Politics & Government
The Neighborhood Preservation Act of 2011
After being first introduced in May of 2009 and passed in The House of Representatives in July but never voted upon in the Senate, the preservation act was re-introduced this past week.
Last week, the Neighborhood Preservation Act of 2011 (H.R. 2636) , was proposed to congress by California Congressman, Gary Miller, as a possible strategy for assisting in the stabilization of the housing market with respect to distressed properties.
After being first introduced in May of 2009, and passing The House of Representatives in July of 2009 and received and read by the Senate, but never voted upon, The Neighborhood Preservation Act was re-introduced this past week.
The bill, if passed into law, would allow banks, as well as government sponsored entities, Freddie Mac and Fannie Mae, to lease REO properties to either the prior property owner or to another individual for up to 5 years. Prior homeowners would be required to agree to the rental terms and still relinquish the deed to the bank or the GSE. At the end of the lease agreement, the tenant would be given the opportunity to purchase the property. The Federal Housing Finance Agency would be assigned the responsibility of setting up rules for ascertaining whether a property would be eligible for leasing.
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PROPOSED BENEFITS TO THE NEIGHBORHOOD PRESERVATION ACT:
- Key components of the bill would allow the former homeowner to remain in the home, which would be an obvious benefit to the individual. Having someone living in and caring for the home would also help preserve the home’s value.
- The logical impact of the adoption of this bill to neighborhoods and cities such as Bradenton would be the lower inventory of foreclosure homes being sold in the community, and a smaller number of vacant properties in the neighborhood. Less foreclosure properties on the market would encourage the stabilization of home values. A reduction in numbers of abandoned homes would result in fewer negative issues that are commonly associated with abandoned properties.
- Stabilization of home values would, over time, help to restore consumer confidence in the housing market, resulting in an overall positive change for the national economy.
- Tax payers also stand to benefit because government-subsidized entities (Freddie and Fannie) would have the advantage of selling the property in a healthier, more balanced market.
Given the way the banking industry and the government have handled the short sale and REO debacle to date, I personally have some reservations as to their capabilities in the assembling an efficient system, and providing smooth facilitation, oversight, and consistent management.
Find out what's happening in Bradentonwith free, real-time updates from Patch.
To date, that partnership has not done a stellar job at selling real estate… so if this bill passes into law, I guess we’ll have to wait and see if they are better at being landlords.
Suppport or oppose this bill by sending a message to your state representatives here.