• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Text of the ACORN Related Provision in Bailout Bill

    By popular demand we are posting the text of the provision in the House bailout bill that requires Treasury to divert 20% of all profits away from taxpayers and to left-wing advocacy groups like the Association of Community Organizations for Reform Now (ACORN).

    SEC. 105. RIGHTS; MANAGEMENT; SALE OF TROUBLED ASSETS; REVENUES AND SALE PROCEEDS.

    (d) TRANSFER OF A PERCENTAGE OF PROFITS.—
    (1) DEPOSITS.—Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).
    (2) USE OF DEPOSITS.—Of the amount referred to in paragraph (1)—
    (A) 65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and
    (B) 35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).

    More on ACORN’s long history of fraud, deceit and intimidation here.

    Posted in Economics [slideshow_deploy]

    29 Responses to Text of the ACORN Related Provision in Bailout Bill

    1. Dale says:

      There's no mention of ACORN in the text you pasted there.

    2. Jeff Farr, New Hamps says:

      I don't see ACORN mentioned in that text. I think you got the wrong section or something.

    3. Tracy, Dallas-TX says:

      Are you kidding me? I hope John McCain brings this up tonight!

    4. Scott Lackey, NYC says:

      What?? Wasn't Obama the ACORN attorney?

    5. Ricardo says:

      "Housing Trust Funds" have consistently been utilized by the Dems in Congress and the Senate for "grants" to (primarily) ACORN and other groups such as La Raza to "educate and assist" minorities re "home ownership". These groups repay this largesse via (often fraudulent) registration of Dem voters. It is that simple and corrupt.

    6. Dennis, California says:

      Yesterday on Fox News, Senator Lindsey Graham mentioned the bailout funding of ACORN. Michelle Malkin covered it at her site

      (http://michellemalkin.com/2008/09/25/kill-the-bailout-more-acorn-funding/) with the following text:

      "Just heard from several readers that Lindsay Grahamnesty told Fox that the Mother of All Bailouts includes a reported $100 million more in funding for the left-wing housing entitlement thugs and heavily tax-subsidized fraudsters at ACORN. Under the original bailout proposal, apparently, a large portion of any repayment of the $700 billion would go to Barack Obama’s good friends at ACORN with a smaller allocation to debt repayment. Readers heard him say it was 20 percent."

      Today on the radio, a spokesman for the McCain campaign told Michael Medved that the ACORN funding would be eliminated and 100% of any repayment would go toward debt pay down.

    7. Sandy says:

      I can't believe that either party would allow this.

      This would set back race relations to the days of slavery.

    8. Pingback: Text of the ACORN Related Provision in Bailout Bill

    9. Deborah, San Jose says:

      I also read the Democrats used this bailout bill to extend the ban on drilling. If so could it be printed as well? Too bad the media has kept this quiet

    10. Georgia says:

      It took very little time (research) for me to link the language in Sec 105 to include ACORN via the Affordable Housing Trust Fund. Please open your eyes to how politicians draft these proposals to include these "loopholes" so their pet project can get their hands on profits from the tax payer gift of $700 billion. Also Congressman Frank had the ability to stand in front of the cameras and promote the flawed program KNOWING the initial draft contained language that would allow ALL of the Treasury Secretary's decisions to go unchecked by ANY entity. How is the oversight? Frank and any politician, Dem or Repub, who even considered the initial draft should have their credibility questioned. Please check for yourself to ensure what these guys are saying is accurate before believing their heartfelt pleas for the support of the bailout.

    11. Georgia (Texas) says:

      I am from Texas.

    12. MyKe says:

      Is the new 100+ page draft available online anywhere?

    13. Pingback: Texas Rainmaker » Throw The Bums Out

    14. Dave says:

      Read close. It says:

      20 percent of any **PROFIT** realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).

      This is a non-issue. There will be no profits. If there were, they wouldn't be trying to sell them to the treasury. Wake up.

    15. kathy virginia says:

      Subsidizing Acorn, who suggested this? If we don't have transparency in this mess all of us will suffer. We may not be able to vote them out of a job but we can cut their supply of money. We need an investigation on how we got into this in the first place. Congress need to take a course in ethics. I am sickened by this.

    16. g. thornhill says:

      You did not see Nancy Pelosi or Harry Reid make mention that acorn was in the original bill. They are the true medicine show people that come to town and bilk the people without them knowing it. I am so glad that John McCain sat down with the republican party to iron this out. What true hypocricy when they said the bill was ready to be signed. Couldn;t get this one past the american people and I only hope that this comes out in the next debate. We the people demand to know the whole truth and not the parts that the Nancy and Harry Show want to put forward.

    17. barbara kohlmann says:

      This is a left-wing advocacy group, I cannot believe either party would do this.

    18. Susan, New Jersey says:

      I would like to know who specifically suggested that the "ACORN" provision be added to the bailout package.

    19. Tom, Virginia says:

      Just another trick, If congress was as connected as they say they are, ACORN would be shut down. ACORN's fraud and corruption should be stopped. Where are the watch dog organizations?

    20. laura waclawczyk,cen says:

      i can't believe we've come to this sad state of affairs, where the people don't trust their government, and the government doesn't represent the people. this all makes me very sad.

