steps towards trying to address the 
rising number of foreclosures around the country. I am pleased that 
this bill includes an additional $150 million in housing counseling 
funds for 2008 and $30 million to provide legal services to homeowners 
dealing with the possible foreclosure of their homes. These funds are 
to be used to assist families facing foreclosure reach agreements with 
their lenders so that they can remain in their homes while also making 
reasonable payments on the amount owed on the home. Congress 
appropriated funding for counseling services as part of the fiscal year 
2008 omnibus appropriations bill and reports indicate that these funds 
are a cost-effective use of Federal resources. I am disappointed that 
the Senate did not provide the full $200 million in housing counseling 
funds that was included in the original bill introduced by Senator Reid 
in February. I am hopeful that we can continue to look for fiscally 
responsible ways to increase access to foreclosure counseling services 
in the coming months in order to assist more families in their attempts 
to restructure payments.
  I was also pleased to support the increased Community Development 
Block Grant, CDBG, funds that were included in the Foreclosure 
Prevention Act. CDBG is an immensely popular Federal program that 
provides a flexible source of funding for States and local governments 
to address the unique problems facing their communities. States and 
localities will be able to use these CDBG funds for a variety of 
purposes including: establishing methods to purchase foreclosed homes, 
rehabbing these homes in order to sell or rent them out, and 
demolishing foreclosed homes that are contributing to neighborhood 
blight. The increased number of foreclosures is impacting States and 
local communities in unique ways, and providing flexibility in the use 
of these CDBG funds is essential to help communities make the best 
possible use of this money. I was particularly pleased that the 
negotiators of this bill agreed to require that 25 percent of the CDBG 
funds provided in this bill be used to redevelop foreclosed homes for 
families or individuals whose income is at 50 percent of the area 
median income or less. While this targeting could be even stronger, it 
will help ensure that the Americans most in need are not left out of 
the Federal assistance provided in this legislation.
  The additional mortgage disclosures included in this package will do 
much to help ensure that future borrowers, whether taking out a first 
mortgage or refinancing their existing mortgages, better know the terms 
of the mortgages and how much they can expect to pay every month. While 
it is true that some borrowers fully knew that they

[[Page S2842]]

were getting in over their heads when they took out mortgages, other 
borrowers did not understand the terms of their loans or were misled by 
lenders. The changes that this legislation makes to the Truth in 
Lending Act, TILA, will help to prevent some of the egregious lending 
practices that have gone on in the past from occurring again. While 
this provision is a good step forward, much more needs to be done to 
rein in predatory lending. I hope that the Senate can move quickly on 
comprehensive predatory lending legislation this year.

  Unfortunately, there were some tax provisions included in this 
legislation that will not directly help families and individuals facing 
foreclosure on their homes. I am particularly disappointed that the 
single largest provision in the bill is a tax break that bails out some 
of those businesses whose actions helped aggravate the housing crisis.
  I was also disappointed that the Senate voted to table the Durbin 
amendment which would have removed a provision in bankruptcy law that 
prevents mortgages on primary residences from being modified during 
bankruptcy. According to advocates, the Durbin amendment could have 
helped approximately 600,000 individuals or families remain in their 
homes. It is the single most effective thing that could be done to 
reduce foreclosures. Unfortunately, this amendment faced stiff 
resistance in the lending community, even though mortgages on vacation 
homes and luxury items such as yachts can be modified in bankruptcy 
under current law. Senator Durbin even worked to narrow the amendment 
to address some of the lenders' concerns. Even after these reasonable 
modifications, the lending community remained opposed to the amendment, 
and the Senate bowed to this opposition. That is unfortunate. The 
Durbin amendment was a measured response targeted at homeowners facing 
extreme hardship. I voted for Senator Durbin's stand-alone legislation 
on this last week in the Judiciary Committee, and I hope the Senate can 
move this proposal forward in the coming weeks and months.
  With respect to the renewable energy amendment offered by Senators 
Ensign and Cantwell, while I continue to support extending critical 
renewable energy tax provisions, I am disappointed that this amendment 
was not offset. I also oppose the amendment's section 105 language. It 
unfortunately does not reflect the latest compromise reached within 
both the House and Senate as reflected in H.R. 6, which passed the 
House on December 2, 2007; S. Amdt 3841, which I supported on December 
13, 2007; and H.R. 5351. I am pleased, however, that Senator Cantwell 
has committed to working with me to ensure this provision is fixed to 
correct its overly broad definition, which poses a unique but serious 
threat to Wisconsin. Unless modified, the bill's language could have 
the unintended consequence of penalizing Wisconsin, which has a unique, 
State-mandated independent transmission model, by incentivizing its 
existing independent transmission company to sell assets to another 
independent transmission company. The provision is intended to only 
apply to vertically integrated utilities and I am pleased by my 
colleagues' willingness to work with me and Senator Kohl to preserve 
this intent.
  I have reservations about some of the provisions in this bill, but I 
will support the final bill because the bill does provide some 
important assistance to individuals and communities and it is important 
that we get the CDBG and housing counseling funds to States and local 
communities as soon as possible. The high number of foreclosures around 
our country has caused much suffering among individual homeowners and 
throughout local communities and we need to take action now to help 
these homeowners and communities rebuild their lives and neighborhoods. 
I hope that this bill can be improved during conference negotiations 
and that Congress will address the unresolved housing issues we face, 
including the need for stronger predatory lending laws and the need for 
more affordable housing for low income Americans. The problems in the 
housing industry and their broader impact on the Nation's economy are 
serious issues that will require the involvement of all levels of 
government as well as both private and nonprofit organizations. This 
bill represents a step forward in those efforts, but much more remains 
to be done.
  Mr. AKAKA. Mr. President, I support the Foreclosure Prevention Act of 
2008. I thank Chairman Dodd and Ranking Member Shelby for their work to 
develop a meaningful bill to help address the housing crisis in our 
country. Too many working families are losing their homes, credit 
access has been significantly reduced, and our economy has slowed. This 
act will help alleviate the challenges faced by homeowners.
  Hawaii's foreclosure rate increased by more than 88 percent last 
year, for a total of 1,270 families who had their homes foreclosed. The 
loss of a family home can be financially and emotionally devastating. 
Compared with other States, Hawaii has not suffered as much during this 
housing crisis. However, foreclosure statistics do not reflect the many 
families who are having difficulties making mortgage payments after 
their adjustable interest rate mortgage reset or having to sell at a 
significant loss due to an unexpected transfer or a loss of a job.
  This much needed bipartisan legislation will help protect homeowners 
across the country, prevent foreclosures, and assist our Nation's 
veterans. This legislation will modernize and improve the Federal 
Housing Administration, FHA, to provide homeowners with additional 
access to fixed rate mortgages. Additional resources will be provided 
by this bill for housing counseling to assist homeowners in finding 
solutions to their difficult situations. In addition, mortgage 
disclosures will be made more meaningful to consumers by this bill.
  I also appreciate the inclusion of a provision that is derived from 
legislation that I introduced last month, S. 2768. That legislation 
would correct an oversight in the Economic Stimulus Act and extend the 
temporary home loan guaranty increase to veterans so that more of them 
can realize the dream of home ownership.
  The VA Home Loan Guaranty was part of the original GI bill in 1944. 
It was signed into law by President Franklin D. Roosevelt and provided 
veterans with a federally guaranteed home loan with no down payment. So 
as World War II was ending, landmark legislation made the dream of home 
ownership a reality for millions of returning veterans. Today, more 
than 25 million veterans and servicemembers are eligible for VA home 
loan guarantees.
  The amount of the home loan guaranty was last adjusted by the 
Veterans Benefits Act of 2004. The maximum guaranty amount was 
increased to 25 percent of the Freddie Mac conforming loan limit 
determined under section 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act for a single family residence, as adjusted for the year 
involved. Using that formula, since the Freddie Mac conforming loan 
limit for a single family residence in 2008 is $417,000, VA will 
guarantee a veteran's loan up to $104,250, or 25 percent of the Freddie 
Mac limit. This guaranty exempts homeowners from having to make a down 
payment or secure private mortgage insurance.
  The newly enacted Economic Stimulus Act of 2008, however, temporarily 
reset the Fannie Mae, Freddie Mac, and FHA home loan guarantee limits 
to 125 percent of metropolitan-area median home prices, without 
reference to the VA home loan program. This had the effect of raising 
the Fannie Mae and Freddie Mac limits to nearly $730,000 in the highest 
cost areas, while leaving the VA limit of $417,000 in place.
  I urge all of my colleagues to support this measure so that this 
important group of Americans may benefit from an increased home loan 
guaranty in this time of economic uncertainty.
  This legislation would also increase benefits for specially adapted 
housing for disabled veterans. This legislation would authorize VA to 
pay an additional $10,000 to those eligible for assistance pursuant to 
section 2101(a), title 38, United States Code, increasing the total 
amount of funds available per grant to $60,000. Individuals eligible 
for assistance pursuant to section 2101(b) would be able to receive an 
additional $2,000 in assistance, increasing the total amount of funds 
available per grant to $12,000.
  Increases in housing and home adaptation grants have been infrequent, 
despite the fact that real estate and construction costs are 
continually on the

[[Page S2843]]

rise. Unless the amounts of the grants are adjusted, inflation erodes 
the value and effectiveness of these benefits, making it more difficult 
for beneficiaries to afford the accommodations they need. This 
provision would go a long way in making certain that specially adapted 
housing benefits meet the current needs of America's veterans.
  We must enact this legislation quickly to help homeowners remain in 
their homes, stabilize the economy, and provide much needed 
improvements to veterans' housing benefits.
  Mr. LEVIN. Mr. President, the progress this bill represents is 
overdue. The foreclosure crisis is dire, and there is much still to be 
done. But this bill offers some immediate help.
  Over the past few months, I have hosted a series of roundtable 
meetings in Michigan communities with leaders from local and State 
government, as well as organizations that are in the trenches working 
with families facing foreclosure, to discuss practical ways to help 
homeowners and protect our economy from further damage. When I have 
asked for their feedback on this bill, they think it would help address 
a number of the problems they highlighted.
  Across Michigan, communities would like to rehabilitate abandoned and 
foreclosed properties so that surrounding property values do not 
continue to fall. But currently there are not funds to meet the growing 
demand. This bill provides Federal block grants to areas with the 
highest foreclosure rates and filings to help rehabilitate abandoned or 
foreclosed properties and prevent further damage to local housing 
values and neighborhoods. In addition, taxpayers who purchase a home 
that has been foreclosed upon will be eligible for a tax credit.
  This bill also provides funding for much needed pre-foreclosure 
counseling. I am encouraged by the good work currently being done by 
many counseling organizations who are trying to help families avoid 
foreclosure. But across Michigan, foreclosure prevention counselors are 
overwhelmed, and a lack of funds is tying the hands of local groups 
trying to help keep families on track.
  This bill also helps address the critical need for more affordable 
loans to help families refinance and stay in their current homes. 
States are authorized to issue new tax-exempt bonds to help homeowners 
refinance adjustable rate mortgages. Providing refinancing options for 
homeowners in potentially solvent situations is an important component 
in the effort to reverse the current tide of foreclosures.
  Ending the foreclosure crisis will require a team effort among 
Federal, State, and local governments, community and neighborhood 
organizations, and lenders, brokers, and borrowers. This bill 
recognizes that fact. It provides an opportunity to help keep 
struggling families in their homes. It provides an opportunity to help 
restore our housing markets by keeping declining property values 
stable. It will protect neighborhoods from a glut of vacant homes. 
There is much more we need to do, but this bill represents a long 
overdue start. I am hopeful that an even stronger version will return 
quickly to the Senate from a House/Senate conference committee so we 
can get much-needed help to people in Michigan as soon as possible.
  Mr. BAUCUS. Mr. President, I am proud to have worked with my 
colleague Chuck Grassley on the important tax relief measures in this 
bill. They will help homeowners, homebuyers, and homebuilders. And I 
urge my colleagues to support them.
  The tax provisions in the bill come to a little over $10 billion over 
10 years.
  The bill creates a standard property tax deduction for homeowners who 
do not itemize their Federal taxes. And that deduction will help low- 
and middle-income homeowners to afford to keep their homes.
  The bill increases funding for mortgage revenue bonds. And those 
bonds will help homeowners and homebuyers to obtain affordable loans.
  The bill provides a substantial credit to buyers of foreclosed homes. 
And that credit will help to stabilize local markets and restore 
property values.
  The bill allows companies losing money--and laying off employees--to 
write off current losses and bolster struggling operations. And that 
ability to carry over losses will help struggling companies to keep 
workers on the payroll.
  There is no magic solution to this housing crisis. This bill is just 
plain responsible policy. It addresses a lot of irresponsible actions 
that led to serious trouble for many Americans and for our economy.
  To respond to this crisis, Senator Grassley and I crafted provisions 
that support American families and American workers. These folks 
deserve to keep their homes. And they deserve to keep their jobs.
  This bill will put real money in their pockets. It will do so through 
tax relief. And it will do so through continued paychecks from 
companies that use the tax relief in the bill to survive.
  I urge my colleagues to support this bill. Let's send it to the 
House. Let's send its tax relief to American homeowners, homebuyers, 
and homebuilders. And let's speed this help to American families and 
American workers.
  Mr. REID. Mr. President, the U.S. Senate will soon have the 
opportunity to vote for legislation that will help lift struggling 
homeowners, neighborhoods and our economy.
  This bipartisan housing bill--forged through compromise and 
cooperation on the part of Senator Dodd, Senator Shelby and others, is 
not perfect.
  It is not a magic bullet that will solve the problem. Either coauthor 
would be the first to say that. But it is an important step.
  Experts now predict 3 million foreclosures in the next 2 years. 
Another 45 million homeowners will experience reduced value in their 
homes as a result of these foreclosures.
  Nevadans are facing the fallout of this crisis more than any other 
state.
  In February alone, one out of every 165 homes was in foreclosure. 
That is the highest rate in America.
  Nevada's economy is suffering, just as it is throughout America, and 
this bill will help begin to turn things around.
  If passed into law, the housing bill now before us would improve the 
prospects and options for families and communities all across our 
country.
  During our country's last great banking crisis in the 1930s, the 
Federal Housing Administration, FHA, was created to stabilize the 
economy and help Americans secure the benefits of homeownership.
  Over the past three quarters of a century, millions of American 
families have become homeowners with the help of the FHA.
  But the rules that govern the FHA have limited the effectiveness of 
the program.
  Our housing bill addresses this problem by modernizing the FHA. One 
of the principal benefits will be to permanently raise loan limits to 
$550,000 and to introduce more flexibility into the lending process.
  President Bush has announced his support for FHA modernization. 
Democrats and Republicans in Congress agree that it is the right thing 
to do for American families.
  This bill will achieve that crucial and bipartisan goal.
  Among the many little-noticed consequences of the war in Iraq is that 
thousands of service men and women stationed overseas are struggling to 
meet their mortgage obligations.
  The sacrifice of our men and women in uniform is more than enough. 
They should not ever be forced to sacrifice their homes.
  Our housing bill will help avoid that terrible prospect. We extend 
for service members the protection period against foreclosure and make 
it easier for them to afford their mortgages.
  These are just some of the important provisions that this bill 
includes.
  But as I have said before, we must recognize that the upcoming vote 
is just the beginning of a process that begins here in the Senate and 
will continue in the House of Representatives.
  I hope that when the process is complete, we will have a strengthened 
bipartisan bill that will do even more to help families, communities 
and our economy.
  Yesterday, the administration announced a new program at the FHA that 
would insure new loans that refinance existing mortgages for homeowners 
who are ``underwater,'' meaning that they owe more than their house is 
now worth.
  There are reports that 9 million homeowners are now under water. The

[[Page S2844]]

administration's proposal is predicted to help just 100,000 of them.
  It is encouraging that President Bush is beginning to address the 
core of the crisis, but his proposal does not go far enough.
  Chairman Dodd and Congressman Barney Frank have been discussing a 
similar proposal for weeks that could help as many as 2 million.
  The importance of our work to help our country weather this crisis 
cannot be overstated.
  This week, the Washington Post reported that experts at the Federal 
Reserve have said this:

       The nationwide drop in home prices could put the economy in 
     uncharted territory, as there are no clear precedents for how 
     consumers will respond.

  It is time for Congress to take action. Our vote today marks not the 
end but the beginning of that process.


                           Amendment No. 4387

  The PRESIDING OFFICER. Under the previous order, amendment No. 4387, 
as amended, is agreed to. The motion to reconsider is considered made 
and laid on the table.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  Mr. REID. Mr. President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second? There is a 
sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The question is, Shall the bill, as amended, 
pass?
  The yeas and nays have been ordered, and the clerk will call the 
roll.
  The legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from New York (Mrs. Clinton) 
and the Senator from Illinois (Mr. Obama) are necessarily absent.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from North Carolina (Mrs. Dole) and the Senator from Arizona (Mr. 
McCain).
  Further, if present and voting, the Senator from North Carolina (Mrs. 
Dole) would have voted ``yea.''
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 84, nays 12, as follows:

                      [Rollcall Vote No. 96 Leg.]

                                YEAS--84

     Akaka
     Alexander
     Allard
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Burr
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Cochran
     Coleman
     Collins
     Conrad
     Cornyn
     Craig
     Dodd
     Domenici
     Dorgan
     Durbin
     Ensign
     Feingold
     Feinstein
     Graham
     Grassley
     Harkin
     Hatch
     Hutchison
     Inouye
     Isakson
     Johnson
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCaskill
     McConnell
     Menendez
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Sanders
     Schumer
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Tester
     Thune
     Vitter
     Voinovich
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--12

     Barrasso
     Bunning
     Coburn
     Corker
     Crapo
     DeMint
     Enzi
     Gregg
     Hagel
     Inhofe
     Kyl
     Warner

                             NOT VOTING--4

     Clinton
     Dole
     McCain
     Obama
  The bill (H.R. 3221), as amended, was passed, as follows:

                               H.R. 3221

       Resolved, That the bill from the House of Representatives 
     (H.R. 3221) entitled ``An Act moving the United States toward 
     greater energy independence and security, developing 
     innovative new technologies, reducing carbon emissions, 
     creating green jobs, protecting consumers, increasing clean 
     renewable energy production, and modernizing our energy 
     infrastructure, and to amend the Internal Revenue Code of 
     1986 to provide tax incentives for the production of 
     renewable energy and energy conservation.'', do pass with the 
     following amendments:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Foreclosure Prevention Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                 TITLE I--FHA MODERNIZATION ACT OF 2008

Sec. 101. Short title.

              Subtitle A--Building American Homeownership

Sec. 111. Short title.
Sec. 112. Maximum principal loan obligation.
Sec. 113. Cash investment requirement and prohibition of seller-funded 
              downpayment assistance.
Sec. 114. Mortgage insurance premiums.
Sec. 115. Rehabilitation loans.
Sec. 116. Discretionary action.
Sec. 117. Insurance of condominiums.
Sec. 118. Mutual Mortgage Insurance Fund.
Sec. 119. Hawaiian home lands and Indian reservations.
Sec. 120. Conforming and technical amendments.
Sec. 121. Insurance of mortgages.
Sec. 122. Home equity conversion mortgages.
Sec. 123. Energy efficient mortgages program.
Sec. 124. Pilot program for automated process for borrowers without 
              sufficient credit history.
Sec. 125. Homeownership preservation.
Sec. 126. Use of FHA savings for improvements in FHA technologies, 
              procedures, processes, program performance, staffing, and 
              salaries.
Sec. 127. Post-purchase housing counseling eligibility improvements.
Sec. 128. Pre-purchase homeownership counseling demonstration.
Sec. 129. Fraud prevention.
Sec. 130. Limitation on mortgage insurance premium increases.
Sec. 131. Savings provision.
Sec. 132. Implementation.
Sec. 133. Moratorium on implementation of risk-based premiums.

          Subtitle B--Manufactured Housing Loan Modernization

Sec. 141. Short title.
Sec. 142. Purposes.
Sec. 143. Exception to limitation on financial institution portfolio.
Sec. 144. Insurance benefits.
Sec. 145. Maximum loan limits.
Sec. 146. Insurance premiums.
Sec. 147. Technical corrections.
Sec. 148. Revision of underwriting criteria.
Sec. 149. Prohibition against kickbacks and unearned fees.
Sec. 150. Leasehold requirements.

     TITLE II--MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS

Sec. 201. Temporary increase in maximum loan guaranty amount for 
              certain housing loans guaranteed by the Secretary of 
              Veterans Affairs.
Sec. 202. Counseling on mortgage foreclosures for members of the Armed 
              Forces returning from service abroad.
Sec. 203. Enhancement of protections for servicemembers relating to 
              mortgages and mortgage foreclosures.
Sec. 204. Limitation on distribution of funds.

TITLE III--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

Sec. 301. Emergency assistance for the redevelopment of abandoned and 
              foreclosed homes.
Sec. 302. Nationwide distribution of resources.
Sec. 303. Limitation on use of funds with respect to eminent domain.
Sec. 304. Counseling intermediaries.

                 TITLE IV--HOUSING COUNSELING RESOURCES

Sec. 401. Housing counseling resources.
Sec. 402. Credit counseling.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

Sec. 501. Short title.
Sec. 502. Enhanced mortgage loan disclosures.
Sec. 503. Community Development Investment Authority for depository 
              institutions.
Sec. 504. Federal Home loan bank refinancing authority for certain 
              residential mortgage loans.

                    TITLE VI--TAX-RELATED PROVISIONS

Sec. 601. Election for 4-year carryback of certain net operating losses 
              and temporary suspension of 90 percent AMT limit.
Sec. 602. Modifications on use of qualified mortgage bonds; temporary 
              increased volume cap for certain housing bonds.
Sec. 603. Credit for certain home purchases.
Sec. 604. Additional standard deduction for real property taxes for 
              nonitemizers.
Sec. 605. Election to accelerate AMT and R and D credits in lieu of 
              bonus depreciation.
Sec. 606. Use of amended income tax returns to take into account 
              receipt of certain hurricane-related casualty loss grants 
              by disallowing previously taken casualty loss deductions.
Sec. 607. Waiver of deadline on construction of GO Zone property 
              eligible for bonus depreciation.
Sec. 608. Temporary tax relief for Kiowa County, Kansas and surrounding 
              area.

                    TITLE VII--EMERGENCY DESIGNATION

Sec. 701. Emergency designation.

      TITLE VIII--REIT INVESTMENT DIVERSIFICATION AND EMPOWERMENT

Sec. 801. Short title; amendment of 1986 Code.

