New Housing Aid from Team Obama: finally a move for underwater states!
Jeebus it took long enough! I remember when my Congress Critter’s staff LAUGHED at me when I suggested just this: that in the 4 states underwater the most they propose a program to help us here (I even used the 20% figure, it is also all over this blog in posts for the past year). And here is just such a program…finally. Let’s hope it can help some people and doesnt get gobbled up by any ACORN like entities..
Millions of homeowners are hanging by a moment like Lifehouse says…
President Barack Obama is expected to announce plans Friday to provide an additional $1.5 billion to a state-assistance program for homeowners worst hit by the downturn in U.S. housing values.
The program, which Mr. Obama will announce in Las Vegas, is for states where the average home value for all homeowners in the state has dropped more than 20% from its value at the height of the housing bubble. Under the formula, five states have home-price declines steep enough to qualify them: Nevada; California; Arizona; Michigan; and Florida…
...The money would be distributed by state and local housing finance agencies, or HFAs, in each state. The $1.5 billion would be allocated according to a formula based on home-price declines and unemployment.
HFAs could use the money in a variety of ways, including unemployed homeowner assistance, mortgage workouts or new home purchase assistance. But the Treasury Department, which would bankroll the program with unused money from the Troubled Asset Relief Program, must approve a state’s plans.
More from Politico:
…The program Obama will announce is intended to help address “urgent problems,” with the specific goal of helping people who are sitting in houses that are worth less than is owed on them, the first senior administration official said.
The five states that are eligible for the funds have all seen a more than 20 percent decline in housing prices, the official said. The official also said the money will not be divided equally among the states but rather allocated based on the state’s price decline and unemployment rate.
And unlike $23 billion that the Federal Reserve recently provided to state housing authorities, states receiving this money are not expected to pay it back, the official said.