[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4156 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4156
To provide for certain improvements in the laws relating to housing for
veterans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2009
Mr. Sires introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To provide for certain improvements in the laws relating to housing for
veterans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Increasing Housing Opportunities for
Veterans Act of 2009''.
SEC. 2. LOANS FOR DEVELOPMENT OF SUPPORTIVE HOUSING FOR VETERAN
FAMILIES.
(a) Purpose.--The purposes of this section are--
(1) to expand the supply of permanent housing for veteran
families, including low-, very low-, and extremely low-income
veteran families; and
(2) to provide supportive services through such housing to
support the needs of such veteran families.
(b) Authority.--
(1) In general.--The Secretary of Housing and Urban
Development shall, to the extent amounts are made available for
assistance under this section and the Secretary receives
approvable applications for such assistance, provide assistance
to for-profit developers to expand the supply of supportive
housing for veteran families.
(2) Nature of assistance.--The assistance provided under
paragraph (1)--
(A) shall be available for use to plan for and
finance the acquisition, construction, reconstruction,
or moderate or substantial rehabilitation of a
structure or a portion of a structure to be used as
supportive housing for veteran families in accordance
with this section; and
(B) may also cover the cost of real property
acquisition, site improvement, conversion, demolition,
relocation, and other expenses that the Secretary
determines are necessary to expand the supply of
supportive housing for veteran families.
(3) Consultation.--In carrying out this section, the
Secretary shall consult with the Secretary of Veterans Affairs.
(c) Forms of Assistance.--Assistance under this section shall be
made available in the following forms:
(1) Zero-interest loans.--Assistance may be provided as a
loan under this paragraph for the project, subject to the
following terms:
(A) Zero interest.--The loan shall not bear
interest.
(B) Repayment.--The loan shall not require the
borrower to make payments of principal during the
period that the housing remains available for occupancy
by veteran families in accordance with this section. If
the housing ceases to be available for occupancy in
accordance with this section, repayment of the loan
principal amount shall be made in accordance with
subsection (k)(9).
(C) Amount.--The loan shall be in an amount
calculated in accordance with the development cost
limitation under subsection (i).
(2) Project rental assistance.--Assistance may be provided
as project rental assistance, under an annual contract that--
(A) obligates the Secretary to make monthly
payments to cover any part of the costs attributed to
dwelling units occupied (or, as approved by the
Secretary, held for occupancy) by low-income veteran
families that is not met from rent contributions of
tenants of such units;
(B) provides for the project not more than the sum
of the initial annual project rentals for all units so
occupied and any initial utility allowances for such
units, as approved by the Secretary;
(C) has an initial term of 240 months and provides
that the Secretary shall, subject only to the
availability of amounts provided in appropriation Acts,
extend the contract for a term of not less than 60
months;
(D) provides that any contract amounts not used by
a project in any year shall remain available to the
project until the expiration of the contract;
(E) provides that the Secretary shall adjust the
annual contract amount to provide for reasonable
project costs, and any increases, including adequate
reserves, supportive services, and service
coordinators, except that any contract amounts not used
by a project during a contract term shall not be
available for such adjustments upon renewal; and
(F) provides that in the event of emergency
situations that are outside the control of the owner,
the Secretary shall increase the annual contract
amount, subject to reasonable review and limitations as
the Secretary shall provide.
In order to facilitate the orderly extension of expiring
contracts, the Secretary may make commitments to extend
expiring contracts during the year prior to the date of
expiration.
(d) Use Limitations.--
(1) Use for veterans.--For not less than 40 years, not less
than 75 percent of the dwelling units in housing assisted under
this section shall be made available for occupancy only by
veteran families.
(2) Use for low-income veterans.--Of the dwelling units in
housing assisted under this section that are subject to the use
limitation under paragraph (1), a number may be made available,
for such periods as may be appropriate, for occupancy only by
low-, very low-, or extremely low-income veteran families, in
accordance with the need for housing for veteran families
having such incomes as latest information in the comprehensive
housing affordability strategy for the jurisdiction in which
the housing is located, as required under section 105(b)(1) of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12705(b)(1)).
(e) Tenant Rent Contribution.--A low-income veteran family shall
pay as rent for a dwelling unit in housing assisted under this section
the highest of the following amounts, rounded to the nearest dollar:
(1) Thirty percent of the veteran family's adjusted monthly
income.
(2) Ten percent of the veteran family'' monthly income.
(3) If the veteran family is receiving payments for welfare
assistance from a public agency and a part of such payments,
adjusted in accordance with the veteran family's actual housing
costs, is specifically designated by such agency to meet the
veteran family's housing costs, the portion of such payments
which is so designated.
(f) Applications.--
(1) In general.--Amounts made available under this section
shall be allocated by the Secretary among approvable
applications submitted by for-profit developers.