                 Subtitle A--Taxable REIT Subsidiaries

Sec. 811. Conforming taxable REIT subsidiary asset test.

                        Subtitle B--Dealer Sales

Sec. 821. Holding period under safe harbor.

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Sec. 822. Determining value of sales under safe harbor.

                     Subtitle C--Health Care REITs

Sec. 831. Conformity for health care facilities.

                 Subtitle D--Effective Dates and Sunset

Sec. 841. Effective dates and sunset.

                   TITLE IX--VETERANS HOUSING MATTERS

Sec. 901. Home improvements and structural alterations for totally 
              disabled members of the Armed Forces before discharge or 
              release from the Armed Forces.
Sec. 902. Eligibility for specially adapted housing benefits and 
              assistance for members of the Armed Forces with service-
              connected disabilities and individuals residing outside 
              the United States.
Sec. 903. Specially adapted housing assistance for individuals with 
              severe burn injuries.
Sec. 904. Extension of assistance for individuals residing temporarily 
              in housing owned by a family member.
Sec. 905. Increase in specially adapted housing benefits for disabled 
              veterans.
Sec. 906. Report on specially adapted housing for disabled individuals.
Sec. 907. Report on specially adapted housing assistance for 
              individuals who reside in housing owned by a family 
              member on permanent basis.
Sec. 908. Definition of annual income for purposes of section 8 and 
              other public housing programs.
Sec. 909. Payment of transportation of baggage and household effects 
              for members of the Armed Forces who relocate due to 
              foreclosure of leased housing.

                   TITLE X--CLEAN ENERGY TAX STIMULUS

Sec. 1001. Short title; etc.

      Subtitle A--Extension of Clean Energy Production Incentives

Sec. 1011. Extension and modification of renewable energy production 
              tax credit.
Sec. 1012. Extension and modification of solar energy and fuel cell 
              investment tax credit.
Sec. 1013. Extension and modification of residential energy efficient 
              property credit.
Sec. 1014. Extension and modification of credit for clean renewable 
              energy bonds.
Sec. 1015. Extension of special rule to implement FERC restructuring 
              policy.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

Sec. 1021. Extension and modification of credit for energy efficiency 
              improvements to existing homes.
Sec. 1022. Extension and modification of tax credit for energy 
              efficient new homes.
Sec. 1023. Extension and modification of energy efficient commercial 
              buildings deduction.
Sec. 1024. Modification and extension of energy efficient appliance 
              credit for appliances produced after 2007.

                     TITLE XI--SENSE OF THE SENATE

Sec. 1101. Sense of the Senate.

                 TITLE I--FHA MODERNIZATION ACT OF 2008

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``FHA Modernization Act of 
     2008''.

              Subtitle A--Building American Homeownership

     SEC. 111. SHORT TITLE.

       This subtitle may be cited as the ``Building American 
     Homeownership Act of 2008''.

     SEC. 112. MAXIMUM PRINCIPAL LOAN OBLIGATION.

       (a) In General.--Paragraph (2) of section 203(b)(2) of the 
     National Housing Act (12 U.S.C. 1709(b)(2)) is amended--
       (1) by amending subparagraphs (A) and (B) to read as 
     follows:
       ``(A) not to exceed the lesser of--
       ``(i) in the case of a 1-family residence, 110 percent of 
     the median 1-family house price in the area, as determined by 
     the Secretary; and in the case of a 2-, 3-, or 4-family 
     residence, the percentage of such median price that bears the 
     same ratio to such median price as the dollar amount 
     limitation in effect for 2007 under section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) for a 2-, 3-, or 4-family residence, 
     respectively, bears to the dollar amount limitation in effect 
     for 2007 under such section for a 1-family residence; or
       ``(ii) 132 percent of the dollar amount limitation in 
     effect for 2007 under such section 305(a)(2) for a residence 
     of the applicable size (without regard to any authority to 
     increase such limitations with respect to properties located 
     in Alaska, Guam, Hawaii, or the Virgin Islands), except that 
     each such maximum dollar amount shall be adjusted effective 
     January 1 of each year beginning with 2009, by adding to or 
     subtracting from each such amount (as it may have been 
     previously adjusted) a percentage thereof equal to the 
     percentage increase or decrease, during the most recently 
     completed 12-month or 4-quarter period ending before the time 
     of determining such annual adjustment, in an housing price 
     index developed or selected by the Secretary for purposes of 
     adjustments under this clause;

     except that the dollar amount limitation in effect under this 
     subparagraph for any size residence for any area may not be 
     less than the greater of: (I) the dollar amount limitation in 
     effect under this section for the area on October 21, 1998; 
     or (II) 65 percent of the dollar amount limitation in effect 
     for 2007 under such section 305(a)(2) for a residence of the 
     applicable size, as such limitation is adjusted by any 
     subsequent percentage adjustments determined under clause 
     (ii) of this subparagraph; and
       ``(B) not to exceed 100 percent of the appraised value of 
     the property.''; and
       (2) in the matter following subparagraph (B), by striking 
     the second sentence (relating to a definition of ``average 
     closing cost'') and all that follows through ``section 
     3103A(d) of title 38, United States Code.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect upon the expiration of the date described 
     in section 202(a) of the Economic Stimulus Act of 2008 
     (Public Law 110-185).

     SEC. 113. CASH INVESTMENT REQUIREMENT AND PROHIBITION OF 
                   SELLER-FUNDED DOWNPAYMENT ASSISTANCE.

       Paragraph 9 of section 203(b) of the National Housing Act 
     (12 U.S.C. 1709(b)(9)) is amended to read as follows:
       ``(9) Cash investment requirement.--
       ``(A) In general.--A mortgage insured under this section 
     shall be executed by a mortgagor who shall have paid, in 
     cash, on account of the property an amount equal to not less 
     than 3.5 percent of the appraised value of the property or 
     such larger amount as the Secretary may determine.
       ``(B) Family members.--For purposes of this paragraph, the 
     Secretary shall consider as cash or its equivalent any 
     amounts borrowed from a family member (as such term is 
     defined in section 201), subject only to the requirements 
     that, in any case in which the repayment of such borrowed 
     amounts is secured by a lien against the property, that--
       ``(i) such lien shall be subordinate to the mortgage; and
       ``(ii) the sum of the principal obligation of the mortgage 
     and the obligation secured by such lien may not exceed 100 
     percent of the appraised value of the property.
       ``(C) Prohibited sources.--In no case shall the funds 
     required by subparagraph (A) consist, in whole or in part, of 
     funds provided by any of the following parties before, 
     during, or after closing of the property sale:
       ``(i) The seller or any other person or entity that 
     financially benefits from the transaction.
       ``(ii) Any third party or entity that is reimbursed, 
     directly or indirectly, by any of the parties described in 
     clause (i).''.

     SEC. 114. MORTGAGE INSURANCE PREMIUMS.

       Section 203(c)(2) of the National Housing Act (12 U.S.C. 
     1709(c)(2)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``or of the General Insurance Fund'' and all that follows 
     through ``section 234(c),,''; and
       (2) in subparagraph (A)--
       (A) by striking ``2.25 percent'' and inserting ``3 
     percent''; and
       (B) by striking ``2.0 percent'' and inserting ``2.75 
     percent''.

     SEC. 115. REHABILITATION LOANS.

       Subsection (k) of section 203 of the National Housing Act 
     (12 U.S.C. 1709(k)) is amended--
       (1) in paragraph (1), by striking ``on'' and all that 
     follows through ``1978''; and
       (2) in paragraph (5)--
       (A) by striking ``General Insurance Fund'' the first place 
     it appears and inserting ``Mutual Mortgage Insurance Fund''; 
     and
       (B) in the second sentence, by striking the comma and all 
     that follows through ``General Insurance Fund''.

     SEC. 116. DISCRETIONARY ACTION.

       The National Housing Act is amended--
       (1) in subsection (e) of section 202 (12 U.S.C. 1708(e))--
       (A) in paragraph (3)(B), by striking ``section 202(e) of 
     the National Housing Act'' and inserting ``this subsection''; 
     and
       (B) by redesignating such subsection as subsection (f);
       (2) by striking paragraph (4) of section 203(s) (12 U.S.C. 
     1709(s)(4)) and inserting the following new paragraph:
       ``(4) the Secretary of Agriculture;''; and
       (3) by transferring subsection (s) of section 203 (as 
     amended by paragraph (2) of this section) to section 202, 
     inserting such subsection after subsection (d) of section 
     202, and redesignating such subsection as subsection (e).

     SEC. 117. INSURANCE OF CONDOMINIUMS.

       (a) In General.--Section 234 of the National Housing Act 
     (12 U.S.C. 1715y) is amended--
       (1) in subsection (c), in the first sentence--
       (A) by striking ``and'' before ``(2)''; and
       (B) by inserting before the period at the end the 
     following: ``, and (3) the project has a blanket mortgage 
     insured by the Secretary under subsection (d)''; and
       (2) in subsection (g), by striking ``, except that'' and 
     all that follows and inserting a period.
       (b) Definition of Mortgage.--Section 201(a) of the National 
     Housing Act (12 U.S.C. 1707(a)) is amended--
       (1) before ``a first mortgage'' insert ``(A)'';
       (2) by striking ``or on a leasehold (1)'' and inserting 
     ``(B) a first mortgage on a leasehold on real estate (i)'';
       (3) by striking ``or (2)'' and inserting ``, or (ii)''; and
       (4) by inserting before the semicolon the following: ``, or 
     (C) a first mortgage given to secure the unpaid purchase 
     price of a fee interest in, or long-term leasehold interest 
     in, real estate consisting of a one-family unit in a 
     multifamily project, including a project in which the 
     dwelling units are attached, or are manufactured housing 
     units, semi-detached, or detached, and an undivided interest 
     in the common areas and facilities which serve the project''.
       (c) Definition of Real Estate.--Section 201 of the National 
     Housing Act (12 U.S.C. 1707) is amended by adding at the end 
     the following new subsection:

[[Page S2846]]

       ``(g) The term `real estate' means land and all natural 
     resources and structures permanently affixed to the land, 
     including residential buildings and stationary manufactured 
     housing. The Secretary may not require, for treatment of any 
     land or other property as real estate for purposes of this 
     title, that such land or property be treated as real estate 
     for purposes of State taxation.''.

     SEC. 118. MUTUAL MORTGAGE INSURANCE FUND.

       (a) In General.--Subsection (a) of section 202 of the 
     National Housing Act (12 U.S.C. 1708(a)) is amended to read 
     as follows:
       ``(a) Mutual Mortgage Insurance Fund.--
       ``(1) Establishment.--Subject to the provisions of the 
     Federal Credit Reform Act of 1990, there is hereby created a 
     Mutual Mortgage Insurance Fund (in this title referred to as 
     the `Fund'), which shall be used by the Secretary to carry 
     out the provisions of this title with respect to mortgages 
     insured under section 203. The Secretary may enter into 
     commitments to guarantee, and may guarantee, such insured 
     mortgages.
       ``(2) Limit on loan guarantees.--The authority of the 
     Secretary to enter into commitments to guarantee such insured 
     mortgages shall be effective for any fiscal year only to the 
     extent that the aggregate original principal loan amount 
     under such mortgages, any part of which is guaranteed, does 
     not exceed the amount specified in appropriations Acts for 
     such fiscal year.
       ``(3) Fiduciary responsibility.--The Secretary has a 
     responsibility to ensure that the Mutual Mortgage Insurance 
     Fund remains financially sound.
       ``(4) Annual independent actuarial study.--The Secretary 
     shall provide for an independent actuarial study of the Fund 
     to be conducted annually, which shall analyze the financial 
     position of the Fund. The Secretary shall submit a report 
     annually to the Congress describing the results of such study 
     and assessing the financial status of the Fund. The report 
     shall recommend adjustments to underwriting standards, 
     program participation, or premiums, if necessary, to ensure 
     that the Fund remains financially sound. The report shall 
     also include an evaluation of the quality control procedures 
     and accuracy of information utilized in the process of 
     underwriting loans guaranteed by the Fund. Such evaluation 
     shall include a review of the risk characteristics of loans 
     based not only on borrower information and performance, but 
     on risks associated with loans originated or funded by 
     various entities or financial institutions.
       ``(5) Quarterly reports.--During each fiscal year, the 
     Secretary shall submit a report to the Congress for each 
     calendar quarter, which shall specify for mortgages that are 
     obligations of the Fund--
       ``(A) the cumulative volume of loan guarantee commitments 
     that have been made during such fiscal year through the end 
     of the quarter for which the report is submitted;
       ``(B) the types of loans insured, categorized by risk;
       ``(C) any significant changes between actual and projected 
     claim and prepayment activity;
       ``(D) projected versus actual loss rates; and
       ``(E) updated projections of the annual subsidy rates to 
     ensure that increases in risk to the Fund are identified and 
     mitigated by adjustments to underwriting standards, program 
     participation, or premiums, and the financial soundness of 
     the Fund is maintained.

     The first quarterly report under this paragraph shall be 
     submitted on the last day of the first quarter of fiscal year 
     2008, or on the last day of the first full calendar quarter 
     following the enactment of the Building American 
     Homeownership Act of 2008, whichever is later.
       ``(6) Adjustment of premiums.--If, pursuant to the 
     independent actuarial study of the Fund required under 
     paragraph (4), the Secretary determines that the Fund is not 
     meeting the operational goals established under paragraph (7) 
     or there is a substantial probability that the Fund will not 
     maintain its established target subsidy rate, the Secretary 
     may either make programmatic adjustments under this title as 
     necessary to reduce the risk to the Fund, or make appropriate 
     premium adjustments.
       ``(7) Operational goals.--The operational goals for the 
     Fund are--
       ``(A) to minimize the default risk to the Fund and to 
     homeowners by among other actions instituting fraud 
     prevention quality control screening not later than 18 months 
     after the date of enactment of the Building American 
     Homeownership Act of 2008; and
       ``(B) to meet the housing needs of the borrowers that the 
     single family mortgage insurance program under this title is 
     designed to serve.''.
       (b) Obligations of Fund.--The National Housing Act is 
     amended as follows:
       (1) Homeownership voucher program mortgages.--In section 
     203(v) (12 U.S.C. 1709(v))--
       (A) by striking ``Notwithstanding section 202 of this 
     title, the'' and inserting ``The''; and
       (B) by striking ``General Insurance Fund'' the first place 
     such term appears and all that follows through the end of the 
     subsection and inserting ``Mutual Mortgage Insurance Fund.''.
       (2) Home equity conversion mortgages.--Section 255(i)(2)(A) 
     of the National Housing Act (12 U.S.C. 1715z-20(i)(2)(A)) is 
     amended by striking ``General Insurance Fund'' and inserting 
     ``Mutual Mortgage Insurance Fund''.
       (c) Conforming Amendments.--The National Housing Act is 
     amended--
       (1) in section 205 (12 U.S.C. 1711), by striking 
     subsections (g) and (h); and
       (2) in section 519(e) (12 U.S.C. 1735c(e)), by striking 
     ``203(b)'' and all that follows through ``203(i)'' and 
     inserting ``203, except as determined by the Secretary''.

     SEC. 119. HAWAIIAN HOME LANDS AND INDIAN RESERVATIONS.

       (a) Hawaiian Home Lands.--Section 247(c) of the National 
     Housing Act (12 U.S.C. 1715z-12(c)) is amended--
       (1) by striking ``General Insurance Fund established in 
     section 519'' and inserting ``Mutual Mortgage Insurance 
     Fund''; and
       (2) in the second sentence, by striking ``(1) all 
     references'' and all that follows through ``and (2)''.
       (b) Indian Reservations.--Section 248(f) of the National 
     Housing Act (12 U.S.C. 1715z-13(f)) is amended--
       (1) by striking ``General Insurance Fund'' the first place 
     it appears through ``519'' and inserting ``Mutual Mortgage 
     Insurance Fund''; and
       (2) in the second sentence, by striking ``(1) all 
     references'' and all that follows through ``and (2)''.

     SEC. 120. CONFORMING AND TECHNICAL AMENDMENTS.

       (a) Repeals.--The following provisions of the National 
     Housing Act are repealed:
       (1) Subsection (i) of section 203 (12 U.S.C. 1709(i)).
       (2) Subsection (o) of section 203 (12 U.S.C. 1709(o)).
       (3) Subsection (p) of section 203 (12 U.S.C. 1709(p)).
       (4) Subsection (q) of section 203 (12 U.S.C. 1709(q)).
       (5) Section 222 (12 U.S.C. 1715m).
       (6) Section 237 (12 U.S.C. 1715z-2).
       (7) Section 245 (12 U.S.C. 1715z-10).
       (b) Definition of Area.--Section 203(u)(2)(A) of the 
     National Housing Act (12 U.S.C. 1709(u)(2)(A)) is amended by 
     striking ``shall'' and all that follows and inserting ``means 
     a metropolitan statistical area as established by the Office 
     of Management and Budget;''.
       (c) Definition of State.--Section 201(d) of the National 
     Housing Act (12 U.S.C. 1707(d)) is amended by striking ``the 
     Trust Territory of the Pacific Islands'' and inserting ``the 
     Commonwealth of the Northern Mariana Islands''.

     SEC. 121. INSURANCE OF MORTGAGES.

       Subsection (n)(2) of section 203 of the National Housing 
     Act (12 U.S.C. 1709(n)(2)) is amended--
       (1) in subparagraph (A), by inserting ``or subordinate 
     mortgage or'' before ``lien given''; and
       (2) in subparagraph (C), by inserting ``or subordinate 
     mortgage or'' before ``lien''.

     SEC. 122. HOME EQUITY CONVERSION MORTGAGES.

       (a) In General.--Section 255 of the National Housing Act 
     (12 U.S.C. 1715z-20) is amended--
       (1) in subsection (b)(2), insert `` `real estate,' '' after 
     `` `mortgagor','';
       (2) by amending subsection (d)(1) to read as follows:
       ``(1) have been originated by a mortgagee approved by the 
     Secretary;'';
       (3) by amending subsection (d)(2)(B) to read as follows:
       ``(B) has received adequate counseling, as provided in 
     subsection (f), by an independent third party that is not, 
     either directly or indirectly, associated with or compensated 
     by a party involved in--
       ``(i) originating or servicing the mortgage;
       ``(ii) funding the loan underlying the mortgage; or
       ``(iii) the sale of annuities, investments, long-term care 
     insurance, or any other type of financial or insurance 
     product;'';
       (4) in subsection (f)--
       (A) by striking ``(f) Information Services for 
     Mortgagors.--'' and inserting ``(f) Counseling Services and 
     Information for Mortgagors.--''; and
       (B) by amending the matter preceding paragraph (1) to read 
     as follows: ``The Secretary shall provide or cause to be 
     provided adequate counseling for the mortgagor, as described 
     in subsection (d)(2)(B). Such counseling shall be provided by 
     counselors that meet qualification standards and follow 
     uniform counseling protocols. The qualification standards and 
     counseling protocols shall be established by the Secretary 
     within 12 months of the date of enactment of the Reverse 
     Mortgage Proceeds Protection Act. The protocols shall require 
     a qualified counselor to discuss with each mortgagor 
     information which shall include--''
       (5) in subsection (g), by striking ``established under 
     section 203(b)(2)'' and all that follows through ``located'' 
     and inserting ``limitation established under section 
     305(a)(2) of the Federal Home Loan Mortgage Corporation Act 
     for a 1-family residence'';
       (6) in subsection (i)(1)(C), by striking ``limitations'' 
     and inserting ``limitation'';
       (7) by striking subsection (l);
       (8) by redesignating subsection (m) as subsection (l);
       (9) by amending subsection (l), as so redesignated, to read 
     as follows:
       ``(l) Funding for Counseling.--The Secretary may use a 
     portion of the mortgage insurance premiums collected under 
     the program under this section to adequately fund the 
     counseling and disclosure activities required under 
     subsection (f), including counseling for those homeowners who 
     elect not to take out a home equity conversion mortgage, 
     provided that the use of such funds is based upon accepted 
     actuarial principles.''; and
       (10) by adding at the end the following new subsection:
       ``(m) Authority To Insure Home Purchase Mortgage.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the Secretary may insure, upon application by a 
     mortgagee, a home equity conversion mortgage upon such terms 
     and conditions as the Secretary may prescribe, when the home 
     equity conversion mortgage will be used to purchase a 1- to 
     4-family dwelling unit, one unit of which that the mortgagor 
     will occupy as a primary residence, and to provide

[[Page S2847]]

     for any future payments to the mortgagor, based on available 
     equity, as authorized under subsection (d)(9).
       ``(2) Limitation on principal obligation.--A home equity 
     conversion mortgage insured pursuant to paragraph (1) shall 
     involve a principal obligation that does not exceed the 
     dollar amount limitation determined under section 305(a)(2) 
     of the Federal Home Loan Mortgage Corporation Act for a 1-
     family residence.
       ``(n) Requirements on Mortgage Originators.--
       ``(1) In general.--The mortgagee and any other party that 
     participates in the origination of a mortgage to be insured 
     under this section shall--
       ``(A) not participate in, be associated with, or employ any 
     party that participates in or is associated with any other 
     financial or insurance activity; or
       ``(B) demonstrate to the Secretary that the mortgagee or 
     other party maintains, or will maintain, firewalls and other 
     safeguards designed to ensure that--
       ``(i) individuals participating in the origination of the 
     mortgage shall have no involvement with, or incentive to 
     provide the mortgagor with, any other financial or insurance 
     product; and
       ``(ii) the mortgagor shall not be required, directly or 
     indirectly, as a condition of obtaining a mortgage under this 
     section, to purchase any other financial or insurance 
     product.
       ``(2) Approval of other parties.--All parties that 
     participate in the origination of a mortgage to be insured 
     under this section shall be approved by the Secretary.
       ``(o) Prohibition Against Requirements To Purchase 
     Additional Products.--The mortgagee or any other party shall 
     not be required by the mortgagor or any other party to 
     purchase an insurance, annuity, or other additional product 
     as a requirement or condition of eligibility for a mortgage 
     authorized under subsection (c).
       ``(p) Study To Determine Consumer Protections and 
     Underwriting Standards.--The Secretary shall conduct a study 
     to examine and determine appropriate consumer protections and 
     underwriting standards to ensure that the purchase of 
     products referred to in subsection (o) is appropriate for the 
     consumer. In conducting such study, the Secretary shall 
     consult with consumer advocates (including recognized experts 
     in consumer protection), industry representatives, 
     representatives of counseling organizations, and other 
     interested parties.''.
       (b) Mortgages for Cooperatives.--Subsection (b) of section 
     255 of the National Housing Act (12 U.S.C. 1715z-20(b)) is 
     amended--
       (1) in paragraph (4)--
       (A) by inserting ``a first or subordinate mortgage or 
     lien'' before ``on all stock'';
       (B) by inserting ``unit'' after ``dwelling''; and
       (C) by inserting ``a first mortgage or first lien'' before 
     ``on a leasehold''; and
       (2) in paragraph (5), by inserting ``a first or subordinate 
     lien on'' before ``all stock''.
       (c) Limitation on Origination Fees.--Section 255 of the 
     National Housing Act (12 U.S.C. 1715z-20), as amended by the 
     preceding provisions of this section, is further amended by 
     adding at the end the following new subsection:
       ``(r) Limitation on Origination Fees.--The Secretary shall 
     establish limits on the origination fee that may be charged 
     to a mortgagor under a mortgage insured under this section, 
     which limitations shall--
       ``(1) equal 1.5 percent of the maximum claim amount of the 
     mortgage unless adjusted thereafter on the basis of--
       ``(A) the costs to the mortgagor; and
       ``(B) the impact of such fees on the reverse mortgage 
     market;
       ``(2) be subject to a minimum allowable amount;
       ``(3) provide that the origination fee may be fully 
     financed with the mortgage;
       ``(4) include any fees paid to correspondent mortgagees 
     approved by the Secretary; and
       ``(5) have the same effective date as subsection (m)(2) 
     regarding the limitation on principal obligation.''.
       (d) Study Regarding Program Costs and Credit 
     Availability.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study regarding the costs and 
     availability of credit under the home equity conversion 
     mortgages for elderly homeowners program under section 255 of 
     the National Housing Act (12 U.S.C. 1715z-20) (in this 
     subsection referred to as the ``program'').
       (2) Purpose.--The purpose of the study required under 
     paragraph (1) is to help Congress analyze and determine the 
     effects of limiting the amounts of the costs or fees under 
     the program from the amounts charged under the program as of 
     the date of the enactment of this title.
       (3) Content of report.--The study required under paragraph 
     (1) should focus on--
       (A) the cost to mortgagors of participating in the program;
       (B) the financial soundness of the program;
       (C) the availability of credit under the program; and
       (D) the costs to elderly homeowners participating in the 
     program, including--
       (i) mortgage insurance premiums charged under the program;
       (ii) up-front fees charged under the program; and
       (iii) margin rates charged under the program.
       (4) Timing of report.--Not later than 12 months after the 
     date of the enactment of this title, the Comptroller General 
     shall submit a report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives setting 
     forth the results and conclusions of the study required under 
     paragraph (1).

