[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4856 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4856
To improve the safety of, affordability of, and access to housing.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 1, 2025
Mr. Lawler introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committees on
Ways and Means, Oversight and Government Reform, Energy and Commerce,
and Veterans' Affairs, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve the safety of, affordability of, and access to housing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Revitalizing
America's Housing Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; Table of contents.
TITLE I--PROMOTING OPPORTUNITY AND INCREASING SUPPLY
Sec. 101. Identification of regulatory barriers to affordable housing
in HUD annual report.
Sec. 102. Qualifying ordinary income added to special rules for
investments in opportunity zones.
Sec. 103. Relieving strain from shortages of transformers.
Sec. 104. Incentivizing zoning reform.
Sec. 105. Decreasing the equity penalty and incentivizing more long-
term owners to sell homes.
TITLE II--INCREASING ACCESS TO HOUSING AND ADDRESSING COST
Sec. 201. Expanding workforce and volunteer housing.
Sec. 202. Supporting affordability and safety for public servants.
Sec. 203. Expanding programs supporting homeownership for those serving
the community.
Sec. 204. Improving volunteer first responder housing.
Sec. 205. Improving access to housing for veterans.
Sec. 206. Supporting veteran families in need.
Sec. 207. Attracting private investment to build and rehabilitate
owner-occupied homes.
Sec. 208. Better utilizing and disposing of unused military and
government lands for housing.
Sec. 209. Energy conservation standards for manufactured housing.
Sec. 210. Rental assistance demonstration program.
Sec. 211. Creating incentives for small dollar loan originators.
Sec. 212. Small dollar mortgage points and fees.
Sec. 213. Removing Outdated Regulation for Manufactured Housing.
TITLE III--SERVING THE MOST VULNERABLE; HEALTH AND SAFETY
Sec. 301. GAO study to determine proximity of housing to Superfund
sites.
Sec. 302. Ensuring public housing agencies inspect each dwelling unit
each year.
Sec. 303. Incentivizing local solutions to homelessness.
Sec. 304. Improving mold and health standards.
Sec. 305. Improving Protection from Lead Hazards.
Sec. 306. Improving housing for the elderly and disabled.
TITLE IV--GOOD GOVERNANCE
Sec. 401. Requiring annual testimony and oversight from housing
regulators.
Sec. 402. Requiring annual testimony and oversight for government
guaranteed or insured mortgage programs.
Sec. 403. Testimony and report from United States Interagency Council
on Homelessness.
Sec. 404. Report detailing NYCHA compliance with and HUD oversight of
2019 agreement.
Sec. 405. FHA reporting requirements on safety and soundness.
Sec. 406. Combatting squatting.
Sec. 407. Reallocation of voucher funding.
TITLE V--REGULATORY FLEXIBILITY
Sec. 501. Authorization of Moving to Work Program.
Sec. 502. Rescission of Public and Indian Housing Notice 2021-18.
TITLE VI--IMPROVING FINANCIAL LITERACY REGARDING HOUSING
Sec. 601. Reforms to housing counseling and financial literacy
programs.
TITLE I--PROMOTING OPPORTUNITY AND INCREASING SUPPLY
SEC. 101. IDENTIFICATION OF REGULATORY BARRIERS TO AFFORDABLE HOUSING
IN HUD ANNUAL REPORT.
Section 8 of the Department of Housing and Urban Development Act
(42 U.S.C. 3536) is amended by adding at the end the following: ``Each
such annual report shall include an identification of significant
regulatory barriers to affordable housing, within the meaning of such
term as provided in the first sentence of section 1203 of the Housing
and Community Development Act of 1992 (42 U.S.C. 12705b), and a
discussion and analysis of how to reduce or remove such barriers.''.
SEC. 102. QUALIFYING ORDINARY INCOME ADDED TO SPECIAL RULES FOR
INVESTMENTS IN OPPORTUNITY ZONES.
(a) In General.--Section 1400Z-2 of the Internal Revenue Code of
1986 is amended--
(1) in the section heading, by striking ``capital gains
invested'' and inserting ``investments'',
(2) in subsection (a)--
(A) in paragraph (1)--
(i) in the heading, by inserting
``qualifying ordinary income and'' after
``of'',
(ii) by inserting ``qualifying ordinary
income and'' after ``case of'',
(iii) by amending subparagraph (A) to read
as follows:
``(A) gross income for the taxable year shall not
include--
``(i) so much of such gain as does not
exceed the aggregate amount invested by the
taxpayer in a qualified opportunity fund during
the 180-day period beginning on the date of
such sale or exchange, and
``(ii) so much of such qualifying ordinary
income as does not exceed the aggregate amount
invested by the taxpayer in a qualified
opportunity fund during such taxable year,'',
and
(iv) in subparagraph (B), by inserting
``qualifying ordinary income and'' after
``amount of'',
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``or''
at the end,
(ii) in subparagraph (B), by striking the
period at the end and inserting ``, or'', and
(iii) by adding at the end the following:
``(C) with respect to qualified ordinary income
received in a taxable year beginning after December 31,
2026.'', and
(C) by adding at the end the following:
``(3) Qualifying ordinary income defined.--In this
subsection, the term `qualifying ordinary income' means
ordinary income other than income attributable to capital
gains.'',
(3) in subsection (b)--
(A) in the subsection heading, by inserting
``Qualifying Ordinary Income and'' after ``Deferral
of'',
(B) in paragraph (1), by striking ``Gain'' and
inserting ``Qualifying ordinary income and gain'', and
(C) in paragraph (2)--
(i) in subparagraph (A)--
(I) by inserting ``qualifying
ordinary income and'' after ``amount
of'', and
(II) in clause (i), by striking
``of gain'', and
(ii) in subparagraph (B)--
(I) in the clause (ii) heading, by
striking ``gain'' and inserting
``amount'', and
(II) by striking ``the amount of
gain'' each place it appears and
inserting ``the amount'', and
(4) in subsection (e)(1), by inserting ``qualifying
ordinary income and'' after ``investments of''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts invested after the date of the enactment of this Act.
SEC. 103. RELIEVING STRAIN FROM SHORTAGES OF TRANSFORMERS.
Section 321(35) of the Energy Policy and Conservation Act (42
U.S.C. 6291(35)) is amended by adding at the end the following:
``(C) Efficiency level.--The Secretary shall not
finalize any rule under which the efficiency level of a
liquid-immersed type, low voltage dry type, or medium
voltage dry type distribution transformer is greater
than trial standard level 2 (as described in table V.1
in the proposed rule entitled `Energy Conservation
Program: Energy Conservation Standards for Distribution
Transformers' (88 Fed. Reg. 1722 (January 11, 2023))).
``(D) Effective date for certain rules.--Any rule
finalized by the Secretary under which the efficiency
level of a liquid-immersed type, low voltage dry type,
or medium voltage dry-type distribution transformer is
trial standard level 1 or 2 (as described in table V.1
in the proposed rule entitled `Energy Conservation
Program: Energy Conservation Standards for Distribution
Transformers' (88 Fed. Reg. 1722 (January 11, 2023)))
shall not take effect until 10 years after the date on
which the rule is finalized.''.
SEC. 104. INCENTIVIZING ZONING REFORM.
(a) Purpose.--The purpose of this section is to discourage the use
of discriminatory land use policies and remove barriers to making
housing more affordable in order to further the original intent of the
Community Development Block Grant program.
(b) Land Use Plan.--
(1) In general.--Section 104 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5304) is amended by adding
at the end the following:
``(n) Plan To Track Discriminatory Land Use Policies.--
``(1) In general.--Prior to receipt in any fiscal year of a
grant from the Secretary under subsection (b), (d)(1), or
(d)(2)(B) of section 106, each recipient shall have prepared
and submitted, not less frequently than once during the
preceding 5-year period, in accordance with this subsection and
in such standardized form as the Secretary shall, by
regulation, prescribe, with respect to each land use policy
described in paragraph (2) that is applicable to the
jurisdiction served by the recipient, a description of--
``(A) whether the recipient has already adopted the
policy in the jurisdiction served by the recipient;
``(B) the plan of the recipient to implement the
policy in that jurisdiction; or
``(C) the ways in which adopting the policy will
benefit the jurisdiction.
``(2) Land use policies.--The policies described in this
paragraph are as follows:
``(A) Enacting high-density single-family and
multifamily zoning.
``(B) Expanding by-right multifamily zoned areas.
``(C) Allowing duplexes, triplexes, or fourplexes
in areas zoned primarily for single-family residential
homes.
``(D) Allowing manufactured homes in areas zoned
primarily for single-family residential homes.
``(E) Allowing multifamily development in retail,
office, and light manufacturing zones.
``(F) Allowing single-room occupancy development
wherever multifamily housing is allowed.
``(G) Reducing minimum lot size.
``(H) Ensuring historic preservation requirements
and other land use policies or requirements are
coordinated to encourage creation of housing in
historic buildings and historic districts.
``(I) Increasing the allowable floor area ratio in
multifamily housing areas.
``(J) Creating transit-oriented development zones.
``(K) Streamlining or shortening permitting
processes and timelines, including through one-stop and
parallel-process permitting.
``(L) Eliminating or reducing off-street parking
requirements.
``(M) Ensuring impact and utility investment fees
accurately reflect required infrastructure needs and
related impacts on housing affordability are otherwise
mitigated.
``(N) Allowing prefabricated construction.
``(O) Reducing or eliminating minimum unit square
footage requirements.
``(P) Allowing the conversion of office units to
apartments.
``(Q) Allowing the subdivision of single-family
homes into duplexes.
``(R) Allowing accessory dwelling units, including
detached accessory dwelling units, on all lots with
single-family homes.
``(S) Establishing density bonuses.
``(T) Eliminating or relaxing residential property
height limitations.
``(U) Using property tax abatements to enable
higher density and mixed-income communities.
``(V) Donating vacant land for affordable housing
development.
``(3) Effect of submission.--A submission under this
subsection shall not be binding with respect to the use or
distribution of amounts received under section 106.
``(4) Acceptance or nonacceptance of plan.--The acceptance
or nonacceptance of any plan submitted under this subsection in
which the information required under this subsection is
provided is not an endorsement or approval of the plan,
policies, or methodologies, or lack thereof.''.
(2) Effective date.--The requirements under subsection (n)
of section 104 of the Housing and Community Development Act of
1974 (42 U.S.C. 5304), as added by paragraph (1), shall--
(A) take effect on the date that is 1 year after
the date of enactment of this Act; and
(B) apply to recipients of a grant under subsection
(b), (d)(1), or (d)(2)(B) of section 106 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5306)
before, on, and after such date.
SEC. 105. DECREASING THE EQUITY PENALTY AND INCENTIVIZING MORE LONG-
TERM OWNERS TO SELL HOMES.
(a) Increase of Exclusion of Gain From Sale of Principal
Residence.--Section 121(b) of the Internal Revenue Code of 1986 is
amended--
(1) by striking ``$250,000'' and inserting ``$500,000''
each place it appears,
(2) by striking ``500,000'' and inserting ``$1,000,000''
each place it appears,
(3) in paragraph (2)(A), in the heading, by striking
``$500,000'' and inserting ``$1,000,000'', and
(4) by adding at the end the following new paragraph:
``(5) Adjustment for inflation.--In the case of a taxable
year beginning after 2024, the $500,000 and $1,000,000 amounts
in paragraphs (1), (2), and (4) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`2023' for `2016' in subparagraph (A)(ii) thereof.
If any increase under this clause is not a multiple of $100,
such increase shall be rounded to the next lowest multiple of
$100.''.
(b) Effective Date.--The amendments made by this section shall
apply to sales and exchanges after the date of the enactment of this
Act.
TITLE II--INCREASING ACCESS TO HOUSING AND ADDRESSING COST
SEC. 201. EXPANDING WORKFORCE AND VOLUNTEER HOUSING.
(a) Congressional Findings.--The Congress finds that--
(1) the lack of affordable housing in the United States is
an issue impacting millions of middle-class, working American
families;
(2) many of these families earn more annually than the
income limits for certain Federal housing financing and
benefits; and
(3) these families are often excluded from living in
neighborhoods near their places of work, schools, shopping, and
healthcare due to a lack of affordability.
