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Congresswoman Waters Applauds $3 Billion in Aid to Homeowners

August 13, 2010
Press Release

Congresswoman Maxine Waters (CA-35), Chairwoman of the Subcommittee on Housing and Community Opportunity, welcomed the announcement today by the Obama administration that they are funding her legislation to assist struggling homeowners with $3 billion.

One of the programs, the "Hardest Hit Fund", will receive $2 billion to rehabilitate foreclosed properties and place them back on the market for low- and moderate-income homeowners. California has been the biggest recipient of "Hardest Hit" funding based on the severity of the housing market decline and high unemployment.  The state received $700 million in the initial round of funding and will receive another $476 million in the next round of funding.

Additionally, $1 billion will fund a new program to provide emergency interest-free loans to unemployed homeowners.  Eligible borrowers can qualify for loans of up to $50,000 for up to two years to keep their homes out of foreclosure. The program is based on a successful program that has helped many Pennsylvania homeowners avoid losing their homes. 

"Since the recession started a couple of years ago, I have emphasized the need for Congress, the Administration and other policymakers to take steps to help homeowners, prevent foreclosures and assist neighborhoods that have been most severely impacted by the nation's housing crisis," said Congresswoman Waters.

Congresswoman Waters continued, "Americans who have lost their jobs through no fault of their own should not have to lose their homes as well. I am encouraged that the additional funding I fought for will help homeowners and communities across the country most impacted by foreclosures and housing market declines."

Congresswoman Waters secured $1 billion to fund these programs during negotiations on the Wall Street Reform and Consumer Protection Act, and she received an additional $2 billion pledge from the Department of Treasury.

The Wall Street reform bill also includes an additional $1 billion in funding that Congresswoman Waters sought for the Neighborhood Stabilization Program – a program she worked to create two years ago, overcoming Bush Administration opposition to do so – which enables local governments and non-profits to purchase and rehabilitate foreclosed and abandoned properties and sell those homes to low- and moderate-income buyers.