H. R. 3221—195 
of credit insured by the Federal Housing Administration for 
the purchase of a manufactured home. 
‘‘(d) UNFAIR AND DECEPTIVE PRACTICES.—In connection with 
the purchase of a manufactured home financed with a loan or 
extension of credit insured by the Federal Housing Administration 
under this title, the Secretary shall prohibit acts or practices in 
connection with loans or extensions of credit that the Secretary 
finds to be unfair, deceptive, or otherwise not in the interests 
of the borrower.’’. 
SEC. 2150. LEASEHOLD REQUIREMENTS. 
Subsection (b) of section 2 of the National Housing Act (12 
U.S.C. 1703(b)), as amended by the preceding provisions of this 
title, is further amended by adding at the end the following new 
paragraph: 
‘‘(11) LEASEHOLD REQUIREMENTS.—No insurance shall be 
granted under this section to any such financial institution 
with respect to any obligation representing any such loan, 
advance of credit, or purchase by it, made for the purposes 
of financing a manufactured home which is intended to be 
situated in a manufactured home community pursuant to a 
lease, unless such lease— 
‘‘(A) expires not less than 3 years after the origination 
date of the obligation; 
‘‘(B) is renewable upon the expiration of the original 
3 year term by successive 1 year terms; and 
‘‘(C) requires the lessor to provide the lessee written 
notice of termination of the lease not less than 180 days 
prior to the expiration of the current lease term in the 
event the lessee is required to move due to the closing 
of the manufactured home community, and further provides 
that failure to provide such notice to the mortgagor in 
a timely manner will cause the lease term, at its expiration, 
to automatically renew for an additional 1 year term.’’. 
TITLE II—MORTGAGE FORECLOSURE 
PROTECTIONS FOR SERVICEMEMBERS 
SEC. 2201. TEMPORARY INCREASE IN MAXIMUM LOAN GUARANTY 
AMOUNT FOR CERTAIN HOUSING LOANS GUARANTEED 
BY THE SECRETARY OF VETERANS AFFAIRS. 
Notwithstanding subparagraph (C) of section 3703(a)(1) of title 
38, United States Code, for purposes of any loan described in 
subparagraph (A)(i)(IV) of such section that is originated during 
the period beginning on the date of the enactment of this Act 
and ending on December 31, 2008, the term ‘‘maximum guaranty 
amount’’ shall mean an amount equal to 25 percent of the higher 
of— 
(1) the limitation determined under section 305(a)(2) of 
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) for the calendar year in which the loan is originated 
for a single-family residence; or 
(2) 125 percent of the area median price for a single- 
family residence, but in no case to exceed 175 percent of the
H. R. 3221—196 
limitation determined under such section 305(a)(2) for the cal-
endar year in which the loan is originated for a single-family 
residence. 
SEC. 2202. COUNSELING ON MORTGAGE FORECLOSURES FOR MEM-
BERS OF THE ARMED FORCES RETURNING FROM 
SERVICE ABROAD. 
(a) IN GENERAL.—The Secretary of Defense shall develop and 
implement a program to advise members of the Armed Forces 
(including members of the National Guard and Reserve) who are 
returning from service on active duty abroad (including service 
in Operation Iraqi Freedom and Operation Enduring Freedom) 
on actions to be taken by such members to prevent or forestall 
mortgage foreclosures. 
(b) ELEMENTS.—The program required by subsection (a) shall 
include the following: 
(1) Credit counseling. 
(2) Home mortgage counseling. 
(3) Such other counseling and information as the Secretary 
considers appropriate for purposes of the program. 
(c) TIMING
OF PROVISION
OF COUNSELING.—Counseling and 
other information under the program required by subsection (a) 
shall be provided to a member of the Armed Forces covered by 
the program as soon as practicable after the return of the member 
from service as described in subsection (a). 
SEC. 2203. ENHANCEMENT OF PROTECTIONS FOR SERVICEMEMBERS 
RELATING TO MORTGAGES AND MORTGAGE FORE-
CLOSURES. 
(a) EXTENSION OF PERIOD OF PROTECTIONS AGAINST MORTGAGE 
FORECLOSURES.— 
(1) EXTENSION OF PROTECTION PERIOD.—Subsection (c) of 
section 303 of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 533) is amended by striking ‘‘90 days’’ and inserting 
‘‘9 months’’. 
(2) EXTENSION
OF
STAY
OF
PROCEEDINGS
PERIOD.—Sub-
section (b) of such section is amended by striking ‘‘90 days’’ 
and inserting ‘‘9 months’’. 
(b) TREATMENT OF MORTGAGES AS OBLIGATIONS SUBJECT TO 
INTEREST RATE LIMITATION.—Section 207 of the Servicemembers 
Civil Relief Act (50 U.S.C. App. 527) is amended— 
(1) in subsection (a)(1), by striking ‘‘in excess of 6 percent’’ 
the second place it appears and all that follows and inserting 
‘‘in excess of 6 percent— 
‘‘(A) during the period of military service and one year 
thereafter, in the case of an obligation or liability consisting 
of a mortgage, trust deed, or other security in the nature 
of a mortgage; or 
‘‘(B) during the period of military service, in the case 
of any other obligation or liability.’’; and 
(2) by striking subsection (d) and inserting the following 
new subsection: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) INTEREST.—The term ‘interest’ includes service charges, 
renewal charges, fees, or any other charges (except bona fide 
insurance) with respect to an obligation or liability.