(2) Content of application.--
(A) In general.--Applications for assistance under
this section shall be submitted by an applicant in such
form and in accordance with such procedures as the
Secretary shall establish.
(B) Required content.--Applications for assistance
under this section shall contain--
(i) a description of the proposed housing;
(ii) a description of the assistance the
applicant seeks under this section;
(iii) a description of--
(I) the supportive services to be
provided to the persons occupying such
housing in accordance with subsection
(h);
(II) the manner in which such
services will be provided to such
persons, including identification of
the providers and the location of such
services, and of any transportation
necessary for residents of the housing
to obtain such services, and, in the
case of frail elderly persons (as such
term is defined in section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q)),
evidence of such residential
supervision as the Secretary determines
is necessary to facilitate the adequate
provision of such services; and
(III) the public or private sources
of assistance that can reasonably be
expected to fund or provide such
services;
(iv) if the proposed housing reserves units
for low-, very low-, or extremely low-income
veterans pursuant to subsection (d)(2), a
description of the proposed income mix of units
to be reserved for occupancy in accordance with
such subsection;
(v) a certification from the public
official responsible for submitting a housing
strategy for the jurisdiction to be served in
accordance with section 105 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12705) that the proposed project is
consistent with the approved housing strategy;
and
(vi) such other information or
certifications that the Secretary determines to
be necessary or appropriate to achieve the
purposes of this section.
(3) Rejection.--The Secretary shall not reject any
application for assistance under this section on technical
grounds without giving notice of that rejection and the basis
therefore to the applicant.
(g) Selection Criteria.--The Secretary shall establish selection
criteria for assistance under this section, which shall include--
(1) criteria based upon--
(A) the ability of the applicant to develop and
operate the proposed housing;
(B) the extent to which the proposed housing meets
a need for supportive housing for veteran families in
the area to be served and, if the proposed housing
reserves units for low-, very low-, or extremely low-
income veterans pursuant to subsection (d)(2), for
veteran families in the area of the income levels
proposed to be served pursuant to the income mix
proposed under subsection (f)(2)(B)(iv);
(C) the extent to which the proposed size and unit
mix of the housing will enable the applicant to manage
and operate the housing efficiently and ensure that the
provision of supportive services in accordance with
subsection (h) will be accomplished in an economical
fashion;
(D) the extent to which the proposed design of the
housing will meet the service-connected disability
needs of veteran families;
(E) the extent to which the applicant has
demonstrated that the supportive services identified
pursuant to subsection (f)(2)(B)(iii) will be provided
on a consistent, long-term basis;
(F) the extent to which the proposed design of the
housing will accommodate the provision of supportive
services that are expected to be needed, either
initially or over the useful life of the housing, by
the veterans the housing is intended to serve;
(G) the extent to which the applicant has ensured
that a service coordinator will be employed or
otherwise retained for the housing, who has the
managerial capacity and responsibility for carrying out
the actions described in clauses (i) and (ii) of
subsection (h)(2)(A); and
(H) such other factors as the Secretary determines
to be appropriate to ensure that funds made available
under this section are used effectively;
(2) preference in such selection for applications to the
extent that the dwelling units in the proposed housing to be
reserved for occupancy only by veteran families exceed the
percentage of such units required under subsection (d)(1); and
(3) criteria appropriate to consider the need for
supportive housing for veteran families in nonmetropolitan
areas and by Indian tribes.
(h) Provision of Supportive Services to Veteran Families.--
(1) In general.--Owners of housing assisted under this
section shall ensure that veterans and veteran families
residing in any housing assisted under this section are
provided a range of services tailored to their needs. The
Secretary of Housing and Urban Development shall coordinate
with the Secretary of Veterans Affairs and owners of such
housing to facilitate the provision of such services. Such
services may be provided at the site of such housing or off-
site, and may include services for--
(A) outreach;
(B) health (including counseling, mental health,
substance abuse, post-traumatic stress disorder, and
traumatic brain injury) diagnosis and treatment;
(C) habilitation and rehabilitation;
(D) case management;
(E) daily living;
(F) personal financial planning;
(G) transportation;
(H) vocation;
(I) employment and training;
(J) education;
(K) assistance in obtaining veterans benefits and
public benefits;
(L) assistance in obtaining income support;
(M) assistance in obtaining health insurance;
(N) fiduciary and representative payee;
(O) legal aid;
(P) child care;
(Q) housing counseling;
(R) service coordination; and
(S) other services necessary for maintaining
independent living.
(2) Local coordination of services.--
(A) In general.--The Secretary of Housing and Urban
Development shall coordinate with the Secretary of the
Department of Veterans Affairs to ensure that owners of
housing assisted under this section have the managerial
capacity to--
(i) assess on an ongoing basis the service
needs of residents;
(ii) coordinate the provision of supportive
services and tailor such services to the
individual needs of residents; and
(iii) seek on a continuous basis new
sources of assistance to ensure the long-term
provision of supportive services.
