DLEG - Housing Authority Praises Michigan Congressional Delegation for Support of Economic Recovery Act Michigan Homeowners, Communities and Neighborhoods will Benefit

Housing Authority Praises Michigan Congressional Delegation for Support of Economic Recovery ActMichigan Homeowners, Communities and Neighborhoods will Benefit

LANSING – The President’s signature enacting the Housing and Economic Recovery Act of 2008 represents an amazing opportunity for the housing industry in Michigan Interim Executive Director of the Michigan State Housing Development Authority (MSHDA) Keith Molin announced today.

“The passage of H.R.3221 gives Michigan another strong and effective tool to advance Governor Granholm’s Save the Dream initiative,” Molin said. “We are grateful to the members of Michigan’s Congressional delegation who supported the legislation and the much-needed assistance it will bring to hundreds of thousands of Americans – many of them right here in Michigan – who are under pressure to keep their homes.”

Governor Granholm’s Save the Dream initiative, administered through MSHDA offers home mortgage refinance options and foreclosure prevention counseling. The toll free number to call for more information is 866-946-7432.

According to Molin, the Housing and Recovery Act is the most comprehensive housing legislation in many years and is the product of months of bipartisan collaboration.

Some of the features of the bill are:

An $11 billion 2008 Housing Bond cap increase,
A 10 percent Housing Credit cap increase in 2008 and 2009,
A new FHA foreclosure prevention refinancing program.
$180 million for foreclosure mitigation counseling and legal assistance,
$3.92 billion in neighborhood stabilization funding to help states and localities turn around foreclosed properties; and
A new first-time homebuyer credit worth up to $7,500 for purchases on or after April 9, 2008 and before July 1, 2009.

The foreclosure avoidance program is scheduled to start October 1, but Molin suggests that those individuals who are challenged in keeping current with mortgage payments might want to communicate with their lenders now.

“Though this is some of the most significant housing legislation in decades, it still can’t save every home,” Molin said. “Relief is in sight, but homeowners must make the effort to fully explore every option available.”

MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in building vibrant cities and neighborhoods, and address homeless issues. MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs, including the Save the Dream initiative, visit the Web site at www.michigan.gov/mshda.

###