[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 896 Enrolled Bill (ENR)]
S.896
One Hundred Eleventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and nine
An Act
To prevent mortgage foreclosures and enhance mortgage credit
availability.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
DIVISION A--PREVENTING MORTGAGE FORECLOSURES
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the ``Helping
Families Save Their Homes Act of 2009''.
(b) Table of Contents.--The table of contents of this division is
the following:
Sec. 1. Short title; table of contents.
TITLE I--PREVENTION OF MORTGAGE FORECLOSURES
Sec. 101. Guaranteed rural housing loans.
Sec. 102. Modification of housing loans guaranteed by the Department of
Veterans Affairs.
Sec. 103. Additional funding for HUD programs to assist individuals to
better withstand the current mortgage crisis.
Sec. 104. Mortgage modification data collecting and reporting.
Sec. 105. Neighborhood Stabilization Program Refinements.
TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY
Sec. 201. Servicer safe harbor for mortgage loan modifications.
Sec. 202. Changes to HOPE for Homeowners Program.
Sec. 203. Requirements for FHA-approved mortgagees.
Sec. 204. Enhancement of liquidity and stability of insured depository
institutions to ensure availability of credit and reduction of
foreclosures.
Sec. 205. Application of GSE conforming loan limit to mortgages assisted
with TARP funds.
Sec. 206. Mortgages on certain homes on leased land.
Sec. 207. Sense of Congress regarding mortgage revenue bond purchases.
TITLE III--MORTGAGE FRAUD TASK FORCE
Sec. 301. Sense of the Congress on establishment of a Nationwide
Mortgage Fraud Task Force.
TITLE IV--FORECLOSURE MORATORIUM PROVISIONS
Sec. 401. Sense of the Congress on foreclosures.
Sec. 402. Public-Private Investment Program; Additional Appropriations
for the Special Inspector General for the Troubled Asset
Relief Program.
Sec. 403. Removal of requirement to liquidate warrants under the TARP.
Sec. 404. Notification of sale or transfer of mortgage loans.
TITLE V--FARM LOAN RESTRUCTURING
Sec. 501. Congressional Oversight Panel special report.
TITLE VI--ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF PROGRAM
Sec. 601. Enhanced oversight of the Troubled Asset Relief Program.
TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT
Sec. 701. Short title.
Sec. 702. Effect of foreclosure on preexisting tenancy.
Sec. 703. Effect of foreclosure on section 8 tenancies.
Sec. 704. Sunset.
TITLE VIII--COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES
Sec. 801. Comptroller General additional audit authorities.
TITLE I--PREVENTION OF MORTGAGE FORECLOSURES
SEC. 101. GUARANTEED RURAL HOUSING LOANS.
(a) Guaranteed Rural Housing Loans.--Section 502(h) of the Housing
Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) by redesignating paragraphs (13) and (14) as paragraphs
(16) and (17), respectively; and
(2) by inserting after paragraph (12) the following new
paragraphs:
``(13) Loss mitigation.--Upon default or imminent default of
any mortgage guaranteed under this subsection, mortgagees shall
engage in loss mitigation actions for the purpose of providing an
alternative to foreclosure (including actions such as special
forbearance, loan modification, pre-foreclosure sale, deed in lieu
of foreclosure, as required, support for borrower housing
counseling, subordinate lien resolution, and borrower relocation),
as provided for by the Secretary.
``(14) Payment of partial claims and mortgage modifications.--
The Secretary may authorize the modification of mortgages, and
establish a program for payment of a partial claim to a mortgagee
that agrees to apply the claim amount to payment of a mortgage on a
1- to 4-family residence, for mortgages that are in default or face
imminent default, as defined by the Secretary. Any payment under
such program directed to the mortgagee shall be made at the sole
discretion of the Secretary and on terms and conditions acceptable
to the Secretary, except that--
``(A) the amount of the partial claim payment shall be in
an amount determined by the Secretary, and shall not exceed an
amount equivalent to 30 percent of the unpaid principal balance
of the mortgage and any costs that are approved by the
Secretary;
``(B) the amount of the partial claim payment shall be
applied first to any outstanding indebtedness on the mortgage,
including any arrearage, but may also include principal
reduction;
``(C) the mortgagor shall agree to repay the amount of the
partial claim to the Secretary upon terms and conditions
acceptable to the Secretary;
``(D) expenses related to a partial claim or modification
are not to be charged to the borrower;
``(E) the Secretary may authorize compensation to the
mortgagee for lost income on monthly mortgage payments due to
interest rate reduction;
``(F) the Secretary may reimburse the mortgagee from the
appropriate guaranty fund in connection with any activities
that the mortgagee is required to undertake concerning
repayment by the mortgagor of the amount owed to the Secretary;
``(G) the Secretary may authorize payments to the mortgagee
on behalf of the borrower, under such terms and conditions as
are defined by the Secretary, based on successful performance
under the terms of the mortgage modification, which shall be
used to reduce the principal obligation under the modified
mortgage; and
``(H) the Secretary may authorize the modification of
mortgages with terms extended up to 40 years from the date of
modification.
``(15) Assignment.--
``(A) Program authority.--The Secretary may establish a
program for assignment to the Secretary, upon request of the
mortgagee, of a mortgage on a 1- to 4-family residence
guaranteed under this chapter.
``(B) Program requirements.--
``(i) In general.--The Secretary may encourage loan
modifications for eligible delinquent mortgages or
mortgages facing imminent default, as defined by the
Secretary, through the payment of the guaranty and
assignment of the mortgage to the Secretary and the
subsequent modification of the terms of the mortgage
according to a loan modification approved under this
section.
``(ii) Acceptance of assignment.--The Secretary may
accept assignment of a mortgage under a program under this
subsection only if--
``(I) the mortgage is in default or facing imminent
default;
``(II) the mortgagee has modified the mortgage or
qualified the mortgage for modification sufficient to
cure the default and provide for mortgage payments the
mortgagor is reasonably able to pay, at interest rates
not exceeding current market interest rates; and
``(III) the Secretary arranges for servicing of the
assigned mortgage by a mortgagee (which may include the
assigning mortgagee) through procedures that the
Secretary has determined to be in the best interests of
the appropriate guaranty fund.
``(C) Payment of guaranty.--Under the program under this
paragraph, the Secretary may pay the guaranty for a mortgage,
in the amount determined in accordance with paragraph (2),
without reduction for any amounts modified, but only upon the
assignment, transfer, and delivery to the Secretary of all
rights, interest, claims, evidence, and records with respect to
the mortgage, as defined by the Secretary.
``(D) Disposition.--After modification of a mortgage
pursuant to this paragraph, and assignment of the mortgage, the
Secretary may provide guarantees under this subsection for the
mortgage. The Secretary may subsequently--
``(i) re-assign the mortgage to the mortgagee under
terms and conditions as are agreed to by the mortgagee and
the Secretary;
``(ii) act as a Government National Mortgage
Association issuer, or contract with an entity for such
purpose, in order to pool the mortgage into a Government
National Mortgage Association security; or
``(iii) re-sell the mortgage in accordance with any
program that has been established for purchase by the
Federal Government of mortgages insured under this title,
and the Secretary may coordinate standards for interest
rate reductions available for loan modification with
interest rates established for such purchase.
``(E) Loan servicing.--In carrying out the program under
this subsection, the Secretary may require the existing
servicer of a mortgage assigned to the Secretary under the
program to continue servicing the mortgage as an agent of the
Secretary during the period that the Secretary acquires and
holds the mortgage for the purpose of modifying the terms of
the mortgage. If the mortgage is resold pursuant to
subparagraph (D)(iii), the Secretary may provide for the
existing servicer to continue to service the mortgage or may
engage another entity to service the mortgage.''.
(b) Technical Amendments.--Subsection (h) of section 502 of the
Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) in paragraph (5)(A), by striking ``(as defined in paragraph
(13)'' and inserting ``(as defined in paragraph (17)''; and
(2) in paragraph (18)(E)(as so redesignated by subsection
(a)(2)), by--
(A) striking ``paragraphs (3), (6), (7)(A), (8), and (10)''
and inserting ``paragraphs (3), (6), (7)(A), (8), (10), (13),
and (14)''; and
(B) striking ``paragraphs (2) through (13)'' and inserting
``paragraphs (2) through (15)''.
(c) Procedure.--
(1) In general.--The promulgation of regulations necessitated
and the administration actions required by the amendments made by
this section shall be made without regard to--
(A) the notice and comment provisions of section 553 of
title 5, United States Code;
(B) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(C) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(2) Congressional review of agency rulemaking.--In carrying out
this section, and the amendments made by this section, the
Secretary shall use the authority provided under section 808 of
title 5, United States Code.