(B) Classification of costs.--Any cost associated
with this subsection relating to the coordination of
services shall be an eligible cost under subsections
(c)(2).
(i) Development Cost Limitations.--
(1) In general.--The Secretary shall periodically establish
reasonable development cost limitations by market area for
various types and sizes of supportive housing for low-income
veteran families by publishing a notice of the cost limitations
in the Federal Register.
(2) Considerations.--The cost limitations established under
paragraph (1) shall reflect--
(A) the cost of construction, reconstruction, or
moderate or substantial rehabilitation of supportive
housing for low-income veteran families that meets
applicable State and local housing and building codes;
(B) the cost of movables necessary to the basic
operation of the housing, as determined by the
Secretary;
(C) the cost of special design features necessary
to make the housing accessible to low-income veteran
families;
(D) the cost of community space necessary to
accommodate the provision of supportive services to
veteran families;
(E) if the housing is newly constructed, the cost
of meeting the energy efficiency standards promulgated
by the Secretary in accordance with section 109 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12709); and
(F) the cost of land, including necessary site
improvement.
(3) Use of data.--In establishing development cost
limitations for a given market area under this subsection, the
Secretary shall use data that reflect currently prevailing
costs of construction, reconstruction, or moderate or
substantial rehabilitation, and land acquisition in the area.
(4) Community space.--For purposes of paragraph (2), a
community space shall include space for cafeterias or dining
halls, community rooms or buildings, workshops, child care,
adult day health facilities or other outpatient health
facilities, or other essential service facilities.
(5) Commercial facilities.--Neither this section nor any
other provision of law may be construed as prohibiting or
preventing the location and operation, in a project assisted
under this section, of commercial facilities for the benefit of
residents of the project and the community in which the project
is located, except that assistance made available under this
section may not be used to subsidize any such commercial
facility.
(6) Acquisition.--In the case of existing housing and
related facilities to be acquired, the cost limitations shall
include--
(A) the cost of acquiring such housing;
(B) the cost of rehabilitation, alteration,
conversion, or improvement, including the moderate or
substantial rehabilitation thereof; and
(C) the cost of the land on which the housing and
related facilities are located.
(7) Annual adjustments.--The Secretary shall adjust the
cost limitation not less than annually to reflect changes in
the general level of construction, reconstruction, and moderate
and substantial rehabilitation costs.
(8) Incentives for savings.--
(A) Special housing account.--
(i) In general.--The Secretary shall use
the development cost limitations established
under paragraph (1) or (6) to calculate the
amount of financing to be made available to
individual owners.
(ii) Actual developmental costs less than
financing.--Owners who incur actual development
costs that are less than the amount of
financing shall be entitled to retain 50
percent of the savings in a special housing
account.
(iii) Bonus for energy efficiency.--The
percentage established under clause (ii) shall
be increased to 75 percent for owners which add
energy efficiency features which--
(I) exceed the energy efficiency
standards promulgated by the Secretary
in accordance with section 109 of the
Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709);
(II) substantially reduce the life-
cycle cost of the housing; and
(III) reduce gross rent
requirements.
(B) Uses.--The special housing account established
under subparagraph (A) may be used--
(i) to provide services to residents of the
housing or funds set aside for replacement
reserves; or
(ii) for such other purposes as determined
by the Secretary.
(9) Design flexibility.--The Secretary shall, to the extent
practicable, give owners the flexibility to design housing
appropriate to their location and proposed resident population
within broadly defined parameters.
(10) Use of funds from other sources.--An owner shall be
permitted voluntarily to provide funds from sources other than
this section for amenities and other features of appropriate
design and construction suitable for supportive housing under
this section if the cost of such amenities is--
(A) not financed with the advance; and
(B) is not taken into account in determining the
amount of Federal assistance or of the rent
contribution of tenants.
(j) Tenant Selection.--
(1) In general.--An owner shall adopt written tenant
selection procedures that are--
(A) satisfactory to the Secretary and which are--
(i) consistent with the purpose of
improving housing opportunities for veteran
families and any units reserved for use
pursuant to subsection (d)(2); and
(ii) reasonably related to program
eligibility and an applicant's ability to
perform the obligations of the lease; and
(B) compliant with subtitle C of title VI of the
Housing and Community Development Act of 1992 (42
U.S.C. 13601 et seq.) and any regulations issued under
such subtitle.
(2) Notification of rejection.--Owners shall promptly
notify in writing any rejected applicant of the grounds for any
rejection.
(3) Information regarding housing.--
(A) In general.--The Secretary shall provide, to
the Secretary of Veterans Affairs and the Secretary of
Labor, information regarding the availability of the
housing assisted under this section.