(b) Report to Congress.--Not later than 180 days after the date of
the enactment of this Act, the Comptroller General of the United States
shall submit to the Congress a report that--
(1) identifies issues with housing affordability for
America's middle-income homeowners and renters, including
identifying geographically where housing is the most
unaffordable for these populations;
(2) identifies Federal housing programs, including Federal
tax credits, grants, credit programs, and other programs that
currently benefit lower-income households, which are not
available to middle-income households;
(3) identifies any gaps in the inclusion of middle-income
households in Federal housing programs designed to promote
affordability;
(4) sets forth recommendations for a definition of
``workforce housing'' based on income parameters in order to
assist Federal agencies in including middle-income households
under existing Federal programs; and
(5) analyzes how such a definition could relate to
incentives for workforce housing development through Federal
programs, policies, and other initiatives.
SEC. 202. SUPPORTING AFFORDABILITY AND SAFETY FOR PUBLIC SERVANTS.
Section 3(a) of the United States Housing Act of 1937 (42 U.S.C.
1437a(a)) is amended--
(1) in paragraph (1), by striking ``Except as provided in
paragraph (2)'' and inserting ``Except as provided in
paragraphs (2) and (4)''; and
(2) in paragraph (4)--
(A) in the heading, by striking ``Occupancy by
police officers'' and inserting, ``Occupancy by police
officers, firefighters, and emergency medical
technicians'';
(B) by redesignating subparagraph (C) as
subparagraph (D);
(C) by inserting after subparagraph (B) the
following:
``(C) Rental payments.--Notwithstanding paragraph
(1), a family of which one or more members are a police
officer, firefighter, or emergency medical technician
shall pay as rent for a dwelling unit assisted under
this Act the highest of the following amounts, rounded
to the nearest dollar:
``(i) 15 per centum of the family's monthly
adjusted income; or
``(ii) 5 per centum of the family's monthly
income''; and
(D) by amending subparagraph (D), as so
redesignated, to read as follows:
``(D) Definitions.--In this paragraph:
``(i) Police officer.--The term `police
officer' means any person determined by a
public housing agency to be, during the period
of residence of that person in public housing,
employed on a full-time basis as a duly
licensed professional police officer by a
Federal, State, or local government or by any
agency thereof (including a public housing
agency having an accredited police force).
``(ii) Firefighter.--The term `firefighter'
means any person determined by a public housing
agency to be, during the period of residence of
that person in public housing, employed on a
full-time basis as a firefighter by a fire
department or emergency medical services
responder unit of the Federal Government, a
State, unit of general local government, or an
Indian tribal government.
``(iii) Emergency medical technician.--The
term `emergency medical technician' means any
person determined by a public housing agency to
be, during the period of residence of that
person in public housing, employed on a full-
time basis as an emergency medical technician
by a fire department or emergency medical
services responder unit of the Federal
Government, a State, unit of general local
government, or an Indian tribal government.''.
SEC. 203. EXPANDING PROGRAMS SUPPORTING HOMEOWNERSHIP FOR THOSE SERVING
THE COMMUNITY.
(a) Eligibility for Good Neighbors Next Door Sales Program.--
Members of the Armed Forces, firefighters, and law enforcement officers
shall be eligible to purchase eligible properties under the Good
Neighbor Next Door Sales Program of the Secretary of Housing and Urban
Development, as provided under subsection (b).
(b) Eligible Properties.--Notwithstanding section 204 of the
National Housing Act (12 U.S.C. 1710), part 291 of the regulations of
the Secretary of Housing and Urban Development (24 C.F.R. part 291), or
any other provision of law, regulation, guideline, order, or notice, in
carrying out the Good Neighbor Next Door Sales Program for single-unit
properties acquired by the Secretary, properties shall be made
available for purchase under the Program by members of the Armed
Forces, by firefighters, and by law enforcement officers without regard
to whether or not they are located in a revitalization area.
(c) Regulations.--The Secretary of Housing and Urban Development
shall amend the regulations of the Secretary as necessary to carry out
subsections (a) and (b).
SEC. 204. IMPROVING VOLUNTEER FIRST RESPONDER HOUSING.
(a) Definitions.--In this section:
(1) Bona fide volunteer; eligible employer; qualified
services.--The terms ``bona fide volunteer'', ``eligible
employer'', and ``qualified services'' have the meanings given
those terms in section 457(e) of the Internal Revenue Code of
1986.
(2) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 501(b) of
the Housing Act of 1949 (42 U.S.C. 1471(b)).
(3) Qualified volunteer first responder.--The term
``qualified volunteer first responder'' means any individual
who--
(A) is a bona fide volunteer performing qualified
services for an eligible employer;
(B) continuously served as a volunteer for the
eligible employer during the 2-year period preceding
the date on which the individual submits a verification
letter under section 3(b) or 4(b);
(C) during each of the 2 years described in
subparagraph (B)--
(i) met the minimum requirements for active
membership established by the eligible
employer; or
(ii) if the eligible employer did not
establish minimum requirements, volunteered for
not less than 200 hours; and
(D) is certified as a firefighter or other first
responder in the State, political subdivision of a
State, or jurisdiction of an Indian Tribe in which the
individual is serving as volunteer.
(b) Department of Agriculture Single Family Housing Guaranteed Loan
Program.--
(1) In general.--A qualified volunteer first responder who
submits to the Secretary of Agriculture (referred to in this
subsection as the ``Secretary'') a verification letter in
accordance with paragraph (2) shall be eligible for a deduction
in annual income under section 3555.152(c) of title 7, Code of
Federal Regulations (or any successor regulation), in the
amount of $18,000.
(2) Verification letter.--To be eligible for a deduction
under paragraph (1), a qualified volunteer first responder
shall submit to the Secretary a verification letter from the
head of the eligible employer for which the qualified volunteer
first responder volunteers, which shall--
(A) include the date on which the qualified
volunteer first responder joined the eligible employer
as a volunteer;
(B) attest to the Secretary that the qualified
volunteer first responder meets the requirements under
subparagraphs (B) and (C) of subsection (a)(3); and
(C) include a copy of the certification described
in subsection (a)(3)(D).
(c) Good Neighbor Next Door Sales Program and Similar Programs.--
(1) Eligibility.--A qualified volunteer first responder who
submits to the Secretary of Housing and Urban Development
(referred to in this section as the ``Secretary'') a
verification letter in accordance with paragraph (2) shall
qualify as a firefighter or emergency medical technician for
purposes of any single family property disposition program
carried out by the Secretary by regulation under section 204(g)
of the National Housing Act (12 U.S.C. 1710(g)) that offers
discounted home prices to firefighters or emergency medical
technicians.
(2) Verification letter.--To qualify to purchase a home
under a single family property disposition program referred to
in paragraph (1), a qualified first responder shall submit to
the Secretary a verification letter from the head of the
eligible employer for which the qualified volunteer first
responder volunteers, which shall--
(A) include the date on which the qualified
volunteer first responder joined the eligible employer
as a volunteer;
(B) attest to the Secretary that the qualified
volunteer first responder meets the requirements under
subparagraphs (B) and (C) of subsection (a)(3);
(C) include a copy of the certification described
in subsection (a)(3)(D); and
(D) include a certification from the qualified
volunteer first responder of the responder's good faith
intention to continue serving as a volunteer for the
eligible employer for not less than 1 year following
the date of closing.
SEC. 205. IMPROVING ACCESS TO HOUSING FOR VETERANS.
(a) Service Connected Disability Compensation.--Section 102(a)(20)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)(20)) is amended by adding at the end the following:
``(C) Service-connected disability compensation.--
When determining whether a person is of a person of low
and moderate income, a person of low income, or a
person of moderate income under this paragraph, a
State, unit of general local government, or Indian
tribe shall exclude any service-connected disability
compensation received by such person from the
Department of Veterans Affairs.''.
(b) Report.--The Comptroller General of the United States shall,
not later than 1 year after the date of the enactment of this Act,
submit to the Congress a report that--
(1) examines how service-connected disability compensation
is treated for the purposes of determining eligibility for all
programs administered by the Secretary of Housing and Urban
Development and identifies any cases where service-connected
disability compensation is treated inconsistently across a
program; and
(2) with respect to each program administered by the
Secretary of Housing and Urban Development, provides
legislative recommendations relating to how such program could
better serve veteran populations, and under-served communities.
SEC. 206. SUPPORTING VETERAN FAMILIES IN NEED.
Section 2044(e) of title 38, United States Code, is amended--
(1) by redesignating subparagraphs (A) through (H) as
paragraphs (1) through (8), respectively; and
(2) by adding at the end the following new paragraph:
``(9) The amounts that are appropriated to carry out such
subsections for fiscal year 2026 and each fiscal year
thereafter.''.
SEC. 207. ATTRACTING PRIVATE INVESTMENT TO BUILD AND REHABILITATE
OWNER-OCCUPIED HOMES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 42 the following new section:
``SEC. 42A. NEIGHBORHOOD HOMES CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
neighborhood homes credit determined under this section for the taxable
year is, with respect to each qualified residence sold by the taxpayer
during such taxable year in an affordable sale, the lesser of--
``(1) an amount equal to--
``(A) the excess (if any) of--
``(i) the reasonable development costs paid
or incurred by the taxpayer with respect to
such qualified residence, over
``(ii) the sale price of such qualified
residence (reduced by any reasonable expenses
paid or incurred by the taxpayer in connection
with such sale), or
``(B) if the neighborhood homes credit agency
determines it is necessary to ensure financial
feasibility, an amount not to exceed 120 percent of the
amount under subparagraph (A),
``(2) 35 percent of the eligible development costs paid or
incurred by the taxpayer with respect to such qualified
residence, or
``(3) 28 percent of the national median sale price for new
homes (as determined pursuant to the most recent census data
available as of the date on which the neighborhood homes credit
agency makes an allocation for the qualified project).
``(b) Development Costs.--For purposes of this section--
``(1) Reasonable development costs.--
``(A) In general.--The term `reasonable development
costs' means amounts paid or incurred for the
acquisition of buildings and land, construction,
substantial rehabilitation, demolition of structures,
or environmental remediation, to the extent that the
neighborhood homes credit agency determines that such
amounts meet the standards specified pursuant to
subsection (f)(1)(C) (as of the date on which
construction or substantial rehabilitation is
substantially complete, as determined by such agency)
and are necessary to ensure the financial feasibility
of such qualified residence.
``(B) Considerations in making determination.--In
making the determination under subparagraph (A), the
neighborhood homes credit agency shall consider--
``(i) the sources and uses of funds and the
total financing,
``(ii) any proceeds or receipts generated
or expected to be generated by reason of tax
benefits, and
``(iii) the reasonableness of the
developmental costs and fees.
``(2) Eligible development costs.--The term `eligible
development costs' means the amount which would be reasonable
development costs if the amounts taken into account as paid or
incurred for the acquisition of buildings and land did not
exceed 75 percent of such costs determined without regard to
any amount paid or incurred for the acquisition of buildings
and land.
``(3) Substantial rehabilitation.--The term `substantial
rehabilitation' means amounts paid or incurred for
rehabilitation of a qualified residence if such amounts exceed
the greater of--
``(A) $20,000, or
``(B) 20 percent of the amounts paid or incurred by
the taxpayer for the acquisition of buildings and land
with respect to such qualified residence.
``(4) Construction and rehabilitation only after allocation
taken into account.--
``(A) In general.--The terms `reasonable
development costs' and `eligible development costs'
shall not include any amount paid or incurred before
the date on which an allocation is made to the taxpayer
under subsection (e) with respect to the qualified
project of which the qualified residence is part unless
such amount is paid or incurred for the acquisition of
buildings or land.
``(B) Land and building acquisition costs.--Amounts
paid or incurred for the acquisition of buildings or
land shall be included under paragraph (A) only if paid
or incurred not more than 3 years before the date on
which the allocation referred to in subparagraph (A) is
made. If the taxpayer acquired any building or land
from an entity (or any related party to such entity)
that holds an ownership interest in the taxpayer, then
such entity must also have acquired such property
within such 3-year period, and the acquisition cost
included under subparagraph (A) with respect to the
taxpayer shall not exceed the amount such entity paid
or incurred to acquire such property.
