The Democrats plan to bring many proposals to the Senate this month in hopes of helping the housing market. Their plans involve a tax break for home builders and a higher cap on state mortgage-revenue bonds.

With their previous economic restart bill signed into the law, they want to direct this second proposal on all housing related issues, which could be attributed to the election spectacle. Of course, it is assumed that Republicans will have an issue with this, as it calls for a change in bankruptcy law to allow judges the power to alter mortgage terms. A similar bill proposal was denied last year due to resistance by The White House and the banking industry.

Home builders might be more in favor of these new proposals as it could allot for a potential tax break for companies with operating losses in the last 2 years.

Some items that might bring about more republican approval is that the revenue lost with a potential tax break would not be offset, and that $10 billion in bond authority would be alloted which would allow more finance agencies to help first-time buyers or those working with subprime loans, an idea recently supported by President Bush. A spokesman for Kentucky Republican Senate Minority Leader Mitch McConnell, said that Republicans, "look forward to this discussion" and want to make sure "we don't tax and spend our economy into a dangerous slowdown."

Included in the bill, would be $4 billion in block grants to allow localities with high foreclosure rates the ability to buy and rehab uninhabited property and another $200 million for pre-foreclosure counselors: to try and prevent further home loss.