I 111th CONGRESS 1st Session H. R. 2587 IN THE HOUSE OF REPRESENTATIVES May 21, 2009 Mrs. Capito (for herself and Mr. Lee of New York) introduced the following bill; which was referred to the Committee on Financial Services A BILL To limit the reinvestment by States and localities of profits under the Neighborhood Stabilization Program of the Department of Housing and Urban Development.

1.

Short title

This Act may be cited as the Neighborhood Stabilization Program Reform Act of 2009.

2.

Reinvestment of profits

(a)

2-year reinvestment period

Section 2301(d) of the Housing and Economic Recovery Act of 2008, as amended under the heading relating to Community Development Fund in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 218), is amended by inserting after paragraph (3) the following new paragraph: (4)

Reinvestment of profits

(A)

Profits from sales, rentals, and redevelopment

(i)

2-year reinvestment period

During the 2-year period beginning upon the date of the enactment of the Neighborhood Stabilization Program Reform Act of 2009, 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)

Reduction of national debt

(I)

Profits

Upon the expiration of the 2-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 transfered to the special account established by section 3113(d) of title 31, United States Code, and shall be used only as provided in such section to reduce the public debt. (II)

Other amounts

Upon the expiration of the 2-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 transfered to the special account established by section 3113(d) of title 31, United States Code, and shall be used only as provided in such section to reduce the public debt. (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. . (b)

Applicability to Stimulus Act amounts

Notwithstanding any other provision of law, the amendment made by subsection (a) shall apply with respect to any amounts made available under the heading relating to Community Development Fund in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 218).