H.R. 5572 – Reading Mode

110th CONGRESS

2d Session

H. R. 5572

IN THE HOUSE OF REPRESENTATIVES

March 10, 2008

Mr. Moran of Virginia introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To stimulate the economy of the United States by providing assistance to States for foreclosure mitigation counseling activities and increased community development block grant assistance.

Short title

This Act may be cited as the Helping Communities Act of 2008.

Assistance to States for foreclosure mitigation counseling

(a)

In general

The Secretary of the Treasury shall make grants to the States for providing foreclosure-mitigation counseling to homeowners of owner-occupied single family homes with mortgage loans in default or in danger of default. Such counseling activities shall be designed to prevent or mitigate foreclosure and result in the long-term affordability of the mortgage retained or resulting pursuant to the activity or another positive outcome for the homeowner.

(b)

Timing

The Secretary shall make all grants under this section not later than the expiration of the 90-day period beginning on the date of the enactment of this Act.

(c)

Regulations

Before the expiration of the period referred to in subsection (b), the Secretary shall issue regulations to carry out this section, which shall prescribe criteria for—

(1)

allocation of the entire amount made available for grants under this section among the States;

(2)

eligible use of such amounts; and

(3)

eligibility of entities to provide foreclosure-mitigation counseling activities with such amounts.

(d)

Requirement for nonprofit assistance

Each State that receives a grant under this section shall provide not less than 95 percent of the grant amounts to nonprofit entities for the provision of foreclosure-mitigation counseling in accordance with subsection (a).

(e)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Nonprofit entity

The term nonprofit entity means any private organization or entity that—

(A)

is organized under State or local law;

(B)

has no part of its net earning inuring to the benefit of any member, founder, contributor, or individual; and

(C)

complies with standards of financial accountability acceptable to the Secretary.

(2)

Secretary

The term Secretary means the Secretary of the Treasury.

(3)

States

The term States means the States 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 any other territory or possession of the United States.

(f)

Authorization of Funds

There is authorized to be appropriated to the Secretary for grants under this section $500,000,000 for fiscal year 2008.

Increased community development block grant assistance

There is authorized to be appropriated for community development block grant assistance under section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306) $500,000,000 for fiscal year 2008. The amounts authorized to be appropriated under this section are in addition to amounts made available for such purpose for such fiscal year under the Consolidated Appropriations Act, 2008 (Public Law 110–161).