[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3221 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                        April 10, 2008.
    Resolved, That the bill from the House of Representatives (H.R. 
3221) entitled ``An Act moving the United States toward greater energy 
independence and security, developing innovative new technologies, 
reducing carbon emissions, creating green jobs, protecting consumers, 
increasing clean renewable energy production, and modernizing our 
energy infrastructure, and to amend the Internal Revenue Code of 1986 
to provide tax incentives for the production of renewable energy and 
energy conservation.'', do pass with the following

                              AMENDMENTS:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foreclosure 
Prevention Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                 TITLE I--FHA MODERNIZATION ACT OF 2008

Sec. 101. Short title.

              Subtitle A--Building American Homeownership

Sec. 111. Short title.
Sec. 112. Maximum principal loan obligation.
Sec. 113. Cash investment requirement and prohibition of seller-funded 
                            downpayment assistance.
Sec. 114. Mortgage insurance premiums.
Sec. 115. Rehabilitation loans.
Sec. 116. Discretionary action.
Sec. 117. Insurance of condominiums.
Sec. 118. Mutual Mortgage Insurance Fund.
Sec. 119. Hawaiian home lands and Indian reservations.
Sec. 120. Conforming and technical amendments.
Sec. 121. Insurance of mortgages.
Sec. 122. Home equity conversion mortgages.
Sec. 123. Energy efficient mortgages program.
Sec. 124. Pilot program for automated process for borrowers without 
                            sufficient credit history.
Sec. 125. Homeownership preservation.
Sec. 126. Use of FHA savings for improvements in FHA technologies, 
                            procedures, processes, program performance, 
                            staffing, and salaries.
Sec. 127. Post-purchase housing counseling eligibility improvements.
Sec. 128. Pre-purchase homeownership counseling demonstration.
Sec. 129. Fraud prevention.
Sec. 130. Limitation on mortgage insurance premium increases.
Sec. 131. Savings provision.
Sec. 132. Implementation.
Sec. 133. Moratorium on implementation of risk-based premiums.

          Subtitle B--Manufactured Housing Loan Modernization

Sec. 141. Short title.
Sec. 142. Purposes.
Sec. 143. Exception to limitation on financial institution portfolio.
Sec. 144. Insurance benefits.
Sec. 145. Maximum loan limits.
Sec. 146. Insurance premiums.
Sec. 147. Technical corrections.
Sec. 148. Revision of underwriting criteria.
Sec. 149. Prohibition against kickbacks and unearned fees.
Sec. 150. Leasehold requirements.

     TITLE II--MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS

Sec. 201. Temporary increase in maximum loan guaranty amount for 
                            certain housing loans guaranteed by the 
                            Secretary of Veterans Affairs.
Sec. 202. Counseling on mortgage foreclosures for members of the Armed 
                            Forces returning from service abroad.
Sec. 203. Enhancement of protections for servicemembers relating to 
                            mortgages and mortgage foreclosures.

TITLE III--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

Sec. 301. Emergency assistance for the redevelopment of abandoned and 
                            foreclosed homes.
Sec. 302. Nationwide distribution of resources.
Sec. 303. Limitation on use of funds with respect to eminent domain.
Sec. 304. Limitation on distribution of funds.
Sec. 305. Counseling intermediaries.

                 TITLE IV--HOUSING COUNSELING RESOURCES

Sec. 401. Housing counseling resources.
Sec. 402. Credit counseling.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

Sec. 501. Short title.
Sec. 502. Enhanced mortgage loan disclosures.
Sec. 503. Community Development Investment Authority for depository 
                            institutions.
Sec. 504. Federal Home loan bank refinancing authority for certain 
                            residential mortgage loans.

                    TITLE VI--TAX-RELATED PROVISIONS

Sec. 601. Election for 4-year carryback of certain net operating losses 
                            and temporary suspension of 90 percent AMT 
                            limit.
Sec. 602. Modifications on use of qualified mortgage bonds; temporary 
                            increased volume cap for certain housing 
                            bonds.
Sec. 603. Credit for certain home purchases.
Sec. 604. Additional standard deduction for real property taxes for 
                            nonitemizers.
Sec. 605. Election to accelerate AMT and R and D credits in lieu of 
                            bonus depreciation.
Sec. 606. Use of amended income tax returns to take into account 
                            receipt of certain hurricane-related 
                            casualty loss grants by disallowing 
                            previously taken casualty loss deductions.
Sec. 607. Waiver of deadline on construction of GO Zone property 
                            eligible for bonus depreciation.
Sec. 608. Temporary tax relief for Kiowa County, Kansas and surrounding 
                            area.

                    TITLE VII--EMERGENCY DESIGNATION

Sec. 701. Emergency designation.

      TITLE VIII--REIT INVESTMENT DIVERSIFICATION AND EMPOWERMENT

Sec. 801. Short title; amendment of 1986 Code.

                 Subtitle A--Taxable REIT Subsidiaries

Sec. 811. Conforming taxable REIT subsidiary asset test.

                        Subtitle B--Dealer Sales

Sec. 821. Holding period under safe harbor.
Sec. 822. Determining value of sales under safe harbor.

                     Subtitle C--Health Care REITs

Sec. 831. Conformity for health care facilities.

                 Subtitle D--Effective Dates and Sunset

Sec. 841. Effective dates and sunset.

                   TITLE IX--VETERANS HOUSING MATTERS

Sec. 901. Home improvements and structural alterations for totally 
                            disabled members of the Armed Forces before 
                            discharge or release from the Armed Forces.
Sec. 902. Eligibility for specially adapted housing benefits and 
                            assistance for members of the Armed Forces 
                            with service-connected disabilities and 
                            individuals residing outside the United 
                            States.
Sec. 903. Specially adapted housing assistance for individuals with 
                            severe burn injuries.
Sec. 904. Extension of assistance for individuals residing temporarily 
                            in housing owned by a family member.
Sec. 905. Increase in specially adapted housing benefits for disabled 
                            veterans.
Sec. 906. Report on specially adapted housing for disabled individuals.
Sec. 907. Report on specially adapted housing assistance for 
                            individuals who reside in housing owned by 
                            a family member on permanent basis.
Sec. 908. Definition of annual income for purposes of section 8 and 
                            other public housing programs.
Sec. 909. Payment of transportation of baggage and household effects 
                            for members of the Armed Forces who 
                            relocate due to foreclosure of leased 
                            housing.

                   TITLE X--CLEAN ENERGY TAX STIMULUS

Sec. 1001. Short title; etc.

      Subtitle A--Extension of Clean Energy Production Incentives

Sec. 1011. Extension and modification of renewable energy production 
                            tax credit.
Sec. 1012. Extension and modification of solar energy and fuel cell 
                            investment tax credit.
Sec. 1013. Extension and modification of residential energy efficient 
                            property credit.
Sec. 1014. Extension and modification of credit for clean renewable 
                            energy bonds.
Sec. 1015. Extension of special rule to implement FERC restructuring 
                            policy.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

Sec. 1021. Extension and modification of credit for energy efficiency 
                            improvements to existing homes.
Sec. 1022. Extension and modification of tax credit for energy 
                            efficient new homes.
Sec. 1023. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 1024. Modification and extension of energy efficient appliance 
                            credit for appliances produced after 2007.

                     TITLE XI--SENSE OF THE SENATE

Sec. 1101. Sense of the Senate.

                 TITLE I--FHA MODERNIZATION ACT OF 2008

SEC. 101. SHORT TITLE.

    This title may be cited as the ``FHA Modernization Act of 2008''.

              Subtitle A--Building American Homeownership

SEC. 111. SHORT TITLE.

    This subtitle may be cited as the ``Building American Homeownership 
Act of 2008''.

SEC. 112. MAXIMUM PRINCIPAL LOAN OBLIGATION.

    (a) In General.--Paragraph (2) of section 203(b)(2) of the National 
Housing Act (12 U.S.C. 1709(b)(2)) is amended--
            (1) by amending subparagraphs (A) and (B) to read as 
        follows:
                    ``(A) not to exceed the lesser of--
                            ``(i) in the case of a 1-family residence, 
                        110 percent of the median 1-family house price 
                        in the area, as determined by the Secretary; 
                        and in the case of a 2-, 3-, or 4-family 
                        residence, the percentage of such median price 
                        that bears the same ratio to such median price 
                        as the dollar amount limitation in effect for 
                        2007 under section 305(a)(2) of the Federal 
                        Home Loan Mortgage Corporation Act (12 U.S.C. 
                        1454(a)(2)) for a 2-, 3-, or 4-family 
                        residence, respectively, bears to the dollar 
                        amount limitation in effect for 2007 under such 
                        section for a 1-family residence; or
                            ``(ii) 132 percent of the dollar amount 
                        limitation in effect for 2007 under such 
                        section 305(a)(2) for a residence of the 
                        applicable size (without regard to any 
                        authority to increase such limitations with 
                        respect to properties located in Alaska, Guam, 
                        Hawaii, or the Virgin Islands), except that 
                        each such maximum dollar amount shall be 
                        adjusted effective January 1 of each year 
                        beginning with 2009, by adding to or 
                        subtracting from each such amount (as it may 
                        have been previously adjusted) a percentage 
                        thereof equal to the percentage increase or 
                        decrease, during the most recently completed 
                        12-month or 4-quarter period ending before the 
                        time of determining such annual adjustment, in 
                        an housing price index developed or selected by 
                        the Secretary for purposes of adjustments under 
                        this clause;
                except that the dollar amount limitation in effect 
                under this subparagraph for any size residence for any 
                area may not be less than the greater of: (I) the 
                dollar amount limitation in effect under this section 
                for the area on October 21, 1998; or (II) 65 percent of 
                the dollar amount limitation in effect for 2007 under 
                such section 305(a)(2) for a residence of the 
                applicable size, as such limitation is adjusted by any 
                subsequent percentage adjustments determined under 
                clause (ii) of this subparagraph; and
                    ``(B) not to exceed 100 percent of the appraised 
                value of the property.''; and
            (2) in the matter following subparagraph (B), by striking 
        the second sentence (relating to a definition of ``average 
        closing cost'') and all that follows through ``section 3103A(d) 
        of title 38, United States Code.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect upon the expiration of the date described in section 202(a) 
of the Economic Stimulus Act of 2008 (Public Law 110-185).

SEC. 113. CASH INVESTMENT REQUIREMENT AND PROHIBITION OF SELLER-FUNDED 
              DOWNPAYMENT ASSISTANCE.

    Paragraph 9 of section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)(9)) is amended to read as follows:
            ``(9) Cash investment requirement.--
                    ``(A) In general.--A mortgage insured under this 
                section shall be executed by a mortgagor who shall have 
                paid, in cash, on account of the property an amount 
                equal to not less than 3.5 percent of the appraised 
                value of the property or such larger amount as the 
                Secretary may determine.
                    ``(B) Family members.--For purposes of this 
                paragraph, the Secretary shall consider as cash or its 
                equivalent any amounts borrowed from a family member 
                (as such term is defined in section 201), subject only 
                to the requirements that, in any case in which the 
                repayment of such borrowed amounts is secured by a lien 
                against the property, that--
                            ``(i) such lien shall be subordinate to the 
                        mortgage; and
                            ``(ii) the sum of the principal obligation 
                        of the mortgage and the obligation secured by 
                        such lien may not exceed 100 percent of the 
                        appraised value of the property.
                    ``(C) Prohibited sources.--In no case shall the 
                funds required by subparagraph (A) consist, in whole or 
                in part, of funds provided by any of the following 
                parties before, during, or after closing of the 
                property sale:
                            ``(i) The seller or any other person or 
                        entity that financially benefits from the 
                        transaction.
                            ``(ii) Any third party or entity that is 
                        reimbursed, directly or indirectly, by any of 
                        the parties described in clause (i).''.

SEC. 114. MORTGAGE INSURANCE PREMIUMS.

    Section 203(c)(2) of the National Housing Act (12 U.S.C. 
1709(c)(2)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``or of the General Insurance Fund'' and all that follows 
        through ``section 234(c),,''; and
            (2) in subparagraph (A)--
                    (A) by striking ``2.25 percent'' and inserting ``3 
                percent''; and
                    (B) by striking ``2.0 percent'' and inserting 
                ``2.75 percent''.

SEC. 115. REHABILITATION LOANS.

    Subsection (k) of section 203 of the National Housing Act (12 
U.S.C. 1709(k)) is amended--
            (1) in paragraph (1), by striking ``on'' and all that 
        follows through ``1978''; and
            (2) in paragraph (5)--
                    (A) by striking ``General Insurance Fund'' the 
                first place it appears and inserting ``Mutual Mortgage 
                Insurance Fund''; and
                    (B) in the second sentence, by striking the comma 
                and all that follows through ``General Insurance 
                Fund''.

SEC. 116. DISCRETIONARY ACTION.

    The National Housing Act is amended--
            (1) in subsection (e) of section 202 (12 U.S.C. 1708(e))--
                    (A) in paragraph (3)(B), by striking ``section 
                202(e) of the National Housing Act'' and inserting 
                ``this subsection''; and
                    (B) by redesignating such subsection as subsection 
                (f);
            (2) by striking paragraph (4) of section 203(s) (12 U.S.C. 
        1709(s)(4)) and inserting the following new paragraph:
            ``(4) the Secretary of Agriculture;''; and
            (3) by transferring subsection (s) of section 203 (as 
        amended by paragraph (2) of this section) to section 202, 
        inserting such subsection after subsection (d) of section 202, 
        and redesignating such subsection as subsection (e).

SEC. 117. INSURANCE OF CONDOMINIUMS.

    (a) In General.--Section 234 of the National Housing Act (12 U.S.C. 
1715y) is amended--
            (1) in subsection (c), in the first sentence--
                    (A) by striking ``and'' before ``(2)''; and
                    (B) by inserting before the period at the end the 
                following: ``, and (3) the project has a blanket 
                mortgage insured by the Secretary under subsection 
                (d)''; and
            (2) in subsection (g), by striking ``, except that'' and 
        all that follows and inserting a period.
    (b) Definition of Mortgage.--Section 201(a) of the National Housing 
Act (12 U.S.C. 1707(a)) is amended--
            (1) before ``a first mortgage'' insert ``(A)'';
            (2) by striking ``or on a leasehold (1)'' and inserting 
        ``(B) a first mortgage on a leasehold on real estate (i)'';
            (3) by striking ``or (2)'' and inserting ``, or (ii)''; and
            (4) by inserting before the semicolon the following: ``, or 
        (C) a first mortgage given to secure the unpaid purchase price 
        of a fee interest in, or long-term leasehold interest in, real 
        estate consisting of a one-family unit in a multifamily 
        project, including a project in which the dwelling units are 
        attached, or are manufactured housing units, semi-detached, or 
        detached, and an undivided interest in the common areas and 
        facilities which serve the project''.
    (c) Definition of Real Estate.--Section 201 of the National Housing 
Act (12 U.S.C. 1707) is amended by adding at the end the following new 
subsection:
    ``(g) The term `real estate' means land and all natural resources 
and structures permanently affixed to the land, including residential 
buildings and stationary manufactured housing. The Secretary may not 
require, for treatment of any land or other property as real estate for 
purposes of this title, that such land or property be treated as real 
estate for purposes of State taxation.''.

SEC. 118. MUTUAL MORTGAGE INSURANCE FUND.

    (a) In General.--Subsection (a) of section 202 of the National 
Housing Act (12 U.S.C. 1708(a)) is amended to read as follows:
    ``(a) Mutual Mortgage Insurance Fund.--
            ``(1) Establishment.--Subject to the provisions of the 
        Federal Credit Reform Act of 1990, there is hereby created a 
        Mutual Mortgage Insurance Fund (in this title referred to as 
        the `Fund'), which shall be used by the Secretary to carry out 
        the provisions of this title with respect to mortgages insured 
        under section 203. The Secretary may enter into commitments to 
        guarantee, and may guarantee, such insured mortgages.
            ``(2) Limit on loan guarantees.--The authority of the 
        Secretary to enter into commitments to guarantee such insured 
        mortgages shall be effective for any fiscal year only to the 
        extent that the aggregate original principal loan amount under 
        such mortgages, any part of which is guaranteed, does not 
        exceed the amount specified in appropriations Acts for such 
        fiscal year.
            ``(3) Fiduciary responsibility.--The Secretary has a 
        responsibility to ensure that the Mutual Mortgage Insurance 
        Fund remains financially sound.
            ``(4) Annual independent actuarial study.--The Secretary 
        shall provide for an independent actuarial study of the Fund to 
        be conducted annually, which shall analyze the financial 
        position of the Fund. The Secretary shall submit a report 
        annually to the Congress describing the results of such study 
        and assessing the financial status of the Fund. The report 
        shall recommend adjustments to underwriting standards, program 
        participation, or premiums, if necessary, to ensure that the 
        Fund remains financially sound. The report shall also include 
        an evaluation of the quality control procedures and accuracy of 
        information utilized in the process of underwriting loans 
        guaranteed by the Fund. Such evaluation shall include a review 
        of the risk characteristics of loans based not only on borrower 
        information and performance, but on risks associated with loans 
        originated or funded by various entities or financial 
        institutions.
            ``(5) Quarterly reports.--During each fiscal year, the 
        Secretary shall submit a report to the Congress for each 
        calendar quarter, which shall specify for mortgages that are 
        obligations of the Fund--
                    ``(A) the cumulative volume of loan guarantee 
                commitments that have been made during such fiscal year 
                through the end of the quarter for which the report is 
                submitted;
                    ``(B) the types of loans insured, categorized by 
                risk;
                    ``(C) any significant changes between actual and 
                projected claim and prepayment activity;
                    ``(D) projected versus actual loss rates; and
                    ``(E) updated projections of the annual subsidy 
                rates to ensure that increases in risk to the Fund are 
                identified and mitigated by adjustments to underwriting 
                standards, program participation, or premiums, and the 
                financial soundness of the Fund is maintained.
        The first quarterly report under this paragraph shall be 
        submitted on the last day of the first quarter of fiscal year 
        2008, or on the last day of the first full calendar quarter 
        following the enactment of the Building American Homeownership 
        Act of 2008, whichever is later.
            ``(6) Adjustment of premiums.--If, pursuant to the 
        independent actuarial study of the Fund required under 
        paragraph (4), the Secretary determines that the Fund is not 
        meeting the operational goals established under paragraph (7) 
        or there is a substantial probability that the Fund will not 
        maintain its established target subsidy rate, the Secretary may 
        either make programmatic adjustments under this title as 
        necessary to reduce the risk to the Fund, or make appropriate 
        premium adjustments.
            ``(7) Operational goals.--The operational goals for the 
        Fund are--
                    ``(A) to minimize the default risk to the Fund and 
                to homeowners by among other actions instituting fraud 
                prevention quality control screening not later than 18 
                months after the date of enactment of the Building 
                American Homeownership Act of 2008; and
                    ``(B) to meet the housing needs of the borrowers 
                that the single family mortgage insurance program under 
                this title is designed to serve.''.
    (b) Obligations of Fund.--The National Housing Act is amended as 
follows:
            (1) Homeownership voucher program mortgages.--In section 
        203(v) (12 U.S.C. 1709(v))--
                    (A) by striking ``Notwithstanding section 202 of 
                this title, the'' and inserting ``The''; and
                    (B) by striking ``General Insurance Fund'' the 
                first place such term appears and all that follows 
                through the end of the subsection and inserting 
                ``Mutual Mortgage Insurance Fund.''.
            (2) Home equity conversion mortgages.--Section 255(i)(2)(A) 
        of the National Housing Act (12 U.S.C. 1715z-20(i)(2)(A)) is 
        amended by striking ``General Insurance Fund'' and inserting 
        ``Mutual Mortgage Insurance Fund''.
    (c) Conforming Amendments.--The National Housing Act is amended--
            (1) in section 205 (12 U.S.C. 1711), by striking 
        subsections (g) and (h); and
            (2) in section 519(e) (12 U.S.C. 1735c(e)), by striking 
        ``203(b)'' and all that follows through ``203(i)'' and 
        inserting ``203, except as determined by the Secretary''.