SEC. 102. MODIFICATION OF HOUSING LOANS GUARANTEED BY THE
DEPARTMENT OF VETERANS AFFAIRS.
(a) Maturity of Housing Loans.--Section 3703(d)(1) of title 38,
United States Code, is amended by inserting ``at the time of
origination'' after ``loan''.
(b) Implementation.--The Secretary of Veterans Affairs may
implement the amendments made by this section through notice, procedure
notice, or administrative notice.
SEC. 103. ADDITIONAL FUNDING FOR HUD PROGRAMS TO ASSIST INDIVIDUALS
TO BETTER WITHSTAND THE CURRENT MORTGAGE CRISIS.
(a) Additional Appropriations for Advertising To Increase Public
Awareness of Mortgage Scams and Counseling Assistance.--In addition to
any amounts that may be appropriated for each of the fiscal years 2010
and 2011 for such purpose, there is authorized to be appropriated to
the Secretary of Housing and Urban Development, to remain available
until expended, $10,000,000 for each of the fiscal years 2010 and 2011
for purposes of providing additional resources to be used for
advertising to raise awareness of mortgage fraud and to support HUD
programs and approved counseling agencies, provided that such amounts
are used to advertise in the 100 metropolitan statistical areas with
the highest rate of home foreclosures, and provided, further that up to
$5,000,000 of such amounts are used for advertisements designed to
reach and inform broad segments of the community.
(b) Additional Appropriations for the Housing Counseling Assistance
Program.--In addition to any amounts that may be appropriated for each
of the fiscal years 2010 and 2011 for such purpose, there is authorized
to be appropriated to the Secretary of Housing and Urban Development,
to remain available until expended, $50,000,000 for each of the fiscal
years 2010 and 2011 to carry out the Housing Counseling Assistance
Program established within the Department of Housing and Urban
Development, provided that such amounts are used to fund HUD-certified
housing-counseling agencies located in the 100 metropolitan statistical
areas with the highest rate of home foreclosures for the purpose of
assisting homeowners with inquiries regarding mortgage-modification
assistance and mortgage scams.
(c) Additional Appropriations for Personnel at the Office of Fair
Housing and Equal Opportunity.--In addition to any amounts that may be
appropriated for each of the fiscal years 2010 and 2011 for such
purpose, there is authorized to be appropriated to the Secretary of
Housing and Urban Development, to remain available until expended,
$5,000,000 for each of the fiscal years 2010 and 2011 for purposes of
hiring additional personnel at the Office of Fair Housing and Equal
Opportunity within the Department of Housing and Urban Development,
provided that such amounts are used to hire personnel at the local
branches of such Office located in the 100 metropolitan statistical
areas with the highest rate of home foreclosures.
SEC. 104. MORTGAGE MODIFICATION DATA COLLECTING AND REPORTING.
(a) Reporting Requirements.--Not later than 120 days after the date
of the enactment of this Act, and quarterly thereafter, the Comptroller
of the Currency and the Director of the Office of Thrift Supervision,
shall jointly submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Committee on Financial Services of the
House of Representatives on the volume of mortgage modifications
reported to the Office of the Comptroller of the Currency and the
Office of Thrift Supervision, under the mortgage metrics program of
each such Office, during the previous quarter, including the following:
(1) A copy of the data collection instrument currently used by
the Office of the Comptroller of the Currency and the Office of
Thrift Supervision to collect data on loan modifications.
(2) The total number of mortgage modifications resulting in
each of the following:
(A) Additions of delinquent payments and fees to loan
balances.
(B) Interest rate reductions and freezes.
(C) Term extensions.
(D) Reductions of principal.
(E) Deferrals of principal.
(F) Combinations of modifications described in subparagraph
(A), (B), (C), (D), or (E).
(3) The total number of mortgage modifications in which the
total monthly principal and interest payment resulted in the
following:
(A) An increase.
(B) Remained the same.
(C) Decreased less than 10 percent.
(D) Decreased between 10 percent and 20 percent.
(E) Decreased 20 percent or more.
(4) The total number of loans that have been modified and then
entered into default, where the loan modification resulted in--
(A) higher monthly payments by the homeowner;
(B) equivalent monthly payments by the homeowner;
(C) lower monthly payments by the homeowner of up to 10
percent;
(D) lower monthly payments by the homeowner of between 10
percent to 20 percent; or
(E) lower monthly payments by the homeowner of more than 20
percent.
(b) Data Collection.--
(1) Required.--
(A) In general.--Not later than 60 days after the date of
the enactment of this Act, the Comptroller of the Currency and
the Director of the Office of Thrift Supervision, shall issue
mortgage modification data collection and reporting
requirements to institutions covered under the reporting
requirement of the mortgage metrics program of the Comptroller
or the Director.
(B) Inclusiveness of collections.--The requirements under
subparagraph (A) shall provide for the collection of all
mortgage modification data needed by the Comptroller of the
Currency and the Director of the Office of Thrift Supervision
to fulfill the reporting requirements under subsection (a).
(2) Report.--The Comptroller of the Currency shall report all
requirements established under paragraph (1) to each committee
receiving the report required under subsection (a).
SEC. 105. NEIGHBORHOOD STABILIZATION PROGRAM REFINEMENTS.
(a) In General.--Section 2301(c) of the Foreclosure Prevention Act
of 2008 (42 U.S.C. 5301 note) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Exception for certain states.--Each State that has
received the minimum allocation of amounts pursuant to the
requirement under section 2302 may, to the extent such State has
fulfilled the requirements of paragraph (2), distribute any
remaining amounts to areas with homeowners at risk of foreclosure
or in foreclosure without regard to the percentage of home
foreclosures in such areas.''.
(b) Retroactive Effective Date.--The amendment made by subsection
(a) shall take effect as if enacted on the date of enactment of the
Foreclosure Prevention Act of 2008 (Public Law 110-289).
TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY
SEC. 201. SERVICER SAFE HARBOR FOR MORTGAGE LOAN MODIFICATIONS.
(a) Congressional Findings.--Congress finds the following:
(1) Increasing numbers of mortgage foreclosures are not only
depriving many Americans of their homes, but are also destabilizing
property values and negatively affecting State and local economies
as well as the national economy.
(2) In order to reduce the number of foreclosures and to
stabilize property values, local economies, and the national
economy, servicers must be given--
(A) authorization to--
(i) modify mortgage loans and engage in other loss
mitigation activities consistent with applicable guidelines
issued by the Secretary of the Treasury or his designee
under the Emergency Economic Stabilization Act of 2008; and
(ii) refinance mortgage loans under the Hope for
Homeowners program; and
(B) a safe harbor to enable such servicers to exercise
these authorities.
(b) Safe Harbor.--Section 129A of the Truth in Lending Act (15
U.S.C. 1639a) is amended to read as follows:
``SEC. 129. DUTY OF SERVICERS OF RESIDENTIAL MORTGAGES.
``(a) In General.--Notwithstanding any other provision of law,
whenever a servicer of residential mortgages agrees to enter into a
qualified loss mitigation plan with respect to 1 or more residential
mortgages originated before the date of enactment of the Helping
Families Save Their Homes Act of 2009, including mortgages held in a
securitization or other investment vehicle--
``(1) to the extent that the servicer owes a duty to investors
or other parties to maximize the net present value of such
mortgages, the duty shall be construed to apply to all such
investors and parties, and not to any individual party or group of
parties; and
``(2) the servicer shall be deemed to have satisfied the duty
set forth in paragraph (1) if, before December 31, 2012, the
servicer implements a qualified loss mitigation plan that meets the
following criteria:
``(A) Default on the payment of such mortgage has occurred,
is imminent, or is reasonably foreseeable, as such terms are
defined by guidelines issued by the Secretary of the Treasury
or his designee under the Emergency Economic Stabilization Act
of 2008.
``(B) The mortgagor occupies the property securing the
mortgage as his or her principal residence.
``(C) The servicer reasonably determined, consistent with
the guidelines issued by the Secretary of the Treasury or his
designee, that the application of such qualified loss
mitigation plan to a mortgage or class of mortgages will likely
provide an anticipated recovery on the outstanding principal
mortgage debt that will exceed the anticipated recovery through
foreclosures.
``(b) No Liability.--A servicer that is deemed to be acting in the
best interests of all investors or other parties under this section
shall not be liable to any party who is owed a duty under subsection
(a)(1), and shall not be subject to any injunction, stay, or other
equitable relief to such party, based solely upon the implementation by
the servicer of a qualified loss mitigation plan.
