The Senate is set for a procedural vote today on the Democrat’s version of the Housing Bill (S. 2636). This vote will determine whether enough Republican members are ready to begin debating this bill as it will require a supermajority of 60 votes to pass. Pressure is building on Senate members to take up some sort of Housing legislation as the country continues to deal with the current home foreclosure crisis.
Republican members have been unwilling to move to this legislation mainly because they have not had sufficient guarantees that they will be allowed a fair number of amendment votes. They would also like to offer, possibly as a substitute amendment, their own version of Housing legislation. Democratic members fear that an open amendment process could lead some Republican members to offer non-housing related amendments such as a permanent extension of President Bush’s 2001 and 2003 tax cuts.
As we have mentioned several times in the past, here is a brief summary (per this article) of the Democrats proposal:
The bill would, for the first time, allow bankruptcy judges to reset mortgages on primary residences. It would also provide $4 billion for local communities to buy and refurbish foreclosed properties, provide $200 million for counseling to help homeowners avoid foreclosure, give tax breaks for the home-building industry and improve loan disclosure and transparency.
The Republican’s alternative proposal includes the following provisions (detailed in this article), among other things:
For their part, Senate Republicans have coalesced around a counter-proposal of their own sponsored by Sens. Kit Bond (R-Mo.), Lamar Alexander (R-Tenn.) and Johnny Isakson (R-Ga.). Among other things, it would offer a $15,000 tax credit for the purchase of homes in or near foreclosure.
The Republican alternative would also provide $10 billion in bond authority to refinance sub-prime mortgages and $180 million for counseling services to help families avoid foreclosure.
The Hill reports that although many provisions within the Republican alternative are supported by some its more conservative members, some strong criticism of their proposal has been emanating from conservative think tanks in Washington. Their main source of contention with the Republican measure has been the tax-credit provision. Some say it punishes those who follow the rules and keep up with their payments.
Update: View our post here for results of the vote.
Great post. The tax breaks for home builders make me uneasy, but it’s sponsored by some pretty reputable Democrats.
I voted yes :)
http://www.govit.com/S_2636/