     SEC. 123. ENERGY EFFICIENT MORTGAGES PROGRAM.

       Section 106(a)(2) of the Energy Policy Act of 1992 (42 
     U.S.C. 12712 note) is amended--
       (1) by amending subparagraph (C) to read as follows:
       ``(C) Costs of improvements.--The cost of cost-effective 
     energy efficiency improvements shall not exceed the greater 
     of--
       ``(i) 5 percent of the property value (not to exceed 5 
     percent of the limit established under section 203(b)(2)(A)) 
     of the National Housing Act (12 U.S.C. 1709(b)(2)(A); or
       ``(ii) 2 percent of the limit established under section 
     203(b)(2)(B) of such Act.''; and
       (2) by adding at the end the following:
       ``(D) Limitation.--In any fiscal year, the aggregate number 
     of mortgages insured pursuant to this section may not exceed 
     5 percent of the aggregate number of mortgages for 1- to 4-
     family residences insured by the Secretary of Housing and 
     Urban Development under title II of the National Housing Act 
     (12 U.S.C. 1707 et seq.) during the preceding fiscal year.''.

     SEC. 124. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS 
                   WITHOUT SUFFICIENT CREDIT HISTORY.

       (a) Establishment.--Title II of the National Housing Act 
     (12 U.S.C. 1707 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 257. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS 
                   WITHOUT SUFFICIENT CREDIT HISTORY.

       ``(a) Establishment.--The Secretary shall carry out a pilot 
     program to establish, and make available to mortgagees, an 
     automated process for providing alternative credit rating 
     information for mortgagors and prospective mortgagors under 
     mortgages on 1- to 4-family residences to be insured under 
     this title who have insufficient credit histories for 
     determining their creditworthiness. Such alternative credit 
     rating information may include rent, utilities, and insurance 
     payment histories, and such other information as the 
     Secretary considers appropriate.
       ``(b) Scope.--The Secretary may carry out the pilot program 
     under this section on a limited basis or scope, and may 
     consider limiting the program to first-time homebuyers.
       ``(c) Limitation.--In any fiscal year, the aggregate number 
     of mortgages insured pursuant to the automated process 
     established under this section may not exceed 5 percent of 
     the aggregate number of mortgages for 1- to 4-family 
     residences insured by the Secretary under this title during 
     the preceding fiscal year.
       ``(d) Sunset.--After the expiration of the 5-year period 
     beginning on the date of the enactment of the Building 
     American Homeownership Act of 2008, the Secretary may not 
     enter into any new commitment to insure any mortgage, or 
     newly insure any mortgage, pursuant to the automated process 
     established under this section.''.
       (b) GAO Report.--Not later than the expiration of the two-
     year period beginning on the date of the enactment of this 
     subtitle, the Comptroller General of the United States shall 
     submit to the Congress a report identifying the number of 
     additional mortgagors served using the automated process 
     established pursuant to section 257 of the National Housing 
     Act (as added by the amendment made by subsection (a) of this 
     section) and the impact of such process and the insurance of 
     mortgages pursuant to such process on the safety and 
     soundness of the insurance funds under the National Housing 
     Act of which such mortgages are obligations.

     SEC. 125. HOMEOWNERSHIP PRESERVATION.

       The Secretary of Housing and Urban Development and the 
     Commissioner of the Federal Housing Administration, in 
     consultation with industry, the Neighborhood Reinvestment 
     Corporation, and other entities involved in foreclosure 
     prevention activities, shall--
       (1) develop and implement a plan to improve the Federal 
     Housing Administration's loss mitigation process; and
       (2) report such plan to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives.

     SEC. 126. USE OF FHA SAVINGS FOR IMPROVEMENTS IN FHA 
                   TECHNOLOGIES, PROCEDURES, PROCESSES, PROGRAM 
                   PERFORMANCE, STAFFING, AND SALARIES.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for each of fiscal years 2009 through 
     2013, $25,000,000, from negative credit subsidy for the 
     mortgage insurance programs under title II of the National 
     Housing Act, to the Secretary of Housing and Urban 
     Development for increasing funding for the purpose of 
     improving technology, processes, program performance, 
     eliminating fraud, and for providing appropriate staffing in 
     connection with the mortgage insurance programs under title 
     II of the National Housing Act.
       (b) Certification.--The authorization under subsection (a) 
     shall not be effective for a fiscal year unless the Secretary 
     of Housing and Urban Development has, by rulemaking in 
     accordance with section 553 of title 5, United States Code 
     (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
     such section), made a determination that--
       (1) premiums being, or to be, charged during such fiscal 
     year for mortgage insurance under title II of the National 
     Housing Act are established at the minimum amount sufficient 
     to--
       (A) comply with the requirements of section 205(f) of such 
     Act (relating to required capital ratio for the Mutual 
     Mortgage Insurance Fund); and
       (B) ensure the safety and soundness of the other mortgage 
     insurance funds under such Act; and
       (2) any negative credit subsidy for such fiscal year 
     resulting from such mortgage insurance programs adequately 
     ensures the efficient delivery and availability of such 
     programs.
       (c) Study and Report.--The Secretary of Housing and Urban 
     Development shall conduct

[[Page S2848]]

     a study to obtain recommendations from participants in the 
     private residential (both single family and multifamily) 
     mortgage lending business and the secondary market for such 
     mortgages on how best to update and upgrade processes and 
     technologies for the mortgage insurance programs under title 
     II of the National Housing Act so that the procedures for 
     originating, insuring, and servicing of such mortgages 
     conform with those customarily used by secondary market 
     purchasers of residential mortgage loans. Not later than the 
     expiration of the 12-month period beginning on the date of 
     the enactment of this title, the Secretary shall submit a 
     report to the Congress describing the progress made and to be 
     made toward updating and upgrading such processes and 
     technology, and providing appropriate staffing for such 
     mortgage insurance programs.

     SEC. 127. POST-PURCHASE HOUSING COUNSELING ELIGIBILITY 
                   IMPROVEMENTS.

       Section 106(c)(4) of the Housing and Urban Development Act 
     of 1968 (12 U.S.C. 1701x(c)(4)) is amended:
       (1) in subparagraph (C)--
       (A) in clause (i), by striking ``; or'' and inserting a 
     semicolon;
       (B) in clause (ii), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(iii) a significant reduction in the income of the 
     household due to divorce or death; or
       ``(iv) a significant increase in basic expenses of the 
     homeowner or an immediate family member of the homeowner 
     (including the spouse, child, or parent for whom the 
     homeowner provides substantial care or financial assistance) 
     due to--

       ``(I) an unexpected or significant increase in medical 
     expenses;
       ``(II) a divorce;
       ``(III) unexpected and significant damage to the property, 
     the repair of which will not be covered by private or public 
     insurance; or
       ``(IV) a large property-tax increase; or'';

       (2) by striking the matter that follows subparagraph (C); 
     and
       (3) by adding at the end the following:
       ``(D) the Secretary of Housing and Urban Development 
     determines that the annual income of the homeowner is no 
     greater than the annual income established by the Secretary 
     as being of low- or moderate-income.''.

     SEC. 128. PRE-PURCHASE HOMEOWNERSHIP COUNSELING 
                   DEMONSTRATION.

       (a) Establishment of Program.--For the period beginning on 
     the date of enactment of this title and ending on the date 
     that is 3 years after such date of enactment, the Secretary 
     of Housing and Urban Development shall establish and conduct 
     a demonstration program to test the effectiveness of 
     alternative forms of pre-purchase homeownership counseling 
     for eligible homebuyers.
       (b) Forms of Counseling.--The Secretary of Housing and 
     Urban Development shall provide to eligible homebuyers pre-
     purchase homeownership counseling under this section in the 
     form of--
       (1) telephone counseling;
       (2) individualized in-person counseling;
       (3) web-based counseling;
       (4) counseling classes; or
       (5) any other form or type of counseling that the Secretary 
     may, in his discretion, determine appropriate.
       (c) Size of Program.--The Secretary shall make available 
     the pre-purchase homeownership counseling described in 
     subsection (b) to not more than 3,000 eligible homebuyers in 
     any given year.
       (d) Incentive to Participate.--The Secretary of Housing and 
     Urban Development may provide incentives to eligible 
     homebuyers to participate in the demonstration program 
     established under subsection (a). Such incentives may include 
     the reduction of any insurance premium charges owed by the 
     eligible homebuyer to the Secretary.
       (e) Eligible Homebuyer Defined.--For purposes of this 
     section an ``eligible homebuyer'' means a first-time 
     homebuyer who has been approved for a home loan with a loan-
     to-value ratio between 97 percent and 98.5 percent.
       (f) Report to Congress.--The Secretary of Housing and Urban 
     Development shall report to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representative--
       (1) on an annual basis, on the progress and results of the 
     demonstration program established under subsection (a); and
       (2) for the period beginning on the date of enactment of 
     this title and ending on the date that is 5 years after such 
     date of enactment, on the payment history and delinquency 
     rates of eligible homebuyers who participated in the 
     demonstration program.

     SEC. 129. FRAUD PREVENTION.

       Section 1014 of title 18, United States Code, is amended in 
     the first sentence--
       (1) by inserting ``the Federal Housing Administration'' 
     before ``the Farm Credit Administration''; and
       (2) by striking ``commitment, or loan'' and inserting 
     ``commitment, loan, or insurance agreement or application for 
     insurance or a guarantee''.

     SEC. 130. LIMITATION ON MORTGAGE INSURANCE PREMIUM INCREASES.

       (a) In General.--Notwithstanding any other provision of 
     law, including any provision of this title and any amendment 
     made by this title--
       (1) for the period beginning on the date of the enactment 
     of this title and ending on October 1, 2009, the premiums 
     charged for mortgage insurance under multifamily housing 
     programs under the National Housing Act may not be increased 
     above the premium amounts in effect under such program on 
     October 1, 2006, unless the Secretary of Housing and Urban 
     Development determines that, absent such increase, insurance 
     of additional mortgages under such program would, under the 
     Federal Credit Reform Act of 1990, require the appropriation 
     of new budget authority to cover the costs (as such term is 
     defined in section 502 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a) of such insurance; and
       (2) a premium increase pursuant to paragraph (1) may be 
     made only if not less than 30 days prior to such increase 
     taking effect, the Secretary of Housing and Urban 
     Development--
       (A) notifies the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives of such increase; and
       (B) publishes notice of such increase in the Federal 
     Register.
       (b) Waiver.--The Secretary of Housing and Urban Development 
     may waive the 30-day notice requirement under subsection 
     (a)(2), if the Secretary determines that waiting 30-days 
     before increasing premiums would cause substantial damage to 
     the solvency of multifamily housing programs under the 
     National Housing Act.

     SEC. 131. SAVINGS PROVISION.

       Any mortgage insured under title II of the National Housing 
     Act before the date of enactment of this subtitle shall 
     continue to be governed by the laws, regulations, orders, and 
     terms and conditions to which it was subject on the day 
     before the date of the enactment of this subtitle.

     SEC. 132. IMPLEMENTATION.

       The Secretary of Housing and Urban Development shall by 
     notice establish any additional requirements that may be 
     necessary to immediately carry out the provisions of this 
     subtitle. The notice shall take effect upon issuance.

     SEC. 133. MORATORIUM ON IMPLEMENTATION OF RISK-BASED 
                   PREMIUMS.

       For the 12-month period beginning on the date of enactment 
     of this title, the Secretary of Housing and Urban Development 
     shall not enact, execute, or take any action to make 
     effective the planned implementation of risk-based premiums, 
     which are designed for mortgage lenders to offer borrowers an 
     FHA-insured product that provides a range of mortgage 
     insurance premium pricing, based on the risk the insurance 
     contract represents, as such planned implementation was set 
     forth in the Notice published in the Federal Register on 
     September 20, 2007 (Vol. 72, No. 182, Page 53872).

          Subtitle B--Manufactured Housing Loan Modernization

     SEC. 141. SHORT TITLE.

       This subtitle may be cited as the ``FHA Manufactured 
     Housing Loan Modernization Act of 2008''.

     SEC. 142. PURPOSES.

       The purposes of this subtitle are--
       (1) to provide adequate funding for FHA-insured 
     manufactured housing loans for low- and moderate-income 
     homebuyers during all economic cycles in the manufactured 
     housing industry;
       (2) to modernize the FHA title I insurance program for 
     manufactured housing loans to enhance participation by Ginnie 
     Mae and the private lending markets; and
       (3) to adjust the low loan limits for title I manufactured 
     home loan insurance to reflect the increase in costs since 
     such limits were last increased in 1992 and to index the 
     limits to inflation.

     SEC. 143. EXCEPTION TO LIMITATION ON FINANCIAL INSTITUTION 
                   PORTFOLIO.

       The second sentence of section 2(a) of the National Housing 
     Act (12 U.S.C. 1703(a)) is amended--
       (1) by striking ``In no case'' and inserting ``Other than 
     in connection with a manufactured home or a lot on which to 
     place such a home (or both), in no case''; and
       (2) by striking ``: Provided, That with'' and inserting ``. 
     With''.

     SEC. 144. INSURANCE BENEFITS.

       (a) In General.--Subsection (b) of section 2 of the 
     National Housing Act (12 U.S.C. 1703(b)), is amended by 
     adding at the end the following new paragraph:
       ``(8) Insurance benefits for manufactured housing loans.--
     Any contract of insurance with respect to loans, advances of 
     credit, or purchases in connection with a manufactured home 
     or a lot on which to place a manufactured home (or both) for 
     a financial institution that is executed under this title 
     after the date of the enactment of the FHA Manufactured 
     Housing Loan Modernization Act of 2008 by the Secretary shall 
     be conclusive evidence of the eligibility of such financial 
     institution for insurance, and the validity of any contract 
     of insurance so executed shall be incontestable in the hands 
     of the bearer from the date of the execution of such 
     contract, except for fraud or misrepresentation on the part 
     of such institution.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall only apply to loans that are registered or endorsed for 
     insurance after the date of the enactment of this title.

     SEC. 145. MAXIMUM LOAN LIMITS.

       (a) Dollar Amounts.--Paragraph (1) of section 2(b) of the 
     National Housing Act (12 U.S.C. 1703(b)(1)) is amended--
       (1) in clause (ii) of subparagraph (A), by striking 
     ``$17,500'' and inserting ``$25,090'';
       (2) in subparagraph (C) by striking ``$48,600'' and 
     inserting ``$69,678'';
       (3) in subparagraph (D) by striking ``$64,800'' and 
     inserting ``$92,904'';
       (4) in subparagraph (E) by striking ``$16,200'' and 
     inserting ``$23,226''; and
       (5) by realigning subparagraphs (C), (D), and (E) 2 ems to 
     the left so that the left margins of such subparagraphs are 
     aligned with the margins of subparagraphs (A) and (B).
       (b) Annual Indexing.--Subsection (b) of section 2 of the 
     National Housing Act (12 U.S.C.

[[Page S2849]]

     1703(b)), as amended by the preceding provisions of this 
     title, is further amended by adding at the end the following 
     new paragraph:
       ``(9) Annual indexing of manufactured housing loans.--The 
     Secretary shall develop a method of indexing in order to 
     annually adjust the loan limits established in subparagraphs 
     (A)(ii), (C), (D), and (E) of this subsection. Such index 
     shall be based on the manufactured housing price data 
     collected by the United States Census Bureau. The Secretary 
     shall establish such index no later than 1 year after the 
     date of the enactment of the FHA Manufactured Housing Loan 
     Modernization Act of 2008.''
       (c) Technical and Conforming Changes.--Paragraph (1) of 
     section 2(b) of the National Housing Act (12 U.S.C. 
     1703(b)(1)) is amended--
       (1) by striking ``No'' and inserting ``Except as provided 
     in the last sentence of this paragraph, no''; and
       (2) by adding after and below subparagraph (G) the 
     following:
       ``The Secretary shall, by regulation, annually increase the 
     dollar amount limitations in subparagraphs (A)(ii), (C), (D), 
     and (E) (as such limitations may have been previously 
     adjusted under this sentence) in accordance with the index 
     established pursuant to paragraph (9).''.

     SEC. 146. INSURANCE PREMIUMS.

       Subsection (f) of section 2 of the National Housing Act (12 
     U.S.C. 1703(f)) is amended--
       (1) by inserting ``(1) Premium charges.--'' after ``(f)''; 
     and
       (2) by adding at the end the following new paragraph:
       ``(2) Manufactured Home Loans.--Notwithstanding paragraph 
     (1), in the case of a loan, advance of credit, or purchase in 
     connection with a manufactured home or a lot on which to 
     place such a home (or both), the premium charge for the 
     insurance granted under this section shall be paid by the 
     borrower under the loan or advance of credit, as follows:
       ``(A) At the time of the making of the loan, advance of 
     credit, or purchase, a single premium payment in an amount 
     not to exceed 2.25 percent of the amount of the original 
     insured principal obligation.
       ``(B) In addition to the premium under subparagraph (A), 
     annual premium payments during the term of the loan, advance, 
     or obligation purchased in an amount not exceeding 1.0 
     percent of the remaining insured principal balance (excluding 
     the portion of the remaining balance attributable to the 
     premium collected under subparagraph (A) and without taking 
     into account delinquent payments or prepayments).
       ``(C) Premium charges under this paragraph shall be 
     established in amounts that are sufficient, but do not exceed 
     the minimum amounts necessary, to maintain a negative credit 
     subsidy for the program under this section for insurance of 
     loans, advances of credit, or purchases in connection with a 
     manufactured home or a lot on which to place such a home (or 
     both), as determined based upon risk to the Federal 
     Government under existing underwriting requirements.
       ``(D) The Secretary may increase the limitations on premium 
     payments to percentages above those set forth in 
     subparagraphs (A) and (B), but only if necessary, and not in 
     excess of the minimum increase necessary, to maintain a 
     negative credit subsidy as described in subparagraph (C).''.

     SEC. 147. TECHNICAL CORRECTIONS.

       (a) Dates.--Subsection (a) of section 2 of the National 
     Housing Act (12 U.S.C. 1703(a)) is amended--
       (1) by striking ``on and after July 1, 1939,'' each place 
     such term appears; and
       (2) by striking ``made after the effective date of the 
     Housing Act of 1954''.
       (b) Authority of Secretary.--Subsection (c) of section 2 of 
     the National Housing Act (12 U.S.C. 1703(c)) is amended to 
     read as follows:
       ``(c) Handling and Disposal of Property.--
       ``(1) Authority of secretary.--Notwithstanding any other 
     provision of law, the Secretary may--
       ``(A) deal with, complete, rent, renovate, modernize, 
     insure, or assign or sell at public or private sale, or 
     otherwise dispose of, for cash or credit in the Secretary's 
     discretion, and upon such terms and conditions and for such 
     consideration as the Secretary shall determine to be 
     reasonable, any real or personal property conveyed to or 
     otherwise acquired by the Secretary, in connection with the 
     payment of insurance heretofore or hereafter granted under 
     this title, including any evidence of debt, contract, claim, 
     personal property, or security assigned to or held by him in 
     connection with the payment of insurance heretofore or 
     hereafter granted under this section; and
       ``(B) pursue to final collection, by way of compromise or 
     otherwise, all claims assigned to or held by the Secretary 
     and all legal or equitable rights accruing to the Secretary 
     in connection with the payment of such insurance, including 
     unpaid insurance premiums owed in connection with insurance 
     made available by this title.
       ``(2) Advertisements for proposals.--Section 3709 of the 
     Revised Statutes shall not be construed to apply to any 
     contract of hazard insurance or to any purchase or contract 
     for services or supplies on account of such property if the 
     amount thereof does not exceed $25,000.
       ``(3) Delegation of authority.--The power to convey and to 
     execute in the name of the Secretary, deeds of conveyance, 
     deeds of release, assignments and satisfactions of mortgages, 
     and any other written instrument relating to real or personal 
     property or any interest therein heretofore or hereafter 
     acquired by the Secretary pursuant to the provisions of this 
     title may be exercised by an officer appointed by the 
     Secretary without the execution of any express delegation of 
     power or power of attorney. Nothing in this subsection shall 
     be construed to prevent the Secretary from delegating such 
     power by order or by power of attorney, in the Secretary's 
     discretion, to any officer or agent the Secretary may 
     appoint.''.

