S88 CONGRESSIONAL RECORD — SENATE January 6, 2009 

‘‘(1) IN GENERAL.—The term of office of an 

individual appointed to the advisory council 

under subsection (b)(3) shall be 4 years, except that any individual appointed to fill a 

vacancy on the advisory council shall serve 

for the remainder of the unexpired term. A 

member may serve after the expiration of 

the member’s term until a successor has 

been appointed. 

‘‘(2) REAPPOINTMENTS.—A member of the 

advisory council who has been appointed 

under subsection (b)(3) for a term of 4 years 

may not be reappointed to the advisory 

council prior to the expiration of the 2-year 

period beginning on the date on which the 

prior term expired. 

‘‘(3) VACANCY.—If a vacancy occurs on the 

advisory council among the members under 

subsection (b)(3), the Secretary shall make 

an appointment to fill that vacancy not later 

than 90 days after the date on which the vacancy occurs. 

‘‘(d) CHAIRPERSON.—The chairperson of the 

advisory council shall be selected by the Secretary from among the members appointed 

under subsection (b)(3), except that the Secretary may select the Director of the Center 

to be the chairperson of the advisory council. 

The term of office of the chairperson shall be 

2 years. 

‘‘(e) MEETINGS.—The advisory council shall 

meet at the call of the chairperson or upon 

the request of the Director of the Center, but 

not less than 3 times each fiscal year. The location of the meetings of the advisory council shall be subject to the approval of the Director of the Center. 

‘‘(f) ADMINISTRATIVE PROVISIONS.—The Director of the Center shall designate a member of the staff of the Center to serve as the 

executive secretary of the advisory council. 

The Director of the Center shall make available to the advisory council such staff, information, and other assistance as the council 

may require to carry out its functions. The 

Director of the Center shall provide orientation and training for new members of the advisory council to provide such members with 

such information and training as may be appropriate for their effective participation in 

the functions of the advisory council. 

‘‘(g) COMMENTS AND RECOMMENDATIONS.— 

The advisory council may prepare, for inclusion in the biennial report under section 

485L— 

‘‘(1) comments with respect to the activities of the advisory council in the fiscal 

years for which the report is prepared; 

‘‘(2) comments on the progress of the Center in meeting its objectives; and 

‘‘(3) recommendations with respect to the 

future direction and program and policy emphasis of the center. 

The advisory council may prepare such additional reports as it may determine appropriate. 

‘‘SEC. 485L. BIENNIAL REPORT. 

‘‘The Director of the Center, after consultation with the advisory council for the 

Center, shall prepare for inclusion in the biennial report under section 403, a biennial report that shall consist of a description of the 

activities of the Center and program policies 

of the Director of the Center in the fiscal 

years for which the report is prepared. The 

Director of the Center may prepare such additional reports as the Director determines 

appropriate. The Director of the Center shall 

provide the advisory council of the Center an 

opportunity for the submission of the written comments described in section 485K(g). 

‘‘SEC. 485M. QUARTERLY REPORT. 

‘‘The Director of the Center shall prepare 

and submit to Congress a quarterly report 

that contains a summary of findings and policy implications derived from research conducted or supported through the Center.’’. 

By Mrs. FEINSTEIN: 

S. 116. A bill to require the Secretary 

of the Treasury to allocate 

$10,000,000,000 of Troubled Asset Relief 

Program funds to local governments 

that have suffered significant losses 

due to highly-rated investments in 

failed financial institutions; to the 

Committee on Banking, Housing, and 

Urban Affairs. 

Mrs. FEINSTEIN. MR. President, I 

rise today to introduce legislation that 

will provide relief to local governments 

that have suffered losses due to highlyrated investments with failed financial 

institutions, such as Lehman Brothers 

and Washington Mutual. 

The TARP Assistance for Local Governments Act would require the Treasury Secretary to provide $10 billion in 

TARP funds to local governments that 

suffered losses due to investments in 

failed financial institutions; and limit 

relief to local governments with investments in failed financial institutions that were highly rated, as determined by the Treasury Secretary. 

