Neighborhood Transformation

Neighborhood Transformation

The Second Stimulus Package

On Monday November 17, 2008,  bill S. 3689  was placed on the Senate calendar by Senators Byrd and Reed for the stated purpose of: "Making supplemental appropriations for job creation and preservation, infrastructure investment, and economic and energy assistance for the fiscal year ending September 30, 2009, and for other purposes." This is referred to as, “The Second Stimulus Package.”

Part of the bill calls for authorization of “Payment to the Legal Services Corporation, $37,500,000, to provide legal assistance related to home ownership preservation, home foreclosure prevention, and tenancy associated foreclosure.”

The bill states that this money MUST be used by restricted programs.
In awarding the funds, LSC is to give priority (BUT not exclusivity) to “entities and individuals that (1) provide legal assistance in the 100 metropolitan statistical areas (as defined by the Director of the Office of Management and Budget) with the highest home foreclosure rates; and (2) have the capacity to begin using the funds within 90 days of receipt.” 

Restricted programs should provide comment on this bill and unrestricted programs, which are ineligible for the grants, but can lobby, might want to pursue passage of this bill emphasizing the importance of this language.

The bill can be viewed by going to the Library of Congress - Thomas web site: http://thomas.loc.gov/ clicking "bill Number" as opposed to "Word/Phrase" and inserting "S 3689." About 25 lines down the list is a reference to LSC, which will take you to the applicable language.