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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-616

======================================================================



 
                 NEIGHBORHOOD STABILIZATION ACT OF 2008

                                _______
                                

  May 1, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5818]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 5818) to authorize the Secretary of Housing and 
Urban Development to make loans to States to acquire foreclosed 
housing and to make grants to States for related costs, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    11
Background and Need for Legislation..............................    12
Hearings.........................................................    14
Committee Consideration..........................................    15
Committee Votes..................................................    15
Committee Oversight Findings.....................................    19
Performance Goals and Objectives.................................    19
New Budget Authority, Entitlement Authority, and Tax Expenditures    19
Committee Cost Estimate..........................................    20
Congressional Budget Office Estimate.............................    20
Federal Mandates Statement.......................................    22
Advisory Committee Statement.....................................    22
Constitutional Authority Statement...............................    23
Applicability to Legislative Branch..............................    23
Earmark Identification...........................................    23
Section-by-Section Analysis of the Legislation...................    23
Dissenting Views.................................................    30

                               AMENDMENT

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.
Sec. 2. Congressional purposes.
Sec. 3. Loans and grants to States.
Sec. 4. Qualified plans.
Sec. 5. Allocation of amounts.
Sec. 6. Loans.
Sec. 7. Grants.
Sec. 8. Eligible housing stimulus activities.
Sec. 9. Shared appreciation agreement.
Sec. 10. Spending requirements.
Sec. 11. Servicer contact.
Sec. 12. Accountability.
Sec. 13. Definitions.
Sec. 14. Funding.
Sec. 15. Regulations and implementation.

SEC. 2. CONGRESSIONAL PURPOSES.

  The purposes of this Act are--
          (1) to establish a loan and grant program administered by the 
        Department of Housing and Urban Development to help States, 
        metropolitan cities, and urban counties purchase and 
        rehabilitate owner-vacated, foreclosed homes with the goal of 
        stabilizing and occupying them as soon as possible, either 
        through resale or rental to qualified families;
          (2) to distribute these loans and grants to areas with the 
        highest levels of foreclosure and delinquent subprime 
        mortgages;
          (3) to provide incentives for States, metropolitan cities, 
        and urban counties to use the funds to stabilize as many 
        properties as possible; and
          (4) to provide housing for low- and moderate-income families, 
        especially those that have lost homes to foreclosure.

SEC. 3. LOANS AND GRANTS TO STATES.

  The Secretary of Housing and Urban Development shall, subject to the 
availability of amounts under section 14, make grants under section 
5(a) to qualified States and make loans under section 6 in accordance 
with the approved plans of qualified States, for use to carry out 
eligible housing stimulus activities under section 8.

SEC. 4. QUALIFIED PLANS.

  (a) In General.--The Secretary may make a grant under this Act only 
to a State, and may allocate a loan authority amount under this Act 
only for a State, that has submitted to the Secretary a plan that meets 
the requirements under this section and has been approved under this 
section. A State shall reallocate amounts under subsection (f) or (g) 
of section 5 only to a qualified metropolitan city or qualified urban 
county, respectively, that has submitted to the Secretary a plan that 
meets the requirements under this section and has been approved under 
this section.
  (b) Contents.--A plan under this section for an allocation recipient 
shall--
          (1) designate a housing finance agency of the allocation 
        recipient, or other agency, department, or entity of the 
        allocation recipient, or any other designee, as the allocation 
        recipient administrator to act on behalf of the allocation 
        recipient for purposes of this Act;
          (2) describe the housing stimulus activities under section 8 
        to be carried out with assistance under this Act for the 
        allocation recipient by the entity identified pursuant to 
        paragraph (1) of this subsection;
          (3) prioritize the allocation of funds to low- and moderate-
        income neighborhoods with high concentrations of foreclosures 
        and describe how such activities will help restore or improve 
        the viability of such neighborhoods by providing for purchase 
        or occupancy of qualified foreclosed properties as soon as 
        practicable and in a manner that will facilitate repayment of 
        the loans provided under this Act for carrying out such 
        activities;
          (4) set forth the procedures that the allocation recipient 
        will use to allocate grant and loan amounts and monitor for 
        compliance with the requirements of section 8;
          (5) provide that grant and loan amounts provided under this 
        Act for the allocation recipient will be used only for eligible 
        housing stimulus activities under section 8 that are eligible 
        under such section for assistance with grant or loan amounts, 
        as applicable;
          (6) contain such assurances as the Secretary shall require 
        that the housing stimulus activities to be carried out with 
        assistance under this Act shall not result in a significant net 
        loss in rental housing in an area in which such activities are 
        undertaken;
          (7) give priority emphasis and consideration to metropolitan 
        areas, metropolitan cities, urban areas, rural areas, low- and 
        moderate-income areas, census tracts and other areas having the 
        greatest need, including those--
                  (A) with the greatest percentage of home 
                foreclosures;
                  (B) with the highest percentage of homes financed by 
                subprime mortgage loans over 90 days delinquent; or
                  (C) identified by the State, qualified metropolitan 
                city, or unit of general local government as likely to 
                face a significant rise in the rate of home 
                foreclosures.
          (8) provide preference for activities that serve the lowest 
        income families, who otherwise meet the income requirements 
        under section 8, for the longest period and homeowners, who 
        otherwise meet such income requirements, whose mortgages have 
        been foreclosed;
          (9) provide preference for use of grant and loan amounts in 
        connection with acquisition of qualified foreclosed properties 
        that are acquired no earlier than 60 days after the owner of 
        the property described in section 13(7)(B) acquired such 
        ownership;
          (10) describe any other preferences the allocation recipient 
        may establish, such as housing for first responders, for 
        veterans, for nurses serving underserved areas or homeless 
        persons, or for homeless persons in accordance with the 10-year 
        plan of the State to end homelessness, or providing housing for 
        public school teachers or workforce who are employed by the 
        city or locality in which the housing is located;
          (11) provide for obligation and outlay of grant amounts, and 
        for loan commitments and disbursement, in accordance with the 
        requirements under section 10; and
          (12) in the case of any grant or loan amounts that will be 
        invested with the possibility of a return on investment, 
        provide for use of any return on such investment only for one 
        or more eligible housing stimulus activities under section 8.
  (c) Submission.--
          (1) In general.--The Secretary shall provide for allocation 
        recipients to submit plans under this section to the Secretary 
        and shall establish requirements for the contents and form of 
        such plans. Except in the case of plan resubmitted pursuant to 
        subsection (d)(3), the Secretary may not accept or consider a 
        plan unless the plan is submitted to the Secretary before the 
        expiration of the 30-day period beginning upon the date of the 
        enactment of this Act.
          (2) Public approval.--An allocation recipient may not submit 
        a plan to the Secretary unless the plan is approved by the 
        chief executive officer of the allocation recipient after a 
        public hearing on the plan held pursuant to reasonable public 
        notice.
  (d) Review and Approval.--
          (1) Timing.--The Secretary shall review, and approve or 
        disapprove, each plan submitted or resubmitted pursuant to 
        paragraph (3) in compliance with the requirements established 
        under this section before the expiration of the 30-day period 
        beginning upon the submission of the plan. If the Secretary 
        does not approve or disapprove a plan that is submitted or 
        resubmitted in accordance with the requirements under this 
        section before the expiration of such 30-day period and notify 
        the allocation recipient of such approval or disapproval, the 
        plan shall be considered approved for purposes of this section.
          (2) Standard for disapproval.--The Secretary may disapprove a 
        plan only if the plan fails to comply with the requirements of 
        this Act.
          (3) Resubmission.--If the Secretary disapproves the plan of 
        an allocation recipient, the Secretary shall submit to the 
        allocation recipient the reasons for the disapproval, and the 
        allocation recipient may, during the 15-day period that begins 
        upon notification of such disapproval and the reasons for such 
        disapproval, submit to the Secretary a revised plan for review 
        and approval in accordance with this subsection.

SEC. 5. ALLOCATION OF AMOUNTS.

  (a) Grants.--From the total amount made available under section 14(a) 
for grants under this Act, the Secretary shall make a grant to each 
qualified State in the grant amount determined under subsection (c) of 
this section for the qualified State.
  (b) Loans.--From the aggregate amount of authority for the 
outstanding principal balance of loans made under this Act pursuant to 
section 14(b)(1), the Secretary shall allocate such authority for loans 
under this Act for each qualified State in the loan authority amount 
determined under subsection (c) of this section for the qualified 
State.
  (c) Grant Amounts and Loan Authority Amounts.--
          (1) In general.--The grant amount or loan authority amount 
        for a qualified State shall be the foreclosure grant share or 
        foreclosure loan share, respectively, for the State determined 
        under subsection (d), as such share is adjusted in accordance 
        with an index established or selected by the Secretary to 
        account for differences between qualified States in the median 
        price of single family housing in such States.
          (2) Limitation on adjustment.-- If such adjustment would 
        result in a grant amount or loan authority amount for any State 
        that exceeds 125 percent of the foreclosure grant share or 
        foreclosure loan share, respectively, for the State, the grant 
        amount or loan authority amount for the State shall be 125 
        percent of foreclosure grant share or foreclosure loan share, 
        respectively, for the State and the Secretary shall increase 
        the grant amounts or loan authority amounts for all other 
        States on a pro rata basis, except as provided in paragraph 
        (3), by the amount necessary to account for the aggregate of 
        any such decreases in grant amounts or loan authority amounts 
        for States to comply with the 125 percent limitation.
          (3) Limitation on reallocation.--No increase in the grant 
        amount or loan authority amount for any State from amounts 
        reallocated pursuant to paragraph (2) shall result in the grant 
        amount or loan authority amount for any State exceeding 125 
        percent of the foreclosure grant share or foreclosure loan 
        share for the State, respectively.
          (4) Priority preference for unused amounts.--States which 
        have their grant or loan amounts reduced under paragraph (2) 
        shall be granted a priority preference for any loans or grants 
        which may be reallocated under subsection (i) (relating to 
        reallocation of funds).
  (d) Foreclosure Shares.--For purposes of this section:
          (1) Grant share.--The foreclosure grant share for a qualified 
        State shall be the amount that bears the same ratio to the 
        total amount made available under section 14(a) as the number 
        of foreclosures on mortgages for single family housing and 
        subprime mortgage loans for single family housing that are over 
        90 days delinquent, occurring in such State during the most 
        recently completed four calendar quarters for which such 
        information is available, as determined by the Secretary, bears 
        to the aggregate number of such foreclosures and such 
        delinquent subprime mortgage loans occurring in all qualified 
        States during such calendar quarters.
          (2) Loan share.--The foreclosure loan share for a qualified 
        State shall be the amount that bears the same ratio to the 
        aggregate amount of the principal balance of loans that may be 
        outstanding at any time under this Act pursuant to section 
        14(b)(1) as the number of foreclosures on mortgages for single 
        family housing and subprime mortgage loans for single family 
        housing that are over 90 days delinquent, occurring in such 
        State during the most recently completed four calendar quarters 
        for which such information is available, as determined by the 
        Secretary, bears to the aggregate number of such foreclosures 
        and such delinquent subprime mortgage loans occurring in all 
        qualified States during such calendar quarters.
  (e) Distribution of Full Amount.--The Secretary shall establish the 
index referred to in subsection (c) and the grant and loan authority 
amounts for the qualified States in a manner that provides that--
          (1) the aggregate of the grant amounts for all qualified 
        States is equal to the total amount made available under 
        section 14(a); and
          (2) the aggregate of the loan authority amounts for all 
        qualified States is equal to the aggregate amount of authority 
        for the outstanding principal balance of all loans made under 
        this Act pursuant to section 14(b)(1).
  (f) Requirement To Allocate to Qualified Metropolitan Cities.--Of any 
grant amounts and loan authority amounts allocated pursuant to this 
section for a State, such State shall allocate for each qualified 
metropolitan city located in such State a portion of such grant amounts 
and such loan authority amounts that bears the same ratio to such grant 
amounts and loan authority amounts, respectively, allocated for the 
State as the number of foreclosures on mortgages for single family 
housing and subprime mortgage loans for single family housing that are 
over 90 days delinquent, occurring in such qualified metropolitan city 
during the most recently completed four calendar quarters for which 
such information is available, as determined by the Secretary, bears to 
the aggregate number of such foreclosures and such delinquent subprime 
mortgage loans occurring in the State during such calendar quarters. A 
State may adjust such allocation to account for differences between 
median single family housing prices in the State and in qualified 
metropolitan cities in the State.
  (g) Requirement To Allocate to Qualified Urban Counties.--Of any 
grant amounts and loan authority amounts allocated pursuant to this 
section for a State, such State shall allocate for each qualified urban 
county located in such State a portion of such grant amounts and such 
loan authority amounts that bears the same ratio to such grant amounts 
and loan authority amounts, respectively, allocated for the State as 
the number of foreclosures on mortgages for single family housing and 
subprime mortgage loans for single family housing that are over 90 days 
delinquent, occurring in such qualified urban county during the most 
recently completed four calendar quarters for which such information is 
available, as determined by the Secretary, bears to the aggregate 
number of such foreclosures and such delinquent subprime mortgage loans 
occurring in the State during such calendar quarters. A State may 
adjust such allocation to account for differences between median single 
family housing prices in the State and in qualified urban counties in 
the State.
  (h) Allocation Exception.--If the aggregate grant and loan authority 
amount to be allocated pursuant to subsection (f) or (g) to a qualified 
metropolitan city or qualified urban county is less than $10,000,000, a 
State may, but is not required to, allocate such grant and loan 
authority amount to such qualified metropolitan city or qualified urban 
county, and the allocation for such State shall be increased by the 
grant and loan authority amount not allocated to such qualified 
metropolitan city or qualified urban county.
  (i) Reallocation of Unused Amounts.--The Secretary shall recapture 
any grant amounts and loan authority amounts allocated to a State that 
are not used in a timely fashion in accordance with section 10, as the 
Secretary shall prescribe, and shall reallocate such amounts among all 
other qualified States in accordance with the provisions of this Act 
for allocation of grant amounts and loan authority amounts.