(B) Sharing of information with additional
agencies.--Within 30 days of receipt of the
information, the Secretary of Veterans Affairs and
Secretary of Labor shall provide such information to
agencies in the area of the housing that receive
assistance from the Department of Veterans Affairs and
the Department of Labor for providing medical care,
housing, supportive services or employment and training
services to homeless veterans.
(k) Miscellaneous Provisions.--
(1) Technical assistance.--The Secretary shall make
available appropriate technical assistance to ensure that
prospective applicants are able to participate more fully in
the program carried out under this section.
(2) Civil rights compliance.--Each owner shall certify, to
the satisfaction of the Secretary, that assistance made
available under this section will be conducted and administered
in conformity with title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000a et seq.), the Fair Housing Act (42 U.S.C. 3601 et
seq.), and other Federal, State, and local laws prohibiting
discrimination and promoting equal opportunity.
(3) Owner deposit.--
(A) In general.--The Secretary shall require an
owner of housing, assisted under this section, to
deposit an amount not to exceed $25,000 in a special
escrow account to ensure the owner's commitment to the
housing. Such amount shall be used only to cover
operating deficits during the first three years of
operations and shall not be used to cover construction
shortfalls or inadequate initial project rental
assistance amounts.
(B) Reduction of requirement.--The Secretary may
reduce or waive the owner deposit specified under
subparagraph (A) for individual applicants if the
Secretary finds that such waiver or reduction is
necessary to achieve the purposes of this section and
the applicant demonstrates to the satisfaction of the
Secretary that it has the capacity to manage and
maintain the housing in accordance with this section.
(4) Notice of appeal.--
(A) In general.--The Secretary shall notify an
owner not less than 30 days prior to canceling any
reservation of assistance provided under this section.
(B) Appeal.--
(i) Filing deadline.--During the 30-day
period following the receipt of any notice
required under subparagraph (A), an owner may
appeal the proposed cancellation.
(ii) Timing of decision.--Any appeal
undertaken under clause (i), including review
by the Secretary, shall be completed not later
than 45 days after the appeal is filed.
(5) Labor.--
(A) In general.--The Secretary shall take such
action as may be necessary to ensure that all laborers
and mechanics employed by contractors and
subcontractors in the construction of housing with 12
or more units assisted under this section shall be paid
wages at rates not less than the rates prevailing in
the locality involved for the corresponding classes of
laborers and mechanics employed on construction of a
similar character, as determined by the Secretary of
Labor in accordance with subchapter IV of chapter 31 of
title 40, United States Code.
(B) Exemption.--Subparagraph (A) shall not apply to
any individual who--
(i) performs services for which the
individual volunteered;
(ii) does not receive compensation for such
services or is paid expenses, reasonable
benefits, or a nominal fee for such services;
and
(iii) is not otherwise employed at any time
in the construction work.
(6) Access to residual receipts.--
(A) In general.--The Secretary shall authorize the
owner of a housing project assisted under this section
to use any residual receipts held for the project in
excess of $500 per unit (or in excess of such other
amount prescribed by the Secretary based on the needs
of the project) for activities to retrofit and renovate
the project as described under section 802(d)(3) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 8011(d)(3)) or to provide supportive services to
residents of the project.
(B) Report.--Any owner that uses residual receipts
under this paragraph shall submit to the Secretary a
report, not less than annually, describing the uses of
the residual receipts.
(C) Determination of amount.--In determining the
amount of project rental assistance under subsection
(c)(2) of this section to be provided to a project, the
Secretary may take into consideration the residual
receipts held for the project only if, and to the
extent that, excess residual receipts are not used
under this paragraph.
(7) Occupancy standards and obligations.--Each owner shall
operate housing assisted under this section in compliance with
subtitle C of title VI of the Housing and Community Development
Act of 1992 (42 U.S.C. 13601 et seq.) and any regulations
issued under such subtitle.
(8) Use of project reserves.--
(A) In general.--Amounts for project reserves for a
project assisted under this section may be used for
costs, subject to reasonable limitations as the
Secretary determines appropriate, for reducing the
number of dwelling units in the project.
(B) Approval of secretary required.--Any use
described in subparagraph (A) of amounts for project
reserves for a project assisted under this section
shall be subject to the approval of the Secretary to
ensure that such use is designed to retrofit units that
are currently obsolete or unmarketable.
(9) Repayment of assistance and prevention of undue
benefits.--
(A) Repayment.--If a recipient, or a project
sponsor receiving funds from the recipient, receives
assistance under subsection (b) as a loan pursuant to
paragraph (1) of such subsection for the construction,
acquisition, or rehabilitation of supportive housing
for veteran families and the project ceases to provide
such permanent housing, the Secretary shall require the
recipient, or such project sponsor, to repay the
following percentage of such loan principal amount:
(i) In the case of a project that ceases to
be used for such supportive housing before the
expiration of the 10-year period beginning upon
commencement of the operation of the project,
100 percent.
