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Blago Calls On Bush To Sign Housing Package

Legislation Will Bring More Than $500 Million To Illinois

CHICAGO (CBS) ― Governor Rod R. Blagojevich today sent a letter to President Bush calling on him to quickly sign the Housing and Economic Stimulus Package which will provide more than $500 million in federal aid to support tax credits for first-time buyers, an expansion of federal programs to protect owners from losing their homes, and dollars to help Illinois communities rebuild foreclosed properties.

Today the U.S. Senate acted on the legislation, already passed by the U.S. House of Representatives, which leaves the bill heading to the President's desk.

"Here in Illinois and across the country, communities are hurting from foreclosures, and homeowners are worried that their house could be next. Congress worked diligently and in a bi-partisan manner to pass this important measure which will bring relief and protection to millions of American homeowners. I commend those in the congressional delegation who supported this bill, and now is the time for the President to act," Governor Blagojevich said in a press release.

"We in Illinois have taken steps to help homeowners avoid losing their homes through our Illinois Homeowner Assistance Initiative; our communities would welcome the federal government's help as well."

Once signed by the President, the Housing and Economic Stimulus Package will provide $11 billion nationwide to increase the federal tax exempt resources available for more people to buy homes, and also expands the use of these resources to assist with refinancing of existing homeowners. Of that, an estimated $400 million is anticipated to reach Illinois communities.

The legislation also would allocate an additional $3.9 billion nationally in funding for the Community Development Block Grant (CDBG) which will go towards the acquisition and rehabilitation of foreclosed and abandoned properties and will help communities to eliminate blight, control crime and stabilize property values in each state.

The federal legislation would also authorize an additional $150 million to states and communities around the country to continue housing counseling assistance to homeowners facing foreclosure. Illinois received over $1.5 million from federal grant resources earlier this year to expand foreclosure prevention counseling. These additional resources will support these efforts statewide.

Other portions of the federal legislation to boost home purchases and assist homeowners facing foreclosure would expand and modernize the programs of the Federal Housing Administration (FHA), enhance the activities of the Government Sponsored Entities (GSE) – Fannie Mae and Freddie Mac, and provide federal tax credits for new home purchases.

In an effort to help those homeowners affected in Illinois, Governor Blagojevich announced an expansion of the Illinois Homeowner Assistance Initiative on March 27, which included a more than $300 million Illinois Homeowner Assistance Pool to provide predictable, fixed-rate mortgages from a committed pool of lenders for Illinois borrowers with moderately good credit; established a statewide counseling network to help homeowners know their options; and made it easier for consumers to report fraudulent and deceptive practices.

The letter to the president is included below:

Dear President Bush:

I am writing to urge that you act quickly and sign H.R. 3221, the American Housing Rescue & Foreclosure Prevention Act, into law. Congress worked diligently and in a bi-partisan manner to pass this important measure which will bring relief and protection to millions of American homeowners.

H.R. 3221 will play a vital role in the recovery of our struggling economy, keeping families in their homes and maintaining the American Dream of home ownership. Recent data show that Illinois' foreclosure rate ranks No. 10 in the country, with one foreclosure for every 193 households in the state. This marks a 16 percent increase from the previous quarter and a 58 percent jump from second-quarter 2007. Federal assistance will help to alleviate this crisis.

With the inclusion of nearly $4 billion for Community Development Block Grant, Illinois will receive an estimated $136 million to expand economic opportunities and aid in the continuation of providing adequate housing and suitable living conditions for our low-to-moderate income residents. Illinois is also expected to receive as much as $416 million to aid in the refinancing of mortgage loans, provide new loans to first-time homebuyers and finance additional affordable rental housing.

There are many other benefits to this legislation that will make meaningful differences in the lives of Illinoisans. I urge you to quickly sign this crucial legislation and take a step toward the recovery of our struggling housing market.

Sincerely,
Rod R. Blagojevich
Governor

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