``(c) Standard Industry Practice.--The qualified loss mitigation
plan guidelines issued by the Secretary of the Treasury under the
Emergency Economic Stabilization Act of 2008 shall constitute standard
industry practice for purposes of all Federal and State laws.
``(d) Scope of Safe Harbor.--Any person, including a trustee,
issuer, and loan originator, shall not be liable for monetary damages
or be subject to an injunction, stay, or other equitable relief, based
solely upon the cooperation of such person with a servicer when such
cooperation is necessary for the servicer to implement a qualified loss
mitigation plan that meets the requirements of subsection (a).
``(e) Reporting.--Each servicer that engages in qualified loss
mitigation plans under this section shall regularly report to the
Secretary of the Treasury the extent, scope, and results of the
servicer's modification activities. The Secretary of the Treasury shall
prescribe regulations or guidance specifying the form, content, and
timing of such reports.
``(f) Definitions.--As used in this section--
``(1) the term `qualified loss mitigation plan' means--
``(A) a residential loan modification, workout, or other
loss mitigation plan, including to the extent that the
Secretary of the Treasury determines appropriate, a loan sale,
real property disposition, trial modification, pre-foreclosure
sale, and deed in lieu of foreclosure, that is described or
authorized in guidelines issued by the Secretary of the
Treasury or his designee under the Emergency Economic
Stabilization Act of 2008; and
``(B) a refinancing of a mortgage under the Hope for
Homeowners program;
``(2) the term `servicer' means the person responsible for the
servicing for others of residential mortgage loans (including of a
pool of residential mortgage loans); and
``(3) the term `securitization vehicle' means a trust, special
purpose entity, or other legal structure that is used to facilitate
the issuing of securities, participation certificates, or similar
instruments backed by or referring to a pool of assets that
includes residential mortgages (or instruments that are related to
residential mortgages such as credit-linked notes).
``(g) Rule of Construction.--No provision of subsection (b) or (d)
shall be construed as affecting the liability of any servicer or person
as described in subsection (d) for actual fraud in the origination or
servicing of a loan or in the implementation of a qualified loss
mitigation plan, or for the violation of a State or Federal law,
including laws regulating the origination of mortgage loans, commonly
referred to as predatory lending laws.''.
SEC. 202. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.
(a) Program Changes.--Section 257 of the National Housing Act (12
U.S.C. 1715z-23) is amended--
(1) in subsection (c)--
(A) in the heading for paragraph (1), by striking ``the
board'' and inserting ``secretary'';
(B) in paragraph (1), by striking ``Board'' inserting
``Secretary, after consultation with the Board,'';
(C) in paragraph (1)(A), by inserting ``consistent with
section 203(b) to the maximum extent possible'' before the
semicolon; and
(D) by adding after paragraph (2) the following:
``(3) Duties of board.--The Board shall advise the Secretary
regarding the establishment and implementation of the HOPE for
Homeowners Program.'';
(2) by striking ``Board'' each place such term appears in
subsections (e), (h)(1), (h)(3), (j), (l), (n), (s)(3), and (v) and
inserting ``Secretary'';
(3) in subsection (e)--
(A) by striking paragraph (1) and inserting the following:
``(1) Borrower certification.--
``(A) No intentional default or false information.--The
mortgagor shall provide a certification to the Secretary that
the mortgagor has not intentionally defaulted on the existing
mortgage or mortgages or any other substantial debt within the
last 5 years and has not knowingly, or willfully and with
actual knowledge, furnished material information known to be
false for the purpose of obtaining the eligible mortgage to be
insured and has not been convicted under Federal or State law
for fraud during the 10-year period ending upon the insurance
of the mortgage under this section.
``(B) Liability for repayment.--The mortgagor shall agree
in writing that the mortgagor shall be liable to repay to the
Secretary any direct financial benefit achieved from the
reduction of indebtedness on the existing mortgage or mortgages
on the residence refinanced under this section derived from
misrepresentations made by the mortgagor in the certifications
and documentation required under this paragraph, subject to the
discretion of the Secretary.
``(C) Current borrower debt-to-income ratio.--As of the
date of application for a commitment to insure or insurance
under this section, the mortgagor shall have had, or thereafter
is likely to have, due to the terms of the mortgage being
reset, a ratio of mortgage debt to income, taking into
consideration all existing mortgages of that mortgagor at such
time, greater than 31 percent (or such higher amount as the
Secretary determines appropriate).'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking ``, subject to
standards established by the Board under subparagraph
(B),''; and
(ii) in subparagraph (B)(i), by striking ``shall'' and
inserting ``may''; and
(C) in paragraph (7), by striking ``; and provided that''
and all that follows through ``new second lien'';
(D) in paragraph (9)--
(i) by striking ``by procuring (A) an income tax return
transcript of the income tax return of the mortgagor, or
(B)'' and inserting ``in accordance with procedures and
standards that the Secretary shall establish (provided that
such procedures and standards are consistent with section
203(b) to the maximum extent possible) which may include
requiring the mortgagee to procure''; and
(ii) by striking ``and by any other method, in
accordance with procedures and standards that the Board
shall establish'';
(E) in paragraph (10)--
(i) by striking ``The mortgagor shall not'' and
inserting the following:
``(A) Prohibition.--The mortgagor shall not''; and
(ii) by adding at the end the following:
``(B) Duty of mortgagee.--The duty of the mortgagee to
ensure that the mortgagor is in compliance with the prohibition
under subparagraph (A) shall be satisfied if the mortgagee
makes a good faith effort to determine that the mortgagor has
not been convicted under Federal or State law for fraud during
the period described in subparagraph (A).'';
(F) in paragraph (11), by inserting before the period at
the end the following: ``, except that the Secretary may
provide exceptions to such latter requirement (relating to
present ownership interest) for any mortgagor who has inherited
a property''; and
(G) by adding at the end:
``(12) Ban on millionaires.--The mortgagor shall not have a net
worth, as of the date the mortgagor first applies for a mortgage to
be insured under the Program under this section, that exceeds
$1,000,000.'';
(4) in subsection (h)(2), by striking ``The Board shall
prohibit the Secretary from paying'' and inserting ``The Secretary
shall not pay''; and
(5) in subsection (i)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and adjusting the
margins accordingly;
(B) in the matter preceding subparagraph (A), as
redesignated by this paragraph, by striking ``For each'' and
inserting the following:
``(1) Premiums.--For each'';
(C) in subparagraph (A), as redesignated by this paragraph,
by striking ``equal to 3 percent'' and inserting ``not more
than 3 percent''; and
(D) in subparagraph (B), as redesignated by this paragraph,
by striking ``equal to 1.5 percent'' and inserting ``not more
than 1.5 percent'';
(E) by adding at the end the following:
``(2) Considerations.--In setting the premium under this
subsection, the Secretary shall consider--
``(A) the financial integrity of the HOPE for Homeowners
Program; and
``(B) the purposes of the HOPE for Homeowners Program
described in subsection (b).'';
(6) in subsection (k)--
(A) by striking the subsection heading and inserting ``Exit
Fee'';
(B) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``such sale or refinancing'' and inserting
``the mortgage being insured under this section''; and
(C) in paragraph (2), by striking ``and the mortgagor'' and
all that follows through the end and inserting ``may, upon any
sale or disposition of the property to which the mortgage
relates, be entitled to up to 50 percent of appreciation, up to
the appraised value of the home at the time when the mortgage
being refinanced under this section was originally made. The
Secretary may share any amounts received under this paragraph
with or assign the rights of any amounts due to the Secretary
to the holder of the existing senior mortgage on the eligible
mortgage, the holder of any existing subordinate mortgage on
the eligible mortgage, or both.'';
(7) in the heading for subsection (n), by striking ``the
Board'' and inserting ``Secretary'';
(8) in subsection (p), by striking ``Under the direction of the
Board, the'' and inserting ``The'';
(9) in subsection (s)--
(A) in the first sentence of paragraph (2), by striking
``Board of Directors of'' and inserting ``Advisory Board for'';
and
(B) in paragraph (3)(A)(ii), by striking ``subsection
(e)(1)(B) and such other'' and inserting ``such'';
(10) in subsection (v), by inserting after the period at the
end the following: ``The Secretary shall conform documents, forms,
and procedures for mortgages insured under this section to those in
place for mortgages insured under section 203(b) to the maximum
extent possible consistent with the requirements of this
section.''; and
(11) by adding at the end the following new subsections:
``(x) Payments to Servicers and Originators.--The Secretary may
establish a payment to the--
``(1) servicer of the existing senior mortgage or existing
subordinate mortgage for every loan insured under the HOPE for
Homeowners Program; and
``(2) originator of each new loan insured under the HOPE for
Homeowners Program.
