Sometimes our legislators pass a bill that is designed to make it look like they are doing something when they are just hauling out the smoke and mirrors.
House bill 552 has that look:
The bill creates a new chunk of bureaucracy to help people who have made bad real estate deals, but here is the red flag for me.
This new agency is allowed solicit grants from the private sector, nonprofit entities, and the federal government. The agency can also contract out all of the services it offers.
Does that mean the agency will be funded by solicited money?
Is there and appropriation in the budget to fund this agency or is this just one of those places in state government where someone gets an Executive Director Title and pay but no funding or staff to do the job?
Is this a way of providing a nice state funded contract to someone?
Maybe I’m just missing the legislative brilliance of this bill, but I just don’t see how creating this agency is really going to help someone in the middle of foreclosure.
Here are the first few paragraphs of the bill:
(1) There may be established, as part of the borrower education initiatives established by or through the Kentucky Housing Corporation, a Kentucky Homeownership Protection Center.
(2) The purpose of the Kentucky Homeownership Protection Center shall be to:
(a) Provide a centralized location for information on public services made available by federal, state, or local government or community entities, to assist a homeowner who is in default, or in danger of default, on his or her home loan; and
(b) Attempt to assist, any homeowner who contacts the center without cost to the homeowner, with the goal of:
1. Providing a homeowner with information, including toll-free telephone numbers for public services, made available by federal, state, or local government or community entities, including programs such as NeighborWorks and Don't Borrow Trouble, mortgage assistance programs, home repair assistance programs, and utility assistance programs;
2. Determining if the homeowner has contacted his or her lender regarding any default or danger of default; and
3. Providing a homeowner with counseling agencies approved by the United States Department of Housing and Urban Development that may be able to assist the homeowner.
(3) The Kentucky Homeownership Protection Center may enter into an agreement with any public or nonprofit entity to carry out any part of the mortgage foreclosure counseling and education program.
(4) The Kentucky Homeownership Protection Center may solicit contributions and grants from the private sector, nonprofit entities, and the federal government to assist in carrying out the purposes of this chapter.