1.This Act may be cited as
the Hurricane Katrina Recovery
Homesteading Act of 2005
.
2.The purposes of this Act are—
(1)to allow
low-income families who were displaced from their residences in a designated
disaster area as a result of Hurricane Katrina to return to their States,
areas, or communities by providing homeownership opportunities;
(2)to assist in the
rebuilding of neighborhoods in Alabama, Louisiana, and Mississippi that were
damaged by Hurricane Katrina, through strategies that promote homeownership
opportunities;
(3)to maximize the
use of existing Federal resources to assist State and local governments in
providing homesteading and other homeownership opportunities in a designated
disaster area; and
(4)to promote the
cooperation at all levels of government and the private sector, including
nonprofit organizations, in providing homesteading opportunities and other
homeownership opportunities that will facilitate the rebuilding of
neighborhoods in a designated disaster area.
3.As used in this Act, the following
definitions shall apply:
(1)Designated
disaster areasThe term designated disaster area
means any area in the States of Alabama, Louisiana, and Mississippi that is the
subject of a disaster declaration by the President under title IV of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) in response to Hurricane Katrina.
(2)The
term family includes a family, as such term is defined in section
3 of the United States Housing Act of 1937 (42 U.S.C. 1437a), of 1 or more
persons.
(3)The term low-income family means a family
whose income does not exceed 80 percent of the median income for the area, as
determined by the Secretary, with adjustments for family size, except that the
Secretary may establish an income ceiling higher or lower than 80 percent of
the median for the area if the Secretary finds that such a variation is
necessary because of prevailing levels of construction costs or unusually high
or low family incomes.
(4)Participating
Federal agencyThe term participating Federal agency
means a Federal agency the head of which is referenced by title in section
4(b), and any other Federal agency that transfers or conveys property for the
purposes of section 4.
(5)Responsible
administering entityThe term responsible administering
entity means a unit of general local government or a State in a
designated disaster area, or a public agency or other entity designated by a
unit of general local government or a State that is charged with administering
a homestead program approved under section 4(d).
(6)The
term Secretary means the Secretary of Housing and Urban
Development, except as otherwise specified.
4.
(a)The Secretary is
authorized to transfer, without payment, to a responsible administering entity,
any real property—
(1)which is either
vacant or includes either a 1, 2, 3, or 4-family residence or multifamily
project;
(2)to which the
Secretary holds title, including property conveyed to the Secretary by any
other participating Federal agency;
(3)which is not
occupied by a person legally entitled to reside there;
(4)which is
requested by a responsible administering entity for use in a homestead
program;
(5)which is
not—
(A)excess or surplus
Federal property subject to property disposition under title V of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411 et seq.); or
(B)Federal property
subject to disposition under a base closure law, as defined in section
101(a)(17) of title 10, United States Code; and
(6)which the
Secretary determines is suitable for use in a homestead program that is
approved under subsection (d).
(b)Acquisitions
and reimbursements
(1)Notwithstanding any other provision of law, the Secretary
of Agriculture, the Secretary of Health and Human Services, the Secretary of
Veterans Affairs, and the head of any other participating Federal agency are
authorized to transfer property to the Secretary, and the Secretary is
authorized to accept custody and accountability of such property, to carry out
this Act.
(2)
(A)The Secretary is authorized to reimburse the Federal
Housing Administration for property—
(i)which the
Secretary has acquired under the National Housing Act (12 U.S.C. 1701 et seq.)
in the form of modification of subsidy costs, as authorized in the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.); and
(ii)which the
Secretary transfers for use in connection with a local homestead program
approved by the Secretary under this section.
(B)The Secretary is authorized to reimburse a participating
Federal agency in an amount to be agreed upon by the Secretary and such
participating Federal agency for property that such participating Federal
agency transferred for use in connection with a homestead program approved by
the Secretary under this section.
(C)Amounts
to be reimbursed under this paragraph shall be—
(i)deposited
pursuant to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), as
applicable; or
(ii)made available
to the agency to address real property capital asset needs.
(3)The Secretary is authorized to accept, manage, and
convey residential property donated to the Secretary by a nongovernmental
entity for purposes of this Act.
(4)Reversal of
transfer or conveyance
(A)Notwithstanding any other provision of law, any real
property transferred to the Secretary by a participating Federal agency for
purposes of this Act shall be transferred back to that participating Federal
agency in the event that such property is not conveyed to a responsible
administering entity under subsection (a).
(B)In
the event of a conveyance to a responsible administering entity for purposes of
this Act, if such responsible administering entity does not dispose of such
property within 18 months of the date of such conveyance, such property and its
proceeds shall revert—
(i)to
the Secretary; or
(ii)in
the case of property transferred by a participating Federal agency under
paragraph (1), to such participating Federal agency.
(c)Suitable
property for homestead programIn determining the suitability of
a residential property for use in a homestead program, the Secretary shall
consider—
(1)the physical
condition of the residential property, including whether, upon rebuilding, or
if repairs or improvements are required, upon completion of such repairs or
improvements, the property—
(A)would meet local
or applicable standards or codes for habitation or occupancy;
(B)is likely to meet
all Federal requirements for flood insurance; and
(C)will otherwise
not endanger the health or safety of individuals residing within or nearby the
residential property;
(2)the estimated
time for rebuilding or repairing the property for residential use;
(3)the environment
surrounding the property and the suitability of the surrounding structures and
the neighborhood to be rebuilt and sustained as a viable community;
(4)the value of any
repairs and improvements required by the program;
(5)the benefits to
the community and the reduced administrative costs to the Federal Government
which would accrue from the expedited occupancy of the unoccupied property;
and
(6)the possible
financial loss to the Federal Government which may result from the transfer of
the property without payment.
