Governor Perdue Announces Nearly $37 Million in Grant Awards

Governor Sonny Perdue today announced Georgia has been awarded nearly $37 million in federal grants from the U. S. Department of Housing and Urban Development (HUD) for the state’s Community Development Block Grant Program (CDBG) and Community HOME Investment Program (CHIP).

“The Community Development Block Grant program provides an essential financial resource to Georgia’s smaller communities in their efforts to fund projects that will assist low- and moderate-income citizens,” said Governor Perdue. “As communities large and small are making tough spending choices, today’s grant announcement represents an important funding source for programs that improve quality of life, economic development and job creation programs.”

Nearly $32.6 million allocated for CDBG awards will be used to support projects in 65 Georgia communities. Projects include water and sewer improvements, senior citizen facilities, health facilities, programs for at-risk children and replacement or rehabilitation of sub-standard and dilapidated housing. A complete list of projects and award amounts is included at the end of the news release.

The CDBG program is administered by the Georgia Department of Community Affairs (DCA), which uses funds allocated through HUD to support local initiatives that focus on improving living conditions and economic opportunities throughout the state.

Governor Perdue also announced that Georgia was awarded nearly $4.4 million in Community HOME Investment Program funds. CHIP funds will assist 15 Georgia communities increase the supply of safe and affordable housing for low- and moderate-income persons.

“CHIP funds remain an essential resource for those communities that seek to increase available units and improve the standard of living for their fellow Georgians,” said Governor Perdue.
Added DCA Commissioner Mike Beatty: “We are pleased that these funds will be used to fund critical community development projects. Each year, the annual CDBG and CHIP funding announcement demonstrates how federal, state and local partners are working together to support local communities.”

For more information regarding Georgia’s CDBG and CHIP programs, please visit DCA’s website at http://www.dca.ga.gov/communities/CDBG/programs/CDBGCHIP.asp or contact DCA Assistant Commissioner Brian Williamson at (404) 679-1587 or brian.williamson@dca.ga.gov. In addition, an informational workshop for CDBG and CHIP recipient communities is scheduled for Sept. 24-25 in Pine Mountain. Recipient communities may direct workshop-related questions to Lisa Smith at (404) 679-5276 or lisa.smith@dca.ga.gov .

A complete listing of CDBG and CHIP awards follows. Communities are listed in alphabetical order.