(ii) In the case of a project that ceases
to be used for such supportive housing on or
after the expiration of the 10-year period
beginning upon commencement of the operation of
the project, but before the expiration of the
20-year period beginning upon such
commencement, 75 percent.
(iii) In the case of a project that ceases
to be used for such supportive housing on or
after the expiration of the 20-year period
beginning upon commencement of the operation of
the project, but before the expiration of the
30-year period beginning upon such
commencement, 50 percent.
(iv) In the case of a project that ceases
to be used for such supportive housing on or
after the expiration of the 30-year period
beginning upon commencement of the operation of
the project, but before the expiration of the
40-year period beginning upon such
commencement, 25 percent.
(B) Prevention of undue benefits.--Except as
provided in paragraph (C), if any property is used for
a project that receives assistance under subsection (b)
as a loan pursuant to paragraph (2) of such subsection
for the construction, acquisition or rehabilitation of
supportive housing for veteran families, and the sale
or other disposition of the property occurs before the
expiration of the 40-year period beginning upon
commencement of the operation of the project, the
recipient (or the project sponsor receiving funds from
the recipient) shall comply with such terms and
conditions as the Secretary may prescribe to prevent
the recipient (or such project sponsor) from unduly
benefitting from such sale or disposition.
(C) Exception.--A recipient, or a project sponsor
receiving funds from the recipient, shall not be
required to make repayments, and comply with the terms
and conditions, required under subparagraph (A) or (B)
if--
(i) the sale or disposition of the property
used for the project results in the use of the
property for the direct benefit of veteran
families;
(ii) all of the proceeds of the sale or
disposition are used to provide permanent
housing for veteran families meeting the
requirements of this section; or
(iii) project-based rental assistance or
operating cost assistance from any Federal
program or an equivalent State or local program
is no longer made available and the project is
meeting applicable performance standards,
provided that the portion of the project that
had benefitted from such assistance continues
to meet the tenant income and rent restrictions
for low-income units under section 42(g) of the
Internal Revenue Code of 1986.
(10) Continued eligibility of veteran families.--A veteran
family residing in supportive housing assisted under this
section may not be considered to lose its status as such a
family for purposes of eligibility for continued occupancy in
such housing due to the death of any veteran member of the
family, including the sole veteran member of the family.
(l) Definitions.--In this section, the following definitions shall
apply:
(1) Extremely low-income veteran family.--The term
``extremely low-income veteran family'' means a veteran family
whose income does not exceed 30 percent of the median income
for the area, as determined by the Secretary with adjustments
for smaller and larger families, except that the Secretary may
establish an income ceiling higher or lower than 30 percent of
the median for the area on the basis of the Secretary's
findings that such variations are necessary because of
prevailing levels of construction costs or fair market rents
(as determined under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f)), or unusually high or low family
incomes.
(2) Low-income veteran family.--The term ``low-income
veteran family'' means a veteran family whose income does not
exceed 80 percent of the median income for the area, as
determined by the Secretary with adjustments for smaller and
larger families, except that the Secretary may establish an
income ceiling higher or lower than 80 percent of the median
for the area on the basis of the Secretary's findings that such
variations are necessary because of prevailing levels of
construction costs or fair market rents (as determined under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f)), or unusually high or low family incomes. The term
includes a very low- or extremely low-income veteran family.
(3) Owner.--The term ``owner'' means a person or entity
that is for-profit developer that receives assistance under
this section to develop and operate supportive housing for
veteran families.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development, except where specifically
provided otherwise.
(5) State.--The term ``State'' includes the several States,
the District of Columbia, the Commonwealth of Puerto Rico, and
the possessions of the United States.
(6) Supportive housing for veteran families.--The term
``supportive housing for veteran families'' means housing that
is designed to accommodate the provision of supportive services
that are expected to be needed, either initially or over the
useful life of the housing, by the veteran families that the
housing is intended to serve.
(7) Veteran.--The term ``veteran'' has the meaning given
the term in section 101 of title 38, United States Code.
(8) Veteran family.--The term ``veteran family'' includes a
veteran who is a single person, a family (including families
with children) whose head of household (or whose spouse) is a
veteran, and one or more veterans living together with 1 or
more persons.
(9) Very low-income veteran family.--The term ``very low-
income veteran family'' means a veteran family whose income
does not exceed 50 percent of the median income for the area,
as determined by the Secretary with adjustments for smaller and
larger families, except that the Secretary may establish an
income ceiling higher or lower than 50 percent of the median
for the area on the basis of the Secretary's findings that such
variations are necessary because of prevailing levels of
construction costs or fair market rents (as determined under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f)), or unusually high or low family incomes. The term
includes an extremely low-income veteran family.
