(B) 35 percent shall be deposited into the 7 Capital Magnet Fund established under section 8 1339 of that Act (12 U.S.C. 4569)
That’s the old bill. Acorn is gone in the new one. But we’re still bailing out China, Britain, Switzerland, Germany, etc. in the revised bill. It’s still criminal.
That’s the old one, here’s the new, no ACORN...
http://michellemalkin.com/wp/wp-content/uploads/2008/09/ayo08c04_xml.pdf
IMO, we, the TAXPAYERS, just bailed out ‘MAIN STREET’ = LOW INCOME DEMOCRAT VOTERS
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Taxpayers are naturally suspicious that political insiders and contributors on Wall Street are going to make out like bandits once Washington starts spending the $700 billion in the financial market rescue. But Democrats have already decided to spin off potentially billions of taxpayer dollars from the bailout fund to their own political buddies — not on Wall Street but on nearby K Street.
The House and Senate Democratic drafts contain an indefensible and well-hidden provision. It would mandate that at least 20% of any profit realized from the sale of each troubled asset purchased under the Paulson plan be deposited in either the Housing Trust Fund or the Capital Magnet Fund. Only after these funds get their cut of the profits are “all amounts remaining . . . paid into the Treasury for reduction of the public debt.”
Here’s the exact, amazing language from the Democratic proposal, breaking out how the money would be divided and dispensed:
What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such as Acorn.
Along with other potential recipients of these funds, including the National Council of La Raza and the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we’d be funneling more cash to the groups that helped create the lending mess in the first place.
This isn’t the first time this year that Democrats have tried to route money for fixing the housing crisis into the bank accounts of these community activist groups. The housing bill passed by Congress in July also included a tax on Fannie Mae and Freddie Mac to raise an estimated $600 million annually in grants for these lobbying groups. When Fannie and Freddie went under, the Democrats had to find a new way to fill the pipeline flowing tax dollars into the groups’ coffers.
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National Housing Trust Fund
NATIONAL HOUSING TRUST FUND CAMPAIGN
President Signs Housing Trust Fund Into Law
July 30, 2008
Today, President George W. Bush signed the Housing and Economic Recovery Act of 2008. Among the bill’s numerous provisions is the establishment of a national Housing Trust Fund. This is a major victory for low income housing advocates and the lowest income people in our country with the most serious needs.
The Housing Trust Fund’s most important features are:
It is a permanent program with a dedicated source of funding not subject to the annual appropriations process.
At least 90% of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10% can be used for the following homeownership activities for first-time homebuyers: production, preservation, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs.
At least 75% of the funds for rental housing must benefit extremely low income households and all funds must benefit very low income households.
This is the first new federal housing production program since the HOME program was created in 1990 and the first new production program specifically targeted to extremely low income households since the Section 8 program was created in 1974.
Funds for the Housing Trust Fund will come from annual contributions made by Fannie Mae and Freddie Mac. The amount will be based on a percentage of each company’s annual new business. Using the formula in the bill, the amount in 2007 would have been $557 million. Because their new business is increasing, the amount in 2008 is expected to be higher. However, 25% of the funds each year must first go to a reserve fund at the Treasury to offset scoring problems.
http://www.nlihc.org/template/page.cfm?id=40
Date: 28 Aug 2008
Author: National Alliance to End Homelessness
This document contains the text of the Capital Magnet Fund section of the recently enacted Housing and Economic Recovery Act. The Fund provides resources for Community Development Financial Institutions and nonprofit housing developers for housing and economic development.