What Wall Street Reform Means for Housing...

On July 21, 2010 President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, sweeping legislation that covers a broad range of financial and housing policy issues. The Act contains several key provisions of importance to homeless and low income Americans.


•The law extends the expiration date for the Protecting Tenants at Foreclosure Act (PTFA) from the end of 2012 to the end of 2014. PTFA ensures that tenants living in foreclosed properties can remain in their housing for as long as possible after the property owner / landlord is foreclosed upon and a new party takes ownership of the property. The Law Center hopes to make PTFA permanent, but is extremely pleased in the short term to see it extended.

•The law also clarifies an ambiguous provision of PTFA, explaining that the date of a "notice of foreclosure" means the date on which title to a property is transferred by a court order or through a non-judicial foreclosure process. Since in many cases tenants can only use PTFA to remain in their homes for 90 days after a notice of foreclosure, it was important to clarify that earlier notices to tenants did not start the 90 day clock after which a tenant would have to move. The Law Center anticipates that this provision will help keep tenants in their homes for longer periods of time, but will continue to monitor implementation of the law, to ensure that it is being vigorously enforced.

•In addition, the law provides $1 billion in new funding under HUD's Neighborhood Stabilization Program (NSP), a program that sends money to help rebuild housing in blighted communities. This new funding includes an ongoing requirement that 25% of NSP funds be used to benefit low income people.

•The law creates an Emergency Homeowners' Relief Fund at HUD, designed to provide temporary mortgage assistance to homeowners, to help avoid foreclosures. This program is funded at $1 billion.

•And finally, the bill sets up a HUD program to fund civil legal services to prevent foreclosure among homeowners and eviction of tenants in foreclosed properties. Unfortunately, the law does not provide money for this new program, meaning that it will not get off the ground until funds are appropriated by Congress.