[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
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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
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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.
[[Page S2845]]
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.
____________________