This legislation is necessary because 

local governments are in jeopardy of 

losing up to $10 billion as a result of 

these investments. 

In California 28 cities and counties 

could lose nearly $300 million. 

These investments include basic 

operational funds which cities and 

counties rely upon to function. 

For many cities and counties that 

are already struggling with budget 

shortfalls, the consequences of these 

losses are severe. 

Public safety, education, public 

health, infrastructure, and transit will 

be compromised. 

Communities large and small are significantly impacted. 

These are examples from my State 

that demonstrate the gravity of this 

situation. 

This list was included in a December 

22 letter to Secretary Paulson, and to 

date, I have not received a response. 

San Mateo County sustained a loss of 

$30 million, which will require the 

county to abandon plans for a new and 

urgently needed county jail. The current jail will continue to operate in 

overcrowded conditions, far beyond the 

rating of the facility. The result will be 

unsafe working conditions for the corrections personnel and the likelihood 

that convicted criminals will be released into the community early and in 

large numbers. 

The City of Shafter, a small community of 15,000 in the San Joaquin Valley, sustained a loss of $300,000, or nearly 4 percent of its annual budget. The 

City will be forced to make across-theboard cuts in all services, including police and fire. 

Monterey County is facing a $30 million loss. Amid numerous other cuts, 

hardest hit will be programs targeting 

gang activities, including a special 

task force and the construction of new 

adult and juvenile corrections facilities 

to manage these criminals. 

The San Mateo County Transportation Authority sustained a loss of 

more than $25 million, which will mean 

delays and higher costs for major 

projects that will reduce emissions and 

traffic, specifically the electrification 

of the Caltrain Peninsula Commuter 

Rail Service. Similarly, cuts in highway and roads projects will put more 

people on the local roads for longer 

times at a major cost in compromised 

air quality. 

The City of Culver City has lost $1 

million. This will result in a substantial reduction in planned street repairs 

and higher liability exposure from accidents, greater environmental degradation from storm water drain off, 

and worsened traffic congestion in a region of the U.S. ranked as one of the 

worst for traffic. 

The Hillsborough City School District lost over $924,000. Projects to create more classrooms for increased enrollment will not take place, increasing class sizes. Combined with other 

budget cuts from the State, all the District’s programs are threatened. 

The Vallejo Sanitation and Flood 

Control District, which provides sanitary sewer and storm water services to 

the City of Vallejo, population 119,600, 

and nearby areas of Solano County, 

sustained losses of $4.5 million in Lehman Brothers investments and $1.46 

million in Washington Mutual investments. The result is that aging infrastructure essential to the health of this 

community will not be replaced. The 

City of Vallejo recently declared Chapter 9 Municipal bankruptcy. 

Sacramento County sustained an increase in costs of $8 million related to 

an interest rate swap agreement with 

Lehman. This increase means fewer 

funds for sheriff’s patrol and investigations and probation supervision, resulting in an increased risk to the safety of 

the community and reductions in social safety net services, at a time of increased community need. 

The City of Folsom lost $700,000, 

which has caused the City to indefinitely postpone staffing and equipping 

a new fire station. 

The San Mateo County Community 

College District sustained a loss of $25 

million in voter-approved bond funds. 

As a result, the District will be forced 

to abandon a program to build more 

classrooms, and, therefore, turn away 

thousands of potential students, many 

of them unemployed adults seeking job 

training. 

The economic rescue legislation included a provision to require the Secretary of the Treasury to consider the 

impact of these losses on local governments when disbursing TARP funds. 

But, to date, the Secretary has not 

exercised his authority to assist local 

governments with such funds. 

The TARP Assistance for Local Governments Act of 2009 will change this, 

and ensure that communities remain 

solvent and taxpayers are protected. 

Given the urgency of this situation, 

we can no longer afford to wait. 

I hope that my colleagues will join 

me in supporting this important legislation. 


