Senate Dems propose another $15 billion to fight foreclosures

"We are facing a challenging budget environment, but this is the right time to make smart investments in strengthening our communities, putting more construction workers back to work and bolstering the economy," Reed said. "This initiative will provide a flexible source of funding to help local communities leverage federal dollars to effectively address vacant and blighted properties."

ADVERTISEMENT
Since 2008, the government has been authorized to make a little more than $7 billion in grants to states to aid in the redevelopment of foreclosed property. These grants were made under the Neighborhood Stabilization Program (NSP), run out of HUD.

Within that program, $4 billion was authorized under a 2008 law, another $2 billion was added under the 2009 stimulus bill and $1 billion more was added under the 2010 Dodd-Frank law.

Reed's bill essentially expands the NSP by more than 200 percent — $10 billion of the new money would be distributed to states under a formula similar to the one used by NSP, and another $5 billion would be distributed through "competitive grants."

Reed said the bill could mean another $43 million for Rhode Island, nearly double the $26 million his state has received under NSP. Under the bill, each state would get a minimum of $20 million in foreclosure aid.

The bill would also expand the NSP program by allowing grants to be used for the redevelopment of commercial properties.

Reed's bill is sponsored by 10 other Democrats, including Majority Whip Dick DurbinDick DurbinSyria activists cheer Kaine pick Democratic National Convention event calendar Opioid package clears key Senate hurdle MORE (Ill.), Senate Judiciary Committee Chairman Patrick LeahyPatrick LeahyProtecting the right to counsel in immigration court Dems urge Obama to release info on Russian links to DNC hack Top senators want details on probe of DNC breach MORE (Vt.) and Democratic Policy and Communications Center Chairman Charles SchumerCharles SchumerConvention shows Democrats support fracking, activists on the fringe Dem ad blasts Indiana senate candidate on Social Security The Trail 2016: Unity at last MORE (N.Y.). Other sponsors are Sens. Daniel Akaka (Hawaii), Richard BlumenthalRichard BlumenthalDems fear Trump arguments on terrorism Tim Kaine backs call to boost funding for Israeli missile defense Senate Dems push Obama for more Iran transparency MORE (Conn.), Mark BegichMark BegichSenate GOP deeply concerned over Trump effect Ex-Sen. Kay Hagan joins lobby firm Unable to ban Internet gambling, lawmakers try for moratorium MORE (Alaska), Sherrod BrownSherrod BrownThe Trail 2016: Her big night Kaine as Clinton's VP pick sells out progressive wing of party Unions want one thing from Hillary tonight: A stake in TPP’s heart MORE (Ohio), Al FrankenAl FrankenWinners and losers of the Dem convention Party unity overcomes chaos...and the Bernie-or-Bust crowd The Hill's 12:30 Report MORE (Minn.), Jeff MerkleyJeff MerkleyDem anxiety hangs over Clinton Kaine as Clinton's VP pick sells out progressive wing of party Unions want one thing from Hillary tonight: A stake in TPP’s heart MORE (Ore.) and Sheldon WhitehouseSheldon WhitehouseThe Hill's 12:30 Report Why Kaine is the right choice for Clinton Report: More, stronger cyber attacks to flood networks MORE (R.I.).

More in Senate

Senators block dueling Zika proposals for second day

Read more »