SEC. 6. LOANS.

  (a) Requirement of Loan Authority Amount.--The Secretary may make a 
loan under this Act for use in the area of an allocation recipient only 
to the extent and in such amounts that loan authority amounts for such 
allocation recipient are available.
  (b) Revolving Availability of Loan Authority Amount.--The loan 
authority amount allocated for each allocation recipient shall--
          (1) upon the Secretary entering into a binding commitment to 
        make a loan under this Act for use in the area of such 
        allocation recipient, be decreased by the amount of the 
        principal obligation of such loan; and
          (2) upon the repayment to the Secretary by any borrower of 
        any principal amounts borrowed under a loan this Act for use in 
        the area of such allocation recipient, be increased by the 
        amount of principal repaid.
  (c) Assisted Entities.--The loan authority amount of an allocation 
recipient may be used for activities described in section 8(a) 
undertaken by--
          (1) the allocation recipient;
          (2) a unit of local government or a local governmental 
        entity; or
          (3) any other entity, as provided in the approved plan of the 
        allocation recipient under section 4.
  (d) Loan Terms.--Each loan provided under this Act from the loan 
authority amount of an allocation recipient shall--
          (1) bear no interest;
          (2) have a term to maturity of--
                  (A) 3 years, in the case of any loan made to purchase 
                or finance the purchase of qualified foreclosed housing 
                for use under section 8(a)(1) for homeownership; and
                  (B) 5 years, in the case of any loan made to purchase 
                or finance the purchase of qualified foreclosed housing 
                for use under section 8(a)(2) for rental;
          (3) not provide for amortization of the principal obligation 
        of the loan during such term;
          (4) be non-recourse;
          (5) require payment of the original principal obligation 
        under the loan only upon the expiration of the term of the 
        loan; and
          (6) have such other terms and conditions as the Secretary may 
        provide.
  (e) Procedure.--A qualified State or, upon its election, a qualified 
metropolitan city or qualified urban county shall--
          (1) enter into a loan agreement on behalf of the Secretary on 
        terms established under this Act and any other terms such 
        State, qualified metropolitan city, or qualified urban county 
        determines appropriate;
          (2) disburse the loan amount in accordance with such terms, 
        subject only to the absence of sufficient loan authority amount 
        for such State, such qualified metropolitan city, or such 
        qualified urban county;
          (3) monitor such loans; and
          (4) collect and transmit to the Secretary any loan 
        repayments.
  (f) Eligibility for Repeat Lending.--A loan under this Act may be 
made to an entity that has previously borrowed amounts under a loan 
under this Act only if such entity has repaid 90 percent or more of the 
amounts due under all previous such loans. The Secretary may waive such 
requirement upon a request by an allocation recipient if the borrower 
has demonstrated satisfactory progress in utilizing outstanding loans 
and sufficient capacity to utilize additional loan amounts effectively.
  (g) Sunset.--The Secretary may not enter into any commitment to make 
a loan under this Act, or make any such loan, after the expiration of 
the 48-month period beginning on the date of the enactment of this Act.

SEC. 7. GRANTS.

  The grant amount of an allocation recipient may be used under section 
8(b) by the allocation recipient, a unit of local government or a local 
governmental entity, or a nonprofit organization.

SEC. 8. ELIGIBLE HOUSING STIMULUS ACTIVITIES.

  (a) Loan Amounts.--Amounts provided under a loan under this Act for 
an allocation recipient shall be used, in accordance with the approved 
plan of such allocation recipient, only for the following activities:
          (1) Homeownership housing provision.--To purchase or finance 
        the purchase of qualified foreclosed housing for resale as 
        housing for homeownership to families having incomes that do 
        not exceed 140 percent of the median income for the area in 
        which the housing is located.
          (2) Rental housing provision.--To purchase or finance the 
        purchase of qualified foreclosed housing for use as rental, 
        lease-purchase, or rent-to-own housing, subject to the 
        following requirements:
                  (A) Qualified tenants.--All dwelling units in the 
                housing purchased or financed using any loan amounts 
                shall be available for rental only by families whose 
                incomes do not exceed 100 percent of the median income 
                for the area in which the housing is located.
                  (B) Rents.--Rents for each dwelling unit in the 
                housing purchased or financed using any loan amounts 
                shall be established at amounts that do not exceed 
                market rents for comparable dwelling units located in 
                the area in which the housing is located and in 
                accordance with such requirements as the Secretary 
                shall establish to ensure that rents are established in 
                a fair, objective, and arms-length manner.
          (3) Housing rehabilitation.--To rehabilitate qualified 
        foreclosed housing acquired with assistance provided pursuant 
        to this subsection, to the extent necessary to comply with 
        applicable laws, codes, and other requirements relating to 
        housing safety, quality, and habitability, or to make 
        improvements to the housing to increase the energy efficiency 
        or conservation of the housing or provide a renewable energy 
        source or sources for the housing, for the purpose of reselling 
        the housing, to the extent possible, during the 3-month period 
        that begins upon completion of rehabilitation and at a price 
        that is as close as possible to the acquisition price of the 
        housing.
  (b) Grant Amounts.--Grant amounts provided under this Act to an 
allocation recipient shall be used, in accordance with the approved 
plan of such allocation recipient, only for the following activities:
          (1) Operating and holding costs.--For costs of holding and 
        operating qualified foreclosed housing acquired pursuant to 
        subsection (a), including costs of management, taxes, handling, 
        insurance, and other related costs.
          (2) Costs relating to property acquisition.--For incidental 
        costs involved in acquiring qualified foreclosed housing 
        pursuant to subsection (a), including reasonable closing costs, 
        except that grant amounts may not be used to pay any portion of 
        the purchase price for the housing under section 13(7)(C).
          (3) Administrative costs.--For costs of the allocation 
        recipient in administering loan authority amounts and grant 
        amounts under this Act, except that the amount of grant amounts 
        provided under this Act to an allocation recipient that may be 
        used under this paragraph shall not exceed the amount equal to 
        8 percent of the sum of the grant amounts provided to the 
        allocation recipient pursuant to subsection (a), (f), or (g) of 
        section 5, as applicable, and the loan authority amount 
        allocated to the allocation recipient pursuant to subsection 
        (b), (f), or (g) of section 5, as applicable.
          (4) Planning costs.--For planning costs of the State in 
        connection with this Act, except that the amount of grant 
        amounts provided under this Act to an allocation recipient that 
        may be used under this paragraph shall not exceed the amount 
        equal to 2 percent of the sum of the grant amounts provided to 
        the allocation recipient pursuant to subsection (a), (f), or 
        (g) of section 5, as applicable, and the loan authority amount 
        allocated to the State pursuant to subsection (b), (f), or (g) 
        of section 5, as applicable.
          (5) Housing rehabilitation.--For activities set forth in 
        subsection (a)(3), except that an allocation recipient shall 
        not use more than 20 percent of a grant amount allocation for 
        such activities.
          (6) Demolition.--For costs of demolishing qualified 
        foreclosed housing that is deteriorated or unsafe, but amounts 
        may be used under this paragraph only if the Secretary 
        determines that the neighborhood or other area in which the 
        housing is located has a high incidence of vacant and abandoned 
        housing (or other vacant and abandoned structures) and is 
        experiencing a significant decline in population.
Notwithstanding any other provision of this subsection, grant amounts 
provided under this Act may not be used to provide assistance of any 
kind (including grants, loans, and closing cost financing) to provide 
amounts for downpayments for any homebuyers of single family housing.
  (c) Prohibited Uses.--The Secretary shall, by regulation, set forth 
prohibited uses of grant or loan amounts under this Act, which shall 
include use for--
          (1) political activities;
          (2) advocacy;
          (3) lobbying, whether directly or through other parties;
          (4) counseling services;
          (5) travel expenses; and
          (6) preparing or providing advice on tax returns.
  (d) Income Targeting Requirement.--
          (1) Very low-income families.--Not less than 50 percent of 
        the total grant amounts an allocation recipient makes available 
        under this Act shall be used for activities under subsection 
        (b) in connection with providing housing for families whose 
        incomes do not exceed 50 percent of the median income for the 
        area in which the housing is located.
          (2) Extremely low-income families.--Not less than 50 percent 
        of the total grant amounts an allocation recipient makes 
        available under paragraph (1) shall be used for activities 
        under subsection (b) in connection with providing housing for 
        families whose incomes do not exceed 30 percent of the median 
        income for the area in which the housing is located.
          (3) Waiver.--
                  (A) In general.--The Secretary may establish a 
                percentage for purposes of paragraph (2) that is less 
                than 50 percent if an allocation recipient certifies 
                that, in addition to any other requirements the 
                Secretary may establish--
                          (i) such allocation recipient has attempted 
                        to use all other federally related resources 
                        available to it in combination with the 
                        resources available under this Act to meet the 
                        requirements of paragraph (2); and
                          (ii) the failure to comply with paragraph (2) 
                        will not result in an overall loss of housing 
                        affordable to families whose incomes do not 
                        exceed 30 percent of area median income in the 
                        area of such allocation recipient.
                  (B) Consideration of housing needs.--In establishing 
                an alternative percentage for purposes of paragraph (2) 
                for an allocation recipient that meets the 
                certification requirements of subparagraph (A), the 
                Secretary shall take into consideration the housing 
                needs in the area of such allocation recipient of 
                families whose incomes do not exceed 30 percent of area 
                median income.
  (e) Use for Rural Areas.--An allocation recipient receiving any grant 
or loan amounts under this Act that includes any rural areas shall use 
a portion of its grant and loan authority amount for eligible 
activities located in rural areas that is proportionate to the 
identified need for such activities in such rural areas.
  (f) Security.--A qualified State, or at its election, a qualified 
metropolitan city or qualified urban county, shall record a lien in the 
name of the Secretary on any qualified foreclosed housing purchased or 
financed with a loan under this section in the amount of the principal 
obligation under the loan and interest due under the loan.
  (g) Qualified Homeowners.--This Act may not be construed to prevent 
the resale of qualified foreclosed housing to a prior owner or occupant 
of such housing who meets the income requirements of this Act.
  (h) Voucher Nondiscrimination.--
          (1) Prospective tenants.--A recipient of amounts from a loan 
        or grant under this Act may not refuse to lease a dwelling unit 
        in housing assisted with any such loan or grant amounts to a 
        holder of a voucher or certificate of eligibility under section 
        8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) 
        because of the status of the prospective tenant as such a 
        holder.
          (2) Current tenants.--In the case of any qualified foreclosed 
        housing for which funds made available under the Act are used 
        and in which a recipient of assistance under section 8(o) of 
        the U.S. Housing Act of 1937 resides at the time of acquisition 
        or financing, the owner and any successor in interest shall be 
        subject to the lease and to the housing assistance payments 
        contract for the occupied unit. Vacating the property prior to 
        sale shall not constitute good cause for termination of the 
        tenancy unless the property is unmarketable while occupied or 
        unless the owner or subsequent purchaser desires the unit for 
        personal or family use. This paragraph shall not preempt any 
        State or local law that provides more protection for tenants.
  (i) Effect of Foreclosure on Preexisting Lease.--
          (1) In general.--In the case of any foreclosure on any 
        dwelling or residential real property acquired with any amounts 
        made available under this Act, any successor in interest in 
        such property pursuant to the foreclosure shall assume such 
        interest subject to--
                  (A) the provision, by the successor in interest, of a 
                notice to vacate to any bona fide tenant at least 90 
                days before the effective date of the notice to vacate; 
                and
                  (B) the rights of any bona fide tenant, as of the 
                date of such notice of foreclosure--
                          (i) under any bona fide lease entered into 
                        before the notice of foreclosure to occupy the 
                        premises until the end of the remaining term of 
                        the lease or the end of the 6-month period 
                        beginning on the date of the notice of 
                        foreclosure, whichever occurs first, subject to 
                        the receipt by the tenant of the 90-day notice 
                        under subparagraph (A); or
                          (ii) without a lease or with a lease 
                        terminable at will under State law, subject to 
                        the receipt by the tenant of the 90-day notice 
                        under subparagraph (A), except that nothing 
                        under this subparagraph shall affect the 
                        requirements for termination of any federally 
                        subsidized tenancy.
          (2) Bona fide lease or tenancy.--For purposes of this 
        subsection, a lease or tenancy shall be considered bona fide 
        only if--
                  (A) the mortgagor under the contract is not the 
                tenant;
                  (B) the lease or tenancy was the result of an arms-
                length transaction; or
                  (C) the lease or tenancy requires the receipt of rent 
                that is not substantially less than fair market rent 
                for the property.
  (j) Prohibition of Demolition of Public Housing.--Notwithstanding any 
other provision of this Act, amounts from a grant or loan under this 
Act may not be used to demolish any public housing (as such term is 
defined in section 3 of the United States Housing Act of 1937 (42 
U.S.C. 1437a)).

