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American Recovery and Reinvestment Act of 2009

American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Obama on February 17th, 2009. It is an unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Act, which provides a $787 billion package (including $25.21 billion allocated to housing related programs of which $13.61 billion will be for HUD-administered programs), is an extraordinary response to a crisis unlike any since the Great Depression. It includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.  Source: U.S. Treasury Department -  http://treas.gov/recovery/ 

Provisions of the ARRA include the following:

--Neighborhood Stabilization (NSP 2): $2 billion in competitive grants to help communities purchase and rehabilitate foreclosed, vacant properties in order to create more affordable housing and reduce neighborhood blight.

--Homebuyer tax incentive: Act changes the 2008 $7,500 repayable tax credit to an $8,000 tax credit which is not repayable. First time homebuyers are eligible to receive the tax credit on homes purchased between 1/1/2009 and 12/1/2009

--Public Housing Capital Fund: $4 billion for building repair and modernization, including critical safety repairs. Every dollar of
Capital Fund expenditures produces $2.12 in economic return.

--HOME: Low Income Housing Tax Credits: $2.25 billion for gap financing to restart low-income housing construction stalled during the credit crisis.

--Rental Assistance: $2 billion for full-year payments to owners receiving Section 8 project-based rental assistance.

--Native American Housing Block Grants: $510 million to rehabilitate and improve energy efficiency at some of the over 42,000 housing units maintained by Native American housing programs. Half of the funding will be distributed by formula and half will be competitively awarded to projects that can be started quickly.

--Homeless Assistance Grants: $1.5 billion for the Emergency Shelter Grant program to provide short term rental assistance, housing relocation, and stabilization services for families during the economic crisis. Funds are distributed by formula.

--Rural Housing Insurance Fund: $200 million to support $11 billion in direct loans and loan guarantees to help rural families and individuals buy homes during the credit crunch. Last year these programs received a record number of applications.

--Rural Community Facilities: $130 million to support grants and loans to rural areas for critical community facilities, such as for healthcare, education, fire and rescue, day care, community centers, and libraries. There are over $1.2 billion in applications pending.

--Lead Paint: $100 million for competitive grants to local governments and nonprofit organizations to remove lead-based paint hazards in low-income housing.

Source: http://appropriations.house.gov/pdf/PressSummary02-13-09.pdf   http://www.atlantaregional.com/html/5068.aspx

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U.S. Treasury Homeowner Affordability and Stability Plan

The Homeowner Affordability and Stability Plan is part of the President's broad, comprehensive strategy to get the economy back on track. The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. In doing so, the plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

The provision of the plan include:

--Refinancing for Responsible Homeowners Suffering From Falling Home Prices

--A Comprehensive $75 Billion Homeowner Stability Initiative
           > A Loan Modification Plan To Reach 3 to 4 Million Homeowners
           ---Shared Effort with Lenders to Reduce Interest Payments
           ---Incentives to Servicers and Borrowers
           > Clear and Consistent Guidelines for Loan Modifications
           > Required Participation By Financial Stability Plan Participants
           > Modifications of Home Mortgages During Bankruptcy
           > Strengthen Hope for Homeowners and Other FHA Loan Programs
           > Support Local Communities and Help Displaced Renters

--Support Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac

Source:  http://treas.gov/press/releases/reports/housing_fact_sheet.pdf

 

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