``(y) Auctions.--The Secretary, with the concurrence of the Board,
shall, if feasible, establish a structure and organize procedures for
an auction to refinance eligible mortgages on a wholesale or bulk
basis.''.
(b) Reducing TARP Funds To Offset Costs of Program Changes.--
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 $1,244,000,000,'' after ``$700,000,000,000''.
(c) Technical Correction.--The second section 257 of the National
Housing Act (Public Law 110-289; 122 Stat. 2839; 12 U.S.C. 1715z-24) is
amended by striking the section heading and inserting the following:
``SEC. 258. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS
WITHOUT SUFFICIENT CREDIT HISTORY.''.
SEC. 203. REQUIREMENTS FOR FHA-APPROVED MORTGAGEES.
(a) Mortgagee Review Board.--
(1) In general.--Section 202(c)(2) of the National Housing Act
(12 U.S.C. 1708(c)) is amended--
(A) in subparagraph (E), by inserting ``and'' after the
semicolon;
(B) in subparagraph (F), by striking ``; and'' and
inserting ``or their designees.''; and
(C) by striking subparagraph (G).
(2) Prohibition against limitations on mortgagee review board's
power to take action against mortgagees.--Section 202(c) of the
National Housing Act (12 U.S.C. 1708(c)) is amended by adding at
the end the following new paragraph:
``(9) Prohibition against limitations on mortgagee review
board's power to take action against mortgagees.--No State or local
law, and no Federal law (except a Federal law enacted expressly in
limitation of this subsection after the effective date of this
sentence), shall preclude or limit the exercise by the Board of its
power to take any action authorized under paragraphs (3) and (6) of
this subsection against any mortgagee.''.
(b) Limitations on Participation and Mortgagee Approval and Use of
Name.--Section 202 of the National Housing Act (12 U.S.C. 1708) is
amended--
(1) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following new
subsection:
``(d) Limitations on Participation in Origination and Mortgagee
Approval.--
``(1) Requirement.--Any person or entity that is not approved
by the Secretary to serve as a mortgagee, as such term is defined
in subsection (c)(7), shall not participate in the origination of
an FHA-insured loan except as authorized by the Secretary.
``(2) Eligibility for approval.--In order to be eligible for
approval by the Secretary, an applicant mortgagee shall not be, and
shall not have any officer, partner, director, principal, manager,
supervisor, loan processor, loan underwriter, or loan originator of
the applicant mortgagee who is--
``(A) currently suspended, debarred, under a limited denial
of participation (LDP), or otherwise restricted under part 25
of title 24 of the Code of Federal Regulations, 2 Code of
Federal Regulations, part 180 as implemented by part 2424, or
any successor regulations to such parts, or under similar
provisions of any other Federal agency;
``(B) under indictment for, or has been convicted of, an
offense that reflects adversely upon the applicant's integrity,
competence or fitness to meet the responsibilities of an
approved mortgagee;
``(C) subject to unresolved findings contained in a
Department of Housing and Urban Development or other
governmental audit, investigation, or review;
``(D) engaged in business practices that do not conform to
generally accepted practices of prudent mortgagees or that
demonstrate irresponsibility;
``(E) convicted of, or who has pled guilty or nolo
contendre to, a felony related to participation in the real
estate or mortgage loan industry--
``(i) during the 7-year period preceding the date of
the application for licensing and registration; or
``(ii) at any time preceding such date of application,
if such felony involved an act of fraud, dishonesty, or a
breach of trust, or money laundering;
``(F) in violation of provisions of the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any
applicable provision of State law; or
``(G) in violation of any other requirement as established
by the Secretary.
``(3) Rulemaking and implementation.--The Secretary shall
conduct a rulemaking to carry out this subsection. The Secretary
shall implement this subsection not later than the expiration of
the 60-day period beginning upon the date of the enactment of this
subsection by notice, mortgagee letter, or interim final
regulations, which shall take effect upon issuance.''; and
(3) by adding at the end the following new subsection:
``(h) Use of Name.--The Secretary shall, by regulation, require
each mortgagee approved by the Secretary for participation in the FHA
mortgage insurance programs of the Secretary--
``(1) to use the business name of the mortgagee that is
registered with the Secretary in connection with such approval in
all advertisements and promotional materials, as such terms are
defined by the Secretary, relating to the business of such
mortgagee in such mortgage insurance programs; and
``(2) to maintain copies of all such advertisements and
promotional materials, in such form and for such period as the
Secretary requires.''.
(c) Payment for Loss Mitigation.--Section 204(a)(2) of the National
Housing Act (12 U.S.C. 1710(a)(2)) is amended--
(1) by inserting ``or faces imminent default, as defined by the
Secretary'' after ``default'';
(2) by inserting ``support for borrower housing counseling,
partial claims, borrower incentives, preforeclosure sale,'' after
``loan modification,''; and
(3) by striking ``204(a)(1)(A)'' and inserting ``subsection
(a)(1)(A) or section 230(c)''.
(d) Payment of FHA Mortgage Insurance Benefits.--
(1) Additional loss mitigation actions.--Section 230(a) of the
National Housing Act (12 U.S.C. 1715u(a)) is amended--
(A) by inserting ``or imminent default, as defined by the
Secretary'' after ``default'';
(B) by striking ``loss'' and inserting ``loan'';
(C) by inserting ``preforeclosure sale, support for
borrower housing counseling, subordinate lien resolution,
borrower incentives,'' after ``loan modification,'';
(D) by inserting ``as required,'' after ``deeds in lieu of
foreclosure,''; and
(E) by inserting ``or section 230(c),'' before ``as
provided''.
(2) Amendment to partial claim authority.--Section 230(b) of
the National Housing Act (12 U.S.C. 1715u(b)) is amended to read as
follows:
``(b) Payment of Partial Claim.--
``(1) Establishment of program.--The Secretary may establish a
program for payment of a partial claim to a mortgagee that agrees
to apply the claim amount to payment of a mortgage on a 1- to 4-
family residence that is in default or faces imminent default, as
defined by the Secretary.
``(2) Payments and exceptions.--Any payment of a partial claim
under the program established in paragraph (1) to a mortgagee shall
be made in the sole discretion of the Secretary and on terms and
conditions acceptable to the Secretary, except that--
``(A) the amount of the payment shall be in an amount
determined by the Secretary, not to exceed an amount equivalent
to 30 percent of the unpaid principal balance of the mortgage
and any costs that are approved by the Secretary;
``(B) the amount of the partial claim payment shall first
be applied to any arrearage on the mortgage, and may also be
applied to achieve principal reduction;
``(C) the mortgagor shall agree to repay the amount of the
insurance claim to the Secretary upon terms and conditions
acceptable to the Secretary;
``(D) the Secretary may permit compensation to the
mortgagee for lost income on monthly payments, due to a
reduction in the interest rate charged on the mortgage;
``(E) expenses related to the partial claim or modification
may not be charged to the borrower;
``(F) loans may be modified to extend the term of the
mortgage to a maximum of 40 years from the date of the
modification; and
``(G) the Secretary may permit incentive payments to the
mortgagee, on the borrower's behalf, based on successful
performance of a modified mortgage, which shall be used to
reduce the amount of principal indebtedness.
``(3) Payments in connection with certain activities.--The
Secretary may pay the mortgagee, from the appropriate insurance
fund, in connection with any activities that the mortgagee is
required to undertake concerning repayment by the mortgagor of the
amount owed to the Secretary.''.
(3) Assignment.--Section 230(c) of the National Housing Act (12
U.S.C. 1715u(c)) is amended--
(A) by inserting ``(1)'' after ``(c)'';
(B) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(C) in paragraph (1)(B) (as so redesignated)--
(i) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(ii) in the matter preceding clause (i) (as so
redesignated), by striking ``under a program under this
subsection'' and inserting ``under this paragraph''; and
(iii) in clause (i) (as so redesignated), by inserting
``or facing imminent default, as defined by the Secretary''
after ``default'';
(D) in paragraph (1)(C) (as so redesignated), by striking
``under a program under this subsection'' and inserting ``under
this paragraph''; and
(E) by adding at the end the following:
``(2) Assignment and loan modification.--
``(A) Authority.--The Secretary may encourage loan
modifications for eligible delinquent mortgages or mortgages
facing imminent default, as defined by the Secretary, through
the payment of insurance benefits and assignment of the
mortgage to the Secretary and the subsequent modification of
the terms of the mortgage according to a loan modification
approved by the mortgagee.