     SEC. 148. REVISION OF UNDERWRITING CRITERIA.

       (a) In General.--Subsection (b) of section 2 of the 
     National Housing Act (12 U.S.C. 1703(b)), as amended by the 
     preceding provisions of this title, is further amended by 
     adding at the end the following new paragraph:
       ``(10) Financial soundness of manufactured housing 
     program.--The Secretary shall establish such underwriting 
     criteria for loans and advances of credit in connection with 
     a manufactured home or a lot on which to place a manufactured 
     home (or both), including such loans and advances represented 
     by obligations purchased by financial institutions, as may be 
     necessary to ensure that the program under this title for 
     insurance for financial institutions against losses from such 
     loans, advances of credit, and purchases is financially 
     sound.''.
       (b) Timing.--Not later than the expiration of the 6-month 
     period beginning on the date of the enactment of this title, 
     the Secretary of Housing and Urban Development shall revise 
     the existing underwriting criteria for the program referred 
     to in paragraph (10) of section 2(b) of the National Housing 
     Act (as added by subsection (a) of this section) in 
     accordance with the requirements of such paragraph.

     SEC. 149. PROHIBITION AGAINST KICKBACKS AND UNEARNED FEES.

       Title I of the National Housing Act is amended by adding at 
     the end of section 9 the following new section:

     ``SEC. 10. PROHIBITION AGAINST KICKBACKS AND UNEARNED FEES.

       ``(a) In General.--Except as provided in subsection (b), 
     the provisions of sections 3, 8, 16, 17, 18, and 19 of the 
     Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 
     et seq.) shall apply to each sale of a manufactured home 
     financed with an FHA-insured loan or extension of credit, as 
     well as to services rendered in connection with such 
     transactions.
       ``(b) Authority of the Secretary.--The Secretary is 
     authorized to determine the manner and extent to which the 
     provisions of sections 3, 8, 16, 17, 18, and 19 of the Real 
     Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et 
     seq.) may reasonably be applied to the transactions described 
     in subsection (a), and to grant such exemptions as may be 
     necessary to achieve the purposes of this section.
       ``(c) Definitions.--For purposes of this section--
       ``(1) the term `federally related mortgage loan' as used in 
     sections 3, 8, 16, 17, 18, and 19 of the Real Estate 
     Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) 
     shall include an FHA-insured loan or extension of credit made 
     to a borrower for the purpose of purchasing a manufactured 
     home that the borrower intends to occupy as a personal 
     residence; and
       ``(2) the term `real estate settlement service' as used in 
     sections 3, 8, 16, 17, 18, and 19 of the Real Estate 
     Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) 
     shall include any service rendered in connection with a loan 
     or extension of credit insured by the Federal Housing 
     Administration for the purchase of a manufactured home.
       ``(d) Unfair and Deceptive Practices.--In connection with 
     the purchase of a manufactured home financed with a loan or 
     extension of credit insured by the Federal Housing 
     Administration under this title, the Secretary shall prohibit 
     acts or practices in connection with loans or extensions of 
     credit that the Secretary finds to be unfair, deceptive, or 
     otherwise not in the interests of the borrower.''.

     SEC. 150. LEASEHOLD REQUIREMENTS.

       Subsection (b) of section 2 of the National Housing Act (12 
     U.S.C. 1703(b)), as amended by the preceding provisions of 
     this title, is further amended by adding at the end the 
     following new paragraph:
       ``(11) Leasehold requirements.--No insurance shall be 
     granted under this section to any such financial institution 
     with respect to any obligation representing any such loan, 
     advance of credit, or purchase by it, made for the purposes 
     of financing a manufactured home which is intended to be 
     situated in a manufactured home community pursuant to a 
     lease, unless such lease--
       ``(A) expires not less than 3 years after the origination 
     date of the obligation;
       ``(B) is renewable upon the expiration of the original 3 
     year term by successive 1 year terms; and
       ``(C) requires the lessor to provide the lessee written 
     notice of termination of the lease not less than 180 days 
     prior to the expiration of the current lease term in the 
     event the lessee is required to move due to the closing of 
     the manufactured home community, and further provides that 
     failure to provide such notice to the mortgagor in a timely 
     manner will cause the lease term, at its expiration, to 
     automatically renew for an additional 1 year term.''.

     TITLE II--MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS

     SEC. 201. TEMPORARY INCREASE IN MAXIMUM LOAN GUARANTY AMOUNT 
                   FOR CERTAIN HOUSING LOANS GUARANTEED BY THE 
                   SECRETARY OF VETERANS AFFAIRS.

       Notwithstanding subparagraph (C) of section 3703(a)(1) of 
     title 38, United States Code, for purposes of any loan 
     described in subparagraph (A)(i)(IV) of such section that is 
     originated during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2008, the 
     term ``maximum guaranty amount'' shall mean an amount equal 
     to 25 percent of the higher of--
       (1) the limitation determined under section 305(a)(2) of 
     the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) for the calendar year in which the loan is 
     originated for a single-family residence; or

[[Page S2850]]

       (2) 125 percent of the area median price for a single-
     family residence, but in no case to exceed 175 percent of the 
     limitation determined under such section 305(a)(2) for the 
     calendar year in which the loan is originated for a single-
     family residence.

     SEC. 202. COUNSELING ON MORTGAGE FORECLOSURES FOR MEMBERS OF 
                   THE ARMED FORCES RETURNING FROM SERVICE ABROAD.

       (a) In General.--The Secretary of Defense shall develop and 
     implement a program to advise members of the Armed Forces 
     (including members of the National Guard and Reserve) who are 
     returning from service on active duty abroad (including 
     service in Operation Iraqi Freedom and Operation Enduring 
     Freedom) on actions to be taken by such members to prevent or 
     forestall mortgage foreclosures.
       (b) Elements.--The program required by subsection (a) shall 
     include the following:
       (1) Credit counseling.
       (2) Home mortgage counseling.
       (3) Such other counseling and information as the Secretary 
     considers appropriate for purposes of the program.
       (c) Timing of Provision of Counseling.--Counseling and 
     other information under the program required by subsection 
     (a) shall be provided to a member of the Armed Forces covered 
     by the program as soon as practicable after the return of the 
     member from service as described in subsection (a).

     SEC. 203. ENHANCEMENT OF PROTECTIONS FOR SERVICEMEMBERS 
                   RELATING TO MORTGAGES AND MORTGAGE 
                   FORECLOSURES.

       (a) Extension of Period of Protections Against Mortgage 
     Foreclosures.--
       (1) Extension of protection period.--Subsection (c) of 
     section 303 of the Servicemembers Civil Relief Act (50 U.S.C. 
     App. 533) is amended by striking ``90 days'' and inserting 
     ``9 months''.
       (2) Extension of stay of proceedings period.--Subsection 
     (b) of such section is amended by striking ``90 days'' and 
     inserting ``9 months''.
       (b) Treatment of Mortgages as Obligations Subject to 
     Interest Rate Limitation.--Section 207 of the Servicemembers 
     Civil Relief Act (50 U.S.C. App. 527) is amended--
       (1) in subsection (a)(1), by striking ``in excess of 6 
     percent'' the second place it appears and all that follows 
     and inserting ``in excess of 6 percent--
       ``(A) during the period of military service and one year 
     thereafter, in the case of an obligation or liability 
     consisting of a mortgage, trust deed, or other security in 
     the nature of a mortgage; or
       ``(B) during the period of military service, in the case of 
     any other obligation or liability.''; and
       (2) by striking subsection (d) and inserting the following 
     new subsection:
       ``(d) Definitions.--In this section:
       ``(1) Interest.--The term `interest' includes service 
     charges, renewal charges, fees, or any other charges (except 
     bona fide insurance) with respect to an obligation or 
     liability.
       ``(2) Obligation or liability.--The term `obligation or 
     liability' includes an obligation or liability consisting of 
     a mortgage, trust deed, or other security in the nature of a 
     mortgage.''.
       (c) Effective Date; Sunset.--
       (1) Effective date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act.
       (2) Sunset.--The amendments made by subsection (a) shall 
     expire on December 31, 2010. Effective January 1, 2011, the 
     provisions of subsections (b) and (c) of section 303 of the 
     Servicemembers Civil Relief Act, as in effect on the day 
     before the date of the enactment of this Act, are hereby 
     revived.

     SEC. 204. LIMITATION ON DISTRIBUTION OF FUNDS.

       (a) In General.--None of the funds made available under 
     this title or title III shall be distributed to--
       (1) an organization which has been indicted for a violation 
     under Federal law relating to an election for Federal office; 
     or
       (2) an organization which employs applicable individuals.
       (b) Applicable Individuals Defined.--In this section, the 
     term ``applicable individual'' means an individual who--
       (1) is--
       (A) employed by the organization in a permanent or 
     temporary capacity;
       (B) contracted or retained by the organization; or
       (C) acting on behalf of, or with the express or apparent 
     authority of, the organization; and
       (2) has been indicted for a violation under Federal law 
     relating to an election for Federal office.

TITLE III--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

     SEC. 301. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF 
                   ABANDONED AND FORECLOSED HOMES.

       (a) Direct Appropriations.--There are appropriated out of 
     any money in the Treasury not otherwise appropriated for the 
     fiscal year 2008, $4,000,000,000, to remain available until 
     expended, for assistance to States and units of general local 
     government (as such terms are defined in section 102 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5302)) for the redevelopment of abandoned and foreclosed upon 
     homes and residential properties.
       (b) Allocation of Appropriated Amounts.--
       (1) In general.--The amounts appropriated or otherwise made 
     available to States and units of general local government 
     under this section shall be allocated based on a funding 
     formula established by the Secretary of Housing and Urban 
     Development (in this title referred to as the ``Secretary'').
       (2) Formula to be devised swiftly.--The funding formula 
     required under paragraph (1) shall be established not later 
     than 60 days after the date of enactment of this section.
       (3) Criteria.--The funding formula required under paragraph 
     (1) shall ensure that any amounts appropriated or otherwise 
     made available under this section are allocated to States and 
     units of general local government with the greatest need, as 
     such need is determined in the discretion of the Secretary 
     based on--
       (A) the number and percentage of home foreclosures in each 
     State or unit of general local government;
       (B) the number and percentage of homes financed by a 
     subprime mortgage related loan in each State or unit of 
     general local government; and
       (C) the number and percentage of homes in default or 
     delinquency in each State or unit of general local 
     government.
       (4) Distribution.--Amounts appropriated or otherwise made 
     available under this section shall be distributed according 
     to the funding formula established by the Secretary under 
     paragraph (1) not later than 30 days after the establishment 
     of such formula.
       (c) Use of Funds.--
       (1) In general.--Any State or unit of general local 
     government that receives amounts pursuant to this section 
     shall, not later than 18 months after the receipt of such 
     amounts, use such amounts to purchase and redevelop abandoned 
     and foreclosed homes and residential properties.
       (2) Priority.--Any State or unit of general local 
     government that receives amounts pursuant to this section 
     shall in distributing such amounts give priority emphasis and 
     consideration to those metropolitan areas, metropolitan 
     cities, urban areas, rural areas, low- and moderate-income 
     areas, and other areas with the greatest need, including 
     those--
       (A) with the greatest percentage of home foreclosures;
       (B) with the highest percentage of homes financed by a 
     subprime mortgage related loan; and
       (C) identified by the State or unit of general local 
     government as likely to face a significant rise in the rate 
     of home foreclosures.
       (3) Eligible uses.--Amounts made available under this 
     section may be used to--
       (A) establish financing mechanisms for purchase and 
     redevelopment of foreclosed upon homes and residential 
     properties, including such mechanisms as soft-seconds, loan 
     loss reserves, and shared-equity loans for low- and moderate-
     income homebuyers;
       (B) purchase and rehabilitate homes and residential 
     properties that have been abandoned or foreclosed upon, in 
     order to sell, rent, or redevelop such homes and properties;
       (C) establish land banks for homes that have been 
     foreclosed upon; and
       (D) demolish blighted structures.
       (d) Limitations.--
       (1) On purchases.--Any purchase of a foreclosed upon home 
     or residential property under this section shall be at a 
     discount from the current market appraised value of the home 
     or property, taking into account its current condition, and 
     such discount shall ensure that purchasers are paying below-
     market value for the home or property.
       (2) Sale of homes.--If an abandoned or foreclosed upon home 
     or residential property is purchased, redeveloped, or 
     otherwise sold to an individual as a primary residence, then 
     such sale shall be in an amount equal to or less than the 
     cost to acquire and redevelop or rehabilitate such home or 
     property up to a decent, safe, and habitable condition.
       (3) Reinvestment of profits.--
       (A) Profits from sales, rentals, and redevelopment.--
       (i) 5-year reinvestment period.--During the 5-year period 
     following the date of enactment of this Act, any revenue 
     generated from the sale, rental, redevelopment, 
     rehabilitation, or any other eligible use that is in excess 
     of the cost to acquire and redevelop (including reasonable 
     development fees) or rehabilitate an abandoned or foreclosed 
     upon home or residential property shall be provided to and 
     used by the State or unit of general local government in 
     accordance with, and in furtherance of, the intent and 
     provisions of this section.
       (ii) Deposits in the treasury.--

       (I) Profits.--Upon the expiration of the 5-year period set 
     forth under clause (i), any revenue generated from the sale, 
     rental, redevelopment, rehabilitation, or any other eligible 
     use that is in excess of the cost to acquire and redevelop 
     (including reasonable development fees) or rehabilitate an 
     abandoned or foreclosed upon home or residential property 
     shall be deposited in the Treasury of the United States as 
     miscellaneous receipts, unless the Secretary approves a 
     request to use the funds for purposes under this Act.
       (II) Other amounts.--Upon the expiration of the 5-year 
     period set forth under clause (i), any other revenue not 
     described under subclause (I) generated from the sale, 
     rental, redevelopment, rehabilitation, or any other eligible 
     use of an abandoned or foreclosed upon home or residential 
     property shall be deposited in the Treasury of the United 
     States as miscellaneous receipts.

       (B) Other revenues.--Any revenue generated under 
     subparagraphs (A), (C) or (D) of subsection (c)(3) shall be 
     provided to and used by the State or unit of general local 
     government in accordance with, and in furtherance of, the 
     intent and provisions of this section.
       (e) Rules of Construction.--
       (1) In general.--Except as otherwise provided by this 
     section, amounts appropriated, revenues generated, or amounts 
     otherwise made available to States and units of general local 
     government under this section shall be treated as though such 
     funds were community development block grant funds under 
     title I of the Housing and

[[Page S2851]]

     Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
       (2) No match.--No matching funds shall be required in order 
     for a State or unit of general local government to receive 
     any amounts under this section.
       (f) Authority to Specify Alternative Requirements.--
       (1) In general.--In administering any amounts appropriated 
     or otherwise made available under this section, the Secretary 
     may specify alternative requirements to any provision under 
     title I of the Housing and Community Development Act of 1974 
     (except for those related to fair housing, nondiscrimination, 
     labor standards, and the environment) in accordance with the 
     terms of this section and for the sole purpose of expediting 
     the use of such funds.
       (2) Notice.--The Secretary shall provide written notice of 
     its intent to exercise the authority to specify alternative 
     requirements under paragraph (1) to the Committee on Banking, 
     Housing and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives not later 
     than 10 business days before such exercise of authority is to 
     occur.
       (3) Low and moderate income requirement.--
       (A) In general.--Notwithstanding the authority of the 
     Secretary under paragraph (1)--
       (i) all of the funds appropriated or otherwise made 
     available under this section shall be used with respect to 
     individuals and families whose income does not exceed 120 
     percent of area median income; and
       (ii) not less than 25 percent of the funds appropriated or 
     otherwise made available under this section shall be used for 
     the purchase and redevelopment of abandoned or foreclosed 
     upon homes or residential properties that will be used to 
     house individuals or families whose incomes do not exceed 50 
     percent of area median income.
       (B) Recurrent requirement.--The Secretary shall, by rule or 
     order, ensure, to the maximum extent practicable and for the 
     longest feasible term, that the sale, rental, or 
     redevelopment of abandoned and foreclosed upon homes and 
     residential properties under this section remain affordable 
     to individuals or families described in subparagraph (A).
       (g) Periodic Audits.--In consultation with the Secretary of 
     Housing and Urban Development, the Comptroller General of the 
     United States shall conduct periodic audits to ensure that 
     funds appropriated, made available, or otherwise distributed 
     under this section are being used in a manner consistent with 
     the criteria provided in this section.

     SEC. 302. NATIONWIDE DISTRIBUTION OF RESOURCES.

       Notwithstanding any other provision of this Act or the 
     amendments made by this Act, each State shall receive not 
     less than 0.5 percent of funds made available under section 
     301 (relating to emergency assistance for the redevelopment 
     of abandoned and foreclosed homes).

     SEC. 303. LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT 
                   DOMAIN.

       No State or unit of general local government may use any 
     amounts received pursuant to section 301 to fund any project 
     that seeks to use the power of eminent domain, unless eminent 
     domain is employed only for a public use: Provided, That for 
     purposes of this section, public use shall not be construed 
     to include economic development that primarily benefits 
     private entities.

     SEC. 304. COUNSELING INTERMEDIARIES.

       Notwithstanding any other provision of this Act, the amount 
     appropriated under section 301(a) of this Act shall be 
     $3,920,000,000 and the amount appropriated under section 401 
     of this Act shall be $180,000,000: Provided, That of amounts 
     appropriated under such section 401 $30,000,000 shall be used 
     by the Neighborhood Reinvestment Corporation (referred to in 
     this section as the ``NRC'') to make grants to counseling 
     intermediaries approved by the Department of Housing and 
     Urban Development or the NRC to hire attorneys to assist 
     homeowners who have legal issues directly related to the 
     homeowner's foreclosure, delinquency or short sale. Such 
     attorneys shall be capable of assisting homeowners of owner-
     occupied homes with mortgages in default, in danger of 
     default, or subject to or at risk of foreclosure and who have 
     legal issues that cannot be handled by counselors already 
     employed by such intermediaries: Provided, That of the 
     amounts provided for in the prior provisos the NRC shall give 
     priority consideration to counseling intermediaries and legal 
     organizations that (1) provide legal assistance in the 100 
     metropolitan statistical areas (as defined by the Director of 
     the Office of Management and Budget) with the highest home 
     foreclosure rates, and (2) have the capacity to begin using 
     the financial assistance within 90 days after receipt of the 
     assistance: Provided further, That no funds provided under 
     this Act shall be used to provide, obtain, or arrange on 
     behalf of a homeowner, legal representation involving or for 
     the purposes of civil litigation.

                 TITLE IV--HOUSING COUNSELING RESOURCES

     SEC. 401. HOUSING COUNSELING RESOURCES.

       There are appropriated out of any money in the Treasury not 
     otherwise appropriated for the fiscal year 2008, for an 
     additional amount for the ``Neighborhood Reinvestment 
     Corporation--Payment to the Neighborhood Reinvestment 
     Corporation'' $100,000,000, to remain available until 
     September 30, 2008, for foreclosure mitigation activities 
     under the terms and conditions contained in the second 
     undesignated paragraph (beginning with the phrase ``For an 
     additional amount'') under the heading ``Neighborhood 
     Reinvestment Corporation--Payment to the Neighborhood 
     Reinvestment Corporation'' of Public Law 110-161.

     SEC. 402. CREDIT COUNSELING.

       (a) In General.--Entities approved by the Neighborhood 
     Reinvestment Corporation or the Secretary and State housing 
     finance entities receiving funds under this title shall work 
     to identify and coordinate with non-profit organizations 
     operating national or statewide toll-free foreclosure 
     prevention hotlines, including those that--
       (1) serve as a consumer referral source and data repository 
     for borrowers experiencing some form of delinquency or 
     foreclosure;
       (2) connect callers with local housing counseling agencies 
     approved by the Neighborhood Reinvestment Corporation or the 
     Secretary to assist with working out a positive resolution to 
     their mortgage delinquency or foreclosure; or
       (3) facilitate or offer free assistance to help homeowners 
     to understand their options, negotiate solutions, and find 
     the best resolution for their particular circumstances.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Mortgage Disclosure 
     Improvement Act of 2008''.

     SEC. 502. ENHANCED MORTGAGE LOAN DISCLOSURES.

       (a) Truth in Lending Act Disclosures.--Section 128(b)(2) of 
     the Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended--
       (1) by inserting ``(A)'' before ``In the'';
       (2) by striking ``a residential mortgage transaction, as 
     defined in section 103(w)'' and inserting ``any extension of 
     credit that is secured by the dwelling of a consumer'';
       (3) by striking ``before the credit is extended, or'';
       (4) by inserting ``, which shall be at least 7 business 
     days before consummation of the transaction'' after ``written 
     application'';
       (5) by striking ``, whichever is earlier''; and
       (6) by striking ``If the'' and all that follows through the 
     end of the paragraph and inserting the following:
       ``(B) In the case of an extension of credit that is secured 
     by the dwelling of a consumer, the disclosures provided under 
     subparagraph (A), shall be in addition to the other 
     disclosures required by subsection (a), and shall--
       ``(i) state in conspicuous type size and format, the 
     following: `You are not required to complete this agreement 
     merely because you have received these disclosures or signed 
     a loan application.'; and
       ``(ii) be provided in the form of final disclosures at the 
     time of consummation of the transaction, in the form and 
     manner prescribed by this section.
       ``(C) In the case of an extension of credit that is secured 
     by the dwelling of a consumer, under which the annual rate of 
     interest is variable, or with respect to which the regular 
     payments may otherwise be variable, in addition to the other 
     disclosures required by subsection (a), the disclosures 
     provided under this subsection shall do the following:
       ``(i) Label the payment schedule as follows: `Payment 
     Schedule: Payments Will Vary Based on Interest Rate Changes'.
       ``(ii) State in conspicuous type size and format examples 
     of adjustments to the regular required payment on the 
     extension of credit based on the change in the interest rates 
     specified by the contract for such extension of credit. Among 
     the examples required to be provided under this clause is an 
     example that reflects the maximum payment amount of the 
     regular required payments on the extension of credit, based 
     on the maximum interest rate allowed under the contract, in 
     accordance with the rules of the Board. Prior to issuing any 
     rules pursuant to this clause, the Board shall conduct 
     consumer testing to determine the appropriate format for 
     providing the disclosures required under this subparagraph to 
     consumers so that such disclosures can be easily understood.
       ``(D) In any case in which the disclosure statement under 
     subparagraph (A) contains an annual percentage rate of 
     interest that is no longer accurate, as determined under 
     section 107(c), the creditor shall furnish an additional, 
     corrected statement to the borrower, not later than 3 
     business days before the date of consummation of the 
     transaction.
       ``(E) The consumer shall receive the disclosures required 
     under this paragraph before paying any fee to the creditor or 
     other person in connection with the consumer's application 
     for an extension of credit that is secured by the dwelling of 
     a consumer. If the disclosures are mailed to the consumer, 
     the consumer is considered to have received them 3 business 
     days after they are mailed. A creditor or other person may 
     impose a fee for obtaining the consumer's credit report 
     before the consumer has received the disclosures under this 
     paragraph, provided the fee is bona fide and reasonable in 
     amount.
       ``(F) Waiver of timeliness of disclosures.--To expedite 
     consummation of a transaction, if the consumer determines 
     that the extension of credit is needed to meet a bona fide 
     personal financial emergency, the consumer may waive or 
     modify the timing requirements for disclosures under 
     subparagraph (A), provided that--
       ``(i) the term `bona fide personal emergency' may be 
     further defined in regulations issued by the Board;
       ``(ii) the consumer provides to the creditor a dated, 
     written statement describing the emergency and specifically 
     waiving or modifying those timing requirements, which 
     statement shall bear the signature of all consumers entitled 
     to receive the disclosures required by this paragraph; and
       ``(iii) the creditor provides to the consumers at or before 
     the time of such waiver or modification, the final 
     disclosures required by paragraph (1).
       ``(G) The requirements of subparagraphs (B), (C), (D) and 
     (E) shall not apply to extensions of credit relating to plans 
     described in section 101(53D) of title 11, United States 
     Code.''.