SEC. 9. SHARED APPRECIATION AGREEMENT.

  Notwithstanding any other provision of this Act, no amounts from a 
loan or grant under this Act may be used under section 8 for any 
qualified foreclosed housing unless such binding agreements are entered 
into, in accordance with such requirements as the Secretary shall 
establish, that ensure that the Federal Government shall, upon any sale 
or disposition of the qualified foreclosed housing by the owner who 
acquires the housing pursuant to assistance under this Act, receive an 
amount equal to 20 percent of the difference between the net proceeds 
from such sale or disposition and the cost of such acquisition of the 
housing pursuant to assistance under this Act, after deductions for 
expenditures paid or incurred after the date of such acquisition that 
are properly chargeable to capital account (within the meaning of 
section 1016 of the Internal Revenue Code of 1986) with respect to such 
housing. In the case of a for-profit owner, this section shall be 
applied by substituting ``50 percent'' for ``20 percent''.

SEC. 10. SPENDING REQUIREMENTS.

  (a) In General.--Each allocation recipient that receives a grant 
under this Act or is allocated loan authority amounts under this Act 
pursuant to section 5(b) shall--
          (1) commence obligation of such grant amounts and commitment 
        of such loan authority amounts not later than the expiration of 
        the 120-day period that begins upon approval of the approved 
        plan of allocation recipient;
          (2) obligate all such grant amounts and enter into 
        commitments for all such loan authority amounts not later than 
        the expiration of the 180-day period beginning upon such 
        approval; and
          (3) except as provided in subsection (b) of this section, 
        outlay all such grant amounts and disburse all such loan 
        authority amounts not later than the 24-month period that 
        begins upon such approval.
This subsection shall not apply to loan authority amounts of an 
allocation recipient attributable, pursuant to section 6(b)(2), to 
repayment of principal amounts of loans under this Act.
  (b) Exception to Spending Requirement.--If an allocation recipient in 
good faith makes a request, in the plan submitted to the Secretary 
pursuant to section 4 or otherwise after approval of such plan, for 
extension of the period referred to in paragraph (1), (2), or (3) of 
subsection (a) of this section, the Secretary may extend the period for 
not more than 5 months.

SEC. 11. SERVICER CONTACT.

  The servicer of a federally related mortgage loan (as such term is 
defined in section 3 of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2602)) shall notify the unit of general local 
government in which the property securing the mortgage is located upon 
becoming responsible for a qualified foreclosed property and provide 
such unit of general local government with the name and 24-hour contact 
information of a representative authorized to negotiate purchases.

SEC. 12. ACCOUNTABILITY.

  (a) Reporting.--Each allocation recipient that receives a grant or 
allocation of loan authority amount under this Act shall submit a 
report to the Secretary, not later than the expiration of the 12-month 
period beginning upon the approval of the qualified plan by the 
Secretary, regarding use of such amounts which shall contain such 
information, including information about the location and type of 
assisted properties and the income of families purchasing or renting 
housing assisted under this Act, as the Secretary shall require.
  (b) Misuse of Amounts.--If the Secretary determines that any amounts 
from a grant or loan under this Act for an allocation recipient or 
other recipient of grant or loans funds has been used in a manner that 
is in violation of this Act, any regulations issued under this Act, or 
any requirements or conditions under which such amounts were provided, 
the Secretary shall require the allocation recipient or other recipient 
of grant or loans funds to reimburse the Treasury of the United States 
in the amount of any such misused funds.
  (c) Hold Harmless.--Notwithstanding subsection (b), a State shall not 
be required to reimburse the Treasury of the United States for any 
misused funds such State is required to allocate to a qualified 
metropolitan city or qualified urban county under subsection (f) or (g) 
of section 5, respectively.

SEC. 13. DEFINITIONS.

  For purposes of this Act, the following definitions shall apply:
          (1) Allocation recipient.--The term ``allocation recipient'' 
        means--
                  (A) a qualified State;
                  (B) a qualified metropolitan city; and
                  (C) a qualified urban county.
          (2) Allocation recipient administrator.--The term 
        ``allocation recipient administrator'' means the entity that is 
        designated, pursuant to section 4(b)(1), in the approved plan 
        of the allocation recipient to act for the allocation recipient 
        for purposes of this Act.
          (3) Approved plan.--The term ``approved plan'' means a plan 
        of an allocation recipient that has been approved pursuant to 
        section 4.
          (4) Covered multifamily housing.--The term ``covered 
        multifamily housing'' means a residential structure that 
        consists of 64 or fewer dwelling units.
          (5) Loan authority amount.--The term ``loan authority 
        amount'' means, with respect to an allocation recipient, the 
        amount of loan authority available pursuant to section 14(b)(1) 
        that is allocated for the allocation recipient pursuant to 
        subsection (b), (f), or (g) of section 5, as applicable, as 
        such amount may be increased or decreased pursuant to section 
        6(b).
          (6) Nonprofit organization.--The term ``nonprofit 
        organization'' has the meaning given such term in section 104 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12704).
          (7) Qualified foreclosed housing.--The term ``qualified 
        foreclosed housing'' means housing that--
                  (A)(i) is single family housing that is not occupied 
                by an owner, pursuant to foreclosure or assignment of 
                the mortgage on the housing or forfeiture of the 
                housing; or
                  (ii) is covered multifamily housing;
                  (B) is owned by a lender, mortgage company, investor, 
                financial institution, or other such entity, or any 
                government entity, pursuant to foreclosure or 
                assignment of the mortgage on the housing or forfeiture 
                of the housing; and
                  (C) has a purchase price--
                          (i) in the case of single family housing, 
                        that does not exceed 110 percent of the average 
                        purchase price for single family housing in the 
                        area in which the housing is located, as 
                        determined by the Secretary.
                          (ii) in the case of covered multifamily 
                        housing, that does not exceed the dollar amount 
                        limitation, for housing of the applicable size 
                        located in the area in which the housing is 
                        located, on the amount of a principal 
                        obligation of a mortgage eligible for insurance 
                        under section 207 of the National Housing Act 
                        (12 U.S.C. 1713), as in effect on the date of 
                        the enactment of this Act pursuant to such 
                        section 207(c)(3)(A) and section 206A of such 
                        Act (12 U.S.C. 1712a).
          (8) Qualified metropolitan city.--The term ``qualified 
        metropolitan city'' means an incorporated place, for which 
        there is an improved plan, that--
                  (A) is among the 100 most populous incorporated 
                places in the United States, as determined according to 
                data from the most recent decennial census that is 
                published before the date of the enactment of this Act; 
                or
                  (B)(i) has a minimum population of 50,000, as 
                determined according to data from the most recent 
                decennial census that is published before the date of 
                the enactment of this Act; and
                  (ii) has a foreclosure rate that exceeds 125 percent 
                of the foreclosure rate for the entire State
          (9) Qualified state.--The term ``qualified State'' means a 
        State for which there is an approved plan.
          (10) Qualified urban county.--The term ``qualified urban 
        county'' means an urban county (as such term is defined in 
        section 102 of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5302)), for which there is an approved plan, 
        that is among the 50 most populous urban counties in the United 
        States, as determined--
                  (A) according to data from the most recent decennial 
                census; and
                  (B) excluding the population of any qualified 
                metropolitan city within such urban county, unless such 
                metropolitan city has agreed to have its population 
                included with the population of the county for the 
                purposes of this Act.
          (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
          (12) Single family housing.--The term ``single family 
        housing'' means a residential structure consisting of from one 
        to four dwelling units.
          (13) State.--The term ``State'' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, Guam, 
        the Virgin Islands, American Samoa, and other territory or 
        possession of the United States.

SEC. 14. FUNDING.

  (a) Grants.--There is authorized to be appropriated to the Secretary 
of the Treasury $7,500,000,000 for grants under this Act.
  (b) Direct Loans.--
          (1) Loan commitment authority limitation.--Subject only to 
        the availability of sufficient amounts for 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 loans and the absence of 
        qualified requests for loans, the Secretary shall enter into 
        commitments to make loans under this Act, and shall make such 
        loans, in an amount such that the aggregate outstanding 
        principal balance of such loans does not at any time exceed 
        $7,500,000,000.
          (2) Authorization of appropriations for costs.--There is 
        authorized to be appropriated such sums as may be necessary for 
        costs (as such term is defined in section 502 of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a)) of loans under this 
        Act.

