The U.S. Congress moves to boost housing

WASHINGTON – Feb. 20, 2008 – Congress is eyeing more incentives as ways to address problems in the housing market – a growing issue in this contentious election year.

Top Democrats, who successfully backed the just-passed economic-stimulus bill, say they will push through a second measure that – among other things – would allow bankruptcy judges to alter the terms of certain mortgages.

Another measure under consideration is a tax break allowing companies with operating losses this year or the two previous years to apply them to past years for a refund. This idea is popular with home builders.

A third proposal would allot an additional $10 billion in bonding authority so housing-finance agencies can give more help to people refinancing subprime loans or first-time buyers. President Bush recently backed this idea.

Lawmakers also are considering $4 billion in block grants so localities with high foreclosure rates can buy and rehabilitate unoccupied property and $200 million for pre-foreclosure housing counselors.

Source: The Wall Street Journal, Sarah Lueck (02/15/08)

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