Bill accomplishes more than story reported

last updated: August 06, 2008 01:04:02 AM

I am responding to "Bailout bill will do little, experts say" (July 29, Page A-1) regarding congressional passage of the American Housing Rescue & Foreclosure Prevention Act. The overall article, and specifically the real estate agents quoted in it, took an incomplete view of the bill passed by Congress. While this bill is certainly not perfect and much more needs to be done to help our country recover from the foreclosure crisis, the description of this act as "meaningless" is grossly incorrect.

The article focused solely on one program within the overall housing bill. This particular program, $4 billion in Community Development Block Grants for local governments to buy up foreclosed and abandoned homes, is targeted at areas with high foreclosure rates like the valley. While this single program will not solve the foreclosure crisis, it will help local governments clean up and rehabilitate the worst consequences of the crisis -- homes that are caving in from vandalism and disrepair.

In addition, the housing bill provides $180 million for foreclosure counseling and expands a Federal Housing Administration program that allows homeowners to refinance their mortgages at affordable rates and avoid foreclosure.

This housing bill is a significant first step by the federal government, but taken alone it will not solve the nation's foreclosure crisis. At my urging, the original House bill provided much more relief than the president and Republicans in the Senate were willing to accept.

When Congress reconvenes in September, I intend to pursue additional federal relief for struggling homeowners in my district and throughout the valley. In the interim, the House Financial Services Committee agreed to my and Congressman Jerry McNerney's request to hold a field hearing in the valley. This will allow us to demonstrate to my colleagues in Washington the depth of this crisis throughout our communities.

DENNIS CARDOZA

representative, 18th Congressional District

Merced

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