The U.S. House of Representatives voted Wednesday to pull the plug on ""HUD's Neighborhood Stabilization Program"":http://hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/ (NSP) and rescind $1 billion in grant money that was appropriated under the Dodd-Frank Act but has not yet been awarded.
NSP provides funding to local governments and nonprofits for the acquisition and redevelopment of foreclosed and abandoned homes.
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The NSP Termination Act (H.R. 861) passed the House with a 242-182 vote, largely along party lines. It's the third foreclosure mitigation program voted down by the Republican-controlled chamber in as many weeks.
The legislation now moves to the Democratic-led Senate, where it is not expected to be met with such favor. White House officials again indicated that the bill would be vetoed should it find its way to President Obama's desk.
""With many communities still struggling with the impact of the severe decline in the housing market, the administration believes that continued funding of the NSP grants is important to the nation's sustained economic recovery,"" the Office of Management and Budget said in a statement issued Tuesday.
The House plans to vote on a separate piece of legislation that would end the Home Affordable Modification Program (HAMP) when it returns after next week's congressional recess.