SEC. 15. REGULATIONS AND IMPLEMENTATION.

  (a) Regulations.--The Secretary shall issue any regulations necessary 
to carry out this Act.
  (b) Implementation.--Pending the effectiveness of regulations issued 
pursuant to subsection (a), the Secretary shall take such action as may 
be necessary to implement this Act by notice, guidance, and interim 
rules.

                          PURPOSE AND SUMMARY

    H.R. 5818, the Neighborhood Stabilization Act of 2008, 
establishes a loan and grant program administered by the 
Department of Housing and Urban Development to help States 
purchase and rehabilitate owner-vacated, foreclosed homes. The 
goal of the bill is to stabilize and occupy these properties as 
soon as possible, either through resale or rental to qualified 
low- and moderate-income families.
    The bill, as reported, establishes a $15 billion HUD-
administered program of which $7.5 billion of the funds would 
be for loans and the other $7.5 billion would be for grants. 
Each State's loan and grant authority is based on the State's 
percentage of nationwide foreclosures over the last four 
calendar quarters and the number of subprime loans delinquent 
over 90 days, adjusted to account for the State's relative 
median home price, except that the median home price factor may 
increase any state's share by no more than 25 percent. In the 
event of a surplus, States at the limit will receive a 
preference for any excess funds. States then allocate funds to 
government entities or for profit and nonprofit organizations 
for the purchase, rehabilitation, and resale of homeownership 
housing and the purchase, rehabilitation, and operation of 
rental housing. States are required to direct funds to 
qualified metropolitan cities and urban counties within their 
bounds. The bill requires a State to use a portion of the loan 
and grant authority for eligible activities in rural areas 
proportionate to the identified need in those areas.
    Loans are non-recourse and zero-interest to finance 
acquisition and rehabilitation costs. The federal government 
would be paid back from resale or, in the case of rental 
properties, refinance proceeds. Loans for homeownership 
properties must be repaid within three years. For rental 
properties, the maximum loan term is five years. In addition, 
the federal government would receive a percentage of any 
appreciation a property owner realizes at resale. Grant funds 
may be used for property taxes and insurance during the pre-
occupancy phase, operating costs such as property management 
fees, and State and grantee administrative and planning costs. 
Grants may also cover incidental costs involved in acquiring 
qualified foreclosed housing such as reasonable closing costs, 
and rehabilitation costs.
    Homes purchased for resale must be sold to families with 
incomes that do not exceed 140 percent of local area median 
income (AMI). Properties purchased for rental must serve 
families having incomes at or below local AMI. Allocation 
recipients are required to give a preference to activities 
serving the lowest income families for the longest period and 
homeowners whose mortgages have been foreclosed. Allocation 
recipients may establish preferences for otherwise income-
eligible first responders, veterans, public school teachers, 
workforce, and homeless persons. At least 50 percent of the 
grant money must be targeted to house families at or below 50 
percent of local AMI, and not less than half of this money must 
target families at or below 30 percent of local AMI. Under 
specified circumstances, HUD may establish an alternative 
percentage of less than 50 percent to serve extremely low-
income families (those at or below 30 percent of local AMI.) 
The bill would also explicitly prohibit discrimination against 
voucher holders and provide eviction protections for tenants in 
foreclosed properties acquired with funds made available under 
the Act.

                  BACKGROUND AND NEED FOR LEGISLATION

    A record number of American families are facing or are at 
risk of foreclosure. According to data from the Mortgage 
Bankers Association (MBA), the delinquency rate for mortgage 
loans on single-family properties stood at 5.82 percent of all 
loans outstanding in the fourth quarter of 2007, up almost 20 
percent from one year ago. This is the highest total 
delinquency rate in the MBA survey in over 20 years. Further, 
this delinquency data does not take into account loans in the 
foreclosure process. The percentage of loans in the foreclosure 
process has risen over 70 percent in the last year and stands 
at the highest level ever. As part of its response to the 
housing crisis, the Committee held a two-day legislative 
hearing entitled ``Using FHA for Housing Stabilization and 
Homeownership Retention'', on April 9 and 10, 2008, In 
testimony before the Committee at the April 9th hearing, 
Chairman Sheila Bair of the Federal Deposit Insurance 
Corporation (FDIC) also cited data from the MBA and observed 
that over 20 percent of subprime adjustable rate mortgages 
(ARMs) were seriously delinquent in the fourth quarter of 2007, 
and over 14 percent of all subprime mortgages were seriously 
delinquent.
    According to Mark Zandi of Economy.com, 550,000 first 
mortgage loans were in default as of the end of January 2008. 
This pace would leave 2.2 million defaults this year and could 
go as high as 3 million. In addition, Mr. Zandi also notes 
nearly 8.8 million homeowners, or 10 percent of all homeowners, 
are ``underwater.'' Similarly, Governor Randall Kroszner of the 
Federal Reserve testified before the Committee on April 9, that 
more than 1.5 million foreclosures were started during 2007, up 
53 percent from the previous year, and the consensus 
expectation is that the number of foreclosures in 2008 will 
likely exceed the number in 2007.
    Rising delinquency and foreclosure rates have reverberated 
in the secondary market, decreasing the value of mortgage 
backed securities and reducing the availability of credit. 
Accordingly, lenders have tightened credit standards, making it 
more difficult for delinquent borrowers to refinance. Chairman 
Bair noted the sharp contraction in credit availability in her 
April 9th testimony, stating that the total U.S. mortgage debt 
originated in the fourth quarter of 2007 was $450 billion, down 
38 percent from the fourth quarter of 2006, and that the total 
issuance of subprime mortgage-backed securities fell by 89 
percent in the fourth quarter of 2007 compared to the prior 
year.
    At the same time, because of falling home prices in many 
parts of the country, many borrowers--even those current on 
their mortgages--find themselves unable to refinance into more 
affordable or fixed-rate products because their outstanding 
mortgage loan balances exceed their homes' values. These 
borrowers' inability to refinance before a rate reset may be 
creating a downward cycle with increasing foreclosure rates, 
which in turn further lowers local property values, further 
eroding credit availability. In addition to lowering local home 
values and tax revenues due to declining assessed valuations, 
vacant foreclosed properties are a drain on local government 
resources. These properties attract crime, vandalism, and arson 
and contribute to the blight associated with abandoned 
properties.
    As mentioned above, on April 9 and 10, 2008, the Committee 
held a two-day hearing on ``Using the FHA for Housing 
Stabilization and Homeownership Retention.'' This hearing 
examined a discussion draft of the Housing Stabilization and 
Homeownership Retention Act distributed to the public on March 
13, 2008. The second day of the hearings (April 10th) focused 
on Title III of the discussion draft, which became the basis 
for H.R. 5818. At the hearing, Maryland Governor Martin 
O'Malley testified that, ``The proposed $[15] billion fund 
administered by states to acquire, rehabilitate, and sell 
foreclosed homes will provide a critical tool to curtail the 
negative impacts foreclosures have on our neighborhoods and 
communities.'' In addition, Doug Garver of the Ohio Housing 
Finance Agency testified that the ``legislation's proposed 
state loan and grant program would significantly strengthen and 
expand state HFA [housing finance agency] initiatives.''
    The Committee heard testimony from Mayors Thomas Menino and 
Oscar Goodman expressing concern that the discussion draft of 
the bill distributed all funding to States, rather than 
enabling cities and other Community Development Block Grant-
eligible entities administer the funds. In response, H.R. 5818 
as introduced requires States to automatically allocate funds 
to any of the most populous 25 cities in the country that lie 
within their bounds. During mark-up, such direct allocations 
were expanded to include: (1) the 100 most populous cities; (2) 
the 50 most populous counties; and (3) any city with a 
population greater than 50,000 and a foreclosure rate 1.25 
times the statewide average.
    The Committee also received testimony on the impact of the 
foreclosure crisis on low-income people. Doug Garver noted that 
that foreclosed properties are especially concentrated in 
lower-income neighborhoods, which were targeted by subprime 
lenders. Mr. Garver emphasized the need to have vacant 
properties quickly resold or put to some other productive use, 
otherwise they destabilize often already fragile communities by 
further depressing home values, discouraging investment, and 
contributing to vagrancy and crime. Sheila Crowley, testifying 
on behalf of the National Low Income Housing Coalition, 
presented testimony about the large percentage of housing 
counseling clients in crisis with incomes at or below 50 
percent of the local area median income. The Committee also 
understands that the housing problems of low-income homeowners 
and renters due to foreclosures are increased by the well 
established problem of a shortage of affordable housing. Given 
both the immediate and long-standing housing crisis for low-
income people, several witnesses at the April 10th hearing 
testified about the need to target foreclosed properties funds 
to low-income families.
    The Committee is also well aware that many middle-income 
families and communities are seriously affected by the current 
foreclosure crisis. Given this reality, the Committee received 
recommendations for adopting legislation that includes broader 
targeting than what usually applies to federal housing 
programs, particularly in the homeownership area. In addition 
to helping middle-income families, as Mr. Garver noted in his 
testimony, broader income targeting for the funds to 
rehabilitate foreclosed properties may also help to promote 
economic integration.
    The Committee received testimony on the need for 
protections for tenants when the owners of their homes lose 
their property to foreclosure. Although some states have 
enacted tenant protection laws that give these tenants a 
reasonable period of time to relocate, others have not. The 
forms of protection recommended included, among other things, 
providing tenants in the foreclosed property with adequate 
notice if being required to vacate and requiring the new owner 
to honor the terms of the existing lease, in both single family 
and multi-family properties.

                                HEARINGS

    The Committee on Financial Services held a two-day hearing 
entitled ``Using FHA for Housing Stabilization and 
Homeownership Retention'' on April 9 and 10, 2008. The 
following witnesses testified on April 9th.

Panel One

    The Honorable Sheila C. Bair, Chairman, Federal Deposit 
Insurance Corporation
    The Honorable John C. Dugan, Comptroller, Office of the 
Comptroller of the Currency
    The Honorable John M. Reich, Director, Office of Thrift 
Supervision
    The Honorable Randall Kroszner, Board Member, Board of 
Governors of the Federal Reserve System
    The Honorable Brian Montgomery, Assistant Secretary for 
Housing--Federal Housing Commissioner, United States Department 
of Housing and Urban Development

Panel Two

    Mr. Brian Wesbury, Chief Economist, First Trust Advisors 
L.P.
    Dr. Alan S. Blinder, Ph.D., Gordon S. Rentschler Memorial 
Professor of Economics and Public Affairs, Princeton University
    Dr. Allen Sinai, Chief Global Economist, Strategist and 
President, Decision Economics, Inc.
    The following witnesses testified on April 10th:

Panel One

    The Honorable Martin O'Malley, Governor, State of Maryland
    The Honorable Adrian M. Fenty, Mayor, District of Columbia
    The Honorable Thomas M. Menino, Mayor, City of Boston, 
Massachusetts
    The Honorable Oscar B. Goodman, Mayor, City of Las Vegas, 
Nevada

Panel Two

    Mr. Doug Garver, Executive Director, Ohio Housing Finance 
Agency
    Mr. David C. Lizarraga, Chairman, US Hispanic Chamber of 
Commerce
    Ms. Sheila Crowley, President, National Low Income Housing 
Coalition
    Mr. Hilary O. Shelton, Director, NAACP Washington Bureau
    Mr. Victor Burrola, Director, Homeownership Network, 
National Council of La Raza

