WASHINGTON - Senate Democratic leaders yesterday unveiled legislation designed to aid homeowners at risk of foreclosure and stimulate the flagging economy, including a provision to increase the private-activity bond volume cap by $10 billion and allow housing finance agencies to issue tax-exempt bonds to refinance subprime mortgages.

"We believe when this legislation passes, it will prevent one million home foreclosures," Senate Majority Leader Harry Reid, D-Nev., said at a press conference. "We are convinced that this is the right way to stimulate the economy."

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