(m) Funding.--
(1) Use of tarp funds.--Using the authority available under
sections 101(a) and 115(a) of division A of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5211(a),
5225(a)), the Secretary of the Treasury shall transfer to the
Secretary of Housing and Urban Development $2,425,000,000, and
the Secretary of Housing and Urban Development shall use such
amount only for assistance for supportive housing for veteran
families under this section, as follows:
(A) Availability for obligation.--Of such amount,
$485,000,000 shall be available for such assistance in
each of fiscal years 2010, 2011, 2012, 2013, and 2014.
(B) Use for zero-interest loans and project rental
assistance.--Of the amount made available under
subparagraph (A) in each of the fiscal years referred
to in such subparagraph--
(i) $375,000,000 shall be available for
zero-interest loans under subsection (c)(1);
and
(ii) $110,000,000 shall be available for
project rental assistance under subsection
(c)(2).
(2) Reduction of tarp authorization limit to offset
costs.--Paragraph (3) of section 115(a) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5225) is amended
by inserting ``as such amount is reduced by $2,425,000,000''
after ``$700,000,000,000,''.
SEC. 3. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGIES.
(a) In General.--Section 105 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12705) is amended--
(1) in subsection (b)(1), by inserting ``veterans (as such
term is defined in section 101 of title 38, United States Code)
of such varying incomes,'' after ``acquired immunodeficiency
syndrome,'';
(2) in subsection (b)(20), by striking ``and service'' and
inserting ``veterans service, and other service''; and
(3) in subsection (e)(1), by inserting ``veterans (as such
term is defined in section 101 of title 38, United States
Code),'' after ``homeless persons,''.
(b) Consolidated Plans.--The Secretary of Housing and Urban
Development shall revise the regulations relating to submission of
consolidated plans (part 91 of title 24, Code of Federal Regulations)
in accordance with the amendments made by subsection (a) of this
section to require inclusion of appropriate information relating to
veterans and veterans service agencies in all such plans.
SEC. 4. COMPTROLLER GENERAL STUDY ON THE AVAILABILITY OF CREDIT FOR
VETERANS OF OPERATION IRAQI FREEDOM AND OPERATION
ENDURING FREEDOM.
(a) Study Required.--The Comptroller General shall carry out a
study on the availability of credit for veterans of Operation Iraqi
Freedom and Operation Enduring Freedom. As part of the study, the
Comptroller General shall determine whether the home loan guarantee
program administered by the Secretary is helpful to such veterans.
(b) Report to Congress.--Not later than the expiration of the 180-
day period beginning on the date of the enactment of this Act, the
Comptroller General shall submit to Congress a report on the study
required under subsection (a).
SEC. 5. INACTIVE RESERVISTS FORECLOSURE PREVENTION.
(a) Mortgage Assistance Program.--
(1) In general.--The Secretary of Housing and Urban
Development shall, to the extent amounts are made available for
mortgage assistance under this section, carry out a program
under this section to provide mortgage assistance through the
provision of grants and loans for direct mortgage payments on
behalf of eligible households.
(2) Eligible mortgages.--Mortgage assistance under this
section may be provided only with respect to a mortgage that
meets all of the following requirements:
(A) Mortgagor requirements.--The mortgagor under
the mortgage--
(i) is a member of an eligible household
that resides in the property that is subject to
the mortgage; and
(ii) has not, during the 24-month period
ending upon the date that the mortgagor submits
an application for assistance under this
section, been more than 60 days in arrears
under any mortgage for residential property.
(B) Dwelling requirements.--The property that is
subject to the mortgage is--
(i) designed principally as a residential
property; and
(ii) the primary place of residence of the
mortgagor and the mortgagor's household.
(b) Assistance Payments.--
(1) Monthly direct payment.--The Secretary shall design and
implement the program under this section in a manner that
provides that any amounts paid by the Secretary for mortgage
assistance with respect to an eligible mortgage are paid on a
monthly basis directly to the mortgagee or other servicer of
the mortgage.
(2) Period of assistance.--
(A) In general.--Payment under the program under
this section with respect to an eligible mortgage may
be made only for scheduled payments due under the terms
of the mortgage (as in effect pursuant to any
applicable provisions of law) during the period that a
member of the eligible household who is an eligible
member of the Armed Forces is serving on active duty
for a period of more than 30 days in the Armed Forces.
(B) Extended deployments.--The Secretary shall
ensure that in determining the amount of assistance to
be provided with respect to an eligible mortgage and
the period for which such assistance will be provided,
sufficient amounts for such assistance shall be
reserved under the program under this section to
provide for unpredictability and extensions in the
period of active duty of eligible members of the Armed
Forces.
(3) Determination of amount of assistance.--Subject to
paragraph (4), the Secretary shall determine the amount of
assistance to be provided with respect to an eligible mortgage
based upon criteria established by the Secretary, by
regulation.
