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Foreclosure Mitigation Assistance In addition to legislation that would fix the mortgage system prospectively, the House and Senate are also considering NLC-supported measures that would help homeowners currently facing foreclosure either keep their homes or reduce the financial penalties in the event of a foreclosure. Federal Housing Administration (FHA) modernization legislation, which passed both chambers (H.R. 1852/S. 2338), would help a larger number of homeowners refinance out from high-interest sub-prime loans and into federally-insured lower-rate conventional loans, especially in high-cost housing areas. Legislation to reform the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac (H.R. 1427) also would increase the refinancing options for struggling homeowners. Although both bills enjoy varying levels of support, significant differences remain between Congressional leaders and the Administration on the level of assistance they should provide. (Mike Wallace, wallace@nlc.org, 202.626.3025) Affordable Housing Trust Fund Legislation Passes the House Last October, the House passed the National Affordable Housing Trust Fund Act (AHTF), by a vote of 264 to 148. The bill would provide more than $1 billion in new resources annually for the production, preservation, and rehabilitation of 1.5 million affordable homes over ten years. Sixty percent of the funds would go to cities and towns, and 40 percent would go to states. Funds could be used for construction, rehabilitation, acquisition, and preservation of affordable housing. Funding for the trust fund would come from non-budgetary sources, including the Government Sponsored Entities (GSEs), Fannie Mae and Freddie Mac, as well as interest earnings generated by the Federal Housing Administration (FHA), ensuring that AHTF funds will not be affected by the annual appropriations process and will not compete for funds with other programs, such as CDBG and HOME. The Administration opposes the legislation out of concern that it would, among other things, create an undue and counterproductive reliance on the FHA and the GSEs. In late December, Sen. John Kerry (D-MA) introduced a companion proposal in the Senate, S. 2523. (Mike Wallace, wallace@nlc.org, 202.626.3025) Eminent Domain Amendment Defeated In December, NLC successfully lobbied against eminent domain legislation being considered in the Senate as an amendment to the Farm Bill, H.R. 2419. Introduced by Sen. Larry Craig (R-ID), the provision would have preempted state and local land use laws by prohibiting any state or local government from exercising eminent domain authority over any "farmland or grazing land for the purpose of a park, recreation, open space, conservation, preservation view, scenic vista or similar purpose." With opposition from NLC, state municipal leagues, elected officials, and other local government groups, the amendment failed to get the 60 votes needed to continue consideration of the amendment, and Sen. Craig withdrew it. (Carolyn Coleman, coleman@nlc.org, 202.626.3023)