Community Development Block Grant Awards

Recipient, Project Description, Planned Amount
City of Alma, Sewer Improvements, $500,000
City of Arabi , Water Improvements, $468,144
City of Argyle, Water Improvements, $475,118
City of Ashburn, Multi Infrastructure Improvements, $500,000
Atkinson County, Health Center, $458,875
City of Baconton, Drainage Improvements, $499,964
Berrien County, Boys and Girls Club, $500,000
City of Blakely, Head Start Facility, $500,000
City of Boston, Sewer Improvements, $500,000
City of Canon, Water Improvements, $500,000
City of Carrollton, Health Center, $500,000
City of Cartersville, Drainage/Streets Improvements, $500,000
City of Chickamauga, Water/Sewer Improvements, $500,000
City of Cochran, Drainage/Streets Improvements, $465,998
Coffee County, Drainage/Streets Improvements, $500,000
City of Colquitt, Multi Activity Program, $703,378
City of Damascus, Water Improvements, $396,057
City of Donalsonville, Water Improvements, $500,000
Dooly County, Housing Improvements, $488,047
City of Douglas, Housing Improvements, $210,000
City of Douglasville, Boys and Girls Club, $500,000
City of Eastman, Sewer Improvements, $500,000
City of Ellijay, Sewer Improvements, $500,000
City of Greenville, Housing Improvements, $500,000
City of Griffin, Water/Sewer Improvements, $500,000
Hart County, Water Improvements, $500,000
City of Homeland, Drainage/Streets Improvements, $269,377
City of Homerville, Sewer Improvements, $500,000
City of Leesburg, Drainage/Streets Improvements, $500,000
City of Milan, Drainage/Streets Improvements, $497,761
City of Milledgeville, Housing Improvements, $453,918
City of Millen, Sewer Improvements, $500,000
City of Molena, Water Improvements, $500,000
City of Monroe, Sewer Improvements, $500,000
City of Moultrie, Drainage Improvements, $500,000
City of Ocilla, Sewer Improvements, $400,775
Pierce County, Drainage/Streets Improvements, $497,711
City of Pineview, Water Improvements, $462,808
City of Portal, Sewer Improvements, $489,840
City of Quitman, Multi Activity Program, $800,000
Randolph County, Drainage/Streets Improvements, $465,049
City of Reynolds, Sewer Improvements, $500,000
City of Richland, Water Improvements, $500,000
City of Ringgold, Sewer Improvements, $500,000
City of Rockmart, Multi Activity Program, $800,000
City of Sandersville, Multi Activity Program, $800,000
City of Siloam, Water Improvements, $331,900
City of Smithville, Housing Improvements, $500,000
City of Sumner, Water Improvements, $429,775
City of Sylvester, Water/Sewer Improvements, $500,000
Talbot County, Multi Activity Program, $800,000
City of Tarrytown, Water Improvements, $445,734
Taylor County, Sewer Improvements, $500,000
Thomas County, Drainage/Streets Improvements, $294,463
City of Thomasville, Drainage/Streets Improvements, $500,000
City of Thomson, Multi Activity Program, $800,000
Tift County, Drainage/Streets Improvements, $500,000
City of Toccoa, Multi Activity Program, $589,959
City of Union Point, Water Improvements, $500,000
City of Uvalda, Sewer Improvements, $485,000
City of Varnell, Senior Center, $500,000
City of Warrenton, Sewer Improvements, $500,000
City of Woodland, Drainage/Streets Improvements, $295,753
City of Wrens, Sewer Improvements, $500,000
City of Wrightsville, Sewer Improvements, $500,000
TOTAL, $32,575,404

Community HOME Investment Program Awards

Recipient, Project Description, Amount
Ben Hill County, Housing Improvements, $300,000
City of Cartersville, Housing Improvements, $300,000
Dooly County, Housing Improvements, $300,000
City of Douglas, Housing Improvements, $281,605
Hall County, Housing Improvements, $300,000
City of LaGrange, Housing Improvements, $300,000
Lowndes County, Housing Improvements, $300,000
City of Marshallville, Housing Improvements, $300,000
City of McIntyre, Housing Improvements, $300,000
Randolph County, Housing Improvements, $300,000
City of Rockmart, Housing Improvements, $300,000
City of Rome, Housing Improvements, $300,000
City of Sandersville, Housing Improvements, $300,000
City of Thomasville, Revitalization Area Strategy, $200,000
City of Tifton, Housing Improvements, $300,000
TOTAL, $4,381,605
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Warning About Reverse Mortgage Scams

The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge consumers, especially senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM), have increased more than 1,300 percent between 1999 and 2008, creating significant opportunities for fraud perpetrators.

Reverse mortgage scams are engineered by unscrupulous professionals in a multitude of real estate, financial services, and related entities to steal the equity from the property of unsuspecting senior citizens aged 62 or older or to use these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property.

In many of the reported scams, victim seniors are offered free homes, investment opportunities, and foreclosure or refinance assistance; they are also used as straw buyers in property flipping scams.

Seniors are frequently targeted for this fraud through local churches, investment seminars, and television, radio, billboard, and mailer advertisements.

A legitimate HECM loan product is insured by the Federal Housing Authority (FHA). It enables eligible homeowners to access the equity in their homes by providing funds without incurring a monthly payment. Eligible borrowers must be 62 years or older who occupy their property as their primary residence and who own their property or have a small mortgage balance. See the FBI/HUD Intelligence Bulletin for specific details on HECMs as well as other foreclosure rescue and investment schemes.

Seniors should consider the following:

* Do not respond to unsolicited advertisements.
* Be suspicious of anyone claiming that you can own a home with no down payment.
* Do not sign anything that you do not fully understand.
* Do not accept payment from individuals for a home you did not purchase.
* Seek out your own reverse mortgage counselor.

