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HEARING ON IT, MARK IT UP AND
WON'T COST THE TAXPAYERS A CENT
AND WILL SAVE THE CITY'S MONEY.
I NOW CITIES MONEY.
I YIELD THREE MINUTES TO THE
GENTLELADY FROM NEW YORK.
THE GENTLELADY FROM
NEW YORK IS RECOGNIZED FOR
THREE MINUTES.
I ASK UNANIMOUS
CONSENT TO REVISE AND EXTEND MY
REMARKS.
WITHOUT OBJECTION.
AND I THANK THE
RANKING MEMBER FOR YIELDING.
AS THE RANKING MEMBER STATED
BEFORE, THIS IS NOT ONLY ABOUT
FORECLOSED PROPERTIES, THIS IS
ABOUT ABANDONED PROPERTIES.
THE PROGRAM WILL HELP REHAB
OVER 600 PROPERTIES IN NEW YORK
CITY ALONE.
BUT THIS IS NOT JUST AN ISSUE
FOR NEW YORK.
THIS IS A NATIONAL PROBLEM.
IT WAS CREATED BY A DECADE OF
OVERHEATED MORTGAGE LENDING AND
EXCESS ON WALL STREET.
IT MAKES SENSE THAT OUR CITIES
SHOULD HAVE A NATIONAL
BUT CONTRARY TO COMMON SENSE,
THE BILL WE CONSIDER TODAY WILL
ABANDON OUR CITIES AND TOWNS
AND FORCE THEM TO DEAL WITH
THIS ISSUE ON THEIR OWN.
THE FORECLOSURE CRISIS HAS A
RIPPLE EFFECT ON OUR WHOLE
ECONOMY.
FORECLOSED AND ABANDONED HOMES
CONSUME LIMITED RESOURCES.
AT THE SAME TIME, THESE HOMES
LOWER PROPERTY VALUES FOR
EVERYONE IN THE NEIGHBORHOOD.
ASSISTANCE FROM N.S.P. CANNOT
ONLY REHAB HOMES BUT HELP RAISE
PROPERTY VALUES.
THIS BILL ELIMINATES THE ONLY
HOUSEING PROGRAM TRYING TO STEM
THIS EFFECT.
FORECLOSURES ARE COSTLY TO
EVERYONE.
WITHOUT THIS PROGRAM, MAIN
STREET WILL BEAR THE COSTS OF A
PROBLEM CREATED ON WALL STREET.
NATIONWIDE, WE HAVE NEARLY
100,000 PROGRAMS WILL BE
OVERTAKEN WITH NSP FUNDS AND
WORKING FAMILIES WILL ONCE
AGAIN HAVE ACCESS TO AFFORDABLE
HOUSING.
YES, IF THIS LEGISLATION IS
ENACTED, 200 PROJECTS IN NEW
YORK CITY WILL GO UNFINISHED.
WITHDRAWING SUPPORT AT THIS
STAGE WILL SLOW THE RECOVERY IN
OUR HOUSING SECTOR, NOT JUST
FOR NEW YORK CITY BUT FOR
CITIES AND TOWNS ACROSS
AMERICA.
MR. CHAIRMAN, I URGE A NO VOTE
ON THIS ILL CONCEIVED AND I
WOULD SAY MEAN-SPIRITED
LEGISLATION.
TIME.
TIME HAS EXPIRED.
THE GENTLELADY FROM ILLINOIS.
AT THIS TIME, MR.
CHAIRMAN, I WOULD LIKE TO YIELD
ONE MINUTE TO THE GENTLEMAN
FROM VIRGINIA, THE MAJORITY
LEADER, MR. CANTOR.
THE
GENTLEMAN IS RECOGNIZED FOR ONE
MINUTE.
I THANK THE
GENTLELADY.
MR. CHAIRMAN FROM DAY ONE, THE
MAJORITY OF THIS CONGRESS
PROMISED THE AMERICAN PEOPLE
THAT WE WOULD FOCUS LIKE A LAZE
OWN PRODUCING RESULTS.
OTHER THE PAST FEW MONTHS, WE
HAVE ALREADY BEGUN TO DELIVER
THAT PROMISE BY UPENDING THE
CULTURE OF SPENDING THAT
PREVAILED IN WASHINGTON AND
REPLACE IT WITH A CULTURE OF
SAVINGS.
THE MOST IMPORTANT THING
GOVERNMENT CAN DO RIGHT NOW IS
TO CREATE AN ENVIRONMENT THAT
FOSTERS OPPORTUNITY FOR PEOPLE.
BUT IF YOU TALK TO SMALL
BUSINESSES AND ENTREPRENEURS
WHO CREATE JOHNS, THEY'LL TELL
YOU THAT THE EXPLOSION OF
GOVERNMENT DEBT IS THREATENING
THEIR ABILITY TO INNOVATE AND
COMPETE.
UNLESS WE MOVE SWIFTLY TO
CHANGE COURSE, OUR ECONOMY WILL
BE CONSUMED BY FEARS OF FUTURE
TAX INCREASES AN HIGHER
BORROWING COSTS.
THAT'S WHY OUR MAJORITY IS
DEDICATED TO OUR CUT AND GROW
AGENDA CUTTING SPENDING AND
JOB-DESTROYING REGULATIONS AND
GROWING PRIVATE SECTOR JOBS IN
THE ECONOMY.
YESTERDAY, WE TOOK ANOTHER
SIGNIFICANT STEP TOWARD REURN
-- TOWARD RETURNING SPENDING TO
2008 LEVELS.
TODAY WE ARE -- WE OFFER
MEMBERS A CHANCE THROUGH THE
YOUCUT PROGRAM TO CUT AN
ADDITIONAL $1 BILLION IN WASTE.
THIS LEGISLATION, ENDORSED BY
MILLION OF -- MILLIONS OF
VOTERS IN THE YOUCUT PROGRAM,
WOULD TERMINATE THE
NEIGHBORHOOD STABILIZATION
PROGRAM A POT OF MONEY AS THE
OTHER SIDE WILL TELL YOU THAT
ENABLES STATE AND LOCAL
GOVERNMENTS TO BUY AND
REHABILITATE FORECLOSED HOMES.
