Homestead Preservation Act - Directs the Secretary of Labor to establish a program of low-interest loan (residential) mortgage assistance to eligible persons who are separated from their employment.
Limits assistance to 12 months, and requires repayment within five years.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3067 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 3067
To provide mortgage payment assistance for certain employees who are
separated from employment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 10, 2003
Mr. Goode (for himself and Mr. Boucher) introduced the following bill;
which was referred to the Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To provide mortgage payment assistance for certain employees who are
separated from employment.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homestead Preservation Act''.
SEC. 2. MORTGAGE PAYMENT ASSISTANCE.
(a) Establishment of Program.--To the extent that amounts are
provided pursuant to subsection (f), the Secretary of Labor (referred
to in this section as the ``Secretary'') shall establish a program
under which the Secretary shall award low-interest loans to eligible
individuals to enable such individuals to continue to make mortgage
payments with respect to the primary residences of such individuals.
(b) Eligibility.--An individual is eligible to receive a loan under
the program established under subsection (a) if the individual--
(1) is--
(A) an adversely affected worker with respect to
whom a certification of eligibility has been issued by
the Secretary of Labor under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.); or
(B) an individual who would be an individual
described in subparagraph (A) but who resides in a
State that has not entered into an agreement under
section 239 of that Act (19 U.S.C. 2311);
(2) is a borrower under a loan which requires the
individual to make monthly mortgage payments with respect to
the primary place of residence of the individual; and
(3) is receiving training under section 236 of the Trade
Act of 1974, has received a job search allowance under section
237 of that Act or a relocation allowance under section 238 of
that Act, or is receiving assistance under the Work Force
Investment Act of 1998 or comparable assistance under any other
Federal law.
(c) Loan Requirements.--
(1) In general.--A loan provided to an eligible individual
under this section shall--
(A) be for a period of not to exceed 12 months;
(B) be for an amount that does not exceed the sum
of--
(i) the amount of the monthly mortgage
payment owed by the individual; and
(ii) the number of months for which the
loan is provided;
(C) have an applicable rate of interest that equals
4 percent;
(D) require repayment as provided for in subsection
(d); and
(E) be subject to such other terms and conditions
as the Secretary determines appropriate.
(2) Account.--A loan awarded to an individual under this
section shall be deposited into an account from which a monthly
mortgage payment will be made in accordance with the terms and
conditions of such loan.
(d) Repayment.--
(1) In general.--An individual to which a loan has been
awarded under this section shall be required to begin making
repayments on the loan on the earlier of--
(A) the date on which the individual has been
employed on a full-time basis for 6 consecutive months;
or
(B) the date that is 1 year after the date on which
the loan has been approved under this section.
(2) Repayment period and amount.--
(A) Repayment period.--A loan awarded under this
section shall be repaid on a monthly basis over the 5-
year period beginning on the date determined under
paragraph (1).
(B) Amount.--The amount of the monthly payment
described in subparagraph (A) shall be determined by
dividing the total amount provided under the loan (plus
interest) by 60.
(C) Rule of construction.--Nothing in this
paragraph shall be construed to prohibit an individual
from--
(i) paying off a loan awarded under this
section in less than 5 years; or
(ii) paying a monthly amount under such
loan in excess of the monthly amount determined
under subparagraph (B) with respect to the
loan.
(e) Regulations.--Not later than 6 weeks after the date of the
enactment of this Act, the Secretary shall promulgate regulations
necessary to carry out this section, including regulations that permit
an individual to certify that the individual is an eligible individual
under subsection (b).
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section, $10,000,000 for each of fiscal
years 2004 through 2008.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Employer-Employee Relations.
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