``(c) Qualified Residence.--For purposes of this section--
``(1) In general.--The term `qualified residence' means a
residence that--
``(A) is real property affixed on a permanent
foundation,
``(B) is--
``(i) a house which is comprised of 4 or
fewer residential units,
``(ii) a condominium unit, or
``(iii) a house or an apartment owned by a
cooperative housing corporation (as defined in
section 216(b)),
``(C) is part of a qualified project with respect
to which the neighborhood homes credit agency has made
an allocation under subsection (e), and
``(D) is located in a qualified census tract
(determined as of the date of such allocation).
``(2) Qualified census tract.--
``(A) In general.--The term `qualified census
tract' means a census tract--
``(i) which--
``(I) has a median family income
which does not exceed 80 percent of the
median family income for the applicable
area,
``(II) has a poverty rate that is
not less than 130 percent of the
poverty rate of the applicable area,
and
``(III) has a median value for
owner-occupied homes that does not
exceed the median value for owner-
occupied homes in the applicable area,
``(ii) which--
``(I) is located in a city which
has a population of not less than
50,000 and such city has a poverty rate
that is not less than 150 percent of
the poverty rate of the applicable
area,
``(II) has a median family income
which does not exceed the median family
income for the applicable area, and
``(III) has a median value for
owner-occupied homes that does not
exceed 80 percent of the median value
for owner-occupied homes in the
applicable area,
``(iii) which--
``(I) is located in a
nonmetropolitan county,
``(II) has a median family income
which does not exceed the median family
income for the applicable area, and
``(III) has been designated by a
neighborhood homes credit agency under
this clause, or
``(iv) which is not otherwise a qualified
census tract and is located in a disaster area
(as defined in section 7508A(d)(3)), but only
with respect to credits allocated in any period
during which the President of the United States
has determined that such area warrants
individual or individual and public assistance
by the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act.
``(B) Applicable area.--The term `applicable area'
means--
``(i) in the case of a metropolitan census
tract, the metropolitan area in which such
census tract is located, and
``(ii) in the case of a census tract other
than a census tract described in clause (i),
the State.
``(d) Affordable Sale.--For purposes of this section--
``(1) In general.--The term `affordable sale' means a sale
to a qualified homeowner of a qualified residence that the
neighborhood homes credit agency certifies as meeting the
standards promulgated under subsection (f)(1)(D) for a price
that does not exceed--
``(A) in the case of any qualified residence not
described in subparagraph (B), (C), or (D), the amount
equal to the product of 4 multiplied by the median
family income for the applicable area (as determined
pursuant to the most recent census data available as of
the date of the contract for such sale),
``(B) in the case of a house comprised of 2
residential units, 125 percent of the amount described
in subparagraph (A),
``(C) in the case of a house comprised of 3
residential units, 150 percent of the amount described
in subparagraph (A), or
``(D) in the case of a house comprised of 4
residential units, 175 percent of the amount described
in subparagraph (A).
``(2) Qualified homeowner.--The term `qualified homeowner'
means, with respect to a qualified residence, an individual--
``(A) who owns and uses such qualified residence as
the principal residence of such individual, and
``(B) whose family income (determined as of the
date that a binding contract for the affordable sale of
such residence is entered into) is 140 percent or less
of the median family income for the applicable area in
which the qualified residence is located.
``(e) Credit Ceiling and Allocations.--
``(1) Credit limited based on allocations to qualified
projects.--
``(A) In general.--The credit allowed under
subsection (a) to any taxpayer for any taxable year
with respect to one or more qualified residences which
are part of the same qualified project shall not exceed
the excess (if any) of--
``(i) the amount allocated by the
neighborhood homes credit agency under this
paragraph to such taxpayer with respect to such
qualified project, over
``(ii) the aggregate amount of credit
allowed under subsection (a) to such taxpayer
with respect to qualified residences which are
a part of such qualified project for all prior
taxable years.
``(B) Deadline for completion.--No credit shall be
allowed under subsection (a) with respect to any
qualified residence unless the affordable sale of such
residence is during the 5-year period beginning on the
date of the allocation to the qualified project of
which such residence is a part (or, in the case of a
qualified residence to which subsection (i) applies,
the rehabilitation of such residence is completed
during such 5-year period).
``(2) Limitations on allocations to qualified projects.--
``(A) Allocations limited by state neighborhood
homes credit ceiling.--The aggregate amount allocated
to taxpayers with respect to qualified projects by the
neighborhood homes credit agency of any State for any
calendar year shall not exceed the State neighborhood
homes credit amount of such State for such calendar
year.
``(B) Set-aside for certain projects involving
qualified nonprofit organizations.--Rules similar to
the rules of section 42(h)(5) shall apply for purposes
of this section.
``(3) Determination of state neighborhood homes credit
ceiling.--
``(A) In general.--The State neighborhood homes
credit amount for a State for a calendar year is an
amount equal to the sum of--
``(i) the greater of--
``(I) the product of $7, multiplied
by the State population (determined in
accordance with section 146(j)), or
``(II) $9,000,000, and
``(ii) any amount previously allocated to
any taxpayer with respect to any qualified
project by the neighborhood homes credit agency
of such State which can no longer be allocated
to any qualified residence because the 5-year
period described in paragraph (1)(B) expires
during calendar year.
``(B) 3-year carryforward of unused limitation.--
The State neighborhood homes credit amount for a State
for a calendar year shall be increased by the excess
(if any) of the State neighborhood homes credit amount
for such State for the preceding calendar year over the
aggregate amount allocated by the neighborhood homes
credit agency of such State during such preceding
calendar year. Any amount carried forward under the
preceding sentence shall not be carried past the third
calendar year after the calendar year in which such
credit amount originally arose, determined on a first-
in, first-out basis.
``(f) Responsibilities of Neighborhood Homes Credit Agencies.--
``(1) In general.--Notwithstanding subsection (e), the
State neighborhood homes credit dollar amount shall be zero for
a calendar year unless the neighborhood homes credit agency of
the State--
``(A) allocates such amount pursuant to a qualified
allocation plan of the neighborhood homes credit
agency,
``(B) allocates not more than 20 percent of amounts
allocated in the previous year (or for allocations made
in 2025, not more than 20 percent of the neighborhood
homes credit ceiling for such year) to projects with
respect to qualified residences which--
``(i) are located in census tracts
described in subsection (c)(2)(A)(iii),
(c)(2)(A)(iv), (i)(5), or
``(ii) are not located in a qualified
census tract but meet the requirements of
subsection (i)(8),
``(C) promulgates standards with respect to
reasonable qualified development costs and fees,
``(D) promulgates standards with respect to
construction quality,
``(E) in the case of any neighborhood homes credit
agency which makes an allocation to a qualified project
which includes any qualified residence to which
subsection (i) applies, promulgates standards with
respect to protecting the owners of such residences,
including the capacity of such owners to pay
rehabilitation costs not covered by the credit provided
by this section and providing for the disclosure to
such owners of their rights and responsibilities with
respect to the rehabilitation of such residences,
``(F) submits to the Secretary (at such time and in
such manner as the Secretary may prescribe) an annual
report specifying--
``(i) the amount of the neighborhood homes
credits allocated to each qualified project for
the previous year,
``(ii) with respect to each qualified
residence completed in the preceding calendar
year--
``(I) the census tract in which
such qualified residence is located,
``(II) with respect to the
qualified project that includes such
qualified residence, the year in which
such project received an allocation
under this section,
``(III) whether such qualified
residence was new, substantially
rehabilitated and sold to a qualified
homeowner, or substantially
rehabilitated pursuant to subsection
(i),
``(IV) the eligible development
costs of such qualified residence,
``(V) the amount of the
neighborhood homes credit with respect
to such qualified residence,
``(VI) the sales price of such
qualified residence, if applicable, and
``(VII) the family income of the
qualified homeowner (expressed as a
percentage of the applicable area
median family income for the location
of the qualified residence), and
``(iii) such other information as the
Secretary may require, and
``(G) makes available to the general public a
written explanation for any allocation of a
neighborhood homes credit dollar amount which is not
made in accordance with established priorities and
selection criteria of the neighborhood homes credit
agency.
Subparagraph (B) shall be applied by substituting `40 percent'
for `20 percent' each place it appears in the case of any State
in which at least 45 percent of the State population resides
outside metropolitan statistical areas (within the meaning of
section 143(k)(2)(B)) and less than 20 percent of the census
tracts located in the State are described in subsection
(c)(2)(A)(i).
``(2) Qualified allocation plan.--For purposes of this
subsection, the term `qualified allocation plan' means any plan
which--
``(A) sets forth the selection criteria to be used
to prioritize qualified projects for allocations of
State neighborhood homes credit dollar amounts,
including--
``(i) the need for new or substantially
rehabilitated owner-occupied homes in the area
addressed by the project,
``(ii) the expected contribution of the
project to neighborhood stability and
revitalization, including the impact on
neighborhood residents,
``(iii) the capability and prior
performance of the project sponsor, and
``(iv) the likelihood the project will
result in long-term homeownership,
``(B) has been made available for public comment,
and
``(C) provides a procedure that the neighborhood
homes credit agency (or any agent or contractor of such
agency) shall follow for purposes of--
``(i) identifying noncompliance with any
provisions of this section, and
``(ii) notifying the Internal Revenue
Service of any such noncompliance of which the
agency becomes aware.
``(g) Repayment.--
``(1) In general.--
``(A) Sold during 5-year period.--If a qualified
residence is sold during the 5-year period beginning
immediately after the affordable sale of such qualified
residence referred to in subsection (a), the seller
shall transfer an amount equal to the repayment amount
to the relevant neighborhood homes credit agency.
``(B) Use of repayments.--A neighborhood homes
credit agency shall use any amount received pursuant to
subparagraph (A) only for purposes of qualified
projects.
``(2) Repayment amount.--For purposes of paragraph (1)(A)--
``(A) In general.--The repayment amount is an
amount equal to the applicable percentage of the gain
from the sale to which the repayment relates.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage is 50
percent, reduced by 10 percentage points for each year
of the 5-year period referred to in paragraph (1)(A)
which ends before the date of such sale.
``(3) Lien for repayment amount.--A neighborhood homes
credit agency receiving an allocation under this section shall
place a lien on each qualified residence that is built or
rehabilitated as part of a qualified project for an amount such
agency deems necessary to ensure potential repayment pursuant
to paragraph (1)(A).
``(4) Waiver.--
``(A) In general.--The neighborhood homes credit
agency may waive the repayment required under paragraph
(1)(A) if the agency determines that making a repayment
would constitute a hardship to the seller.
``(B) Hardship.--For purposes of subparagraph (A),
with respect to the seller, a hardship may include--
``(i) divorce,
``(ii) disability,
``(iii) illness, or
``(iv) any other hardship identified by the
neighborhood homes credit agency for purposes
of this paragraph.
``(h) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Neighborhood homes credit agency.--The term
`neighborhood homes credit agency' means the agency designated
by the governor of a State as the neighborhood homes credit
agency of the State.
``(2) Qualified project.--The term `qualified project'
means a project that a neighborhood homes credit agency
certifies will build or substantially rehabilitate one or more
qualified residences.
``(3) Determinations of family income.--Rules similar to
the rules of section 143(f)(2) shall apply for purposes of this
section.
``(4) Possessions treated as states.--The term `State'
includes the District of Columbia and the possessions of the
United States.
``(5) Special rules related to condominiums and cooperative
housing corporations.--
``(A) Determination of development costs.--In the
case of a qualified residence described in clause (ii)
or (iii) of subsection (c)(1)(A), the reasonable
development costs and eligible development costs of
such qualified residence shall be an amount equal to
such costs, respectively, of the entire condominium or
cooperative housing property in which such qualified
residence is located, multiplied by a fraction--
``(i) the numerator of which is the total
floor space of such qualified residence, and
``(ii) the denominator of which is the
total floor space of all residences within such
property.
``(B) Tenant-stockholders of cooperative housing
corporations treated as owners.--In the case of a
cooperative housing corporation (as such term is
defined in section 216(b)), a tenant-stockholder shall
be treated as owning the house or apartment which such
person is entitled to occupy.