(d)The Secretary may approve a homestead program carried
out by a responsible administering entity, which provides for the
following:
(1)Equitable
selection of participating familiesThe homestead program shall
provide for an equitable procedure, as prescribed by the Secretary, for
selecting low-income families that have been displaced from residences in a
designated disaster area, which procedure shall—
(A)give priority to
low-income families who were displaced from their residences in a particular
designated disaster area or who were displaced as homeowners in a designated
disaster area, or other criteria as may be prescribed by the Secretary;
(B)take into account
for each family described under subparagraph (A), such family's—
(i)capacity to
obtain assistance for the rebuilding, repair, or maintenance of the housing
from private sources, community organizations, or other sources; or
(ii)agreement to
rebuild or repair the housing by participating in a self-help sweat equity
housing program, or the family's contribution to the surrounding community;
and
(C)include such
other criteria as the Secretary determines appropriate.
(2)Initial
occupancy agreementThe homestead program shall provide for the
initial occupancy of unoccupied residential property pursuant to a written
agreement whereby the family to whom such property is conveyed agrees—
(A)to occupy such
property as a principal residence for a period of not less than 5 years, or
such other time period as the Secretary may prescribe;
(B)to repair, or
cause to be repaired or improved, if housing is located on such property, all
defects in such housing that pose a substantial danger to health and safety
within 1 year of the date of such initial conveyance, or within such other time
period as may be prescribed by the Secretary;
(C)to make, or cause
to be made, such repairs and improvements, if housing is located on such
property, to such housing as may be necessary to meet applicable local
standards for decent, safe, and sanitary housing within 3 years after the date
of initial occupancy, or within such other time period as may be prescribed by
the Secretary;
(D)to build or cause
to be built, if housing is not located on the property, single family housing
that meets applicable local codes within 3 years after the date of initial
occupancy, or within such other time period as may be prescribed by the
Secretary;
(E)to permit
reasonable periodic inspections at reasonable times, and with notice reasonable
in the circumstances, for the purpose of determining compliance with the
agreement;
(F)to the revocation
of such agreement upon any material breach of the agreement, subject to
penalties under section 5; and
(G)to accept the
conveyance from the responsible administering entity of fee simple title to
such property without consideration upon compliance with the agreement.
(3)Other criteria
determined by the secretaryThe homestead program shall meet such
other criteria determined by the Secretary to be appropriate for the program in
light of the location in which the program is to be administered, or following
consultation with State and local government officials.
(e)The Secretary is authorized to provide technical
assistance and other resources directly or indirectly for the administration of
homestead programs that meet the requirements of subsection (d) and to families
who are participants in such programs.
5.
(a)The Secretary
shall make such reviews and audits as may be necessary or appropriate to
determine whether activities authorized to be carried out under this Act are
carried out in accordance with the requirements of this Act and other
applicable law.
(b)In addition to any other actions authorized by applicable
law, if the Secretary determines that any property transferred for use under a
homestead program approved under section 4 has been conveyed or used under the
program in a manner contrary to the provisions of section 4, the Secretary may
take such actions as the Secretary considers appropriate, including—
(1)imposing a civil
money penalty on the responsible administering entity, or the transferee of
such entity, or both, as appropriate, in an amount equal to not less than any
profit realized with respect to the conveyance or use of such property contrary
to the provisions of this Act;
(2)enforcing,
revising, or releasing the restrictions contained in any instruments of
conveyance; or
(3)revoking the
conveyance of the property to the responsible administering entity or requiring
the responsible administering entity to revoke the conveyance of such property
to the family in accordance with procedures prescribed by the Secretary.
(c)The Attorney General of the United States, at the
request of the Secretary, may bring civil actions in any district court of the
United States to enforce this Act, and such court shall have jurisdiction over
such actions.
6.No person in the United States shall, on the
grounds of race, color, national origin, religion, disability, or sex, be
excluded from participation in the homestead program established under this
Act.
7.
(a)Except as provided in
subsection (b), the National Environmental Policy Act (42 U.S.C. 4321 et seq.)
shall apply to all activities under this Act.
(b)The
Secretary may, in consultation with Federal, Tribal, State, and local
governmental entities, as appropriate, waive the requirements of the National
Environmental Policy Act (42 U.S.C. 4321 et seq.), if the Secretary determines
that such a waiver—
(1)will not
frustrate the goals of the National Environmental Policy Act or any other
provision of law that furthers the goals of that Act; and
(2)does not threaten
the health or safety of the community involved by posing an immediate or
long-term hazard to residents of that community.
8.Authorization of
appropriationsThere is
authorized to be appropriated to carry out this Act a total of $300,000,000 for
fiscal years 2006 through 2010.
9.
(a)To immediately
implement this Act, the Secretary shall, by notice, establish such requirements
as may be necessary to carry out this Act.
(b)The notice required
under subsection (a) shall—
(1)take effect upon issuance; and
(2)provide the opportunity for public
comment.
(c)The Secretary
shall issue final regulations based on the notice required under subsection
(a).
10.The Secretary shall not accept, transfer, or
convey property under this Act after 5 years from the date of enactment of this
Act.