[[Page S2852]]

       (b) Civil Liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended--
       (1) in paragraph (2)(A)(iii), by striking ``not less than 
     $200 or greater than $2,000'' and inserting ``not less than 
     $400 or greater than $4,000''; and
       (2) in the penultimate sentence of the undesignated matter 
     following paragraph (4)--
       (A) by inserting ``or section 128(b)(2)(C)(ii),'' after 
     ``128(a),''; and
       (B) by inserting ``or section 128(b)(2)(C)(ii)'' before the 
     period.
       (c) Effective Dates.--
       (1) General disclosures.--Except as provided in paragraph 
     (2), the amendments made by subsection (a) shall become 
     effective 12 months after the date of enactment of this Act.
       (2) Variable interest rates.--Subparagraph (C) of section 
     128(b)(2) of the Truth in Lending Act (15 U.S.C. 
     1638(b)(2)(C)), as added by subsection (a) of this section, 
     shall become effective on the earlier of--
       (A) the compliance date established by the Board for such 
     purpose, by regulation; or
       (B) 30 months after the date of enactment of this Act.

     SEC. 503. COMMUNITY DEVELOPMENT INVESTMENT AUTHORITY FOR 
                   DEPOSITORY INSTITUTIONS.

       (a) Depository Institution Community Development 
     Investments.--
       (1) National banks.--The first sentence of the paragraph 
     designated as the ``Eleventh'' of section 5136 of the Revised 
     Statutes of the United States (12 U.S.C. 24) (as amended by 
     section 305(a) of the Financial Services Regulatory Relief 
     Act of 2006) is amended by striking ``promotes the public 
     welfare by benefitting primarily'' and inserting ``is 
     designed primarily to promote the public welfare, including 
     the welfare of''.
       (2) State member banks.--The first sentence of the 23rd 
     paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 
     338a) is amended by striking ``promotes the public welfare by 
     benefitting primarily'' and inserting ``is designed primarily 
     to promote the public welfare, including the welfare of''.

     SEC. 504. FEDERAL HOME LOAN BANK REFINANCING AUTHORITY FOR 
                   CERTAIN RESIDENTIAL MORTGAGE LOANS.

       Section 10(j)(2) of the Federal Home Loan Bank Act (12 
     U.S.C. 1430(j)(2) is amended--
       (1) in subparagraph (A), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) during the 2-year period beginning on the date of 
     enactment of this subparagraph, refinance loans that are 
     secured by a first mortgage on a primary residence of any 
     family having an income at or below 80 percent of the median 
     income for the area.''.

                    TITLE VI--TAX-RELATED PROVISIONS

     SEC. 601. ELECTION FOR 4-YEAR CARRYBACK OF CERTAIN NET 
                   OPERATING LOSSES AND TEMPORARY SUSPENSION OF 90 
                   PERCENT AMT LIMIT.

       (a) In General.--
       (1) 4-year carryback of certain losses.--Subparagraph (H) 
     of section 172(b)(1) of the Internal Revenue Code of 1986 
     (relating to years to which loss may be carried) is amended 
     to read as follows:
       ``(H) Additional carryback of certain losses.--
       ``(i) Taxable years ending during 2001 and 2002.--In the 
     case of a net operating loss for any taxable year ending 
     during 2001 or 2002, subparagraph (A)(i) shall be applied by 
     substituting `5' for `2' and subparagraph (F) shall not 
     apply.
       ``(ii) Taxable years ending during 2008 and 2009.--In the 
     case of a net operating loss with respect to any eligible 
     taxpayer (within the meaning of section 168(k)(4)) for any 
     taxable year ending during 2008 or 2009--

       ``(I) subparagraph (A)(i) shall be applied by substituting 
     `4' for `2',
       ``(II) subparagraph (E)(ii) shall be applied by 
     substituting `3' for `2', and
       ``(III) subparagraph (F) shall not apply.''.

       (2) Temporary suspension of 90 percent limit on certain nol 
     carrybacks and carryovers.--
       (A) In general.--Section 56(d) of the Internal Revenue Code 
     of 1986 (relating to definition of alternative tax net 
     operating loss deduction) is amended by adding at the end the 
     following new paragraph:
       ``(3) Additional adjustments.--For purposes of paragraph 
     (1)(A), in the case of an eligible taxpayer (within the 
     meaning of section 168(k)(4)), the amount described in 
     subclause (I) of paragraph (1)(A)(ii) shall be increased by 
     the amount of the net operating loss deduction allowable for 
     the taxable year under section 172 attributable to the sum 
     of--
       ``(A) carrybacks of net operating losses from taxable years 
     ending during 2008 and 2009, and
       ``(B) carryovers of net operating losses to taxable years 
     ending during 2008 or 2009.''.
       (B) Conforming amendment.--Subclause (I) of section 
     56(d)(1)(A)(i) of such Code is amended by inserting ``amount 
     of such'' before ``deduction described in clause (ii)(I)''.
       (3) Effective dates.--
       (A) Net operating losses.--The amendments made by paragraph 
     (1) shall apply to net operating losses arising in taxable 
     years ending in 2008 or 2009.
       (B) Suspension of amt limitation.--The amendments made by 
     paragraph (2) shall apply to taxable years ending after 
     December 31, 1997.
       (4) Anti-abuse rules.--The Secretary of Treasury or the 
     Secretary's designee shall prescribe such rules as are 
     necessary to prevent the abuse of the purposes of the 
     amendments made by this subsection, including anti-stuffing 
     rules, anti-churning rules (including rules relating to sale-
     leasebacks), and rules similar to the rules under section 
     1091 of the Internal Revenue Code of 1986 relating to losses 
     from wash sales.
       (b) Election Among Stimulus Incentives.--
       (1) In general.--
       (A) Bonus depreciation.--Section 168(k) of the Internal 
     Revenue Code of 1986 (relating to special allowance for 
     certain property acquired after December 31, 2007, and before 
     January 1, 2009), as amended by the Economic Stimulus Act of 
     2008, is amended--
       (i) in paragraph (1), by inserting ``placed in service by 
     an eligible taxpayer'' after ``any qualified property'', and
       (ii) by adding at the end the following new paragraph:
       ``(4) Eligible taxpayer.--
       ``(A) In general.--At such time and in such manner as the 
     Secretary shall prescribe, each taxpayer may elect to be an 
     eligible taxpayer with respect to 1 (and only 1) of the 
     following:
       ``(i) This subsection and section 179(b)(7).
       ``(ii) The application of section 56(d)(1)(A)(ii)(I) and 
     section 172(b)(1)(H)(ii) in connection with net operating 
     losses relating to taxable years ending during 2008 and 2009.
       ``(B) Eligible taxpayer.--For purposes of each of the 
     provisions described in subparagraph (A), a taxpayer shall 
     only be treated as an eligible taxpayer with respect to the 
     provision with respect to which the taxpayer made the 
     election under subparagraph (A).
       ``(C) Election irrevocable.--An election under subparagraph 
     (A) may not be revoked except with the consent of the 
     Secretary.''.
       (B) Effective date.--The amendments made by this paragraph 
     shall take effect as if included in section 103 of the 
     Economic Stimulus Act of 2008.
       (2) Election for increased expensing.--
       (A) In general.--Paragraph (7) of section 179(b) of the 
     Internal Revenue Code of 1986 (relating to limitations), as 
     added by the Economic Stimulus Act of 2008, is amended to 
     read as follows:
       ``(7) Special rule for eligible taxpayers in 2008.--In the 
     case of any taxable year of any eligible taxpayer (within the 
     meaning of section 168(k)(4)) beginning in 2008--
       ``(A) the dollar limitation under paragraph (1) shall be 
     $250,000,
       ``(B) the dollar limitation under paragraph (2) shall be 
     $800,000, and
       ``(C) the amounts described in subparagraphs (A) and (B) 
     shall not be adjusted under paragraph (5).''.
       (B) Effective date.--The amendment made by this paragraph 
     shall take effect as if included in section 102 of the 
     Economic Stimulus Act of 2008.

     SEC. 602. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; 
                   TEMPORARY INCREASED VOLUME CAP FOR CERTAIN 
                   HOUSING BONDS.

       (a) Use of Qualified Mortgage Bonds Proceeds for Subprime 
     Refinancing Loans.--Section 143(k) of the Internal Revenue 
     Code of 1986 (relating to other definitions and special 
     rules) is amended by adding at the end the following new 
     paragraph:
       ``(12) Special rules for subprime refinancings.--
       ``(A) In general.--Notwithstanding the requirements of 
     subsection (i)(1), the proceeds of a qualified mortgage issue 
     may be used to refinance a mortgage on a residence which was 
     originally financed by the mortgagor through a qualified 
     subprime loan.
       ``(B) Special rules.--In applying this paragraph to any 
     case in which the proceeds of a qualified mortgage issue are 
     used for any refinancing described in subparagraph (A)--
       ``(i) subsection (a)(2)(D)(i) (relating to proceeds must be 
     used within 42 months of date of issuance) shall be applied 
     by substituting `12-month period' for `42-month period' each 
     place it appears,
       ``(ii) subsection (d) (relating to 3-year requirement) 
     shall not apply, and
       ``(iii) subsection (e) (relating to purchase price 
     requirement) shall be applied by using the market value of 
     the residence at the time of refinancing in lieu of the 
     acquisition cost.
       ``(C) Qualified subprime loan.--The term `qualified 
     subprime loan' means an adjustable rate single-family 
     residential mortgage loan originated after December 31, 2001, 
     and before January 1, 2008, that the bond issuer determines 
     would be reasonably likely to cause financial hardship to the 
     borrower if not refinanced.
       ``(D) Termination.--This paragraph shall not apply to any 
     bonds issued after December 31, 2010.''.
       (b) Increased Volume Cap for Certain Bonds.--
       (1) In general.--Subsection (d) of section 146 of the 
     Internal Revenue Code of 1986 (relating to State ceiling) is 
     amended by adding at the end the following new paragraph:
       ``(5) Increase and set aside for housing bonds for 2008.--
       ``(A) Increase for 2008.--In the case of calendar year 
     2008, the State ceiling for each State shall be increased by 
     an amount equal to the greater of--
       ``(i) $10,000,000,000 multiplied by a fraction--

       ``(I) the numerator of which is the population of such 
     State, and
       ``(II) the denominator of which is the total population of 
     all States, or

       ``(ii) the amount determined under subparagraph (B).
       ``(B) Minimum amount.--The amount determined under this 
     subparagraph is--
       ``(i) in the case of a State (other than a possession), 
     $90,300,606, and
       ``(ii) in the case of a possession of the United States 
     with a population less than the least populous State (other 
     than a possession), the product of--

       ``(I) a fraction the numerator of which is $90,300,606 and 
     the denominator of which is

[[Page S2853]]

     population of the least populous State (other than a 
     possession), and
       ``(II) the population of such possession.

     In the case of any possession of the United States not 
     described in clause (ii), the amount determined under this 
     subparagraph shall be zero.
       ``(C) Set aside.--
       ``(i) In general.--Any amount of the State ceiling for any 
     State which is attributable to an increase under this 
     paragraph shall be allocated solely for one or more qualified 
     purposes.
       ``(ii) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--

       ``(I) the issuance of exempt facility bonds used solely to 
     provide qualified residential rental projects, or
       ``(II) a qualified mortgage issue (determined by 
     substituting `12-month period' for `42-month period' each 
     place it appears in section 143(a)(2)(D)(i)).''.

       (2) Carryforward of unused limitations.--Subsection (f) of 
     section 146 of such Code (relating to elective carryforward 
     of unused limitation for specified purpose) is amended by 
     adding at the end the following new paragraph:
       ``(6) Special rules for increased volume cap under 
     subsection (d)(5).--
       ``(A) In general.--No amount which is attributable to the 
     increase under subsection (d)(5) may be used--
       ``(i) for a carryforward purpose other than a qualified 
     purpose (as defined in subsection (d)(5)), and
       ``(ii) to issue any bond after calendar year 2010.
       ``(B) Ordering rules.--For purposes of subparagraph (A), 
     any carryforward of an issuing authority's volume cap for 
     calendar year 2008 shall be treated as attributable to such 
     increase to the extent of such increase.''.
       (c) Alternative Minimum Tax Exemption for Qualified 
     Mortgage Bonds, Qualified Veterans' Mortgage Bonds, and Bonds 
     for Qualified Residential Rental Projects.--
       (1) In general.--Clause (ii) of section 57(a)(5)(C) of the 
     Internal Revenue Code of 1986 (relating to specified private 
     activity bonds) is amended by striking ``shall not include'' 
     and all that follows and inserting ``shall not include--

       ``(I) any qualified 501(c)(3) bond (as defined in section 
     145), or
       ``(II) any qualified mortgage bond (as defined in section 
     143(a)), any qualified veterans' mortgage bond (as defined in 
     section 143(b)), or any exempt facility bond (as defined in 
     section 142(a)) issued as part of an issue 95 percent or more 
     of the net proceeds of which are to be used to provide 
     qualified residential rental projects (as defined in section 
     142(d)), but only if such bond is issued after the date of 
     the enactment of this subclause and before January 1, 2011.

     Subclause (II) shall not apply to a refunding bond unless 
     such subclause applied to the refunded bond (or in the case 
     of a series of refundings, the original bond).''.
       (2) Conforming amendment.--The heading for section 
     57(a)(5)(C)(ii) of such Code is amended by striking 
     ``qualified 501(c)(3) bonds'' and inserting ``certain 
     bonds''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 603. CREDIT FOR CERTAIN HOME PURCHASES.

       (a) Allowance of Credit.--Subpart A of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 (relating to nonrefundable personal credits) is amended 
     by inserting after section 25D the following new section:

     ``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual who is a 
     purchaser of a qualified principal residence during the 
     taxable year, there shall be allowed as a credit against the 
     tax imposed by this chapter an amount equal to so much of the 
     purchase price of the residence as does not exceed $7,000.
       ``(2) Allocation of credit amount.--The amount of the 
     credit allowed under paragraph (1) shall be equally divided 
     among the 2 taxable years beginning with the taxable year in 
     which the purchase of the qualified principal residence is 
     made.
       ``(b) Limitations.--
       ``(1) Date of purchase.--The credit allowed under 
     subsection (a) shall be allowed only with respect to 
     purchases made--
       ``(A) after the date of the enactment of this section, and
       ``(B) before the date that is 12 months after such date.
       ``(2) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section and section 23) for the taxable 
     year.
       ``(3) One-time only.--
       ``(A) In general.--If a credit is allowed under this 
     section in the case of any individual (and such individual's 
     spouse, if married) with respect to the purchase of any 
     qualified principal residence, no credit shall be allowed 
     under this section in any taxable year with respect to the 
     purchase of any other qualified principal residence by such 
     individual or a spouse of such individual.
       ``(B) Joint purchase.--In the case of a purchase of a 
     qualified principal residence by 2 or more unmarried 
     individuals or by 2 married individuals filing separately, no 
     credit shall be allowed under this section if a credit under 
     this section has been allowed to any of such individuals in 
     any taxable year with respect to the purchase of any other 
     qualified principal residence.
       ``(c) Qualified Principal Residence.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified principal residence' 
     means an eligible single-family residence that is purchased 
     to be the principal residence of the purchaser.
       ``(2) Eligible single-family residence.--
       ``(A) In general.--The term `eligible single-family 
     residence' means a single-family structure that is a 
     residence--
       ``(i) upon which foreclosure has been filed pursuant to the 
     laws of the State in which the residence is located, and
       ``(ii) which--

       ``(I) is a new previously unoccupied residence for which a 
     building permit was issued and construction began on or 
     before September 1, 2007, or
       ``(II) was occupied as a principal residence by the 
     mortgagor for at least 1 year prior to the foreclosure 
     filing.

       ``(B) Certification.--In the case of an eligible single-
     family residence described in subparagraph (A)(ii)(I), no 
     credit shall be allowed under this section unless the 
     purchaser submits a certification by the seller of such 
     residence that such residence meets the requirements of such 
     subparagraph.
       ``(3) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121.
       ``(d) Denial of Double Benefit.--No credit shall be allowed 
     under this section for any purchase for which a credit is 
     allowed under section 1400C.
       ``(e) Recapture in the Case of Certain Dispositions.--In 
     the event that a taxpayer--
       ``(1) disposes of the qualified principal residence with 
     respect to which a credit is allowed under subsection (a), or
       ``(2) fails to occupy such residence as the taxpayer's 
     principal residence,

     at any time within 24 months after the date on which the 
     taxpayer purchased such residence, then the remaining portion 
     of the credit allowed under subsection (a) shall be 
     disallowed in the taxable year during which such disposition 
     occurred or in which the taxpayer failed to occupy the 
     residence as a principal residence, and in any subsequent 
     taxable year in which the remaining portion of the credit 
     would, but for this subsection, have been allowed.
       ``(f) Special Rules.--
       ``(1) Joint purchase.--
       ``(A) Married individuals filing separately.--In the case 
     of 2 married individuals filing separately, subsection (a) 
     shall be applied to each such individual by substituting 
     `$3,500' for `$7,000' in paragraph (1) thereof.
       ``(B) Unmarried individuals.--If 2 or more individuals who 
     are not married purchase a qualified principal residence, the 
     amount of the credit allowed under subsection (a) shall be 
     allocated among such individuals in such manner as the 
     Secretary may prescribe, except that the total amount of the 
     credits allowed to all such individuals shall not exceed 
     $7,000.
       ``(2) Purchase; purchase price.--Rules similar to the rules 
     of paragraphs (2) and (3) of section 1400C(e) (as in effect 
     on the date of the enactment of this section) shall apply for 
     purposes of this section.
       ``(3) Reporting requirement.--Rules similar to the rules of 
     section 1400C(f) (as so in effect) shall apply for purposes 
     of this section.
       ``(g) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to the 
     purchase of any residence, the basis of such residence shall 
     be reduced by the amount of the credit so allowed.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 25B'' and inserting ``, 
     25B, and 25E''.
       (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``25E,'' after ``25D,''.
       (3) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (4) Section 25D(c)(2) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (5) Section 26(a)(1) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (6) Section 904(i) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (7) Subsection (a) of section 1016 of such Code is amended 
     by striking ``and'' at the end of paragraph (36), by striking 
     the period at the end of paragraph (37) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(38) to the extent provided in section 25E(g).''.
       (8) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 25E''.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 25D the following new item:

``Sec. 25E. Credit for certain home purchases.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to purchases in taxable years ending after the 
     date of the enactment of this Act.
       (e) Application of EGTRRA Sunset.--The amendment made by 
     subsection (b)(1) shall be subject to title IX of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 in 
     the same manner as the provisions of such Act to which such 
     amendment relates.

[[Page S2854]]

     SEC. 604. ADDITIONAL STANDARD DEDUCTION FOR REAL PROPERTY 
                   TAXES FOR NONITEMIZERS.

       (a) In General.--Section 63(c)(1) of the Internal Revenue 
     Code of 1986 (defining standard deduction) is amended by 
     striking ``and'' at the end of subparagraph (A), by striking 
     the period at the end of subparagraph (B) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(C) in the case of any taxable year beginning in 2008, 
     the real property tax deduction.''.
       (b) Definition.--Section 63(c) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(8) Real property tax deduction.--
       ``(A) In general.--For purposes of paragraph (1), the real 
     property tax deduction is so much of the amount of the 
     eligible State and local real property taxes paid or accrued 
     by the taxpayer during the taxable year which do not exceed 
     $500 ($1,000 in the case of a joint return).
       ``(B) Eligible state and local real property taxes.--For 
     purposes of subparagraph (A), the term `eligible State and 
     local real property taxes' means State and local real 
     property taxes (within the meaning of section 164), but only 
     if the rate of tax for all residential real property taxes in 
     the jurisdiction has not been increased at any time after 
     April 2, 2008, and before January 1, 2009.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 605. ELECTION TO ACCELERATE AMT AND R AND D CREDITS IN 
                   LIEU OF BONUS DEPRECIATION.

       (a) In General.--Section 168(k), as amended by this Act, is 
     amended by adding at the end the following new paragraph:
       ``(5) Election to accelerate amt and r and d credits in 
     lieu of bonus depreciation.--
       ``(A) In general.--If a corporation which is an eligible 
     taxpayer (within the meaning of paragraph (4)) for purposes 
     of this subsection elects to have this paragraph apply--
       ``(i) no additional depreciation shall be allowed under 
     paragraph (1) for any qualified property placed in service 
     during any taxable year to which paragraph (1) would 
     otherwise apply, and
       ``(ii) the limitations described in subparagraph (B) for 
     such taxable year shall be increased by an aggregate amount 
     not in excess of the bonus depreciation amount for such 
     taxable year.
       ``(B) Limitations to be increased.--The limitations 
     described in this subparagraph are--
       ``(i) the limitation under section 38(c), and
       ``(ii) the limitation under section 53(c).
       ``(C) Bonus depreciation amount.--For purposes of this 
     paragraph--
       ``(i) In general.--The bonus depreciation amount for any 
     applicable taxable year is an amount equal to the product of 
     20 percent and the excess (if any) of--

       ``(I) the aggregate amount of depreciation which would be 
     determined under this section for property placed in service 
     during the taxable year if no election under this paragraph 
     were made, over
       ``(II) the aggregate amount of depreciation allowable under 
     this section for property placed in service during the 
     taxable year.

