WASHINGTON — A group of Senate Democrats is urging the Obama Administration to move forward with a plan to turn foreclosures into rental properties.
Led by Sens. Jack Reed, Tim Johnson and Robert Menendez, 33 senators urged the administration to "quickly and diligently" analyze the feedback it requested in August from the public and investors on how to sell or rent real estate owned properties.
In a letter sent Thursday to the Treasury Department, Housing and Urban Development Department and the Federal Housing Finance Agency, the lawmakers also asked the agencies to keep in mind the importance of looking for the most effective ways to stabilize neighborhoods and housing values.
"With the other side of the aisle seemingly embracing a 'let it fall' policy when it comes to legislative housing solutions, the American people still need creative, proactive strategies to fix the economy," Reed said in a press release. "Developing an innovative REO initiative could help turn lemons into lemonade by creating new opportunities for businesses and investors while simultaneously increasing the supply of rental housing and reducing foreclosures."
The letter also asked the agencies to explain when they expect to finish reviewing the submissions under the "request for information"; whether there are any strategies or proposals that appear promising; what appear to be the greatest challenges and concerns; and, once the submissions are analyzed, what is the next step and when do they expect to take it.
