Suggestions on how to spend federal housing money

A year ago, the federal government rolled out two ambitious plans to help put a dent in the nation's housing crisis. Plan A was to provide funding for lenders to offer loan modifications to underwater homeowners. Plan B was to give local governments money to put families in already foreclosed homes. Both plans have yielded disappointing results, prompting an on-the-fly assessment of possible other ways to use federal housing aid. In the coming weeks, the Nevada Housing Division will decide how to spend $102.8 million in additional federal funding made available to states hit hardest by foreclosures.

Senate Majority Leader
Harry Reid, D-Nev.

"I recommend using a significant portion of the expected resources to implement a mortgage principal reduction program. ... Serious consideration should be given to how the state Supreme Court's foreclosure mediation program can be supplemented."

Michael Joe, foreclosure specialist at the Legal Aid Center of Southern Nevada

"In the same way we bailed out the banks, there should be money available to bail out homeowners. I know that's a sensitive thing for some people, but it's the best way to keep an already huge shadow inventory (of homes) from growing."

Kathy Somers, neighborhood outreach manager,
North Las Vegas

"We would love to have money available to us to help with foreclosure prevention. We could stabilize our neighborhoods much more quickly if we could use money for that purpose."

Rep. Dina Titus, D-Nev.

"A better solution is to provide both short-term and long-term solutions to Nevada by reducing the principal on mortgages. The lender and servicer (of the loan) would work to reduce the principal of the loan, and the homeowner and the lender would agree to share equity when the home is sold."