WASHINGTON, DC – July 23, 2008 – Congresswoman Niki Tsongas released the following statement after the House voted to approve landmark housing legislation which will help families facing foreclosure keep their homes, help other families avoid foreclosures in the future, and help communities rehabilitate abandoned properties.  The American Housing Rescue and Foreclosure Prevention Act also makes critical reforms to the Federal Housing Administration, increases regulation of mortgage giants Fannie Mae and Freddie Mac, and restores confidence in the housing market.

"I am pleased that the House has taken such a critical step today in addressing the foreclosure crisis which has affected so many families and communities in the Fifth Congressional District and across the country.  This legislation provides new resources and incentives so that families in danger of losing their homes to foreclosure can refinance into lower-cost government-insured mortgages they can afford to repay.  By establishing a path that will allow both homeowners and creditors to avoid the considerable cost of foreclosure, the legislation benefits lenders, homeowners, and the economy as a whole.

"I was particularly pleased that the bill included $3.9 billion in grant founding that can be used by cities and towns to rehabilitate foreclosed or abandoned properties.  Foreclosures do not just hurt the families who have lost their homes; they hurt entire communities.  Vacant properties lower nearby home values, become centers for crime and vagrancy, and increase the demands on local police and fire departments.  Localities often lack the resources to rehabilitate these properties and that is why the inclusion of funding in the bill to help the federal government to work as a partner with communities in this effort was so crucial."