INSTEAD OF BENEFITING AT-RISK
HOMEOWNERS FACING FORECLOSURE,
HOWEVER THIS PROGRAM MAY
INSTEAD CREATE PERVERSE
INCENTIVES FOR BANKS AND OTHER
LENDERS TO FORECLOSE ON
TROUBLED BORROWERS.
THE PEOPLE'S HOUSE IS DRAWING A
FIRM LINE IN THE STAND AGAINST
WASTEFUL SPENDING AND
INEFFICIENT GOVERNMENT PROGRAMS
AND I URGE MY COLLEAGUES TO
SUPPORT THIS LEGISLATION.
I YIELD BACK.
THE
GENTLEMAN'S TIME HAS EXPIRE THE
GENTLEMAN FROM MASSACHUSETTS.
HOW MUCH TIME
REMAINS ON BOTH SIDES?
THE
GENTLEMAN FROM MASSACHUSETTS
HAS FOUR MINUTES REMAPING.
THE GENTLELADY FROM ILLINOIS
HAS -- THE GENTLELADY FROM
ILLINOIS HAS THREE AND A HALF
MINUTES REMAINING.
THERE'S JUST TWO
SPEAKERS ON THIS SIDE.
I'LL RESERVE THEN,
I'M THE LAST SPEAKER.
I YIELD ONE AND A
HALF MINUTES TO THE GENTLEMAN
FROM CALIFORNIA.
THE GENTLEMAN IS
RECOGNIZED.
MY GOOD FRIEND MR. FRANK SAID,
SHOW ME WHERE THESE THINGS HAVE
OCCURRED.
I CAN'T SHOW YOU ANY BECAUSE
THERE'S NO REQUIREMENTS.
OF THESE NONPROFIT,
NONGOVERNMENT ENTITIES OUT HERE
WHO BOUGHT A HOUSE, THEY HAVE
$180,000 IN THE HOUSE.
ONE OF THE BOARD MEMBERS'
COUSINS COULD BUY THE HOUSE FOR
$100,000 AND IT DOES NOT
VIOLATE THE REQUIREMENTS WITHIN
THE BILL.
BECAUSE IT SAYS YOU HAVE TO
SELL THE HOUSE FOR LESS THAN
THE ACQUISITION AND
REHABILITATION PRICES.
IT DOES NOT SAY HOW MUCH LESS,
IT SAYS YOU MUST NOT EXCEED THE
AMOUNT.
MY GOOD FRIEND IS CORRECT, I
CANNOT SHOW YOU THERE'S NO --
THE EGREGIOUS ACT BECAUSE
THERE'S NO EGREGIOUS ACT
DEFINED IN THE LEGISLATION.
I BELIEVE WE'RE TRYING TO SAY
THAT THE REPUBLICANS ARE ON THE
SIDE OF TAXPAYERS AN WE BELIEVE
WE NEED TO DO EVERYTHING WE CAN
TO CREATE JOBS.
IF WE LEAVE $7 BILLION IN THE
ECONOMY BASED ON THE BASIC
MONEY MULTIPLY OVER 10%, IT
CREATES $70 BILLION WORTH OF
ECONOMY AND GENERATION.
WE BELIEVE IN THAT.
WE DO BELIEVE IN FAIR RULES.
AND WE BELIEVE THAT IF A PERP
HAS TO WATCH THEIR HOME GO INTO
FORECLOSURE, AND THEY LIVE IN
CALIFORNIA, AND THEY WATCH A
COUNTY, A CITY OR A NONPROFIT
GROUP BUY THAT HOME, THAT THEY
CAN SELL THAT HOME TO SOMEBODY
FOR $68,000 AND ALL THAT PERSON
CAN DO THAT LOST THEIR HOME IS
WIPE THE TEARS AWAY.
THE
GENTLEMAN'S TIME HAS EXPIRED.
THE GENTLEMAN FROM
MASSACHUSETTS.
REMAINING TIME.
I APPRECIATE THE GENTLEMAN'S
ACKNOWLEDGMENT.
WITH ALL THEIR EFFORTS, THEY'RE
OUT FINDING PICTURES OF
ABANDONED HOUSES THEY COULDN'T
FIND ONE EXAMPLE WHERE THE
ABUSE TOOK PLACE.
THERE ARE A SET OF RESTRICTIONS
THAT H.U.D. HAS THAT I SUBMIT
UNDER GENERAL LEAVE BUT LET'S
REVIEW SOME OF THEIR ERROR
THESMS FUNDAMENTAL ERROR IS THE
ARGUMENT THAT THIS IS A PROGRAM
WHICH BUYS MONEY FROM BANKS
THAT HAVE FORECLOSED AND OWN
THE PROPERTY.
IN FACT, IT IS FORECLOSED AND
ABANDONED POT.
THERE ARE ALSO ENTITIES THAT
FORECLOSE THAT WEREN'T BANKS
THAT ARE NONEXISTENT ANYMORE.
YES, IT DOES NOT DEAL WITH ALL
THE PROPERTIES.
WHERE THERE IS A RESPONSIBLE
BANK THAT YOU CAN GO AFTER, THE
CITIES GO AFTER THEM.
BUT THE SUGGESTION THAT IN
DETROIT IN CLEVELAND IN BOSTON
IN CHICAGO AND IN OUR RURAL
AREAS, THERE ARE NO ABANDONED
PROPERTIES THAT LACK SOMEONE
YOU CAN SUE, IS UNREALITY.
THIS IS A TRIUMPH OF
IDEOLOGICAL REFLECTS -- REFLEX
OVER EMPIRICAL OBSERVATION.
WHAT THIS SAYS TO CITIES IS,
WHERE YOU CANNOT FIND A
RESPONSIBLE OWNER TO GO AFTER
AND THE PROPERTY IS FESTERING,
IF IT'S TOO FAR GONE, YOU CAN
TEAR IT DOWN.
IF IT'S NOT TOO FAR GONE, YOU
CAN TAKE IT AND RESELL IT FOR
AN AFFORDABLE UNIT.