If you are a victim of this type of fraud and want to file a complaint, please submit information through our electronic tip line or through your local FBI office. You may also file a complaint with HUD-OIG at www.hud.gov/complaints/fraud_waste.cfm or by calling HUD’s Hotline at 1-800-347-3735.

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Newly Proposed Government Loan Program to Bring Relief to All Homeowners

/PRNewswire / -- A newly proposed home loan program known as 4/40 for Freedom was introduced today to address the continuing housing crisis, as evidenced by the recent AP story "Mortgage Delinquencies Hit Record High (May 28, 2009)." The program calls on Congress to draft a bill to reduce interest rates on all home mortgages to 4 percent and give new home buyers a 4 percent, 40-year loan option, which would dramatically stimulate the economy, prevent any more "toxic debt" and put America back to work.

On average, housing represents 35 percent of total family expenditures. The proposed program offers hope to struggling homeowners because it immediately decreases the monthly mortgage burden. Expected savings with the program are approximately 33-38 percent per month per household.

"Americans are begging for relief," said Ken Parker, founder of 4/40 for Freedom. "The program benefits are immediate; lower mortgages means increased disposable income, which translates to available cash to stimulate the economy through investments and product and service purchases. We have received enthusiastic support from the financial and business community regarding the program," Parker continued.

The program is simple: for existing homeowners it would be available automatically -- no qualification process or credit report required. The existing loan would be modified to a 4% interest rate, 40 year term, with no credit check. For foreclosed owners and first time buyers, the program offers a no nonsense qualification and application process, similar to FHA. Jumbo loans would also be offered, up to 3.5 million. Once passed by Congress, the program would be available for one year. As the economy improves and home values go up, homeowners will refinance with conventional programs and the U.S. backed real estate interest loan debt will be repaid, resulting in additional economic capital.

The Seidman Research Institute, a part of the W.P. Carey School of Business at Arizona State University, has produced a cost report regarding the 4/40 for Freedom program and it is available for purchase, along with bumper stickers and additional support material at www.4-40forFreedom.com.

Parker states that it is in the opinion of many business leaders that the money that is saved on interest will have an economic multiplier effect of three to five times the amount reinvested back into the economy. "If each homeowner saves an estimated $250 a month on their mortgage, all of a sudden they can make additional purchases and the effect on the economy will be tremendous," Parker said.

Nationwide, homeowners are being asked to sign an online petition to show their support of the program through the 4/40 for Freedom Web site, www.4-40forFreedom.com, which will then be taken to Congress.

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Federal Home Loan Bank of Atlanta to Award More Than $12.4 Million for Housing in Georgia

/PRNewswire/ -- Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that it will award more than $12.4 million to help finance 1,359 affordable housing units in Georgia. The funding is part of more than $43 million FHLBank Atlanta will award in ten states to create or preserve 4,514 units of affordable housing.

FHLBank Atlanta will award the funds as part of its 2008 Affordable Housing Program (AHP) offering. Local community developers, in partnership with FHLBank Atlanta member institutions, will use the awards to fund 18 affordable housing developments in Bleckley, Butts, Cobb, Crawford, DeKalb, Dodge, Fulton, Henry, Houston, Jones, Lamar, Laurens, Monroe, Montgomery, Peach, Pike, Pulaski, Spalding, Telfair, Treutlen, Twiggs, Upson, Wheeler, and Wilcox counties, as well as Atlanta, Bowdon, Cordele, Decatur, Donalsonville, Dublin, and Rabun Gap.

"AHP program funding has positive far-reaching effects for the communities it serves by providing a source of affordable housing and new jobs, which stimulates the local economy," said Arthur Fleming, first vice president and director of Community Investment Services, FHLBank Atlanta.

AHP is a competitive funding program that helps develop owner-occupied and rental housing for very low-, low-, and moderate-income families. FHLBank Atlanta awards the funds annually to member financial institutions and their community housing partners. AHP is a component of FHLBank Atlanta's affordable housing, economic development, and down-payment assistance initiatives. For the complete list of AHP winners, visit www.fhlbatl.com/ahp.

