housing and economic recovery act (hr 3221)

The Ohio Housing Finance Agency commends Congress for the passage of comprehensive housing legislation that provides assistance for Ohio families and neighborhoods caught in the crossfire of the foreclosure crisis. The Housing and Economic Recovery Act (H.R. 3221) was signed by President Bush on July 30, 2008 and will help borrowers facing foreclosure and communities blighted by abandoned properties. Some of the most critical measures to OHFA and our stakeholders include:

• An $11 billion 2008 Housing Bond cap increase, which amounts to over $350 million in tax-exempt bonding authority for both multifamily and single family bonds for Ohio. The legislation also allows for temporary refinancing authority for the single family bonds.
• A 10 percent Housing Credit cap increase in 2008 and 2009, which will bring an additional $2.3 million in tax credits per year to Ohio.
• Permanent AMT relief for Housing Bonds and Credits.
• Numerous Housing Bond and Credit modernization provisions, which will allow OHFA to better meet Ohio’s affordable housing needs. Some of these provisions with the most impact are:
  • Allowing state agencies to apply the “basis boost” to projects according to state-designated criteria;
  • Stating that federal grants will no longer be deducted from basis; and
  • Waiving income recertifications for properties that are 100% low income, which significantly reduces the burden on managers and residents.
• An additional $180 million for foreclosure mitigation counseling and legal assistance. Like the Congressional appropriation in December 2007 for foreclosure counseling, NeighborWorks® America is again tasked with administering the program.
• $3.92 billion in neighborhood stabilization funding to help states and localities turn around foreclosed properties.
• A new refinancing program authorizing FHA to insure up to $300 billion in mortgages for financially distressed homeowners at risk of foreclosure.

H.R. 3221 (630 KB Adobe PDF File)