IT'S GOT TO BE A LIMITED INCOME
SITUATION.
NOW, SO THAT DISPUTES THE WHOLE
NOTION THAT THERE'S ALWAYS
SOMEBODY ELSE YOU CAN GET.
BUT I STILL BELIEVE IT'S TRUE
THAT WE SHOPT LET THIS COME
FROM THE TAXPAYER.
I WANT TO REITERATE AND I'LL
MAKE THIS OFFER, IN THE
CONFERENCE COMMITTEE ON
FINANCIAL REFORM, WHEN THIS
BILL WAS PASSED, THAT'S TRUE
ALSO, BY THE WAY OF THE
EMERGENCY HOMEOWNERS' RELIEF,
WE SAID LET'S NOT HAVE IT COME
FROM THE TAXPAYER, LET'S HAVE
IT COME FROM FINANCIAL
INSTITUTIONS WITH $50 BILLION
OR MORE IN ASSETS EXCEPT FOR
HEDGE FUNDS WORTH $10 BILLION
OR MORE IN ASSETS.
IF THAT HAD PASSED, IT WOULD
HAVE COST THE TAXPAYERS, THE
GENERAL REVENUE, NOTHING.
IT WOULD NOT HAVE ADDED TO THE
TO THE EXTENT SOME FINANCIAL
CONSTITUTIONS WERE BENEFITING,
THEY WOULD HAVED HAD TO
IT WOULD HAVE HAD THE LARGER
SMALLER INSTITUTIONS.
THE REPUBLICANS KILLED THAT
BEFORE BUT I BELIEVE IN
REPENTANCE, MR. CHAIRMAN.
I BELIEVE IN SECOND CHANCES FOR
MISCREE APTS.
I'M GOING TO GIVE MY --
MISCREANTS.
I'M GOING TO GIVE MY REPUBLICAN
COLLEAGUES A SEC CHANCE.
HERE ARE THE CHOICES.
YOU CAN TELL DETROIT AND
CLEVELAND AND OTHER CITIES, YOU
TEAR DOWN THAT PROPERTY WHERE
THERE'S NOBODY ELSE TO GO TO
AND YOU PAY FOR IT AN LAY OFF
COPS AND TEACHERS AND
FIREFIGHTERS.
OR YOU LEAVE THE PROPERTY UP
THERE TO FESTER, OR YOU DO IT
OUR WAY.
YOU JOIN IN ASSESSING THE LARGE
FINANCIAL INSTITUTIONS, AND I
DON'T MEAN TO DEMONIZE CITY
CORP., BANK OF AMERICA, GOLDMAN
SACHS, THESE ARE DECENT PEOPLE,
TRYING TO MAKE A PROFIT, I
DON'T ALWAYS AGREE WITH THEM.
WHY DON'T WE LET THEM PAY THE
$1 BILLION SO IF THERE'S A YEN
UNION CONCERN ABOUT THE
DEFICIT, I'M SKEPTICAL WHEN
PEOPLE WANT TO SEND THE MONEY
TO AFGHANISTAN AND IRAQ AND
BRAZILIAN COTTON FARMERS --
THAT'S RIGHT, OBAMA MADE THEM
DO THAT.
WHENEVER THEY HAVE A TOUGH
DECISION, OBAMA DID IT.
WHY CAN'T THEY SOLVE THE
PROBLEMS WITH FANNIE AND
FREDDIE?
OBAMA WON'T TELL THEM HOW.
LET'S GO BACK TO THE GENTLEMAN
FROM ALABAMA HE FEEL FOUND A
BUILDING SO DECREPIT HE HAD A
PICTURE AND HE SAID TO US, YOU
CAN GO TO THE OWNER OF THAT
BUILDING AND GET THE MONEY.
WELL, HE CAN FIND A BUILDING TO
TAKE A PICTURE BUT COULDN'T
FIND THE OWN .
I ASKED HIM, TELL ME WHO THE
OWNER IS AND LET'S GO AFTER
HIM.
HE DOESN'T KNOW WHO THE OWNER
IS.
IN SOME CASES NOBODY KNOWS WHO
THE OWNER IS.
MAYBE IT WAS FORECLOSED ON BY
AN ENTITY THAT NO LONGER
EXISTS.
MAKE THE LARGE FINANCIAL
INSTITUTIONS PAY FOR THIS AND
SAVE THE CITIES MONEY THEY
DON'T HAVE.
THE
TIME OF THE GENTLEMAN HAS
EXPIRED.
THE GENTLELADY FROM ILLINOIS.
I YIELD MYSELF
THE REMAINDER OF THE TIME.
THE
GENTLELADY IS RECOGNIZED.
THE GENTLEMAN
MIGHT BE INTERESTED TO KNOW
THERE WAS A HOPE 6 BILL, AN
AMENDMENT TO H.L. 3524 -- H.R.
3524, MADE BY REPRESENTATIVE
SESSIONS.
IT SOUGHT TO MAINTAIN H.U.D.'S
AUTHORITY TO ISSUE DEMOLITION
ONLY GRANTS.
THAT FAILED BY A VOTE OF
186-221.
VOTING NO ON THAT WAS THE
GENTLEMAN, MR. FRANK, MS.
WATERS, MR. ELLISON -- I CAN'T
YIELD NOW.
I DON'T HAVE MUCH TIME.
YOU KNOW, I'VE BEEN LISTENING
TO ALL OF THIS AND I THINK THAT
EVERYBODY KNOWS WE ALL WANT TO
GET THE HOUSING MARKET BACK ON
TRACK.
WE ALL WANT TO BE ABLE TO HELP
THOSE THAT ARE IN TROUBLE.
BUT MANY OF THE COLLEAGUES ON
MY OTHER SIDE SAID IF YOU END
THESE PROGRAMS THERE WILL BE
NOTHING.
THAT'S NOT TRUE.
OF THE $4.1 MILLION MORTGAGE
MODIFICATIONS COMPLETED, $-- OF
THE 4.1 MILLION MORTGAGE
MODIFICATIONS COMPLETED, 3.5
MILLION WERE DONE WITHOUT A
DIME FOR THE TAXPAYERS.
