Conyers Praises $188 Million Hardest Hit Fund Allocation for Michigan Homeowners

WASHINGTON – The U.S. Treasury Department announced today that it will allocate an additional $188 million in Troubled Asset Relief Program (TARP) funds to the Hardest Hit Fund (HHF) program in the second phase of funding.  The additional funding into the HHF program, which is the result of recent bipartisan cooperation in Congress, will assist homeowners who are struggling to keep a roof over their heads and help stabilize impoverished neighborhoods.

Dean of the U.S. House
of Representatives
John Conyers, Jr.

After the funding was approved by Congress, Rep. John Conyers sent a letter to Treasury Secretary Jack Lew, advocating on behalf of Michigan as the Obama administration designed a process for distributing the funds between states. He urged the Administration to take into consideration Michigan’s “disproportionate economic challenges resulting from the Great Recession,” including continued high unemployment and underemployment, and the ongoing impact on Michigan families of the drop of housing prices caused by the economic collapse.  Rep. Conyers also highlighted the “expeditious manner that Hardest Hit Fund resources have been disbursed in our state,” as the funds enabled Michigan to conduct more blight removal than any other state, in addition to providing important assistance with those at risk of losing their homes due to property tax foreclosure.

After the second phase of funding was announced, Rep. Conyers made the following statement:

“The people of Michigan and I are deeply grateful for the work of the Treasury Department and our Michigan Congressional delegation for this significant infusion of funding to the Hardest Hit Fund and to Step Forward Michigan.  As the aftermath of the Great Recession continues to cause severe hardship for many Michigan families, I am thankful that Secretary Lew and the Obama Administration shared my perspective that the additional funds should provide special assistance for our state. Due to this fair formula devised by the Department of the Treasury, the first phase of new funding provided Michigan with one of the largest portions of funds, per capita, of any state receiving assistance. In the second phase, which was announced today, Michigan will receive the largest allocation of any state. I look forward to witnessing the impact of this funding as our communities continue to heal and rebuild.”

The process announced by the Department of Treasury allocated $1 billion using a formula based on state population and the state’s use of their HHF allocation to date. In the second phase that was announced today, Treasury focused additional resources on those states “with significant ongoing foreclosure prevention and neighborhood stabilization needs, a proven track record in utilizing funds, and successful program models to address those needs,” mirroring the criteria Rep. Conyers urged Treasury to consider in his February 2016 letter.

The Hardest Hit Fund was created in 2010 to provide $7.6 billion in targeted aid to 18 states and the District of Columbia, deemed hardest hit by the economic and housing market downturn.  The program has funded numerous initiatives in Michigan that have made significant progress for the people of Michigan. As of January 17, Michigan’s Blight Elimination Program had successfully demolished 8,022 blighted properties, the most of any state in the country. And aside from California (which has a population four times greater than that of Michigan), Michigan has used the Hardest Hit Funds to assist the greatest number of homeowners of any state, surpassing 30,000 in January 2015. 

Visit the Treasury Department’s website for more information on how the Hardest Hit Fund is helping communities and homeowners across the country.

U.S. Representative Conyers Letter to Treasury Secretary Lew Regarding Michigan Hardest Hit Fund 2.2.16 by Beverly Tran

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Conyers & Nadler Urge Supreme Court to Preserve Critical Legal Tool in the Fight Against Housing and Lending Discrimination

Members File Bipartisan Supreme Court Amicus Brief in Mt. Holly v. Mt. Holly Garden Citizens in Action

(WASHINGTON) – Today, Congressman John Conyers, Jr. (D-Mich.), Ranking Member of the House Judiciary Committee, and Congressman Jerrold Nadler (D-N.Y.), Ranking Member of the House Judiciary Subcommittee on the Constitution and Civil Justice, filed an amicus brief in the Supreme Court case of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. At the heart of this case is whether disparate impact – a method of proving discrimination by showing that policies or practices are discriminatory in application even if neutral on their face – can be used to enforce the Fair Housing Act, federal legislation that prohibits housing and lending discrimination. In their amicus brief, Reps. Conyers and Nadler argue in favor of disparate impact, citing extensive legislative history demonstrating that Congress intended to reach all forms of discrimination and chose language to accomplish this goal.

Upon filing the amicus brief, Reps. Conyers and Nadler issued the following statement:

U.S. Representative
John Conyers, Jr.

Rep. John Conyers, Jr. (D-Mich.): “As our country went through a turbulent period in the fight for civil rights, I championed and voted in favor of the landmark Fair Housing Act in 1968. We passed this historic law, which came on the heels of the Civil Rights Act of 1964 and the Voting Rights Act of 1965, understanding that we needed to reach and prohibit decades of discriminatory policies and practices. That is why we outlawed both intentional acts of discrimination as well as practices that, while seemingly neutral on their face, have the same discriminatory effect.  In the forty-five years since its passage – including in the recent $335 million settlement of Countrywide Financial’s predatory lending practices during the housing boom – disparate impact standards, which account for practices that have a discriminatory effect, have been used to enforce the Fair Housing Act’s promise of equal opportunity for all. Disparate impact remains a key civil rights enforcement tool, and I hope that this vital standard emerges stronger from this legal challenge.”

Rep. Jerrold Nadler (D-N.Y.): “Unfortunately, discrimination in housing and housing-related lending remains a major problem in this country.  During the recent housing boom and bust, companies like Countrywide Financial charged minority applicants with higher interest rates and steered them into costly subprime mortgages.  There, the Justice Department successfully used disparate impact theory – as it has for several decades, during both Republican and Democratic administrations – to challenge this unlawful practice.  The Mount Holly case jeopardizes this key enforcement tool and puts at risk the progress our nation has made regarding housing discrimination.  We urge the Court to preserve disparate impact theory, and help ensure that the promise of equal housing opportunity becomes a reality for all.”

Bipartisan Supreme Court Amicus Brief in Mt. Holly v. Mt. Holly Garden Citizens in Action by Beverly Tran

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