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January 6, 2009 CONGRESSIONAL RECORD — SENATE S89 

By Mr. KOHL (for himself, Ms. 

COLLINS, Mrs. LINCOLN, Mrs. 

BOXER, and Ms. MIKULSKI): 

S. 117. A bill to protect the property 

and security of homeowners who are 

subject to foreclosure proceedings, and 

for other purposes; to the Committee 

on Banking, Housing, and Urban Affairs. 

Mr. KOHL. Mr. President, I am introducing the Foreclosure Rescue Fraud 

Act of 2009 with my colleagues Senators COLLINS and LINCOLN. This legislation, which we introduced last Congress, will make it more difficult for financial predators to take advantage of 

homeowners in foreclosure. 

Foreclosure rescue scams are another 

consequence of the housing crisis that 

is plaguing the country. Foreclosure 

filings have been climbing across the 

country for the past two years and in 

Wisconsin, filings have risen 22 percent 

over the past year. Additionally, the 

Federal Reserve estimates that 2.5 million Americans will be facing foreclosure in 2009. As default rates and 

foreclosure filings have steadily increased, so have financial scams which 

prey on homeowners. The Better Business Bureau listed foreclosure rescue 

scams as one of the top ten financial 

scams in 2008. 

For most people, their home is their 

greatest asset. When a homeowner falls 

behind in their payments, it can cause 

a great deal of emotional stress on the 

family. Scam artists prey on owner’s 

desperation and give them a false sense 

of security, claiming they can help 

‘‘save their home.’’ The types of scams 

vary, but the end result is that the 

homeowner is left in a more desperate 

situation than before. 

The Foreclosure Rescue Fraud Act 

aims to prevent these cruel abuses by 

increasing disclosure and creating 

strict requirements for a person or entity offering foreclosure-rescue services. The legislation prohibits a ‘‘foreclosure consultant’’ from collecting 

any fee or compensation before completing contracted services, and from 

obtaining power of attorney from a 

homeowner. It also requires full disclosure of third-party consideration in the 

property and creates a 3-day right to 

cancel the foreclosure-rescue contract. 

Finally, the legislation creates a federal ‘‘floor’’ of protection and allows 

states without rescue-fraud laws to use 

these provisions as a way to help scam 

victims. The Foreclosure Rescue Fraud 

Act will make it easier for states and 

the Federal Government to combat 

these schemes and protect people who 

are already financially distressed from 

being made worse off. 

The past year has exposed the irregularities and inadequacies of our banking regulations. As Congress continues 

to work on proposals to restore confidence in our financial industry, it is 

imperative that we put in place new 

rules and regulations that better protect consumers in order to avoid further economic strain. 

By Mr. KOHL (for himself, Mr. 

SCHUMER, Mr. DURBIN, Mr. 

BROWN, Mr. NELSON of Florida, 

Ms. STABENOW, Mr. LEAHY, and 

Mr. CASEY): 

S. 118. A bill to amend section 202 of 

the Housing Act of 1959, to improve the 

program under such section for supportive housing for the elderly, and for 

other purposes; to the Committee on 

Banking, Housing, and Urban Affairs. 

Mr. KOHL. Mr. President, I am introducing the Section 202 Supportive 

Housing for the Elderly Act of 2008 

with my colleague Senator CHARLES

SCHUMER for the purpose of expanding 

and improving the Department of 

Housing and Urban Development’s Section 202 Supportive Housing for the Elderly Program. Section 202 provides 

capital grants to nonprofit community 

organizations for the development of 

supportive housing and provision of 

rental assistance exclusively for lowincome seniors. This program supplies 

housing that includes access to supportive services to allow seniors to remain safely in their homes and age in 

place. Access to supportive services reduces the occurrence of costly nursing 

home stays and helps save both seniors 

and the Federal Government money. 