     In the case of property which is a passenger aircraft, the 
     amount determined under subclause (I) shall be calculated 
     without regard to the written binding contract limitation 
     under paragraph (2)(A)(iii)(I).
       ``(ii) Eligible qualified property.--For purposes of clause 
     (i), the term `eligible qualified property' means qualified 
     property under paragraph (2), except that in applying 
     paragraph (2) for purposes of this clause--

       ``(I) `March 31, 2008' shall be substituted for `December 
     31, 2007' each place it appears in subparagraph (A) and 
     clauses (i) and (ii) of subparagraph (E) thereof,
       ``(II) only adjusted basis attributable to manufacture, 
     construction, or production after March 31, 2008, and before 
     January 1, 2009, shall be taken into account under 
     subparagraph (B)(ii) thereof, and
       ``(III) in the case of property which is a passenger 
     aircraft, the written binding contract limitation under 
     subparagraph (A)(iii)(I) thereof shall not apply.

       ``(iii) Maximum amount.--The bonus depreciation amount for 
     any applicable taxable year shall not exceed the applicable 
     limitation under clause (iv), reduced (but not below zero) by 
     the bonus depreciation amount for any preceding taxable year.
       ``(iv) Applicable limitation.--For purposes of clause 
     (iii), the term `applicable limitation' means, with respect 
     to any eligible taxpayer, the lesser of--

       ``(I) $40,000,000, or
       ``(II) 10 percent of the sum of the amounts determined with 
     respect to the eligible taxpayer under clauses (ii) and (iii) 
     of subparagraph (D).

       ``(v) Aggregation rule.--All corporations which are treated 
     as a single employer under section 52(a) shall be treated as 
     1 taxpayer for purposes of applying the limitation under this 
     subparagraph and determining the applicable limitation under 
     clause (iv).
       ``(D) Allocation of bonus depreciation amounts.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     taxpayer shall, at such time and in such manner as the 
     Secretary may prescribe, specify the portion (if any) of the 
     bonus depreciation amount which is to be allocated to each of 
     the limitations described in subparagraph (B).
       ``(ii) Business credit limitation.--The portion of the 
     bonus depreciation amount allocated to the limitation 
     described in subparagraph (B)(i) shall not exceed an amount 
     equal to the portion of the credit allowable under section 38 
     for the taxable year which is allocable to business credit 
     carryforwards to such taxable year which are--

       ``(I) from taxable years beginning before January 1, 2006, 
     and
       ``(II) properly allocable (determined under the rules of 
     section 38(d)) to the research credit determined under 
     section 41(a).

       ``(iii) Alternative minimum tax credit limitation.--The 
     portion of the bonus depreciation amount allocated to the 
     limitation described in subparagraph (B)(ii) shall not exceed 
     an amount equal to the portion of the minimum tax credit 
     allowable under section 53 for the taxable year which is 
     allocable to the adjusted minimum tax imposed for taxable 
     years beginning before January 1, 2006.
       ``(E) Credit refundable.--Any aggregate increases in the 
     credits allowed under section 38 or 53 by reason of this 
     paragraph shall, for purposes of this title, be treated as a 
     credit allowed to the taxpayer under subpart C of part IV of 
     subchapter A.
       ``(F) Other rules.--
       ``(i) Election.--Any election under this paragraph 
     (including any allocation under subparagraph (D)) may be 
     revoked only with the consent of the Secretary.
       ``(ii) Deduction allowed in computing minimum tax.--
     Notwithstanding this paragraph, paragraph (2)(G) shall apply 
     with respect to the deduction computed under this section 
     (after application of this paragraph) with respect to 
     property placed in service during any applicable taxable 
     year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007, in taxable years ending after such date.

     SEC. 606. USE OF AMENDED INCOME TAX RETURNS TO TAKE INTO 
                   ACCOUNT RECEIPT OF CERTAIN HURRICANE-RELATED 
                   CASUALTY LOSS GRANTS BY DISALLOWING PREVIOUSLY 
                   TAKEN CASUALTY LOSS DEDUCTIONS.

       (a) In General.--Notwithstanding any other provision of the 
     Internal Revenue Code of 1986, if a taxpayer claims a 
     deduction for any taxable year with respect to a casualty 
     loss to a personal residence (within the meaning of section 
     121 of such Code) resulting from Hurricane Katrina, Hurricane 
     Rita, or Hurricane Wilma and in a subsequent taxable year 
     receives a grant under Public Law 109-148, 109-234, or 110-
     116 as reimbursement for such loss, such taxpayer may elect 
     to file an amended income tax return for the taxable year in 
     which such deduction was allowed and disallow such deduction. 
     If elected, such amended return must be filed not later than 
     the due date for filing the tax return for the taxable year 
     in which the taxpayer receives such reimbursement or the date 
     that is 4 months after the date of the enactment of this Act, 
     whichever is later. Any increase in Federal income tax 
     resulting from such disallowance if such amended return is 
     filed--
       (1) shall be subject to interest on the underpaid tax for 
     one year at the underpayment rate determined under section 
     6621(a)(2) of such Code; and
       (2) shall not be subject to any penalty under such Code.
       (b) Emergency Designation.--For purposes of Senate 
     enforcement, all provisions of this section are designated as 
     emergency requirements and necessary to meet emergency needs 
     pursuant to section 204 of S. Con. Res. 21 (110th Congress), 
     the concurrent resolution on the budget for fiscal year 2008.

     SEC. 607. WAIVER OF DEADLINE ON CONSTRUCTION OF GO ZONE 
                   PROPERTY ELIGIBLE FOR BONUS DEPRECIATION.

       (a) In General.--Subparagraph (B) of section 1400N(d)(3) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) without regard to `and before January 1, 2009' in 
     clause (i) thereof,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2007.
       (c) Emergency Designation.--For purposes of Senate 
     enforcement, all provisions of this section are designated as 
     emergency requirements and necessary to meet emergency needs 
     pursuant to section 204 of S. Con. Res. 21 (110th Congress), 
     the concurrent resolution on the budget for fiscal year 2008.

     SEC. 608. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND 
                   SURROUNDING AREA.

       (a) In General.--The following provisions of or relating to 
     the Internal Revenue Code of 1986 shall apply, in addition to 
     the areas described in such provisions, to an area with 
     respect to which a major disaster has been declared by the 
     President under section 401 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (FEMA-1699-DR, 
     as in effect on the date of the enactment of this Act) by 
     reason of severe storms and tornados beginning on May 4, 
     2007, and determined by the President to warrant individual 
     or individual and public assistance from the Federal 
     Government under such Act with respect to damages attributed 
     to such storms and tornados:
       (1) Suspension of certain limitations on personal casualty 
     losses.--Section 1400S(b)(1) of the Internal Revenue Code of 
     1986, by substituting ``May 4, 2007'' for ``August 25, 
     2005''.
       (2) Extension of replacement period for nonrecognition of 
     gain.--Section 405 of the Katrina Emergency Tax Relief Act of 
     2005, by substituting ``on or after May 4, 2007, by reason of 
     the May 4, 2007, storms and tornados'' for ``on or after 
     August 25, 2005, by reason of Hurricane Katrina''.
       (3) Employee retention credit for employers affected by may 
     4 storms and tornados.--Section 1400R(a) of the Internal 
     Revenue Code of 1986--
       (A) by substituting ``May 4, 2007'' for ``August 28, 2005'' 
     each place it appears,
       (B) by substituting ``January 1, 2008'' for ``January 1, 
     2006'' both places it appears, and

[[Page S2855]]

       (C) only with respect to eligible employers who employed an 
     average of not more than 200 employees on business days 
     during the taxable year before May 4, 2007.
       (4) Special allowance for certain property acquired on or 
     after may 5, 2007.--Section 1400N(d) of such Code--
       (A) by substituting ``qualified Recovery Assistance 
     property'' for ``qualified Gulf Opportunity Zone property'' 
     each place it appears,
       (B) by substituting ``May 5, 2007'' for ``August 28, 2005'' 
     each place it appears,
       (C) by substituting ``December 31, 2008'' for ``December 
     31, 2007'' in paragraph (2)(A)(v),
       (D) by substituting ``December 31, 2009'' for ``December 
     31, 2008'' in paragraph (2)(A)(v),
       (E) by substituting ``May 4, 2007'' for ``August 27, 2005'' 
     in paragraph (3)(A),
       (F) by substituting ``January 1, 2009'' for ``January 1, 
     2008'' in paragraph (3)(B), and
       (G) determined without regard to paragraph (6) thereof.
       (5) Increase in expensing under section 179.--Section 
     1400N(e) of such Code, by substituting ``qualified section 
     179 Recovery Assistance property'' for ``qualified section 
     179 Gulf Opportunity Zone property'' each place it appears.
       (6) Expensing for certain demolition and clean-up costs.--
     Section 1400N(f) of such Code--
       (A) by substituting ``qualified Recovery Assistance clean-
     up cost'' for ``qualified Gulf Opportunity Zone clean-up 
     cost'' each place it appears, and
       (B) by substituting ``beginning on May 4, 2007, and ending 
     on December 31, 2009'' for ``beginning on August 28, 2005, 
     and ending on December 31, 2007'' in paragraph (2) thereof.
       (7) Treatment of public utility property disaster losses.--
     Section 1400N(o) of such Code.
       (8) Treatment of net operating losses attributable to storm 
     losses.--Section 1400N(k) of such Code--
       (A) by substituting ``qualified Recovery Assistance loss'' 
     for ``qualified Gulf Opportunity Zone loss'' each place it 
     appears,
       (B) by substituting ``after May 3, 2007, and before on 
     January 1, 2010'' for ``after August 27, 2005, and before 
     January 1, 2008'' each place it appears,
       (C) by substituting ``May 4, 2007'' for ``August 28, 2005'' 
     in paragraph (2)(B)(ii)(I) thereof,
       (D) by substituting ``qualified Recovery Assistance 
     property'' for ``qualified Gulf Opportunity Zone property'' 
     in paragraph (2)(B)(iv) thereof, and
       (E) by substituting ``qualified Recovery Assistance 
     casualty loss'' for ``qualified Gulf Opportunity Zone 
     casualty loss'' each place it appears.
       (9) Treatment of representations regarding income 
     eligibility for purposes of qualified rental project 
     requirements.--Section 1400N(n) of such Code.
       (10) Special rules for use of retirement funds.--Section 
     1400Q of such Code--
       (A) by substituting ``qualified Recovery Assistance 
     distribution'' for ``qualified hurricane distribution'' each 
     place it appears,
       (B) by substituting ``on or after May 4, 2007, and before 
     January 1, 2009'' for ``on or after August 25, 2005, and 
     before January 1, 2007'' in subsection (a)(4)(A)(i),
       (C) by substituting ``qualified storm distribution'' for 
     ``qualified Katrina distribution'' each place it appears,
       (D) by substituting ``after November 4, 2006, and before 
     May 5, 2007'' for ``after February 28, 2005, and before 
     August 29, 2005'' in subsection (b)(2)(B)(ii),
       (E) by substituting ``beginning on May 4, 2007, and ending 
     on November 5, 2007'' for ``beginning on August 25, 2005, and 
     ending on February 28, 2006'' in subsection (b)(3)(A),
       (F) by substituting ``qualified storm individual'' for 
     ``qualified Hurricane Katrina individual'' each place it 
     appears,
       (G) by substituting ``December 31, 2007'' for ``December 
     31, 2006'' in subsection (c)(2)(A),
       (H) by substituting ``beginning on June 4, 2007, and ending 
     on December 31, 2007'' for ``beginning on September 24, 2005, 
     and ending on December 31, 2006'' in subsection (c)(4)(A)(i),
       (I) by substituting ``May 4, 2007'' for ``August 25, 2005'' 
     in subsection (c)(4)(A)(ii), and
       (J) by substituting ``January 1, 2008'' for ``January 1, 
     2007'' in subsection (d)(2)(A)(ii).
       (b) Emergency Designation.--For purposes of Senate 
     enforcement, all provisions of this section are designated as 
     emergency requirements and necessary to meet emergency needs 
     pursuant to section 204 of S. Con. Res. 21 (110th Congress), 
     the concurrent resolution on the budget for fiscal year 2008.

                    TITLE VII--EMERGENCY DESIGNATION

     SEC. 701. EMERGENCY DESIGNATION.

       For purposes of Senate enforcement, all provisions of this 
     Act are designated as emergency requirements and necessary to 
     meet emergency needs pursuant to section 204 of S. Con. Res. 
     21 (110th Congress), the concurrent resolution on the budget 
     for fiscal year 2008.

      TITLE VIII--REIT INVESTMENT DIVERSIFICATION AND EMPOWERMENT

     SEC. 801. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This title may be cited as the ``REIT 
     Investment Diversification and Empowerment Act of 2008''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

                 Subtitle A--Taxable REIT Subsidiaries

     SEC. 811. CONFORMING TAXABLE REIT SUBSIDIARY ASSET TEST.

       Section 856(c)(4)(B)(ii) is amended by striking ``20 
     percent'' and inserting ``25 percent''.

                        Subtitle B--Dealer Sales

     SEC. 821. HOLDING PERIOD UNDER SAFE HARBOR.

       Section 857(b)(6) (relating to income from prohibited 
     transactions) is amended--
       (1) by striking ``4 years'' in subparagraphs (C)(i), 
     (C)(iv), and (D)(i) and inserting ``2 years'',
       (2) by striking ``4-year period'' in subparagraphs (C)(ii), 
     (D)(ii), and (D)(iii) and inserting ``2-year period'', and
       (3) by striking ``real estate asset''and all that follows 
     through ``if'' in the matter preceding clause (i) of 
     subparagraphs (C) and (D), respectively, and inserting ``real 
     estate asset (as defined in section 856(c)(5)(B)) and which 
     is described in section 1221(a)(1) if''.

     SEC. 822. DETERMINING VALUE OF SALES UNDER SAFE HARBOR.

       Section 857(b)(6) is amended--
       (1) by striking the semicolon at the end of subparagraph 
     (C)(iii) and inserting ``, or (III) the fair market value of 
     property (other than sales of foreclosure property or sales 
     to which section 1033 applies) sold during the taxable year 
     does not exceed 10 percent of the fair market value of all of 
     the assets of the trust as of the beginning of the taxable 
     year;'', and
       (2) by adding ``or'' at the end of subclause (II) of 
     subparagraph (D)(iv) and by adding at the end of such 
     subparagraph the following new subclause:
       ``(III) the fair market value of property (other than sales 
     of foreclosure property or sales to which section 1033 
     applies) sold during the taxable year does not exceed 10 
     percent of the fair market value of all of the assets of the 
     trust as of the beginning of the taxable year,''.

                     Subtitle C--Health Care REITs

     SEC. 831. CONFORMITY FOR HEALTH CARE FACILITIES.

       (a) Related Party Rentals.--Subparagraph (B) of section 
     856(d)(8) (relating to special rule for taxable REIT 
     subsidiaries) is amended to read as follows:
       ``(B) Exception for certain lodging facilities and health 
     care property.--The requirements of this subparagraph are met 
     with respect to an interest in real property which is a 
     qualified lodging facility (as defined in paragraph (9)(D)) 
     or a qualified health care property (as defined in subsection 
     (e)(6)(D)(i)) leased by the trust to a taxable REIT 
     subsidiary of the trust if the property is operated on behalf 
     of such subsidiary by a person who is an eligible independent 
     contractor. For purposes of this section, a taxable REIT 
     subsidiary is not considered to be operating or managing a 
     qualified health care property or qualified lodging facility 
     solely because it--
       ``(i) directly or indirectly possesses a license, permit, 
     or similar instrument enabling it to do so, or
       ``(ii) employs individuals working at such property or 
     facility located outside the United States, but only if an 
     eligible independent contractor is responsible for the daily 
     supervision and direction of such individuals on behalf of 
     the taxable REIT subsidiary pursuant to a management 
     agreement or similar service contract.''.
       (b) Eligible Independent Contractor.--Subparagraphs (A) and 
     (B) of section 856(d)(9) (relating to eligible independent 
     contractor) are amended to read as follows:
       ``(A) In general.--The term `eligible independent 
     contractor' means, with respect to any qualified lodging 
     facility or qualified health care property (as defined in 
     subsection (e)(6)(D)(i)), any independent contractor if, at 
     the time such contractor enters into a management agreement 
     or other similar service contract with the taxable REIT 
     subsidiary to operate such qualified lodging facility or 
     qualified health care property, such contractor (or any 
     related person) is actively engaged in the trade or business 
     of operating qualified lodging facilities or qualified health 
     care properties, respectively, for any person who is not a 
     related person with respect to the real estate investment 
     trust or the taxable REIT subsidiary.
       ``(B) Special rules.--Solely for purposes of this paragraph 
     and paragraph (8)(B), a person shall not fail to be treated 
     as an independent contractor with respect to any qualified 
     lodging facility or qualified health care property (as so 
     defined) by reason of the following:
       ``(i) The taxable REIT subsidiary bears the expenses for 
     the operation of such qualified lodging facility or qualified 
     health care property pursuant to the management agreement or 
     other similar service contract.
       ``(ii) The taxable REIT subsidiary receives the revenues 
     from the operation of such qualified lodging facility or 
     qualified health care property, net of expenses for such 
     operation and fees payable to the operator pursuant to such 
     agreement or contract.
       ``(iii) The real estate investment trust receives income 
     from such person with respect to another property that is 
     attributable to a lease of such other property to such person 
     that was in effect as of the later of--

       ``(I) January 1, 1999, or
       ``(II) the earliest date that any taxable REIT subsidiary 
     of such trust entered into a management agreement or other 
     similar service contract with such person with respect to 
     such qualified lodging facility or qualified health care 
     property.''.

       (c) Taxable REIT Subsidiaries.--The last sentence of 
     section 856(l)(3) is amended--
       (1) by inserting ``or a health care facility'' after ``a 
     lodging facility'', and
       (2) by inserting ``or health care facility'' after ``such 
     lodging facility''.

                 Subtitle D--Effective Dates and Sunset

     SEC. 841. EFFECTIVE DATES AND SUNSET.

       (a) In General.--Except as otherwise provided in this 
     section, the amendments made by this title shall apply to 
     taxable years beginning after the date of the enactment of 
     this Act.

[[Page S2856]]

       (b) REIT Income Tests.--
       (1) The amendment made by section 801(a) and (b) shall 
     apply to gains and items of income recognized after the date 
     of the enactment of this Act.
       (2) The amendment made by section 801(c) shall apply to 
     transactions entered into after the date of the enactment of 
     this Act.
       (3) The amendment made by section 801(d) shall apply after 
     the date of the enactment of this Act.
       (c) Conforming Foreign Currency Revisions.--
       (1) The amendment made by section 803(a) shall apply to 
     gains recognized after the date of the enactment of this Act.
       (2) The amendment made by section 803(b) shall apply to 
     gains and deductions recognized after the date of the 
     enactment of this Act.
       (d) Dealer Sales.--The amendments made by subtitle C shall 
     apply to sales made after the date of the enactment of this 
     Act.
       (e) Sunset.--All amendments made by this title shall not 
     apply to taxable years beginning after the date which is 5 
     years after the date of the enactment of this Act. The 
     Internal Revenue Code of 1986 shall be applied and 
     administered to taxable years described in the preceding 
     sentence as if the amendments so described had never been 
     enacted.

                   TITLE IX--VETERANS HOUSING MATTERS

     SEC. 901. HOME IMPROVEMENTS AND STRUCTURAL ALTERATIONS FOR 
                   TOTALLY DISABLED MEMBERS OF THE ARMED FORCES 
                   BEFORE DISCHARGE OR RELEASE FROM THE ARMED 
                   FORCES.

       Section 1717 of title 38, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d)(1) In the case of a member of the Armed Forces who, 
     as determined by the Secretary, has a disability permanent in 
     nature incurred or aggravated in the line of duty in the 
     active military, naval, or air service, the Secretary may 
     furnish improvements and structural alterations for such 
     member for such disability or as otherwise described in 
     subsection (a)(2) while such member is hospitalized or 
     receiving outpatient medical care, services, or treatment for 
     such disability if the Secretary determines that such member 
     is likely to be discharged or released from the Armed Forces 
     for such disability.
       ``(2) The furnishing of improvements and alterations under 
     paragraph (1) in connection with the furnishing of medical 
     services described in subparagraph (A) or (B) of subsection 
     (a)(2) shall be subject to the limitation specified in the 
     applicable subparagraph.''.

     SEC. 902. ELIGIBILITY FOR SPECIALLY ADAPTED HOUSING BENEFITS 
                   AND ASSISTANCE FOR MEMBERS OF THE ARMED FORCES 
                   WITH SERVICE-CONNECTED DISABILITIES AND 
                   INDIVIDUALS RESIDING OUTSIDE THE UNITED STATES.