SEC. 119. HAWAIIAN HOME LANDS AND INDIAN RESERVATIONS.

    (a) Hawaiian Home Lands.--Section 247(c) of the National Housing 
Act (12 U.S.C. 1715z-12(c)) is amended--
            (1) by striking ``General Insurance Fund established in 
        section 519'' and inserting ``Mutual Mortgage Insurance Fund''; 
        and
            (2) in the second sentence, by striking ``(1) all 
        references'' and all that follows through ``and (2)''.
    (b) Indian Reservations.--Section 248(f) of the National Housing 
Act (12 U.S.C. 1715z-13(f)) is amended--
            (1) by striking ``General Insurance Fund'' the first place 
        it appears through ``519'' and inserting ``Mutual Mortgage 
        Insurance Fund''; and
            (2) in the second sentence, by striking ``(1) all 
        references'' and all that follows through ``and (2)''.

SEC. 120. CONFORMING AND TECHNICAL AMENDMENTS.

    (a) Repeals.--The following provisions of the National Housing Act 
are repealed:
            (1) Subsection (i) of section 203 (12 U.S.C. 1709(i)).
            (2) Subsection (o) of section 203 (12 U.S.C. 1709(o)).
            (3) Subsection (p) of section 203 (12 U.S.C. 1709(p)).
            (4) Subsection (q) of section 203 (12 U.S.C. 1709(q)).
            (5) Section 222 (12 U.S.C. 1715m).
            (6) Section 237 (12 U.S.C. 1715z-2).
            (7) Section 245 (12 U.S.C. 1715z-10).
    (b) Definition of Area.--Section 203(u)(2)(A) of the National 
Housing Act (12 U.S.C. 1709(u)(2)(A)) is amended by striking ``shall'' 
and all that follows and inserting ``means a metropolitan statistical 
area as established by the Office of Management and Budget;''.
    (c) Definition of State.--Section 201(d) of the National Housing 
Act (12 U.S.C. 1707(d)) is amended by striking ``the Trust Territory of 
the Pacific Islands'' and inserting ``the Commonwealth of the Northern 
Mariana Islands''.

SEC. 121. INSURANCE OF MORTGAGES.

    Subsection (n)(2) of section 203 of the National Housing Act (12 
U.S.C. 1709(n)(2)) is amended--
            (1) in subparagraph (A), by inserting ``or subordinate 
        mortgage or'' before ``lien given''; and
            (2) in subparagraph (C), by inserting ``or subordinate 
        mortgage or'' before ``lien''.

SEC. 122. HOME EQUITY CONVERSION MORTGAGES.

    (a) In General.--Section 255 of the National Housing Act (12 U.S.C. 
1715z-20) is amended--
            (1) in subsection (b)(2), insert ```real estate,''' after 
        ```mortgagor','';
            (2) by amending subsection (d)(1) to read as follows:
            ``(1) have been originated by a mortgagee approved by the 
        Secretary;'';
            (3) by amending subsection (d)(2)(B) to read as follows:
                    ``(B) has received adequate counseling, as provided 
                in subsection (f), by an independent third party that 
                is not, either directly or indirectly, associated with 
                or compensated by a party involved in--
                            ``(i) originating or servicing the 
                        mortgage;
                            ``(ii) funding the loan underlying the 
                        mortgage; or
                            ``(iii) the sale of annuities, investments, 
                        long-term care insurance, or any other type of 
                        financial or insurance product;'';
            (4) in subsection (f)--
                    (A) by striking ``(f) Information Services for 
                Mortgagors.--'' and inserting ``(f) Counseling Services 
                and Information for Mortgagors.--''; and
                    (B) by amending the matter preceding paragraph (1) 
                to read as follows: ``The Secretary shall provide or 
                cause to be provided adequate counseling for the 
                mortgagor, as described in subsection (d)(2)(B). Such 
                counseling shall be provided by counselors that meet 
                qualification standards and follow uniform counseling 
                protocols. The qualification standards and counseling 
                protocols shall be established by the Secretary within 
                12 months of the date of enactment of the Reverse 
                Mortgage Proceeds Protection Act. The protocols shall 
                require a qualified counselor to discuss with each 
                mortgagor information which shall include--''
            (5) in subsection (g), by striking ``established under 
        section 203(b)(2)'' and all that follows through ``located'' 
        and inserting ``limitation established under section 305(a)(2) 
        of the Federal Home Loan Mortgage Corporation Act for a 1-
        family residence'';
            (6) in subsection (i)(1)(C), by striking ``limitations'' 
        and inserting ``limitation'';
            (7) by striking subsection (l);
            (8) by redesignating subsection (m) as subsection (l);
            (9) by amending subsection (l), as so redesignated, to read 
        as follows:
    ``(l) Funding for Counseling.--The Secretary may use a portion of 
the mortgage insurance premiums collected under the program under this 
section to adequately fund the counseling and disclosure activities 
required under subsection (f), including counseling for those 
homeowners who elect not to take out a home equity conversion mortgage, 
provided that the use of such funds is based upon accepted actuarial 
principles.''; and
            (10) by adding at the end the following new subsection:
    ``(m) Authority To Insure Home Purchase Mortgage.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the Secretary may insure, upon application by a 
        mortgagee, a home equity conversion mortgage upon such terms 
        and conditions as the Secretary may prescribe, when the home 
        equity conversion mortgage will be used to purchase a 1- to 4-
        family dwelling unit, one unit of which the mortgagor will 
        occupy as a primary residence, and to provide for any future 
        payments to the mortgagor, based on available equity, as 
        authorized under subsection (d)(9).
            ``(2) Limitation on principal obligation.--A home equity 
        conversion mortgage insured pursuant to paragraph (1) shall 
        involve a principal obligation that does not exceed the dollar 
        amount limitation determined under section 305(a)(2) of the 
        Federal Home Loan Mortgage Corporation Act for a 1-family 
        residence.
    ``(n) Requirements on Mortgage Originators.--
            ``(1) In general.--The mortgagee and any other party that 
        participates in the origination of a mortgage to be insured 
        under this section shall--
                    ``(A) not participate in, be associated with, or 
                employ any party that participates in or is associated 
                with any other financial or insurance activity; or
                    ``(B) demonstrate to the Secretary that the 
                mortgagee or other party maintains, or will maintain, 
                firewalls and other safeguards designed to ensure 
                that--
                            ``(i) individuals participating in the 
                        origination of the mortgage shall have no 
                        involvement with, or incentive to provide the 
                        mortgagor with, any other financial or 
                        insurance product; and
                            ``(ii) the mortgagor shall not be required, 
                        directly or indirectly, as a condition of 
                        obtaining a mortgage under this section, to 
                        purchase any other financial or insurance 
                        product.
            ``(2) Approval of other parties.--All parties that 
        participate in the origination of a mortgage to be insured 
        under this section shall be approved by the Secretary.
    ``(o) Prohibition Against Requirements To Purchase Additional 
Products.--The mortgagee or any other party shall not be required by 
the mortgagor or any other party to purchase an insurance, annuity, or 
other additional product as a requirement or condition of eligibility 
for a mortgage authorized under subsection (c).
    ``(p) Study To Determine Consumer Protections and Underwriting 
Standards.--The Secretary shall conduct a study to examine and 
determine appropriate consumer protections and underwriting standards 
to ensure that the purchase of products referred to in subsection (o) 
is appropriate for the consumer. In conducting such study, the 
Secretary shall consult with consumer advocates (including recognized 
experts in consumer protection), industry representatives, 
representatives of counseling organizations, and other interested 
parties.''.
    (b) Mortgages for Cooperatives.--Subsection (b) of section 255 of 
the National Housing Act (12 U.S.C. 1715z-20(b)) is amended--
            (1) in paragraph (4)--
                    (A) by inserting ``a first or subordinate mortgage 
                or lien'' before ``on all stock'';
                    (B) by inserting ``unit'' after ``dwelling''; and
                    (C) by inserting ``a first mortgage or first lien'' 
                before ``on a leasehold''; and
            (2) in paragraph (5), by inserting ``a first or subordinate 
        lien on'' before ``all stock''.
    (c) Limitation on Origination Fees.--Section 255 of the National 
Housing Act (12 U.S.C. 1715z-20), as amended by the preceding 
provisions of this section, is further amended by adding at the end the 
following new subsection:
    ``(r) Limitation on Origination Fees.--The Secretary shall 
establish limits on the origination fee that may be charged to a 
mortgagor under a mortgage insured under this section, which 
limitations shall--
            ``(1) equal 1.5 percent of the maximum claim amount of the 
        mortgage unless adjusted thereafter on the basis of--
                    ``(A) the costs to the mortgagor; and
                    ``(B) the impact of such fees on the reverse 
                mortgage market;
            ``(2) be subject to a minimum allowable amount;
            ``(3) provide that the origination fee may be fully 
        financed with the mortgage;
            ``(4) include any fees paid to correspondent mortgagees 
        approved by the Secretary; and
            ``(5) have the same effective date as subsection (m)(2) 
        regarding the limitation on principal obligation.''.
    (d) Study Regarding Program Costs and Credit Availability.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study regarding the costs and 
        availability of credit under the home equity conversion 
        mortgages for elderly homeowners program under section 255 of 
        the National Housing Act (12 U.S.C. 1715z-20) (in this 
        subsection referred to as the ``program'').
            (2) Purpose.--The purpose of the study required under 
        paragraph (1) is to help Congress analyze and determine the 
        effects of limiting the amounts of the costs or fees under the 
        program from the amounts charged under the program as of the 
        date of the enactment of this title.
            (3) Content of report.--The study required under paragraph 
        (1) should focus on--
                    (A) the cost to mortgagors of participating in the 
                program;
                    (B) the financial soundness of the program;
                    (C) the availability of credit under the program; 
                and
                    (D) the costs to elderly homeowners participating 
                in the program, including--
                            (i) mortgage insurance premiums charged 
                        under the program;
                            (ii) up-front fees charged under the 
                        program; and
                            (iii) margin rates charged under the 
                        program.
            (4) Timing of report.--Not later than 12 months after the 
        date of the enactment of this title, the Comptroller General 
        shall submit a report to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives setting forth the 
        results and conclusions of the study required under paragraph 
        (1).

SEC. 123. ENERGY EFFICIENT MORTGAGES PROGRAM.

    Section 106(a)(2) of the Energy Policy Act of 1992 (42 U.S.C. 12712 
note) is amended--
            (1) by amending subparagraph (C) to read as follows:
                    ``(C) Costs of improvements.--The cost of cost-
                effective energy efficiency improvements shall not 
                exceed the greater of--
                            ``(i) 5 percent of the property value (not 
                        to exceed 5 percent of the limit established 
                        under section 203(b)(2)(A)) of the National 
                        Housing Act (12 U.S.C. 1709(b)(2)(A); or
                            ``(ii) 2 percent of the limit established 
                        under section 203(b)(2)(B) of such Act.''; and
            (2) by adding at the end the following:
                    ``(D) Limitation.--In any fiscal year, the 
                aggregate number of mortgages insured pursuant to this 
                section may not exceed 5 percent of the aggregate 
                number of mortgages for 1- to 4-family residences 
                insured by the Secretary of Housing and Urban 
                Development under title II of the National Housing Act 
                (12 U.S.C. 1707 et seq.) during the preceding fiscal 
                year.''.

SEC. 124. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS WITHOUT 
              SUFFICIENT CREDIT HISTORY.

    (a) Establishment.--Title II of the National Housing Act (12 U.S.C. 
1707 et seq.) is amended by adding at the end the following new 
section:

``SEC. 257. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS WITHOUT 
              SUFFICIENT CREDIT HISTORY.

    ``(a) Establishment.--The Secretary shall carry out a pilot program 
to establish, and make available to mortgagees, an automated process 
for providing alternative credit rating information for mortgagors and 
prospective mortgagors under mortgages on 1- to 4-family residences to 
be insured under this title who have insufficient credit histories for 
determining their creditworthiness. Such alternative credit rating 
information may include rent, utilities, and insurance payment 
histories, and such other information as the Secretary considers 
appropriate.
    ``(b) Scope.--The Secretary may carry out the pilot program under 
this section on a limited basis or scope, and may consider limiting the 
program to first-time homebuyers.
    ``(c) Limitation.--In any fiscal year, the aggregate number of 
mortgages insured pursuant to the automated process established under 
this section may not exceed 5 percent of the aggregate number of 
mortgages for 1- to 4-family residences insured by the Secretary under 
this title during the preceding fiscal year.
    ``(d) Sunset.--After the expiration of the 5-year period beginning 
on the date of the enactment of the Building American Homeownership Act 
of 2008, the Secretary may not enter into any new commitment to insure 
any mortgage, or newly insure any mortgage, pursuant to the automated 
process established under this section.''.
    (b) GAO Report.--Not later than the expiration of the two-year 
period beginning on the date of the enactment of this subtitle, the 
Comptroller General of the United States shall submit to the Congress a 
report identifying the number of additional mortgagors served using the 
automated process established pursuant to section 257 of the National 
Housing Act (as added by the amendment made by subsection (a) of this 
section) and the impact of such process and the insurance of mortgages 
pursuant to such process on the safety and soundness of the insurance 
funds under the National Housing Act of which such mortgages are 
obligations.

SEC. 125. HOMEOWNERSHIP PRESERVATION.

    The Secretary of Housing and Urban Development and the Commissioner 
of the Federal Housing Administration, in consultation with industry, 
the Neighborhood Reinvestment Corporation, and other entities involved 
in foreclosure prevention activities, shall--
            (1) develop and implement a plan to improve the Federal 
        Housing Administration's loss mitigation process; and
            (2) report such plan to the Committee on Banking, Housing, 
        and Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives.

SEC. 126. USE OF FHA SAVINGS FOR IMPROVEMENTS IN FHA TECHNOLOGIES, 
              PROCEDURES, PROCESSES, PROGRAM PERFORMANCE, STAFFING, AND 
              SALARIES.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated for each of fiscal years 2009 through 2013, $25,000,000, 
from negative credit subsidy for the mortgage insurance programs under 
title II of the National Housing Act, to the Secretary of Housing and 
Urban Development for increasing funding for the purpose of improving 
technology, processes, program performance, eliminating fraud, and for 
providing appropriate staffing in connection with the mortgage 
insurance programs under title II of the National Housing Act.
    (b) Certification.--The authorization under subsection (a) shall 
not be effective for a fiscal year unless the Secretary of Housing and 
Urban Development has, by rulemaking in accordance with section 553 of 
title 5, United States Code (notwithstanding subsections (a)(2), 
(b)(B), and (d)(3) of such section), made a determination that--
            (1) premiums being, or to be, charged during such fiscal 
        year for mortgage insurance under title II of the National 
        Housing Act are established at the minimum amount sufficient 
        to--
                    (A) comply with the requirements of section 205(f) 
                of such Act (relating to required capital ratio for the 
                Mutual Mortgage Insurance Fund); and
                    (B) ensure the safety and soundness of the other 
                mortgage insurance funds under such Act; and
            (2) any negative credit subsidy for such fiscal year 
        resulting from such mortgage insurance programs adequately 
        ensures the efficient delivery and availability of such 
        programs.
    (c) Study and Report.--The Secretary of Housing and Urban 
Development shall conduct a study to obtain recommendations from 
participants in the private residential (both single family and 
multifamily) mortgage lending business and the secondary market for 
such mortgages on how best to update and upgrade processes and 
technologies for the mortgage insurance programs under title II of the 
National Housing Act so that the procedures for originating, insuring, 
and servicing of such mortgages conform with those customarily used by 
secondary market purchasers of residential mortgage loans. Not later 
than the expiration of the 12-month period beginning on the date of the 
enactment of this title, the Secretary shall submit a report to the 
Congress describing the progress made and to be made toward updating 
and upgrading such processes and technology, and providing appropriate 
staffing for such mortgage insurance programs.

SEC. 127. POST-PURCHASE HOUSING COUNSELING ELIGIBILITY IMPROVEMENTS.

