[StBernard] House to vote on NSP Termination Act Today

[Westley Annis]

House to vote on NSP Termination Act Today


WASHINGTON - The U.S. House of Representatives today will consider a bill to
end the Neighborhood Stabilization Program, a program which provides funding
to help communities deal with large numbers of foreclosures and abandoned
properties.

The NSP Termination Act (H.R. 861
<http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR861:/> ) is the third of
four bills brought to a vote by House Republicans which kill foreclosure
avoidance or mitigation programs.  Efforts to dismantle programs which
address the effects of the foreclosure crisis follow earlier Republican
efforts to cut funding for government agencies which will implement
provisions of the Wall Street Reform Act designed to reduce the risk of
another financial crisis.

The Neighborhood Stabilization Program, unlike other programs which directly
aid homeowners facing foreclosure, provides funding for municipalities to
purchase and redevelop foreclosed or abandoned properties so they don't
further depress housing prices or lead to neighborhood blight.  The bill to
terminate the Neighborhood Stabilization Program is strongly opposed by the
U.S. Conference of Mayors, the National League of Cities, the National
Association of Counties, and approximately 50 organizations involved in
housing (see list attached.)

The NSP Termination Act passed out of the Financial Services Committee last
week on a party line vote
<http://financialservices.house.gov/media/pdf/030911FC-15.pdf> . Given the
strong support of U.S. cities and counties, it is unclear whether
Republicans can maintain solid opposition to the bill on the House floor.

During the recent debates on foreclosure mitigation programs, Republicans
insisted that the programs are a burden on taxpayers and that they must be
eliminated as part of efforts to reduce the budget deficit.  However,
Republicans previously acted to block a levy on the largest financial
institutions which would have paid for Neighborhood Stabilization Program
and the Emergency Mortgage Relief Program. The funding mechanism was part of
the House-passed version of the Wall Street Reform and Consumer Protection
Act, but it was stripped because of Republican opposition in the conference
committee.  Barney Frank, Ranking Member of the Financial Services
Committee, plans to introduce a bill that would place a levy on the largest
financial institutions in order to pay for foreclosure mitigation programs.

Last week, Republicans successfully passed the Emergency Mortgage Relief
Program Termination Act (H.R. 836
<http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR836:/> ) which ends a
program providing bridge loans to unemployed homeowners facing possible
foreclosure.  Republicans also passed the FHA Refinance Program Termination
Act (H.R. 830 <http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR830:/> ),
which ends a foreclosure avoidance program which helps homeowners refinance.


A vote on the fourth bill, the HAMP Termination Act of 2011 (H.R. 839
<http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR839:/> ), is planned for the
week after the Congressional recess.

One hour of debate is scheduled for today and the discussion is expected to
be especially robust.  Legislative business begins in the House at noon.

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