Washington, D.C. -- “The package of legislation we passed today will provide between $30 million and $38 million dollars to the City and County of Honolulu to buy foreclosed houses, rehabilitate them and convert them to affordable housing for rent or sale,” said Rep. Neil Abercrombie today after the U.S. House of Representatives approved a package of housing measures.

“The package of housing measures will help families facing foreclosure stay in their homes, help other families avoid foreclosure in the future, and help the recovery of communities harmed by empty homes because of the foreclosure crisis,” Abercrombie said. 

The bill would establish a $15 billion loan and grant program under the Department of Housing and Urban Development for the purchase and rehabilitation of vacant, foreclosed homes to get them occupied as soon as possible.  Honolulu would be eligible for between $30-million and $38-million in grant funds.

Another part of the comprehensive housing legislation will help significant numbers of American families in danger of losing their home refinance them into lower-cost government-insured FHA mortgages with lower payments.

“This is not a bailout for anyone,” Abercrombie pointed out.  “To participate, lenders and mortgage investors will have to reduce the principal of the mortgage, which means they’re taking a loss.  In exchange for an FHA guarantee on their mortgage, the borrowers will have the share any profit they make on resale of the house with the government.”  

The bill is supported by the National Governors’ Association, U.S. Conference of Mayors, National Association of Counties, National Association of Local Housing Finance Agencies, National Community Development Association, and the National Council of State Housing Agencies, as well as  a wide range of civil rights, community development, labor, and low-income housing groups, including:  AFL-CIO, AFSCME, Catholic Charities, Enterprise Community Partners, Local Initiatives Support Corporation, National Low Income Housing Coalition, National Housing Conference, and the National Urban League.

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