    Section 106(c)(4) of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x(c)(4)) is amended:
            (1) in subparagraph (C)--
                    (A) in clause (i), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in clause (ii), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
                            ``(iii) a significant reduction in the 
                        income of the household due to divorce or 
                        death; or
                            ``(iv) a significant increase in basic 
                        expenses of the homeowner or an immediate 
                        family member of the homeowner (including the 
                        spouse, child, or parent for whom the homeowner 
                        provides substantial care or financial 
                        assistance) due to--
                                    ``(I) an unexpected or significant 
                                increase in medical expenses;
                                    ``(II) a divorce;
                                    ``(III) unexpected and significant 
                                damage to the property, the repair of 
                                which will not be covered by private or 
                                public insurance; or
                                    ``(IV) a large property-tax 
                                increase; or'';
            (2) by striking the matter that follows subparagraph (C); 
        and
            (3) by adding at the end the following:
                    ``(D) the Secretary of Housing and Urban 
                Development determines that the annual income of the 
                homeowner is no greater than the annual income 
                established by the Secretary as being of low- or 
                moderate-income.''.

SEC. 128. PRE-PURCHASE HOMEOWNERSHIP COUNSELING DEMONSTRATION.

    (a) Establishment of Program.--For the period beginning on the date 
of enactment of this title and ending on the date that is 3 years after 
such date of enactment, the Secretary of Housing and Urban Development 
shall establish and conduct a demonstration program to test the 
effectiveness of alternative forms of pre-purchase homeownership 
counseling for eligible homebuyers.
    (b) Forms of Counseling.--The Secretary of Housing and Urban 
Development shall provide to eligible homebuyers pre-purchase 
homeownership counseling under this section in the form of--
            (1) telephone counseling;
            (2) individualized in-person counseling;
            (3) web-based counseling;
            (4) counseling classes; or
            (5) any other form or type of counseling that the Secretary 
        may, in his discretion, determine appropriate.
    (c) Size of Program.--The Secretary shall make available the pre-
purchase homeownership counseling described in subsection (b) to not 
more than 3,000 eligible homebuyers in any given year.
    (d) Incentive to Participate.--The Secretary of Housing and Urban 
Development may provide incentives to eligible homebuyers to 
participate in the demonstration program established under subsection 
(a). Such incentives may include the reduction of any insurance premium 
charges owed by the eligible homebuyer to the Secretary.
    (e) Eligible Homebuyer Defined.--For purposes of this section an 
``eligible homebuyer'' means a first-time homebuyer who has been 
approved for a home loan with a loan-to-value ratio between 97 percent 
and 98.5 percent.
    (f) Report to Congress.--The Secretary of Housing and Urban 
Development shall report to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representative--
            (1) on an annual basis, on the progress and results of the 
        demonstration program established under subsection (a); and
            (2) for the period beginning on the date of enactment of 
        this title and ending on the date that is 5 years after such 
        date of enactment, on the payment history and delinquency rates 
        of eligible homebuyers who participated in the demonstration 
        program.

SEC. 129. FRAUD PREVENTION.

    Section 1014 of title 18, United States Code, is amended in the 
first sentence--
            (1) by inserting ``the Federal Housing Administration'' 
        before ``the Farm Credit Administration''; and
            (2) by striking ``commitment, or loan'' and inserting 
        ``commitment, loan, or insurance agreement or application for 
        insurance or a guarantee''.

SEC. 130. LIMITATION ON MORTGAGE INSURANCE PREMIUM INCREASES.

    (a) In General.--Notwithstanding any other provision of law, 
including any provision of this title and any amendment made by this 
title--
            (1) for the period beginning on the date of the enactment 
        of this title and ending on October 1, 2009, the premiums 
        charged for mortgage insurance under multifamily housing 
        programs under the National Housing Act may not be increased 
        above the premium amounts in effect under such program on 
        October 1, 2006, unless the Secretary of Housing and Urban 
        Development determines that, absent such increase, insurance of 
        additional mortgages under such program would, under the 
        Federal Credit Reform Act of 1990, require the appropriation of 
        new budget authority to cover the costs (as such term is 
        defined in section 502 of the Federal Credit Reform Act of 1990 
        (2 U.S.C. 661a) of such insurance; and
            (2) a premium increase pursuant to paragraph (1) may be 
        made only if not less than 30 days prior to such increase 
        taking effect, the Secretary of Housing and Urban Development--
                    (A) notifies the Committee on Banking, Housing, and 
                Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives of 
                such increase; and
                    (B) publishes notice of such increase in the 
                Federal Register.
    (b) Waiver.--The Secretary of Housing and Urban Development may 
waive the 30-day notice requirement under subsection (a)(2), if the 
Secretary determines that waiting 30-days before increasing premiums 
would cause substantial damage to the solvency of multifamily housing 
programs under the National Housing Act.

SEC. 131. SAVINGS PROVISION.

    Any mortgage insured under title II of the National Housing Act 
before the date of enactment of this subtitle shall continue to be 
governed by the laws, regulations, orders, and terms and conditions to 
which it was subject on the day before the date of the enactment of 
this subtitle.

SEC. 132. IMPLEMENTATION.

    The Secretary of Housing and Urban Development shall by notice 
establish any additional requirements that may be necessary to 
immediately carry out the provisions of this subtitle. The notice shall 
take effect upon issuance.

SEC. 133. MORATORIUM ON IMPLEMENTATION OF RISK-BASED PREMIUMS.

    For the 12-month period beginning on the date of enactment of this 
title, the Secretary of Housing and Urban Development shall not enact, 
execute, or take any action to make effective the planned 
implementation of risk-based premiums, which are designed for mortgage 
lenders to offer borrowers an FHA-insured product that provides a range 
of mortgage insurance premium pricing, based on the risk the insurance 
contract represents, as such planned implementation was set forth in 
the Notice published in the Federal Register on September 20, 2007 
(Vol. 72, No. 182, Page 53872).

          Subtitle B--Manufactured Housing Loan Modernization

SEC. 141. SHORT TITLE.

    This subtitle may be cited as the ``FHA Manufactured Housing Loan 
Modernization Act of 2008''.

SEC. 142. PURPOSES.

    The purposes of this subtitle are--
            (1) to provide adequate funding for FHA-insured 
        manufactured housing loans for low- and moderate-income 
        homebuyers during all economic cycles in the manufactured 
        housing industry;
            (2) to modernize the FHA title I insurance program for 
        manufactured housing loans to enhance participation by Ginnie 
        Mae and the private lending markets; and
            (3) to adjust the low loan limits for title I manufactured 
        home loan insurance to reflect the increase in costs since such 
        limits were last increased in 1992 and to index the limits to 
        inflation.

SEC. 143. EXCEPTION TO LIMITATION ON FINANCIAL INSTITUTION PORTFOLIO.

    The second sentence of section 2(a) of the National Housing Act (12 
U.S.C. 1703(a)) is amended--
            (1) by striking ``In no case'' and inserting ``Other than 
        in connection with a manufactured home or a lot on which to 
        place such a home (or both), in no case''; and
            (2) by striking ``: Provided, That with'' and inserting ``. 
        With''.

SEC. 144. INSURANCE BENEFITS.

    (a) In General.--Subsection (b) of section 2 of the National 
Housing Act (12 U.S.C. 1703(b)), is amended by adding at the end the 
following new paragraph:
            ``(8) Insurance benefits for manufactured housing loans.--
        Any contract of insurance with respect to loans, advances of 
        credit, or purchases in connection with a manufactured home or 
        a lot on which to place a manufactured home (or both) for a 
        financial institution that is executed under this title after 
        the date of the enactment of the FHA Manufactured Housing Loan 
        Modernization Act of 2008 by the Secretary shall be conclusive 
        evidence of the eligibility of such financial institution for 
        insurance, and the validity of any contract of insurance so 
        executed shall be incontestable in the hands of the bearer from 
        the date of the execution of such contract, except for fraud or 
        misrepresentation on the part of such institution.''.
    (b) Applicability.--The amendment made by subsection (a) shall only 
apply to loans that are registered or endorsed for insurance after the 
date of the enactment of this title.

SEC. 145. MAXIMUM LOAN LIMITS.

    (a) Dollar Amounts.--Paragraph (1) of section 2(b) of the National 
Housing Act (12 U.S.C. 1703(b)(1)) is amended--
            (1) in clause (ii) of subparagraph (A), by striking 
        ``$17,500'' and inserting ``$25,090'';
            (2) in subparagraph (C) by striking ``$48,600'' and 
        inserting ``$69,678'';
            (3) in subparagraph (D) by striking ``$64,800'' and 
        inserting ``$92,904'';
            (4) in subparagraph (E) by striking ``$16,200'' and 
        inserting ``$23,226''; and
            (5) by realigning subparagraphs (C), (D), and (E) 2 ems to 
        the left so that the left margins of such subparagraphs are 
        aligned with the margins of subparagraphs (A) and (B).
    (b) Annual Indexing.--Subsection (b) of section 2 of the National 
Housing Act (12 U.S.C. 1703(b)), as amended by the preceding provisions 
of this title, is further amended by adding at the end the following 
new paragraph:
            ``(9) Annual indexing of manufactured housing loans.--The 
        Secretary shall develop a method of indexing in order to 
        annually adjust the loan limits established in subparagraphs 
        (A)(ii), (C), (D), and (E) of this subsection. Such index shall 
        be based on the manufactured housing price data collected by 
        the United States Census Bureau. The Secretary shall establish 
        such index no later than 1 year after the date of the enactment 
        of the FHA Manufactured Housing Loan Modernization Act of 
        2008.''
    (c) Technical and Conforming Changes.--Paragraph (1) of section 
2(b) of the National Housing Act (12 U.S.C. 1703(b)(1)) is amended--
            (1) by striking ``No'' and inserting ``Except as provided 
        in the last sentence of this paragraph, no''; and
            (2) by adding after and below subparagraph (G) the 
        following:
    ``The Secretary shall, by regulation, annually increase the dollar 
amount limitations in subparagraphs (A)(ii), (C), (D), and (E) (as such 
limitations may have been previously adjusted under this sentence) in 
accordance with the index established pursuant to paragraph (9).''.

SEC. 146. INSURANCE PREMIUMS.

    Subsection (f) of section 2 of the National Housing Act (12 U.S.C. 
1703(f)) is amended--
            (1) by inserting ``(1) Premium charges.--'' after ``(f)''; 
        and
            (2) by adding at the end the following new paragraph:
    ``(2) Manufactured Home Loans.--Notwithstanding paragraph (1), in 
the case of a loan, advance of credit, or purchase in connection with a 
manufactured home or a lot on which to place such a home (or both), the 
premium charge for the insurance granted under this section shall be 
paid by the borrower under the loan or advance of credit, as follows:
            ``(A) At the time of the making of the loan, advance of 
        credit, or purchase, a single premium payment in an amount not 
        to exceed 2.25 percent of the amount of the original insured 
        principal obligation.
            ``(B) In addition to the premium under subparagraph (A), 
        annual premium payments during the term of the loan, advance, 
        or obligation purchased in an amount not exceeding 1.0 percent 
        of the remaining insured principal balance (excluding the 
        portion of the remaining balance attributable to the premium 
        collected under subparagraph (A) and without taking into 
        account delinquent payments or prepayments).
            ``(C) Premium charges under this paragraph shall be 
        established in amounts that are sufficient, but do not exceed 
        the minimum amounts necessary, to maintain a negative credit 
        subsidy for the program under this section for insurance of 
        loans, advances of credit, or purchases in connection with a 
        manufactured home or a lot on which to place such a home (or 
        both), as determined based upon risk to the Federal Government 
        under existing underwriting requirements.
            ``(D) The Secretary may increase the limitations on premium 
        payments to percentages above those set forth in subparagraphs 
        (A) and (B), but only if necessary, and not in excess of the 
        minimum increase necessary, to maintain a negative credit 
        subsidy as described in subparagraph (C).''.

SEC. 147. TECHNICAL CORRECTIONS.

    (a) Dates.--Subsection (a) of section 2 of the National Housing Act 
(12 U.S.C. 1703(a)) is amended--
            (1) by striking ``on and after July 1, 1939,'' each place 
        such term appears; and
            (2) by striking ``made after the effective date of the 
        Housing Act of 1954''.
    (b) Authority of Secretary.--Subsection (c) of section 2 of the 
National Housing Act (12 U.S.C. 1703(c)) is amended to read as follows:
    ``(c) Handling and Disposal of Property.--
            ``(1) Authority of secretary.--Notwithstanding any other 
        provision of law, the Secretary may--
                    ``(A) deal with, complete, rent, renovate, 
                modernize, insure, or assign or sell at public or 
                private sale, or otherwise dispose of, for cash or 
                credit in the Secretary's discretion, and upon such 
                terms and conditions and for such consideration as the 
                Secretary shall determine to be reasonable, any real or 
                personal property conveyed to or otherwise acquired by 
                the Secretary, in connection with the payment of 
                insurance heretofore or hereafter granted under this 
                title, including any evidence of debt, contract, claim, 
                personal property, or security assigned to or held by 
                him in connection with the payment of insurance 
                heretofore or hereafter granted under this section; and
                    ``(B) pursue to final collection, by way of 
                compromise or otherwise, all claims assigned to or held 
                by the Secretary and all legal or equitable rights 
                accruing to the Secretary in connection with the 
                payment of such insurance, including unpaid insurance 
                premiums owed in connection with insurance made 
                available by this title.
            ``(2) Advertisements for proposals.--Section 3709 of the 
        Revised Statutes shall not be construed to apply to any 
        contract of hazard insurance or to any purchase or contract for 
        services or supplies on account of such property if the amount 
        thereof does not exceed $25,000.
            ``(3) Delegation of authority.--The power to convey and to 
        execute in the name of the Secretary, deeds of conveyance, 
        deeds of release, assignments and satisfactions of mortgages, 
        and any other written instrument relating to real or personal 
        property or any interest therein heretofore or hereafter 
        acquired by the Secretary pursuant to the provisions of this 
        title may be exercised by an officer appointed by the Secretary 
        without the execution of any express delegation of power or 
        power of attorney. Nothing in this subsection shall be 
        construed to prevent the Secretary from delegating such power 
        by order or by power of attorney, in the Secretary's 
        discretion, to any officer or agent the Secretary may 
        appoint.''.

SEC. 148. REVISION OF UNDERWRITING CRITERIA.

    (a) In General.--Subsection (b) of section 2 of the National 
Housing Act (12 U.S.C. 1703(b)), as amended by the preceding provisions 
of this title, is further amended by adding at the end the following 
new paragraph:
            ``(10) Financial soundness of manufactured housing 
        program.--The Secretary shall establish such underwriting 
        criteria for loans and advances of credit in connection with a 
        manufactured home or a lot on which to place a manufactured 
        home (or both), including such loans and advances represented 
        by obligations purchased by financial institutions, as may be 
        necessary to ensure that the program under this title for 
        insurance for financial institutions against losses from such 
        loans, advances of credit, and purchases is financially 
        sound.''.
    (b) Timing.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this title, the Secretary of 
Housing and Urban Development shall revise the existing underwriting 
criteria for the program referred to in paragraph (10) of section 2(b) 
of the National Housing Act (as added by subsection (a) of this 
section) in accordance with the requirements of such paragraph.

SEC. 149. PROHIBITION AGAINST KICKBACKS AND UNEARNED FEES.

    Title I of the National Housing Act is amended by adding at the end 
of section 9 the following new section:

``SEC. 10. PROHIBITION AGAINST KICKBACKS AND UNEARNED FEES.

    ``(a) In General.--Except as provided in subsection (b), the 
provisions of sections 3, 8, 16, 17, 18, and 19 of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) shall apply 
to each sale of a manufactured home financed with an FHA-insured loan 
or extension of credit, as well as to services rendered in connection 
with such transactions.
    ``(b) Authority of the Secretary.--The Secretary is authorized to 
determine the manner and extent to which the provisions of sections 3, 
8, 16, 17, 18, and 19 of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2601 et seq.) may reasonably be applied to the 
transactions described in subsection (a), and to grant such exemptions 
as may be necessary to achieve the purposes of this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) the term `federally related mortgage loan' as used in 
        sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2601 et seq.) shall include 
        an FHA-insured loan or extension of credit made to a borrower 
        for the purpose of purchasing a manufactured home that the 
        borrower intends to occupy as a personal residence; and
            ``(2) the term `real estate settlement service' as used in 
        sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2601 et seq.) shall include 
        any service rendered in connection with a loan or extension of 
        credit insured by the Federal Housing Administration for the 
        purchase of a manufactured home.
    ``(d) Unfair and Deceptive Practices.--In connection with the 
purchase of a manufactured home financed with a loan or extension of 
credit insured by the Federal Housing Administration under this title, 
the Secretary shall prohibit acts or practices in connection with loans 
or extensions of credit that the Secretary finds to be unfair, 
deceptive, or otherwise not in the interests of the borrower.''.

SEC. 150. LEASEHOLD REQUIREMENTS.

    Subsection (b) of section 2 of the National Housing Act (12 U.S.C. 
1703(b)), as amended by the preceding provisions of this title, is 
further amended by adding at the end the following new paragraph:
            ``(11) Leasehold requirements.--No insurance shall be 
        granted under this section to any such financial institution 
        with respect to any obligation representing any such loan, 
        advance of credit, or purchase by it, made for the purposes of 
        financing a manufactured home which is intended to be situated 
        in a manufactured home community pursuant to a lease, unless 
        such lease--
                    ``(A) expires not less than 3 years after the 
                origination date of the obligation;
                    ``(B) is renewable upon the expiration of the 
                original 3 year term by successive 1 year terms; and
                    ``(C) requires the lessor to provide the lessee 
                written notice of termination of the lease not less 
                than 180 days prior to the expiration of the current 
                lease term in the event the lessee is required to move 
                due to the closing of the manufactured home community, 
                and further provides that failure to provide such 
                notice to the mortgagor in a timely manner will cause 
                the lease term, at its expiration, to automatically 
                renew for an additional 1 year term.''.

     TITLE II--MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS

SEC. 201. TEMPORARY INCREASE IN MAXIMUM LOAN GUARANTY AMOUNT FOR 
              CERTAIN HOUSING LOANS GUARANTEED BY THE SECRETARY OF 
              VETERANS AFFAIRS.

    Notwithstanding subparagraph (C) of section 3703(a)(1) of title 38, 
United States Code, for purposes of any loan described in subparagraph 
(A)(i)(IV) of such section that is originated during the period 
beginning on the date of the enactment of this Act and ending on 
December 31, 2008, the term ``maximum guaranty amount'' shall mean an 
amount equal to 25 percent of the higher of--
            (1) the limitation determined under section 305(a)(2) of 
        the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
        1454(a)(2)) for the calendar year in which the loan is 
        originated for a single-family residence; or
            (2) 125 percent of the area median price for a single-
        family residence, but in no case to exceed 175 percent of the 
        limitation determined under such section 305(a)(2) for the 
        calendar year in which the loan is originated for a single-
        family residence.

