WASHINGTON, DC – As the U.S. Senate takes up debate on the housing bill, Senator Sherrod Brown (D-OH) released an estimate of federal funds heading to Ohio neighborhoods under the legislation. Brown discussed his report, which estimates federal funds directed to Ohio counties and metropolitan areas based on their foreclosure rates.
“The American Dream is slipping away from thousands of middle class Ohioans due to the rise in foreclosures,” said Senator Brown. “We must act swiftly to reverse this trend and invest in our neighborhoods. This week, I’ll be fighting for legislation that will help families hold onto their homes and assist in the rebuilding of communities. We will not be deterred by the president’s veto threat of this effort to help Ohio neighborhoods.”
The Housing and Economic Recovery Act of 2008 will be voted on by the Senate this week. This bipartisan legislation, which would provide $11 billion in additional bonding authority and $3.9 billion in grants to support community development projects, faces a veto threat from President George W. Bush.
New foreclosure filings across Ohio grew by 6.7 percent last year, to 84,751 cases in 2007, according to Policy Matters Ohio. Foreclosures have led to vacant homes and a reduction in property values in surrounding areas. According to the Center for American Progress, Ohio stands to benefit from $151.1 million in direct funds for neighborhood stabilization projects. It is estimated that this would have a multiplier effect of $326.3 million in the new jobs and rehabilitated housing created by the program. This would allow more than 4,600 properties in Ohio to be restored, generating an estimated 3,042 new jobs statewide.
Brown’s report, which bases estimates on the number of foreclosures in a metropolitan area, projects that Cleveland will receive $58 million in federal funds. This is followed by $28.3 million for Columbus, $16.5 million for Dayton, $15.6 for Cincinnati, $11.7 million for Toledo, $7.3 million for Youngstown, $2.1 million for Southeastern Ohio, $1.5 million for Steubenville, $1.24 million for Lima, $993,000 for Zanesville, and $288,000 for Van Wert.
Earlier this year, Brown helped secure an additional $80 million in the foreclosure assistance bill for housing counseling, bringing the total to $180 million. Brown also successfully fought to add $200 million in the final report for Transportation, Housing and Urban Development Appropriations Act of 2008 for HUD-certified nonprofit organizations to conduct foreclosure prevention counseling. Additionally, the Borrower’s Protection Act of 2007, legislation which Brown co-authored, would upgrade standards by which mortgage brokers and originators must abide when making new loans to borrowers.
In the Housing and Economic Recovery Act of 2008, Ohio stands to benefit from more than $150 million in direct funds to stabilize neighborhoods hard-hit by foreclosure.
