[Congressional Record Volume 154, Number 76 (Thursday, May 8, 2008)]
[Extensions of Remarks]
[Page E864]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SUPPORTING SOLUTIONS TO THE HOUSING CRISIS

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                         Thursday, May 8, 2008

  Mr. STARK. Madam Speaker, I rise today to support two important 
pieces of legislation that will both keep families in their homes, and 
increase the supply of affordable housing.
  After years of lax regulatory oversight driven by the discredited 
ideology of the Bush administration and a rubber-stamp Republican 
Congress, our Nation is faced with a housing crisis. Sub-prime loans, 
once the darlings of Wall Street, are now adjusting upward and millions 
of families have lost their homes or are facing foreclosure. In just 
the first 3 months of 2008, over 113,000 foreclosure notices have gone 
out to families in California. President Bush has responded by 
providing a $30 billion bailout to Bear-Stearns, a major cause of the 
mess in the first place. Today, the Democratic-led Congress is 
proposing a real solution that will assist real families, and all the 
President has offered is a veto threat.
  I support both the Neighborhood Stabilization Act (H.R. 5818) and the 
Foreclosure Prevention Act (H.R. 3221). Together, they offer a 
comprehensive approach that will protect families, stabilize home 
prices, and expand affordable housing options around the Nation.
  This legislation will allow homeowners trapped in untenable mortgages 
to refinance into FHA-backed mortgages. Lenders and borrowers must each 
take responsibility by lowering the outstanding principal, and 
demonstrating an ability to repay, respectively. Requiring borrowers to 
provide a portion of resale profits to the government further lessens 
taxpayer exposure. The legislation also provides loans and grants to 
states to acquire foreclosed properties and turn them into affordable 
units for both sale and rent. Finally, this bill includes tax 
provisions aimed at assisting first-time homebuyers, easing the burden 
of property tax bills, and expanding financing of low-income housing 
projects.
  Just as important is what this legislation does not do. Unlike the 
bill passed by the Senate, these bills do not provide irresponsible and 
unnecessary tax breaks to homebuilders, nor do they include a tax 
incentive to purchase foreclosed properties that would likely increase 
the number of foreclosures.
  I urge all my colleagues to support both bills before us today, and 
vote for policies that will stem the tide of foreclosures and provide 
real help to struggling families. If the Federal Government can provide 
a handout to Wall Street, we can certainly offer a hand up to families.

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