SEC. 202. COUNSELING ON MORTGAGE FORECLOSURES FOR MEMBERS OF THE ARMED 
              FORCES RETURNING FROM SERVICE ABROAD.

    (a) In General.--The Secretary of Defense shall develop and 
implement a program to advise members of the Armed Forces (including 
members of the National Guard and Reserve) who are returning from 
service on active duty abroad (including service in Operation Iraqi 
Freedom and Operation Enduring Freedom) on actions to be taken by such 
members to prevent or forestall mortgage foreclosures.
    (b) Elements.--The program required by subsection (a) shall include 
the following:
            (1) Credit counseling.
            (2) Home mortgage counseling.
            (3) Such other counseling and information as the Secretary 
        considers appropriate for purposes of the program.
    (c) Timing of Provision of Counseling.--Counseling and other 
information under the program required by subsection (a) shall be 
provided to a member of the Armed Forces covered by the program as soon 
as practicable after the return of the member from service as described 
in subsection (a).

SEC. 203. ENHANCEMENT OF PROTECTIONS FOR SERVICEMEMBERS RELATING TO 
              MORTGAGES AND MORTGAGE FORECLOSURES.

    (a) Extension of Period of Protections Against Mortgage 
Foreclosures.--
            (1) Extension of protection period.--Subsection (c) of 
        section 303 of the Servicemembers Civil Relief Act (50 U.S.C. 
        App. 533) is amended by striking ``90 days'' and inserting ``9 
        months''.
            (2) Extension of stay of proceedings period.--Subsection 
        (b) of such section is amended by striking ``90 days'' and 
        inserting ``9 months''.
    (b) Treatment of Mortgages as Obligations Subject to Interest Rate 
Limitation.--Section 207 of the Servicemembers Civil Relief Act (50 
U.S.C. App. 527) is amended--
            (1) in subsection (a)(1), by striking ``in excess of 6 
        percent'' the second place it appears and all that follows and 
        inserting ``in excess of 6 percent--
                    ``(A) during the period of military service and one 
                year thereafter, in the case of an obligation or 
                liability consisting of a mortgage, trust deed, or 
                other security in the nature of a mortgage; or
                    ``(B) during the period of military service, in the 
                case of any other obligation or liability.''; and
            (2) by striking subsection (d) and inserting the following 
        new subsection:
    ``(d) Definitions.--In this section:
            ``(1) Interest.--The term `interest' includes service 
        charges, renewal charges, fees, or any other charges (except 
        bona fide insurance) with respect to an obligation or 
        liability.
            ``(2) Obligation or liability.--The term `obligation or 
        liability' includes an obligation or liability consisting of a 
        mortgage, trust deed, or other security in the nature of a 
        mortgage.''.
    (c) Effective Date; Sunset.--
            (1) Effective date.--The amendment made by subsection (a) 
        shall take effect on the date of the enactment of this Act.
            (2) Sunset.--The amendments made by subsection (a) shall 
        expire on December 31, 2010. Effective January 1, 2011, the 
        provisions of subsections (b) and (c) of section 303 of the 
        Servicemembers Civil Relief Act, as in effect on the day before 
        the date of the enactment of this Act, are hereby revived.

TITLE III--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

SEC. 301. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
              FORECLOSED HOMES.

    (a) Direct Appropriations.--There are appropriated out of any money 
in the Treasury not otherwise appropriated for the fiscal year 2008, 
$4,000,000,000, to remain available until expended, for assistance to 
States and units of general local government (as such terms are defined 
in section 102 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5302)) for the redevelopment of abandoned and foreclosed upon 
homes and residential properties.
    (b) Allocation of Appropriated Amounts.--
            (1) In general.--The amounts appropriated or otherwise made 
        available to States and units of general local government under 
        this section shall be allocated based on a funding formula 
        established by the Secretary of Housing and Urban Development 
        (in this title referred to as the ``Secretary'').
            (2) Formula to be devised swiftly.--The funding formula 
        required under paragraph (1) shall be established not later 
        than 60 days after the date of enactment of this section.
            (3) Criteria.--The funding formula required under paragraph 
        (1) shall ensure that any amounts appropriated or otherwise 
        made available under this section are allocated to States and 
        units of general local government with the greatest need, as 
        such need is determined in the discretion of the Secretary 
        based on--
                    (A) the number and percentage of home foreclosures 
                in each State or unit of general local government;
                    (B) the number and percentage of homes financed by 
                a subprime mortgage related loan in each State or unit 
                of general local government; and
                    (C) the number and percentage of homes in default 
                or delinquency in each State or unit of general local 
                government.
            (4) Distribution.--Amounts appropriated or otherwise made 
        available under this section shall be distributed according to 
        the funding formula established by the Secretary under 
        paragraph (1) not later than 30 days after the establishment of 
        such formula.
    (c) Use of Funds.--
            (1) In general.--Any State or unit of general local 
        government that receives amounts pursuant to this section 
        shall, not later than 18 months after the receipt of such 
        amounts, use such amounts to purchase and redevelop abandoned 
        and foreclosed homes and residential properties.
            (2) Priority.--Any State or unit of general local 
        government that receives amounts pursuant to this section shall 
        in distributing such amounts give priority emphasis and 
        consideration to those metropolitan areas, metropolitan cities, 
        urban areas, rural areas, low- and moderate-income areas, and 
        other areas with the greatest need, including those--
                    (A) with the greatest percentage of home 
                foreclosures;
                    (B) with the highest percentage of homes financed 
                by a subprime mortgage related loan; and
                    (C) identified by the State or unit of general 
                local government as likely to face a significant rise 
                in the rate of home foreclosures.
            (3) Eligible uses.--Amounts made available under this 
        section may be used to--
                    (A) establish financing mechanisms for purchase and 
                redevelopment of foreclosed upon homes and residential 
                properties, including such mechanisms as soft-seconds, 
                loan loss reserves, and shared-equity loans for low- 
                and moderate-income homebuyers;
                    (B) purchase and rehabilitate homes and residential 
                properties that have been abandoned or foreclosed upon, 
                in order to sell, rent, or redevelop such homes and 
                properties;
                    (C) establish land banks for homes that have been 
                foreclosed upon; and
                    (D) demolish blighted structures.
    (d) Limitations.--
            (1) On purchases.--Any purchase of a foreclosed upon home 
        or residential property under this section shall be at a 
        discount from the current market appraised value of the home or 
        property, taking into account its current condition, and such 
        discount shall ensure that purchasers are paying below-market 
        value for the home or property.
            (2) Sale of homes.--If an abandoned or foreclosed upon home 
        or residential property is purchased, redeveloped, or otherwise 
        sold to an individual as a primary residence, then such sale 
        shall be in an amount equal to or less than the cost to acquire 
        and redevelop or rehabilitate such home or property up to a 
        decent, safe, and habitable condition.
            (3) Reinvestment of profits.--
                    (A) Profits from sales, rentals, and 
                redevelopment.--
                            (i) 5-year reinvestment period.--During the 
                        5-year period following the date of enactment 
                        of this Act, any revenue generated from the 
                        sale, rental, redevelopment, rehabilitation, or 
                        any other eligible use that is in excess of the 
                        cost to acquire and redevelop (including 
                        reasonable development fees) or rehabilitate an 
                        abandoned or foreclosed upon home or 
                        residential property shall be provided to and 
                        used by the State or unit of general local 
                        government in accordance with, and in 
                        furtherance of, the intent and provisions of 
                        this section.
                            (ii) Deposits in the treasury.--
                                    (I) Profits.--Upon the expiration 
                                of the 5-year period set forth under 
                                clause (i), any revenue generated from 
                                the sale, rental, redevelopment, 
                                rehabilitation, or any other eligible 
                                use that is in excess of the cost to 
                                acquire and redevelop (including 
                                reasonable development fees) or 
                                rehabilitate an abandoned or foreclosed 
                                upon home or residential property shall 
                                be deposited in the Treasury of the 
                                United States as miscellaneous 
                                receipts, unless the Secretary approves 
                                a request to use the funds for purposes 
                                under this Act.
                                    (II) Other amounts.--Upon the 
                                expiration of the 5-year period set 
                                forth under clause (i), any other 
                                revenue not described under subclause 
                                (I) generated from the sale, rental, 
                                redevelopment, rehabilitation, or any 
                                other eligible use of an abandoned or 
                                foreclosed upon home or residential 
                                property shall be deposited in the 
                                Treasury of the United States as 
                                miscellaneous receipts.
                    (B) Other revenues.--Any revenue generated under 
                subparagraphs (A), (C) or (D) of subsection (c)(3) 
                shall be provided to and used by the State or unit of 
                general local government in accordance with, and in 
                furtherance of, the intent and provisions of this 
                section.
    (e) Rules of Construction.--
            (1) In general.--Except as otherwise provided by this 
        section, amounts appropriated, revenues generated, or amounts 
        otherwise made available to States and units of general local 
        government under this section shall be treated as though such 
        funds were community development block grant funds under title 
        I of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5301 et seq.).
            (2) No match.--No matching funds shall be required in order 
        for a State or unit of general local government to receive any 
        amounts under this section.
    (f) Authority to Specify Alternative Requirements.--
            (1) In general.--In administering any amounts appropriated 
        or otherwise made available under this section, the Secretary 
        may specify alternative requirements to any provision under 
        title I of the Housing and Community Development Act of 1974 
        (except for those related to fair housing, nondiscrimination, 
        labor standards, and the environment) in accordance with the 
        terms of this section and for the sole purpose of expediting 
        the use of such funds.
            (2) Notice.--The Secretary shall provide written notice of 
        its intent to exercise the authority to specify alternative 
        requirements under paragraph (1) to the Committee on Banking, 
        Housing and Urban Affairs of the Senate and the Committee on 
        Financial Services of the House of Representatives not later 
        than 10 business days before such exercise of authority is to 
        occur.
            (3) Low and moderate income requirement.--
                    (A) In general.--Notwithstanding the authority of 
                the Secretary under paragraph (1)--
                            (i) all of the funds appropriated or 
                        otherwise made available under this section 
                        shall be used with respect to individuals and 
                        families whose income does not exceed 120 
                        percent of area median income; and
                            (ii) not less than 25 percent of the funds 
                        appropriated or otherwise made available under 
                        this section shall be used for the purchase and 
                        redevelopment of abandoned or foreclosed upon 
                        homes or residential properties that will be 
                        used to house individuals or families whose 
                        incomes do not exceed 50 percent of area median 
                        income.
                    (B) Recurrent requirement.--The Secretary shall, by 
                rule or order, ensure, to the maximum extent 
                practicable and for the longest feasible term, that the 
                sale, rental, or redevelopment of abandoned and 
                foreclosed upon homes and residential properties under 
                this section remain affordable to individuals or 
                families described in subparagraph (A).
    (g) Periodic Audits.--In consultation with the Secretary of Housing 
and Urban Development, the Comptroller General of the United States 
shall conduct periodic audits to ensure that funds appropriated, made 
available, or otherwise distributed under this section are being used 
in a manner consistent with the criteria provided in this section.

SEC. 302. NATIONWIDE DISTRIBUTION OF RESOURCES.

    Notwithstanding any other provision of this Act or the amendments 
made by this Act, each State shall receive not less than 0.5 percent of 
funds made available under section 301 (relating to emergency 
assistance for the redevelopment of abandoned and foreclosed homes).

SEC. 303. LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT DOMAIN.

    No State or unit of general local government may use any amounts 
received pursuant to section 301 to fund any project that seeks to use 
the power of eminent domain, unless eminent domain is employed only for 
a public use: Provided, That for purposes of this section, public use 
shall not be construed to include economic development that primarily 
benefits private entities.

SEC. 304. LIMITATION ON DISTRIBUTION OF FUNDS.

    (a) In General.--None of the funds made available under this title 
or title IV shall be distributed to--
            (1) an organization which has been indicted for a violation 
        under Federal law relating to an election for Federal office; 
        or
            (2) an organization which employs applicable individuals.
    (b) Applicable Individuals Defined.--In this section, the term 
``applicable individual'' means an individual who--
            (1) is--
                    (A) employed by the organization in a permanent or 
                temporary capacity;
                    (B) contracted or retained by the organization; or
                    (C) acting on behalf of, or with the express or 
                apparent authority of, the organization; and
            (2) has been indicted for a violation under Federal law 
        relating to an election for Federal office.

SEC. 305. COUNSELING INTERMEDIARIES.

    Notwithstanding any other provision of this Act, the amount 
appropriated under section 301(a) of this Act shall be $3,920,000,000 
and the amount appropriated under section 401 of this Act shall be 
$180,000,000: Provided, That of amounts appropriated under such section 
401 $30,000,000 shall be used by the Neighborhood Reinvestment 
Corporation (referred to in this section as the ``NRC'') to make grants 
to counseling intermediaries approved by the Department of Housing and 
Urban Development or the NRC to hire attorneys to assist homeowners who 
have legal issues directly related to the homeowner's foreclosure, 
delinquency or short sale. Such attorneys shall be capable of assisting 
homeowners of owner-occupied homes with mortgages in default, in danger 
of default, or subject to or at risk of foreclosure and who have legal 
issues that cannot be handled by counselors already employed by such 
intermediaries: Provided, That of the amounts provided for in the prior 
provisos the NRC shall give priority consideration to counseling 
intermediaries and legal organizations that (1) provide legal 
assistance in the 100 metropolitan statistical areas (as defined by the 
Director of the Office of Management and Budget) with the highest home 
foreclosure rates, and (2) have the capacity to begin using the 
financial assistance within 90 days after receipt of the assistance: 
Provided further, That no funds provided under this Act shall be used 
to provide, obtain, or arrange on behalf of a homeowner, legal 
representation involving or for the purposes of civil litigation.

                 TITLE IV--HOUSING COUNSELING RESOURCES

SEC. 401. HOUSING COUNSELING RESOURCES.

    There are appropriated out of any money in the Treasury not 
otherwise appropriated for the fiscal year 2008, for an additional 
amount for the ``Neighborhood Reinvestment Corporation--Payment to the 
Neighborhood Reinvestment Corporation'' $100,000,000, to remain 
available until September 30, 2008, for foreclosure mitigation 
activities under the terms and conditions contained in the second 
undesignated paragraph (beginning with the phrase ``For an additional 
amount'') under the heading ``Neighborhood Reinvestment Corporation--
Payment to the Neighborhood Reinvestment Corporation'' of Public Law 
110-161.

SEC. 402. CREDIT COUNSELING.

    (a) In General.--Entities approved by the Neighborhood Reinvestment 
Corporation or the Secretary and State housing finance entities 
receiving funds under this title shall work to identify and coordinate 
with non-profit organizations operating national or statewide toll-free 
foreclosure prevention hotlines, including those that--
            (1) serve as a consumer referral source and data repository 
        for borrowers experiencing some form of delinquency or 
        foreclosure;
            (2) connect callers with local housing counseling agencies 
        approved by the Neighborhood Reinvestment Corporation or the 
        Secretary to assist with working out a positive resolution to 
        their mortgage delinquency or foreclosure; or
            (3) facilitate or offer free assistance to help homeowners 
        to understand their options, negotiate solutions, and find the 
        best resolution for their particular circumstances.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Mortgage Disclosure Improvement 
Act of 2008''.

SEC. 502. ENHANCED MORTGAGE LOAN DISCLOSURES.

    (a) Truth in Lending Act Disclosures.--Section 128(b)(2) of the 
Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended--
            (1) by inserting ``(A)'' before ``In the'';
            (2) by striking ``a residential mortgage transaction, as 
        defined in section 103(w)'' and inserting ``any extension of 
        credit that is secured by the dwelling of a consumer'';
            (3) by striking ``before the credit is extended, or'';
            (4) by inserting ``, which shall be at least 7 business 
        days before consummation of the transaction'' after ``written 
        application'';
            (5) by striking ``, whichever is earlier''; and
            (6) by striking ``If the'' and all that follows through the 
        end of the paragraph and inserting the following:
            ``(B) In the case of an extension of credit that is secured 
        by the dwelling of a consumer, the disclosures provided under 
        subparagraph (A), shall be in addition to the other disclosures 
        required by subsection (a), and shall--
                    ``(i) state in conspicuous type size and format, 
                the following: `You are not required to complete this 
                agreement merely because you have received these 
                disclosures or signed a loan application.'; and
                    ``(ii) be provided in the form of final disclosures 
                at the time of consummation of the transaction, in the 
                form and manner prescribed by this section.
            ``(C) In the case of an extension of credit that is secured 
        by the dwelling of a consumer, under which the annual rate of 
        interest is variable, or with respect to which the regular 
        payments may otherwise be variable, in addition to the other 
        disclosures required by subsection (a), the disclosures 
        provided under this subsection shall do the following:
                    ``(i) Label the payment schedule as follows: 
                `Payment Schedule: Payments Will Vary Based on Interest 
                Rate Changes'.
                    ``(ii) State in conspicuous type size and format 
                examples of adjustments to the regular required payment 
                on the extension of credit based on the change in the 
                interest rates specified by the contract for such 
                extension of credit. Among the examples required to be 
                provided under this clause is an example that reflects 
                the maximum payment amount of the regular required 
                payments on the extension of credit, based on the 
                maximum interest rate allowed under the contract, in 
                accordance with the rules of the Board. Prior to 
                issuing any rules pursuant to this clause, the Board 
                shall conduct consumer testing to determine the 
                appropriate format for providing the disclosures 
                required under this subparagraph to consumers so that 
                such disclosures can be easily understood.
            ``(D) In any case in which the disclosure statement under 
        subparagraph (A) contains an annual percentage rate of interest 
        that is no longer accurate, as determined under section 107(c), 
        the creditor shall furnish an additional, corrected statement 
        to the borrower, not later than 3 business days before the date 
        of consummation of the transaction.
            ``(E) The consumer shall receive the disclosures required 
        under this paragraph before paying any fee to the creditor or 
        other person in connection with the consumer's application for 
        an extension of credit that is secured by the dwelling of a 
        consumer. If the disclosures are mailed to the consumer, the 
        consumer is considered to have received them 3 business days 
        after they are mailed. A creditor or other person may impose a 
        fee for obtaining the consumer's credit report before the 
        consumer has received the disclosures under this paragraph, 
        provided the fee is bona fide and reasonable in amount.
            ``(F) Waiver of timeliness of disclosures.--To expedite 
        consummation of a transaction, if the consumer determines that 
        the extension of credit is needed to meet a bona fide personal 
        financial emergency, the consumer may waive or modify the 
        timing requirements for disclosures under subparagraph (A), 
        provided that--
                    ``(i) the term `bona fide personal emergency' may 
                be further defined in regulations issued by the Board;
                    ``(ii) the consumer provides to the creditor a 
                dated, written statement describing the emergency and 
                specifically waiving or modifying those timing 
                requirements, which statement shall bear the signature 
                of all consumers entitled to receive the disclosures 
                required by this paragraph; and
                    ``(iii) the creditor provides to the consumers at 
                or before the time of such waiver or modification, the 
                final disclosures required by paragraph (1).
            ``(G) The requirements of subparagraphs (B), (C), (D) and 
        (E) shall not apply to extensions of credit relating to plans 
        described in section 101(53D) of title 11, United States 
        Code.''.
    (b) Civil Liability.--Section 130(a) of the Truth in Lending Act 
(15 U.S.C. 1640(a)) is amended--
            (1) in paragraph (2)(A)(iii), by striking ``not less than 
        $200 or greater than $2,000'' and inserting ``not less than 
        $400 or greater than $4,000''; and
            (2) in the penultimate sentence of the undesignated matter 
        following paragraph (4)--
                    (A) by inserting ``or section 128(b)(2)(C)(ii),'' 
                after ``128(a),''; and
                    (B) by inserting ``or section 128(b)(2)(C)(ii)'' 
                before the period.
    (c) Effective Dates.--
            (1) General disclosures.--Except as provided in paragraph 
        (2), the amendments made by subsection (a) shall become 
        effective 12 months after the date of enactment of this Act.
            (2) Variable interest rates.--Subparagraph (C) of section 
        128(b)(2) of the Truth in Lending Act (15 U.S.C. 
        1638(b)(2)(C)), as added by subsection (a) of this section, 
        shall become effective on the earlier of--
                    (A) the compliance date established by the Board 
                for such purpose, by regulation; or
                    (B) 30 months after the date of enactment of this 
                Act.

