![](media/image1.jpeg){width="6.302083333333333in" height="1.125in"}

# Legislative Bulletin.............................................\............May 7, 2008

**Contents:**

**H.R. 5818**---Amendments to the Neighborhood Stabilization Act

H.R. 5818, the Neighborhood Stabilization Act (sponsored by Rep. Maxine
Waters, D-CA), is scheduled to be considered on the House floor on
Wednesday, May 7, 2008, subject to a structured rule ([**H.Res.
1174**](http://thomas.loc.gov/cgi-bin/query/z?c110:H.Res.1174:/)),
making in order the seven amendments summarized below, each debatable
for 10 minutes.

The rule waives all points of order against consideration of the bill,
except those regarding PAYGO and earmarks, waives all points of order
against the bill itself---except the PAYGO rule---and allows the Chair
to postpone consideration of the legislation at any time during its
consideration. The rule allows one motion to recommit with or without
instructions.

The rule also provides that, after a motion that the Committee of the
Whole rise has been rejected on a legislative day, the Chair may
entertain another such motion on that day only if offered by the
chairman of the Committee on Financial Services, the Majority Leader, or
a designee of the Leader.

[Note]{.underline}: The summaries below are based on RSC staff review of
*actual amendment text* and thus differ from what's on the Rules
Committee website. For a summary of the underlying bill, see a separate
RSC document released today.

**[RSC Staff Contact]{.underline}**: Paul Teller;
<paul.teller@mail.house.gov>; 202-226-9718

**AMENDMENTS MADE IN ORDER UNDER THE RULE**

***1. Waters (D-CA)/Frank (D-MA):*** This amendment would:

-   provide for allocations of loan and grant amounts directly to
    qualified metropolitan cities and qualified urban counties, in
    addition to the states;

-   make the definition of operating expenses consistent with other HUD
    programs; and

-   provide that qualifying single family foreclosed housing under this
    legislation is that which does not exceed the lesser of 110% of the
    average purchase price for single family housing in the area **OR**
    the current appraised value of the property (except that if the
    current appraised value is less than 110% of the average purchase
    price, the program participant may appeal to have the cap be the
    average purchase price for the area).

**2. Capito (R-WV):** Requires that the loan/grant programs in the
underlying bill be administered through HUD's Office of Community
Planning and Development.

***3. Mahoney (D-FL):*** Clarifies that nothing in this bill would
affect the right to bear arms under the Second Amendment to the U.S.
Constitution.

**4. Hensarling (R-TX):** Terminates the grant authorities in the
underlying bill and redirects all funds for the grant program to the
loan program (for a total of \$15 billion in loans). The amendment
sponsor notes that the premise behind it is that "*if* it is necessary
to give states extra resources to address the current housing turmoil,
then it ought to be done is a fiscally responsible way that does not
increase the deficit."

***5. Kucinich (D-OH):*** Modifies one purpose of the legislation to
emphasize the need to "preserve the equity and ensure the safety of the
neighbors of homes made vacant by the predatory lending and foreclosure
crises," and provides that an allocation recipient under the bill
prioritize the allocation of funds to areas with high concentration of
vacancies and foreclosures (and opposed to just foreclosures in the
underlying bill).

**6. McCotter (R-MI):** Directs states distributing loan and grant funds
for housing rehabilitation under this bill to give priority to veterans,
members of the Armed Forces on active duty, members of the National
Guard or Armed Forces reserves, school teachers, and emergency
responders when reselling the rehabilitated property.

***7. Altmire (D-PA):*** Clarifies that illegal immigrants would be
ineligible for financial assistance under this bill.