[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1501 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1501
To reauthorize the Neighborhood Stabilization Program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 2, 2021
Mr. Huffman (for himself and Mr. Thompson of California) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To reauthorize the Neighborhood Stabilization Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Housing Redevelopment
Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) even before the economic hardship caused by the COVID-
19 pandemic, the United States faced a shortage of more than
7,000,000 affordable rental homes to meet the needs of
extremely low-income renters;
(2) due to financial burdens and loss of income resulting
from the pandemic, millions of people in the United States are
at risk of eviction or foreclosure, and the need for affordable
housing is expected to increase dramatically;
(3) homelessness is projected to rise by as much as 45
percent across the United States as a result of the pandemic
and economic crisis, meaning nearly 1,000,000 people in the
United States could be experiencing homelessness in the very
near future;
(4) in addition to making long-term investments in the
affordable housing stock in the United States, it is also
critically important to focus resources on more immediate
solutions, such as acquiring and rehabilitating existing
buildings and placing affordability requirements on the housing
that is produced;
(5) acquisition and rehabilitation provides two distinct
advantages by lowering per-unit construction costs and making
affordable housing units available to low-income households
much faster;
(6) in addition to rehabilitation of residential
properties, there are opportunities for adaptive reuse and the
conversion of non-residential office and retail properties to
create new affordable housing in communities across the United
States; and
(7) helping States, local governments, and nonprofit
organizations acquire blighted, abandoned, vacant, foreclosed,
or surplus properties and convert them into affordable housing
will allow for the rapid development of new affordable units,
while stimulating local economies and creating jobs.
SEC. 3. DEFINITIONS.
In this Act:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, a city, county, or other political
subdivision of a State, a consortium of political
subdivisions of a State, a Tribal government, a public
housing authority, or a redevelopment agency; or
(B) any nonprofit entity or consortium of nonprofit
entities, which may submit an application for a grant
under this section in partnership with a for-profit
entity.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 4. REAUTHORIZATION OF NEIGHBORHOOD STABILIZATION PROGRAM.
(a) Authorization of Funds.--
(1) In general.--There is authorized to be appropriated to
the Secretary $1,500,000,000 for fiscal year 2021, to remain
available until expended, for the provision of emergency
assistance for the redevelopment of abandoned and foreclosed
homes, as authorized under title III of division B of the
Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note;
Public Law 110-289), in addition to other related uses of funds
authorized under this section.
(2) Applicability of provisions.--
(A) In general.--Except as otherwise provided in
this section, the provisions under the second
undesignated paragraph under the heading ``community
development fund'' under the heading ``Community
Planning and Development'' under the heading
``DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'' in
title XII of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) relating to
assistance authorized under title III of division B of
the Housing and Economic Recovery Act of 2008 (42
U.S.C. 5301 note; Public Law 110-289) shall apply with
respect to the emergency assistance authorized under
paragraph (1).
(B) Certain criteria not applicable.--The fourth
proviso in the second undesignated paragraph described
in subparagraph (A) of this paragraph (relating to
grantees in areas with foreclosures and the ability to
expend funding within a certain period) shall not apply
with respect to the emergency assistance authorized
under paragraph (1) of this subsection.
(b) Grants; Application.--
(1) In general.--The Secretary shall award grants under
this section to eligible entities through a competitive
process.
(2) Criteria.--Not later than 75 days after the date of
enactment of this Act, the Secretary shall publish the criteria
for awarding grants under this section.
(3) Application.--An eligible entity desiring a grant under
this section shall submit to the Secretary an application--
(A) in such manner and containing such information
as the Secretary may require;
(B) that demonstrates a capacity to execute
projects and leverage potential, and any other
additional factors as determined by the Secretary; and
(C) not later than 200 days after the date of
enactment of this Act.