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House Bill Aims to Stabilize Housing, Addresses Foreclosure and Stimulus

A bill that embraces the need for righting the housing market --- the first big step toward economic recovery --- was introduced Friday in the U.S. House of Representatives.

H.R. 384, The TARP Reform and Accountability Act, was offered by Rep. Barney Frank (D-Mass.), chair of the House Financial Services Committee. The bill would require the Treasury Department to develop a program, outside the Troubled Asset Relief Program, to stimulate demand for home purchases and lower property inventories, by making affordable mortgages available for qualified buyers through interest rate buydowns, a priority of the National Association of Realtors.

The measure would amend the TARP provisions of the Emergency Economic Stabilization Act of 2008 to make significant steps to reduce foreclosures, strengthen accountability and close loopholes. Treasury could consider the impact of areas with the highest inventories of foreclosed properties.

NAR President Charles McMillan was heartened by the legislation that would move the housing market forward. "The bill proposed by Chairman Frank is an important first step toward launching a real estate recovery. Housing has always led this country out of economic downturns, and this bill recognizes that the key to bolstering the overall economy is creating stability in the real estate markets. With foreclosure relief, improving the Hope for Homeowners Plan, and expanding TARP to support commercial real estate loans and commercial mortgage-backed securities, this legislation will help create housing stability."

"By directing the Treasury Department to increase the availability of affordable mortgages rates for qualified home buyers and to offer reduced rate loans designed to stimulate demand for home purchases and clear inventory of properties, Chairman Frank has responded to the most critical issues facing potential homeowners," McMillan said.

Foreclosure relief, using the second half of the $700 billion previously authorized by Congress, would be conditioned on stipulation that $50 billion be used for foreclosure mitigation and calls for a plan to be put into action by March 15. That would allow the Treasury to begin committing the remaining TARP funds for the plan no later than April 1.

The plan would require that foreclosure assistance must apply only to owner-occupied residences. Further, the bill would provide liability protection for loan servicers who engage in loan modifications. Such servicers would have to report regularly to the Treasury.

In addition, the Treasury would be authorized to provide support for commercial real estate loans and commercial mortgage-backed securities, an NAR priority.

NAR has been urging the incoming Obama administration, as well as Congress, to address critical housing needs. "This legislation is a great beginning, but more needs to be done. We must continue to bring potential homebuyers into the market by ensuring low mortgage interest rates, making the higher 2008 conforming loan limits permanent, and applying the $7,500 tax credit to all homebuyers and making it non-repayable," McMillan said.

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Georgia Economic Outlook 2009

The Georgia and U.S. economic forecasts summarized here were prepared by the Terry College’s Selig Center for Economic Growth.

The Georgia Forecast

At a Glance – The Selig Center forecast offered a grim assessment of the Georgia economy, predicting a recession that will be “severe rather than mild and prolonged rather than short,” according to Dean Robert T. Sumichrast of UGA’s Terry College of Business. “I believe that the first and second quarters of 2009 will be dreadful. Just how dreadful depends on when, and to what degree, the credit markets thaw.” Noting that recessionary periods historically average about 10 months, Sumichrast said he anticipates this recession lasting 18 months. “It will be the longest downturn since the Great Depression.” But he stopped short of calling the current economic cycle a depression.

“That’s largely because the policy responses by the Federal Reserve, the Treasury Department and the FDIC have been massive, targeted and very timely,” Sumichrast said. “The Feds have pulled out all the stops to prevent a depression. We are about halfway through the really bad stuff. This is not the time to lose your nerve or to panic. The main takeaway from my remarks is that this is the time to plan and soon it will be time to act. You can take advantage of the economic recovery that is coming in 2009.”