THERE'S A MARKET OUT THERE.
THERE'S ALSO THE HOME
AFFORDABLE REFINANCE PROGRAM,
HARP, FOR HOMEOWNERS AND DON'T
FORGET THE HEART IS HIS FUND,
PRESIDENT OBAMA ACKNOWLEDGED
AND $300 MILLION WERE COMMITTED
FOR HOME OPERS FOR A VOLUNTARY
F.H.A. PROGRAM.
MILLIONS HAVE BEEN APPROPRIATED
FOR FORECLOSURE COUNSELING AND
THERE ARE COUNTLESS LOCAL,
STATE AND PRIVATE SECTOR
LET US NOT FORGET THIS IS BEING
TAKEN CARE OF AND RATHER THAN
HAVING A PROGRAM THAT REALLY
DOESN'T AFFECT THOSE THAT HAVE
BEEN FORECLOSED ON, IT REALLY
IS A PROGRAM FOR COUNTIES,
NONPROFITS, FOR STATES, AND IT
CAN INCENTIVE FRTS BANKS AND
OTHERS TO FORECLOSE, WORSENING
AND PROLONGING THE HOUSING
CRISIS.
LET'S GET BACK TO WHAT THIS
IT DOESN'T HELP TAXPAYERS.
WITH THAT, I YIELD BACK THE
BALANCE OF MY TIME.
THE
GENTLELADY'S TIME HAS EXPIRED.
ALL TIME FOR GENERAL DEBATE HAS
EXPIRED.
PURSUANT TO THE RULE, THE
AMENDMENT IN THE NATURE OF A
SUBSTITUTE PRINTED IN THE BILL
SHALL BE CONSIDERED AS A BILL
URN THE FIVE-MINUTE RULE.
NO AMENDMENT TO THE COMMITTEE
AMENDMENT IS IN ORDER EXCEPT
THOSE PRINTED IN BART B OF
HOUSE REPORT 111--- 112-28
46789 AMENDMENT NUMBER 9 AND
AMENDMENT NUMBER 10 MAY BE
OFFERED ONLY EN BLOC, MAY BE
OFFERED ONLY BY THE MEMBER
SPECIFIED IN THE REPORT, THE
TIME SHALL BE EQUALLY DIVIDED
AND CONTROLLED BY THE PO
COMPONENT AND AN OPPONENT AND
SHALL NOT BE SUBJECT TO
AMENDMENT OR A DEMAND FOR
DIVISION OF THE QUESTION.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM MINNESOTA SEEK
RECOGNITION?
I HAVE A
PREFERENTIAL MOTION AT THE
DESK.
THE
CLERK WILL READ THE MEAGS.
THE GENTLEMAN FROM
MINNESOTA MOVES THAT THE
COMMITTEE DO NOW RISE WITH THE
RECOMMENDATION THAT THE
ENACTING CLAUSE BE STRICKEN.
THE
GENTLEMAN IS RECOGNIZED FOR
FIVE MINUTES IN SUPPORT OF HIS
MOGS.
I RISE AND MAKE
THE MOTION TODAY BECAUSE I'M
OPPOSED TO THE UNDERLYING BILL,
THE N.S.P. TERMINATION ACT.
MR. CHAIRMAN, IN THE COURSE OF
THIS DEBATE ON THE TERMINATION
OF FORECLOSURE MITIGATION
PROGRAMS INCLUDING THIS BILL,
WE'VE BEEN ENMESHED IN A HUGE
DEBATE AROUND WHAT THE PROPER
ROLE OF GOVERNMENT IS.
THE REPUBLICAN CAUCUS CLEARLY
THINKS GOVERNMENT HAS NO ROLE,
THAT CITIZENS ARE ON THEIR OWN
AND THAT NO MATTER HOW MUCH
DEAF TAKE A PARTICULAR
PHENOMENON, LIKE THE
FORECLOSURE CRISIS HAS CAUSED,
THAT CITIZENS JUST HAVE NO HELP
IN THE GOVERNMENT.
THE GOVERNMENT CAN'T BE THERE
FOR THEM.
AND ON THE OTHER HAND, THE
DEMOCRATIC CAUCUS, WE BELIEVE
THAT IN THE PROPER
CIRCUMSTANCES THE GOVERNMENT
HAS AN IMPORTANT ROLE AND DOES
NEED TO BE THERE FOR THE
AMERICAN PEOPLE AND WHERE WE
SEE PROPERTY VALUES DROPPING,
WHOLE NEIGHBORHOODS DESTROYED,
THAT WE SHOULD DO SOMETHING
THIS MOTION TO STRIKE THE
ENACTING CLAUSE, ACCORDING TO
RULE 18 CLAUSE 9, QUOTE, IF
CARRIED IN THE HOUSE SHALL
CONSTITUTE A REJECTION OF THE
BILL, UNQUOTE.
AND MR. CHAIR, I DO URGE THAT
WE REJECT THIS BILL.
THIS BILL IS AN AFFRONT AND
INSULT AT A TIME WHEN AMERICANS
HAVE SEEN OVER FOUR MILLION
FORECLOSURES ACROSS THIS
NATION.
DEVASTATING WHOLE COMMUNITIES,
DEVASTATING COMMUNITIES AND
WIPING OUT CITY AND HEW NISS
PAL BUDGETS SO THAT CITIES,
WHEN THEY HAVE ABANDONED
PROPERTIES ON THEIR
NEIGHBORHOODS, ARE LEFT WITH
TEARING THEM DOWN AND
DEMOLISHING THEM ON THE NICKEL
OF THE TAXPAYERS OF THAT CITY
WHEN THIS IS A COMMUNITY-WIDE
BODY.
THERE IS NO MONEY IN THE CITIES
TO DO THE DEMOLITION.
WHAT WILL HAPPEN IS THAT AN
OLD, BURNED OUT HAWK WILL SIT
THERE AND SIT THERE AND PEOPLE
WILL SEE THEIR HOME VALUES
WHAT WE SEE IS PEOPLE LEAVING
DOGS THERE.
PERHAPS THE HOUSE WILL BE AN
ATTRACTIVE NUISANCE.
