WASHINGTON — Under pressure to address the housing market meltdown, the Senate yesterday passed a bipartisan aid package for builders and distressed homeowners, but the bill faces opposition from the House as being too generous to business.

The 84-12 Senate vote comes as congressional committees work on broader Democratic measures to provide hundreds of billions of dollars to help homeowners refinance into more affordable mortgages. The Senate action comes as home prices plunge, and economists say more than two million families are in danger of foreclosure.

After passage of the Senate bill, Banking Chairman Christopher Dodd, D-Conn., said, "We're not done."

Said Dodd: "This bill is called the Foreclosure Prevention Act. Quite candidly, what we've done here doesn't quite live up to the title."

Sen. Richard Shelby of Alabama, the top Republican on the banking panel, called the measure a good step, while expressing concern that Congress might move well beyond, to a taxpayer-funded bailout of people who "freely" used risky loans.

The Senate-passed bill includes $4 billion in grants to help localities buy and restore foreclosed homes, and a $7,000 income tax credit for buying foreclosed property. The bill beefs up consumer counseling efforts, provides more than $10 billion in mortgage revenue bonds to help refinance mortgages and expands the Federal Housing Administration.

One controversial provision, estimated to cost $25 billion through 2010, would allow home builders and other firms now posting losses to retroactively claim refunds against previous years' taxes.

Harvard economist Lawrence Summers said the business tax break would do little to stimulate activity and could harm the market.