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A Proposal for Economic Stimulation and Revitalization of Real Estate throughout the United States of America By John G. Stockman Summary The collapse of the residential real estate market in the United States, which began more than 18 months ago, has lead to an economic crisis unprecedented in modern history. The economy of the United States, now inextricably linked through globalization and free trade legislation, has precipitated a collapse of economies on a planetary scale. This collapse has plunged the world into a recession that now threatens to rage out of control despite the best efforts of governments, businesses and economists. This proposal, while ambitious, does not propose an all-encompassing solution to the crisis. It does suggest a series of actions, programs and supporting legislation meant to address the root cause of the crisis while simultaneously setting the foundation for the future real estate development standards (both commercial and residential) throughout the United States. Simply put, at the time of this proposal, there is a 9.5 month supply of unsold homes throughout the United States. A healthy economy consistently maintains a 3 to 4 month supply of unsold homes. Massive tracts of residential developments in states like California, Nevada and Florida stand abandoned and repossessed by mortgage companies and banks now on the verge of collapse. Commercial real estate, while not in this situation yet, is soon forecast to feel the effect of this “economic tsunami”. At a practical level, real estate speculation coupled with lax standards for financing, have created a situation where these assets will continue to be devalued with little hope of ever being occupied or sold. This proposal details a five-part plan that will lead to a massive reduction in this inventory while simultaneously creating coveted “green jobs” and establishing a program of materials reclamation that will be used to incent insurers, builders and citizens to reuse building materials, reclaim open spaces and save on insurance premiums. How Will This Program Work? This five-part program will, if enacted and managed properly, establish a Federal program designed to systematically reduce commercial and residential real estate inventories while reclaiming usable resources used to build these now-abandoned or devalued properties. It will need to be administered and monitored at the Federal level through a series of agencies within the Department of Interior, Department of Energy and the Department of Labor. Other agencies that may be involved include the Department of Commerce and the Department of Homeland Security. At its most basic level, the Federal government will establish a program that, coupled with current plans within the Administration to buy up toxic assets (“Bad Bank Option”), acquire and disassemble residential communities and commercial properties that are deemed no longer viable. Under this program, toxic assets that are acquired by the Federal government will be evaluated and ranked to determine their future viability.

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