NEIGHBORS WILL FALL DEEPER AND
DEEPER INTO DESPAIR.
I GREW UP IN THE CITY OF
DETROIT.
I'M HONORED TO REPRESENT THE
FIFTH DISTRICT OF MINNESOTA.
I GREW UP IN DETROIT.
I SAW THE FORECLOSURES OF THAT
CITY RIPPED THAT TOWN APART.
AND THE GOOD PEOPLE OF THAT
CITY HAD TO SIT BY AND WATCH
FOLKS BURN HOUSES.
THEY WOULD PUT THEM ON FIRE AND
YEARS LATER NO MONEY TO
DEMOLISH THEM.
IT JUST HELPED FOLKS SAY THAT,
YOU KNOW WHAT, I AM GOING TO
LEAVE THE CITY BECAUSE I CAN'T
-- I CAN'T STAND TO LIVE THERE
WITH THAT BIG HAWK NEXT TO MY
HOME.
THIS IS NOT THE PROPER ROLE OF
THIS IS WHAT THIS IS ALL ABOUT.
MR. CHAIRMAN, I HAVE HEARD OUR
FRIENDS ON THE REPUBLICAN
CAUCUS TALK ABOUT JOBS, YET,
THEY HAVEN'T INTRODUCED ONE
SINGLE JOBS BILL AND WE HAVE
BEEN HERE FOR 11 WEEKS.
THEY TALK ABOUT THE DEFICIT AND
GO ON AND ON AD NAUSEAM ABOUT
PUTTING DEBT ON OUR CHILDREN
AND GRANDCHILDREN.
AND YET WHEN THEY HAD THE
CHANCE TO RAISE REVENUE SO WE
COULD IN FACT PAY THE BILLS OF
THIS COUNTRY THEY WERE
ABSOLUTELY AND ADAMANTLY
OPPOSED TO IT.
BUT NOW WHEN WE SEE AMERICANS
HAVE THEIR NEIGHBORHOODS
SLIPPING INTO OBLIVION, SLIP
INTO A SITUATION WHERE PEOPLE
CAN'T LIVE IN THE NEIGHBORHOOD
AND PEOPLE CAN'T SELL THEIR
HOMES SO THEY'RE JUST
SUFFERING, THE REPUBLICAN
CAULKS SAID THERE'S NOTHING --
CAUCUS SAID THERE'S NOTHING WE
CAN DO REALLY.
THEY DON'T DEMONSTRATE THE
COMMITMENT TO JOBS ORDEAL WITH
THE DEFICIT.
AT LEAST NOT -- OR DEAL WITH
THE DEFICIT.
IT SETS AMERICANS ADRIFT.
I OFFER THIS AMENDMENT.
THIS IS NOT A BROKEN THAT
SHOULD BE ELIMINATED.
IT'S A VITALLY IMPORTANT
PROGRAM FOR LOCAL AND STATE
GOVERNMENTS THAT NEEDS ALL THE
RESOURCES THEY COULD GET TO
ADDRESS NEIGHBORHOODS OVERRUN
BY FORECLOSURES.
ACCORDING TO H.U.D., THE
NEIGHBORHOOD STABILIZATION
PROGRAM HAS SUPPORTED OVER
100,000 JOBS NATIONWIDE.
THEY WOULD BE ELIMINATED IF WE
THAT'S RIGHT.
REPUBLICANS ARE AGAIN CUTTING
ANOTHER 100,000 JOBS FOR
WORKING AMERICANS.
SO, MR. CHAIR, WHAT DOES THE
NEIGHBORHOOD STABILIZATION
PROGRAM DO?
IT HELPS LOCAL AND STATE
GOVERNMENTS RENOVATE ABANDONED
AND FORECLOSED PROPERTIES.
IT HELPS LOCAL GOVERNMENT IT'S
REVITALIZE COMMUNITIES.
IT GIVES COMMUNITIES THE
ABILITY TO GET BACK ON THEIR
FEET AS QUICKLY AS POSSIBLE.
IN MY DISTRICT THE CITY OF
MINNEAPOLIS HAS PUT N.S.P.
FUNDING TO GOOD USE.
THE DIRECTOR OF HOUSE AND
PROPERTY DEVELOPMENT FOR THE
CITY OF MINNEAPOLIS AND HE
STATES, QUOTE, THE NEIGHBORHOOD
STABILIZATION PROGRAM HAS
ENABLED THE CITY OF MAPS TO
STABILIZE THE -- MINNEAPOLIS TO
STABILIZE THOSE FORECLOSURES.
WITH THE ADDITIONAL FUNDING
SOUGHT, 56 MORE PROPERTIES
COULD BE REHABILITATED BRINGING
EVEN MORE HOMEOWNERS BACK INTO
NEIGHBORHOODS, UNQUOTE.
I BELIEVE THE N.S.P. PROGRAM IS
A GOOD INVESTMENT, AND I YIELD
BACK.
THE GENTLEMAN'S TIME
HAS EXPIRED.
THE QUESTION IS ON THE
PREFERENTIAL MOTION OFFERED BY
THE GENTLEMAN FROM MINNESOTA.
ALL THOSE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE NOES HAVE IT.
THE GENTLEMAN FROM MINNESOTA.
I ASK FOR A
RECORDED VOTE AND PENDING THAT
I MAKE A POINT OF ORDER THAT A
QUORUM IS NOT PRESENT.
THE CHAIR WILL COUNT
FOR A QUORUM.
DOES THE GENTLEMAN FROM
MINNESOTA WITHDRAW HIS POINT OF
ORDER?
YES.
THE CHAIR WILL COUNT
THOSE IN SUPPORT OF THE REQUEST
FOR A RECORDED VOTE WILL RISE
A SUFFICIENT NUMBER HAVING 34.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM MINNESOTA SEEK
RECOGNITION?
I HAVE AN
AMENDMENT AT THE DESK.
THE CLERK WILL
DESIGNATE THE AMENDMENT.
PRINTED IN PART B OF HOUSE
REPORT 111-OFFERED BY MR.
ELLISON OF MINNESOTA.
-- 112-34 OFFERED BY MR.
ELLISON OF MINNESOTA.
PURSUANT TO THE
RESOLUTION, THE GENTLEMAN FROM
MINNESOTA, MR. ELLISON, AND A
CONTROL FIVE MINUTES.
THE GENTLEMAN MAY PROCEED.
I YIELD MYSELF
SUCH TIME AS I MAY CONSUME.
RECOGNIZED.
THE DEFICIT IS
RISING BECAUSE THE REPUBLICANS
ARE GIVING BIG BREAKS TO
SPECIAL INTERESTS.
INSTEAD OF WORKING MIDDLE CLASS
FAMILIES IN THEIR HOMES, THE
REPUBLICANS' PLAN IS TO -- THE
AMERICAN PEOPLE SENT US HERE TO
PROTECT THE AMERICAN DREAM.
NOT TO PERPETUATE A WALL STREET
NIGHTMARE.
DEMOCRATS ARE STANDING WITH THE
AMERICAN PEOPLE TO CREATE
GOOD-PAYING AMERICAN JOBS AND
TO KEEP THEM IN THEIR HOMES.
DEMOCRATS ARE WORKING TO ENSURE
THAT EVERY AMERICAN WHO WANTS A
GOOD JOB CAN FIND ONE AND THAT
MIDDLE-CLASS AMERICANS CAN
AFFORD TO BUY A HOME AND LIVE
THE AMERICAN DREAM.
THE LEGISLATION ON THE FLOOR
TODAY PROPOSES CUTTING FUNDING
FOR NEIGHBORHOOD STABILIZATION
PROGRAM.
REPUBLICANS WANT TO FORECLOSURE
ON THE MIDDLE CLASS, AND MY
AMENDMENT FORCES MEMBERS TO
LOOK AT HOW THIS LEGISLATION
WILL IMPACT THEIR STATE.
SO FAR FOR EACH MEMBER, IF YOU
READ MY AMENDMENT, YOU'LL SEE
HOW MUCH FUNDING MAY BE CUT
FROM YOUR STATE.
MY FEELING IS THAT BEFORE
REPUBLICANS VOTE TO CUT FUNDING
FOR A SUCCESSFUL HOUSING
PROGRAM AND FORECLOSURE
MITIGATION PROGRAM THEY SHOULD
KNOW HOW MUCH FUNDING IS AT
RISK FOR THEIR STATE AND WHAT
THE PEOPLE BACK HOME ARE GOING
TO THINK ABOUT THEIR VOTE.
THIS LEGISLATION TO CUT HOUSING
FUNDING MAKES IT CLEAR THAT THE
MAJORITY IS NOT FOCUSED ON
CREATING JOBS.
THE NEIGHBORHOOD STABILIZATION
PROGRAM HELPS LOCAL COMMUNITIES
REPAIR ABANDONED AND FORECLOSED
PROPERTIES.
IT TAKES WORKERS TO DEMOLISH AN
ABANDONED BUILDING.
OVERALL, THE NEIGHBORHOOD
STABILIZATION PROGRAM HAS
CREATED ABOUT 93,000 JOBS.
THIS LEGISLATION TO CUT N.S.P.
FUNDING IS JUST ANOTHER BILL
OFFERED UP BY THE MAJORITY THAT
WILL CUT JOBS.
THE UNEMPLOYMENT RATE IS
CURRENTLY 8.9%.
THIS RATE IS FAR TOO HIGH.
IT IS WASTING HUMAN CAPITAL.
PEOPLE'S SKILLS AND TALENTS ARE
SITTING ON THE SIDELINES
INSTEAD OF BEING PUT TO GOOD
USE.
UNEMPLOYED AMERICANS ARE
ALREADY BACK TO WORK AND WE
MUST USE EVERY TOOL AT OUR
DISPOSAL TO CREATE NEW JOBS.
INSTEAD OF CREATING JOBS, THE
REPUBLICAN MAJORITY IS
LAUNCHING AN ATTACK ON AMERICAN
WORKERS AND FORECLOSURING ON
THE AMERICAN DREAM.
THE REPUBLICAN PLAN TO CUT
FUNDING AND CUT JOBS WON'T HELP
OUR ECONOMY.
IT'S GOING TO DO THE OPPOSITE.
IT'S GOING TO HOLD BACK OUR
ECONOMIC RECOVERY.
THE CONTINUING RESOLUTION
PASSED LAST MONTH BY THE
MAJORITY WOULD CUT $60 BILLION
FROM PROGRAMS AND AGENCIES.
ECONOMIST MARK ZANDI ESTIMATES
THAT THIS WILL CUT 700,000
JOBS.
WE CAN'T ACCEPT ANOTHER HIGH
LEVEL OF UNEMPLOYMENT IN THIS
COUNTRY.
OUR REPUBLICAN COLLEAGUES ARE
PUSHING A RECKLESS AND
IRRESPONSIBLE PLAN THAT WILL
HAVE GIVEAWAYS TO CORPORATE
SPECIAL INTERESTS AT THE
EXPENSE OF THE MIDDLE CLASS.
I URGE MY COLLEAGUES TO SUPPORT
MY AMENDMENT AND TO VOTE
AGAINST THE UNDERLYING BILL.
TIME.
THE GENTLEMAN
TIME.
THE GENTLEMAN FROM CALIFORNIA.
YES.
I RAISE TO CLAIM TIME IN
OPPOSITION.
THE GENTLEMAN IS
RECOGNIZED FOR FIVE MINUTES.
THIS AMENDMENT.
THIS AMENDMENT ONLY DEALS WITH
STAGE THREE OF A PROJECT THAT
SHOULD ONLY BE ONE PHASE.
NOW, I WISH THEY WOULD HAVE
TALKED ABOUT PHASE TWO BECAUSE
I WISHED YOU WOULD STUDY WHERE
THE MONEY WENT ON PHASE TWO
BECAUSE IN PHASE TWO ALONE WE
GIVE AWAY $1.3 BILLION TO
NONGOVERNMENT ENTITIES,
INCORPORATED BUSINESSES THAT
ARE NONPROFIT.
BUT YOU HAVE TO SAY WE DID NOT
STOP A FORECLOSURE.
WE JUST GAVE AWAY IN S.P. 2
$1.3 BILLION.
OF THAT NEIGHBORHOOD LENDING
PARTNERS RECEIVED $15 MILLION.
THEY DO NOT HAVE TO PAY IT
BACK.
NOW, THEY COULD TAKE THAT $15
MILLION.
I'M SURE THEY'RE A VERY
REPUTABLE COMPANY.
THEY COULD SELL THOSE HOUSES
FOR ANYTHING AS LONG AS IT'S
BELOW THE PRICE THEY HAVE
INVESTED.
LOS ANGELES NEIGHBORHOOD
HOUSING SERVICES, INC., $60
MILLION.
NEIGHBORHOOD LENDING PARTNERS
OF SOUTH FLORIDA, $30 MILLION.
I WISH WE WOULD HAVE TAKEN THE
TIME TO REVIEW TO SAY HOW WAS
THE MONEY SPENT.
US.
LET'S SEE WHAT H.U.D. DID.
H.U.D. EDITED THE STATE OF
KANSAS NEIGHBORHOOD
STABILIZATION PROGRAM IN S.P. 1
AND SAID THAT THE STATE
OBLIGATED MORE THAN $12 MILLION
OF THE S.P. 1 FUNDS.
H.U.D. OF SACRAMENTO DID NOT
ADMINISTER THE N.S.P. FUNDS IN
ACCORDANCE.
IT ALLOWED INELIGIBLE
PROPERTIES TO BE REHABILITATED,
DID NOT ADEQUATELY MONITOR
PROJECTS.
PERMITTED THE DEVELOPER TO MAKE
UNNECESSARY UPGRADES, AND
OVERLY INFLATED CONSTRUCTION
BUDGETS.
DID NOT ENSURE THAT IT MET THE
REPORTING REQUIREMENTS AND
LACKED MANAGEMENT CONTROLS.
I WISH WE WOULD HAVE AUDITED
THIS ONE IN THIS AMENDMENT TOO.
THEY AUDITED THE CITY OF
DENVER, COLORADO.
THE CITY AND PROPERTY OBLIGATED
MORE THAN $1.5 MILLION OF ITS
N.S.P. FUNDS BY RECORDING ITS
FUNDS AS OBLIGATED.
H.U.D. AND O.I.G. REVIEWED THE
CITY OF CHATTANOOGA, TENNESSEE.
IT WAS SOMETIMES INCONSISTENT
WITH IDENTIFYING OBLIGATIONS
AND WAS NOT ALWAYS ACCURATE ON
REPORTING TO H.U.D.
ON LOUISVILLE, KENTUCKY, AGAIN,
VERY SIMILAR TO THE PREVIOUS.
AUGUSTA, GEORGIA, DID NOT HAVE
INTERNAL CONTROL TO PERFORM
CONTINUOUS AND ROUTINE
OBLIGATIONS OF THE PROCESS TO
MAKE SURE THAT THE PROCESS WAS
AS INTENDED.
THEY REVIEWED CLARK COUNTY,
NEVADA AND SAID THEY NEED TO
REVISE ITS WRITTEN PROCEDURES
IN DEVELOPER AGREEMENTS TO MAKE
SURE THAT PROPERTIES TO BE SOLD
TO ELIGIBLE HOMEBUYERS WOULD BE
SOLD AT A PRICE PERMITTED.
MEANING THEY WERE SELLING IT
FOR TOO MUCH MONEY.
SO ALTHOUGH I DO SUPPORT THE
AMENDMENT AT HAND I WISH IT
WOULD HAVE REVIEWED PHASE ONE
AND TWO.
I RESERVE THE BALANCE OF MY
TIME.
THE GENTLEMAN
RESERVES THE BALANCE OF HIS
TIME.
THE GENTLEMAN FROM MINNESOTA.
HOW MUCH TIME
REMAINS ON THIS SIDE?
BOTH SIDES HAVE TWO
MINUTES REMAINING.
BALANCE OF THE TIME.
THE GENTLEMAN IS
RECOGNIZED.
TWO PARTICULAR
POINTS, MR. CHAIR.
ONE IS THAT FIRST OF ALL,
THERE'S NEVER BEEN A PROGRAM
FOR ANY STATE, FEDERAL OR LOCAL
PROGRAM THAT DID NOT NEED
REVIEW AND I CAN TELL YOU THAT
IN THE CITY OF MINNEAPOLIS AND
IN MANY OTHER PLACES THIS
PROGRAM HAS BEEN HIGH QUALITY
AND HAS BEEN WELL, WELL RUN.
NOW, THE QUESTION IS
INTERESTING BECAUSE IF THE
GENTLEMAN WANTED TO TALK ABOUT
INEFFICIENCIES IN A PROGRAM WE
COULD TALK ABOUT FIXING THOSE
PROGRAMS.
WE'RE NOT TALKING ABOUT FIXING
THE N.S.P. PROGRAM.
WE ARE TALKING ABOUT
ELIMINATING IT AND SO I THINK
IF THIS WAS A SINCERELY MADE
POINT THEN WE'D BE TALKING
ABOUT HOW WE CAN IMPROVE THE
PROGRAM.
WE SHOULD MEND IT, NOT END IT.
SECONDLY, THIS AMENDMENT THAT
I'M OFFERING TRIES TO INFORM
MEMBERS AS TO THE LOSSES THAT
THEIR COMMUNITIES WILL ENDURE
BY CUTTING THE PROGRAM.
THIS PROGRAM ELIMINATION WILL
BE FELT ACROSS AMERICA IN LOCAL
COMMUNITIES WHERE FORECLOSURES
ARE HAPPENING AND IN THOSE
PARTICULAR COMMUNITIES MEMBERS
SHOULD KNOW WHAT'S GOING TO
HAPPEN.
THAT EXPENDITURES FOR
DEMOLISHING AND REHABILITATING
ABANDONED HOMES ARE NOT GOING
TO BE THERE ANYMORE.
I THINK IT'S IMPORTANT THAT
MEMBERS SHOULD KNOW.
I THINK IT'S IMPORTANT THAT THE
PEOPLE WHO LIVE IN THE MEMBERS'
COMMUNITIES SHOULD KNOW.
AND SO I ASK THAT THE AMENDMENT
BE ADOPTED.
I YIELD BACK.
THE GENTLEMAN'S TIME
HAS EXPIRED.
THE GENTLEMAN FROM CALIFORNIA.
I YIELD MYSELF SUCH
TIME AS I MAY CONSUME.
THE GENTLEMAN IS
RECOGNIZED FOR TWO MINUTES.
I DISAGREE, IT'S
NOT TIME TO AMEND AND PRETEND.
THE TIME TO END.
THE PROBLEM WITH THIS PROGRAM
IS I HIGHLIGHTED YOU A FEW
VIOLATIONS BUT IT'S REALLY HARD
TO VIOLATE THE PROGRAM
SO FEW REQUIREMENTS.
IT SAYS WE'RE GOING TO GIVE YOU
MONEY.
YOU CAN BUY PROPERTY, YOU CAN
DEMOLISH HOUSES, YOU CAN BUY
PROPERTY, YOU CAN REHABILITATE
THOSE PROPERTIES.
YOU HAVE VAST GUIDELINES ON HOW
YOU REHABILITATE THEM.
IN FACT, AN ORGANIZATION IS NOT
EVEN REQUIRED TO HAVE
COMPETITIVE BIDS.
I CAN SAY I NEED SOME FRAMING
DONE.
I CAN LEND A SOLE SOURCE
CONTRACT.
MORE THAN ONE PERSON APPLIED.
THE PERSON I ASKED TO APPLY.
AND I CAN PAY THEM THE MONEYS I
DEEM APPROPRIATE.
IT SAYS YOU HAVE TO SELL THE
HOUSE FOR LESS THAN YOU HAVE IN
IT.
IT DOESN'T SAY YOU SHOULD
ATTEMPT TO TRY TO SELL IT AT
FAIR MARKET VALUE, ALTHOUGH
I'VE GIVEN YOU A LIST OF HOW
MUCH YOU CAN MAKE.
WHICH IS QUITE A BIT OF MONEY.
AND BUY THOSE HOUSES.
IT DOES NOT RESTRICT IT TO WHO
YOU SELL IT TOO.
IT DOES NOT RESTRICT THE
THEM.
IN FACT, IT'S ALMOST IMPOSSIBLE
TO HAVE A CONFLICT OF INTEREST
BECAUSE THERE'S NO CONFLICT
DESIGNED IN THE BILL.
WE CAN SAY LET'S AMEND AND
PRETEND BUT LET'S JUST END.
I YIELD BACK.
TIME.
THE GENTLEMAN'S TIME
HAS EXPIRED.
ALL TIME HAS EXPIRED.
THE QUESTION IS ON THE
AMENDMENT OFFERED BY THE
GENTLEMAN FROM MINNESOTA.
THOSE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE NOES HAVE IT.
THE AMENDMENT IS NOT AGREED TO.
THE GENTLEMAN FROM CALIFORNIA.
THE AMENDMENT IS NOT AGREED TO.
A RECORDED VOTE HAS BEEN
REQUESTED.
PURSUANT TO CLAUSE 6 OF RULE
18, FURTHER PROCEEDINGS ON THE
AMENDMENT OFFERED BY THE
GENTLEMAN FROM MINNESOTA WILL
BE POSTPONED.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 2 PRINTED IN
PART B OF HOUSE REPORT 112-34.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM VIRGINIA SEEK
RECOGNITION?
MR. CHAIRMAN, I HAVE
AN AMENDMENT AT THE DESK MADE
IN ORDER UNDER THE RULE.
THE CLERK WILL
DESIGNATE THE AMENDMENT.
AMENDMENT NUMBER 2
PRINTED IN PART B OF HOUSE
REPORT 112-34, OFFERED BY MR.
HURT OF VIRGINIA.
PURSUANT TO HOUSE
RESOLUTION 170, THE GENTLEMAN
FROM VIRGINIA, MR. HURT, AND A
MEMBER OPPOSED EACH WILL
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES THE
GENTLEMAN FROM VIRGINIA.
I WANT TO THANK MY
COLLEAGUES AND CHAIRMAN MILLER
AND CHAIRMAN BACHUS FOR THEIR
HELP ON THIS ISSUE.
THIS -- AT A TIME WHEN OUR
NATION FACES OVER $14 TRILLION
IN DEBT, $1.6 TRILLION IN
DEFICIT SPENDING, WE ARE
BORROWING OTHER 40 CENTS ON
EVERY DOLLAR WE SPEND, WE
CANNOT CONTINUE TO HAVE
TAXPAYERS FOOT THE BILL FOR
PROGRAMS THAT HARM OUR ECONOMIC
RECOVERY.
THAT'S WHY I'M OFFERING AN
AMENDMENT THAT WOULD DIRECT ALL
UNOBLIGATED FUNDS TO BE
RETURNED TO THE TREASURY TO
REDUCE THE DEFICIT OF THE
FEDERAL GOVERNMENT ONCE THE
PROGRAM IS TERMINATED.
THE PEOPLE OF VIRGINIA'S FIFTH
DISTRICT CALL FOR SERIOUS AND
BOLD CHANGE LAST NOVEMBER.
BY WORKING TO REDUCE THE SIND
AND -- SIZE AND SCOPE OF THE
FEDERAL GOVERNMENT AN REIN IN
OUT OF CONTROL SPENDING, WE ARE
LISTENING TO THE PEOPLE TO
CHANGE THE CULTURE IN OUR
NATION'S CAPITAL SO WE CAN GROW
THE ECONOMY FOR ALL VIRGINIANS
AND ALL AMERICANS.
I ASK MY COLLEAGUES TO SUPPORT
THIS AMENDMENT AND THE
UNDERLYING BILL.
I RESERVE THE PLANS OF MY TIME.
THE GENTLEMAN
RESERVES HIS TIME.
WHO SEEKS TIME IN OPPOSITION?
THE GENTLEMAN FROM
MASSACHUSETTS.
MR. CHAIRMAN, I