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PA Legal Aid Network e-News
Thursday, July 17, 2008
Senate Foreclosure Bill Funds Legal Aid, But Not For Civil Litigation
The major housing and foreclosure prevention package passed by the U.S. Senate on July 11 (H.R. 3221) provides funding for legal assistance for homeowners threatened by foreclosure, but prohibits that funding from being used for civil litigation.
Section 2305 of the bill would provide $30 million to the federal Neighborhood Reinvestment Corporation to distribute as grants to HUD- or NRC-approved counseling organizations, which in turn would hire attorneys to provide foreclosure-related legal assistance to owners of owner-occupied homes. However, the bill states that none of the funds can be used to “provide, obtain, or arrange for” civil litigation on behalf of homeowners.
This section of the bill differs significantly from what the House passed in May. The House version would provide $5 million more in funding, would allow the NRC to make grants directly to legal organizations or attorneys, would allow grantees to help homeowners and tenants threatened by foreclosure, and does not prohibit the money from being used for civil litigation.
The House and Senate will have to reconcile this and other differing provisions before submitting a final bill for the President’s approval. According to Congressional Quarterly, which monitors Capitol Hill, final passage by Congress could come as early as next week.
From LSC Updates, July 16, 2008
Section 2305 of the bill would provide $30 million to the federal Neighborhood Reinvestment Corporation to distribute as grants to HUD- or NRC-approved counseling organizations, which in turn would hire attorneys to provide foreclosure-related legal assistance to owners of owner-occupied homes. However, the bill states that none of the funds can be used to “provide, obtain, or arrange for” civil litigation on behalf of homeowners.
This section of the bill differs significantly from what the House passed in May. The House version would provide $5 million more in funding, would allow the NRC to make grants directly to legal organizations or attorneys, would allow grantees to help homeowners and tenants threatened by foreclosure, and does not prohibit the money from being used for civil litigation.
The House and Senate will have to reconcile this and other differing provisions before submitting a final bill for the President’s approval. According to Congressional Quarterly, which monitors Capitol Hill, final passage by Congress could come as early as next week.
From LSC Updates, July 16, 2008
Labels: consumer, housing, lsc