    21. Jim, Pasco Washingto says:

      The regulation cited refers to bank regulation oversite not ACRON. You folks need to do your own home work. The "Profits" would go to funding bank oversite (which is now proven do be despertly needed) not some left wing group …. Is there any honest conservatives left? If you can't argue without making up facts what are you fighting for? … I miss the days when the conservative movement wasn't controlled by parnoide nut jobs …. the Hertage Group gives conservatives a very bad name.

    22. Jane, GA says:

      You all may want to spend some time reading the real bill and not listening to bloggers. You all have gone of the deep end.

      The real bill as voted on –
      http://www.rules.house.gov/110/text/110_hr3997_am

    23. Dellaina, WA says:

      If taxpayers wind up footing the bill for this bailout, wouldn't it make more sense to send the proceeds back to the taxpayers?!

    24. Julie, Albuquerque, NM says:

      The more I read about the Federal Housing Regulation Reform Act of 1992 articles 1338 & 1339 it’s easy to see how money is funneled into these two organizations ACORN and Capitla Management Funds. The ACORN group was even opposed to the government bailing out Fanny Mae and Freddy Mac unless they received 65% of their earnings. Interesting enough that Pres. Bush passed a bill earlier in the year that would provide the ACORN org with $500 million over the next 10 years. Here I am I just bought a house and had to fight for government money to help with a down payment. If I were of a different race I could have been supported by ACORN I’m sure and would have gotten a better house just given to me. Talk about Pork Barrel Spending! Here I am I work every day and I’ll be damned if I want my tax payer money to go to fund some greedy organizations like the two above. Let them collect on the street corner like people do that need help with their childrens medicial bills. Our priorities have been displaced in this country. We all need to take a good look at what we are doing and the people we elect. The everyday Joe who works and isn’t reliant on Welfare, or ACORN to get their house and make a living is being penalized here. Encourage your congress person to do the right thing and cut this out!

    25. Peggy McGilligan, Na says:

      Many of the fat cats who circulate from board to board and from job to job throughout the financial industry are also members of the Bilderberg Group and or the Trilateral Commission, founded respectively in 1954, and in 1973, in New York City. When someone takes your money and steals your car, it makes an impression. When they belong to such a shadowy political clique, it leaves an indelible impression. Many elected officials even belong to these cabals, hence the secrecy. When Bill Clinton eased banking restrictions, he dished out $8-billion dollars for “community reinvestment loans.”

      When the financing schemes fell through, as is their wont whenever 30-million Mexican nationals buy inflated properties and default, it left banks in the lurch. Hillary Clinton counted on the Politically Correct loan giveaways to buy votes. Interestingly enough, had Hillary secured the nomination; she, instead of Barack Obama would preside over the bailout. So, where’s that $8-bilion plus dollars? Where’s Hillary? Why the caveat in Section 8 of the bailout: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency?”

      The Global Initiative people (code speak for car thieves) took my money; they stole my car. If you or I did half the things these people have done, we’d be serving consecutive life sentences. Wise up, get angry, and let the bubble burst. Besides, Ben Stein says we’re going to be just fine. You have my word on it too. Gentlemen, I want my money back. “You are a ?den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.” –Andrew Jackson, to fraudulent financiers, 1832: http://theseedsof9-11.com

    26. Peter Martell, Wakef says:

      The bailout is obviously a sellout of hard working Americans!!!

    27. Pingback: Are Republicans joking? - Page 5 - XDTalk Forums - Your HS2000/SA-XD Information Source!

    28. Pat, Brooklyn, NY says:

      People, get your facts straight on this "Acorn-Related Provision."

      This is the text of the section dealing with profits from the sale of troubled assets, from the published text of HR 1424, passed as Public Law 110-343, and signed into law by President Bush on October 3, 2008. Read it for yourself:

      ————

      SEC. 106. RIGHTS; MANAGEMENT; SALE OF TROUBLED ASSETS; REVENUES AND SALE PROCEEDS.

      d) Transfer to Treasury.– Revenues of, and proceeds from the sale of troubled assets purchased under this Act, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under section 113 shall be paid into the general fund of the Treasury for reduction of the public debt.

      ————

      What does it say, people? It says the proceeds–ALL of them–will go to REDUCE THE PUBLIC DEBT. This "Acorn Related Provision" that you are peddling appears NOWHERE in the bill. Not a dime will go to Acorn or any other community organizations.

      Read it for yourself, if you don't believe me:

      A summary of the bill is here, with links to the full text:
      http://en.wikipedia.org/wiki/HR1424

      And the full text of the bill, all 451 pages, is here, on the Senate's own website:
      http://banking.senate.gov/public/_files/latestver

      This so-called "Acorn Related Provision," is a complete myth and a hoax, peddled by people with no principles and no respect for truth, facts, or decorum. To the people passing this poisonous nonsense around: Have you no decency left?

    29. m, Baltimore says:

      Mortgage counseling services are offered by many nonprofit groups. Mortgage counseling is a very useful tool for people to understand how much house they can actually afford, and to avoid falling victim to predatory lenders. If more people had received mortgage counseling, from any one of the many groups that offer it, the housing market would not be in this current crises. If we had more mortgage counseling, there would be fewer troubled mortgage assets.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×