                        COMMITTEE CONSIDERATION

    The Committee on Financial Services met in open session on 
April 23, 2008, and ordered H.R. 5818, the ``Neighborhood 
Stabilization Act of 2008'', as amended, favorably reported by 
a record vote of 38 yeas and 26 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Frank to report the bill, as amended, to the 
House with a favorable recommendation was agreed to by a record 
vote of 38 yeas and 26 nays (Record vote FC-90). The names of 
Members voting for and against follow:

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................        X  ........  ........  Mr. Bachus.........  ........        X   ........
Mr. Kanjorski...................        X  ........  ........  Ms. Pryce (OH).....        X   ........  ........
Ms. Waters......................        X  ........  ........  Mr. Castle.........  ........        X   ........
Mrs. Maloney....................        X  ........  ........  Mr. King (NY)......  ........        X   ........
Mr. Gutierrez...................  .......  ........  ........  Mr. Royce..........  ........        X   ........
Ms. Velazquez...................  .......  ........  ........  Mr. Lucas..........  ........        X   ........
Mr. Watt........................        X  ........  ........  Mr. Paul...........  ........        X   ........
Mr. Ackerman....................        X  ........  ........  Mr. LaTourette.....        X   ........  ........
Mr. Sherman.....................        X  ........  ........  Mr. Manzullo.......  ........        X   ........
Mr. Meeks.......................        X  ........  ........  Mr. Jones..........  ........        X   ........
Mr. Moore (KS)..................        X  ........  ........  Mrs. Biggert.......  ........        X   ........
Mr. Capuano.....................        X  ........  ........  Mr. Shays..........        X   ........  ........
Mr. Hinojosa....................        X  ........  ........  Mr. Miller (CA)....  ........        X   ........
Mr. Clay........................        X  ........  ........  Mrs. Capito........  ........        X   ........
Mrs. McCarthy...................        X  ........  ........  Mr. Feeney.........  ........  ........  ........
Mr. Baca........................        X  ........  ........  Mr. Hensarling.....  ........        X   ........
Mr. Lynch.......................        X  ........  ........  Mr. Garrett (NJ)...  ........        X   ........
Mr. Miller (NC).................        X  ........  ........  Ms. Brown-Waite....  ........  ........  ........
Mr. Scott.......................        X  ........  ........  Mr. Barrett (SC)...  ........        X   ........
Mr. Green.......................        X  ........  ........  Mr. Gerlach........  ........        X   ........
Mr. Cleaver.....................        X  ........  ........  Mr. Pearce.........  ........        X   ........
Ms. Bean........................        X  ........  ........  Mr. Neugebauer.....  ........        X   ........
Ms. Moore (WI)..................        X  ........  ........  Mr. Price (GA).....  ........        X   ........
Mr. Davis (TN)..................        X  ........  ........  Mr. Davis (KY).....  ........        X   ........
Mr. Hodes.......................        X  ........  ........  Mr. McHenry........  ........        X   ........
Mr. Ellison.....................        X  ........  ........  Mr. Campbell.......  ........  ........  ........
Mr. Klein.......................        X  ........  ........  Mr. Putnam.........  ........  ........  ........
Mr. Mahoney (FL)................        X  ........  ........  Mrs. Bachmann......  ........        X   ........
Mr. Wilson......................        X  ........  ........  Mr. Roskam.........  ........        X   ........
Mr. Perlmutter..................        X  ........  ........  Mr. Marchant.......  ........        X   ........
Mr. Murphy......................        X  ........  ........  Mr. McCotter.......  ........        X   ........
Mr. Donnelly....................        X  ........  ........  Mr. McCarthy.......  ........        X   ........
Mr. Wexler......................        X  ........  ........  Mr. Heller.........  ........        X   ........
Mr. Marshall....................        X  ........  ........
Mr. Boren.......................        X  ........  ........
Mr. Foster......................        X  ........  ........
Mr. Carson......................        X  ........  ........
----------------------------------------------------------------------------------------------------------------

    The following amendments were disposed of by record votes. 
The names of Members voting for and against follow:
    An amendment by Mr. Price, No. 7, requiring offsets, was 
NOT AGREED TO by a record vote of 26 yeas and 34 nays (FC-86):

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................  .......        X   ........  Mr. Bachus.........        X   ........  ........
Mr. Kanjorski...................  .......        X   ........  Ms. Pryce (OH).....  ........  ........  ........
Ms. Waters......................  .......        X   ........  Mr. Castle.........        X   ........  ........
Mrs. Maloney....................  .......        X   ........  Mr. King (NY)......        X   ........  ........
Mr. Gutierrez...................  .......        X   ........  Mr. Royce..........        X   ........  ........
Ms. Velazquez...................  .......  ........  ........  Mr. Lucas..........        X   ........  ........
Mr. Watt........................  .......        X   ........  Mr. Paul...........        X   ........  ........
Mr. Ackerman....................  .......        X   ........  Mr. LaTourette.....  ........        X   ........
Mr. Sherman.....................  .......        X   ........  Mr. Manzullo.......        X   ........  ........
Mr. Meeks.......................  .......        X   ........  Mr. Jones..........        X   ........  ........
Mr. Moore (KS)..................  .......            ........  Mrs. Biggert.......        X   ........  ........
Mr. Capuano.....................  .......        X   ........  Mr. Shays..........        X   ........  ........
Mr. Hinojosa....................  .......        X   ........  Mr. Miller (CA)....        X   ........  ........
Mr. Clay........................  .......        X   ........  Mrs. Capito........        X   ........  ........
Mrs. McCarthy...................  .......        X   ........  Mr. Feeney.........  ........  ........  ........
Mr. Baca........................  .......        X   ........  Mr. Hensarling.....        X   ........  ........
Mr. Lynch.......................  .......        X   ........  Mr. Garrett (NJ)...        X   ........  ........
Mr. Miller (NC).................  .......        X   ........  Ms. Brown-Waite....  ........  ........  ........
Mr. Scott.......................  .......        X   ........  Mr. Barrett (SC)...        X   ........  ........
Mr. Green.......................  .......        X   ........  Mr. Gerlach........        X   ........  ........
Mr. Cleaver.....................  .......        X   ........  Mr. Pearce.........        X   ........  ........
Ms. Bean........................  .......        X   ........  Mr. Neugebauer.....        X   ........  ........
Ms. Moore (WI)..................  .......        X   ........  Mr. Price (GA).....        X   ........  ........
Mr. Davis (TN)..................  .......  ........  ........  Mr. Davis (KY).....        X   ........  ........
Mr. Hodes.......................  .......        X   ........  Mr. McHenry........        X   ........  ........
Mr. Ellison.....................  .......  ........  ........  Mr. Campbell.......  ........  ........  ........
Mr. Klein.......................  .......        X   ........  Mr. Putnam.........  ........  ........  ........
Mr. Mahoney (FL)................  .......        X   ........  Mrs. Bachmann......        X   ........  ........
Mr. Wilson......................  .......        X   ........  Mr. Roskam.........  ........  ........  ........
Mr. Perlmutter..................  .......        X   ........  Mr. Marchant.......        X   ........  ........
Mr. Murphy......................  .......        X   ........  Mr. McCotter.......        X   ........  ........
Mr. Donnelly....................  .......        X   ........  Mr. McCarthy.......        X   ........  ........
Mr. Wexler......................  .......        X   ........  Mr. Heller.........        X   ........  ........
Mr. Marshall....................  .......        X   ........
Mr. Boren.......................  .......        X   ........
Mr. Foster......................  .......        X   ........
Mr. Carson......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Hensarling, No. 8, regarding loans only 
at the same cost, was NOT AGREED TO by a record vote of 25 yeas 
and 37 nays (FC-87).

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................  .......        X   ........  Mr. Bachus.........        X   ........  ........
Mr. Kanjorski...................  .......        X   ........  Ms. Pryce (OH).....  ........        X   ........
Ms. Waters......................  .......        X   ........  Mr. Castle.........  ........        X   ........
Mrs. Maloney....................  .......        X   ........  Mr. King (NY)......        X   ........  ........
Mr. Gutierrez...................  .......        X   ........  Mr. Royce..........        X   ........  ........
Ms. Velazquez...................  .......  ........  ........  Mr. Lucas..........        X   ........  ........
Mr. Watt........................  .......        X   ........  Mr. Paul...........        X   ........  ........
Mr. Ackerman....................  .......        X   ........  Mr. LaTourette.....  ........        X   ........
Mr. Sherman.....................  .......        X   ........  Mr. Manzullo.......        X   ........  ........
Mr. Meeks.......................  .......        X   ........  Mr. Jones..........        X   ........  ........
Mr. Moore (KS)..................  .......        X   ........  Mrs. Biggert.......        X   ........  ........
Mr. Capuano.....................  .......        X   ........  Mr. Shays..........        X   ........  ........
Mr. Hinojosa....................  .......        X   ........  Mr. Miller (CA)....        X   ........  ........
Mr. Clay........................  .......        X   ........  Mrs. Capito........        X   ........  ........
Mrs. McCarthy...................  .......        X   ........  Mr. Feeney.........  ........  ........  ........
Mr. Baca........................  .......        X   ........  Mr. Hensarling.....        X   ........  ........
Mr. Lynch.......................  .......        X   ........  Mr. Garrett (NJ)...        X   ........  ........
Mr. Miller (NC).................  .......        X   ........  Ms. Brown-Waite....  ........  ........  ........
Mr. Scott.......................  .......        X   ........  Mr. Barrett (SC)...        X   ........  ........
Mr. Green.......................  .......        X   ........  Mr. Gerlach........        X   ........  ........
Mr. Cleaver.....................  .......        X   ........  Mr. Pearce.........        X   ........  ........
Ms. Bean........................  .......        X   ........  Mr. Neugebauer.....        X   ........  ........
Ms. Moore (WI)..................  .......        X   ........  Mr. Price (GA).....        X   ........  ........
Mr. Davis (TN)..................  .......  ........  ........  Mr. Davis (KY).....        X   ........  ........
Mr. Hodes.......................  .......        X   ........  Mr. McHenry........        X   ........  ........
Mr. Ellison.....................  .......  ........  ........  Mr. Campbell.......  ........  ........  ........
Mr. Klein.......................  .......        X   ........  Mr. Putnam.........  ........  ........  ........
Mr. Mahoney (FL)................  .......        X   ........  Mrs. Bachmann......        X   ........  ........
Mr. Wilson......................  .......        X   ........  Mr. Roskam.........  ........  ........  ........
Mr. Perlmutter..................  .......        X   ........  Mr. Marchant.......        X   ........  ........
Mr. Murphy......................  .......        X   ........  Mr. McCotter.......        X   ........  ........
Mr. Donnelly....................  .......        X   ........  Mr. McCarthy.......        X   ........  ........
Mr. Wexler......................  .......        X   ........  Mr. Heller.........        X   ........  ........
Mr. Marshall....................  .......        X   ........
Mr. Boren.......................  .......        X   ........
Mr. Foster......................  .......        X   ........
Mr. Carson......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Hensarling, No. 9, requiring matching 
State funds for grants, was NOT AGREED TO by a record vote of 
28 yeas and 36 nays (FC-88).