``(B) Payment of benefits and assignment.--In carrying out
this paragraph, the Secretary may pay insurance benefits for a
mortgage, in the amount determined in accordance with section
204(a)(5), without reduction for any amounts modified, but only
upon the assignment, transfer, and delivery to the Secretary of
all rights, interest, claims, evidence, and records with
respect to the mortgage specified in clauses (i) through (iv)
of section 204(a)(1)(A).
``(C) Disposition.--After modification of a mortgage
pursuant to this paragraph, the Secretary may provide insurance
under this title for the mortgage. The Secretary may
subsequently--
``(i) re-assign the mortgage to the mortgagee under
terms and conditions as are agreed to by the mortgagee and
the Secretary;
``(ii) act as a Government National Mortgage
Association issuer, or contract with an entity for such
purpose, in order to pool the mortgage into a Government
National Mortgage Association security; or
``(iii) re-sell the mortgage in accordance with any
program that has been established for purchase by the
Federal Government of mortgages insured under this title,
and the Secretary may coordinate standards for interest
rate reductions available for loan modification with
interest rates established for such purchase.
``(D) Loan servicing.--In carrying out this paragraph, the
Secretary may require the existing servicer of a mortgage
assigned to the Secretary to continue servicing the mortgage as
an agent of the Secretary during the period that the Secretary
acquires and holds the mortgage for the purpose of modifying
the terms of the mortgage, provided that the Secretary
compensates the existing servicer appropriately, as such
compensation is determined by the Secretary consistent, to the
maximum extent possible, with section 203(b). If the mortgage
is resold pursuant to subparagraph (C)(iii), the Secretary may
provide for the existing servicer to continue to service the
mortgage or may engage another entity to service the
mortgage.''.
(4) Implementation.--The Secretary of Housing and Urban
Development may implement the amendments made by this subsection
through notice or mortgagee letter.
(e) Change of Status.--The National Housing Act is amended by
striking section 532 (12 U.S.C. 1735f-10) and inserting the following
new section:
``SEC. 532. CHANGE OF MORTGAGEE STATUS.
``(a) Notification.--Upon the occurrence of any action described in
subsection (b), an approved mortgagee shall immediately submit to the
Secretary, in writing, notification of such occurrence.
``(b) Actions.--The actions described in this subsection are as
follows:
``(1) The debarment, suspension or a Limited Denial of
Participation (LDP), or application of other sanctions, other
exclusions, fines, or penalties applied to the mortgagee or to any
officer, partner, director, principal, manager, supervisor, loan
processor, loan underwriter, or loan originator of the mortgagee
pursuant to applicable provisions of State or Federal law.
``(2) The revocation of a State-issued mortgage loan originator
license issued pursuant to the S.A.F.E. Mortgage Licensing Act of
2008 (12 U.S.C. 5101 et seq.) or any other similar declaration of
ineligibility pursuant to State law.''.
(f) Civil Money Penalties.--Section 536 of the National Housing Act
(12 U.S.C. 1735f-14) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by
inserting ``or any of its owners, officers, or directors''
after ``mortgagee or lender'';
(ii) in subparagraph (H), by striking ``title I'' and
all that follows through ``under this Act.'' and inserting
``title I or II of this Act, or any implementing
regulation, handbook, or mortgagee letter that is issued
under this Act.''; and
(iii) by inserting after subparagraph (J) the
following:
``(K) Violation of section 202(d) of this Act (12 U.S.C.
1708(d)).
``(L) Use of `Federal Housing Administration', `Department
of Housing and Urban Development', `Government National
Mortgage Association', `Ginnie Mae', the acronyms `HUD', `FHA',
or `GNMA', or any official seal or logo of the Department of
Housing and Urban Development, except as authorized by the
Secretary.'';
(B) in paragraph (2)--
(i) in subparagraph (B), by striking ``or'' at the end;
(ii) in subparagraph (C), by striking the period at the
end and inserting ``; or''; and
(iii) by adding at the end the following new
subparagraph:
``(D) causing or participating in any of the violations set
forth in paragraph (1) of this subsection.''; and
(C) by amending paragraph (3) to read as follows:
``(3) Prohibition against misleading use of federal entity
designation.--The Secretary may impose a civil money penalty, as
adjusted from time to time, under subsection (a) for any use of
`Federal Housing Administration', `Department of Housing and Urban
Development', `Government National Mortgage Association', `Ginnie
Mae', the acronyms `HUD', `FHA', or `GNMA', or any official seal or
logo of the Department of Housing and Urban Development, by any
person, party, company, firm, partnership, or business, including
sellers of real estate, closing agents, title companies, real
estate agents, mortgage brokers, appraisers, loan correspondents,
and dealers, except as authorized by the Secretary.''; and
(2) in subsection (g), by striking ``The term'' and all that
follows through the end of the sentence and inserting ``For
purposes of this section, a person acts knowingly when a person has
actual knowledge of acts or should have known of the acts.''.
(g) Expanded Review of FHA Mortgagee Applicants and Newly Approved
Mortgagees.--Not later than the expiration of the 3-month period
beginning upon the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall--
(1) expand the existing process for reviewing new applicants
for approval for participation in the mortgage insurance programs
of the Secretary for mortgages on 1- to 4-family residences for the
purpose of identifying applicants who represent a high risk to the
Mutual Mortgage Insurance Fund; and
(2) implement procedures that, for mortgagees approved during
the 12-month period ending upon such date of enactment--
(A) expand the number of mortgages originated by such
mortgagees that are reviewed for compliance with applicable
laws, regulations, and policies; and
(B) include a process for random reviews of such mortgagees
and a process for reviews that is based on volume of mortgages
originated by such mortgagees.
SEC. 204. ENHANCEMENT OF LIQUIDITY AND STABILITY OF INSURED
DEPOSITORY INSTITUTIONS TO ENSURE AVAILABILITY OF CREDIT AND
REDUCTION OF FORECLOSURES.
(a) Temporary Increase in Deposit Insurance Extended.--Section 136
of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5241) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``December 31, 2009'' and
inserting ``December 31, 2013'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and
(D) in paragraph (2), as so redesignated, by striking
``December 31, 2009'' and inserting ``December 31, 2013''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``December 31, 2009'' and
inserting ``December 31, 2013'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and
(D) in paragraph (2), as so redesignated, by striking
``December 31, 2009'' and inserting ``December 31, 2013''; and
(b) Extension of Restoration Plan Period.--Section 7(b)(3)(E)(ii)
of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(3)(E)(ii)) is
amended by striking ``5-year period'' and inserting ``8-year period''.
(c) FDIC and NCUA Borrowing Authority.--
(1) FDIC.--Section 14(a) of the Federal Deposit Insurance Act
(12 U.S.C. 1824(a)) is amended--
(A) by striking ``$30,000,000,000'' and inserting
``$100,000,000,000'';
(B) by striking ``The Corporation is authorized'' and
inserting the following:
``(1) In general.--The Corporation is authorized'';
(C) by striking ``There are hereby'' and inserting the
following:
``(2) Funding.--There are hereby''; and
(D) by adding at the end the following:
``(3) Temporary increases authorized.--
``(A) Recommendations for increase.--During the period
beginning on the date of enactment of this paragraph and ending
on December 31, 2010, if, upon the written recommendation of
the Board of Directors (upon a vote of not less than two-thirds
of the members of the Board of Directors) and the Board of
Governors of the Federal Reserve System (upon a vote of not
less than two-thirds of the members of such Board), the
Secretary of the Treasury (in consultation with the President)
determines that additional amounts above the $100,000,000,000
amount specified in paragraph (1) are necessary, such amount
shall be increased to the amount so determined to be necessary,
not to exceed $500,000,000,000.
``(B) Report required.--If the borrowing authority of the
Corporation is increased above $100,000,000,000 pursuant to
subparagraph (A), the Corporation shall promptly submit a
report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representatives describing the reasons and need for
the additional borrowing authority and its intended uses.
``(C) Restriction on usage.--The Corporation may not borrow
pursuant to subparagraph (A) to fund obligations of the
Corporation incurred as a part of a program established by the
Secretary of the Treasury pursuant to the Emergency Economic
Stabilization Act of 2008 to purchase or guarantee assets.''.
(2) NCUA.--Section 203(d)(1) of the Federal Credit Union Act
(12 U.S.C. 1783(d)(1)) is amended to read as follows:
``(1) If, in the judgment of the Board, a loan to the insurance
fund, or to the stabilization fund described in section 217 of this
title, is required at any time for purposes of this subchapter, the
Secretary of the Treasury shall make the loan, but loans under this
paragraph shall not exceed in the aggregate $6,000,000,000
outstanding at any one time. Except as otherwise provided in this
subsection, section 217, and in subsection (e) of this section,
each loan under this paragraph shall be made on such terms as may
be fixed by agreement between the Board and the Secretary of the
Treasury.''.
(3) Temporary increases of borrowing authority for ncua.--
Section 203(d) of the Federal Credit Union Act (12 U.S.C. 1783(d))
is amended by adding at the end the following:
``(4) Temporary increases authorized.--
``(A) Recommendations for increase.--During the period
beginning on the date of enactment of this paragraph and ending
on December 31, 2010, if, upon the written recommendation of
the Board (upon a vote of not less than two-thirds of the
members of the Board) and the Board of Governors of the Federal
Reserve System (upon a vote of not less than two-thirds of the
members of such Board), the Secretary of the Treasury (in
consultation with the President) determines that additional
amounts above the $6,000,000,000 amount specified in paragraph
(1) are necessary, such amount shall be increased to the amount
so determined to be necessary, not to exceed $30,000,000,000.
``(B) Report required.--If the borrowing authority of the
Board is increased above $6,000,000,000 pursuant to
subparagraph (A), the Board shall promptly submit a report to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives describing the reasons and need for the
additional borrowing authority and its intended uses.''.
(d) Expanding Systemic Risk Special Assessments.--Section
13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C.
1823(c)(4)(G)(ii)) is amended to read as follows:
``(ii) Repayment of loss.--
``(I) In general.--The Corporation shall recover
the loss to the Deposit Insurance Fund arising from any
action taken or assistance provided with respect to an
insured depository institution under clause (i) from 1
or more special assessments on insured depository
institutions, depository institution holding companies
(with the concurrence of the Secretary of the Treasury
with respect to holding companies), or both, as the
Corporation determines to be appropriate.
``(II) Treatment of depository institution holding
companies.--For purposes of this clause, sections
7(c)(2) and 18(h) shall apply to depository institution
holding companies as if they were insured depository
institutions.
``(III) Regulations.--The Corporation shall
prescribe such regulations as it deems necessary to
implement this clause. In prescribing such regulations,
defining terms, and setting the appropriate assessment
rate or rates, the Corporation shall establish rates
sufficient to cover the losses incurred as a result of
the actions of the Corporation under clause (i) and
shall consider: the types of entities that benefit from
any action taken or assistance provided under this
subparagraph; economic conditions, the effects on the
industry, and such other factors as the Corporation
deems appropriate and relevant to the action taken or
the assistance provided. Any funds so collected that
exceed actual losses shall be placed in the Deposit
Insurance Fund.''.
(e) Establishment of a National Credit Union Share Insurance Fund
Restoration Plan Period.--Section 202(c)(2) of the Federal Credit Union
Act (12 U.S.C. 1782(c)(2)) is amended by adding at the end the
following new subparagraph:
``(D) Fund restoration plans.--
``(i) In general.--Whenever--
``(I) the Board projects that the equity ratio of
the Fund will, within 6 months of such determination,
fall below the minimum amount specified in subparagraph
(C); or
``(II) the equity ratio of the Fund actually falls
below the minimum amount specified in subparagraph (C)
without any determination under sub-clause (I) having
been made,
the Board shall establish and implement a restoration plan
within 90 days that meets the requirements of clause (ii)
and such other conditions as the Board determines to be
appropriate.
``(ii) Requirements of restoration plan.--A restoration
plan meets the requirements of this clause if the plan
provides that the equity ratio of the Fund will meet or
exceed the minimum amount specified in subparagraph (C)
before the end of the 8-year period beginning upon the
implementation of the plan (or such longer period as the
Board may determine to be necessary due to extraordinary
circumstances).
``(iii) Transparency.--Not more than 30 days after the
Board establishes and implements a restoration plan under
clause (i), the Board shall publish in the Federal Register
a detailed analysis of the factors considered and the basis
for the actions taken with regard to the plan.''.
(f) Temporary Corporate Credit Union Stabilization Fund.--
(1) Establishment of stabilization fund.--Title II of the
Federal Credit Union Act (12 U.S.C. 1781 et seq.) is amended by
adding at the end the following new section:
``SEC. 217. TEMPORARY CORPORATE CREDIT UNION STABILIZATION FUND.
``(a) Establishment of Stabilization Fund.--There is hereby created
in the Treasury of the United States a fund to be known as the
`Temporary Corporate Credit Union Stabilization Fund.' The Board will
administer the Stabilization Fund as prescribed by section 209.
``(b) Expenditures From Stabilization Fund.--Money in the
Stabilization Fund shall be available upon requisition by the Board,
without fiscal year limitation, for making payments for the purposes
described in section 203(a), subject to the following additional
limitations:
``(1) All payments other than administrative payments shall be
connected to the conservatorship, liquidation, or threatened
conservatorship or liquidation, of a corporate credit union.
``(2) Prior to authorizing each payment the Board shall--
``(A) certify that, absent the existence of the
Stabilization Fund, the Board would have made the identical
payment out of the National Credit Union Share Insurance Fund
(Insurance Fund); and
``(B) report each such certification to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives.
``(c) Authority To Borrow.--
``(1) In general.--The Stabilization Fund is authorized to
borrow from the Secretary of the Treasury from time-to-time as
deemed necessary by the Board. The maximum outstanding amount of
all borrowings from the Treasury by the Stabilization Fund and the
National Credit Union Share Insurance Fund, combined, is limited to
the amount provided for in section 203(d)(1), including any
authorized increases in that amount.
``(2) Repayment of advances.--
``(A) In general.--The advances made under this section
shall be repaid by the Stabilization Fund, and interest on such
advance shall be paid, to the General fund of the Treasury.
``(B) Variable rate of interest.--The Secretary of the
Treasury shall make the first rate determination at the time of
the first advance under this section and shall reset the rate
again for all advances on each anniversary of the first
advance. The interest rate shall be equal to the average market
yield on outstanding marketable obligations of the United
States with remaining periods to maturity equal to 12 months.
``(3) Repayment schedule.--The Stabilization Fund shall repay
the advances on a first-in, first-out basis, with interest on the
amount repaid, at times and dates determined by the Board at its
discretion. All advances shall be repaid not later than the date of
the seventh anniversary of the first advance to the Stabilization
Fund, unless the Board extends this final repayment date. The Board
shall obtain the concurrence of the Secretary of the Treasury on
any proposed extension, including the terms and conditions of the
extended repayment.
``(d) Assessment To Repay Advances.--At least 90 days prior to each
repayment described in subsection (c)(3), the Board shall set the
amount of the upcoming repayment and determine if the Stabilization
Fund will have sufficient funds to make the repayment. If the
Stabilization Fund might not have sufficient funds to make the
repayment, the Board shall assess each federally insured credit union a
special premium due and payable within 60 days in an aggregate amount
calculated to ensure the Stabilization Fund is able to make the
repayment. The premium charge for each credit union shall be stated as
a percentage of its insured shares as represented on the credit union's
previous call report. The percentage shall be identical for each credit
union. Any credit union that fails to make timely payment of the
special premium is subject to the procedures and penalties described
under subsections (d), (e), and (f) of section 202.
``(e) Distributions From Insurance Fund.--At the end of any
calendar year in which the Stabilization Fund has an outstanding
advance from the Treasury, the Insurance Fund is prohibited from making
the distribution to insured credit unions described in section
202(c)(3). In lieu of the distribution described in that section, the
Insurance Fund shall make a distribution to the Stabilization Fund of
the maximum amount possible that does not reduce the Insurance Fund's
equity ratio below the normal operating level and does not reduce the
Insurance Fund's available assets ratio below 1.0 percent.
``(f) Investment of Stabilization Fund Assets.--The Board may
request the Secretary of the Treasury to invest such portion of the
Stabilization Fund as is not, in the Board's judgment, required to meet
the current needs of the Stabilization Fund. Such investments shall be
made by the Secretary of the Treasury in public debt securities, with
maturities suitable to the needs of the Stabilization Fund, as
determined by the Board, and bearing interest at a rate determined by
the Secretary of the Treasury, taking into consideration current market
yields on outstanding marketable obligations of the United States of
comparable maturity.
``(g) Reports.--The Board shall submit an annual report to Congress
on the financial condition and the results of the operation of the
Stabilization Fund. The report is due to Congress within 30 days after
each anniversary of the first advance made under subsection (c)(1).
Because the Fund will use advances from the Treasury to meet corporate
stabilization costs with full repayment of borrowings to Treasury at
the Board's discretion not due until 7 years from the initial advance,
to the extent operating expenses of the Fund exceed income, the
financial condition of the Fund may reflect a deficit. With planned and
required future repayments, the Board shall resolve all deficits prior
to termination of the Fund.
