Richardson Amendment Keeps Important Housing/Community Stabilization Law in Effect
WASHINGTON D.C. – March 17, 2011 – (RealEstateRama) –Today Congresswoman Laura Richardson (CA-37) introduced an amendment to H.R. 861, the Neighborhood Stabilization Program (NSP) Termination Act, which would avoid the abrupt end of the NSP, a program that has helped rescue communities devastated by the national financial crisis.
Funded through the American Recovery and Reinvestment Act, the NSP has been instrumental in stabilizing communities that have suffered from foreclosures and abandonment through the purchase and redevelopment of foreclosed and abandoned homes and residential properties. H.R. 861 terminates this important program immediately, cutting off critical assistance at a time when 47.8 million American residential mortgages totaling 22.5% of all mortgages, are still underwater or in a negative equity state.
“The NSP has been an invaluable resource to state and local governments and non-profit organizations in keeping our communities afloat,” said Congresswoman Richardson. “Eliminating this program will hurt our community at a time when we need the help most, further destabilizing our already struggling housing market.”
Congresswoman Richardson’s Amendment would change the effective dates of the termination of the NSP to either five years from the date of the enactment of H.R. 861, or when the national housing market stabilizes to significantly lower levels.
“The NSP was created to offer necessary assistance to keep our communities thriving under dire financial circumstances,” Congresswoman Richardson said. “We need the NSP and we can’t afford for to it to be cut off. My amendment would let the NSP finish its work and avoid the premature death to a program that is breathing much needed life into our most vulnerable communities.”
Congresswoman Richardson’s amendment would allow the NSP to keep working, benefiting over 100,000 properties in the nation’s most impacted communities and support over 93,000 jobs.
“We must continue allowing this important program to do the work that is saving our communities and creating much needed jobs,” said Congresswoman Richardson.
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