H. R. 3221—197 
‘‘(2) OBLIGATION
OR
LIABILITY.—The term ‘obligation or 
liability’ includes an obligation or liability consisting of a mort-
gage, trust deed, or other security in the nature of a mortgage.’’. 
(c) EFFECTIVE DATE; SUNSET.— 
(1) EFFECTIVE DATE.—The amendment made by subsection 
(a) shall take effect on the date of enactment of this Act. 
(2) SUNSET.—The amendments made by subsection (a) shall 
expire on December 31, 2010. Effective January 1, 2011, the 
provisions of subsections (b) and (c) of section 303 of the 
Servicemembers Civil Relief Act, as in effect on the day before 
the date of the enactment of this Act, are hereby revived. 
TITLE 
III—EMERGENCY 
ASSISTANCE 
FOR THE REDEVELOPMENT OF ABAN-
DONED AND FORECLOSED HOMES 
SEC. 2301. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF 
ABANDONED AND FORECLOSED HOMES. 
(a) DIRECT APPROPRIATIONS.—There are appropriated out of 
any money in the Treasury not otherwise appropriated for the 
fiscal year 2008, $4,000,000,000, to remain available until expended, 
for assistance to States and units of general local government 
(as such terms are defined in section 102 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302)) for the 
redevelopment of abandoned and foreclosed upon homes and resi-
dential properties. 
(b) ALLOCATION OF APPROPRIATED AMOUNTS.— 
(1) IN GENERAL.—The amounts appropriated or otherwise 
made available to States and units of general local government 
under this section shall be allocated based on a funding formula 
established by the Secretary of Housing and Urban Develop-
ment (in this title referred to as the ‘‘Secretary’’). 
(2) FORMULA TO BE DEVISED SWIFTLY.—The funding formula 
required under paragraph (1) shall be established not later 
than 60 days after the date of enactment of this section. 
(3) CRITERIA.—The funding formula required under para-
graph (1) shall ensure that any amounts appropriated or other-
wise made available under this section are allocated to States 
and units of general local government with the greatest need, 
as such need is determined in the discretion of the Secretary 
based on— 
(A) the number and percentage of home foreclosures 
in each State or unit of general local government; 
(B) the number and percentage of homes financed by 
a subprime mortgage related loan in each State or unit 
of general local government; and 
(C) the number and percentage of homes in default 
or delinquency in each State or unit of general local govern-
ment. 
(4) DISTRIBUTION.—Amounts appropriated or otherwise 
made available under this section shall be distributed according 
to the funding formula established by the Secretary under 
paragraph (1) not later than 30 days after the establishment 
of such formula. 
(c) USE OF FUNDS.—
H. R. 3221—198 
(1) IN GENERAL.—Any State or unit of general local govern-
ment that receives amounts pursuant to this section shall, 
not later than 18 months after the receipt of such amounts, 
use such amounts to purchase and redevelop abandoned and 
foreclosed homes and residential properties. 
(2) PRIORITY.—Any State or unit of general local govern-
ment that receives amounts pursuant to this section shall in 
distributing such amounts give priority emphasis and consider-
ation to those metropolitan areas, metropolitan cities, urban 
areas, rural areas, low- and moderate-income areas, and other 
areas with the greatest need, including those— 
(A) with the greatest percentage of home foreclosures; 
(B) with the highest percentage of homes financed 
by a subprime mortgage related loan; and 
(C) identified by the State or unit of general local 
government as likely to face a significant rise in the rate 
of home foreclosures. 
(3) ELIGIBLE USES.—Amounts made available under this 
section may be used to— 
(A) establish financing mechanisms for purchase and 
redevelopment of foreclosed upon homes and residential 
properties, including such mechanisms as soft-seconds, loan 
loss reserves, and shared-equity loans for low- and mod-
erate-income homebuyers; 
(B) purchase and rehabilitate homes and residential 
properties that have been abandoned or foreclosed upon, 
in order to sell, rent, or redevelop such homes and prop-
erties; 
(C) establish land banks for homes that have been 
foreclosed upon; 
(D) demolish blighted structures; and 
(E) redevelop demolished or vacant properties. 
(d) LIMITATIONS.— 
(1) ON PURCHASES.—Any purchase of a foreclosed upon 
home or residential property under this section shall be at 
a discount from the current market appraised value of the 
home or property, taking into account its current condition, 
and such discount shall ensure that purchasers are paying 
below-market value for the home or property. 
(2) REHABILITATION.—Any rehabilitation of a foreclosed- 
upon home or residential property under this section shall 
be to the extent necessary to comply with applicable laws, 
codes, and other requirements relating to housing safety, 
quality, and habitability, in order to sell, rent, or redevelop 
such homes and properties. Rehabilitation may include 
improvements to increase the energy efficiency or conservation 
of such homes and properties or provide a renewable energy 
source or sources for such homes and properties. 
(3) SALE OF HOMES.—If an abandoned or foreclosed upon 
home or residential property is purchased, redeveloped, or 
otherwise sold to an individual as a primary residence, then 
such sale shall be in an amount equal to or less than the 
cost to acquire and redevelop or rehabilitate such home or 
property up to a decent, safe, and habitable condition. 
(4) REINVESTMENT OF PROFITS.— 
(A) PROFITS FROM SALES, RENTALS, AND REDEVELOP-
MENT.—