Senate Considers Housing Bill with Military Provisions

The House approved "The American Housing Rescue and Foreclosure Prevention Act" (H.R. 3221) this week and the Senate is scheduled to debate the measure tomorrow (Saturday, 26 July). The President dropped objections to the bill and is expected to sign it in order to reassure the housing markets. Included in the comprehensive bill are provisions directly related to military retirees, veterans, and active duty personnel that include:

# Amending the Service Members Civil Relief Act (SCRA) to increase from 90 days to nine months protection against mortgage foreclosure proceedings until December 31, 2010;
# Increasing VA loan guarantees until 1 January 2009;
# Prohibiting a public housing authority from using Base Allowance Housing (BAH) compensation when determining eligibility for public housing for active duty families;
# Requiring DoD to implement a program to advise service members who are returning from active duty abroad on actions to prevent or forestall mortgage foreclosures;
# Extending the SCRA six-percent interest rate limitation for one year (currently 90 days) beyond the period of military service if the debt is a mortgage, trust deed, or other security in the nature of a mortgage;
# Authorizing the VA to furnish improvements and structural alterations to the home of service members who are hospitalized or receiving outpatient medical care for a permanent service-connected disability if the service member is determined likely to be discharged or released from the Armed Forces for the disability; and
# Stipulating pay and allowances for transportation of baggage and household effects for service members who relocate from leased or rental housing due to foreclosure.