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................  .......        X   ........  Mr. Bachus.........        X   ........  ........
Mr. Kanjorski...................  .......        X   ........  Ms. Pryce (OH).....        X   ........  ........
Ms. Waters......................  .......        X   ........  Mr. Castle.........        X   ........  ........
Mrs. Maloney....................  .......        X   ........  Mr. King (NY)......        X   ........  ........
Mr. Gutierrez...................  .......        X   ........  Mr. Royce..........        X   ........  ........
Ms. Velazquez...................  .......  ........  ........  Mr. Lucas..........        X   ........  ........
Mr. Watt........................  .......        X   ........  Mr. Paul...........        X   ........  ........
Mr. Ackerman....................  .......        X   ........  Mr. LaTourette.....  ........        X   ........
Mr. Sherman.....................  .......        X   ........  Mr. Manzullo.......        X   ........  ........
Mr. Meeks.......................  .......        X   ........  Mr. Jones..........        X   ........  ........
Mr. Moore (KS)..................  .......        X   ........  Mrs. Biggert.......        X   ........  ........
Mr. Capuano.....................  .......        X   ........  Mr. Shays..........        X   ........  ........
Mr. Hinojosa....................  .......        X   ........  Mr. Miller (CA)....        X   ........  ........
Mr. Clay........................  .......        X   ........  Mrs. Capito........        X   ........  ........
Mrs. McCarthy...................  .......        X   ........  Mr. Feeney.........  ........  ........  ........
Mr. Baca........................  .......        X   ........  Mr. Hensarling.....        X   ........  ........
Mr. Lynch.......................  .......        X   ........  Mr. Garrett (NJ)...        X   ........  ........
Mr. Miller (NC).................  .......        X   ........  Ms. Brown-Waite....  ........  ........  ........
Mr. Scott.......................  .......        X   ........  Mr. Barrett (SC)...        X   ........  ........
Mr. Green.......................  .......        X   ........  Mr. Gerlach........        X   ........  ........
Mr. Cleaver.....................  .......        X   ........  Mr. Pearce.........        X   ........  ........
Ms. Bean........................  .......        X   ........  Mr. Neugebauer.....        X   ........  ........
Ms. Moore (WI)..................  .......        X   ........  Mr. Price (GA).....        X   ........  ........
Mr. Davis (TN)..................  .......        X   ........  Mr. Davis (KY).....        X   ........  ........
Mr. Hodes.......................  .......        X   ........  Mr. McHenry........        X   ........  ........
Mr. Ellison.....................  .......  ........  ........  Mr. Campbell.......  ........  ........  ........
Mr. Klein.......................  .......        X   ........  Mr. Putnam.........  ........  ........  ........
Mr. Mahoney (FL)................  .......        X   ........  Mrs. Bachmann......        X   ........  ........
Mr. Wilson......................  .......        X   ........  Mr. Roskam.........        X   ........  ........
Mr. Perlmutter..................  .......        X   ........  Mr. Marchant.......        X   ........  ........
Mr. Murphy......................  .......        X   ........  Mr. McCotter.......        X   ........  ........
Mr. Donnelly....................  .......        X   ........  Mr. McCarthy.......        X   ........  ........
Mr. Wexler......................  .......        X   ........  Mr. Heller.........        X   ........  ........
Mr. Marshall....................  .......        X   ........
Mr. Boren.......................  .......        X   ........
Mr. Foster......................  .......        X   ........
Mr. Carson......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. McHenry, No. 13, requiring qualified 
foreclosed housing be resold at public auction, was NOT AGREED 
TO by a record vote of 24 yeas and 40 nays (FC-89).

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................  .......        X   ........  Mr. Bachus.........        X   ........  ........
Mr. Kanjorski...................  .......        X   ........  Ms. Pryce (OH).....        X   ........  ........
Ms. Waters......................  .......        X   ........  Mr. Castle.........  ........        X   ........
Mrs. Maloney....................  .......        X   ........  Mr. King (NY)......        X   ........  ........
Mr. Gutierrez...................  .......        X   ........  Mr. Royce..........        X   ........  ........
Ms. Velazquez...................  .......  ........  ........  Mr. Lucas..........        X   ........  ........
Mr. Watt........................  .......        X   ........  Mr. Paul...........        X   ........  ........
Mr. Ackerman....................  .......        X   ........  Mr. LaTourette.....  ........        X   ........
Mr. Sherman.....................  .......        X   ........  Mr. Manzullo.......        X   ........  ........
Mr. Meeks.......................  .......        X   ........  Mr. Jones..........        X   ........  ........
Mr. Moore (KS)..................  .......        X   ........  Mrs. Biggert.......        X   ........  ........
Mr. Capuano.....................  .......        X   ........  Mr. Shays..........  ........        X   ........
Mr. Hinojosa....................  .......        X   ........  Mr. Miller (CA)....        X   ........  ........
Mr. Clay........................  .......        X   ........  Mrs. Capito........        X   ........  ........
Mrs. McCarthy...................  .......        X   ........  Mr. Feeney.........  ........  ........  ........
Mr. Baca........................  .......        X   ........  Mr. Hensarling.....        X   ........  ........
Mr. Lynch.......................  .......        X   ........  Mr. Garrett (NJ)...        X   ........  ........
Mr. Miller (NC).................  .......        X   ........  Ms. Brown-Waite)...  ........  ........  ........
Mr. Scott.......................  .......        X   ........  Mr. Barrett (SC)...  ........  ........  ........
Mr. Green.......................  .......        X   ........  Mr. Gerlach........  ........        X   ........
Mr. Cleaver.....................  .......        X   ........  Mr. Pearce.........        X   ........  ........
Ms. Bean........................  .......        X   ........  Mr. Neugebauer.....        X   ........  ........
Ms. Moore (WI)..................  .......        X   ........  Mr. Price (GA).....        X   ........  ........
Mr. Davis (TN)..................  .......        X   ........  Mr. Davis (KY).....        X   ........  ........
Mr. Hodes.......................  .......        X   ........  Mr. McHenry........        X   ........  ........
Mr. Ellison.....................  .......        X   ........  Mr. Campbell.......  ........  ........  ........
Mr. Klein.......................  .......        X   ........  Mr. Putnam.........  ........  ........  ........
Mr. Mahoney (FL)................  .......        X   ........  Mrs. Bachmann......        X   ........  ........
Mr. Wilson......................  .......        X   ........  Mr. Roskam.........        X   ........  ........
Mr. Perlmutter..................  .......        X   ........  Mr. Marchant.......        X   ........  ........
Mr. Murphy......................  .......        X   ........  Mr. McCotter.......        X   ........  ........
Mr. Donnelly....................  .......        X   ........  Mr. McCarthy.......        X   ........  ........
Mr. Wexler......................  .......        X   ........  Mr. Heller.........        X   ........  ........
Mr. Marshall....................  .......        X   ........
Mr. Boren.......................  .......        X   ........
Mr. Foster......................  .......        X   ........
Mr. Carson......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    During the consideration of the bill, the following 
amendments were also considered:
    An amendment by Ms. Waters and Mr. Frank, No. 1, making 
technical and substantive changes, was AGREED TO by voice vote.
    An amendment by Mr. Miller of North Carolina, No. 2, 
regarding qualified metropolitan cities, was AGREED TO by voice 
vote.
    An amendment by Mr. Perlmutter, No. 3, regarding energy 
efficiency improvements, was AGREED TO by voice vote.
    An amendment by Mr. Capuano, Mrs. McCarthy of New York, and 
Mr. Carson, No. 4, instituting preferences for housing, was 
AGREED TO by a voice vote.
    An amendment by Mr. Wilson, No. 5, dealing with demolition 
costs and prohibition of demolition of public housing with 
funds or grants, was AGREED TO, as amended, by voice vote.
    An amendment by Mr. Price, No. 5a, to amendment No. 5, was 
divided: the first portion was AGREED TO by voice vote and the 
second portion was WITHDRAWN.
    An amendment by Mr. Wilson, Mr. LaTourette, and Ms. Pryce, 
No. 6, establishing a formula for grant share or foreclosure 
loan share, was AGREED TO by voice vote.
    An amendment by Mr. Hensarling, No. 10, preventing the 
misuse of funds, was AGREED TO by voice vote.
    An amendment by Mr. Hensarling, No. 11, providing a 
monetary penalty for misuse of funds, was AGREED TO, as 
modified, by voice vote.
    An amendment by Mr. Hensarling, No. 12, prohibiting the use 
of grant amounts for downpayment assistance, was AGREED TO, by 
voice vote.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held hearings and 
made findings that are reflected in this report.

                    PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H.R. 5818, the Neighborhood Stabilization Act of 2008, 
establishes a loan and grant program administered by HUD to 
help States purchase and rehabilitate owner-vacated, foreclosed 
homes. The goal of the bill is to stabilize and occupy these 
properties, as soon as possible, either through resale or 
rental to qualified low- and moderate-income families. As 
reported, H.R. 5818 establishes a $15 billion, HUD-administered 
loan and grant program; requires States to allocate funds to 
government entities or for profit and nonprofit organizations 
for the purchase, rehabilitation, and resale of homeownership 
housing and the purchase, rehabilitation, and operation of 
rental housing; requires homes purchased for resale must be 
sold to families with incomes that do not exceed 140 percent of 
local area median income (AMI); requires properties purchased 
for rental must serve families having incomes at or below local 
AMI; and prohibits discrimination against voucher holders and 
provides eviction protections for tenants in foreclosed 
properties assisted with funds made available under this Act.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 1, 2008.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5818, the 
Neighborhood Stabilization Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople, who can be reached at 226-2860.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 5818--Neighborhood Stabilization Act of 2008

    Summary: CBO estimates that implementing H.R. 5818 would 
cost about $8.4 billion over the 2009-2013 period, assuming 
appropriation of the authorized and necessary funds.
    H.R. 5818 would authorize the Secretary of the Department 
of Housing and Urban Development (HUD) to make zero-interest 
loans to qualified states, counties, and cities to purchase and 
rehabilitate certain foreclosed homes. Homes purchased under 
this authority would be sold or rented to families with incomes 
below a specified percentage of the region's median income. 
Assuming appropriation of the necessary funds, CBO estimates 
that implementing this program would cost about $1 billion over 
the 2009-2013 period for the loan subsidy and associated 
administrative costs.
    The legislation also would authorize the appropriation of 
$7.5 billion for the Secretaries of the Treasury and HUD to 
award grants to qualified states, counties, and cities to cover 
other costs related to purchasing and rehabilitating foreclosed 
homes under the direct loan program. Funds would be used to 
cover planning and administration, incidental costs of 
acquiring, operating, and holding foreclosed properties, and 
the costs of rehabilitating and demolishing properties. Based 
on historical spending data and information from local 
governments, CBO estimates that this provision would cost about 
$7.3 billion over the 2009-2013 period. Enacting this 
legislation would not affect direct spending or revenues.
    H.R. 5818 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the federal government: The estimated 
budgetary impact of H.R. 5818 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).


----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                          ------------------------------------------------------
                                                              2009       2010       2011       2012       2013
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Direct Loan Program:
    Subsidy Costs:
        Estimated Authorization Level....................        900          0          0        145          0
        Estimated Outlays................................        505        360         35         80         60
    Administrative Costs:
        Estimated Authorization Level....................         15          7          7          8          8
        Estimated Outlays................................         14          8          7          8          8
Grant Program:
    Authorization Level..................................      7,500          0          0          0          0
    Estimated Outlays....................................        675      1,725      2,250      1,725        940
      Total Changes:
        Estimated Authorization Level....................      8,415          7          7        153          8
        Estimated Outlays................................      1,194      2,093      2,292      1,813      1,008
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted before the end of calendar year 
2008 and that the amounts specified and estimated to be 
necessary will be appropriated in each year.
    H.R. 5818 would authorize the Secretaries of the Treasury 
and HUD to provide grants and direct loans to purchase and 
rehabilitate certain foreclosed homes. Eligible recipients 
would include states, urban counties, and metropolitan cities 
(including any city with a minimum population of 50,000 that 
has a foreclosure rate of more than 125 percent of the rate for 
the state in which it is located). Grant assistance also would 
be made available to nonprofit organizations. Funding from the 
grant and loan programs would be allocated to those entities 
based on the number of single- family homes that are in 
foreclosure or were financed with a sub-prime mortgage that has 
been delinquent for more than 90 days.