Where’s the Bottom of the Trough? “Given what we know today, the most likely scenario is that the economy bottoms out in the third quarter of 2009,” Sumichrast said. “Until the upswing begins, we are going to see very sharp pullbacks in spending by consumers and businesses. The aftershocks of the financial panic will continue to be felt. People and companies have lost assets. Many are truly less well off. And the wealth that has been lost will not easily be rebuilt. So, even though the economy is likely to bottom out in two more quarters, it will be very slow to recover.”

By the Numbers – For the year, Georgia’s economy is expected to grow just 1.0 percent in 2008, after adjusting for inflation. And in 2009, the state’s gross domestic product is forecast to shrink 1.4 percent. Georgia’s economy will slowly begin to turn around in the third quarter and will accelerate to about 2.5 percent growth by mid-2010. “That’s on par with the average rate of economic growth in Georgia over the past 10 years,” Sumichrast said.

Unemployment Will Double – The period of declining employment in Georgia is forecast to last for 17 months – through July 2009. But when hiring resumes in the third quarter of 2009, job growth will be too anemic to keep pace with the growth of the labor force. Consequently, Georgia’s unemployment rate will keep rising throughout 2009. “It will peak at about 9 percent in early 2010,” Sumichrast said. “That will be the highest unemployment rate since the current data series began in 1976.” Georgia’s jobless rate was 4.4 percent in 2007, rising to 6.0 percent this year.

Contrasts with 2001 Recession – “Our last recession was in 2001. Georgia’s gross state product will decline much more sharply in this recession than it did in 2001, but the job losses will be only moderately greater this time,” Sumichrast said. “We anticipate a loss of 175,000 jobs in this recession, as compared to the loss of 150,000 jobs in the 2001 recession. The main reason job losses will not be significantly worse is that many businesses entered this recession with very lean staffing. So the job losses associated with this downturn will mostly reflect substantial declines in demand, rather than overstaffing or overdue restructuring. That contrasts sharply with the excessive spending on technology and staffing that preceded the 2001 recession.”

Housing in Freefall – New housing permits in Georgia have dropped about 75 percent since their peak in the first quarter of 2006. “That is a freefall,” Sumichrast said. “Georgia’s single-family housing starts are at their lowest level since the 1981 recession when our population was about half of what it is today – almost 10 million. Relative to the size of the economy, today’s housing downturn really is much, much worse than the 1981 retraction.” The Selig Center forecasts that the steep drop in single-family home sales will bottom out by April. Two months later, new home construction should hit its low point and begin to change course.

Commercial Construction Retreating – Conditions in nonresidential construction will worsen dramatically in 2009, and an upturn in this sector will not happen before midyear of 2010. “The pipeline of projects is being completed, and the credit crunch is severely limiting the development of new projects,” Sumichrast said. “In addition, there is a lot of vacant commercial space.”


Why So Slow to Rebound? “The wealth destruction of this recession has been intense, and it has done much more damage to middle class households than is typical. That’s because the losses this time are in residential real estate, as well as in equities,” said Sumichrast. “Middle-income consumers are likely to come out of the starting gate much more slowly in the second half of 2009 than they did in previous recessions. That’s one reason why the first two quarters of the upturn will be anemic.”

Have Cash? Be Bold – Sumichrast suggested that this may be a good time to start or expand a business, if you can get access to cash or financing. “Rents are depressed. Talent is available. And established businesses are cutting back on promotions,” he said. “It will be hard for startups to get bank loans, but some of you will get loans; others of you will be able to convince your families and friends to invest in your venture.” It’s also a great time to build, if you have the capital, need the space and are ready to stop renting. “Many contractors will cut their normal profit margins to keep their crews busy,” he said. “But the best deals will be had when the recession is at its absolute worst. Think second quarter of 2009.”

The National Forecast

At a Glance – The severity of the current downturn will not only be defined by its duration, Sumichrast said, but also by the depth of the losses. “I expect U.S. gross domestic product to decline by 3.5 percent in the fourth quarter of 2008, and then by 3 percent and 1 percent in the next two quarters,” he said. “These reductions qualify it as a severe recession.”

