To enhance State and local neighborhood stabilization efforts by providing foreclosure prevention assistance to families threatened with foreclosure and permitting Statewide funding competition in minimum allocation States.

SA 1033. Mr. CASEY (for himself, Mr. Leahy, Mr. Specter, and Mrs.
Gillibrand) submitted an amendment intended to be proposed to amendment
SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to the bill
S. 896, to prevent mortgage foreclosures and enhance mortgage credit
availability; which was ordered to lie on the table; as follows:

At the end of title I of the amendment, add the following:

SEC. 105. NEIGHBORHOOD STABILIZATION PROGRAM REFINEMENTS.

(a) In General.--Section 2301 of the Foreclosure Prevention
Act of 2008 (42 U.S.C. 5301 note) is amended--
(1) in subsection (b), by adding at the end the following:
``(5) Distribution of funds in certain states; competition
for funds.--Each State that receives the minimum allocation
of amounts pursuant to the requirement under section 2302
shall be permitted to use such amounts to address statewide
concerns, provided that such amounts are made available for
an eligible use described under paragraphs (3) and (4) of
subsection (c).''; and
(2) in subsection (c), by adding at the end the following:
``(4) Foreclosure prevention and mitigation.--
``(A) In general.--Each State and unit of general local
government that receives an allocation of any covered
amounts, as such amounts are distributed pursuant to section
2302, may use up to 10 percent of such amounts for
foreclosure prevention programs, activities, and services,
foreclosure mitigation programs, activities, and services, or
both, as such programs, activities, and services are defined
by the Secretary.
``(B) Definition of covered amounts.--For purposes of this
paragraph, the term `covered amount' means any amounts
appropriated--
``(i) under this section as in effect on the date of
enactment of this section; and
``(ii) under the heading `Community Development Fund' of
title XII of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat.
217).''.
(b) Retroactive Effective Date.--The amendment made by
subsection (a) shall take effect as if enacted on the date of
enactment of the Foreclosure Prevention Act of 2008 (Public
Law 110-289).
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