``(6) Related party sales not treated as affordable
sales.--
``(A) In general.--A sale between related persons
shall not be treated as an affordable sale.
``(B) Related persons.--For purposes of this
paragraph, a person (in this subparagraph referred to
as the `related person') is related to any person if
the related person bears a relationship to such person
specified in section 267(b) or 707(b)(1), or the
related person and such person are engaged in trades or
businesses under common control (within the meaning of
subsections (a) and (b) of section 52). For purposes of
the preceding sentence, in applying section 267(b) or
707(b)(1), `10 percent' shall be substituted for `50
percent'.
``(7) Inflation adjustment.--
``(A) In general.--In the case of a calendar year
after 2025, the dollar amounts in subsections
(b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and
(i)(2)(C) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting `calendar year
2022' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--
``(i) In the case of the dollar amounts in
subsections (b)(3)(A) and (i)(2)(C), any
increase under paragraph (1) which is not a
multiple of $1,000 shall be rounded to the
nearest multiple of $1,000.
``(ii) In the case of the dollar amount in
subsection (e)(3)(A)(i)(I), any increase under
paragraph (1) which is not a multiple of $0.01
shall be rounded to the nearest multiple of
$0.01.
``(iii) In the case of the dollar amount in
subsection (e)(3)(A)(i)(II), any increase under
paragraph (1) which is not a multiple of
$100,000 shall be rounded to the nearest
multiple of $100,000.
``(8) Report.--
``(A) In general.--The Secretary shall annually
issue a report, to be made available to the public,
which contains the information submitted pursuant to
subsection (f)(1)(F).
``(B) De-identification.--The Secretary shall
ensure that any information made public pursuant to
subparagraph (A) excludes any information that would
allow for the identification of qualified homeowners.
``(9) List of qualified census tracts.--The Secretary of
Housing and Urban Development shall, for each year, make
publicly available a list of qualified census tracts under--
``(A) on a combined basis, clauses (i) and (ii) of
subsection (c)(2)(A),
``(B) clause (iii) of such subsection, and
``(C) subsection (i)(5)(A).
``(10) Denial of deductions if converted to rental
housing.--If, during the 5-year period beginning immediately
after the affordable sale of a qualified residence referred to
in subsection (a), an individual who owns a qualified residence
(whether or not such individual was the purchaser in such
affordable sale) fails to use such qualified residence as such
individual's principal residence for any period of time, no
deduction shall be allowed for expenses paid or incurred by
such individual with respect to renting, during such period of
time, such qualified residence.
``(i) Application of Credit With Respect to Owner-Occupied
Rehabilitations.--
``(1) In general.--In the case of a qualified
rehabilitation by the taxpayer of any qualified residence which
is owned (as of the date that the written binding contract
referred to in paragraph (3) is entered into) by a specified
homeowner, the rules of paragraphs (2) through (7) shall apply.
``(2) Alternative credit determination.--In the case of any
qualified residence described in paragraph (1), the
neighborhood homes credit determined under subsection (a) with
respect to such residence shall (in lieu of any credit
otherwise determined under subsection (a) with respect to such
residence) be allowed in the taxable year during which the
qualified rehabilitation is completed (as determined by the
neighborhood homes credit agency) and shall be equal to the
least of--
``(A) the excess (if any) of--
``(i) the amounts paid or incurred by the
taxpayer for the qualified rehabilitation of
the qualified residence to the extent that such
amounts are certified by the neighborhood homes
credit agency (at the time of the completion of
such rehabilitation) as meeting the standards
specified pursuant to subsection (f)(1)(C),
over
``(ii) any amounts paid to such taxpayer
for such rehabilitation,
``(B) 50 percent of the amounts described in
subparagraph (A)(i), or
``(C) $50,000.
``(3) Qualified rehabilitation.--
``(A) In general.--For purposes of this subsection,
the term `qualified rehabilitation' means a
rehabilitation or reconstruction performed pursuant to
a written binding contract between the taxpayer and the
specified homeowner if the amount paid or incurred by
the taxpayer in the performance of such rehabilitation
or reconstruction exceeds the dollar amount in effect
under subsection (b)(3)(A).
``(B) Application of limitation to expenses paid or
incurred after allocation.--A rule similar to the rule
of section (b)(4) shall apply for purposes of this
subsection.
``(4) Specified homeowner.--For purposes of this
subsection, the term `qualified homeowner' means, with respect
to a qualified residence, an individual--
``(A) who owns and uses such qualified residence as
the principal residence of such individual as of the
date that the written binding contract referred to in
paragraph (3) is entered into, and
``(B) whose family income (determined as of such
date) does not exceed the median family income for the
applicable area (with respect to the census tract in
which the qualified residence is located).
``(5) Additional census tracts in which owner-occupied
residences may be located.--In the case of any qualified
residence described in paragraph (1), the term `qualified
census tract' includes any census tract which--
``(A) meets the requirements of subsection
(c)(2)(A)(i) without regard to subclause (III) thereof,
and
``(B) is designated by the neighborhood homes
credit agency for purposes of this paragraph.
``(6) Modification of repayment requirement.--In the case
of any qualified residence described in paragraph (1),
subsection (g) shall be applied by beginning the 5-year period
otherwise described therein on the date on which the qualified
homeowner acquired such residence.
``(7) Related parties.--Paragraph (1) shall not apply if
the taxpayer is the owner of the qualified residence described
in paragraph (1) or is related (within the meaning of
subsection (h)(6)(B)) to such owner.
``(8) Pyrrhotite remediation.--The requirement of
subsection (c)(1)(C) shall not apply to a qualified
rehabilitation under this subsection of a qualified residence
that is documented by an engineer's report and core testing to
have a foundation that is adversely impacted by pyrrhotite or
other iron sulfide minerals.
``(j) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section, including regulations that prevent avoidance of the rules, and
abuse of the purposes, of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (37), by striking the period at the
end of paragraph (38) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(39) the neighborhood homes credit determined under
section 42A(a).''.
(c) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B) of the Internal Revenue Code of 1986 is amended by
redesignating clauses (iv) through (xii) as clauses (v) through (xiii),
respectively, and by inserting after clause (iii) the following new
clause:
``(iv) the credit determined under section
42A,''.
(d) Basis Adjustments.--
(1) Energy efficient home improvement credit.--Section
25C(g) of the Internal Revenue Code of 1986 is amended by
adding after the first sentence the following new sentence:
``This subsection shall not apply for purposes of determining
the eligible development costs or adjusted basis of any
building under section 42A.''.
(2) Residential clean energy credit.--Section 25D(f) of
such Code is amended by adding after the first sentence the
following new sentence: ``This subsection shall not apply for
purposes of determining the eligible development costs or
adjusted basis of any building under section 42A.''.
(3) New energy efficient home credit.--Section 45L(e) of
such Code is amended by inserting ``or for purposes of
determining the eligible development costs or adjusted basis of
any building under section 42A'' after ``section 42''.
(e) Exclusion From Gross Income.--Part III of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 is amended by inserting
before section 140 the following new section:
``SEC. 139J. STATE ENERGY SUBSIDIES FOR QUALIFIED RESIDENCES.
``(a) Exclusion From Gross Income.--Gross income shall not include
the value of any subsidy provided to a taxpayer (whether directly or
indirectly) by any State energy office (as defined in section 124(a) of
the Energy Policy Act of 2005 (42 U.S.C. 15821(a))) for purposes of any
energy improvements made to a qualified residence (as defined in
section 42A(c)(1)).''.
(f) Conforming Amendments.--
(1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of
section 469 of the Internal Revenue Code of 1986 are each
amended by inserting ``or 42A'' after ``section 42''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 42 the following new item:
``Sec. 42A. Neighborhood homes credit.''.
(3) The table of sections for part III of subchapter B of
chapter 1 of such Code is amended by inserting before the item
relating to section 140 the following new item:
``Sec. 139J. State energy subsidies for qualified residences.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 208. BETTER UTILIZING AND DISPOSING OF UNUSED MILITARY AND
GOVERNMENT LANDS FOR HOUSING.
(a) In General.--A State or unit of local government may submit a
petition to a Federal agency requesting to use unused property owned by
such Federal agency for the construction of affordable housing.
(b) Submission to PBRB.--Any Federal agency that receives a
petition under subsection (a) shall submit a copy of such petition to
the Public Buildings Reform Board.
(c) Determination.--A Federal agency that receives a petition under
subsection (a) shall, not less that 60 days after receiving such
petition determine whether the property is excess.
(d) Justification Required.--If a Federal agency determines under
subsection (c) that a property is not excess such Federal agency shall
submit to the Office of Management and Budget a statement that
justifies why such property is not excess.
(e) Donation by GSA.--If a Federal agency determines a property to
be excess under subsection (b), the General Services Administration may
donate such property to the State or unit of local government that
submitted the petition under subsection (a).
SEC. 209. ENERGY CONSERVATION STANDARDS FOR MANUFACTURED HOUSING.
The Secretary of Energy may not, by rule or otherwise, establish
energy conservation standards for manufactured housing.
SEC. 210. RENTAL ASSISTANCE DEMONSTRATION PROGRAM.
The matter under the heading ``Rental Assistance Demonstration'' in
the Department of Housing and Urban Development Appropriations Act,
2012 (Public Law 112-55), is amended--
(1) by striking the second proviso; and
(2) by striking the fourth proviso.
SEC. 211. CREATING INCENTIVES FOR SMALL DOLLAR LOAN ORIGINATORS.
(a) Small Dollar Mortgage Defined.--In this section, the term
``small dollar mortgage'' means a mortgage loan that--
(1) has an original principal obligation of not more than
$70,000;
(2) is secured by real property designed for the occupancy
of 1 to 4 families; and
(3) is--
(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
(B) made, guaranteed, or insured by the Department
of Veterans Affairs;
(C) made, guaranteed, or insured by the Department
of Agriculture; or
(D) eligible to be purchased or securitized by the
Federal Home Loan Mortgage Corporation or the Federal
National Mortgage Association.
(b) Requirement To Update Regulations.--Not later than 270 days
after the date of enactment of this Act, the Director of the Bureau of
Consumer Financial Protection shall issue regulations to update part
1026 of title 12, Code of Federal Regulations (commonly referred to as
``Regulation Z'') to allow for salaried originators of residential
mortgage loans that only originate small dollar mortgages.
SEC. 212. SMALL DOLLAR MORTGAGE POINTS AND FEES.
(a) Definition.--In this section, the term ``small dollar
mortgage'' means a mortgage with an original principal obligation of
less than $70,000.
(b) Amendments Required.--Not later than 180 days after the date of
enactment of this Act, the Director of the Bureau of Consumer Financial
Protection, in consultation with the Secretary of Housing and Urban
Development and the Director of the Federal Housing Finance Agency,
shall amend the limitations with respect to points and fees under
section 1026.32 of title 12, Code of Federal Regulations, or any
successor regulation, to encourage additional lending for small dollar
mortgages.
SEC. 213. REMOVING OUTDATED REGULATION FOR MANUFACTURED HOUSING.
(a) In General.--Section 603(6) of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
5402(6)) is amended by striking ``built on a permanent chassis and''.
(b) Implementation.--Not later than 90 days after the date of the
enactment of this Act, the consensus committee established under
section 604(a)(3) of the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5403(a)(3)) shall meet to
develop and recommend to the Secretary of Housing and Urban Development
such revisions to the Federal manufactured home construction and safety
standards, and related regulations, as are necessary to implement the
amendment made by subsection (a) of this section. Such revised
standards shall be considered by the Secretary for adoption pursuant to
the process set forth in section 604 of such Act.
TITLE III--SERVING THE MOST VULNERABLE; HEALTH AND SAFETY
SEC. 301. GAO STUDY TO DETERMINE PROXIMITY OF HOUSING TO SUPERFUND
SITES.
(a) Study.--The Comptroller General of the United States shall
carry out a study to identify how many residential dwelling units, and
how many dwelling units in public housing (as such term is defined in
section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(B))), are located within one mile of a site that is included on
the National Priorities List pursuant to section 105 of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9605).
(b) Report.--Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the Comptroller
General shall submit a report to the Congress identifying, for each
site referred to in subsection (a), how many residential dwelling
units, and how many dwelling units in public housing, are located
within one mile of such site.