GDP will rise slightly in the third quarter of 2009, before advancing by 1.5 percent in the final quarter of the year, according to the Selig Center forecast. That averages out to an inflation-adjusted growth rate of 1.1 percent in 2008 and a decline of 1.2 percent in 2009.

As layoffs and buyouts continue to mount in the job market, the nation’s unemployment rate is expected to rise from a low of 4.5 percent in 2007 to more than 8 percent by 2009. Another year of declining economic growth will tamp down net hiring, and the extreme volatility in the financial markets will cause employers to hesitate longer before hiring. “I really don’t see any powerful engines of growth,” Sumichrast said. “Consequently, the upturn will be gradual. The lack of vigorous growth also means that initially we will have a relatively joyless upswing.”

Housing Bubble – Nationally, single-family housing starts have hit their lowest level since World War II. “Even though we will see upturns in home sales and new home construction, we may not see existing home prices appreciate until very late in 2009 or early in 2010,” Sumichrast said. “That’s because there is still a large inventory of unsold homes that will keep a lid on prices.” The hefty housing price bubble that developed in several states in 2006 and 2007 will have finally dissipated in even the most over-priced markets by mid-2009. That will end the cycle of household wealth destruction that’s been ongoing since early 2007.

On the positive side, Sumichrast lauded the temporary $7,500 tax credit for first-time home buyers that was included in the 2008 Housing and Economic Recovery Act. “Since first-time home buyers do not have to sell a home before they buy a home, this tax credit will help take excess inventory off the market,” he said.

Deflation the Concern Now – “Inflation was yesterday’s problem. Today’s problem is deflation,” said Selig Center Director Jeffrey M. Humphreys. He predicted consumer price inflation of 3.8 percent in 2008 will drop to a deflationary rate of -1.0 percent in 2009. Three factors have caused inflation to morph into deflation since September. First, the U.S.-led recession deepened and became global, which is rapidly driving down energy and commodity prices. Second, the financial panic worsened the housing recession, further drawing down home prices. And, third, wage and salary inflation has been brought down by the resulting job losses.

Interest Rates – The Federal Funds Rate, currently at 1.0 percent, will hold its position in 2009, but once the U.S. economy builds up some steam in 2010 the Federal Reserve will move to take back its rate cuts, Humphreys predicted. “As long as the Federal Reserve does not keep rates too low for too long, the risk of stagflation remains very low,” he said. “Based on our forecast of a very gradual recovery, I expect the first rate increase will not occur until sometime in the first quarter of 2010.”

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'Hope for Homeowners' Program Offers Faster Relief than Wall Street Bailout

GFP Note: We thought our readers would find this story of interest as we all sit and listen to the disturbing economic news.

By Broderick Perkins
October 5, 2008

Although it didn't receive nearly as much press coverage, the $300 billion "Housing and Economic Recovery Act of 2008" (H.R. 3221) may provide more immediate relief for struggling homeowners than the recently signed $700 billion economic bailout, "Emergency Economic Stabilization Act of 2008," (H.R. 1424).....

Click here to read the story.

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President Bush Signs Landmark Housing Bill into Law

RISMEDIA - Landmark housing legislation signed into law yesterday by President Bush is aimed at ending the current cyclical downturn in the housing industry, helping home buyers and strapped borrowers and strengthening the housing finance system, according to the National Association of Home Builders (NAHB).

“This milestone bill contains several provisions to get home buyers back into the marketplace, stop the slide in home prices, provide a lifeline to borrowers facing foreclosure, improve mortgage liquidity and bolster confidence in Fannie Mae and Freddie Mac,” said NAHB President Sandy Dunn, a home builder from Point Pleasant, W.Va. “We commend Congress and the President for taking this action to provide much-needed relief to the American people.”

For the past year, NAHB has been in the forefront in pushing for legislation to address the turmoil in the financial and housing markets and to bolster the nation’s faltering economy.

“By helping Americans avoid foreclosure, cracking down on predatory lending, protecting communities from the blight of abandoned homes, and providing generous tax incentives to encourage home ownership, this legislation will help strengthen the housing market and create jobs,” said Speaker Nancy Pelosi.

