1.This Act may be cited as the
Increasing Housing Opportunities for
Veterans Act of 2009
.
2.Loans for
development of supportive housing for veteran families
(a)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)
(1)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)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)In
carrying out this section, the Secretary shall consult with the Secretary of
Veterans Affairs.
(c)Assistance under this section shall be made available
in the following forms:
(1)Assistance may be
provided as a loan under this paragraph for the project, subject to the
following terms:
(A)The loan shall not bear interest.
(B)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)The loan shall be in an amount calculated
in accordance with the development cost limitation under subsection (i).
(2)Project rental
assistanceAssistance 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)
(1)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 veteransOf 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)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)
(1)Amounts made available under this section shall be
allocated by the Secretary among approvable applications submitted by
for-profit developers.
(2)
(A)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)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)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)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)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)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)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)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)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)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)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)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)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)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)
(A)
(i)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 financingOwners 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 efficiencyThe 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)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)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 sourcesAn 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)
(1)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
rejectionOwners shall promptly notify in writing any rejected
applicant of the grounds for any rejection.
(3)Information
regarding housing
(A)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 agenciesWithin 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)
(1)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)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)
(A)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)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)
(A)The Secretary shall notify an owner not less than 30 days
prior to canceling any reservation of assistance provided under this
section.
(B)
(i)During the 30-day period following the receipt of any
notice required under subparagraph (A), an owner may appeal the proposed
cancellation.
(ii)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)
(A)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)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)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)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)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 obligationsEach 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)
(A)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 requiredAny 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)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 benefitsExcept 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)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 familiesA 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)In
this section, the following definitions shall apply:
(1)Extremely
low-income veteran familyThe
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 familyThe 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)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)The
term Secretary means the Secretary of Housing and Urban
Development, except where specifically provided otherwise.
(5)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 familiesThe 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)The
term veteran has the meaning given the term in section 101 of
title 38, United States Code.
(8)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 familyThe 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)
(1)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
obligationOf 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 assistanceOf 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 costsParagraph (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,
.
3.Comprehensive
Housing Affordability Strategies
(a)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)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.
4.Comptroller
General study on the availability of credit for veterans of Operation Iraqi
Freedom and Operation Enduring Freedom
(a)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)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).
5.Inactive
reservists foreclosure prevention
(a)Mortgage
assistance program
(1)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)Mortgage assistance under this section may be provided
only with respect to a mortgage that meets all of the following
requirements:
(A)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)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)
(1)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)
(A)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)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 assistanceSubject 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 assistanceThe amount of assistance provided under the
program under this section with respect to any eligible mortgage may not exceed
the following amounts:
(A)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)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 paymentsThe 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)
(1)Grant
assistance; no repayment
(A)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 foreclosureIf 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 requiredAny
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)Such loan shall not bear any interest.
(B)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)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)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)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 servicerUpon 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)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
MisrepresentationA 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)
(A)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
determinationIf 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)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)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)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)For
the purposes of this section, the following definitions apply:
(1)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 ForcesThe 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)The term eligible mortgage
means any
mortgage that meets the requirements of subsection (a)(2) for assistance under
this section.
(4)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 agenciesThe 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)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)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; mortgagorThe 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)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)The
term Secretary
means the Secretary of Housing and Urban
Development.
(11)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)
(1)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 costsParagraph (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)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.