Response From Senator Feinstein

Dear Dr. McDonald:



Thank you for contacting me to express your support for including housing market reforms and foreclosure prevention measures in the recently enacted economic recovery bill. I certainly appreciate hearing your suggestions and would like to share with you what was included in the final version of this legislation.



Like you, I am extremely concerned about this severe economic crisis, which has been caused in part by the declining housing market. Last year, there were 837,665 foreclosures filed in California alone, an increase of more than 100 percent over 2007.



As you know, on February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (H.R. 1) into law. This important legislation represents a significant investment by the Federal Government in an effort to create jobs and improve our Nation's aging infrastructure. The bill also makes a major commitment to stabilizing the housing market and assisting hardworking Americans. Specifically, the bill will:



oAllow first-time homebuyers to receive a tax credit worth up to $8,000 for homes purchased after January 1, 2009. Recipients of this credit will not have to repay it.



oProvide the Public Housing Capital Fund with $4 billion to help local public housing agencies address a $32 billion backlog in capital needs.



oProvide the HOME Investment fund with $2.25 billion for state and local governments to acquire, construct, and rehabilitate affordable housing.



oInvest $2 billion in the Neighborhood Stabilization Program to allow state and local governments to purchase and rehabilitate foreclosed properties to reduce blight in communities.



You may be interested to learn that I joined Senator Mel Martinez (R-FL) in introducing an amendment to the Senate-version of the American Recovery and Reinvestment Act of 2009 that would have extended the $729,750 maximum conforming loan limits through 2010. However, this amendment was not included in the final version of the bill passed by the Senate.



It is critical that Congress work with the new Administration to restore the American dream of home ownership and this bill is part of that effort. Please know that I will keep your comments and suggestions in mind should further legislation to address our country's housing crisis come before the Senate.



Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.




Sincerely yours,

Dianne Feinstein
United States Senator


Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.