Senate Banking Committee Chairman Chris Dodd (D-Conn.), a chief architect of the bill, calls it “the most important piece of housing legislation in a generation.”

Prudential California/Nevada/Texas President Ed Krafchow agreed, saying the passing of the bill signifies an important turning point in the real estate industry.

“I think [the passing of the bill] is indicative of us coming through the storm,” Krafchow said. “The best part of this is, that this is a rebuilding process and now we’re on the other side of the perfect storm that hit the industry and certainly damaged the financial part of the business and greatly impeded doing real estate transactions. I’m not suggesting we’ve hit smooth sailing, but the majority of the storm is over and we’re starting to move forward in the business and the industry as it grows. That’s the most positive piece of the signing of this bill.”

Key elements of H.R. 3221, the Housing and Economic Recovery Act of 2008, include:

- A temporary first-time home buyer tax credit. The tax credit will stimulate home buying, reduce excess supply in housing markets and shore up home prices.

- FHA modernization and expansion. A revitalized FHA will have greater flexibility to respond to the needs of borrowers, enable more working families to become home owners and play an important role in the mortgage markets. To address the foreclosure crisis, the FHA is given additional authority to insure up to $300 billion of mortgages to refinance loans headed for foreclosure.

- GSE (government-sponsored enterprise) reform. The law reforms the regulation of Fannie Mae and Freddie Mac and permanently increases the conforming loan limit to help buyers in high-cost markets. To reassure financial and global markets, the government will temporarily expand its line of credit to Fannie and Freddie and permit the U.S. Treasury to purchase an equity stake in the companies through the end of 2009.

- Mortgage Revenue Bond Program. The measure gives states the ability to issue an additional $11 billion in mortgage revenue bonds, which will help strapped borrowers seeking to refinance their home loans.

- Low Income Housing Tax Credit. Enhancing this program will expand the supply of much-needed affordable rental housing.

Tax Credit Centerpiece of Housing Bill

The centerpiece of the housing bill is a temporary, $7,500 first-time home buyer tax credit for the purchase of any home. The tax credit can be used for homes purchased between April 9, 2008 and July 1, 2009. It is expected to provide a significant-and temporary-financial incentive for home buyers.

“The tax credit is the best stimulative measure,” said Dunn. “It will increase housing demand, get home buyers back into the marketplace and fight falling home prices, which threaten the economy as a whole.”

The original eligibility period expired in April 2009, but following a major grassroots campaign from NAHB members, the period was extended to June 30, 2009 to enable home builders to include the credit in their sales and marketing next spring and into the early summer-the peak home buying season.

NAHB has launched a new website, www.federalhousingtaxcredit.com, which includes a set of comprehensive questions and answers about how the credit works and how consumers can put it to their advantage.

Isakson Praises Passage of Legislation to Stimulate Housing Market

U.S. Senator Johnny Isakson, R-Ga., today praised the Senate’s passage of legislation to stimulate the nation’s declining housing market. The legislation passed by a vote of 63 to 5.

“One thing we must do is improve the plight of the American people economically, and there are two things overwhelming average Americans today. One is the price of gas at the pump. The second is the declining value of equity in their homes,” Isakson said. “This legislation incentivizes buyers to come back to the marketplace. It provides liquidity to refinance loans that are under water. It motivates, inspires and provides liquidity in the marketplace through Freddie Mac and Fannie Mae that does not exist right now.”

The comprehensive legislation is designed to stimulate the nation’s declining housing market as well as strengthen the regulation of Freddie Mac and Fannie Mae. It also modernizes the Federal Housing Administration and expands the FHA’s loan insurance programs aimed at helping borrowers avoid foreclosure.

The legislation will now return to the House of Representatives for consideration. Isakson urged the House to immediately pass the bill.

“We cannot afford to delay this legislation, which will help bring back a prosperous, healthy housing market and a disciplined, well capitalized and liquid mortgage market,” Isakson said. “Every day we wait is a protraction of the current economic difficulty in the housing market.”