Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, 122 Stat. 2654, enacted July 30, 2008) (commonly referred to as HERA) designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008.
It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It is intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States will be authorized to refinance subprime loans using mortgage revenue bonds. It also establishes the Federal Housing Finance Agency (FHFA) out of the Federal Housing Finance Board (FHFB) and Office of Federal Housing Enterprise Oversight (OFHEO).
Some provisions of the law were modified by the American Recovery and Reinvestment Act of 2009, which was signed into law by President Obama on February 17, 2009.
To learn more about HERA, click on the link below.
Housing and Economic Recovery Act 2008
The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Obama on February 17, 2009. It is an unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century.
The Act is an extraordinary response to a crisis unlike any since the Great Depression, and includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.
To learn more about ARRA, click on the link below and visit the website.
American Recovery and Reinvestment Act 2009
Administration of Sacramento Recovery Funds
SHRA received authorization from the Sacramento Board of Supervisors and the Sacramento City Council to administer approximately $65.2 million in one-time federal economic recovery funds awarded under the American Recovery and Reinvestment Act of 2009 (ARRA) and the Housing and Economic Recovery Act of 2008 (HERA).
Click on the link below to read a breakdown of the funding.
Recovery Fund Allocation Summary
Economic recovery funds will be used to support projects or activities to:
- Address the impact of foreclosures
- Provide homeownership opportunities for low and moderate income households
- Improve public housing
- Create jobs through partnerships with developers and small builders
- Assist in preventing homelessness
- Increase energy efficiency, and
- Stimulate the region’s economy
The following links provide information about the federal economic recovery program and local government agencies that are administering recovery fund programs.
Federal Recovery Fund Program
County of Sacramento
City of Sacramento