There are over 300,000 seniors living 

in 6,000 Section 202 developments 

across the country. Unfortunately, the 

program is far from meeting the growing demand. Approximately 730,000 additional senior housing units will be 

needed by 2020 in order to address the 

future housing needs of low-income 

seniors. There are currently 10 seniors 

vying for each unit that becomes available, with many seniors waiting years 

before finding a home. To make matters worse, we are losing older Section 

202 properties to developers of highpriced condominiums and apartments. 

As a result, many seniors currently 

participating in the program could end 

up homeless. 

Congress needs to act now to address 

the demand for safe, affordable senior 

housing. Our legislation would promote 

the construction of new senior housing 

facilities as well as preserve and improve upon existing facilities. The legislation would also support the conversion of existing facilities into assisted 

living facilities that provide a wide variety of additional supportive health 

and social services. Under current law, 

these processes are time-consuming 

and bureaucratic, often requiring waivers and special permission from HUD. 

Finally, our legislation provides priority consideration for our homeless 

seniors seeking a place to call their 

own. With this bill, we hope to reduce 

current impediments and increase the 

availability of affordable and supportive housing for our Nations most 

vulnerable seniors. 

I want to thank the American Association of Homes and Services for the 

Aging as well as the Wisconsin Association of Homes and Services for the 

Aging for being champions of this legislation and for working with us to develop a comprehensive bill that will 

help meet the growing need for senior 

housing in this Nation. 

Senior citizens deserve to have housing that will help them maintain their 

independence. I urge that my colleagues will join Senator SCHUMER and 

me in our efforts to ensure that older 

Americans have a place to call home 

during their golden years. 

Mr. President, I ask unanimous consent that the text of the bill be printed 

in the RECORD. 

There being no objection, the text of 

the bill was ordered to be printed in 

the RECORD, as follows: 

S. 118 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as 

the ‘‘Section 202 Supportive Housing for the 

Elderly Act of 2009’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—NEW CONSTRUCTION REFORMS 

Sec. 101. Project rental assistance. 

Sec. 102. Selection criteria. 

Sec. 103. Development cost limitations. 

Sec. 104. Owner deposits. 

Sec. 105. Definition of private nonprofit organization. 

Sec. 106. Preferences for homeless elderly. 

Sec. 107. Nonmetropolitan allocation. 

TITLE II—REFINANCING 

Sec. 201. Approval of prepayment of debt. 

Sec. 202. Sources of refinancing. 

Sec. 203. Use of unexpended amounts. 

Sec. 204. Use of project residual receipts. 

Sec. 205. Additional provisions. 

TITLE III—ASSISTED LIVING FACILITIES 

Sec. 301. Definition of assisted living facility. 

Sec. 302. Monthly assistance payment under 

rental assistance. 

TITLE IV—FACILITATING AFFORDABLE 

HOUSING PRESERVATION TRANSACTIONS 

Sec. 401. Use of sale or refinancing proceeds. 

TITLE V—NATIONAL SENIOR HOUSING 

CLEARINGHOUSE 

Sec. 501. National senior housing clearinghouse. 

TITLE I—NEW CONSTRUCTION REFORMS 

SEC. 101. PROJECT RENTAL ASSISTANCE. 

Paragraph (2) of section 202(c) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)) is 

amended— 

(1) by inserting after ‘‘ASSISTANCE.—’’ the 

following: ‘‘(A) INITIAL PROJECT RENTAL ASSISTANCE CONTRACT.—’’; 

(2) in the last sentence, by striking ‘‘may’’ 

and inserting ‘‘shall’’; and 

(3) by adding at the end the following new 

subparagraph: 

‘‘(B) RENEWAL OF AND INCREASES IN CONTRACT AMOUNTS.— 

‘‘(i) EXPIRATION OF CONTRACT TERM.—Upon 

the expiration of each contract term, the 

Secretary shall adjust the annual contract 

amount to provide for reasonable project 

costs, and any increases, including adequate 

reserves, supportive services, and service coordinators, except that any contract 

amounts not used by a project during a contract term shall not be available for such adjustments upon renewal. 

‘‘(ii) EMERGENCY SITUATIONS.—In the event 

of emergency situations that are outside the 


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