SEC. 302. ENSURING PUBLIC HOUSING AGENCIES INSPECT EACH DWELLING UNIT
EACH YEAR.
The Secretary of Housing and Urban Development and the Comptroller
General of the United States shall, not later than 1 year after the
date of the enactment of this section, conduct a study and submit a
report to the Congress that identifies:
(1) how many inspections required to be conducted by the
Secretary of Housing and Urban Development in the 1-year period
are incomplete; and
(2) how many inspectors are needed to ensure that all
inspections required to be conducted by the Secretary of
Housing and Urban Development can be completed each year.
SEC. 303. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.
(a) Continuum of Care Program.--Section 428 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 1186b) is amended by adding at the
end the following:
``(f) Incentives for Reducing Homelesness.--
``(1) In general.--From the amounts made available to carry
out this subtitle for a fiscal year, the Secretary may use not
more than 10 percent of the amounts made available to carry out
this subtitle for incentives described in paragraph (2).
``(2) Incentives.--The Secretary may provide bonuses or
other incentives to a geographic area under this subtitle if,
during a fiscal year, the Secretary determines that an entity
receiving funds under this subtitle has demonstrably and
measurably improved housing outcomes for homeless individuals
in the geographic area.''.
(b) Emergency Solutions Grants Program.--Section 413 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11372a) is amended by
adding at the end the following:
``(c) Incentives for Reducing Homelesness.--
``(1) In general.--From the amounts made available to carry
out this subtitle for a fiscal year, the Secretary may use not
more than 10 percent of the amounts made available to carry out
this subtitle for incentives described in paragraph (2).
``(2) Incentives.--The Secretary may provide bonuses or
other incentives to a geographic area under this subtitle if,
during a fiscal year, the Secretary determines that an entity
receiving funds under this subtitle has demonstrably and
measurably improved housing outcomes for homeless individuals
in the geographic area.''.
SEC. 304. IMPROVING MOLD AND HEALTH STANDARDS.
(a) Definitions.--In this section:
(1) Indoor residential mold.--The term ``indoor residential
mold'' means any form of multicellular fungi in indoor
environments, including cladosporium, penicillium, alternaria,
aspergillus, fusarium, trichoderma, memnoniella, mucor,
stachybotrys chartarum, streptomyces, and epicoccumoften found
in water-damaged indoor environments and building materials.
(2) Residential mold inspection.--The term ``residential
mold inspection'' means an inspection, by a certified or
licensed mold inspector or other indoor environmental
professional, including through the Real Estate Assessment
Center, of real property that is designed to discover--
(A) indoor mold growth in residential properties;
(B) conditions that facilitate indoor residential
mold growth; or
(C) indicia of conditions that are likely to
facilitate indoor residential mold growth.
(3) Toxigenic mold.--The term ``toxigenic mold'' means any
indoor mold growth that may be capable of producing a toxin or
toxic compound, including mycotoxins and mVOCs, that can cause
pulmonary, respiratory, neurological, gastrointestinal, or
dermatological illnesses, or other major adverse health
impacts, as jointly determined by the Director of the National
Institutes of Health, the Secretary of Housing and Urban
Development, the Administrator of the Environmental Protection
Agency, and the Director of the Centers for Disease Control and
Prevention.
(b) Interagency Research on Health Impacts of Indoor Residential
Mold.--
(1) Research.--
(A) In general.--As soon as practicable after the
date of enactment of this Act, the Director of the
National Institute of Environmental Health Sciences at
the National Institutes of Health, in conjunction with
the Secretary of Housing and Urban Development, the
Director of the Centers for Disease Control and
Prevention, the Administrator of the Environmental
Protection Agency, the Secretary of Energy, the
Secretary of Health and Human Services, the President
of the National Academy of Sciences, and the Chair of
the board of directors of the National Institute of
Building Sciences shall jointly conduct a comprehensive
study of the health effects of indoor residential mold
growth, using the most up-to-date scientific peer-
reviewed medical literature.
(B) Contents.--The study conducted under
subparagraph (A) shall ascertain, among other things--
(i) detailed information about harmful or
toxigenic mold, as well as any toxin or toxic
compound such mold can produce;
(ii) the most accurate research-based
methods of detecting harmful or toxigenic mold;
(iii) potential dangers of prolonged or
chronic exposure to indoor residential mold
growth;
(iv) the hazards involved with inadequate
residential mold inspections and improper
indoor residential mold remediation;
(v) the estimated current public health
burden of new or exacerbated physical illness
resulting from exposure to indoor residential
mold, including its disproportionate impact on
vulnerable communities, including children and
seniors;
(vi) improved understanding of the
different health symptomology that can result
from exposure to mold in indoor residential
environments;
(vii) ongoing surveillance of the
prevalence of idiopathic pulmonary hemorrhage
(AIPH) in infants; and
(viii) longitudinal studies on the effects
of indoor old exposure in early childhood on
the development of asthma and other respiratory
illnesses.
(C) Availability.--Not later than the expiration of
the 3-year period beginning on the date of the
enactment of this Act, the results of the study
conducted under subparagraph (A) shall be submitted to
Congress and the President and made available to the
general public.
(c) Mapping.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Secretary of Housing and Urban
Development shall, using the previous two years of inspection
data, establish a geographic information system mapping tool
that identifies areas which are impacted by a known presence of
indoor residential mold.
(2) Required inclusions.--The Secretary shall include, as
part of the mapping tool--
(A) inspection documentation;
(B) management and occupancy reviews;
(C) transfers of budget authority for contracts
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f); and
(D) any additional information, as required by the
Secretary.
(3) Updates.--The Secretary shall update the mapping tool
with the latest inspection data not less often than once per
year.
(d) Public Information and Education Campaign.--
(1) Requirement.--The Administrator of the Environmental
Protection Agency, the Secretary of Housing and Urban
Development, and the heads of any other relevant Federal
agencies, as determined by such Administrator and Secretary,
shall jointly develop and carry out a public information and
education campaign regarding indoor air quality and related
issues that provides information required under this section on
a recurring and annual basis through public outreach. The
campaign shall commence within 1 year after the date of the
enactment of this Act.
(2) Topics.--The information and education campaign shall
include information on the dangers and prevention of indoor
residential moisture and mold, volatile organic compounds,
dust, smoking, pollution, indoor origins of smoke, including
cooking, and any other health risks, as determined by such
Administrator and Secretary.
(3) Indoor residential mold information.--The information
and education campaign shall include, at minimum, the following
information regarding indoor residential mold:
(A) The conditions that facilitate indoor
residential moisture and mold growth.
(B) Guidelines for inspecting indoor residential
mold growth.
(C) Guidelines for remediating indoor residential
mold growth.
(D) The dangers and health risks of exposure to
indoor residential mold growth.
(E) The importance of ventilation and methods to
prevent moisture accumulation in indoor residential
environments.
(F) Any other information as determined appropriate
by the heads of the agencies referred to in paragraph
(1).
(4) Modes of communication.--
(A) In general.--The public information and
education campaign shall provide education and
information through modes of communication that are
commonly utilized and able to be easily consumed by
relevant individuals or organizations, which shall
include communication through advertisements on public
transit in all 50 States and in territories and
possessions of the United States, and distribution of
the pamphlet developed pursuant to paragraph (9) as
required under such paragraph.
(B) Availability.--All education and information
that is part of the information and education campaign
shall be made publicly available on the websites of the
Environmental Protection Agency, the Department of
Housing and Urban Development, and any other applicable
Federal agencies.
(5) Targeted groups.--The public information and education
campaign shall be designed to reach tenants, tenant
organizations working directly with tenants in project-based
rental assistance and other types of federally-assisted
housing, resident groups, landlords, health professionals, the
general public, homeowners, prospective homeowners, the real
estate industry, the home construction and renovation
industries, the health, property and casualty, and life
insurance industries, technical and vocational schools and
colleges, and other academic institutions.
(6) Information specific to health professions.--The public
information and education campaign shall include information
about warning signs of mold and other indoor air exposure
pollutants and shall include education for health professions
on mold-related illness, including for health professions who
work with vulnerable populations and children in school or
daycare settings.
(7) Coordination.--In developing and carrying out the
public information and education campaign, the heads of the
agencies referred to in paragraph (1) may coordinate with the
Ad Council.
(8) Language.--All information provided under the public
information and education campaign--
(A) shall be provided in at least two languages, as
determined by the Secretary, based on the most common
languages spoken in the neighborhood, tribe,
municipality, State, or region, and may be provided in
additional languages based on the most common languages
spoken in the neighborhood, tribe, municipality, State,
or region, as determined by the Secretary; and
(B) shall be provided in language that is at a
sixth grade reading level and is easy to understand.
(9) Pamphlet.--
(A) Requirement.--The Secretary of Housing and
Urban Development, in consultation with the Director of
the National Institutes of Health, the Administrator of
the Environmental Protection Agency, and the heads of
any other agencies the Secretary considers appropriate,
shall develop, publish, and revise, not less frequently
than every 5 years, a pamphlet regarding indoor
residential mold hazards.
(B) Content.--The pamphlet required under this
subsection shall--
(i) contain information regarding the
health risks associated with exposure to indoor
residential mold growth;
(ii) provide information on the hazards of
indoor residential mold growth in federally-
assisted and federally-owned housing;
(iii) describe the risks of indoor
residential mold exposure for persons residing
in a dwelling with toxigenic mold;
(iv) provide information on approved
methods for evaluating and reducing indoor
residential mold growth and their effectiveness
in identifying, reducing, eliminating, or
preventing indoor residential mold growth;
(v) provide advice on how to obtain a list
of persons certified to inspect or remediate
indoor residential mold growth in the area in
which the pamphlet is to be used;
(vi) include a statement that a risk
assessment or inspection for indoor residential
mold growth is recommended prior to the
purchase, lease, or renovation of target
housing;
(vii) include a statement that certain
State and local laws impose additional
requirements related to indoor residential mold
growth in housing and provide a listing of
Federal, State, and local agencies in each
State, including address, telephone number, and
electronic mail address, if available, that can
provide information about applicable laws and
available governmental and private assistance
and financing;
(viii) provide information considered by
the Administrator of the Environmental
Protection Agency to be appropriate or
necessary to promote awareness of the hazards
posed by indoor residential mold;
(ix) include information on indoor air
quality safety generally, including best
practices when cooking, taking a shower or
bath, and smoking cessation;
(x) be publicly available on the websites
of the Department of Housing and Urban
Development, the Environmental Protection
Agency, and other applicable Federal agencies;
and
(xi) include any other information
considered by the Administrator of the
Environmental Protection Agency to be
appropriate or necessary.
(10) Authorization of appropriations.--There is authorized
to be appropriated such sums as may be necessary to carry out
this subsection.
(e) GAO Study on Health and Safety Concerns in Federally-Assisted
Housing.--Not later than the expiration of the 3-year period beginning
on the date of the enactment of this Act, the Comptroller General of
the United States shall submit a report to the Congress analyzing and
assessing the communication, as applicable, between public housing
agencies, landlords, and tenants over resolving problems with the
health, safety, or other issues of dwelling units that are federally
subsidized and inspected through subpart G of part 5 of title 24, Code
of Federal Regulations, landlord responsiveness regarding such issues,
opportunities for improvement in such communications, and how tenants
understand their rights and how they are responded to when issues
arise, including protocols for responding to tenant complaints and
tenant understanding of such processes. The report shall include
recommendations for how to improve such communications and the physical
quality of the housing stock for which such assistance is provided.
SEC. 305. IMPROVING PROTECTION FROM LEAD HAZARDS.
(a) Definitions.--In this section--
(1) the term ``covered housing'' means a dwelling unit
receiving project-based rental assistance or tenant-based
rental assistance under section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f); and
(2) the term ``Department'' means the Department of Housing
and Urban Development.