``(h) Closing of Stabilization Fund.--Within 90 days following the
seventh anniversary of the initial Stabilization Fund advance, or
earlier at the Board's discretion, the Board shall distribute any
funds, property, or other assets remaining in the Stabilization Fund to
the Insurance Fund and shall close the Stabilization Fund. If the Board
extends the final repayment date as permitted under subsection (c)(3),
the mandatory date for closing the Stabilization Fund shall be extended
by the same number of days.''.
(2) Conforming amendment.--Section 202(c)(3)(A) of the Federal
Credit Union Act (12 U.S.C. 1782(c)(3)(A)) is amended by inserting
``, subject to the requirements of section 217(e),'' after ``The
Board shall''.
SEC. 205. APPLICATION OF GSE CONFORMING LOAN LIMIT TO MORTGAGES
ASSISTED WITH TARP FUNDS.
In making any assistance available to prevent and mitigate
foreclosures on residential properties, including any assistance for
mortgage modifications, using any amounts made available to the
Secretary of the Treasury under title I of the Emergency Economic
Stabilization Act of 2008, the Secretary shall provide that the
limitation on the maximum original principal obligation of a mortgage
that may be modified, refinanced, made, guaranteed, insured, or
otherwise assisted, using such amounts shall not be less than the
dollar amount limitation on the maximum original principal obligation
of a mortgage that may be purchased by the Federal Home Loan Mortgage
Corporation that is in effect, at the time that the mortgage is
modified, refinanced, made, guaranteed, insured, or otherwise assisted
using such amounts, for the area in which the property involved in the
transaction is located.
SEC. 206. MORTGAGES ON CERTAIN HOMES ON LEASED LAND.
Section 255(b)(4) of the National Housing Act (12 U.S.C. 1715z-
20(b)(4)) is amended by striking subparagraph (B) and inserting:
``(B) under a lease that has a term that ends no earlier
than the minimum number of years, as specified by the
Secretary, beyond the actuarial life expectancy of the
mortgagor or comortgagor, whichever is the later date.''.
SEC. 207. SENSE OF CONGRESS REGARDING MORTGAGE REVENUE BOND
PURCHASES.
It is the sense of the Congress that the Secretary of the Treasury
should use amounts made available in this Act to purchase mortgage
revenue bonds for single-family housing issued through State housing
finance agencies and through units of local government and agencies
thereof.
TITLE III--MORTGAGE FRAUD TASK FORCE
SEC. 301. SENSE OF CONGRESS ON ESTABLISHMENT OF A NATIONWIDE
MORTGAGE FRAUD TASK FORCE.
(a) In General.--It is the sense of the Congress that the
Department of Justice establish a Nationwide Mortgage Fraud Task Force
(hereinafter referred to in this section as the ``Task Force'') to
address mortgage fraud in the United States.
(b) Support.--If the Department of Justice establishes the Task
Force referred to in subsection (a), it is the sense of the Congress
that the Attorney General should provide the Task Force with the
appropriate staff, administrative support, and other resources
necessary to carry out the duties of the Task Force.
(c) Mandatory Functions.--If the Department of Justice establishes
the Task Force referred to in subsection (a), it is the sense of the
Congress that the Attorney General should--
(1) establish coordinating entities, and solicit the voluntary
participation of Federal, State, and local law enforcement and
prosecutorial agencies in such entities, to organize initiatives to
address mortgage fraud, including initiatives to enforce State
mortgage fraud laws and other related Federal and State laws;
(2) provide training to Federal, State, and local law
enforcement and prosecutorial agencies with respect to mortgage
fraud, including related Federal and State laws;
(3) collect and disseminate data with respect to mortgage
fraud, including Federal, State, and local data relating to
mortgage fraud investigations and prosecutions; and
(4) perform other functions determined by the Attorney General
to enhance the detection of, prevention of, and response to
mortgage fraud in the United States.
(d) Optional Functions.--If the Department of Justice establishes
the Task Force referred to in subsection (a), it is the sense of the
Congress that the Task Force should--
(1) initiate and coordinate Federal mortgage fraud
investigations and, through the coordinating entities described
under subsection (c), State and local mortgage fraud
investigations;
(2) establish a toll-free hotline for--
(A) reporting mortgage fraud;
(B) providing the public with access to information and
resources with respect to mortgage fraud; and
(C) directing reports of mortgage fraud to the appropriate
Federal, State, and local law enforcement and prosecutorial
agency, including to the appropriate branch of the Task Force
established under subsection (d);
(3) create a database with respect to suspensions and
revocations of mortgage industry licenses and certifications to
facilitate the sharing of such information by States;
(4) make recommendations with respect to the need for and
resources available to provide the equipment and training necessary
for the Task Force to combat mortgage fraud; and
(5) propose legislation to Federal, State, and local
legislative bodies with respect to the elimination and prevention
of mortgage fraud, including measures to address mortgage loan
procedures and property appraiser practices that provide
opportunities for mortgage fraud.
TITLE IV--FORECLOSURE MORATORIUM PROVISIONS
SEC. 401. SENSE OF THE CONGRESS ON FORECLOSURES.
(a) In General.--It is the sense of the Congress that mortgage
holders, institutions, and mortgage servicers should not initiate a
foreclosure proceeding or a foreclosure sale on any homeowner until the
foreclosure mitigation provisions, like the Hope for Homeowners
program, as required under title II, and the President's ``Homeowner
Affordability and Stability Plan'' have been implemented and determined
to be operational by the Secretary of Housing and Urban Development and
the Secretary of the Treasury.
(b) Scope of Moratorium.--The foreclosure moratorium referred to in
subsection (a) should apply only for first mortgages secured by the
owner's principal dwelling.
(c) FHA-Regulated Loan Modification Agreements.--If a mortgage
holder, institution, or mortgage servicer to which subsection (a)
applies reaches a loan modification agreement with a homeowner under
the auspices of the Federal Housing Administration before any plan
referred to in such subsection takes effect, subsection (a) shall cease
to apply to such institution as of the effective date of the loan
modification agreement.
(d) Duty of Consumer To Maintain Property.--Any homeowner for whose
benefit any foreclosure proceeding or sale is barred under subsection
(a) from being instituted, continued, or consummated with respect to
any homeowner mortgage should not, with respect to any property
securing such mortgage, destroy, damage, or impair such property, allow
the property to deteriorate, or commit waste on the property.
(e) Duty of Consumer To Respond to Reasonable Inquiries.--Any
homeowner for whose benefit any foreclosure proceeding or sale is
barred under subsection (a) from being instituted, continued, or
consummated with respect to any homeowner mortgage should respond to
reasonable inquiries from a creditor or servicer during the period
during which such foreclosure proceeding or sale is barred.
SEC. 402. PUBLIC-PRIVATE INVESTMENT PROGRAM; ADDITIONAL
APPROPRIATIONS FOR THE SPECIAL INSPECTOR GENERAL FOR THE TROUBLED
ASSET RELIEF PROGRAM.
(a) Short Title.--This section may be cited as the ``Public-Private
Investment Program Improvement and Oversight Act of 2009''.
(b) Public-Private Investment Program.--
(1) In general.--Any program established by the Federal
Government to create a public-private investment fund shall--
(A) in consultation with the Special Inspector General of
the Trouble Asset Relief Program (in this section referred to
as the ``Special Inspector General''), impose strict conflict
of interest rules on managers of public-private investment
funds to ensure that securities bought by the funds are
purchased in arms-length transactions, that fiduciary duties to
public and private investors in the fund are not violated, and
that there is full disclosure of relevant facts and financial
interests (which conflict of interest rules shall be
implemented by the manager of a public-private investment fund
prior to such fund receiving Federal Government financing);
(B) require each public-private investment fund to make a
quarterly report to the Secretary of the Treasury (in this
section referred to as the ``Secretary'') that discloses the 10
largest positions of such fund (which reports shall be publicly
disclosed at such time as the Secretary of the Treasury
determines that such disclosure will not harm the ongoing
business operations of the fund);
(C) allow the Special Inspector General access to all books
and records of a public-private investment fund, including all
records of financial transactions in machine readable form, and
the confidentiality of all such information shall be maintained
by the Special Inspector General;
(D) require each manager of a public-private investment
fund to retain all books, documents, and records relating to
such public-private investment fund, including electronic
messages;
(E) require each manager of a public-private investment
fund to acknowledge, in writing, a fiduciary duty to both the
public and private investors in such fund;
(F) require each manager of a public-private investment
fund to develop a robust ethics policy that includes methods to
ensure compliance with such policy;
(G) require strict investor screening procedures for
public-private investment funds; and
(H) require each manager of a public-private fund to
identify for the Secretary, on a periodic basis, each investor
that, individually or together with affiliates, directly or
indirectly, holds equity interests equal to at least 10 percent
of the equity interest of the fund including if such interests
are held in a vehicle formed for the purpose of directly or
indirectly investing in the fund.
