Today, the U.S. Senate passed S. 4256: Help for unEMployed People or HEMP. The program is designed to help homeowners facing foreclosure, cities facing blight, and the unemployed from the construction sector of our economy.
In phase one of the HEMP program, the government will start today purchasing foreclosed homes in depressed neighborhoods that are in foreclosure; eliminating shadow inventory. $18 Billion Dollars has been set aside for acquisition and rehabilitation of residential real estate in the 50 hardest hit states as identified by the White House. Then large teams of experienced unemployed laborers to rehab the properties with the goal of selling or renting the properties as government housing.
Homeowners can also trade their current home for a HEMP home if they meet certain requirements.
"It is my goal that we can make Detroit the next Beverly Hills, and we can do this with HEMP" said President Obama in a statement released today.
Unlike HAMP, 2MP, and HAFA, non-delinquent homeowners will benefit as well. Starting July 1, any homeowner that has not missed a mortgage payment in the last 3 months can apply for 1 year of mortgage forgiveness. "The goal is if homeowners don't have to make a mortgage payment, they can stimulate the economy" said Treasury Secretary Tim Geithner. "To apply, homeowners must make less than $50,000 a year, have a mortgage in excess of $500,000, or be a member of Congress."
Celebrity Spokeperson and Hemp advocate Woody Harrelson could not be reached for comment.
The program is slated to expire November 7, 2012: one day after the presidential election.