(b) Annual Risk Assessment and Report.--Not later than 1 year after
the date of enactment of this Act, and every year thereafter, the
Deputy Assistant Secretary for the Office of Multifamily Housing
Programs of the Department, in collaboration with the Office of Lead
Hazard Control and Healthy Homes of the Department, shall--
(1) conduct a risk assessment of covered housing to
identify properties with the greatest risk of exposing children
under the age of 6 years old to lead hazards, including lead-
based paint and lead service lines;
(2) develop an action plan relating to remediation,
control, and safeguards to address lead hazards, including
lead-based paint and lead-service lines, in covered housing
identified in the risk assessment conducted under paragraph
(1), with priority given to those properties with children
under the age of 6 years old; and
(3) submit to Congress a report on properties with covered
housing that have lead-based paint or lead service lines,
including the number of children under the age of 6 years old
living at these properties.
(c) Uniform Physical Condition Standard Inspections.--In conducting
uniform physical condition inspections in accordance with part 5 of
title 24, Code of Federal Regulations, or any successor regulation, the
Secretary shall include lead-based paint and lead service lines in the
graded scoring as an exigent health and safety deficiency to ensure
that--
(1) lead-based paint and lead service lines are tracked at
each applicable property; and
(2) the owners of those properties are held accountable for
remediating deficiencies.
SEC. 306. IMPROVING HOUSING FOR THE ELDERLY AND DISABLED.
The Comptroller General of the United States shall, not later than
1 year after the date of the enactment of this section, conduct a study
that identifies options to remove barriers and improve housing for
persons who are elderly or disabled, including any potential impacts of
providing capital advances for--
(1) the program for supportive housing for the elderly
under section 202 of the Housing Act of 1959; and
(2) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act.
TITLE IV--GOOD GOVERNANCE
SEC. 401. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING
REGULATORS.
(a) Testimony by Secretary.--Section 7 of the Department of Housing
and Urban Development Act (42 U.S.C. 3535) is amended by adding at the
end the following new subsection:
``(u) Annual Testimony.--The Secretary shall appear before the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate at an
annual hearing and present testimony regarding the operations of the
Department during the preceding year, including regarding the following
topics:
``(1) The physical condition of all public housing and
other housing assisted by the Department.
``(2) The financial health of the mortgage insurance funds
of the FHA.
``(3) Oversight by the Department of grantees and sub-
grantees engaging in waste, fraud, and abuse.
``(4) Ongoing activities of the Department, as
appropriate.''.
(b) Testimony by Inspector General.--Not later than October 1 of
each year, the Inspector General of the Department of Housing and Urban
Development shall appear before the Committee on Financial Services of
the House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate and present testimony on the Office of
Inspector General's--
(1) efforts to detect and prevent fraud, waste, and abuse;
(2) ability to conduct and supervise audits,
investigations, and reviews;
(3) actions to identify opportunities for the programs of
the Department of Housing and Urban Development to progress and
succeed; and
(4) ongoing activities regarding any such additional work,
as appropriate.
SEC. 402. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FOR GOVERNMENT
GUARANTEED OR INSURED MORTGAGE PROGRAMS.
On an annual basis, the following individuals shall testify before
the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives on
mortgage loans guaranteed or insured by the Federal Government:
(1) The President of the Government National Mortgage
Association.
(2) The Federal Housing Commissioner.
(3) The Administrator of the Rural Housing Service.
SEC. 403. TESTIMONY AND REPORT FROM UNITED STATES INTERAGENCY COUNCIL
ON HOMELESSNESS.
Section 203(a) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11313(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``Homeless Emergency Assistance and
Rapid Transition to Housing Act of 2009'' and inserting
``Revitalizing America's Housing Act''; and
(B) by striking ``update such plan annually'' and
inserting the following: ``submit to the President and
Congress a report every year thereafter that includes--
``(A) the status of completion of the plan;
``(B) any modifications that were made to the plan
and the reasons for those modifications; and
``(C) an estimate of when homelessness will be
ended;'';
(2) by redesignating paragraphs (10) through (13) as
paragraphs (11) through (14), respectively;
(3) by redesignating the second paragraph (9) (relating to
collecting and disseminating information) as paragraph (10);
(4) in paragraph (13), as so redesignated, by striking
``and'' at the end;
(5) in paragraph (14), as so redesignated, by striking the
period at the end and inserting ``; and''; and
(6) by adding at the end the following:
``(15) testify annually before Congress.''.
SEC. 404. REPORT DETAILING NYCHA COMPLIANCE WITH AND HUD OVERSIGHT OF
2019 AGREEMENT.
(a) Congressional Findings.--The Congress finds that--
(1) the New York City Housing Authority (in this section
referred to as the ``Authority'') is the largest housing
authority in the United States, providing housing for over
520,000 residents in over 177,000 apartments in the City of New
York (in this section referred to as the ``City'');
(2) the Authority is a public housing agency that receives
Federal financial assistance from the Department of Housing and
Urban Development (in this section referred to as the
``Department'') to administer its public housing program;
(3) the Authority is required to, among other things,
provide decent, safe, and sanitary housing for the public
housing residents of the City and comply with Federal law
protecting children from the hazards of lead poisoning;
(4) on June 11, 2018, the United States filed a complaint
in the United States District Court for the Southern District
of New York (in this section referred to as the ``Complaint'');
which set forth the findings of the United States
investigation, alleging, among other things, that the Authority
had--
(A) routinely failed to comply with lead-based
paint safety regulations;
(B) failed to provide decent, safe, and sanitary
housing, including with respect to the provision of
heat and elevators and the control and treatment of
mold and pests; and
(C) repeatedly misled the Department through false
statements and deceptive practices;
(5) in a Consent Decree executed June 11, 2018, the
Authority made admissions regarding, among other things,
deficiencies in physical conditions with respect to lead, mold,
heating, elevators and pests and made untrue statements to the
Department regarding the conditions of the Authority's
properties and practices with regard to Public Housing
Assessment System inspections;
(6) based on the Authority's misconduct as detailed in the
Complaint, on January 31, 2019, the Secretary of Housing and
Urban Development (in this section referred to as the
``Secretary'') declared that the Authority is in substantial
default within the meaning of section 6(j)(3)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437d(j)(3)(A));
(7) the Department did not take possession of the Authority
or appoint a receiver, but instead entered into a voluntary
agreement between the Authority, the Department, and the City
on January 31, 2019, under which the Authority agreed to remedy
noted deficiencies subject to the oversight of a Monitor
appointed by the City;
(8) as of the date of the enactment of this Act, the
Authority has still fully not complied with the agreement,
including the remedying of deficiencies or compliance with its
obligations under Federal law;
(9) the Department and the United States Attorney's Office
for the Southern District of New York have sought to extend the
term of a Monitor over the Authority for an additional five
years beginning in 2024;
(10) the residents of housing provided by the Authority
should not be required to wait five additional years for the
Authority to provide decent, safe, and sanitary housing
conditions, as is the Authority's most basic and necessary
function under the law; and
(11) the Congress believes that it must provide additional
oversight over the Authority, the Department, the City, and the
Monitor in order to compel the Authority to fix the appalling
conditions and other issues that lead to a declaration of
substantial default under section 6(j)(3)(A) of the United
States Housing Act of 1937.
(b) Investigation and Report to Congress.--
(1) Investigation.--The Inspector General of the Department
of Housing and Urban Development shall conduct an investigation
of the Authority, which shall include at a minimum--
(A) determining the status of the New York City
Housing Authority's compliance with the agreement
entered into between the Authority, the Department, and
the City on January 31, 2019, including specific areas
of deficiency and progress towards compliance;
(B) conducting a review of actions taken by the
Monitor over the Authority pursuant to such Agreement,
including any gaps in oversight by the Monitor;
(C) conducting a survey of the physical conditions
of housing provided by the Authority for the City's
residents;
(D) conducting an examination of any waste, fraud,
abuse and violations of Federal law committed by
employees or contractors of the Authority; and
(E) identifying other priority issues and areas, as
deemed necessary and appropriate by the Inspector
General.
(2) Report.--Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act, the
Inspector General shall provide to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report
setting forth the findings of its investigation, a summary of
actions the Department may take to compel the Authority to
remedy deficiencies, and any other recommendations of the
Inspector General.
SEC. 405. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.
(a) Monthly Reporting on Mutual Mortgage Insurance Fund Capital
Ratio.--Section 202(a) of the National Housing Act (12 U.S.C. 1708(a))
is amended by adding at the end the following:
``(8) Other required reporting.--The Secretary shall--
``(A) submit to Congress monthly reports on the
capital ratio required under section 205(f)(2); and
``(B) notify Congress as soon as practicable after
the Fund falls below the capital ratio required under
section 205(f)(2).''.
(b) First-Time Homebuyers.--
(1) Definitions.--In this section--
(A) the terms ``consumer report'' has the meaning
given the term in section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a); and
(B) the term ``Federally backed mortgage loan'' has
the meaning given the term in section 4022 of the CARES
Act (15 U.S.C. 9056).
(2) Definition of first-time homebuyer.--For purposes of
qualifying for a Federally backed mortgage loan for which a
consumer report is furnished to a creditor by a consumer
reporting agency described in section 603(p) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(p)), a first-time homebuyer
shall be defined as a borrower whose consumer report does not
indicate that the borrower has or had a loan with a consumer
purpose that is secured by a 1- to 4-unit residential real
property.
(c) GAO Study on Sustainable Homeownership.--Not later than 180
days after the date of enactment of this Act, the Comptroller General
of the United States shall conduct a study and submit to Congress a
report on--
(1) the value for the Federal Housing Administration of
defining what is sustainable homeownership in way that
considers borrower default, refinancing to a non-insured
mortgage product, paying off a mortgage loan and transitioning
back to renting, and other factors that demonstrate whether
insurance provided under title II of the National Housing Act
(12 U.S.C. 1707 et seq.) has successfully served a borrower,
including for first-time homebuyers as defined in subsection
(b)(2); and
(2) the feasibility of the Federal Housing Administration
developing a scorecard using the metrics described in paragraph
(1) to measure borrower performance and reporting the scorecard
data to Congress.
SEC. 406. COMBATTING SQUATTING.
(a) Congressional Findings.--The Congress finds that--
(1) unlawfully entering a property without the permission
of the property owner and residing in that property for
consecutive days without the permission of the property owner
and without the payment of rent or a rental contract agreed to
by the property owner can be defined as ``squatting'' and
should not confer any special status as a tenant or lawful
occupant of the property;
(2) local law enforcement should take actions to
expeditiously remove from a property any persons or persons
engaging in squatting and should prosecute such actions as
prescribed by local law;
(3) Federal Government benefits, including loans, loan
guarantees, subsidies, and tax credits, should not be used to
reinforce, condone, or otherwise incentivize squatting; and
(4) real estate collateral securing a government or
government-sponsored enterprise loan, or subject to a loan
guarantee, mortgage insurance or other Federal mortgage support
program must be protected from persons engaging in squatting as
it creates undue risks for the value of such property.
(b) Prohibition on CDBG Funding.--Section 104 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304) is amended by adding
at the end the following:
``(n) Withholding of Funds for Jurisdictions That Permit
Squatting.--
``(1) Prohibition.--The Secretary shall, by regulation--
``(A) prohibit the allocation and provision of
funds under this title for any unit of general local
government that permits squatting or confers special
status for rights of tenancy for a person or persons
engaging in the practice of squatting; and
``(B) provide for--
``(i) units of general local government to
take corrective actions to remedy the
applicability of the prohibition under
subparagraph (A) to such unit of general local
government; and
``(ii) certification by the Secretary upon
a determination that such actions taken by a
unit of general local government are sufficient
for the unit of general local government to
receive funds under this title.
``(2) Public notice.--The Secretary shall make publicly
available for each fiscal year a list of all units of general
local government that are prohibited by paragraph (1) from
receiving funds under this title and the justification for
inclusion in the list of each such unit of general local
government.
``(3) Squatting.--For purposes of this subsection, the term
`squatting' means the practice of entering a property without
the permission of the property owner and residing in that
property for 14 or more consecutive days without the permission
of the property owner and without the payment of rent or a
rental contract agreed to by the property owner.''.
(c) Prohibition on Federal Mortgage Support.--
(1) Prohibition.--No Federal support may be provided for
any loan that is secured by a first or subordinate lien on
residential real property (including individual units of
condominiums and cooperatives) and designed principally for the
occupancy of from 1- to 4-families if the property securing
such loan is located in a unit of general local government that
is, at such time, prohibited from receiving funds under title I
of the Housing and Community Development Act of 1974 by section
104(n)(1)(A) of such Act.
