More than $4 billion in federal funds — $150 million allocated to Ohio — could alleviate the national foreclosure crisis if only it can avoid President George Bush’s veto pen, said U.S. Sen. Sherrod Brown, D-Ohio.
In a media conference call Wednesday, Brown called the housing bill “a question of priorities” and noted the price tag of the Iraq war dwarfs that level of housing support.
“We spend $3 billion a week in Iraq,” Brown said. “While a $4 billion bill is not inexpensive by any means, the money will help put real resources to this (foreclosure) problem.”
The Housing and Economic Recovery Act of 2008 targets cities and states blighted by abandoned homes and provides financial counseling and help for homeowners facing imminent foreclosure, Brown said.
“The bill is designed so people can turn to it rather than risky subprime loans,” Brown said. “A half-million families will be able to refinance to a fixed interest-rate mortgage.”
Beyond mortgage help for the “working poor,” Brown said the money will help wipe the black spot of blight from towns and cities across Ohio. Money from the bill will be turned into community block development grants controlled by local governments and used to renovate or demolish abandoned houses.
“Almost no city in America has the wherewithal to deal with this blight,” Brown said. “In a community, when a house is foreclosed and vandalized, it drops the value of surrounding homes. Renovating or demolishing those houses will stabilize neighborhoods and the housing market.”
The bipartisan bill initially struggled but eventually passed through the Senate but may not go much further, as Bush has promised to veto the measure. Republicans and conservative Democrats argue the bill is a bailout for irresponsible lenders.
“I am optimistic this will pass, despite Bush’s promise to veto it,” Brown said. “I feel the president will either change his mind or we will have enough votes to override the veto.”
Brown said, regardless of who is at fault for the foreclosure crisis, steps must be taken to protect families and communities.
“Banks are losing 60 cents on the dollar on these foreclosures. They are either going to lose a lot or lose a little,” Brown said. “The Bush administration says this is a bailout for the banks, but surely it isn’t. This is a commitment and investment by the federal government to help our communities as a whole.”
Local News
Fight the blight
U.S. Sen. Sherrod Brown calls on Bush to support $4 billion housing bill
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