       (a) Eligibility.--Chapter 21 of title 38, United States 
     Code, is amended by inserting after section 2101 the 
     following new section:

     ``Sec. 2101A. Eligibility for benefits and assistance: 
       members of the Armed Forces with service-connected 
       disabilities; individuals residing outside the United 
       States

       ``(a) Members With Service-Connected Disabilities.--(1) The 
     Secretary may provide assistance under this chapter to a 
     member of the Armed Forces serving on active duty who is 
     suffering from a disability that meets applicable criteria 
     for benefits under this chapter if the disability is incurred 
     or aggravated in line of duty in the active military, naval, 
     or air service. Such assistance shall be provided to the same 
     extent as assistance is provided under this chapter to 
     veterans eligible for assistance under this chapter and 
     subject to the same requirements as veterans under this 
     chapter.
       ``(2) For purposes of this chapter, any reference to a 
     veteran or eligible individual shall be treated as a 
     reference to a member of the Armed Forces described in 
     subsection (a) who is similarly situated to the veteran or 
     other eligible individual so referred to.
       ``(b) Benefits and Assistance for Individuals Residing 
     Outside the United States.--(1) Subject to paragraph (2), the 
     Secretary may, at the Secretary's discretion, provide 
     benefits and assistance under this chapter (other than 
     benefits under section 2106 of this title) to any individual 
     otherwise eligible for such benefits and assistance who 
     resides outside the United States.
       ``(2) The Secretary may provide benefits and assistance to 
     an individual under paragraph (1) only if--
       ``(A) the country or political subdivision in which the 
     housing or residence involved is or will be located permits 
     the individual to have or acquire a beneficial property 
     interest (as determined by the Secretary) in such housing or 
     residence; and
       ``(B) the individual has or will acquire a beneficial 
     property interest (as so determined) in such housing or 
     residence.
       ``(c) Regulations.--Benefits and assistance under this 
     chapter by reason of this section shall be provided in 
     accordance with such regulations as the Secretary may 
     prescribe.''.
       (b) Conforming Amendments.--
       (1) Repeal of superseded authority.--Section 2101 of such 
     title is amended--
       (A) by striking subsection (c); and
       (B) by redesignating subsection (d) as subsection (c).
       (2) Limitations on assistance.--Section 2102 of such title 
     is amended--
       (A) in subsection (a)--
       (i) by striking ``veteran'' each place it appears and 
     inserting ``individual''; and
       (ii) in paragraph (3), by striking ``veteran's'' and 
     inserting ``individual's'';
       (B) in subsection (b)(1), by striking ``a veteran'' and 
     inserting ``an individual'';
       (C) in subsection (c)--
       (i) by striking ``a veteran'' and inserting ``an 
     individual''; and
       (ii) by striking ``the veteran'' each place it appears and 
     inserting ``the individual''; and
       (D) in subsection (d), by striking ``a veteran'' each place 
     it appears and inserting ``an individual''.
       (3) Assistance for individuals temporarily residing in 
     housing of family member.--Section 2102A of such title is 
     amended--
       (A) by striking ``veteran'' each place it appears (other 
     than in subsection (b)) and inserting ``individual'';
       (B) in subsection (a), by striking ``veteran's'' each place 
     it appears and inserting ``individual's''; and
       (C) in subsection (b), by striking ``a veteran'' each place 
     it appears and inserting ``an individual''.
       (4) Furnishing of plans and specifications.--Section 2103 
     of such title is amended by striking ``veterans'' both places 
     it appears and inserting ``individuals''.
       (5) Construction of benefits.--Section 2104 of such title 
     is amended--
       (A) in subsection (a), by striking ``veteran'' each place 
     it appears and inserting ``individual''; and
       (B) in subsection (b)--
       (i) in the first sentence, by striking ``A veteran'' and 
     inserting ``An individual'';
       (ii) in the second sentence, by striking ``a veteran'' and 
     inserting ``an individual''; and
       (iii) by striking ``such veteran'' each place it appears 
     and inserting ``such individual''.
       (6) Veterans' mortgage life insurance.--Section 2106 of 
     such title is amended--
       (A) in subsection (a)--
       (i) by striking ``any eligible veteran'' and inserting 
     ``any eligible individual''; and
       (ii) by striking ``the veterans' '' and inserting ``the 
     individual's'';
       (B) in subsection (b), by striking ``an eligible veteran'' 
     and inserting ``an eligible individual'';
       (C) in subsection (e), by striking ``an eligible veteran'' 
     and inserting ``an individual'';
       (D) in subsection (h), by striking ``each veteran'' and 
     inserting ``each individual'';
       (E) in subsection (i), by striking ``the veteran's'' each 
     place it appears and inserting ``the individual's'';
       (F) by striking ``the veteran'' each place it appears and 
     inserting ``the individual''; and
       (G) by striking ``a veteran'' each place it appears and 
     inserting ``an individual''.
       (7) Heading amendments.--(A) The heading of section 2101 of 
     such title is amended to read as follows:

     ``Sec. 2101. Acquisition and adaptation of housing: eligible 
       veterans''.

       (B) The heading of section 2102A of such title is amended 
     to read as follows:

     ``Sec. 2102A. Assistance for individuals residing temporarily 
       in housing owned by a family member''.

       (8) Clerical amendments.--The table of sections at the 
     beginning of chapter 21 of such title is amended--
       (A) by striking the item relating to section 2101 and 
     inserting the following new item:

``2101. Acquisition and adaptation of housing: eligible veterans.'';

       (B) by inserting after the item relating to section 2101, 
     as so amended, the following new item:

``2101A. Eligibility for benefits and assistance: members of the Armed 
              Forces with service-connected disabilities; individuals 
              residing outside the United States.'';

     and
       (C) by striking the item relating to section 2102A and 
     inserting the following new item:

``2102A. Assistance for individuals residing temporarily in housing 
              owned by a family member.''.

     SEC. 903. SPECIALLY ADAPTED HOUSING ASSISTANCE FOR 
                   INDIVIDUALS WITH SEVERE BURN INJURIES.

       Section 2101 of title 38, United States Code, is amended--
       (1) in subsection (a)(2), by adding at the end the 
     following new subparagraph:
       ``(E) The disability is due to a severe burn injury (as 
     determined pursuant to regulations prescribed by the 
     Secretary).''; and
       (2) in subsection (b)(2)--
       (A) by striking ``either'' and inserting ``any''; and
       (B) by adding at the end the following new subparagraph:
       ``(C) The disability is due to a severe burn injury (as so 
     determined).''.

     SEC. 904. EXTENSION OF ASSISTANCE FOR INDIVIDUALS RESIDING 
                   TEMPORARILY IN HOUSING OWNED BY A FAMILY 
                   MEMBER.

       Section 2102A(e) of title 38, United States Code, is 
     amended by striking ``after the end of the five-year period 
     that begins on the date of the enactment of the Veterans' 
     Housing Opportunity and Benefits Improvement Act of 2006'' 
     and inserting ``after December 31, 2011''.

     SEC. 905. INCREASE IN SPECIALLY ADAPTED HOUSING BENEFITS FOR 
                   DISABLED VETERANS.

       (a) In General.--Section 2102 of title 38, United States 
     Code, is amended--
       (1) in subsection (b)(2), by striking ``$10,000'' and 
     inserting ``$12,000'';
       (2) in subsection (d)--
       (A) in paragraph (1), by striking ``$50,000'' and inserting 
     ``$60,000''; and
       (B) in paragraph (2), by striking ``$10,000'' and inserting 
     ``$12,000''; and
       (3) by adding at the end the following new subsection:
       ``(e)(1) Effective on October 1 of each year (beginning in 
     2009), the Secretary shall increase the amounts described in 
     subsection (b)(2) and paragraphs (1) and (2) of subsection 
     (d) in accordance with this subsection.

[[Page S2857]]

       ``(2) The increase in amounts under paragraph (1) to take 
     effect on October 1 of a year shall be by an amount of such 
     amounts equal to the percentage by which--
       ``(A) the residential home cost-of-construction index for 
     the preceding calendar year, exceeds
       ``(B) the residential home cost-of-construction index for 
     the year preceding the year described in subparagraph (A).
       ``(3) The Secretary shall establish a residential home 
     cost-of-construction index for the purposes of this 
     subsection. The index shall reflect a uniform, national 
     average change in the cost of residential home construction, 
     determined on a calendar year basis. The Secretary may use an 
     index developed in the private sector that the Secretary 
     determines is appropriate for purposes of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2008, and shall apply with 
     respect to payments made in accordance with section 2102 of 
     title 38, United States Code, on or after that date.

     SEC. 906. REPORT ON SPECIALLY ADAPTED HOUSING FOR DISABLED 
                   INDIVIDUALS.

       (a) In General.--Not later than December 31, 2008, the 
     Secretary of Veterans Affairs shall submit to the Committee 
     on Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a report 
     that contains an assessment of the adequacy of the 
     authorities available to the Secretary under law to assist 
     eligible disabled individuals in acquiring--
       (1) suitable housing units with special fixtures or movable 
     facilities required for their disabilities, and necessary 
     land therefor;
       (2) such adaptations to their residences as are reasonably 
     necessary because of their disabilities; and
       (3) residences already adapted with special features 
     determined by the Secretary to be reasonably necessary as a 
     result of their disabilities.
       (b) Focus on Particular Disabilities.--The report required 
     by subsection (a) shall set forth a specific assessment of 
     the needs of--
       (1) veterans who have disabilities that are not described 
     in subsections (a)(2) and (b)(2) of section 2101 of title 38, 
     United States Code; and
       (2) other disabled individuals eligible for specially 
     adapted housing under chapter 21 of such title by reason of 
     section 2101A of such title (as added by section 802(a) of 
     this Act) who have disabilities that are not described in 
     such subsections.

     SEC. 907. REPORT ON SPECIALLY ADAPTED HOUSING ASSISTANCE FOR 
                   INDIVIDUALS WHO RESIDE IN HOUSING OWNED BY A 
                   FAMILY MEMBER ON PERMANENT BASIS.

       Not later than December 31, 2008, the Secretary of Veterans 
     Affairs shall submit to the Committee on Veterans' Affairs of 
     the Senate and the Committee on Veterans' Affairs of the 
     House of Representatives a report on the advisability of 
     providing assistance under section 2102A of title 38, United 
     States Code, to veterans described in subsection (a) of such 
     section, and to members of the Armed Forces covered by such 
     section 2102A by reason of section 2101A of title 38, United 
     States Code (as added by section 802(a) of this Act), who 
     reside with family members on a permanent basis.

     SEC. 908. DEFINITION OF ANNUAL INCOME FOR PURPOSES OF SECTION 
                   8 AND OTHER PUBLIC HOUSING PROGRAMS.

       Section 3(b)(4) of the United States Housing Act of 1937 
     (42 U.S.C. 1437a(3)(b)(4)) is amended by inserting ``or any 
     deferred Department of Veterans Affairs disability benefits 
     that are received in a lump sum amount or in prospective 
     monthly amounts'' before ``may not be considered''.

     SEC. 909. PAYMENT OF TRANSPORTATION OF BAGGAGE AND HOUSEHOLD 
                   EFFECTS FOR MEMBERS OF THE ARMED FORCES WHO 
                   RELOCATE DUE TO FORECLOSURE OF LEASED HOUSING.

       Section 406 of title 37, United States Code, is amended--
       (1) by redesignating subsections (k) and (l) as subsections 
     (l) and (m), respectively; and
       (2) by inserting after subsection (j) the following new 
     subsection (k):
       ``(k) A member of the armed forces who relocates from 
     leased or rental housing by reason of the foreclosure of such 
     housing is entitled to transportation of baggage and 
     household effects under subsection (b)(1) in the same manner, 
     and subject to the same conditions and limitations, as 
     similarly circumstanced members entitled to transportation of 
     baggage and household effects under that subsection.''.

                   TITLE X--CLEAN ENERGY TAX STIMULUS

     SEC. 1001. SHORT TITLE; ETC.

       (a) Short Title.--This title may be cited as the ``Clean 
     Energy Tax Stimulus Act of 2008''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

      Subtitle A--Extension of Clean Energy Production Incentives

     SEC. 1011. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY 
                   PRODUCTION TAX CREDIT.

       (a) Extension of Credit.--Each of the following provisions 
     of section 45(d) (relating to qualified facilities) is 
     amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2010'':
       (1) Paragraph (1).
       (2) Clauses (i) and (ii) of paragraph (2)(A).
       (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
       (4) Paragraph (4).
       (5) Paragraph (5).
       (6) Paragraph (6).
       (7) Paragraph (7).
       (8) Paragraph (8).
       (9) Subparagraphs (A) and (B) of paragraph (9).
       (b) Production Credit for Electricity Produced From Marine 
     Renewables.--
       (1) In general.--Paragraph (1) of section 45(c) (relating 
     to resources) is amended by striking ``and'' at the end of 
     subparagraph (G), by striking the period at the end of 
     subparagraph (H) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(I) marine and hydrokinetic renewable energy.''.
       (2) Marine renewables.--Subsection (c) of section 45 is 
     amended by adding at the end the following new paragraph:
       ``(10) Marine and hydrokinetic renewable energy.--
       ``(A) In general.--The term `marine and hydrokinetic 
     renewable energy' means energy derived from--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas,
       ``(ii) free flowing water in rivers, lakes, and streams,
       ``(iii) free flowing water in an irrigation system, canal, 
     or other man-made channel, including projects that utilize 
     nonmechanical structures to accelerate the flow of water for 
     electric power production purposes, or
       ``(iv) differentials in ocean temperature (ocean thermal 
     energy conversion).
       ``(B) Exceptions.--Such term shall not include any energy 
     which is derived from any source which utilizes a dam, 
     diversionary structure (except as provided in subparagraph 
     (A)(iii)), or impoundment for electric power production 
     purposes.''.
       (3) Definition of facility.--Subsection (d) of section 45 
     is amended by adding at the end the following new paragraph:
       ``(11) Marine and hydrokinetic renewable energy 
     facilities.--In the case of a facility producing electricity 
     from marine and hydrokinetic renewable energy, the term 
     `qualified facility' means any facility owned by the 
     taxpayer--
       ``(A) which has a nameplate capacity rating of at least 150 
     kilowatts, and
       ``(B) which is originally placed in service on or after the 
     date of the enactment of this paragraph and before January 1, 
     2010.''.
       (4) Credit rate.--Subparagraph (A) of section 45(b)(4) is 
     amended by striking ``or (9)'' and inserting ``(9), or 
     (11)''.
       (5) Coordination with small irrigation power.--Paragraph 
     (5) of section 45(d), as amended by subsection (a), is 
     amended by striking ``January 1, 2010'' and inserting ``the 
     date of the enactment of paragraph (11)''.
       (c) Sales of Electricity to Regulated Public Utilities 
     Treated as Sales to Unrelated Persons.--Section 45(e)(4) 
     (relating to related persons) is amended by adding at the end 
     the following new sentence: ``A taxpayer shall be treated as 
     selling electricity to an unrelated person if such 
     electricity is sold to a regulated public utility (as defined 
     in section 7701(a)(33).''.
       (d) Trash Facility Clarification.--Paragraph (7) of section 
     45(d) is amended--
       (1) by striking ``facility which burns'' and inserting 
     ``facility (other than a facility described in paragraph (6)) 
     which uses'', and
       (2) by striking ``combustion''.
       (e) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to property originally placed in service after December 
     31, 2008.
       (2) Modifications.--The amendments made by subsections (b) 
     and (c) shall apply to electricity produced and sold after 
     the date of the enactment of this Act, in taxable years 
     ending after such date.
       (3) Trash facility clarification.--The amendments made by 
     subsection (d) shall apply to electricity produced and sold 
     before, on, or after December 31, 2007.

     SEC. 1012. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND 
                   FUEL CELL INVESTMENT TAX CREDIT.

       (a) Extension of Credit.--
       (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) (relating to energy credit) are 
     each amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2017''.
       (2) Fuel cell property.--Subparagraph (E) of section 
     48(c)(1) (relating to qualified fuel cell property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2017''.
       (3) Qualified microturbine property.--Subparagraph (E) of 
     section 48(c)(2) (relating to qualified microturbine 
     property) is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2017''.
       (b) Allowance of Energy Credit Against Alternative Minimum 
     Tax.--Subparagraph (B) of section 38(c)(4) (relating to 
     specified credits) is amended by striking ``and'' at the end 
     of clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and'', and by adding at the end the 
     following new clause:
       ``(v) the credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48.''.
       (c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell 
     Property.--
       (1) In general.--Section 48(c)(1) (relating to qualified 
     fuel cell), as amended by subsection (a)(2), is amended by 
     striking subparagraph (B) and by redesignating subparagraphs 
     (C), (D), and (E) as subparagraphs (B), (C), and (D), 
     respectively.
       (2) Conforming amendment.--Section 48(a)(1) is amended by 
     striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' 
     and inserting ``subsection (c)(2)(B)''.
       (d) Public Electric Utility Property Taken Into Account.--

[[Page S2858]]

       (1) In general.--Paragraph (3) of section 48(a) is amended 
     by striking the second sentence thereof.
       (2) Conforming amendments.--
       (A) Paragraph (1) of section 48(c), as amended by this 
     section, is amended by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C).
       (B) Paragraph (2) of section 48(c), as amended by 
     subsection (a)(3), is amended by striking subparagraph (D) 
     and redesignating subparagraph (E) as subparagraph (D).
       (e) Effective Dates.--
       (1) Extension.--The amendments made by subsection (a) shall 
     take effect on the date of the enactment of this Act.
       (2) Allowance against alternative minimum tax.--The 
     amendments made by subsection (b) shall apply to credits 
     determined under section 46 of the Internal Revenue Code of 
     1986 in taxable years beginning after the date of the 
     enactment of this Act and to carrybacks of such credits.
       (3) Fuel cell property and public electric utility 
     property.--The amendments made by subsections (c) and (d) 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).

     SEC. 1013. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY CREDIT.

       (a) Extension.--Section 25D(g) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) No Dollar Limitation for Credit for Solar Electric 
     Property.--
       (1) In general.--Section 25D(b)(1) (relating to maximum 
     credit) is amended by striking subparagraph (A) and by 
     redesignating subparagraphs (B) and (C) as subparagraphs (A) 
     and (B), respectively.
       (2) Conforming amendments.--Section 25D(e)(4) is amended--
       (A) by striking clause (i) in subparagraph (A),
       (B) by redesignating clauses (ii) and (iii) in subparagraph 
     (A) as clauses (i) and (ii), respectively, and
       (C) by striking ``, (2),'' in subparagraph (C).
       (c) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Subsection (c) of section 25D is amended 
     to read as follows:
       ``(c) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.
       ``(2) Carryforward of unused credit.--
       ``(A) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) exceeds the limitation 
     imposed by section 26(a)(2) for such taxable year reduced by 
     the sum of the credits allowable under this subpart (other 
     than this section), such excess shall be carried to the 
     succeeding taxable year and added to the credit allowable 
     under subsection (a) for such succeeding taxable year.
       ``(B) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.''.
       (2) Conforming amendments.--
       (A) Section 23(b)(4)(B) is amended by inserting ``and 
     section 25D'' after ``this section''.
       (B) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, and 25D''.
       (C) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23 and 25D''.
       (D) Section 26(a)(1) is amended by striking ``and 25B'' and 
     inserting ``25B, and 25D''.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2007.
       (2) Application of egtrra sunset.--The amendments made by 
     subparagraphs (A) and (B) of subsection (c)(2) shall be 
     subject to title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 in the same manner as the 
     provisions of such Act to which such amendments relate.

     SEC. 1014. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Extension.--Section 54(m) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) Increase in National Limitation.--Section 54(f) 
     (relating to limitation on amount of bonds designated) is 
     amended--
       (1) by inserting ``, and for the period beginning after the 
     date of the enactment of the Clean Energy Tax Stimulus Act of 
     2008 and ending before January 1, 2010, $400,000,000'' after 
     ``$1,200,000,000'' in paragraph (1),
       (2) by striking ``$750,000,000 of the'' in paragraph (2) 
     and inserting ``$750,000,000 of the $1,200,000,000'', and
       (3) by striking ``bodies'' in paragraph (2) and inserting 
     ``bodies, and except that the Secretary may not allocate more 
     than \1/3\ of the $400,000,000 national clean renewable 
     energy bond limitation to finance qualified projects of 
     qualified borrowers which are public power providers nor more 
     than \1/3\ of such limitation to finance qualified projects 
     of qualified borrowers which are mutual or cooperative 
     electric companies described in section 501(c)(12) or section 
     1381(a)(2)(C)''.
       (c) Public Power Providers Defined.--Section 54(j) is 
     amended--
       (1) by adding at the end the following new paragraph:
       ``(6) Public power provider.--The term `public power 
     provider' means a State utility with a service obligation, as 
     such terms are defined in section 217 of the Federal Power 
     Act (as in effect on the date of the enactment of this 
     paragraph).'', and
       (2) by inserting ``; Public Power Provider'' before the 
     period at the end of the heading.
       (d) Technical Amendment.--The third sentence of section 
     54(e)(2) is amended by striking ``subsection (l)(6)'' and 
     inserting ``subsection (l)(5)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 1015. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC 
                   RESTRUCTURING POLICY.

       (a) Qualifying Electric Transmission Transaction.--
       (1) In general.--Section 451(i)(3) (defining qualifying 
     electric transmission transaction) is amended by striking 
     ``January 1, 2008'' and inserting ``January 1, 2010''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to transactions after December 31, 2007.
       (b) Independent Transmission Company.--
       (1) In general.--Section 451(i)(4)(B)(ii) (defining 
     independent transmission company) is amended by striking 
     ``December 31, 2007'' and inserting ``the date which is 2 
     years after the date of such transaction''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendments made by 
     section 909 of the American Jobs Creation Act of 2004.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

     SEC. 1021. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY 
                   EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

       (a) Extension of Credit.--Section 25C(g) (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2009''.
       (b) Qualified Biomass Fuel Property.--
       (1) In general.--Section 25C(d)(3) is amended--
       (A) by striking ``and'' at the end of subparagraph (D),
       (B) by striking the period at the end of subparagraph (E) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(F) a stove which uses the burning of biomass fuel to 
     heat a dwelling unit located in the United States and used as 
     a residence by the taxpayer, or to heat water for use in such 
     a dwelling unit, and which has a thermal efficiency rating of 
     at least 75 percent.''.
       (2) Biomass fuel.--Section 25C(d) (relating to residential 
     energy property expenditures) is amended by adding at the end 
     the following new paragraph:
       ``(6) Biomass fuel.--The term `biomass fuel' means any 
     plant-derived fuel available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     waste and residues (including wood pellets), plants 
     (including aquatic plants), grasses, residues, and fibers.''.
       (c) Modifications of Standards for Energy-Efficient 
     Building Property.--
       (1) Electric heat pumps.--Subparagraph (B) of section 
     25C(d)(3) is amended to read as follows:
       ``(A) an electric heat pump which achieves the highest 
     efficiency tier established by the Consortium for Energy 
     Efficiency, as in effect on January 1, 2008.''.
       (2) Central air conditioners.--Section 25C(d)(3)(D) is 
     amended by striking ``2006'' and inserting ``2008''.
       (3) Water heaters.--Subparagraph (E) of section 25C(d) is 
     amended to read as follows:
       ``(E) a natural gas, propane, or oil water heater which has 
     either an energy factor of at least 0.80 or a thermal 
     efficiency of at least 90 percent.''.
       (4) Oil furnaces and hot water boilers.--Paragraph (4) of 
     section 25C(d) is amended to read as follows:
       ``(4) Qualified natural gas, propane, and oil furnaces and 
     hot water boilers.--
       ``(A) Qualified natural gas furnace.--The term `qualified 
     natural gas furnace' means any natural gas furnace which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 95.
       ``(B) Qualified natural gas hot water boiler.--The term 
     `qualified natural gas hot water boiler' means any natural 
     gas hot water boiler which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(C) Qualified propane furnace.--The term `qualified 
     propane furnace' means any propane furnace which achieves an 
     annual fuel utilization efficiency rate of not less than 95.
       ``(D) Qualified propane hot water boiler.--The term 
     `qualified propane hot water boiler' means any propane hot 
     water boiler which achieves an annual fuel utilization 
     efficiency rate of not less than 90.
       ``(E) Qualified oil furnaces.--The term `qualified oil 
     furnace' means any oil furnace which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(F) Qualified oil hot water boiler.--The term `qualified 
     oil hot water boiler' means any

[[Page S2859]]

     oil hot water boiler which achieves an annual fuel 
     utilization efficiency rate of not less than 90.''.
       (d) Effective Date.--The amendments made this section shall 
     apply to expenditures made after December 31, 2007.