(2) Regulations.--The heads of the covered agencies shall
jointly develop, by regulations issued not later than 90 days
after the date of the enactment of this Act, guidelines for
such covered agencies to carry out this subsection.
(3) Definitions.--For purposes of this subsection, the
following definitions shall apply:
(A) Covered agency.--The term ``covered agency''
means--
(i) the Department of Housing and Urban
Development;
(ii) the Federal Housing Finance Agency;
(iii) the Department of Veterans Affairs;
and
(iv) the Department of Agriculture.
(B) Federal support.--The term ``Federal support''
means, with respect to a loan--
(i) insurance of the loan by the Federal
Housing Administration under title II of the
National Housing Act (12 U.S.C. 1707 et seq.);
(ii) insurance of the loan under section
255 of the National Housing Act (12 U.S.C.
1715z-20);
(iii) guarantee of the loan under section
184 or 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a,
1715z-13b);
(iv) guarantee or insurance of the loan by
the Department of Veterans Affairs;
(v) guarantee or insurance of the loan by
the Department of Agriculture;
(vi) making of the loan by the Department
of Agriculture; or
(vii) purchase or securitization of the
loan by the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage
Association.
(C) Squatting.--The term ``squatting'' means the
practice of entering a property without the permission
of the property owner and residing in that property for
14 or more consecutive days without the permission of
the property owner and without the payment of rent or a
rental contract agreed to by the property owner.
SEC. 407. REALLOCATION OF VOUCHER FUNDING.
Section 8(o) of the United States Housing Act of 1937 is amended by
adding at the end the following:
``(24) Reallocation of amounts.--The Secretary shall, at
the end of each fiscal year--
``(A) recapture from each public housing agency any
amounts provided to such public housing agency for
tenant-based assistance under paragraph (1)(A) that
such public housing agency did not obligate during such
fiscal year; and
``(B) provide amounts recaptured under subparagrah
(A) to public housing agencies that used all of the
amounts provided to them for tenant-based assistance
under paragraph (1)(A).''.
TITLE V--REGULATORY FLEXIBILITY
SEC. 501. AUTHORIZATION OF MOVING TO WORK PROGRAM.
(a) Program Reforms.--Section 204 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note) is amended--
(1) in the section heading, by striking ``demonstration''
and inserting ``program'';
(2) by striking subsection (a) and inserting the following:
``(a) Purposes.--The purposes of the program under this section are
as follows:
``(1) Economic independence.--To develop measures to
promote economic independence for families with children whose
head of household is working, seeking work, or preparing for
work, for able-bodied individuals, and for persons with
disabilities who are able to work on a limited basis, to obtain
employment and become economically independent, by
participating in job training, educational programs, or other
supportive services and programs that assist in meeting such
goal.
``(2) Flexibility and cost-effectiveness.--To give public
housing agencies and the Secretary of Housing and Urban
Development the flexibility to design and implement various
approaches for providing and administering housing assistance
that reduce cost and achieve greater cost effectiveness in
Federal expenditures.
``(3) Housing choice.--To increase housing choices for low-
income families.'';
(3) in subsection (b)--
(A) by striking ``(b) Program Authority.--The
Secretary'' and inserting the following:
``(b) Program Authority.--
``(1) In general.--The Secretary'';
(B) in the first sentence, by striking ``conduct a
demonstration program'' and all that follows through
``Indian housing program and'' and inserting ``carry
out a program under this section under which public
housing agencies administering the public housing
program or'';
(C) by inserting after the first sentence the
following: ``There shall be no limitation on the number
of public housing agencies that may participate in the
program under this section.'';
(D) by striking ``The Secretary shall'' and all
that follows through ``demonstration.'' and inserting
the following:
``(2) Identification of replicable models.--The Secretary
shall provide training and technical assistance under the
program and conduct detailed evaluations of various agencies to
identify replicable program models promoting the purposes of
the program.'';
(E) by striking ``Under the demonstration'' and
inserting the following:
``(3) Combination of assistance.--Under the program under
this section''; and
(F) by striking ``operating assistance provided
under section 9 of the United States Housing Act of
1937, modernization assistance provided under section
14'' and inserting ``amounts provided to the agency
from the Operating Fund under section 9(e) of the
United States Housing Act of 1937, amounts provided to
the agency from the Capital Fund under section 9(d)'';
(4) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``demonstration'' and inserting ``program
under this section'';
(B) in paragraph (1), by striking ``9, and 14'' and
inserting ``9(d), and 9(e)'';
(C) in paragraph (3)--
(i) in subparagraph (A), by striking
``demonstration'';
(ii) in subparagraph (B)--
(I) by striking ``self-
sufficiency'' and inserting ``economic
independence''; and
(II) by striking ``purpose of this
demonstration'' and inserting ``purpose
of the program under subsection
(a)(1)'';
(iii) in subparagraph (D), by striking
``demonstration'' and inserting ``program under
this section;'';
(iv) in subparagraph (E), by striking
``demonstration program'' and inserting
``program under this section'';
(v) by redesignating subparagraphs (A),
(B), (C), (D), and (E) as subparagraphs (B),
(C), (D), (G), and (H), respectively;
(vi) by inserting before subparagraph (B),
as so redesignated, the following:
``(A) actions to be taken under the proposed
program to achieve the purposes of the program under
paragraphs (1), (2), and (3) of subsection (a);''; and
(vii) by inserting after subparagraph (D),
as so redesignated, the following:
``(E) hardship exceptions consistent with the
purposes under subsection (a) under which tenants may
be temporarily exempted from compliance with the
program operated by the agency in the event of
extenuating circumstances preventing such compliance
and a process that provides tenants with recourse to a
speedy determination regarding such an exception and
makes available the contents and results of such a
determination available to the public and the board of
directors or other governing body on request of the
tenant concerned or the director or other head official
of the agency;
``(F) providing assisted families and participants
in the program operated by the agency with an informal
administrative hearing or grievance process, prior to
any eviction or termination of assistance, which
process shall make the content and determination of the
hearing available to the public and the board of
directors or other governing body on request of the
tenant concerned or the director or other head official
of the agency;''; and
(D) in paragraph (4), by striking ``demonstration''
and inserting ``proposed program'';
(5) in subsection (d)--
(A) by striking ``(d) Selection.--In selecting
among applications, the Secretary shall take into
account the'' and inserting the following:
``(d) Applications for Participation.--
``(1) Submission; standards for participation.--The
Secretary shall provide for public housing agencies to submit
applications for participation in the program under this
section and shall establish, and make public, standards and
requirements for participation that further the purposes of
this program set forth in subsection (a), which shall--
``(A) provide that all public housing agencies not
designated as troubled pursuant to part 902 or subpart
B of part 985, Code of Federal Regulations, at any time
during the most recent 2 fiscal years are invited to
submit applications for consideration;
``(B) provide that participation of a public
housing agency, upon approval, shall be for a period
not shorter than 10 years;
``(C) include a common set of budget metrics for
use under the program that allow for comparison of the
performance of different public housing agencies under
the program;
``(D) require that each public housing agency
include in its application--
``(i) a list of innovative proposals to be
carried out under the program that are designed
to reduce the cost of, and increase the cost-
efficiency of, housing provided in connection
with the program and metrics to assess the
progress of the agency toward such goals; and
``(ii) a list of innovative manners in
which the public housing agency will use the
authorities under the program to assist
families, goals regarding such activities to
accomplish on an annual basis, and metrics to
assess the progress of the agency toward such
goals; and
``(E) include a plan for using, to the greatest
extent feasible, electronic data-matching for income
verification services.
``(2) Determination and notification.--
``(A) Review and determination.--Upon receipt of an
application for participation in the program under this
section, the Secretary shall provide for review such
application by a selection panel comprised of Federal
officials and employees and established by the
Secretary for such purpose. Based on such review, such
selection panel shall make a determination of whether
to approve such agency for participation in the program
under this section, based on the criteria under
paragraph (4).
``(B) Notification.--Upon making a determination
pursuant to subparagraph (A), the selection panel shall
notify the public housing agency, the Secretary, and
the governments for any counties and municipalities in
which the jurisdiction of the public housing agency is
located of such determination. In the case of
disapproval of an application, such notice shall
include a statement specifying the reasons for such
disapproval.
``(3) Transition.--
``(A) Numerical limitation.--
``(i) In general.--The Secretary shall
review and process such applications as to
enable the transition of not less than 25
public housing agencies per year to the program
under this section (subject to approvable
applications), until such time as there are not
25 public housing agencies whose applications
merit approval.
``(ii) Reserved spots for small and rural
phas.--Of the applications of public housing
agencies approved in each year pursuant to
clause (i), not less than 10 shall be
applications of public housing agencies that
administer, in the aggregate, fewer than 6,000
vouchers for rental assistance under section 8
of the United States Housing Act of 1937 (42
U.S.C. 1437f) and public housing dwelling
units, except that if for any year the
Secretary receives fewer than 10 applications
by public housing agencies described in this
clause that merit approval, the requirement
under this clause shall apply for such year
only to the extent of the number of such
approvable applications received.
``(iii) Treatment of new mtw agencies.--Any
agency that is newly transitioned under this
subparagraph to participation in the program as
in effect pursuant to the amendments made by
this Act shall count toward fulfillment of the
numerical limitation in clause (i),
notwithstanding the authority under section 239
of the Transportation, Housing and Urban
Development, and Related Agencies
Appropriations Act, 2016 (division L of Public
Law 114-113) or any other provision of law
other than this section authorizing
participation of new agencies.
``(B) Contract revisions.--The Secretary shall,
from time to time and in consultation with public
housing agencies, amend contracts for participation by
agencies in the program under this section as may be
necessary, based on experiences of agencies that have
participated in the program, to correct mistakes and
better achieve the goals of this program set forth in
subsection (a).
``(C) Renewal of certification.--
``(i) In general.--The Secretary shall
provide that upon expiration of a contract for
participation by a public housing agency in the
program under this section, to continue
participating in the program the agency shall
be required to recertify with the Secretary for
such renewed participation. The standards and
requirements applicable to applications for
initial participation in the program shall also
apply to applications for renewed participation
in the program.
``(ii) Treatment of numerical limitation.--
An agency approved for continued participation
in the program pursuant to recertification
under this subparagraph shall not count toward
fulfillment of the numerical limitation in
subparagraph (A)(i).
``(4) Criteria.--The Secretary shall establish criteria for
approval of applications of public housing agencies for
participation in the program under this section, which shall
provide for approval of applications that are reasonably
designed to carry out the purposes of the program under
subsection (a). Such criteria shall take into consideration the
capacity and'';
(B) by striking ``each'' and inserting ``the'';
(C) by striking ``a program under the
demonstration'' and inserting ``the proposed program in
the application''; and
(D) by striking ``an agency'' and inserting ``the
agency'';
(6) in subsection (e)--
(A) in paragraph (1), by striking ``this
demonstration'' and inserting ``the program under this
section''; and
(B) in paragraph (2), by striking ``demonstration''
and inserting ``program under this section'';
(7) in subsection (f), by striking ``section 9, or pursuant
to section 14 by a public housing agency participating in the
demonstration under this part'' and inserting ``of the United
States Housing Act of 1937, or provided from the Operating Fund
under section 9(e) or from the Capital Fund under section 9(d)
of such Act, by a public housing agency participating in the
program under this section'';
(8) in subsection (g)--
(A) in paragraph (1), by inserting ``, including
performance in achieving each of the purposes of the
program specified in subsection (a)'';
(B) in paragraph (2)--
(i) in the first sentence--
(I) by inserting ``, and including
such content, as shall be'' before
``specified by the Secretary''; and
(II) by inserting ``, but not less
often than annually'' before the period
at the end; and
(ii) by striking subparagraph (C) and
inserting the following:
``(C) describe and analyze the effects of the
program of the agency and the assisted activities under
such program in addressing and achieving the objectives
of the program under this section and each of the
purposes specified in subsection (a), including the
effects of the program on--
``(i) the number of new families the agency
has been able to assist from the waiting lists
for housing assistance that is administered by
the agency, including vouchers for rental
assistance under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o))
and dwelling units in public housing and in
housing assisted with project-based section 8
assistance, as a result of the flexibility of
funds and achievement of economic independence;
``(ii) the cost and annual change, per
family participating in the program, of
providing housing assistance referred to in
clause (i) that is administered by the agency;
``(iii) any cost savings and additional
housing resulting from the program;
``(iv) the household incomes, and changes
in such incomes, of members of families
participating in the program who are not exempt
from work requirements; and
``(v) such other factors as the Secretary
considers appropriate.'';
(C) by redesignating paragraphs (3) and (4) as
paragraphs (5) and (6); and
(D) by inserting after paragraph (2) the following
new paragraphs:
``(3) Annual budget plan.--
``(A) Requirement.--Each agency shall submit
annually to the Secretary, together with the report
under paragraph (2), a budget plan for the program of
the agency for the upcoming year and shall make such
budget plan publicly available.