SEC. 503. COMMUNITY DEVELOPMENT INVESTMENT AUTHORITY FOR DEPOSITORY 
              INSTITUTIONS.

    (a) Depository Institution Community Development Investments.--
            (1) National banks.--The first sentence of the paragraph 
        designated as the ``Eleventh'' of section 5136 of the Revised 
        Statutes of the United States (12 U.S.C. 24) (as amended by 
        section 305(a) of the Financial Services Regulatory Relief Act 
        of 2006) is amended by striking ``promotes the public welfare 
        by benefitting primarily'' and inserting ``is designed 
        primarily to promote the public welfare, including the welfare 
        of''.
            (2) State member banks.--The first sentence of the 23rd 
        paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 
        338a) is amended by striking ``promotes the public welfare by 
        benefitting primarily'' and inserting ``is designed primarily 
        to promote the public welfare, including the welfare of''.

SEC. 504. FEDERAL HOME LOAN BANK REFINANCING AUTHORITY FOR CERTAIN 
              RESIDENTIAL MORTGAGE LOANS.

    Section 10(j)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(j)(2) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) during the 2-year period beginning on the 
                date of enactment of this subparagraph, refinance loans 
                that are secured by a first mortgage on a primary 
                residence of any family having an income at or below 80 
                percent of the median income for the area.''.

                    TITLE VI--TAX-RELATED PROVISIONS

SEC. 601. ELECTION FOR 4-YEAR CARRYBACK OF CERTAIN NET OPERATING LOSSES 
              AND TEMPORARY SUSPENSION OF 90 PERCENT AMT LIMIT.

    (a) In General.--
            (1) 4-year carryback of certain losses.--Subparagraph (H) 
        of section 172(b)(1) of the Internal Revenue Code of 1986 
        (relating to years to which loss may be carried) is amended to 
        read as follows:
                    ``(H) Additional carryback of certain losses.--
                            ``(i) Taxable years ending during 2001 and 
                        2002.--In the case of a net operating loss for 
                        any taxable year ending during 2001 or 2002, 
                        subparagraph (A)(i) shall be applied by 
                        substituting `5' for `2' and subparagraph (F) 
                        shall not apply.
                            ``(ii) Taxable years ending during 2008 and 
                        2009.--In the case of a net operating loss with 
                        respect to any eligible taxpayer (within the 
                        meaning of section 168(k)(4)) for any taxable 
                        year ending during 2008 or 2009--
                                    ``(I) subparagraph (A)(i) shall be 
                                applied by substituting `4' for `2',
                                    ``(II) subparagraph (E)(ii) shall 
                                be applied by substituting `3' for `2', 
                                and
                                    ``(III) subparagraph (F) shall not 
                                apply.''.
            (2) Temporary suspension of 90 percent limit on certain nol 
        carrybacks and carryovers.--
                    (A) In general.--Section 56(d) of the Internal 
                Revenue Code of 1986 (relating to definition of 
                alternative tax net operating loss deduction) is 
                amended by adding at the end the following new 
                paragraph:
            ``(3) Additional adjustments.--For purposes of paragraph 
        (1)(A), in the case of an eligible taxpayer (within the meaning 
        of section 168(k)(4)), the amount described in subclause (I) of 
        paragraph (1)(A)(ii) shall be increased by the amount of the 
        net operating loss deduction allowable for the taxable year 
        under section 172 attributable to the sum of--
                    ``(A) carrybacks of net operating losses from 
                taxable years ending during 2008 and 2009, and
                    ``(B) carryovers of net operating losses to taxable 
                years ending during 2008 or 2009.''.
                    (B) Conforming amendment.--Subclause (I) of section 
                56(d)(1)(A)(i) of such Code is amended by inserting 
                ``amount of such'' before ``deduction described in 
                clause (ii)(I)''.
            (3) Effective dates.--
                    (A) Net operating losses.--The amendments made by 
                paragraph (1) shall apply to net operating losses 
                arising in taxable years ending in 2008 or 2009.
                    (B) Suspension of amt limitation.--The amendments 
                made by paragraph (2) shall apply to taxable years 
                ending after December 31, 1997.
            (4) Anti-abuse rules.--The Secretary of Treasury or the 
        Secretary's designee shall prescribe such rules as are 
        necessary to prevent the abuse of the purposes of the 
        amendments made by this subsection, including anti-stuffing 
        rules, anti-churning rules (including rules relating to sale-
        leasebacks), and rules similar to the rules under section 1091 
        of the Internal Revenue Code of 1986 relating to losses from 
        wash sales.
    (b) Election Among Stimulus Incentives.--
            (1) In general.--
                    (A) Bonus depreciation.--Section 168(k) of the 
                Internal Revenue Code of 1986 (relating to special 
                allowance for certain property acquired after December 
                31, 2007, and before January 1, 2009), as amended by 
                the Economic Stimulus Act of 2008, is amended--
                            (i) in paragraph (1), by inserting ``placed 
                        in service by an eligible taxpayer'' after 
                        ``any qualified property'', and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(4) Eligible taxpayer.--
                    ``(A) In general.--At such time and in such manner 
                as the Secretary shall prescribe, each taxpayer may 
                elect to be an eligible taxpayer with respect to 1 (and 
                only 1) of the following:
                            ``(i) This subsection and section 
                        179(b)(7).
                            ``(ii) The application of section 
                        56(d)(1)(A)(ii)(I) and section 172(b)(1)(H)(ii) 
                        in connection with net operating losses 
                        relating to taxable years ending during 2008 
                        and 2009.
                    ``(B) Eligible taxpayer.--For purposes of each of 
                the provisions described in subparagraph (A), a 
                taxpayer shall only be treated as an eligible taxpayer 
                with respect to the provision with respect to which the 
                taxpayer made the election under subparagraph (A).
                    ``(C) Election irrevocable.--An election under 
                subparagraph (A) may not be revoked except with the 
                consent of the Secretary.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall take effect as if included in section 
                103 of the Economic Stimulus Act of 2008.
            (2) Election for increased expensing.--
                    (A) In general.--Paragraph (7) of section 179(b) of 
                the Internal Revenue Code of 1986 (relating to 
                limitations), as added by the Economic Stimulus Act of 
                2008, is amended to read as follows:
            ``(7) Special rule for eligible taxpayers in 2008.--In the 
        case of any taxable year of any eligible taxpayer (within the 
        meaning of section 168(k)(4)) beginning in 2008--
                    ``(A) the dollar limitation under paragraph (1) 
                shall be $250,000,
                    ``(B) the dollar limitation under paragraph (2) 
                shall be $800,000, and
                    ``(C) the amounts described in subparagraphs (A) 
                and (B) shall not be adjusted under paragraph (5).''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall take effect as if included in section 
                102 of the Economic Stimulus Act of 2008.

SEC. 602. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; TEMPORARY 
              INCREASED VOLUME CAP FOR CERTAIN HOUSING BONDS.

    (a) Use of Qualified Mortgage Bonds Proceeds for Subprime 
Refinancing Loans.--Section 143(k) of the Internal Revenue Code of 1986 
(relating to other definitions and special rules) is amended by adding 
at the end the following new paragraph:
            ``(12) Special rules for subprime refinancings.--
                    ``(A) In general.--Notwithstanding the requirements 
                of subsection (i)(1), the proceeds of a qualified 
                mortgage issue may be used to refinance a mortgage on a 
                residence which was originally financed by the 
                mortgagor through a qualified subprime loan.
                    ``(B) Special rules.--In applying this paragraph to 
                any case in which the proceeds of a qualified mortgage 
                issue are used for any refinancing described in 
                subparagraph (A)--
                            ``(i) subsection (a)(2)(D)(i) (relating to 
                        proceeds must be used within 42 months of date 
                        of issuance) shall be applied by substituting 
                        `12-month period' for `42-month period' each 
                        place it appears,
                            ``(ii) subsection (d) (relating to 3-year 
                        requirement) shall not apply, and
                            ``(iii) subsection (e) (relating to 
                        purchase price requirement) shall be applied by 
                        using the market value of the residence at the 
                        time of refinancing in lieu of the acquisition 
                        cost.
                    ``(C) Qualified subprime loan.--The term `qualified 
                subprime loan' means an adjustable rate single-family 
                residential mortgage loan originated after December 31, 
                2001, and before January 1, 2008, that the bond issuer 
                determines would be reasonably likely to cause 
                financial hardship to the borrower if not refinanced.
                    ``(D) Termination.--This paragraph shall not apply 
                to any bonds issued after December 31, 2010.''.
    (b) Increased Volume Cap for Certain Bonds.--
            (1) In general.--Subsection (d) of section 146 of the 
        Internal Revenue Code of 1986 (relating to State ceiling) is 
        amended by adding at the end the following new paragraph:
            ``(5) Increase and set aside for housing bonds for 2008.--
                    ``(A) Increase for 2008.--In the case of calendar 
                year 2008, the State ceiling for each State shall be 
                increased by an amount equal to the greater of--
                            ``(i) $10,000,000,000 multiplied by a 
                        fraction--
                                    ``(I) the numerator of which is the 
                                population of such State, and
                                    ``(II) the denominator of which is 
                                the total population of all States, or
                            ``(ii) the amount determined under 
                        subparagraph (B).
                    ``(B) Minimum amount.--The amount determined under 
                this subparagraph is--
                            ``(i) in the case of a State (other than a 
                        possession), $90,300,606, and
                            ``(ii) in the case of a possession of the 
                        United States with a population less than the 
                        least populous State (other than a possession), 
                        the product of--
                                    ``(I) a fraction the numerator of 
                                which is $90,300,606 and the 
                                denominator of which is population of 
                                the least populous State (other than a 
                                possession), and
                                    ``(II) the population of such 
                                possession.
                        In the case of any possession of the United 
                        States not described in clause (ii), the amount 
                        determined under this subparagraph shall be 
                        zero.
                    ``(C) Set aside.--
                            ``(i) In general.--Any amount of the State 
                        ceiling for any State which is attributable to 
                        an increase under this paragraph shall be 
                        allocated solely for one or more qualified 
                        purposes.
                            ``(ii) Qualified purpose.--For purposes of 
                        this paragraph, the term `qualified purpose' 
                        means--
                                    ``(I) the issuance of exempt 
                                facility bonds used solely to provide 
                                qualified residential rental projects, 
                                or
                                    ``(II) a qualified mortgage issue 
                                (determined by substituting `12-month 
                                period' for `42-month period' each 
                                place it appears in section 
                                143(a)(2)(D)(i)).''.
            (2) Carryforward of unused limitations.--Subsection (f) of 
        section 146 of such Code (relating to elective carryforward of 
        unused limitation for specified purpose) is amended by adding 
        at the end the following new paragraph:
            ``(6) Special rules for increased volume cap under 
        subsection (d)(5).--
                    ``(A) In general.--No amount which is attributable 
                to the increase under subsection (d)(5) may be used--
                            ``(i) for a carryforward purpose other than 
                        a qualified purpose (as defined in subsection 
                        (d)(5)), and
                            ``(ii) to issue any bond after calendar 
                        year 2010.
                    ``(B) Ordering rules.--For purposes of subparagraph 
                (A), any carryforward of an issuing authority's volume 
                cap for calendar year 2008 shall be treated as 
                attributable to such increase to the extent of such 
                increase.''.
    (c) Alternative Minimum Tax Exemption for Qualified Mortgage Bonds, 
Qualified Veterans' Mortgage Bonds, and Bonds for Qualified Residential 
Rental Projects.--
            (1) In general.--Clause (ii) of section 57(a)(5)(C) of the 
        Internal Revenue Code of 1986 (relating to specified private 
        activity bonds) is amended by striking ``shall not include'' 
        and all that follows and inserting ``shall not include--
                                    ``(I) any qualified 501(c)(3) bond 
                                (as defined in section 145), or
                                    ``(II) any qualified mortgage bond 
                                (as defined in section 143(a)), any 
                                qualified veterans' mortgage bond (as 
                                defined in section 143(b)), or any 
                                exempt facility bond (as defined in 
                                section 142(a)) issued as part of an 
                                issue 95 percent or more of the net 
                                proceeds of which are to be used to 
                                provide qualified residential rental 
                                projects (as defined in section 
                                142(d)), but only if such bond is 
                                issued after the date of the enactment 
                                of this subclause and before January 1, 
                                2011.
                        Subclause (II) shall not apply to a refunding 
                        bond unless such subclause applied to the 
                        refunded bond (or in the case of a series of 
                        refundings, the original bond).''.
            (2) Conforming amendment.--The heading for section 
        57(a)(5)(C)(ii) of such Code is amended by striking ``qualified 
        501(c)(3) bonds'' and inserting ``certain bonds''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 603. CREDIT FOR CERTAIN HOME PURCHASES.

    (a) Allowance of Credit.--Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to 
nonrefundable personal credits) is amended by inserting after section 
25D the following new section:

``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual who is a 
        purchaser of a qualified principal residence during the taxable 
        year, there shall be allowed as a credit against the tax 
        imposed by this chapter an amount equal to so much of the 
        purchase price of the residence as does not exceed $7,000.
            ``(2) Allocation of credit amount.--The amount of the 
        credit allowed under paragraph (1) shall be equally divided 
        among the 2 taxable years beginning with the taxable year in 
        which the purchase of the qualified principal residence is 
        made.
    ``(b) Limitations.--
            ``(1) Date of purchase.--The credit allowed under 
        subsection (a) shall be allowed only with respect to purchases 
        made--
                    ``(A) after the date of the enactment of this 
                section, and
                    ``(B) before the date that is 12 months after such 
                date.
            ``(2) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section and section 23) for 
                the taxable year.
            ``(3) One-time only.--
                    ``(A) In general.--If a credit is allowed under 
                this section in the case of any individual (and such 
                individual's spouse, if married) with respect to the 
                purchase of any qualified principal residence, no 
                credit shall be allowed under this section in any 
                taxable year with respect to the purchase of any other 
                qualified principal residence by such individual or a 
                spouse of such individual.
                    ``(B) Joint purchase.--In the case of a purchase of 
                a qualified principal residence by 2 or more unmarried 
                individuals or by 2 married individuals filing 
                separately, no credit shall be allowed under this 
                section if a credit under this section has been allowed 
                to any of such individuals in any taxable year with 
                respect to the purchase of any other qualified 
                principal residence.
    ``(c) Qualified Principal Residence.--For purposes of this 
section--
            ``(1) In general.--The term `qualified principal residence' 
        means an eligible single-family residence that is purchased to 
        be the principal residence of the purchaser.
            ``(2) Eligible single-family residence.--
                    ``(A) In general.--The term `eligible single-family 
                residence' means a single-family structure that is a 
                residence--
                            ``(i) upon which foreclosure has been filed 
                        pursuant to the laws of the State in which the 
                        residence is located, and
                            ``(ii) which--
                                    ``(I) is a new previously 
                                unoccupied residence for which a 
                                building permit was issued and 
                                construction began on or before 
                                September 1, 2007, or
                                    ``(II) was occupied as a principal 
                                residence by the mortgagor for at least 
                                1 year prior to the foreclosure filing.
                    ``(B) Certification.--In the case of an eligible 
                single-family residence described in subparagraph 
                (A)(ii)(I), no credit shall be allowed under this 
                section unless the purchaser submits a certification by 
                the seller of such residence that such residence meets 
                the requirements of such subparagraph.
            ``(3) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121.
    ``(d) Denial of Double Benefit.--No credit shall be allowed under 
this section for any purchase for which a credit is allowed under 
section 1400C.
    ``(e) Recapture in the Case of Certain Dispositions.--In the event 
that a taxpayer--
            ``(1) disposes of the qualified principal residence with 
        respect to which a credit is allowed under subsection (a), or
            ``(2) fails to occupy such residence as the taxpayer's 
        principal residence,
at any time within 24 months after the date on which the taxpayer 
purchased such residence, then the remaining portion of the credit 
allowed under subsection (a) shall be disallowed in the taxable year 
during which such disposition occurred or in which the taxpayer failed 
to occupy the residence as a principal residence, and in any subsequent 
taxable year in which the remaining portion of the credit would, but 
for this subsection, have been allowed.
    ``(f) Special Rules.--
            ``(1) Joint purchase.--
                    ``(A) Married individuals filing separately.--In 
                the case of 2 married individuals filing separately, 
                subsection (a) shall be applied to each such individual 
                by substituting `$3,500' for `$7,000' in paragraph (1) 
                thereof.
                    ``(B) Unmarried individuals.--If 2 or more 
                individuals who are not married purchase a qualified 
                principal residence, the amount of the credit allowed 
                under subsection (a) shall be allocated among such 
                individuals in such manner as the Secretary may 
                prescribe, except that the total amount of the credits 
                allowed to all such individuals shall not exceed 
                $7,000.
            ``(2) Purchase; purchase price.--Rules similar to the rules 
        of paragraphs (2) and (3) of section 1400C(e) (as in effect on 
        the date of the enactment of this section) shall apply for 
        purposes of this section.
            ``(3) Reporting requirement.--Rules similar to the rules of 
        section 1400C(f) (as so in effect) shall apply for purposes of 
        this section.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to the purchase of any 
residence, the basis of such residence shall be reduced by the amount 
of the credit so allowed.''.
    (b) Conforming Amendments.--
            (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``and 25B'' and inserting ``, 25B, 
        and 25E''.
            (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``25E,'' after ``25D,''.
            (3) Section 25B(g)(2) of such Code is amended by striking 
        ``section 23'' and inserting ``sections 23 and 25E''.
            (4) Section 25D(c)(2) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (5) Section 26(a)(1) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (6) Section 904(i) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (7) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (36), by striking 
        the period at the end of paragraph (37) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 25E(g).''.
            (8) Section 1400C(d)(2) of such Code is amended by striking 
        ``and 25D'' and inserting ``25D, and 25E''.
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Credit for certain home purchases.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to purchases in taxable years ending after the date of the 
enactment of this Act.
    (e) Application of EGTRRA Sunset.--The amendment made by subsection 
(b)(1) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provisions 
of such Act to which such amendment relates.