(4) Limitations on amount of assistance.--The amount of
assistance provided under the program under this section with
respect to any eligible mortgage may not exceed the following
amounts:
(A) Monthly amount.--With respect to the assistance
payment for any single month, the amount due to be paid
for such month under the terms of the mortgage (as in
effect pursuant to any applicable provisions of law)
for principal, interest, mortgage insurance for the
mortgage, and any scheduled deposit in an escrow
account for the purpose of ensuring payment of taxes,
insurance, assessments, and other charges with respect
to the property subject to the mortgage.
(B) Aggregate amount.--An aggregate amount
assistance over the entire period under paragraph (2)
that assistance is provided with respect to the
mortgage, which shall be established by the Secretary
taking into consideration the total amount made
available for the program under this section.
(5) Prevention of double payments.--The Secretary shall
take appropriate actions to ensure that, in the case of any
payment on an eligible mortgage paid by a mortgagor for any
period for which payment has already been made under the
program under this section, the mortgagor or other servicer of
the mortgage shall return such payment within a reasonable
period of time or shall immediately credit such payment toward
amortization of the principal obligation under the mortgage,
and promptly notify the mortgagor of such credit.
(c) Repayment of Assistance.--
(1) Grant assistance; no repayment.--
(A) In general.--Any assistance provided under the
program under this section with respect to any eligible
mortgage during any period during which the annual
income of household of the mortgagor, as determined by
the Secretary, does not exceed 200 percent of the
poverty line applicable to a family of the size
involved shall be in the form of a grant and, except as
provided in subparagraph (B), the Secretary may not
require repayment of any such amounts.
(B) Repayment in cases of foreclosure.--If the
mortgagee for any eligible mortgage for which
assistance payments are made pursuant to this
subsection forecloses on the mortgage, takes legal
action to enforce the mortgage obligation, or otherwise
recovers possession of any security of the mortgage as
a result of default on the obligation of the mortgage,
the Secretary shall terminate payment of assistance
under this section with respect to the mortgage and
shall treat any assistance previously provided with
respect to the mortgage as assistance in the form of a
loan pursuant to paragraph (2).
(2) Loan assistance; repayment required.--Any assistance
provided under the program under this section with respect to
any eligible mortgage during any period during which the annual
income of household of the mortgagor, as determined by the
Secretary, exceeds 200 percent of the poverty line applicable
to a family of the size involved shall be in the form of a
loan, as follows:
(A) No interest.--Such loan shall not bear any
interest.
(B) 10-year term.--Such loan shall have a term to
maturity of 10 years, which shall not commence until
the period of assistance under subsection (b)(2) with
respect to mortgage has terminated.
(C) Security.--Repayment of such loan shall be
secured by a lien on the residential property that is
subject to the eligible mortgage for which the
assistance under this section was provided under the
loan, in the aggregate amount of such loan assistance
provided. Such lien shall be held by the Secretary and
shall be subordinate to other mortgages and other
secured liens on the property in effect upon the date
that assistance under the program under this section is
first provided for the mortgage, and to any Federal tax
lien, but shall be superior to any other lien.
(D) Agreement.--The terms of such loan shall be set
forth in a written agreement, as the Secretary
considers appropriate, between the Secretary and the
mortgagor.
(d) Application for Assistance.--
(1) In general.--To be eligible for mortgage assistance
under this section, a mortgagor for an eligible mortgage shall
submit an application for such assistance in such form and
manner as the Secretary shall require, which shall provide such
information regarding the eligible mortgage as the Secretary
shall require, including information sufficient for the
Secretary to comply with paragraph (2), and shall include a
financial statement disclosing all income of each member of the
household of the mortgagor regardless of source. An application
for such assistance may be submitted before the eligible member
of the Armed Forces who is a member of the eligible household
begins active duty described in subsection (g)(2).
(2) Notification to mortgagee and servicer.--Upon
submission of an application under paragraph (1), the Secretary
shall notify the mortgagee and servicer, if the mortgagee is
not the servicer, of the eligible mortgage of the submission of
the application for assistance under this section.
(3) Income information.--The Secretary shall require that
each such application include a certification by the mortgagor
for the eligible mortgage of the anticipated income of the
household of the mortgagor during the anticipated period of
assistance under this section, which, in the case of an
application described in the last sentence of paragraph (1),
may be based on household income in the month before
commencement of the active duty of the eligible member of the
Armed Forces, less any such income attributable to such
eligible member, plus the expected military pay of such
eligible member. The Secretary may make a determination
regarding compliance of the income of a mortgagor's household
with the requirements under paragraphs (1)(A) and (2) of
subsection (c) based upon such a certification, subject to such
reviews as the Secretary shall, by regulation, provide.
(4) Effect of misrepresentation.--A mortgagor who is
determined to have intentionally misrepresented any financial
information in connection with the filing of an application for
assistance under this section may be denied assistance and
required to immediately repay any amount of assistance already
received, and the mortgagee may, at any time thereafter, take
any legal action to enforce the mortgage, if appropriate.
