Pelosi Bets White House Won't Object To Housing Bill

By Victoria McGrane

(The Politico)  House Speaker Nancy Pelosi is betting President Bush won’t veto the housing bill over a measly $4 billion in foreclosure grants when the fate of government-chartered mortgage agencies Fannie Mae and Freddie Mac is on the line.

“The President is asking us to do something quite significant to address this housing crisis, which has long been neglected by his Administration, and he is going to resent the ability of state and local governments to buy up these properties, which used to be on the revenue roles, which are now abandoned properties taking down communities, taking down the values of their neighbors' homes,” Pelosi said in response to a reporter’s question on the chances of a veto over the foreclosure funds.

“I don't think the President is going to veto this bill. I don't think so.”

As Politico’s David Rogers reported, House Democrats have put the $4 billion in community development block grant funding back into their draft of the housing package – a quid pro quo for their support of the White House plan to backstop beleaguered Fannie and Freddie.

Earlier this week, Sen. Chris Dodd – the original author of the CDBG provision – said the House intended to take out the money in order to ensure White House support of the bill. The provision has drawn veto threats in earlier versions of the legislation.

With Republicans defecting left and right from what they consider a bailout for agencies, the Democrats may have the White House in a corner on this one.