SEC. 604. ADDITIONAL STANDARD DEDUCTION FOR REAL PROPERTY TAXES FOR 
              NONITEMIZERS.

    (a) In General.--Section 63(c)(1) of the Internal Revenue Code of 
1986 (defining standard deduction) is amended by striking ``and'' at 
the end of subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ``, and'', and by adding at the end the 
following new subparagraph:
                    ``(C) in the case of any taxable year beginning in 
                2008, the real property tax deduction.''.
    (b) Definition.--Section 63(c) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(8) Real property tax deduction.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the real property tax deduction is so much of the 
                amount of the eligible State and local real property 
                taxes paid or accrued by the taxpayer during the 
                taxable year which do not exceed $500 ($1,000 in the 
                case of a joint return).
                    ``(B) Eligible state and local real property 
                taxes.--For purposes of subparagraph (A), the term 
                `eligible State and local real property taxes' means 
                State and local real property taxes (within the meaning 
                of section 164), but only if the rate of tax for all 
                residential real property taxes in the jurisdiction has 
                not been increased at any time after April 2, 2008, and 
                before January 1, 2009.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 605. ELECTION TO ACCELERATE AMT AND R AND D CREDITS IN LIEU OF 
              BONUS DEPRECIATION.

    (a) In General.--Section 168(k), as amended by this Act, is amended 
by adding at the end the following new paragraph:
            ``(5) Election to accelerate amt and r and d credits in 
        lieu of bonus depreciation.--
                    ``(A) In general.--If a corporation which is an 
                eligible taxpayer (within the meaning of paragraph (4)) 
                for purposes of this subsection elects to have this 
                paragraph apply--
                            ``(i) no additional depreciation shall be 
                        allowed under paragraph (1) for any qualified 
                        property placed in service during any taxable 
                        year to which paragraph (1) would otherwise 
                        apply, and
                            ``(ii) the limitations described in 
                        subparagraph (B) for such taxable year shall be 
                        increased by an aggregate amount not in excess 
                        of the bonus depreciation amount for such 
                        taxable year.
                    ``(B) Limitations to be increased.--The limitations 
                described in this subparagraph are--
                            ``(i) the limitation under section 38(c), 
                        and
                            ``(ii) the limitation under section 53(c).
                    ``(C) Bonus depreciation amount.--For purposes of 
                this paragraph--
                            ``(i) In general.--The bonus depreciation 
                        amount for any applicable taxable year is an 
                        amount equal to the product of 20 percent and 
                        the excess (if any) of--
                                    ``(I) the aggregate amount of 
                                depreciation which would be determined 
                                under this section for property placed 
                                in service during the taxable year if 
                                no election under this paragraph were 
                                made, over
                                    ``(II) the aggregate amount of 
                                depreciation allowable under this 
                                section for property placed in service 
                                during the taxable year.
                        In the case of property which is a passenger 
                        aircraft, the amount determined under subclause 
                        (I) shall be calculated without regard to the 
                        written binding contract limitation under 
                        paragraph (2)(A)(iii)(I).
                            ``(ii) Eligible qualified property.--For 
                        purposes of clause (i), the term `eligible 
                        qualified property' means qualified property 
                        under paragraph (2), except that in applying 
                        paragraph (2) for purposes of this clause--
                                    ``(I) `March 31, 2008' shall be 
                                substituted for `December 31, 2007' 
                                each place it appears in subparagraph 
                                (A) and clauses (i) and (ii) of 
                                subparagraph (E) thereof,
                                    ``(II) only adjusted basis 
                                attributable to manufacture, 
                                construction, or production after March 
                                31, 2008, and before January 1, 2009, 
                                shall be taken into account under 
                                subparagraph (B)(ii) thereof, and
                                    ``(III) in the case of property 
                                which is a passenger aircraft, the 
                                written binding contract limitation 
                                under subparagraph (A)(iii)(I) thereof 
                                shall not apply.
                            ``(iii) Maximum amount.--The bonus 
                        depreciation amount for any applicable taxable 
                        year shall not exceed the applicable limitation 
                        under clause (iv), reduced (but not below zero) 
                        by the bonus depreciation amount for any 
                        preceding taxable year.
                            ``(iv) Applicable limitation.--For purposes 
                        of clause (iii), the term `applicable 
                        limitation' means, with respect to any eligible 
                        taxpayer, the lesser of--
                                    ``(I) $40,000,000, or
                                    ``(II) 10 percent of the sum of the 
                                amounts determined with respect to the 
                                eligible taxpayer under clauses (ii) 
                                and (iii) of subparagraph (D).
                            ``(v) Aggregation rule.--All corporations 
                        which are treated as a single employer under 
                        section 52(a) shall be treated as 1 taxpayer 
                        for purposes of applying the limitation under 
                        this subparagraph and determining the 
                        applicable limitation under clause (iv).
                    ``(D) Allocation of bonus depreciation amounts.--
                            ``(i) In general.--Subject to clauses (ii) 
                        and (iii), the taxpayer shall, at such time and 
                        in such manner as the Secretary may prescribe, 
                        specify the portion (if any) of the bonus 
                        depreciation amount which is to be allocated to 
                        each of the limitations described in 
                        subparagraph (B).
                            ``(ii) Business credit limitation.--The 
                        portion of the bonus depreciation amount 
                        allocated to the limitation described in 
                        subparagraph (B)(i) shall not exceed an amount 
                        equal to the portion of the credit allowable 
                        under section 38 for the taxable year which is 
                        allocable to business credit carryforwards to 
                        such taxable year which are--
                                    ``(I) from taxable years beginning 
                                before January 1, 2006, and
                                    ``(II) properly allocable 
                                (determined under the rules of section 
                                38(d)) to the research credit 
                                determined under section 41(a).
                            ``(iii) Alternative minimum tax credit 
                        limitation.--The portion of the bonus 
                        depreciation amount allocated to the limitation 
                        described in subparagraph (B)(ii) shall not 
                        exceed an amount equal to the portion of the 
                        minimum tax credit allowable under section 53 
                        for the taxable year which is allocable to the 
                        adjusted minimum tax imposed for taxable years 
                        beginning before January 1, 2006.
                    ``(E) Credit refundable.--Any aggregate increases 
                in the credits allowed under section 38 or 53 by reason 
                of this paragraph shall, for purposes of this title, be 
                treated as a credit allowed to the taxpayer under 
                subpart C of part IV of subchapter A.
                    ``(F) Other rules.--
                            ``(i) Election.--Any election under this 
                        paragraph (including any allocation under 
                        subparagraph (D)) may be revoked only with the 
                        consent of the Secretary.
                            ``(ii) Deduction allowed in computing 
                        minimum tax.--Notwithstanding this paragraph, 
                        paragraph (2)(G) shall apply with respect to 
                        the deduction computed under this section 
                        (after application of this paragraph) with 
                        respect to property placed in service during 
                        any applicable taxable year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007, in taxable 
years ending after such date.

SEC. 606. USE OF AMENDED INCOME TAX RETURNS TO TAKE INTO ACCOUNT 
              RECEIPT OF CERTAIN HURRICANE-RELATED CASUALTY LOSS GRANTS 
              BY DISALLOWING PREVIOUSLY TAKEN CASUALTY LOSS DEDUCTIONS.

    (a) In General.--Notwithstanding any other provision of the 
Internal Revenue Code of 1986, if a taxpayer claims a deduction for any 
taxable year with respect to a casualty loss to a personal residence 
(within the meaning of section 121 of such Code) resulting from 
Hurricane Katrina, Hurricane Rita, or Hurricane Wilma and in a 
subsequent taxable year receives a grant under Public Law 109-148, 109-
234, or 110-116 as reimbursement for such loss, such taxpayer may elect 
to file an amended income tax return for the taxable year in which such 
deduction was allowed and disallow such deduction. If elected, such 
amended return must be filed not later than the due date for filing the 
tax return for the taxable year in which the taxpayer receives such 
reimbursement or the date that is 4 months after the date of the 
enactment of this Act, whichever is later. Any increase in Federal 
income tax resulting from such disallowance if such amended return is 
filed--
            (1) shall be subject to interest on the underpaid tax for 
        one year at the underpayment rate determined under section 
        6621(a)(2) of such Code; and
            (2) shall not be subject to any penalty under such Code.
    (b) Emergency Designation.--For purposes of Senate enforcement, all 
provisions of this section are designated as emergency requirements and 
necessary to meet emergency needs pursuant to section 204 of S. Con. 
Res. 21 (110th Congress), the concurrent resolution on the budget for 
fiscal year 2008.

SEC. 607. WAIVER OF DEADLINE ON CONSTRUCTION OF GO ZONE PROPERTY 
              ELIGIBLE FOR BONUS DEPRECIATION.

    (a) In General.--Subparagraph (B) of section 1400N(d)(3) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) without regard to `and before January 1, 
                2009' in clause (i) thereof,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2007.
    (c) Emergency Designation.--For purposes of Senate enforcement, all 
provisions of this section are designated as emergency requirements and 
necessary to meet emergency needs pursuant to section 204 of S. Con. 
Res. 21 (110th Congress), the concurrent resolution on the budget for 
fiscal year 2008.

SEC. 608. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND SURROUNDING 
              AREA.

    (a) In General.--The following provisions of or relating to the 
Internal Revenue Code of 1986 shall apply, in addition to the areas 
described in such provisions, to an area with respect to which a major 
disaster has been declared by the President under section 401 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA-
1699-DR, as in effect on the date of the enactment of this Act) by 
reason of severe storms and tornados beginning on May 4, 2007, and 
determined by the President to warrant individual or individual and 
public assistance from the Federal Government under such Act with 
respect to damages attributed to such storms and tornados:
            (1) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1) of the Internal Revenue Code of 
        1986, by substituting ``May 4, 2007'' for ``August 25, 2005''.
            (2) Extension of replacement period for nonrecognition of 
        gain.--Section 405 of the Katrina Emergency Tax Relief Act of 
        2005, by substituting ``on or after May 4, 2007, by reason of 
        the May 4, 2007, storms and tornados'' for ``on or after August 
        25, 2005, by reason of Hurricane Katrina''.
            (3) Employee retention credit for employers affected by may 
        4 storms and tornados.--Section 1400R(a) of the Internal 
        Revenue Code of 1986--
                    (A) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2008'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the taxable year before May 4, 
                2007.
            (4) Special allowance for certain property acquired on or 
        after may 5, 2007.--Section 1400N(d) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' each place it appears,
                    (B) by substituting ``May 5, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2008'' for 
                ``December 31, 2007'' in paragraph (2)(A)(v),
                    (D) by substituting ``December 31, 2009'' for 
                ``December 31, 2008'' in paragraph (2)(A)(v),
                    (E) by substituting ``May 4, 2007'' for ``August 
                27, 2005'' in paragraph (3)(A),
                    (F) by substituting ``January 1, 2009'' for 
                ``January 1, 2008'' in paragraph (3)(B), and
                    (G) determined without regard to paragraph (6) 
                thereof.
            (5) Increase in expensing under section 179.--Section 
        1400N(e) of such Code, by substituting ``qualified section 179 
        Recovery Assistance property'' for ``qualified section 179 Gulf 
        Opportunity Zone property'' each place it appears.
            (6) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                clean-up cost'' for ``qualified Gulf Opportunity Zone 
                clean-up cost'' each place it appears, and
                    (B) by substituting ``beginning on May 4, 2007, and 
                ending on December 31, 2009'' for ``beginning on August 
                28, 2005, and ending on December 31, 2007'' in 
                paragraph (2) thereof.
            (7) Treatment of public utility property disaster losses.--
        Section 1400N(o) of such Code.
            (8) Treatment of net operating losses attributable to storm 
        losses.--Section 1400N(k) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                loss'' for ``qualified Gulf Opportunity Zone loss'' 
                each place it appears,
                    (B) by substituting ``after May 3, 2007, and before 
                on January 1, 2010'' for ``after August 27, 2005, and 
                before January 1, 2008'' each place it appears,
                    (C) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' in paragraph (2)(B)(ii)(I) thereof,
                    (D) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' in paragraph (2)(B)(iv) thereof, and
                    (E) by substituting ``qualified Recovery Assistance 
                casualty loss'' for ``qualified Gulf Opportunity Zone 
                casualty loss'' each place it appears.
            (9) Treatment of representations regarding income 
        eligibility for purposes of qualified rental project 
        requirements.--Section 1400N(n) of such Code.
            (10) Special rules for use of retirement funds.--Section 
        1400Q of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                distribution'' for ``qualified hurricane distribution'' 
                each place it appears,
                    (B) by substituting ``on or after May 4, 2007, and 
                before January 1, 2009'' for ``on or after August 25, 
                2005, and before January 1, 2007'' in subsection 
                (a)(4)(A)(i),
                    (C) by substituting ``qualified storm 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (D) by substituting ``after November 4, 2006, and 
                before May 5, 2007'' for ``after February 28, 2005, and 
                before August 29, 2005'' in subsection (b)(2)(B)(ii),
                    (E) by substituting ``beginning on May 4, 2007, and 
                ending on November 5, 2007'' for ``beginning on August 
                25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (F) by substituting ``qualified storm individual'' 
                for ``qualified Hurricane Katrina individual'' each 
                place it appears,
                    (G) by substituting ``December 31, 2007'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (H) by substituting ``beginning on June 4, 2007, 
                and ending on December 31, 2007'' for ``beginning on 
                September 24, 2005, and ending on December 31, 2006'' 
                in subsection (c)(4)(A)(i),
                    (I) by substituting ``May 4, 2007'' for ``August 
                25, 2005'' in subsection (c)(4)(A)(ii), and
                    (J) by substituting ``January 1, 2008'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).
    (b) Emergency Designation.--For purposes of Senate enforcement, all 
provisions of this section are designated as emergency requirements and 
necessary to meet emergency needs pursuant to section 204 of S. Con. 
Res. 21 (110th Congress), the concurrent resolution on the budget for 
fiscal year 2008.

                    TITLE VII--EMERGENCY DESIGNATION

SEC. 701. EMERGENCY DESIGNATION.

    For purposes of Senate enforcement, all provisions of this Act are 
designated as emergency requirements and necessary to meet emergency 
needs pursuant to section 204 of S. Con. Res. 21 (110th Congress), the 
concurrent resolution on the budget for fiscal year 2008.

      TITLE VIII--REIT INVESTMENT DIVERSIFICATION AND EMPOWERMENT

SEC. 801. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This title may be cited as the ``REIT Investment 
Diversification and Empowerment Act of 2008''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

                 Subtitle A--Taxable REIT Subsidiaries

SEC. 811. CONFORMING TAXABLE REIT SUBSIDIARY ASSET TEST.

    Section 856(c)(4)(B)(ii) is amended by striking ``20 percent'' and 
inserting ``25 percent''.

                        Subtitle B--Dealer Sales

SEC. 821. HOLDING PERIOD UNDER SAFE HARBOR.

    Section 857(b)(6) (relating to income from prohibited transactions) 
is amended--
            (1) by striking ``4 years'' in subparagraphs (C)(i), 
        (C)(iv), and (D)(i) and inserting ``2 years'',
            (2) by striking ``4-year period'' in subparagraphs (C)(ii), 
        (D)(ii), and (D)(iii) and inserting ``2-year period'', and
            (3) by striking ``real estate asset''and all that follows 
        through ``if'' in the matter preceding clause (i) of 
        subparagraphs (C) and (D), respectively, and inserting ``real 
        estate asset (as defined in section 856(c)(5)(B)) and which is 
        described in section 1221(a)(1) if''.

SEC. 822. DETERMINING VALUE OF SALES UNDER SAFE HARBOR.

    Section 857(b)(6) is amended--
            (1) by striking the semicolon at the end of subparagraph 
        (C)(iii) and inserting ``, or (III) the fair market value of 
        property (other than sales of foreclosure property or sales to 
        which section 1033 applies) sold during the taxable year does 
        not exceed 10 percent of the fair market value of all of the 
        assets of the trust as of the beginning of the taxable year;'', 
        and
            (2) by adding ``or'' at the end of subclause (II) of 
        subparagraph (D)(iv) and by adding at the end of such 
        subparagraph the following new subclause:
                            ``(III) the fair market value of property 
                        (other than sales of foreclosure property or 
                        sales to which section 1033 applies) sold 
                        during the taxable year does not exceed 10 
                        percent of the fair market value of all of the 
                        assets of the trust as of the beginning of the 
                        taxable year,''.