(4) Preference.--The Secretary shall award preference to an
application for a grant under this section to applicants that
submit proposals--
(A) to provide assistance in areas with high levels
of cost-burdened households;
(B) to provide assistance in rural areas;
(C) to provide assistance in communities that have
adopted local land-use policies, building codes, or
related regulations that favor greater housing
production, such as--
(i) allowing greater density near public
transportation lines;
(ii) establishing by-right development;
(iii) eliminating off-street parking
requirements;
(iv) granting density bonuses;
(v) employing inclusionary zoning;
(vi) relaxing minimum lot sizes;
(vii) authorizing conversion of commercial
properties into mixed-use and residential
properties; or
(viii) other local land-use policies,
building codes, or related regulations that
favor greater housing production;
(D) to provide assistance in areas that are in
close proximity to high-frequency public
transportation; or
(E) that have a higher proportion of affordable
units for households with incomes that are less than 50
percent of the area median income.
(5) Diversity.--In awarding grants under this section, the
Secretary shall ensure a geographic diversity of grantees from
across the United States.
(c) Use of Funds.--
(1) In general.--A recipient of a grant under this
section--
(A) shall use grant funds to purchase blighted,
abandoned, vacant, foreclosed, or surplus property and
convert the property into affordable housing, which
shall serve individuals and families with a household
income that does not exceed the area median income;
(B) may use grant funds for mixed-use development
projects, conversion of non-residential office and
retail properties, and other redevelopment requiring
changes to land use restrictions; and
(C) shall, to the maximum extent feasible--
(i) provide for the hiring of employees who
reside in the vicinity, as such term is defined
by the Secretary, of projects funded under this
section; or
(ii) contract with small business concerns
owned and controlled by socially and
economically disadvantaged individuals (as
defined in section 8(d)(3)(C) of the Small
Business Act (15 U.S.C. 637(d)(3)(C)) residing
in the vicinity of projects funded under this
section.
(2) Set aside for extremely low-income and very low-income
families.--Not less than 25 percent of the affordable housing
described in paragraph (1) shall service individuals and
families with a household income that does not exceed 50
percent of the area median income.
(3) Affordability periods.--
(A) In general.--The affordability period for
housing assisted under this section--
(i) with respect to rental housing or
housing with resale restrictions, shall be not
less than 30 years, beginning on project
completion; and
(ii) with respect to housing with recapture
restrictions, shall be not less than 10, 20, or
30 years in accordance with the affordability
period requirements under section 93.305 of
title 24, Code of Federal Regulations, or any
successor regulation.
(B) Longer periods permitted.--Nothing in
subparagraph (A) shall be construed to prohibit a
recipient of a grant under this section from
establishing a longer affordability period than is
required under that subparagraph.
(4) Deadline for expending funds.--A recipient of a grant
under this section shall expend--
(A) not less than 50 percent of allocated funds
under this section not later than 3 years after the
date on which the funds become available to the grantee
for obligation; and
(B) 100 percent of allocated funds under this
section not later than 6 years after the date on which
the funds become available to the grantee for
obligation.
(d) Technical Assistance.--
(1) In general.--The Secretary may use not more than 2
percent of the funds made available under this section to
provide technical assistance to grantees under this section.
(2) Sense of congress.--It is the sense of Congress that,
to the extent practicable, the Secretary shall provide
technical assistance directly to grantees under this section.
(e) Deadline for Awarding Funds.--The Secretary shall award all
grant funds authorized under this section not later than 1 year after
the date of enactment of this Act.
(f) Existing Regulations.--Except to the extent that a regulation
is in conflict with the provisions of this Act, the regulations
applicable to the provision of emergency assistance for the
redevelopment of abandoned and foreclosed homes, as authorized under
title III of division B of the Housing and Economic Recovery Act of
2008 (42 U.S.C. 5301 note; Public Law 110-289) and subsequent Acts, as
in effect on the day before the date of enactment of this Act, shall
apply to the provision of assistance under this Act.
<all>