July 6, 2010 - Congress has wrangled for a long time to develop legislation that would reform how financial institutions are regulated, and put in place greater consumer protections.  The House on June 30 passed the bill coming out of the House-Senate conference committee, a major step toward final adoption.

The bill merges bills created and shepherded by Senator Chris Dodd (D-CT) and Rep. Barney Frank (D-MA).  The conference package includes several provisions with significant implications for housing:

• Extension to the end of 2014 of the Protecting Tenants at Foreclosure Act, which protects tenants in foreclosed properties from sudden eviction.
• A third round of Neighborhood Stabilization Program - $1 billion to go to states using a formula similar to the 1st round, with a minimum $5 million to each state. States and localities would be required to “create preferences for the development of affordable rental housing” with these funds.
• $1 billion for bridge loans to cover mortgage payments for qualified unemployed homeowners with reasonable prospects for reemployment.
• Requires HUD to develop a program to provide sustainable financing for multifamily properties facing foreclosure. This financing would have to be an amount sufficient to protect tenants and successfully operate the property based on its current rent structure.

The Senate will consider the conference committee bill after the July 4 recess.  It is required to vote on it without amendments.