This afternoon, the House adopted the first in a set of housing-related bills, H.R. 5818, the Neighborhood Stabilization Act, by a vote of 239-188. The bill would establish a $15 billion, HUD-administered loan and grant program for the purchase and rehabilitation of vacant, foreclosed homes with the goal of occupying them as soon as possible. One half of the funds ($7.5 billion) would be for loans; half ($7.5 billion) would be for grants. The bill:

• allocates the loan and grants based on a state's percentage of foreclosures over the last four calendar quarters and the number of subprime loans delinquent over 90 days. States then allocate funds to government entities or for profit and nonprofit organizations for the purchase, rehabilitation, and resale of housing and the purchase, rehabilitation, and operation of rental housing
• provides revenues to the federal government from resale or, for rental properties, refinance proceeds. Loans for homeownership properties must be repaid within three years. For rental properties, the maximum loan term is five years. The federal government would receive up to 50 percent of any appreciation an owner realizes at resale
• targets housing to low-income families and families. Homes must be sold to families with incomes that do not exceed 140 percent of local area median income (AMI). Rental housing must serve families having incomes at or below local AMI

For descriptions of the set of housing-related bills, including H.R. 5818, the American Housing Rescue and Foreclosure Prevention Act (H.R. 3221), and Tax Provisions to Expand Refinancing Opportunities and Spur Home Buying (H.R. 5720), click here.