Housing rescue: What you need to know

In brief: The Foreclosure Prevention Act of 2008, a bill that is before Congress, calls for states and towns to use community development funds - administered by the Treasury Department and usually used to boost lending in underserved cities and neighborhoods - to buy foreclosed properties, rehab them and sell or rent them.

The argument: It's important to reduce the impact of vacant, distressed properties on surrounding neighborhoods in order to stabilize property values.

Who backs it: The bill was introduced by Senate Democrats and is backed by community and consumer advocates, as well as the representatives of cities hit hard by foreclosures such as Detroit and Cleveland.

Who's against it: Republicans blocked a Senate vote on Thursday that would have helped the bill pass quickly. Only one Republican, Sen. Gordon Smith of Oregon, voted to consider the bill. The community development fund, however, was not singled out for criticism.

Taxpayer price tag: $4 billion in development funds.

Status: Likely to be enacted as part of a larger bill, according Jaret Seiberg, financial services analyst for policy research firm Stanford Group.

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