Towards the end of July, the Neighborhood Preservation Act of 2011 was re-introduced and proposed by California Congressman, Gary Miller. Originally introduced in May 2009, the Neighborhood Preservation Act hopes to allow banks, as well as government sponsored entities Freddie Mac and Fannie Mae, to lease foreclosed properties to either the previous owner or another individual for up to five years. Once the lease is up, the tenant would be allowed the opportunity to purchase the property. The Federal Housing Finance Agency would become responsible for deciding the rules to whether or not a property would be eligible for leasing.
Some of the proposed benefits of the Neighborhood Preservation Act of 2011 are:
- Former property owners are given the opportunity to remain the in the home
- Allowing someone to live in the home would contribute to the property’s upkeep, therefore preserving the home’s value.
- A lower inventory of foreclosed/vacant homes would help to stabilize home values.
Click Here to Download the Text of the Bill.