|
For Immediate
Release
5/13/08
Committee Approves Foreclosure Relief and
Affordable Housing Initiative
Plan
boosts emergency mortgage assistance, provides grants and loans, creates
housing trust fund.
HARRISBURG – Legislation that would increase emergency mortgage
assistance, provide grants and loans to homeowners facing foreclosure, and
create a housing trust fund was approved by the Senate Urban Affairs and
Housing Committee today.
The Foreclosure Relief and Affordable Housing Initiative is sponsored by
Senator James Rhoades (R-29) and Senator John Pippy (R-37), chairman of the
committee. The package represents a $32 million effort to provide immediate
assistance to families in danger of losing their homes, and to implement
long-term initiatives to mitigate future downturns and expand the
availability of affordable housing.
There were nearly 6,000 foreclosure filings in Pennsylvania in the first
quarter of 2008, up 7.6 percent from the previous quarter.
The committee approved the following Foreclosure Relief and Affordable
Housing Initiative bills:
- Refinancing Assistance Grants - This program would assist
low-income homeowners who have mortgage terms that have become or are in the
process of becoming unaffordable due at least in part to the current or
readjusting interest rate. Qualified applicants would be eligible for a
one-time grant of up to $2,500 to cover closing costs associated with
refinancing. This program will not cover any mortgage payments; existing
loan programs are available for that purpose. $10 million will be
appropriated to PHFA for this program. Senate Bill 1401
- PA Housing Affordability and Rehabilitation Enhancement Act (PHARE)
- The Pennsylvania Housing Finance Agency (PHFA) has done a tremendous job
in addressing housing and community development needs throughout the
Commonwealth, yet nearly two-thirds of worthy projects presented to PHFA go
unfunded due to a lack of resources. PHARE would allow PHFA to develop or
expand affordable housing programs to build, rehabilitate and preserve homes
for low to moderate income individuals and families, the elderly and people
with disabilities. $10 million will be appropriated to create the PHFA
Housing Trust Fund. Senate Bill 1400
- Expanding Homeowner Equity Recovery and Refinancing Loan
Programs - This program will boost the number of loans available through two
successful PHFA programs, the Homeowner Equity Recovery Opportunity Loan Program
(HERO) and the Refinance to an Affordable Loan Program (REAL). HERO loans assist
homeowners who have sub-prime or predatory loans, and in some instances owe more
than the current value of their homes. REAL is targeted at homeowners who are 60
days or less delinquent on mortgage loans that have adjusted to an unaffordable
rate or will be adjusting in the future. $10 million will be provided to PHFA
which, through the use of bond financing, will increase the amount of available
loans by $50 million to $75 million. Senate Bill 1402
In addition, Senators Rhoades and Pippy also are seeking a $2 million
increase in funding for the Homeowners Emergency Mortgage Assistance Program
(HEMAP) to $13 million for 2008-09. HEMAP provides loans to protect
Pennsylvanians who are financially unable to make their mortgage payments and
are in danger of losing their homes to foreclosure.
"I appreciate the committee's prompt action on this package. We
have thousands of Pennsylvania families saddled with bad mortgage products, and
this package provides both an immediate response to their problems and a
long-term strategy that promotes stability," said Rhoades.
"While Pennsylvania has been spared some of the damage that other
states have faced in the housing market, we do have an opportunity to address
some longstanding, affordable housing issues. Today's work by the committee is
the first step toward maximizing Pennsylvania's affordable housing initiatives,"
said Pippy.
In Pennsylvania, 5,901 foreclosures were filed in the first quarter of 2008,
according to RealtyTrac, which publishes a database of foreclosure and
bank-owned properties.
Nationally, first-quarter foreclosure filings – default notices, auction sale
notices and bank repossessions – showed a 23 percent increase from the previous
quarter and a 112 percent increase from the first quarter of 2007. The
RealtyTrac report also shows that one in every 194 households in the United
States received a foreclosure filing during the quarter.
CONTACTS:
Greg Mahon (Office of Sen. Pippy), (717) 787-5839,
gmahon@pasen.gov
David Broderic (Office of Sen. Rhoades), (717) 787-2637,
dbroderic@pasen.gov
 Print this page
E-mail
this page
Back |