                     Subtitle C--Health Care REITs

SEC. 831. CONFORMITY FOR HEALTH CARE FACILITIES.

    (a) Related Party Rentals.--Subparagraph (B) of section 856(d)(8) 
(relating to special rule for taxable REIT subsidiaries) is amended to 
read as follows:
                    ``(B) Exception for certain lodging facilities and 
                health care property.--The requirements of this 
                subparagraph are met with respect to an interest in 
                real property which is a qualified lodging facility (as 
                defined in paragraph (9)(D)) or a qualified health care 
                property (as defined in subsection (e)(6)(D)(i)) leased 
                by the trust to a taxable REIT subsidiary of the trust 
                if the property is operated on behalf of such 
                subsidiary by a person who is an eligible independent 
                contractor. For purposes of this section, a taxable 
                REIT subsidiary is not considered to be operating or 
                managing a qualified health care property or qualified 
                lodging facility solely because it--
                            ``(i) directly or indirectly possesses a 
                        license, permit, or similar instrument enabling 
                        it to do so, or
                            ``(ii) employs individuals working at such 
                        property or facility located outside the United 
                        States, but only if an eligible independent 
                        contractor is responsible for the daily 
                        supervision and direction of such individuals 
                        on behalf of the taxable REIT subsidiary 
                        pursuant to a management agreement or similar 
                        service contract.''.
    (b) Eligible Independent Contractor.--Subparagraphs (A) and (B) of 
section 856(d)(9) (relating to eligible independent contractor) are 
amended to read as follows:
                    ``(A) In general.--The term `eligible independent 
                contractor' means, with respect to any qualified 
                lodging facility or qualified health care property (as 
                defined in subsection (e)(6)(D)(i)), any independent 
                contractor if, at the time such contractor enters into 
                a management agreement or other similar service 
                contract with the taxable REIT subsidiary to operate 
                such qualified lodging facility or qualified health 
                care property, such contractor (or any related person) 
                is actively engaged in the trade or business of 
                operating qualified lodging facilities or qualified 
                health care properties, respectively, for any person 
                who is not a related person with respect to the real 
                estate investment trust or the taxable REIT subsidiary.
                    ``(B) Special rules.--Solely for purposes of this 
                paragraph and paragraph (8)(B), a person shall not fail 
                to be treated as an independent contractor with respect 
                to any qualified lodging facility or qualified health 
                care property (as so defined) by reason of the 
                following:
                            ``(i) The taxable REIT subsidiary bears the 
                        expenses for the operation of such qualified 
                        lodging facility or qualified health care 
                        property pursuant to the management agreement 
                        or other similar service contract.
                            ``(ii) The taxable REIT subsidiary receives 
                        the revenues from the operation of such 
                        qualified lodging facility or qualified health 
                        care property, net of expenses for such 
                        operation and fees payable to the operator 
                        pursuant to such agreement or contract.
                            ``(iii) The real estate investment trust 
                        receives income from such person with respect 
                        to another property that is attributable to a 
                        lease of such other property to such person 
                        that was in effect as of the later of--
                                    ``(I) January 1, 1999, or
                                    ``(II) the earliest date that any 
                                taxable REIT subsidiary of such trust 
                                entered into a management agreement or 
                                other similar service contract with 
                                such person with respect to such 
                                qualified lodging facility or qualified 
                                health care property.''.
    (c) Taxable REIT Subsidiaries.--The last sentence of section 
856(l)(3) is amended--
            (1) by inserting ``or a health care facility'' after ``a 
        lodging facility'', and
            (2) by inserting ``or health care facility'' after ``such 
        lodging facility''.

                 Subtitle D--Effective Dates and Sunset

SEC. 841 EFFECTIVE DATES AND SUNSET.

    (a) In General.--Except as otherwise provided in this section, the 
amendments made by this title shall apply to taxable years beginning 
after the date of the enactment of this Act.
    (b) REIT Income Tests.--
            (1) The amendment made by section 801(a) and (b) shall 
        apply to gains and items of income recognized after the date of 
        the enactment of this Act.
            (2) The amendment made by section 801(c) shall apply to 
        transactions entered into after the date of the enactment of 
        this Act.
            (3) The amendment made by section 801(d) shall apply after 
        the date of the enactment of this Act.
    (c) Conforming Foreign Currency Revisions.--
            (1) The amendment made by section 803(a) shall apply to 
        gains recognized after the date of the enactment of this Act.
            (2) The amendment made by section 803(b) shall apply to 
        gains and deductions recognized after the date of the enactment 
        of this Act.
    (d) Dealer Sales.--The amendments made by subtitle C shall apply to 
sales made after the date of the enactment of this Act.
    (e) Sunset.--All amendments made by this title shall not apply to 
taxable years beginning after the date which is 5 years after the date 
of the enactment of this Act. The Internal Revenue Code of 1986 shall 
be applied and administered to taxable years described in the preceding 
sentence as if the amendments so described had never been enacted.

                   TITLE IX--VETERANS HOUSING MATTERS

SEC. 901. HOME IMPROVEMENTS AND STRUCTURAL ALTERATIONS FOR TOTALLY 
              DISABLED MEMBERS OF THE ARMED FORCES BEFORE DISCHARGE OR 
              RELEASE FROM THE ARMED FORCES.

    Section 1717 of title 38, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) In the case of a member of the Armed Forces who, as 
determined by the Secretary, has a disability permanent in nature 
incurred or aggravated in the line of duty in the active military, 
naval, or air service, the Secretary may furnish improvements and 
structural alterations for such member for such disability or as 
otherwise described in subsection (a)(2) while such member is 
hospitalized or receiving outpatient medical care, services, or 
treatment for such disability if the Secretary determines that such 
member is likely to be discharged or released from the Armed Forces for 
such disability.
    ``(2) The furnishing of improvements and alterations under 
paragraph (1) in connection with the furnishing of medical services 
described in subparagraph (A) or (B) of subsection (a)(2) shall be 
subject to the limitation specified in the applicable subparagraph.''.

SEC. 902. ELIGIBILITY FOR SPECIALLY ADAPTED HOUSING BENEFITS AND 
              ASSISTANCE FOR MEMBERS OF THE ARMED FORCES WITH SERVICE-
              CONNECTED DISABILITIES AND INDIVIDUALS RESIDING OUTSIDE 
              THE UNITED STATES.

    (a) Eligibility.--Chapter 21 of title 38, United States Code, is 
amended by inserting after section 2101 the following new section:
``Sec. 2101A. Eligibility for benefits and assistance: members of the 
              Armed Forces with service-connected disabilities; 
              individuals residing outside the United States
    ``(a) Members With Service-Connected Disabilities.--(1) The 
Secretary may provide assistance under this chapter to a member of the 
Armed Forces serving on active duty who is suffering from a disability 
that meets applicable criteria for benefits under this chapter if the 
disability is incurred or aggravated in line of duty in the active 
military, naval, or air service. Such assistance shall be provided to 
the same extent as assistance is provided under this chapter to 
veterans eligible for assistance under this chapter and subject to the 
same requirements as veterans under this chapter.
    ``(2) For purposes of this chapter, any reference to a veteran or 
eligible individual shall be treated as a reference to a member of the 
Armed Forces described in subsection (a) who is similarly situated to 
the veteran or other eligible individual so referred to.
    ``(b) Benefits and Assistance for Individuals Residing Outside the 
United States.--(1) Subject to paragraph (2), the Secretary may, at the 
Secretary's discretion, provide benefits and assistance under this 
chapter (other than benefits under section 2106 of this title) to any 
individual otherwise eligible for such benefits and assistance who 
resides outside the United States.
    ``(2) The Secretary may provide benefits and assistance to an 
individual under paragraph (1) only if--
            ``(A) the country or political subdivision in which the 
        housing or residence involved is or will be located permits the 
        individual to have or acquire a beneficial property interest 
        (as determined by the Secretary) in such housing or residence; 
        and
            ``(B) the individual has or will acquire a beneficial 
        property interest (as so determined) in such housing or 
        residence.
    ``(c) Regulations.--Benefits and assistance under this chapter by 
reason of this section shall be provided in accordance with such 
regulations as the Secretary may prescribe.''.
    (b) Conforming Amendments.--
            (1) Repeal of superseded authority.--Section 2101 of such 
        title is amended--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsection (d) as subsection 
                (c).
            (2) Limitations on assistance.--Section 2102 of such title 
        is amended--
                    (A) in subsection (a)--
                            (i) by striking ``veteran'' each place it 
                        appears and inserting ``individual''; and
                            (ii) in paragraph (3), by striking 
                        ``veteran's'' and inserting ``individual's'';
                    (B) in subsection (b)(1), by striking ``a veteran'' 
                and inserting ``an individual'';
                    (C) in subsection (c)--
                            (i) by striking ``a veteran'' and inserting 
                        ``an individual''; and
                            (ii) by striking ``the veteran'' each place 
                        it appears and inserting ``the individual''; 
                        and
                    (D) in subsection (d), by striking ``a veteran'' 
                each place it appears and inserting ``an individual''.
            (3) Assistance for individuals temporarily residing in 
        housing of family member.--Section 2102A of such title is 
        amended--
                    (A) by striking ``veteran'' each place it appears 
                (other than in subsection (b)) and inserting 
                ``individual'';
                    (B) in subsection (a), by striking ``veteran's'' 
                each place it appears and inserting ``individual's''; 
                and
                    (C) in subsection (b), by striking ``a veteran'' 
                each place it appears and inserting ``an individual''.
            (4) Furnishing of plans and specifications.--Section 2103 
        of such title is amended by striking ``veterans'' both places 
        it appears and inserting ``individuals''.
            (5) Construction of benefits.--Section 2104 of such title 
        is amended--
                    (A) in subsection (a), by striking ``veteran'' each 
                place it appears and inserting ``individual''; and
                    (B) in subsection (b)--
                            (i) in the first sentence, by striking ``A 
                        veteran'' and inserting ``An individual'';
                            (ii) in the second sentence, by striking 
                        ``a veteran'' and inserting ``an individual''; 
                        and
                            (iii) by striking ``such veteran'' each 
                        place it appears and inserting ``such 
                        individual''.
            (6) Veterans' mortgage life insurance.--Section 2106 of 
        such title is amended--
                    (A) in subsection (a)--
                            (i) by striking ``any eligible veteran'' 
                        and inserting ``any eligible individual''; and
                            (ii) by striking ``the veterans''' and 
                        inserting ``the individual's'';
                    (B) in subsection (b), by striking ``an eligible 
                veteran'' and inserting ``an eligible individual'';
                    (C) in subsection (e), by striking ``an eligible 
                veteran'' and inserting ``an individual'';
                    (D) in subsection (h), by striking ``each veteran'' 
                and inserting ``each individual'';
                    (E) in subsection (i), by striking ``the 
                veteran's'' each place it appears and inserting ``the 
                individual's'';
                    (F) by striking ``the veteran'' each place it 
                appears and inserting ``the individual''; and
                    (G) by striking ``a veteran'' each place it appears 
                and inserting ``an individual''.
            (7) Heading amendments.--(A) The heading of section 2101 of 
        such title is amended to read as follows:
``Sec. 2101. Acquisition and adaptation of housing: eligible 
              veterans''.
            (B) The heading of section 2102A of such title is amended 
        to read as follows:
``Sec. 2102A. Assistance for individuals residing temporarily in 
              housing owned by a family member''.
            (8) Clerical amendments.--The table of sections at the 
        beginning of chapter 21 of such title is amended--
                    (A) by striking the item relating to section 2101 
                and inserting the following new item:

``2101. Acquisition and adaptation of housing: eligible veterans.'';
                    (B) by inserting after the item relating to section 
                2101, as so amended, the following new item:

``2101A. Eligibility for benefits and assistance: members of the Armed 
                            Forces with service-connected disabilities; 
                            individuals residing outside the United 
                            States.'';
                and
                    (C) by striking the item relating to section 2102A 
                and inserting the following new item:

``2102A. Assistance for individuals residing temporarily in housing 
                            owned by a family member.''.

SEC. 903. SPECIALLY ADAPTED HOUSING ASSISTANCE FOR INDIVIDUALS WITH 
              SEVERE BURN INJURIES.

    Section 2101 of title 38, United States Code, is amended--
            (1) in subsection (a)(2), by adding at the end the 
        following new subparagraph:
            ``(E) The disability is due to a severe burn injury (as 
        determined pursuant to regulations prescribed by the 
        Secretary).''; and
            (2) in subsection (b)(2)--
                    (A) by striking ``either'' and inserting ``any''; 
                and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(C) The disability is due to a severe burn injury (as so 
        determined).''.

SEC. 904. EXTENSION OF ASSISTANCE FOR INDIVIDUALS RESIDING TEMPORARILY 
              IN HOUSING OWNED BY A FAMILY MEMBER.

    Section 2102A(e) of title 38, United States Code, is amended by 
striking ``after the end of the five-year period that begins on the 
date of the enactment of the Veterans' Housing Opportunity and Benefits 
Improvement Act of 2006'' and inserting ``after December 31, 2011''.

SEC. 905. INCREASE IN SPECIALLY ADAPTED HOUSING BENEFITS FOR DISABLED 
              VETERANS.

    (a) In General.--Section 2102 of title 38, United States Code, is 
amended--
            (1) in subsection (b)(2), by striking ``$10,000'' and 
        inserting ``$12,000'';
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``$50,000'' and 
                inserting ``$60,000''; and
                    (B) in paragraph (2), by striking ``$10,000'' and 
                inserting ``$12,000''; and
            (3) by adding at the end the following new subsection:
    ``(e)(1) Effective on October 1 of each year (beginning in 2009), 
the Secretary shall increase the amounts described in subsection (b)(2) 
and paragraphs (1) and (2) of subsection (d) in accordance with this 
subsection.
    ``(2) The increase in amounts under paragraph (1) to take effect on 
October 1 of a year shall be by an amount of such amounts equal to the 
percentage by which--
            ``(A) the residential home cost-of-construction index for 
        the preceding calendar year, exceeds
            ``(B) the residential home cost-of-construction index for 
        the year preceding the year described in subparagraph (A).
    ``(3) The Secretary shall establish a residential home cost-of-
construction index for the purposes of this subsection. The index shall 
reflect a uniform, national average change in the cost of residential 
home construction, determined on a calendar year basis. The Secretary 
may use an index developed in the private sector that the Secretary 
determines is appropriate for purposes of this subsection.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on July 1, 2008, and shall apply with respect to payments made 
in accordance with section 2102 of title 38, United States Code, on or 
after that date.

SEC. 906. REPORT ON SPECIALLY ADAPTED HOUSING FOR DISABLED INDIVIDUALS.

    (a) In General.--Not later than December 31, 2008, the Secretary of 
Veterans Affairs shall submit to the Committee on Veterans' Affairs of 
the Senate and the Committee on Veterans' Affairs of the House of 
Representatives a report that contains an assessment of the adequacy of 
the authorities available to the Secretary under law to assist eligible 
disabled individuals in acquiring--
            (1) suitable housing units with special fixtures or movable 
        facilities required for their disabilities, and necessary land 
        therefor;
            (2) such adaptations to their residences as are reasonably 
        necessary because of their disabilities; and
            (3) residences already adapted with special features 
        determined by the Secretary to be reasonably necessary as a 
        result of their disabilities.
    (b) Focus on Particular Disabilities.--The report required by 
subsection (a) shall set forth a specific assessment of the needs of--
            (1) veterans who have disabilities that are not described 
        in subsections (a)(2) and (b)(2) of section 2101 of title 38, 
        United States Code; and
            (2) other disabled individuals eligible for specially 
        adapted housing under chapter 21 of such title by reason of 
        section 2101A of such title (as added by section 902(a) of this 
        Act) who have disabilities that are not described in such 
        subsections.

SEC. 907. REPORT ON SPECIALLY ADAPTED HOUSING ASSISTANCE FOR 
              INDIVIDUALS WHO RESIDE IN HOUSING OWNED BY A FAMILY 
              MEMBER ON PERMANENT BASIS.

    Not later than December 31, 2008, the Secretary of Veterans Affairs 
shall submit to the Committee on Veterans' Affairs of the Senate and 
the Committee on Veterans' Affairs of the House of Representatives a 
report on the advisability of providing assistance under section 2102A 
of title 38, United States Code, to veterans described in subsection 
(a) of such section, and to members of the Armed Forces covered by such 
section 2102A by reason of section 2101A of title 38, United States 
Code (as added by section 902(a) of this Act), who reside with family 
members on a permanent basis.

SEC. 908. DEFINITION OF ANNUAL INCOME FOR PURPOSES OF SECTION 8 AND 
              OTHER PUBLIC HOUSING PROGRAMS.

    Section 3(b)(4) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(3)(b)(4)) is amended by inserting ``or any deferred Department of 
Veterans Affairs disability benefits that are received in a lump sum 
amount or in prospective monthly amounts'' before ``may not be 
considered''.

SEC. 909. PAYMENT OF TRANSPORTATION OF BAGGAGE AND HOUSEHOLD EFFECTS 
              FOR MEMBERS OF THE ARMED FORCES WHO RELOCATE DUE TO 
              FORECLOSURE OF LEASED HOUSING.

    Section 406 of title 37, United States Code, is amended--
            (1) by redesignating subsections (k) and (l) as subsections 
        (l) and (m), respectively; and
            (2) by inserting after subsection (j) the following new 
        subsection (k):
    ``(k) A member of the armed forces who relocates from leased or 
rental housing by reason of the foreclosure of such housing is entitled 
to transportation of baggage and household effects under subsection 
(b)(1) in the same manner, and subject to the same conditions and 
limitations, as similarly circumstanced members entitled to 
transportation of baggage and household effects under that 
subsection.''.

                   TITLE X--CLEAN ENERGY TAX STIMULUS

SEC. 1001. SHORT TITLE; ETC.

    (a) Short Title.--This title may be cited as the ``Clean Energy Tax 
Stimulus Act of 2008''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

      Subtitle A--Extension of Clean Energy Production Incentives

SEC. 1011. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY PRODUCTION 
              TAX CREDIT.

