To provide mortgage payment assistance for employees who are separated from employment.

1. Adds TITLE IX--HOMESTEAD PRESERVATION ACT at the end of the bill

   Adds a title

   In S. 1637 · Reported to Senate

   (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2003.

   Inserted: TITLE IX--HOMESTEAD PRESERVATION ACT

   Inserted: SEC. 901. SHORT TITLE.

   Inserted: This title may be cited as the "Homestead Preservation Act".

   Inserted: SEC. 902. MORTGAGE PAYMENT ASSISTANCE.

   Inserted: (a) Establishment of Program.--The Secretary of Housing and Urban Development (referred to in this section as the "Secretary") shall establish a program under which the Secretary shall award low-interest loans to eligible individuals to enable such individuals to continue to make mortgage payments with respect to the primary residences of such individuals.

   Inserted: (b) Eligibility.--To be eligible to receive a loan under the program established under subsection (a), an individual shall be--

   Inserted: (1) an individual that is a worker adversely affected by international economic activity, as determined by the Secretary;

   Inserted: (2) a borrower under a loan which requires the individual to make monthly mortgage payments with respect to the primary place of residence of the individual; and

   Inserted: (3) enrolled in a training or assistance program.

   Inserted: (c) Loan Requirements.--

   Inserted: (1) In general.--A loan provided to an eligible individual under this section shall--

   Inserted: (A) be for a period of not to exceed 12 months;

   Show 19 more inserted paragraphsShow less

   Inserted: (B) be for an amount that does not exceed the sum of--

   Inserted: (i) the amount of the monthly mortgage payment owed by the individual; and

   Inserted: (ii) the number of months for which the loan is provided;

   Inserted: (C) have an applicable rate of interest that equals 4 percent;

   Inserted: (D) require repayment as provided for in subsection (d); and

   Inserted: (E) be subject to such other terms and conditions as the Secretary determines appropriate.

   Inserted: (2) Account.--A loan awarded to an individual under this section shall be deposited into an account from which a monthly mortgage payment will be made in accordance with the terms and conditions of such loan.

   Inserted: (d) Repayment.--

   Inserted: (1) In general.--An individual to which a loan has been awarded under this section shall be required to begin making repayments on the loan on the earlier of--

   Inserted: (A) the date on which the individual has been employed on a full-time basis for 6 consecutive months; or

   Inserted: (B) the date that is 1 year after the date on which the loan has been approved under this section.

   Inserted: (2) Repayment period and amount.--

   Inserted: (A) Repayment period.--A loan awarded under this section shall be repaid on a monthly basis over the 5-year period beginning on the date determined under paragraph (1).

   Inserted: (B) Amount.--The amount of the monthly payment described in subparagraph (A) shall be determined by dividing the total amount provided under the loan (plus interest) by 60.

   Inserted: (C) Rule of construction.--Nothing in this paragraph shall be construed to prohibit an individual from--

   Inserted: (i) paying off a loan awarded under this section in less than 5 years; or

   Inserted: (ii) from paying a monthly amount under such loan in excess of the monthly amount determined under subparagraph (B) with respect to the loan.

   Inserted: (e) Regulations.--Not later than 6 weeks after the date of enactment of this section, the Secretary shall promulgate regulations necessary to carry out this section, including regulations that permit an individual to certify that the individual is an eligible individual under subsection (b).

   Inserted: (f) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section, $10,000,000 for each of fiscal years 2005 through 2009.

   Original wording

   At the end add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed