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Terminate the Neighborhood Stabilization Program
H.R. 861 BILL PDF | FINAL VOTE 242-182

Created in 2008, this program provides funding to state and local government to buy and rehabilitate foreclosed homes. Congress has appropriated $7 billion for the program, including $2 billion in the Obama Administration’s stimulus bill. This program encourages government purchase of private homes and some critics have argued that it does not benefit at-risk homeowners facing foreclosure, and may instead create perverse incentives for banks and other lenders to foreclose on troubled borrowers – arguably worsening the housing crisis. This proposal would terminate the last installment of funding which was included in the financial regulation bill in the last Congress, savings taxpayers up to $1 billion.

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