(5) Review and determination.--
(A) In general.--The Secretary shall review each
application submitted for assistance under this section
and make a determination regarding the eligibility for
assistance of the mortgage specified in the application
not later than 30 days after receipt of the application
of the mortgagor, and shall notify the mortgagor and
the mortgagee and servicer of approval or disapproval
of such application not later than 30 days after making
the determination regarding approval.
(B) Failure to make determination.--If the
Secretary fails to make a determination regarding
eligibility for assistance of a mortgage during the 30-
day period specified in subparagraph (A) or fails to
provide the notice regarding such determination as
required under such paragraph, the mortgage shall be
considered for purposes of this section to have been
approved as eligible for assistance upon the date that
the application for the mortgage was submitted to the
Secretary.
(e) Coordination With Other Agencies and Entities.--
(1) Publicity.--The Secretary shall take such action as may
be necessary to ensure that eligible households and eligible
members of the Armed Forces are aware of and informed about the
availability of and requirements for mortgage assistance under
this section, which may include consulting and coordinating
appropriate activities with the Secretary of Defense, the
Federal financial institutions regulatory agencies, financial
institutions regulated by such regulatory agencies, other
mortgage lenders, the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, and mortgage
counseling agencies.
(2) Implementation.--The Secretary shall consider using
States, State or local agencies (including housing and housing
finance agencies), mortgage lenders and other financial
institutions, and other entities to conduct some or all of the
functions and responsibilities involved in carrying out the
program for mortgage assistance under this section and may
enter into agreements with such entities to provide for such
entities to carry out such functions and responsibilities as
the Secretary considers appropriate to ensure that such
assistance is provided in an effective and efficient manner.
(f) Savings Clause.--This section may not be construed to alter,
affect, or limit any provision of the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.).
(g) Definitions.--For the purposes of this section, the following
definitions apply:
(1) Active duty.--The terms ``active duty'' and ``active
duty for a period of more than 30 days'' have the meanings
given such terms in section 101(d) of title 10, United States
Code.
(2) Eligible member of the armed forces.--The term
``eligible member of the Armed Forces'' means a member of the
Armed Forces who, while a member of the Individual Ready
Reserve or the inactive National Guard, is serving on active
duty pursuant to a call or order to active duty for a period of
more than 30 days.
(3) Eligible mortgage.--The term ``eligible mortgage''
means any mortgage that meets the requirements of subsection
(a)(2) for assistance under this section.
(4) Eligible household.--The term ``eligible household''
means a household that--
(A) contains a member who is an eligible member of
the Armed Forces; and
(B) has been determined by the Secretary to be
eligible for mortgage assistance under this section.
(5) Federal financial institutions regulatory agencies.--
The term ``Federal financial institutions regulatory agencies''
means the Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Office of Thrift Supervision, and
the National Credit Union Administration.
(6) Household.--The term ``household'' means a mortgagor,
the mortgagor's spouse, children residing in the same residence
as the mortgagor, and any other person living in such residence
that is declared by the mortgagor as a dependent for Federal
income tax purposes.
(7) Income.--The term ``income'' means, with respect to the
household of an eligible mortgagor, the aggregate income from
the all sources of each member of the household, as determined
in accordance with criteria prescribed by the Secretary.
(8) Mortgage; mortgagee; mortgagor.--The terms
``mortgage'', ``mortgagee'', and ``mortgagor'' have the
meanings given such terms in section 201 of the National
Housing Act (12 U.S.C. 1707).
(9) Poverty line.--The term ``poverty line'' has the
meaning given such term in section 673(2) of the Omnibus Budget
Reconciliation Act of 1981, including any revision required by
such section.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(11) Servicer.--The term ``servicer'' has the meaning given
such term in section 6(i) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(i)).
(h) Funding.--
(1) Use of tarp funds.--Using the authority available under
sections 101(a) and 115(a) of division A of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5211(a),
5225(a)), the Secretary of the Treasury shall transfer to the
Secretary of Housing and Urban Development $25,000,000, and the
Secretary of Housing and Urban Development shall use such
amount only for mortgage assistance under this section,
including costs (as such term is defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of loans
under subsection (c)(2) of this section, except that of such
amount $5,000,000 shall be available for such assistance in
each of fiscal years 2010, 2011, 2012, 2013, and 2014.
(2) Reduction of tarp authorization limit to offset
costs.--Paragraph (3) of section 115(a) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5225), as amended
by section 3(m)(2) of this Act, is further amended by inserting
``, as such amount is reduced by $25,000,000'' after
``$700,000,000,000,''.
(i) Regulations.--Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act, the
Secretary, in consultation with the Federal financial institutions
regulatory agencies, shall issue such regulations as may be necessary
to carry out this Act, which shall provide for the implementation of
the mortgage assistance program under this Act upon the expiration of
such period.
<all>