     SEC. 1022. EXTENSION AND MODIFICATION OF TAX CREDIT FOR 
                   ENERGY EFFICIENT NEW HOMES.

       (a) Extension of Credit.--Subsection (g) of section 45L 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2010''.
       (b) Allowance for Contractor's Personal Residence.--
     Subparagraph (B) of section 45L(a)(1) is amended to read as 
     follows:
       ``(B)(i) acquired by a person from such eligible contractor 
     and used by any person as a residence during the taxable 
     year, or
       ``(ii) used by such eligible contractor as a residence 
     during the taxable year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to homes acquired after December 31, 2008.

     SEC. 1023. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT 
                   COMMERCIAL BUILDINGS DEDUCTION.

       (a) Extension.--Section 179D(h) (relating to termination) 
     is amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) Adjustment of Maximum Deduction Amount.--
       (1) In general.--Subparagraph (A) of section 179D(b)(1) 
     (relating to maximum amount of deduction) is amended by 
     striking ``$1.80'' and inserting ``$2.25''.
       (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
     amended--
       (A) by striking ``$.60'' and inserting ``$0.75'', and
       (B) by striking ``$1.80'' and inserting ``$2.25''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 1024. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT 
                   APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER 
                   2007.

       (a) In General.--Subsection (b) of section 45M (relating to 
     applicable amount) is amended to read as follows:
       ``(b) Applicable Amount.--For purposes of subsection (a)--
       ``(1) Dishwashers.--The applicable amount is--
       ``(A) $45 in the case of a dishwasher which is manufactured 
     in calendar year 2008 or 2009 and which uses no more than 324 
     kilowatt hours per year and 5.8 gallons per cycle, and
       ``(B) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2008, 2009, or 2010 and which uses no more 
     than 307 kilowatt hours per year and 5.0 gallons per cycle 
     (5.5 gallons per cycle for dishwashers designed for greater 
     than 12 place settings).
       ``(2) Clothes washers.--The applicable amount is--
       ``(A) $75 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 which meets or 
     exceeds a 1.72 modified energy factor and does not exceed a 
     8.0 water consumption factor,
       ``(B) $125 in the case of a residential top-loading clothes 
     washer manufactured in calendar year 2008 or 2009 which meets 
     or exceeds a 1.8 modified energy factor and does not exceed a 
     7.5 water consumption factor,
       ``(C) $150 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.0 modified energy factor and 
     does not exceed a 6.0 water consumption factor, and
       ``(D) $250 in the case of a residential or commercial 
     clothes washer manufactured in calendar year 2008, 2009, or 
     2010 which meets or exceeds 2.2 modified energy factor and 
     does not exceed a 4.5 water consumption factor.
       ``(3) Refrigerators.--The applicable amount is--
       ``(A) $50 in the case of a refrigerator which is 
     manufactured in calendar year 2008, and consumes at least 20 
     percent but not more than 22.9 percent less kilowatt hours 
     per year than the 2001 energy conservation standards,
       ``(B) $75 in the case of a refrigerator which is 
     manufactured in calendar year 2008 or 2009, and consumes at 
     least 23 percent but no more than 24.9 percent less kilowatt 
     hours per year than the 2001 energy conservation standards,
       ``(C) $100 in the case of a refrigerator which is 
     manufactured in calendar year 2008, 2009, or 2010, and 
     consumes at least 25 percent but not more than 29.9 percent 
     less kilowatt hours per year than the 2001 energy 
     conservation standards, and
       ``(D) $200 in the case of a refrigerator manufactured in 
     calendar year 2008, 2009, or 2010 and which consumes at least 
     30 percent less energy than the 2001 energy conservation 
     standards.''.
       (b) Eligible Production.--
       (1) Similar treatment for all appliances.--Subsection (c) 
     of section 45M (relating to eligible production) is amended--
       (A) by striking paragraph (2),
       (B) by striking ``(1) In general'' and all that follows 
     through ``the eligible'' and inserting ``The eligible'', and
       (C) by moving the text of such subsection in line with the 
     subsection heading and redesignating subparagraphs (A) and 
     (B) as paragraphs (1) and (2), respectively.
       (2) Modification of base period.--Paragraph (2) of section 
     45M(c), as amended by paragraph (1) of this section, is 
     amended by striking ``3-calendar year'' and inserting ``2-
     calendar year''.
       (c) Types of Energy Efficient Appliances.--Subsection (d) 
     of section 45M (defining types of energy efficient 
     appliances) is amended to read as follows:
       ``(d) Types of Energy Efficient Appliance.--For purposes of 
     this section, the types of energy efficient appliances are--
       ``(1) dishwashers described in subsection (b)(1),
       ``(2) clothes washers described in subsection (b)(2), and
       ``(3) refrigerators described in subsection (b)(3).''.
       (d) Aggregate Credit Amount Allowed.--
       (1) Increase in limit.--Paragraph (1) of section 45M(e) 
     (relating to aggregate credit amount allowed) is amended to 
     read as follows:
       ``(1) Aggregate credit amount allowed.--The aggregate 
     amount of credit allowed under subsection (a) with respect to 
     a taxpayer for any taxable year shall not exceed $75,000,000 
     reduced by the amount of the credit allowed under subsection 
     (a) to the taxpayer (or any predecessor) for all prior 
     taxable years beginning after December 31, 2007.''.
       (2) Exception for certain refrigerator and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended to read 
     as follows:
       ``(2) Amount allowed for certain refrigerators and clothes 
     washers.--Refrigerators described in subsection (b)(3)(D) and 
     clothes washers described in subsection (b)(2)(D) shall not 
     be taken into account under paragraph (1).''.
       (e) Qualified Energy Efficient Appliances.--
       (1) In general.--Paragraph (1) of section 45M(f) (defining 
     qualified energy efficient appliance) is amended to read as 
     follows:
       ``(1) Qualified energy efficient appliance.--The term 
     `qualified energy efficient appliance' means--
       ``(A) any dishwasher described in subsection (b)(1),
       ``(B) any clothes washer described in subsection (b)(2), 
     and
       ``(C) any refrigerator described in subsection (b)(3).''.
       (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
     washer) is amended by inserting ``commercial'' before 
     ``residential'' the second place it appears.
       (3) Top-loading clothes washer.--Subsection (f) of section 
     45M (relating to definitions) is amended by redesignating 
     paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), 
     (7), and (8), respectively, and by inserting after paragraph 
     (3) the following new paragraph:
       ``(4) Top-loading clothes washer.--The term `top-loading 
     clothes washer' means a clothes washer which has the clothes 
     container compartment access located on the top of the 
     machine and which operates on a vertical axis.''.
       (4) Replacement of energy factor.--Section 45M(f)(6), as 
     redesignated by paragraph (3), is amended to read as follows:
       ``(6) Modified energy factor.--The term `modified energy 
     factor' means the modified energy factor established by the 
     Department of Energy for compliance with the Federal energy 
     conservation standard.''.
       (5) Gallons per cycle; water consumption factor.--Section 
     45M(f) (relating to definitions), as amended by paragraph 
     (3), is amended by adding at the end the following:
       ``(9) Gallons per cycle.--The term `gallons per cycle' 
     means, with respect to a dishwasher, the amount of water, 
     expressed in gallons, required to complete a normal cycle of 
     a dishwasher.
       ``(10) Water consumption factor.--The term `water 
     consumption factor' means, with respect to a clothes washer, 
     the quotient of the total weighted per-cycle water 
     consumption divided by the cubic foot (or liter) capacity of 
     the clothes washer.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

                     TITLE XI--SENSE OF THE SENATE

     SEC. 1101. SENSE OF THE SENATE.

       It is the sense of the Senate that in implementing or 
     carrying out any provision of this Act, or any amendment made 
     by this Act, the Senate supports a policy of noninterference 
     regarding local government requirements that the holder of a 
     foreclosed property maintain that property.

       Amend the title so as to read: ``An Act to provide needed 
     housing reform and for other purposes.''.


                           Amendment No. 4523

  The PRESIDING OFFICER. Under the previous order, the amendment to the 
title is agreed to.
  The amendment (No. 4523) was agreed to, as follows:
        Amend the title so as to read:
       To provide needed housing reform and for other purposes.

  Mr. DODD. Mr. President, I ask unanimous consent that the Senator 
from Alabama and myself be recognized for 20 minutes, 10 minutes 
apiece, to make some closing comments.
  The PRESIDING OFFICER. Is there objection? Hearing no objection it is 
so ordered, and the Senator is recognized.
  Mr. DODD. Mr. President, before I make those remarks, and I have 
checked with the Parliamentarians, I would be remiss if I didn't 
recognize a former colleague, Senator John Glenn, who is here on the 
floor of the Senate.
  Senator Glenn, welcome to the Senate. Nice to have you back.
  Mr. President, if I may, this morning, I think we have adopted a very 
good piece of legislation, one that is going to take a significant step 
in dealing with the present housing crisis in our country. As I have 
repeated on numerous occasions over the last number of

[[Page S2860]]

weeks on the Senate floor, almost 8,000 people every single day are 
facing foreclosure. That is a staggering number of people, and in a 
given week's time that would fill most any college or professional 
sports stadium.
  Eight thousand people every day run the risk of losing their most 
important asset outside of their beloved family members. The greatest 
accumulation of wealth for most people is their home. It may mean for 
them, in their future, providing for a secure retirement, dealing with 
college education, providing for the unforeseen crisis that can occur 
where that equity in a home can make all the difference in the world, 
not to mention what a stabilizing influence it has for a family, a 
neighborhood, or a community. Home ownership. All of that is at risk 
for too many of our fellow citizenry.
  Over these last many days, the Senator from Alabama and I and others 
have tried not to solve every problem in that area but to take a major 
step forward in addressing the issue of foreclosure, the housing 
crisis, and the economic problems we face. I think we have done that 
with this bill. This legislation includes the original ideas we were 
able to work out a week or so ago dealing with FHA modernization, 
dealing with disclosure, dealing with mortgage revenue bonds, and 
dealing with the idea of providing some tax relief for people who are 
willing to move in and occupy foreclosed properties, which provides 
assistance to communities that would otherwise lose as a result of 
having dilapidated and boarded-up properties in their midst. And there 
were a number of other provisions, including counseling services and 
the like, included in that core piece of legislation.
  But over the past week, a little less than a week, we have added a 
number of other provisions to this bill at the behest of our 
colleagues, working with both the chairman and the ranking member of 
the Finance Committee as well as members of the Banking Committee and 
those who are interested in this legislation. The underlying bill and 
the important provisions in it contained many good increases in support 
for various things we need to accomplish.
  In addition, the managers' package, which was adopted last evening, 
accommodates 16 different amendments, Mr. President. These amendments 
help veterans meet their housing needs. We actually increased some 
counseling funds that Senator Murray and Senator Mikulski and Senator 
Schumer were interested in. We improved coordination at counseling 
agencies. We were able to accommodate a number of Senators on both 
sides of the aisle.
  I particularly want to express my gratitude to Senator Salazar for 
his amendment, Senator Boxer, Senator Carper, and Senator McCaskill, 
who offered some very good ideas. I mentioned Senator Murray and 
Senator Mikulski, Senator Leahy, Senator Johnson, Senator Crapo, along 
with Senators Harkin and Sanders and Pryor, and Senator Ensign, Senator 
Brownback, Senator Gregg, Senator DeMint, and Senator Cornyn, who all 
offered ideas which we were able to accommodate.
  Members of both sides had a lot of very good ideas which strengthen 
this bill. So we are very grateful for their participation and 
involvement in allowing us to come to where we are today.
  I should have actually begun my remarks by thanking the majority 
leader. Senator Reid made this possible. When I talked with Senator 
Reid about a week and a half, 2 weeks ago, after having a conversation 
with Senator Shelby and other members of the Banking Committee, we 
believed we could come forward with a core group of ideas and offer our 
colleagues the opportunity to begin to move on this housing crisis. 
Senator Reid approached the Republican leader, Senator McConnell, and 
as a result of their leadership, they provided this opportunity, 
resulting in where we have arrived today, coming to this accommodation. 
So Senator Reid and his staff deserve, along with Senator McConnell, a 
very special thanks for making it possible for us to achieve what we 
have.
  Let me say very quickly that this bill is called the Foreclosure 
Prevention Act. Quite candidly, what we have done doesn't quite live up 
to the title. We have more work to do. We don't do enough, in my view, 
in preventing more foreclosures in the country. We do some things but 
not enough. But I would say to my colleagues who are concerned, we are 
not done yet. There is more work that needs to be done.

  In fact, this morning, Senator Shelby and I and the committee were 
having a hearing on how to deal with additional foreclosures in the 
country. We have more work to do--another hearing next week. We have to 
deal with the Government-sponsored enterprise legislation, we have 
flood insurance to deal with, and a number of other issues that require 
our attention, and our intention is to work on those issues. So more 
work needs to be done, but at this juncture we believe we have 
presented a good package.
  Mr. President, Congressman Barney Frank, the chairman of the House 
Financial Services Committee, is holding hearings this very morning, as 
he has over the last day or so, on these issues. My hope is we can get 
quickly to a conference with the other body on this package and come 
back with a compromise that is as strong as the one we are sending out 
for consideration.
  Again, I thank Senator Shelby, my friend and colleague from Alabama. 
We have worked closely together over the years on the Banking 
Committee. I served under his chairmanship of the committee where he 
had good strong leadership and offered some very strong ideas that were 
adopted by the Congress of the United States. The tide has turned. I am 
now chairman. But I have a good partner in Senator Shelby and his staff 
in helping us work through these issues.
  I mentioned Senator Harry Reid, the majority leader, Senator 
McConnell, and their staffs for their work as well on this legislation, 
but we don't often thank or mention the names of the people who do all 
of the late work, who stay up all night drafting and arguing, 
disagreeing and debating on what to include in these packages.
  So I want to thank, particularly in the leadership area, Gary Myrick, 
Randy Devalk, Lula Davis, who has been terrific with the floor staff--
absolutely wonderful in the last several days--Tim Mitchell, Mark 
Wetjen on Leader Reid's staff, and Rohit Kumar and Dave Schiappa on the 
minority leader's staff. Dave, we thank you for your support and help 
in all of this. On Senator Shelby's staff, Bill Duhnke, Mark Oesterle, 
Shannon Hines, Mark Calabria, and Jim Johnson all were helpful. And I 
want to acknowledge all the positive efforts of my staff: Shawn Maher, 
the staff director of the Banking Committee; Jonathan Miller, Jenn 
Fogel-Bublick, Amy Friend, Julie Chon, Lynsey Graham Rea, and Drew 
Colbert. These are all people--and there are others as well on these 
committees--who do a lot of good, hard work, and we thank them.
  Again, Mr. President, before the close of business, another 8,000 
people may file for foreclosure in this country, so we have work yet to 
be done in this area, but this bill is a major, positive step in the 
right direction. There are provisions that, frankly, I am not as 
enthusiastic about, but they were consensus provisions added to this 
legislation. There are many provisions that I think take us exactly in 
the right direction in minimizing the impact of what is occurring in 
our country and allowing us to get back on our feet, again restoring 
confidence and optimism in the housing market, and for that I am very 
grateful to all who have participated in allowing us to arrive at this 
point.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Tester). The Senator from Alabama.
  Mr. SHELBY. Mr. President, I thank Senator Dodd for all of his 
cooperation and his leadership on the Banking Committee and on the 
Senate floor, and I want to associate myself with his remarks, thanking 
the staff of the Senate and also the staff of the Banking Committee, 
including my staff and his. It is good to work together where we can in 
the Senate. And when we do, we get a lot of work done.
  Mr. President, when crises such as the one we are now facing come 
about, the American people expect us in the Senate to act in an 
expeditious and an appropriate manner. I think this is what we have 
been doing the last couple of weeks. Senator Dodd and I, at the 
direction of our respective leaders,

[[Page S2861]]

Senator Reid, the majority leader, and Senator McConnell, the 
Republican leader, have invested a considerable amount of time in 
drafting a bipartisan and balanced piece of legislation that is focused 
on addressing the growing number of foreclosures nationwide, which 
Senator Dodd just mentioned.
  In an effort to maintain that balance and to preserve our bipartisan 
agreement, we were not able to agree to a number of amendments, some of 
which I believe have a great deal of merit, and I want to touch on 
some. It is my hope that Senator Dodd and I can continue to work 
closely on a number of those, such as the need for meaningful GSE 
reform, as well as a mortgage broker and banker licensing bill.
  Senator Hagel introduced an amendment on GSE reform that I believe 
may represent the foundation for a very promising approach to 
addressing a very complex but critical set of issues. I stand ready to 
work with Senator Dodd at any time to reach an agreement on meaningful 
GSE reform.
  Senators Feinstein and Martinez introduced an amendment on mortgage 
broker and banker licensing that I hope also lays the foundation for 
further action by the Banking Committee, headed by Senator Dodd.
  There are other provisions that are not in this bill and that I could 
not support. These included the bankruptcy provision, or so-called 
cram-down, as well as an unprecedented expansion of the FHA guarantee 
to hundreds of thousands of homeowners who find themselves underwater 
on their mortgages and stretched beyond their means.
  Mr. President, when we began consideration of this bill, I said the 
following:

       While we are in agreement on the measures contained in this 
     bill, there is a line that we should not cross. That line is 
     represented by a taxpayer-funded bailout of investors or 
     homeowners that freely and willingly entered into mortgages 
     that they knew or should have known they could not afford.

  With that in mind, I intend to examine closely any proposals to 
further expose the American taxpayer to the risks freely incurred by 
individuals or investors. I understand that Chairman Dodd intends to 
hold additional hearings on just such a proposal. I intend to work 
closely with him to ensure that all facets of this approach are 
examined thoroughly before we expose those who made prudent financial 
choices to the risks created by those who didn't.
  First and foremost, I believe our primary responsibility is to the 
American taxpayer. In our zeal to help those who find themselves in 
financial difficulty, we must make sure that we do not do more harm 
than good. This bill does include a number of provisions that deserved 
my colleagues' support, and that they supported. The bill makes the 
necessary changes in the FHA program so that it can meet the needs of 
today's mortgage marketplace. The FHA language provides protections for 
the American taxpayer, who ultimately bears the financial risk of the 
program. The FHA title provides immediate help to the marketplace by 
reforming the Federal Housing Administration, allowing it to provide 
greater liquidity and thereby enhancing the options available to 
America's homeowners.
  The bill also provides additional funding for foreclosure prevention 
counseling--Senator Dodd has spoken on this--which will help homeowners 
stay current on their mortgages and be able to remain in their homes. 
That is our goal. This is an area in which I hope to work closely with 
Senator Dodd over the coming year. I believe we must conduct thorough 
oversight to ensure that this money is being spent properly and 
effectively. Should additional funds be necessary, I believe they can 
be provided during the normal appropriations process.
  In order to prevent a repeat of the current housing crisis, the bill 
also increases the disclosures made to consumers obtaining mortgages, 
which I think is very important. I believe giving consumers more 
information so they understand what they are doing and the ability to 
understand the choices they are making will help them avoid making the 
pitfalls and bad decisions many uninformed consumers made in the past.
  To protect our soldiers, sailors, and airmen, the bill extends 
additional consumer protections and provides those returning from 
combat a chance to get back on their feet before they face any type of 
foreclosure proceeding.
  Mr. President, in an effort to provide communities with the ability 
to clean up the damage caused by the foreclosures that have already 
occurred, we have included funding to allow States and communities to 
buy up and repair foreclosed residences through the Community 
Development Block Grant Program.
  Attached to this funding is a requirement that any profits from the 
sale of properties must be used to buy and repair additional 
properties. I believe that reuse of this funding in this manner will 
maximize the impact of these dollars and minimize the possibility that 
funds will be wasted or profits inappropriately pocketed.
  The bill also contains a number of tax-related provisions prepared in 
a bipartisan fashion by the chairman and ranking member on the Finance 
Committee.
  Mr. President, this bill also includes a managers' package that 
contains a broad range of provisions offered by 13 separate Senators. 
Chairman Dodd and I worked closely to come to agreement on including 
this group of provisions that, I believe, strengthens the core bill.
  The first group of provisions touch upon a number of veterans and 
military service personnel housing programs. These measures provide 
greater resources, flexibility, and options for veterans and military 
personnel to help meet the particular challenges they face in regards 
to their housing needs.
  The managers' package puts to greater use assets in the Home Loan 
Bank system to help bring additional resources to the effort to deal 
with current conditions in the housing market.
  The package includes additional consumer protections for senior 
citizens who participate in the FHA-insured reverse mortgage program. 
The package requires enhanced scrutiny of loan originators 
participating in the FHA program, which should better protect the 
solvency of the taxpayer backed mortgage insurance fund.
  The package also ensures that funds are not used to provide 
inappropriate benefits to private entities by prohibiting the use of 
funds in cases where eminent domain is used to benefit private parties.
  Finally, the managers' amendment protects taxpayers by requiring that 
any profits made from the sale of rehabilitated homes that are not 
reinvested in the program are recaptured and returned to the Treasury.
  Mr. President, I believe this is a focused and targeted piece of 
legislation that will address in an appropriate manner a number of the 
difficulties we are now facing in the housing market.
  While there are a large and growing number of homes entering 
foreclosure, we must remember that the vast majority of homeowners are 
living within their means and making their mortgage payments.
  While some would argue that we have a responsibility to aid those who 
find themselves under water on their mortgages or unable to afford 
their increasing payments, I would argue that we also have equal 
responsibility to those who have made prudent financial decisions. We 
must not forget them as we seek to help others.
  Mr. President, the eve of an election year can be a very difficult 
time to reach consensus on just about anything.
  When we are able to come together, it is incumbent upon us to seize 
that opportunity and move forward.
  Mr. President, I think this is a good bill overall, and I was pleased 
to see the vote of the Senate just a few minutes ago.
  I yield the floor.
  Mr. DODD. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BINGAMAN. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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