Enterprise Praises Foreclosure Prevention Act of 2008

By Anuradha Kher, Online News EditorWashington D.C–Under the leadership of Senator Harry Reid (D-Nev.), Senate Democrats have announced a package of legislation intended to address the national housing crisis and help Americans avoid foreclosure.  The Foreclosure Prevention Act of 2008 will keep families facing foreclosure in their homes, help other families avoid foreclosures in the future and help communities already harmed by foreclosure to recover.   The bill provides $4 billion in emergency funding to enable states and cities to work with local nonprofits to acquire and rehabilitate foreclosed homes until owners and renters are ready to move in. “Nonprofits across the country are ready to help communities withstand the fallout from foreclosures,” says Doris W. Koo, president and CEO of Enterprise Community Partners, a provider of development capital and expertise to affordable homes. “Senator Reid’s leadership will give us the tools to work with mayors and governors who share our commitment to helping communities stay strong.” The emergency funding is vital to ensuring that foreclosed homes remain in good condition while vacant, and do not lead to lower property values and other conditions that can undermine communities. Redevelopment and occupancy of foreclosed homes will help stimulate economic activity and help prevent further loss of home equity in struggling neighborhoods.  “Senator Reid’s proposal reflects the approach that Enterprise and the Center for American Progress recommended and have worked closely with Senator Dodd to develop,” Koo says. “We look forward to them and all members of the Senate passing this bill.” On January 31, Koo testified on foreclosure prevention and neighborhood preservation before the United States Senate Committee on Banking, Housing and Urban Affairs, which Dodd chairs.