[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