Direct Loan Program

    H.R. 5818 would authorize the appropriation of such funds 
as may be necessary for the Secretary of HUD to make zero-
interest loans to states, counties, and cities. Under the bill, 
the volume of outstanding loans would be capped at $7.5 billion 
and the authority to make new loans would expire four years 
after enactment. Loan proceeds would be used by state or local 
governments to purchase foreclosed homes. Those homes would be 
made available by those governments for sale to individuals 
with incomes below 140 percent of the area's median income, or 
for rent to those with incomes below 100 percent of the area's 
median income. Loan proceeds also could be used to rehabilitate 
homes to comply with applicable building codes and to increase 
energy efficiency. Federal loans used by state or local 
governments to purchase homes for resale or rent would have 
terms of three or five years, respectively. All loans made 
under the bill would be nonrecourse (the federal government 
could only seek recovery of the collateral in the event of a 
default), bear no interest, and require principal payment only 
upon the expiration of the loan term.
    Based on the loan terms specified in the bill, CBO 
estimates that the subsidy cost for the first cohort of loans 
made under this legislation would total $900 million over the 
2009-2013 period. That estimate includes a subsidy rate of 
about 12 percent (most of which is attributable to the fact 
that no interest would be charged on the loans) and assumes 
that most of the loan authority made available under the bill 
would be used.
    Under the bill, HUD also would be authorized to make new 
direct loans as the principal from the original cohort of loans 
is repaid. Because the authority to make new loans would expire 
after four years, new loan authority would be limited to 
repayments made on the initial cohort of loans prior to the 
expiration of the program. The Federal Credit Reform Act of 
1990 requires that new loan obligations may only be made to the 
extent that new budget authority is provided. As such, CBO 
assumes that additional appropriations would be provided by the 
Congress to cover the cost of those new loans. CBO estimates 
that additional loans made under this revolving authority would 
require appropriations of about $145 million in 2012, with 
outlays of $140 million over the 2012-2013 period.

Grant Program

    H.R. 5818 would authorize the appropriation of $7.5 billion 
for the Secretaries of the Treasury and HUD to make grants to 
states, counties, cities, and nonprofit organizations. Such 
funding would be used for planning and administration, 
incidental costs of acquiring foreclosed properties, costs of 
operating and holding those properties (including local 
property taxes and insurance), and rehabilitation and 
demolition costs. Based on historical spending patterns of 
community development and housing projects and information from 
several local governments, CBO estimates that implementing this 
provision would cost about $7.3 billion over the 2009-2013 
period.
    Intergovernmental and private-sector impact: H.R. 5818 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would benefit state and local 
governments by authorizing grants and loans for purchasing and 
redeveloping foreclosed properties.
    Estimate prepared by: Federal Costs: Daniel Hoople; Impact 
on State, Local, and Tribal Governments: Lisa Ramirez-Branum; 
Impact on the Private Sector: Keisuke Nakagawa.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         EARMARK IDENTIFICATION

    H.R. 5818 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Sec. 1. Short title and table of contents

    This Act may be cited as the ``Neighborhood Stabilization 
Act of 2008''. The Table of Contents for this Act is as 
follows: Sec. 1. Short title and table of contents; Sec. 2. 
Congressional purposes; Sec. 3. Loans and grants to States; 
Sec. 4. Qualified plans; Sec. 5. Allocation of amounts; Sec. 6. 
Loans; Sec. 7. Grants; Sec. 8. Eligible housing stimulus 
activities; Sec. 9. Shared appreciation agreement; Sec. 10. 
Spending requirements; Sec. 11. Servicer contact; Sec. 12. 
Accountability; Sec. 13. Definitions; Sec. 14. Funding; and 
Sec. 15. Regulations and implementation.

Sec. 2. Congressional purposes

    The purposes of this Act are to establish a HUD-
administered loan and grant program to help States, 
metropolitan cities, and urban counties purchase and 
rehabilitate owner-vacated, foreclosed homes with the goal of 
stabilizing and occupying them as soon as possible, either 
through resale or rental to qualified families; distribute 
these loans and grants to areas with the highest foreclosure 
and delinquent subprime mortgage levels; provide incentives for 
States, metropolitan cities, and urban counties to use the 
funds to stabilize as many properties as possible; and provide 
housing for low- and moderate-income families, especially those 
that have lost homes to foreclosure.

Sec. 3. Loans and grants to states

    Provides that HUD will make loans and grants to States in 
accordance with their approved plans for eligible housing 
stimulus activities.

Sec. 4. Qualified plans

    HUD may make a grant or allocate a loan amount to a State 
that has submitted an approved plan that: (1) designates an 
administrator; (2) describes the stimulus activities to be 
carried out with the assistance; (3) prioritizes the allocation 
of funds to low- and moderate-income with high concentrations 
of foreclosures, describes how these activities will help 
stabilize such neighborhoods rapidly, and describes how the 
loan funds will be distributed to facilitate repayment; (4) 
describes the procedures the State will use to allocate loan 
and grant amounts and monitor compliance; (5) provides that 
assistance will only be used for eligible activities; (6) 
contains such assurances as HUD shall require that the 
activities carried out under this Act will not result in a 
significant net loss in rental housing in areas where such 
activities are undertaken; (7) gives priority emphasis and 
consideration to metropolitan areas, metropolitan cities, urban 
areas, rural areas, low- and moderate-income areas, census 
tracts, and other areas having the greatest need, including 
those with the greatest percentage of home foreclosures, the 
highest percentage of homes financed by subprime loans over 90 
days delinquent, or identified as likely to face a significant 
rise in the rate of home foreclosures; (8) provides preference 
to activities serving the lowest income families for the 
longest period and income-eligible homeowners whose mortgages 
have been foreclosed; (9) provides preference for use of grant 
and loan amounts in connection with the acquisition of 
foreclosed properties that are acquired no earlier than 60 days 
after the lender, mortgage company, investor, financial 
institution, or other such entity, or any government entity 
acquired ownership pursuant to foreclosure, assignment, or 
forfeiture; (10) describes any other preferences, such as 
housing for first responders, veterans, nurses serving 
underserved areas, homeless persons in accordance with the 10-
year plan of the State to end homelessness, or public school 
teachers or workforce who are employed by the city or locality 
in which the housing is located; (11) provides for obligation 
and outlay of grant amounts and commitment and disbursement of 
loan amounts; and (12) provides for reinvestment of any returns 
on invested grant or loan amounts into eligible housing 
stimulus activities.
    Plans must be approved by the chief executive office of the 
allocation recipient after a public hearing and submitted to 
HUD within 30 days of bill enactment. HUD must approve or 
disapprove the plan within 30 days of receipt or it is deemed 
approved, and an allocation recipient may submit a revised plan 
within 30 days of receiving a disapproval notice.

Sec. 5. Allocation of amounts

    For each qualified State, HUD must make grants and allocate 
loan authority pursuant to a specified formula. Under the 
formula, HUD is to make funds available in amounts that bear 
the same ratio to the national grant and loan authority as the 
number of foreclosures on mortgages of single-family housing 
and subprime mortgage loans for single-family housing that are 
over 90 days delinquent occurring in such State during the most 
recent four calendar quarters bears to the number of such 
foreclosures and delinquent subprime mortgage loans in all 
qualified States during such calendar quarters, adjusted by a 
HUD-established index to account for differences between 
States' median home prices; except that the median home price 
factor may increase any State's share by no more than 25 
percent. In the event of a surplus, States at the limit will 
receive a preference for any excess funds.
    Requires a State to allocate to a qualified metropolitan 
city or qualified urban county within its bounds for which 
there is an approved plan grants and loan authority in an 
amount that bears the same ratio to the State grant and loan 
authority as the number of foreclosures on mortgages of single-
family housing and subprime mortgage loans for single-family 
housing that are over 90 days delinquent occurring in such 
State during the most recent four calendar quarters bears to 
the number of such foreclosures and delinquent subprime 
mortgage loans in all qualified States during such calendar 
quarters. A State may adjust grant and loan allocations to a 
qualified metropolitan city or qualified urban county to 
account for differences between median single-family housing 
prices in the State and in the metropolitan city or urban 
county. However, if the combined allocation of the grant and 
loan authority amount to a qualified metropolitan city or 
qualified urban county would be less than $10 million, a State 
may, but is not required to, allocate such grant and loan 
authority amount to such metropolitan city or urban county, and 
the allocation for such State is increased by the grant and 
loan authority amount not allocated to the metropolitan city or 
urban county.
    HUD shall recapture any grant or loan authority amounts 
allocated to a State that are not used in a timely fashion. HUD 
shall reallocate such recaptured amounts among all qualified 
States in accordance with the allocation provisions of this 
Act.

Sec. 6. Loans

    Requires that each allocation recipient's loan authority 
amount shall be decreased by the principal obligation of the 
loan upon entering into a binding commitment for use within the 
allocation recipient's area. Upon loan repayment to HUD, an 
allocation recipient's loan authority will increase by the 
amount of loan principal repaid. An allocation recipient may 
enter into a loan agreement on behalf of HUD with the State, a 
unit of local government or local governmental entity, or any 
other entity as provided in the approved plan. Loans are non-
recourse and non-amortizing, bear no interest, have a term of 
maturity of three years for homeownership housing and five 
years for rental housing, and require payment of original 
principal only at the end of the loan term. An allocation 
recipient shall disburse loan amounts, monitor such loans, and 
collect and transmit to HUD loan repayments.
    A loan may be made to an entity that previously borrowed 
loan amounts if the entity repaid 90 percent of more of the 
amounts due under all previous loans. HUD may waive this 
requirement upon request by an allocation recipient if the 
borrower has demonstrated satisfactory progress in using 
outstanding loans and sufficient capacity to use additional 
loan amounts effectively. HUD may not make any loans or enter 
into any loan commitments after the expiration of a 48-month 
period following bill enactment.

Sec. 7. Grants

    The grant amounts may be used by an allocation recipient, a 
unit of local government or a local government entity, or a 
nonprofit organization.