    (a) Extension of Credit.--Each of the following provisions of 
section 45(d) (relating to qualified facilities) is amended by striking 
``January 1, 2009'' and inserting ``January 1, 2010'':
            (1) Paragraph (1).
            (2) Clauses (i) and (ii) of paragraph (2)(A).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (4) Paragraph (4).
            (5) Paragraph (5).
            (6) Paragraph (6).
            (7) Paragraph (7).
            (8) Paragraph (8).
            (9) Subparagraphs (A) and (B) of paragraph (9).
    (b) Production Credit for Electricity Produced From Marine 
Renewables.--
            (1) In general.--Paragraph (1) of section 45(c) (relating 
        to resources) is amended by striking ``and'' at the end of 
        subparagraph (G), by striking the period at the end of 
        subparagraph (H) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
            (2) Marine renewables.--Subsection (c) of section 45 is 
        amended by adding at the end the following new paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) free flowing water in an irrigation 
                        system, canal, or other man-made channel, 
                        including projects that utilize nonmechanical 
                        structures to accelerate the flow of water for 
                        electric power production purposes, or
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--Such term shall not include any 
                energy which is derived from any source which utilizes 
                a dam, diversionary structure (except as provided in 
                subparagraph (A)(iii)), or impoundment for electric 
                power production purposes.''.
            (3) Definition of facility.--Subsection (d) of section 45 
        is amended by adding at the end the following new paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2010.''.
            (4) Credit rate.--Subparagraph (A) of section 45(b)(4) is 
        amended by striking ``or (9)'' and inserting ``(9), or (11)''.
            (5) Coordination with small irrigation power.--Paragraph 
        (5) of section 45(d), as amended by subsection (a), is amended 
        by striking ``January 1, 2010'' and inserting ``the date of the 
        enactment of paragraph (11)''.
    (c) Sales of Electricity to Regulated Public Utilities Treated as 
Sales to Unrelated Persons.--Section 45(e)(4) (relating to related 
persons) is amended by adding at the end the following new sentence: 
``A taxpayer shall be treated as selling electricity to an unrelated 
person if such electricity is sold to a regulated public utility (as 
defined in section 7701(a)(33).''.
    (d) Trash Facility Clarification.--Paragraph (7) of section 45(d) 
is amended--
            (1) by striking ``facility which burns'' and inserting 
        ``facility (other than a facility described in paragraph (6)) 
        which uses'', and
            (2) by striking ``combustion''.
    (e) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to property originally placed in service after December 
        31, 2008.
            (2) Modifications.--The amendments made by subsections (b) 
        and (c) shall apply to electricity produced and sold after the 
        date of the enactment of this Act, in taxable years ending 
        after such date.
            (3) Trash facility clarification.--The amendments made by 
        subsection (d) shall apply to electricity produced and sold 
        before, on, or after December 31, 2007.

SEC. 1012. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL CELL 
              INVESTMENT TAX CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) (relating to energy credit) are 
        each amended by striking ``January 1, 2009'' and inserting 
        ``January 1, 2017''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) (relating to qualified fuel cell property) is amended 
        by striking ``December 31, 2008'' and inserting ``December 31, 
        2017''.
            (3) Qualified microturbine property.--Subparagraph (E) of 
        section 48(c)(2) (relating to qualified microturbine property) 
        is amended by striking ``December 31, 2008'' and inserting 
        ``December 31, 2017''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is 
amended by striking ``and'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, and'', and by adding 
at the end the following new clause:
                            ``(v) the credit determined under section 
                        46 to the extent that such credit is 
                        attributable to the energy credit determined 
                        under section 48.''.
    (c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell 
Property.--
            (1) In general.--Section 48(c)(1) (relating to qualified 
        fuel cell), as amended by subsection (a)(2), is amended by 
        striking subparagraph (B) and by redesignating subparagraphs 
        (C), (D), and (E) as subparagraphs (B), (C), and (D), 
        respectively.
            (2) Conforming amendment.--Section 48(a)(1) is amended by 
        striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' and 
        inserting ``subsection (c)(2)(B)''.
    (d) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) is amended 
        by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c), as amended by 
                this section, is amended by striking subparagraph (C) 
                and redesignating subparagraph (D) as subparagraph (C).
                    (B) Paragraph (2) of section 48(c), as amended by 
                subsection (a)(3), is amended by striking subparagraph 
                (D) and redesignating subparagraph (E) as subparagraph 
                (D).
    (e) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to credits 
        determined under section 46 of the Internal Revenue Code of 
        1986 in taxable years beginning after the date of the enactment 
        of this Act and to carrybacks of such credits.
            (3) Fuel cell property and public electric utility 
        property.--The amendments made by subsections (c) and (d) shall 
        apply to periods after the date of the enactment of this Act, 
        in taxable years ending after such date, under rules similar to 
        the rules of section 48(m) of the Internal Revenue Code of 1986 
        (as in effect on the day before the date of the enactment of 
        the Revenue Reconciliation Act of 1990).

SEC. 1013. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY CREDIT.

    (a) Extension.--Section 25D(g) (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
    (b) No Dollar Limitation for Credit for Solar Electric Property.--
            (1) In general.--Section 25D(b)(1) (relating to maximum 
        credit) is amended by striking subparagraph (A) and by 
        redesignating subparagraphs (B) and (C) as subparagraphs (A) 
        and (B), respectively.
            (2) Conforming amendments.--Section 25D(e)(4) is amended--
                    (A) by striking clause (i) in subparagraph (A),
                    (B) by redesignating clauses (ii) and (iii) in 
                subparagraph (A) as clauses (i) and (ii), respectively, 
                and
                    (C) by striking ``, (2),'' in subparagraph (C).
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D is amended 
        to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                In the case of a taxable year to which section 26(a)(2) 
                applies, if the credit allowable under subsection (a) 
                exceeds the limitation imposed by section 26(a)(2) for 
                such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section), 
                such excess shall be carried to the succeeding taxable 
                year and added to the credit allowable under subsection 
                (a) for such succeeding taxable year.
                    ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not apply, 
                if the credit allowable under subsection (a) exceeds 
                the limitation imposed by paragraph (1) for such 
                taxable year, such excess shall be carried to the 
                succeeding taxable year and added to the credit 
                allowable under subsection (a) for such succeeding 
                taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) is amended by striking 
                ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25D''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25D''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2007.
            (2) Application of egtrra sunset.--The amendments made by 
        subparagraphs (A) and (B) of subsection (c)(2) shall be subject 
        to title IX of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 in the same manner as the provisions 
        of such Act to which such amendments relate.

SEC. 1014. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN RENEWABLE 
              ENERGY BONDS.

    (a) Extension.--Section 54(m) (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
    (b) Increase in National Limitation.--Section 54(f) (relating to 
limitation on amount of bonds designated) is amended--
            (1) by inserting ``, and for the period beginning after the 
        date of the enactment of the Clean Energy Tax Stimulus Act of 
        2008 and ending before January 1, 2010, $400,000,000'' after 
        ``$1,200,000,000'' in paragraph (1),
            (2) by striking ``$750,000,000 of the'' in paragraph (2) 
        and inserting ``$750,000,000 of the $1,200,000,000'', and
            (3) by striking ``bodies'' in paragraph (2) and inserting 
        ``bodies, and except that the Secretary may not allocate more 
        than \1/3\ of the $400,000,000 national clean renewable energy 
        bond limitation to finance qualified projects of qualified 
        borrowers which are public power providers nor more than \1/3\ 
        of such limitation to finance qualified projects of qualified 
        borrowers which are mutual or cooperative electric companies 
        described in section 501(c)(12) or section 1381(a)(2)(C)''.
    (c) Public Power Providers Defined.--Section 54(j) is amended--
            (1) by adding at the end the following new paragraph:
            ``(6) Public power provider.--The term `public power 
        provider' means a State utility with a service obligation, as 
        such terms are defined in section 217 of the Federal Power Act 
        (as in effect on the date of the enactment of this 
        paragraph).'', and
            (2) by inserting ``; Public Power Provider'' before the 
        period at the end of the heading.
    (d) Technical Amendment.--The third sentence of section 54(e)(2) is 
amended by striking ``subsection (l)(6)'' and inserting ``subsection 
(l)(5)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 1015. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC RESTRUCTURING 
              POLICY.

    (a) Qualifying Electric Transmission Transaction.--
            (1) In general.--Section 451(i)(3) (defining qualifying 
        electric transmission transaction) is amended by striking 
        ``January 1, 2008'' and inserting ``January 1, 2010''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to transactions after December 31, 2007.
    (b) Independent Transmission Company.--
            (1) In general.--Section 451(i)(4)(B)(ii) (defining 
        independent transmission company) is amended by striking 
        ``December 31, 2007'' and inserting ``the date which is 2 years 
        after the date of such transaction''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the amendments made by 
        section 909 of the American Jobs Creation Act of 2004.

    Subtitle B--Extension of Incentives to Improve Energy Efficiency

SEC. 1021. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY EFFICIENCY 
              IMPROVEMENTS TO EXISTING HOMES.

    (a) Extension of Credit.--Section 25C(g) (relating to termination) 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2009''.
    (b) Qualified Biomass Fuel Property.--
            (1) In general.--Section 25C(d)(3) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (D),
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) a stove which uses the burning of biomass 
                fuel to heat a dwelling unit located in the United 
                States and used as a residence by the taxpayer, or to 
                heat water for use in such a dwelling unit, and which 
                has a thermal efficiency rating of at least 75 
                percent.''.
            (2) Biomass fuel.--Section 25C(d) (relating to residential 
        energy property expenditures) is amended by adding at the end 
        the following new paragraph:
            ``(6) Biomass fuel.--The term `biomass fuel' means any 
        plant-derived fuel available on a renewable or recurring basis, 
        including agricultural crops and trees, wood and wood waste and 
        residues (including wood pellets), plants (including aquatic 
        plants), grasses, residues, and fibers.''.
    (c) Modifications of Standards for Energy-Efficient Building 
Property.--
            (1) Electric heat pumps.--Subparagraph (B) of section 
        25C(d)(3) is amended to read as follows:
                    ``(A) an electric heat pump which achieves the 
                highest efficiency tier established by the Consortium 
                for Energy Efficiency, as in effect on January 1, 
                2008.''.
            (2) Central air conditioners.--Section 25C(d)(3)(D) is 
        amended by striking ``2006'' and inserting ``2008''.
            (3) Water heaters.--Subparagraph (E) of section 25C(d) is 
        amended to read as follows:
                    ``(E) a natural gas, propane, or oil water heater 
                which has either an energy factor of at least 0.80 or a 
                thermal efficiency of at least 90 percent.''.
            (4) Oil furnaces and hot water boilers.--Paragraph (4) of 
        section 25C(d) is amended to read as follows:
            ``(4) Qualified natural gas, propane, and oil furnaces and 
        hot water boilers.--
                    ``(A) Qualified natural gas furnace.--The term 
                `qualified natural gas furnace' means any natural gas 
                furnace which achieves an annual fuel utilization 
                efficiency rate of not less than 95.
                    ``(B) Qualified natural gas hot water boiler.--The 
                term `qualified natural gas hot water boiler' means any 
                natural gas hot water boiler which achieves an annual 
                fuel utilization efficiency rate of not less than 90.
                    ``(C) Qualified propane furnace.--The term 
                `qualified propane furnace' means any propane furnace 
                which achieves an annual fuel utilization efficiency 
                rate of not less than 95.
                    ``(D) Qualified propane hot water boiler.--The term 
                `qualified propane hot water boiler' means any propane 
                hot water boiler which achieves an annual fuel 
                utilization efficiency rate of not less than 90.
                    ``(E) Qualified oil furnaces.--The term `qualified 
                oil furnace' means any oil furnace which achieves an 
                annual fuel utilization efficiency rate of not less 
                than 90.
                    ``(F) Qualified oil hot water boiler.--The term 
                `qualified oil hot water boiler' means any oil hot 
                water boiler which achieves an annual fuel utilization 
                efficiency rate of not less than 90.''.
    (d) Effective Date.--The amendments made this section shall apply 
to expenditures made after December 31, 2007.

SEC. 1022. EXTENSION AND MODIFICATION OF TAX CREDIT FOR ENERGY 
              EFFICIENT NEW HOMES.

    (a) Extension of Credit.--Subsection (g) of section 45L (relating 
to termination) is amended by striking ``December 31, 2008'' and 
inserting ``December 31, 2010''.
    (b) Allowance for Contractor's Personal Residence.--Subparagraph 
(B) of section 45L(a)(1) is amended to read as follows:
                    ``(B)(i) acquired by a person from such eligible 
                contractor and used by any person as a residence during 
                the taxable year, or
                    ``(ii) used by such eligible contractor as a 
                residence during the taxable year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to homes acquired after December 31, 2008.

SEC. 1023. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) Extension.--Section 179D(h) (relating to termination) is 
amended by striking ``December 31, 2008'' and inserting ``December 31, 
2009''.
    (b) Adjustment of Maximum Deduction Amount.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) 
        (relating to maximum amount of deduction) is amended by 
        striking ``$1.80'' and inserting ``$2.25''.
            (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
        amended--
                    (A) by striking ``$.60'' and inserting ``$0.75'', 
                and
                    (B) by striking ``$1.80'' and inserting ``$2.25''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 1024. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT APPLIANCE 
              CREDIT FOR APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M (relating to 
applicable amount) is amended to read as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a dishwasher which is 
                manufactured in calendar year 2008 or 2009 and which 
                uses no more than 324 kilowatt hours per year and 5.8 
                gallons per cycle, and
                    ``(B) $75 in the case of a dishwasher which is 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which uses no more than 307 kilowatt hours per year and 
                5.0 gallons per cycle (5.5 gallons per cycle for 
                dishwashers designed for greater than 12 place 
                settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 which 
                meets or exceeds a 1.72 modified energy factor and does 
                not exceed a 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 or 
                2009 which meets or exceeds a 1.8 modified energy 
                factor and does not exceed a 7.5 water consumption 
                factor,
                    ``(C) $150 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.0 modified 
                energy factor and does not exceed a 6.0 water 
                consumption factor, and
                    ``(D) $250 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.2 modified 
                energy factor and does not exceed a 4.5 water 
                consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a refrigerator which is 
                manufactured in calendar year 2008, and consumes at 
                least 20 percent but not more than 22.9 percent less 
                kilowatt hours per year than the 2001 energy 
                conservation standards,
                    ``(B) $75 in the case of a refrigerator which is 
                manufactured in calendar year 2008 or 2009, and 
                consumes at least 23 percent but no more than 24.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards,
                    ``(C) $100 in the case of a refrigerator which is 
                manufactured in calendar year 2008, 2009, or 2010, and 
                consumes at least 25 percent but not more than 29.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards, and
                    ``(D) $200 in the case of a refrigerator 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which consumes at least 30 percent less energy than the 
                2001 energy conservation standards.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c) 
        of section 45M (relating to eligible production) is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that 
                follows through ``the eligible'' and inserting ``The 
                eligible'', and
                    (C) by moving the text of such subsection in line 
                with the subsection heading and redesignating 
                subparagraphs (A) and (B) as paragraphs (1) and (2), 
                respectively.
            (2) Modification of base period.--Paragraph (2) of section 
        45M(c), as amended by paragraph (1) of this section, is amended 
        by striking ``3-calendar year'' and inserting ``2-calendar 
        year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M (defining types of energy efficient appliances) is amended 
to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2), and
            ``(3) refrigerators described in subsection (b)(3).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) 
        (relating to aggregate credit amount allowed) is amended to 
        read as follows:
            ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed $75,000,000 
        reduced by the amount of the credit allowed under subsection 
        (a) to the taxpayer (or any predecessor) for all prior taxable 
        years beginning after December 31, 2007.''.
            (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) is amended to read as 
        follows:
            ``(2) Amount allowed for certain refrigerators and clothes 
        washers.--Refrigerators described in subsection (b)(3)(D) and 
        clothes washers described in subsection (b)(2)(D) shall not be 
        taken into account under paragraph (1).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) (defining 
        qualified energy efficient appliance) is amended to read as 
        follows:
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection 
                (b)(1),
                    ``(B) any clothes washer described in subsection 
                (b)(2), and
                    ``(C) any refrigerator described in subsection 
                (b)(3).''.
            (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
        washer) is amended by inserting ``commercial'' before 
        ``residential'' the second place it appears.
            (3) Top-loading clothes washer.--Subsection (f) of section 
        45M (relating to definitions) is amended by redesignating 
        paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), 
        and (8), respectively, and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Top-loading clothes washer.--The term `top-loading 
        clothes washer' means a clothes washer which has the clothes 
        container compartment access located on the top of the machine 
        and which operates on a vertical axis.''.
            (4) Replacement of energy factor.--Section 45M(f)(6), as 
        redesignated by paragraph (3), is amended to read as follows:
            ``(6) Modified energy factor.--The term `modified energy 
        factor' means the modified energy factor established by the 
        Department of Energy for compliance with the Federal energy 
        conservation standard.''.
            (5) Gallons per cycle; water consumption factor.--Section 
        45M(f) (relating to definitions), as amended by paragraph (3), 
        is amended by adding at the end the following:
            ``(9) Gallons per cycle.--The term `gallons per cycle' 
        means, with respect to a dishwasher, the amount of water, 
        expressed in gallons, required to complete a normal cycle of a 
        dishwasher.
            ``(10) Water consumption factor.--The term `water 
        consumption factor' means, with respect to a clothes washer, 
        the quotient of the total weighted per-cycle water consumption 
        divided by the cubic foot (or liter) capacity of the clothes 
        washer.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

                     TITLE XI--SENSE OF THE SENATE

SEC. 1101. SENSE OF THE SENATE.

    It is the sense of the Senate that in implementing or carrying out 
any provision of this Act, or any amendment made by this Act, the 
Senate supports a policy of noninterference regarding local government 
requirements that the holder of a foreclosed property maintain that 
property.

            Amend the title so as to read: ``An Act to provide needed 
        housing reform and for other purposes.''.

            Attest:

                                                             Secretary.
110th CONGRESS

  2d Session

                               H.R. 3221

_______________________________________________________________________

                               AMENDMENTS