``(B) Form and metrics.--Each annual budget plan
shall be set forth in a standard form, prescribed by
the Secretary and shall utilize a common budget metric
that allows for comparison of the budget plans of all
public housing agencies participating in the program.
``(C) Content.--Each annual budget plan shall
include such content as the Secretary shall specify,
which shall include--
``(i) a description and explanation of all
new rules and policy changes adopted by the
agency in accordance with this section and the
program under this section and, with respect to
such new rules and policy changes--
``(I) a description of the effect
such rules and changes will have on the
operation of the agency as compared to
the preceding year and as compared to
the operations of the agency other than
under the program under this section;
``(II) a description of the extent
to which such rules and changes helped
to achieve the annual goals identified
in the public housing agency's
application pursuant to subsection
(d)(1)(E) and, in the case of any such
goals not achieved, a description of
the extent to which such goals were not
achieved and the reasons for such
failure; and
``(III) whether the adoption of
such new rules and policy changes
required an adjustment in the annual
goals identified in the public housing
agency's application pursuant to
subsection (d)(1);
``(ii) a plan for all capital assets and
anticipated construction and rehabilitation
activities of the public housing agency in the
upcoming year and a description of whether and
how such activities are authorized and assisted
under the program under this section; and
``(iii) assurances satisfactory to the
Secretary that such plan will conform with all
applicable provisions of the Civil Rights Act
of 1964 (42 U.S.C. 2000d et seq.), the Fair
Housing Act (42 U.S.C. 3601 et seq.), the
Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.), and the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.).
``(4) Public and resident participation.--
``(A) Notification of residents.--Each public
housing agency shall annually hold a meeting to notify
all assisted families participating in the program of
the public housing agency of the contents of the report
under paragraph (2) for such year and budget plan under
paragraph (3) for such year and impacts on such
assisted families. Any public housing agency that
assists, in the aggregate, more than 50,000 families or
assists families in multiple counties shall hold as
many meetings as necessary to provide each assisted
family a good-faith opportunity to attend such a
meeting.
``(B) Public comment.--Each annual report under
paragraph (2) and annual plan under paragraph (3)
shall--
``(i) be made available for inspection and
public comment 30 days before the meeting
required by subparagraph (A) regarding such
plan or report; and
``(ii) be approved in a public meeting of
the board of directors or other governing body
of the public housing agency before submission
to the Secretary.
``(C) Public availability.--Each annual report
under paragraph (2) and annual plan under paragraph (3)
shall, upon submission to the Secretary, be made
publicly available and shall include all comments
provided pursuant to subparagraph (B).'';
(9) in subsection (h)--
(A) in paragraph (1), by striking ``demonstration''
and inserting ``program under this section''; and
(B) by striking paragraph (2) and inserting the
following:
``(2) Review.--The Secretary shall annually review the
activities of each public housing agency participating in the
program under this section and, based on such review and the
information submitted by the agency pursuant to subsection (g),
determine--
``(A) the impact and effectiveness of the public
housing agency's program and activities in achieving
each of the purposes of the program specified in
subsection (a), including an assessment of such impact
and effectiveness using the common set of budget
metrics established pursuant to subsection (d)(1)(D);
``(B) the progress of the public housing agency
toward meeting the goals identified in the public
housing agency's application pursuant to subsection
(d)(1)(E), using the metrics identified in the public
housing agency's application pursuant to such
subsection; and
``(C) the extent of compliance by the public
housing agency with the requirements of the program
under this section and, in determining such extent of
compliance, shall take into consideration the unique
characteristics of the public housing agency.
``(3) Verification of accuracy.--In assessing information
submitted by public housing agencies pursuant to subsection (g)
and in reviewing such information and making determinations
pursuant to paragraph (2) of this subsection, the Secretary
shall carry out control activities and procedures designed to
verify the accuracy of such information, which shall include
auditing a representative sample of such information using
standard statistical methods.
``(4) Continued participation.--The Secretary shall not
terminate the participation of any public housing agency in the
program under this section unless the Secretary finds that the
agency--
``(A) is in material default of the conditions and
obligations under the agreement entered into between
the agency and the Secretary providing for such
participation;
``(B) as demonstrated in its reports under
subsection (g)(2) and its annual budget plans under
subsection (g)(3), has persistently failed to meet the
goals identified in its application, and the reasons or
circumstances specified in the public housing agency's
reports and plans for such failure are not sufficient
to justify the continued failure;
``(C) has misused or misappropriated funds;
``(D) has failed to make a good faith effort to
carry out the purposes of the program specified in
subsection (a); or
``(E) has failed to cure a material deficiency in
performance after notice and an opportunity to correct
the deficiency.
``(5) Corrective action program.--The Secretary shall carry
out a program--
``(A) to identify public housing agencies
participating in the program under this section that
are at risk of termination of such participation
pursuant to paragraph (6);
``(B) to consult with such public housing agencies
regarding actions that may be taken to avoid such
termination;
``(C) to establish goals and timelines for such
corrective actions; and
``(D) to provide appropriate technical assistance
designed to facilitate such actions and avoid such
termination.
``(6) Termination of participation.--Any public housing
agency whose participation in the program under this section is
terminated shall be subject to the provisions of the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) and all
other provisions of law applicable to public housing agencies
not participating in the program, except that the Secretary
shall provide a transition period, that begins upon such
termination and is not shorter than 18 months, for such public
housing agencies to come into compliance with such laws.
``(7) Reports to congress.--Not later than the expiration
of the 5-year period beginning on the date of the enactment of
this Act, and not later than the expiration of each successive
5-year period thereafter, the Secretary shall submit a report
to the Congress regarding the program under this section and
the results of the reviews conducted under paragraph (2), which
shall--
``(A) evaluate the programs carried out by public
housing agencies participating in the program,
including with respect to each of the purposes
specified in subsection (a); and
``(B) include findings and recommendations for
appropriate legislative changes to the program.
``(8) GAO reviews and reports.--Not later than 180 days
after the date of enactment of this Act, and not less
frequently than every 8 years thereafter, the Comptroller
General of the United States shall--
``(A) conduct and complete a review of the program
under this section, which shall include examination and
analysis of the implementation of the program and
identification of any shortcomings and any means for
improving the program; and
``(B) submit to the Congress a report regarding the
review, which shall set forth a detailed description of
such implementation, any shortcomings of the program
identified, and recommendations for improving the
program.'';
(10) in subsection (i)--
(A) in the matter preceding paragraph (1), by
striking ``section 14 of the United States Housing Act
of 1937 for fiscal years 1996, 1997, and 1998'' and
inserting ``the Capital Fund under section 9(d) of the
United States Housing Act of 1937 in each fiscal
year''; and
(B) in paragraph (1)(B), by striking ``up to 10'';
and
(11) by striking subsection (j).
(b) Treatment of Participating Agencies.--
(1) Continuation of participation.--This section and the
amendments made by this section shall not affect the status of
any public housing agency that, as of the date of the enactment
of this Act, is participating in the Moving to Work Program
under section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note), as such a
participating agency.
(2) Election.--Any public housing agency referred to in
paragraph (1) may elect--
(A) to continue participation in the Program under
section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note) under
the terms of the agreement entered into between the
agency and the Secretary providing for such
participation until the date of the expiration of such
agreement; or
(B) at any time before date of the expiration of
such agreement, to transition to participation under
the program under such section 204, as amended by this
Act.
(3) Conversion to reformed program.--
(A) In general.--Except as provided in subparagraph
(B) of this paragraph, any public housing agency that
elects pursuant to paragraph (2)(A) of this subsection
to continue participation in the Program under section
204 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note) shall,
upon the expiration of the agreement referred to in
such paragraph, be considered to have been approved for
participation in the Program under such section 204, as
amended by this Act, and the Secretary of Housing and
Urban Development shall provide for the transition of
the agency to participation under the Program under
such section as so amended.
(B) Inapplicability.--Subparagraph (A) shall not
apply to any public housing agency that is determined
by the Secretary to be in material default, upon the
expiration of the agreement referred to in paragraph
(2)(A), of the conditions and obligations under such
agreement.
(4) Inapplicability of numerical limitation.--Any public
housing agency transitioned pursuant to paragraph (2)(B) or
(3)(A) of this subsection to participation under the program
under section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note), as amended by
this section, shall not count toward fulfillment of the
numerical limitation under section 204(d)(3)(A) of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996
(42 U.S.C. 1437f note), as added by the amendment made by this
section.
SEC. 502. RESCISSION OF PUBLIC AND INDIAN HOUSING NOTICE 2021-18.
The Public and Indian Housing Notice 2021-18 of the Department of
Housing and Urban Development is hereby rescinded.
TITLE VI--IMPROVING FINANCIAL LITERACY REGARDING HOUSING
SEC. 601. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
(a) In General.--Section 106(a)(4) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(a)(4)) is amended--
(1) in subparagraph (B)--
(A) by striking ``The Secretary'' and inserting the
following:
``(i) In general.--The Secretary''; and
(B) by adding at the end the following:
``(ii) Requirement.--The Secretary shall
require each organization receiving assistance
under this paragraph to employ individuals
providing housing counseling who--
``(I) are certified to understand
sustainable homeownership; and
``(II) pass required examinations
that determine the ability of the
individual to counsel borrowers on
responsible homeownership.
``(iii) Suspension of certification.--If an
individual employed by an organization that
receives assistance under this paragraph
provides counseling services to borrowers who,
after receiving those services, have default
rates that exceed the average default rates for
borrowers counseled by individuals in the area
served by the organization, the Secretary--
``(I) shall suspend the
certification from the individual; and
``(II) may deny future assistance
under this paragraph to that
organization.
``(iv) Prohibition on lobbying
activities.--An organization that applies for
or receives assistance under this paragraph
shall not engage in political activities,
advocacy, or lobbying, whether directly or
through other parties.''; and
(2) by adding at the end the following:
``(F) Set asides.--The Secretary shall set aside 40
percent of amounts authorized to carry out this
paragraph for organizations that provide rental
counseling or pre-foreclosure counseling.
``(G) Geographic diversity.--In making grants under
this paragraph, the Secretary shall ensure that the
recipients are geographically diverse and include
organizations that serve urban and rural areas.''.
(b) Requiring Prepurchase and Foreclosure Mitigation Counseling.--
(1) Covered mortgage loan defined.--In this subsection, the
term ``covered mortgage loan'' means any loan which is secured
by a first or subordinate lien on residential real property
(including individual units of condominiums and cooperatives)
designed principally for the occupancy of from 1- to 4-families
that is--
(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
(B) insured under section 255 of the National
Housing Act (12 U.S.C. 1715z-20);
(C) guaranteed under section 184 or 184A of the
Housing and Community Development 3 Act of 1992 (12
U.S.C. 1715z-13a, 1715z-4 13b);
(D) guaranteed or insured by the Department of
Agriculture; or
(E) made by the Department of Agriculture.
(2) Requirement for purchasers.--Before purchasing
residential real property that secures a covered mortgage loan,
the purchaser shall participate in prepurchase housing
counseling.
(3) Requirement for borrowers.--A borrower with respect to
a covered mortgage loan who is 30 days or more delinquent on
payments for the covered mortgage loan shall participate in
foreclosure mitigation counseling.
<all>