Sec. 8. Eligible housing stimulus activities

    Loan amounts may be used to purchase qualified foreclosed 
housing for (1) resale as homeownership housing to families 
having incomes at or below 140 percent of local area median 
income (AMI) and (2) use as rental, lease-purchase, or rent-to-
own housing for families having incomes at or below 100 percent 
of local AMI at rents that do not exceed comparable market 
rents. Loan amounts may also be used to rehabilitate qualified 
foreclosed housing to the extent necessary to comply with 
applicable laws, codes, and other requirements related to 
housing safety, quality, and habitability or to make 
improvements to the housing to increase the energy efficiency 
or conservation of the housing or provide a renewable energy 
source or sources for the housing. Such rehabilitation should 
be undertaken for the purpose of reselling the housing, to the 
extent possible, during the 3-month period that begins upon 
completion of rehabilitation and at a price that is as close as 
possible to the acquisition price of the housing.
    Grants may be used for (1) operating and holding costs, 
including management costs, taxes, and insurance; (2) 
incidental costs involved in property acquisition, including 
reasonable closing costs; (3) administrative costs of an 
allocation recipient in an amount not to exceed 8 percent of 
the sum of the grant amounts provided to the allocation 
recipient; (4) planning costs of an allocation recipient in 
connection with this Act in an amount not to exceed 2 percent 
of the sum of the grant amounts provided to the allocation 
recipient; and (5) rehabilitation costs to the extent necessary 
to comply with applicable laws, codes, and other requirements 
related to housing safety, quality, and habitability or to make 
improvements to the qualified foreclosed housing to increase 
the energy efficiency or conservation of the housing or provide 
a renewable energy source or sources for the housing. An 
allocation recipient may not use more than 20 percent of its 
grant amount allocation for qualified rehabilitation 
activities.
    Grants may not be used to provide down payment assistance 
for homebuyers of single-family housing or to pay any portion 
of the purchase price for qualified foreclosed housing. Grants 
may be used for demolishing qualified foreclosed housing that 
is deteriorated or unsafe. Grants may be used for this purpose 
only if the Secretary determines that the neighborhood or other 
area in which the housing is located has a high incidence of 
vacant and abandoned housing and is experiencing a significant 
decline in population. However, grant and loan amounts may not 
be used to demolish any public housing.
    Grant and loan amounts may not be used for political 
activities, advocacy, lobbying, counseling services, travel 
expenses, and preparing or providing advice on tax returns.
    At least 50 percent of the grant money must be targeted to 
house very low-income families (defined as those at or below 50 
percent of local AMI). Not less than half of this money must 
target extremely low-income families (defined as those at or 
below 30 percent of local AMI). HUD may establish an 
alternative percentage of less than 50 percent to serve 
extremely low-income families, if an allocation recipient 
certifies that (1) such allocation recipient has attempted to 
use all other federally related resources available to it in 
combination with the resources available under this Act to meet 
this requirement and (2) the failure to comply with this 
requirement will not result in an overall loss of affordable 
housing to families whose incomes do not exceed 30 percent of 
AMI in the allocation recipient's area. In establishing an 
alternative percentage, HUD shall take into account the housing 
needs of families whose incomes do not exceed 30 percent of AMI 
in the allocation recipient's area.
    A State must use a portion of its grant and loan authority 
amount for eligible activities located in rural areas in the 
State that is proportionate to the identified need for such 
activities in these rural areas.
    A State or, at its election, a qualified metropolitan city 
or urban county, will record a lien in the name of the HUD 
Secretary on any foreclosed housing purchased or financed with 
funds provided by this bill in the amount of the principal 
obligation under the loan and interest due under the loan.
    Nothing in the bill prevents the resale of qualified 
foreclosed housing to a prior owner or occupant of such housing 
who meets the income requirements of the Act. The bill 
prohibits a recipient of grant or loan amounts from refusing to 
lease a dwelling unit to a section 8 voucher holder. It also 
provides eviction protections for tenants in foreclosed 
properties acquired with assistance under this Act, including 
section 8 properties. Specifically, any successor in interest 
in qualified foreclosed property assisted with funds provided 
under this Act, shall assume such interest subject to (a) the 
provision, by the successor in interest, of a notice to vacate 
to any bona fide tenant at least 90 days before the effective 
date of the notice to vacate; and (b) the rights of any bona 
fide tenant, as of the date of such notice of foreclosure (i) 
under any bona fide lease entered into before the notice of 
foreclosure to occupy the premises until the end of the 
remaining term of the lease or the end of the 6-month period 
beginning on the date of the notice of foreclosure, whichever 
occurs first, subject to the receipt by the tenant of the 90-
day notice; or (ii) without a lease or with a lease terminable 
at will under State law, subject to the receipt by the tenant 
of the 90-day notice, except that nothing under this 
subparagraph shall affect the requirements for termination of 
any federally subsidized tenancy. A lease or tenancy is bona 
fide if the mortgagor under the contract is not the tenant, the 
lease or tenancy was the result of an arms-length transaction, 
or the lease or tenancy requires the receipt of rent that is 
not substantially less than fair market rent for the property.

Sec. 9. Shared appreciation agreement

    The federal government shall receive 20 percent of any 
appreciation a property owner who receives assistance under 
this Act realizes upon resale or disposition of a qualified 
foreclosed property. The federal government shall receive 50 
percent of any such appreciation if the owner is a for-profit 
entity.

Sec. 10. Spending requirements

    Requires an allocation recipient to (1) begin obligating 
grant amounts and committing loan authority amounts within 120 
days of qualified plan approval, (2) obligate all such grant 
amounts and enter into loan commitments within 180 days of plan 
approval, and (3) outlay all such grant amounts and disburse 
all such loan authority amounts within 24 months of plan 
approval. HUD may extend each of these periods for up to 5 
months upon request by an allocation recipient.

Sec. 11. Servicer contact

    Requires a servicer of a federally related mortgage to 
notify the local government upon becoming responsible for a 
foreclosed property and provide such local government with the 
name and 24-hour contact information of a representative 
authorized to negotiate purchases.

Sec. 12. Accountability

    Requires an allocation recipient that receives a grant or 
loan authority allocation to report to HUD within 12 months of 
qualified plan approval on its use of this assistance. This 
report must contain information about the location and type of 
assisted properties and the income of families purchasing or 
renting these properties.
    HUD shall require a State or other recipient of grant or 
loan funds to reimburse the Treasury for any misused funds. 
However, a State shall not be required to reimburse the 
Treasury for any misused funds that the State is required to 
allocate to a qualified metropolitan city or qualified urban 
county.

Sec. 13. Definitions

    Establishes definitions for various terms, including: 
``allocation recipient,'' ``allocation recipient 
administrator,'' ``approved plan,'' ``covered multifamily 
housing,'' ``loan authority amount,'' ``nonprofit 
organization,'' ``qualified foreclosed housing,'' ``qualified 
metropolitan city,'' ``qualified State,'' ``qualified urban 
county,'' ``single family housing''.
    Specifically, ``allocation recipient'' is a qualified 
State, qualified metropolitan city, or qualified urban county.
    ``Covered multifamily housing'' is defined as a residential 
structure that consists of 64 or fewer dwelling units.
    ``Qualified foreclosed housing'' is single family housing 
that is not occupied by an owner, pursuant to foreclosure or 
assignment of the mortgage on the housing or forfeiture of the 
housing; or is covered multifamily housing. Such housing must 
be owned by a lender, mortgage company, investor, financial 
institution, or other such entity, or any government entity, 
pursuant to foreclosure or assignment of the mortgage on the 
housing or forfeiture of the housing. In the case of single 
family housing, it must have a purchase price that does not 
exceed 110 percent of the average purchase price for single 
family housing in the area in which the housing is located. In 
the case of covered multifamily housing, the purchase price 
must not exceed the dollar amount limitation, for housing of 
the applicable size located in the area in which the housing is 
located, on the amount of a principal obligation of a mortgage 
eligible for insurance under section 207 of the National 
Housing Act.
    ``Qualified metropolitan city'' means a city that (1) is 
among the 100 most populous incorporated places in the country, 
as determined by data from the most recent decennial census 
published before the date of the enactment of this bill or (2) 
has (a) a minimum population of 50,000, as determined by data 
from the most recent decennial census published before the date 
of enactment of this bill and (b) a foreclosure rate that 
exceeds 125 percent of the foreclosure rate of the entire 
State.
    ``Qualified urban county'' means an urban county as the 
term is defined in section 102 of the Housing and Community 
Development Act of 1974 that is among the 50 most populous 
urban counties in the country, according to the most recent 
census data, excluding the population of any qualified 
metropolitan city within such urban county, unless such 
metropolitan city agrees to include its population within the 
urban county for purposes of this Act.
    The term ''State'' means any State of the United States, 
the District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, Guam, the Virgin 
Islands, American Samoa, and other territory or possession of 
the United States.

Sec. 14. Funding

    Authorizes $7.5 billion for direct loans and $7.5 billion 
for grants.

Sec. 15. Regulations and implementation

    Requires HUD to issue any necessary regulations to carry 
out this Act. HUD also has the authority to take such action as 
may be necessary to implement this Act by notice, guidance, and 
interim rules.

                            DISSENTING VIEWS

    H.R. 5818, the Neighborhood Stabilization Act of 2008, 
establishes a $15 billion Federal program to fund $7.5 billion 
in loans and $7.5 billion in grants to states and localities to 
purchase and rehabilitate foreclosed properties. While the 
stated goal of the legislation is to stabilize housing markets 
that are experiencing high levels of foreclosures, there is no 
evidence that government intervention in the housing markets 
and the economy of this kind will do anything to achieve that 
objective, and we must accordingly oppose it.
    For the first half of this decade, housing prices increased 
at a rate that was clearly unsustainable when measured against 
household incomes and other economic indicators. The market is 
now in the midst of a significant correction, which is a 
painful process for those watching the value of their homes 
decline, but beneficial to those renters and other Americans 
seeking affordable homeownership opportunities. Contrary to the 
claims of its proponents, H.R. 5818 will do little to resolve 
the root causes of the increase in foreclosures--an excess of 
housing supply and the depreciation of over-inflated home 
prices. In fact, for the reasons stated below, the legislation 
could extend and further exacerbate the current housing 
downturn and do more harm than good.
    While we are committed to the goal of stabilizing 
communities and addressing the problems associated with the 
rising number of foreclosures, we do not believe that H.R. 5818 
is the right solution to those problems. If enacted, H.R. 5818 
would represent a costly bailout for the lenders, servicers and 
real estate speculators who made risky bets on the housing 
market and will now be able to offload their foreclosed 
properties onto the government. Such an approach subsidizes bad 
investments and contributes to moral hazard by signaling to 
future market participants that their downside risks will be 
assumed by the government if their investments sour.
    Moreover, rather than reducing the number of foreclosures, 
H.R. 5818 may actually incentivize lenders to foreclose rather 
than attempt workouts with struggling homeowners. In a letter 
from Roy A. Bernardi, the Deputy Secretary of the Department of 
Housing and Urban Development, the Bush Administration 
highlighted this concern and went on to note that ``an increase 
in foreclosures [resulting from these incentives] could well 
prolong the time it would take for the housing market to 
recover. This new program [established by the legislation] 
would also be slow to expend money, and thus its effects on the 
market would be delayed and spread out over time.''
    H.R. 5818 also includes overly broad income-targeting 
provisions that would allow state and local entities to sell 
properties to individuals who make up to 140 percent of area 
median income. This represents a government subsidy for 
families and individuals whose need for federal assistance is 
questionable. In addition, nothing in the bill prevents the 
resale of foreclosed properties to a prior owner. Allowing 
homeowners to repurchase from the government the same homes 
that they could not afford in the first place would only 
exacerbate foreclosures and delay a neighborhood's economic 
recovery.
    H.R. 5818 contemplates the expenditure of $15 billion to 
fund the loans and grants authorized by the legislation, 
without indicating where the money will come from to pay for 
this massive expansion of the Federal Government's role in the 
housing market. During Committee consideration of the bill, 
Republican Members offered a series of amendments designed to 
mitigate these costs, but all were defeated on largely party-
line votes, including an amendment by Mr. Price requiring that 
the legislation comply with pay-go requirements; an amendment 
by Mr. Hensarling to convert the entire $15 billion to loans 
rather being split equally between grants and loans; and 
another amendment by Mr. Hensarling requiring that states 
provide a dollar-for-dollar match for all funds that they 
receive under the bill in the form of grants.
    We intend to continue pushing for much-needed improvements 
to H.R. 5818 as it moves to the House floor, and, absent such 
improvements, will continue to oppose it.

                                   Spencer Bachus.
                                   Donald Manzullo.
                                   Frank D. Lucas.
                                   Shelley Moore Capito.
                                   Stevan Pearce.
                                   Jeb Hensarling.
                                   Jim Gerlach.
                                   Randy Neugebauer.
                                   Kevin McCarthy.
                                   Michele Bachmann.
                                   Tom Feeney.
                                   Judy Biggert.
                                   Adam H. Putnam.
                                   Ginny Brown-Waite.
                                   Ed Royce.
                                   Walter B. Jones.
                                   K. Marchant.
                                   Geoff Davis.
                                   Scott Garrett.
                                   Ron Paul.
                                   Tom Price.
                                   Dean Heller.
                                   J. Gresham Barrett.
                                   Peter King.
                                   Patrick T. McHenry.
                                   John Campbell.
                                   Peter J. Roskam.