March 24 (Bloomberg) -- Democratic presidential candidate Hillary Clinton called on President George W. Bush and lawmakers to take quick action to pass a new economic stimulus package and control a crisis in the U.S. housing market.

``We've seen unprecedented action to maintain confidence in our credit markets,'' Clinton said today at the University of Pennsylvania in Philadelphia. ``It's now time for equally aggressive action to help families avoid foreclosure and keep communities across our country from spiraling into recession.''

Clinton, a New York senator, is focusing on the sagging economy as she campaigns in Pennsylvania, which has lost more than 200,000 manufacturing jobs since Bush took office. The state's April 22 primary is the next big prize in her battle with Barack Obama for the Democratic nomination.

In an interview with Bloomberg News last week, Clinton, 60, previewed her proposal for a $30 billion, two-year program to help homeowners and communities hit by rising foreclosures. The money would be distributed to states and localities based on need, she said in the March 20 telephone interview.

The plan for a second government stimulus package builds on Clinton's earlier proposals to ease the mortgage crunch, including a 90-day moratorium on foreclosures and a freeze on subprime adjustable mortgage rates of five years or more. She also called on Bush to appoint an emergency working group led by someone such as former Federal Reserve Chairman Alan Greenspan to study the foreclosure issue and report back.

Pennsylvania Primary

Clinton is campaigning today and tomorrow in Pennsylvania, a state she is favored to win. Her campaign is looking for a big victory to gain momentum for the remaining contests and help her catch up in the number of delegates to the Democratic convention that will determine the nominee.

Obama, 46, leads Clinton 1,406 to 1,249 in the number of pledged delegates -- those awarded through primaries and caucuses -- according to the Associated Press.

To counter his lead, Clinton is playing up her wins in big states such as Ohio and contending that she is the better candidate to take on presumptive Republican nominee John McCain in the November general election. The argument is intended to sway the undecided among the 794 superdelegates -- Democratic Party officials and lawmakers who help determine the nominee.

Less Cash

Clinton entered this phase of the nominating battle with less cash than her rival. She had about $11 million for the primary elections at the end of February, compared with Obama's $32 million, according to figures provided by the two campaigns.

Howard Wolfson, a senior adviser to Clinton, told reporters this weekend that money isn't everything; Obama outspent Clinton in Ohio and Texas and she still won those primaries, he said. ``We are going to have the resources we need,'' he said.

Obama is taking a few days off from campaigning. His campaign manager, David Plouffe, told reporters on a conference call that while Clinton has ``some good ideas,'' she's not someone Americans can trust to bring fundamental change.

``At the end of the day this is not about ideas,'' Plouffe said today. ``She has accepted a lot of money from the same financial interests she's suggesting she's going to take on.''

Clinton's new housing proposal may help her in Pennsylvania, where voters are feeling the pinch of job losses.

Refinancings

The money could be used to counsel homeowners in financial distress, help state agencies with refinancings, allow localities to purchase and rehabilitate foreclosed properties for resale, and help communities clean up blighted areas with new infrastructure, including fire and police support.

Under Clinton's plan, the housing fund's $30 billion would be distributed directly to states and localities based on formulas used by the Department of Housing and Urban Development's community block-grant program. Localities could use the money as they see fit, within the program's parameters.

Clinton's plan revives her proposal from last year to inject another $10 billion into state housing agencies to help them refinance unworkable mortgages, with the goal of helping 100,000 homeowners keep their houses.

House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, has proposed legislation including $10 billion to help states and localities purchase mortgages.

Frank/Dodd

Frank and Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, also want to expand federal guarantees for restructured mortgages, legislation Clinton has co-sponsored in the Senate. Clinton said the working group she's proposing would determine how to make their proposal work.

Clinton said she would also clarify the liability facing mortgage companies that are now hesitant to help families restructure their loans. ``They're afraid of being sued'' by companies and investors who own the debt, she said.

U.S. home foreclosure filings jumped 60 percent in February, and more than 223,000 properties are in default, or one in every 557 households, according to Irvine, California- based RealtyTrac Inc.

Last month Congress passed and Bush signed into law a $168 billion economic stimulus package that will send tax rebate checks to more than 100 million households this year.

Clinton today told the crowd of about 200 in Philadelphia about the day her husband, former President Bill Clinton, bought their first house. ``That first home meant the world to us,'' she said. ``Families across America feel the same way.''

To contact the reporters on this story: Kristin Jensen in Philadelphia at kjensen@bloomberg.net; Lorraine Woellert in Washington at lwoellert@bloomberg.net

Last Updated: March 24, 2008 12:23 EDT