[Congressional Record Volume 158, Number 22 (Thursday, February 9, 2012)]
[Senate]
[Pages S496-S497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. HELLER:
S. 2080. A bill to authorize depository institutions, depository
institution holding companies, Fannie Mae, and Freddie Mac to lease
foreclosed property held by such entities for up to 5 years, and for
other purposes; to the Committee on Banking, Housing, and Urban
Affairs.
Mr. HELLER. Mr. President, when our Nation's economy was thriving,
Nevada was at the heart of the construction boom. Buildings and homes
were going up across the State. Neighborhoods were growing, schools
were being built at record rates, and the construction industry was
flourishing. All of this activity drove investments into other areas of
the economy, and for many life was good in Nevada. But when the crisis
hit, the highs that my State experienced were matched by the lows that
followed.
Nevada now leads the Nation in unemployment with more than 160,000
Nevadans looking for a job. Many can no longer afford their homes.
Nevadans are being forced into bankruptcy and facing foreclosure. While
Nevada is home to some of the most resilient, hard-working people in
the country, almost one-quarter of Nevadans are so frustrated that they
have simply given up hope for better employment.
Much of the difficulty Nevadans are experiencing can be traced back
to the crisis in my State. The ill effects of the depressed housing
market are widespread. High rates of foreclosures are devastating to
families, neighborhoods, and entire communities. Families who have been
foreclosed upon are already having a hard time paying their bills. Add
to those difficulties the time spent finding a new place and the costs
of moving and their problems are compounded. Time spent fighting the
bank to avoid foreclosure and relocating would likely be better used to
find a job or better paying employment.
One of the biggest problems distressed home owners are facing is the
programs that have been put into place to help keep people in their
homes that have not lived up to expectations. My office spends a great
deal of time with Nevadans on the cusp of losing their homes, looking
for help, and trying to keep families in their homes. It is truly heart
wrenching to hear some of these stories. These homeowners do not want
to foreclose, and obviously they do not want to lose their homes.
I recently received this e-mail from a constituent in Reno who is
fighting to keep their home. I would like to share that with you.
We hoped for a win-win situation but in the end all we got
was a nightmare in which everyone loses: my sister and I
obviously lose, our neighborhood loses as another house sits
vacant with a rusting metal sign in the front, our State
loses as the housing plight increases again, the bank loses
because they lose a customer who just needed another chance
and, most importantly, democracy loses as the plutocrats roll
over another family.
When families move, their children often have to change schools. So
now not only are children forced to move from their homes, they are
also leaving behind their schools and their neighborhoods. This kind of
destabilization is harmful for families who are already struggling.
Consider the effects of foreclosures on neighborhoods and
communities. The widespread availability of housing is flooding the
real estate inventory in Nevada. This is forcing down home values and
making it difficult for other people to sell their homes as well. In
February 2006 the average home in Nevada was valued at $309,000. Today
the home values have dropped to $120,000.
Homes left vacant and uncared for can quickly become an eyesore,
pushing low home values even lower. This means others in the
neighborhood can have a difficult time selling their homes if they want
to move. If they find a better job elsewhere, for example, they may not
be able to take it because they cannot sell their homes for a
reasonable price, if they are able to sell them at all.
Today I am introducing legislation to help reverse these
destabilizing forces. The bill I am introducing today, the Keeping
Families in their Home Act, will help address large unsold housing
inventories and give families a chance to stay in their homes. This
bill would allow banks, Fannie Mae and Freddie Mac, to enter into long-
term leases, including an option to purchase properties acquired
through foreclosure with the prior homeowner or any individual.
By providing an opportunity for the homeowner to stay in their home,
the bank is giving families a chance to regain sound financial footing.
This commonsense solution helps provide some much needed stability is
available for all families.
While I believe this bill is a good step in the right direction, let
me be clear: much more needs to be done to help the housing problems
facing Nevada. The programs already in place simply have not done
enough and have not lived up to expectations.
I was pleased to see reports of growth in our economy, but people in
my State continue to suffer. Back home Nevadans still believe there are
no jobs. Small businesses are trying to survive while gridlock in
Washington is making it harder for employers to know what is expected
in the coming year. Crushing regulations are bringing Nevada's growth
industries to a halt. In order for Nevada to experience real long-term
recovery, Washington needs to fundamentally change the way it works.
Congress needs to stop overspending. Republicans and Democrats should
come together to close unfair loopholes and make the Tax Code easier
for businesses to understand and to follow. This bill is just one
solution to help turn around this housing crisis. It is also an idea
that both Republicans and Democrats can support.
I look forward to working with my colleagues to pass this bill and
others into law so that we can help families dealing with foreclosures
across the country. As I have said before, moving forward I welcome any
and all ideas on how to fix the housing crisis in this country.
Nevadans cannot afford to wait any longer.
In the meantime, I urge my colleagues to seriously consider
supporting this bill. This legislation can go a long way toward helping
families, stabilizing neighborhoods, and stem
[[Page S497]]
any further reduction in home prices. I hope Senators will join me in
this endeavor so the President can sign this bill into law and help
families who badly need it.
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