(2) Interaction between public-private investment funds and the
term-asset backed securities loan facility.--The Secretary shall
consult with the Special Inspector General and shall issue
regulations governing the interaction of the Public-Private
Investment Program, the Term-Asset Backed Securities Loan Facility,
and other similar public-private investment programs. Such
regulations shall address concerns regarding the potential for
excessive leverage that could result from interactions between such
programs.
(3) Report.--Not later than 60 days after the date of the
establishment of a program described in paragraph (1), the Special
Inspector General shall submit a report to Congress on the
implementation of this section.
(c) Additional Appropriations for the Special Inspector General.--
(1) In general.--Of amounts made available under section 115(a)
of the Emergency Economic Stabilization Act of 2008 (Public Law
110-343), $15,000,000 shall be made available to the Special
Inspector General, which shall be in addition to amounts otherwise
made available to the Special Inspector General.
(2) Priorities.--In utilizing funds made available under this
section, the Special Inspector General shall prioritize the
performance of audits or investigations of recipients of non-
recourse Federal loans made under any program that is funded in
whole or in part by funds appropriated under the Emergency Economic
Stabilization Act of 2008, to the extent that such priority is
consistent with other aspects of the mission of the Special
Inspector General. Such audits or investigations shall determine
the existence of any collusion between the loan recipient and the
seller or originator of the asset used as loan collateral, or any
other conflict of interest that may have led the loan recipient to
deliberately overstate the value of the asset used as loan
collateral.
(d) Rule of Construction.--Notwithstanding any other provision of
law, nothing in this section shall be construed to apply to any
activity of the Federal Deposit Insurance Corporation in connection
with insured depository institutions, as described in section
13(c)(2)(B) of the Federal Deposit Insurance Act.
(e) Definition.--In this section, the term ``public-private
investment fund'' means a financial vehicle that is--
(1) established by the Federal Government to purchase pools of
loans, securities, or assets from a financial institution described
in section 101(a)(1) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5211(a)(1)); and
(2) funded by a combination of cash or equity from private
investors and funds provided by the Secretary of the Treasury or
funds appropriated under the Emergency Economic Stabilization Act
of 2008.
(f) Offset of Costs of Program Changes.--Notwithstanding the
amendment made by section 202(b) of this Act, 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
$1,259,000,000,'' after ``$700,000,000,000''.
(g) Regulations.--The Secretary of the Treasury may prescribe such
regulations or other guidance as may be necessary or appropriate to
define terms or carry out the authorities or purposes of this section.
SEC. 403. REMOVAL OF REQUIREMENT TO LIQUIDATE WARRANTS UNDER THE
TARP.
Section 111(g) of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5221(g)) is amended by striking ``shall liquidate warrants
associated with such assistance at the current market price'' and
inserting ``, at the market price, may liquidate warrants associated
with such assistance''.
SEC. 404. NOTIFICATION OF SALE OR TRANSFER OF MORTGAGE LOANS.
(a) In General.--Section 131 of the Truth in Lending Act (15 U.S.C.
1641) is amended by adding at the end the following:
``(g) Notice of New Creditor.--
``(1) In general.--In addition to other disclosures required by
this title, not later than 30 days after the date on which a
mortgage loan is sold or otherwise transferred or assigned to a
third party, the creditor that is the new owner or assignee of the
debt shall notify the borrower in writing of such transfer,
including--
``(A) the identity, address, telephone number of the new
creditor;
``(B) the date of transfer;
``(C) how to reach an agent or party having authority to
act on behalf of the new creditor;
``(D) the location of the place where transfer of ownership
of the debt is recorded; and
``(E) any other relevant information regarding the new
creditor.
``(2) Definition.--As used in this subsection, the term
`mortgage loan' means any consumer credit transaction that is
secured by the principal dwelling of a consumer.''.
(b) Private Right of Action.--Section 130(a) of the Truth in
Lending Act (15 U.S.C. 1640(a)) is amended by inserting ``subsection
(f) or (g) of section 131,'' after ``section 125,''.
TITLE V--FARM LOAN RESTRUCTURING
SEC. 501. CONGRESSIONAL OVERSIGHT PANEL SPECIAL REPORT.
Section 125(b) of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5233(b)) is amended by adding at the end the following:
``(3) Special report on farm loan restructuring.--Not later
than 60 days after the date of enactment of this paragraph, the
Oversight Panel shall submit a special report on farm loan
restructuring that--
``(A) analyzes the state of the commercial farm credit
markets and the use of loan restructuring as an alternative to
foreclosure by recipients of financial assistance under the
Troubled Asset Relief Program; and
``(B) includes an examination of and recommendation on the
different methods for farm loan restructuring that could be
used as part of a foreclosure mitigation program for farm loans
made by recipients of financial assistance under the Troubled
Asset Relief Program, including any programs for direct loan
restructuring or modification carried out by the Farm Service
Agency of the Department of Agriculture, the farm credit
system, and the Making Home Affordable Program of the
Department of the Treasury.''.
TITLE VI--ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF PROGRAM
SEC. 601. ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF PROGRAM.
Section 116 of the Emergency Economic Stabilization Act of 2008 (12
U.S.C. 5226) is amended--
(1) in subsection (a)(1)(A)--
(A) in clause (iii), by striking ``and'' at the end;
(B) in clause (iv), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(v) public accountability for the exercise of such
authority, including with respect to actions taken by those
entities participating in programs established under this
Act.''; and
(2) in subsection (a)(2)--
(A) by redesignating subparagraph (C) as subparagraph (F);
and
(B) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Definition.--In this paragraph, the term
`governmental unit' has the meaning given under section 101(27)
of title 11, United States Code, and does not include any
insured depository institution as defined under section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 8113).
``(B) GAO presence.--The Secretary shall provide the
Comptroller General with appropriate space and facilities in
the Department of the Treasury as necessary to facilitate
oversight of the TARP until the termination date established in
section 5230 of this title.
``(C) Access to records.--
``(i) In general.--Notwithstanding any other provision
of law, and for purposes of reviewing the performance of
the TARP, the Comptroller General shall have access, upon
request, to any information, data, schedules, books,
accounts, financial records, reports, files, electronic
communications, or other papers, things, or property
belonging to or in use by the TARP, any entity established
by the Secretary under this Act, any entity that is
established by a Federal reserve bank and receives funding
from the TARP, or any entity (other than a governmental
unit) participating in a program established under the
authority of this Act, and to the officers, employees,
directors, independent public accountants, financial
advisors and any and all other agents and representatives
thereof, at such time as the Comptroller General may
request.
``(ii) Verification.--The Comptroller General shall be
afforded full facilities for verifying transactions with
the balances or securities held by, among others,
depositories, fiscal agents, and custodians.
``(iii) Copies.--The Comptroller General may make and
retain copies of such books, accounts, and other records as
the Comptroller General determines appropriate.
``(D) Agreement by entities.--Each contract, term sheet, or
other agreement between the Secretary or the TARP (or any TARP
vehicle, officer, director, employee, independent public
accountant, financial advisor, or other TARP agent or
representative) and an entity (other than a governmental unit)
participating in a program established under this Act shall
provide for access by the Comptroller General in accordance
with this section.
``(E) Restriction on public disclosure.--
``(i) In general.--The Comptroller General may not
publicly disclose proprietary or trade secret information
obtained under this section.
``(ii) Exception for congressional committees.--This
subparagraph does not limit disclosures to congressional
committees or members thereof having jurisdiction over a
private or public entity referred to under subparagraph
(C).
``(iii) Rule of construction.--Nothing in this section
shall be construed to alter or amend the prohibitions
against the disclosure of trade secrets or other
information prohibited by section 1905 of title 18, United
States Code, section 714(c) of title 31, United States
Code, or other applicable provisions of law.''.
TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT
SEC. 701. SHORT TITLE.
This title may be cited as the ``Protecting Tenants at Foreclosure
Act of 2009''.
SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.
(a) In General.--In the case of any foreclosure on a federally-
related mortgage loan or on any dwelling or residential real property
after the date of enactment of this title, any immediate successor in
interest in such property pursuant to the foreclosure shall assume such
interest subject to--
(1) the provision, by such successor in interest of a notice to
vacate to any bona fide tenant at least 90 days before the
effective date of such notice; and
(2) the rights of any bona fide tenant, as of the date of such
notice of foreclosure--
(A) under any bona fide lease entered into before the
notice of foreclosure to occupy the premises until the end of
the remaining term of the lease, except that a successor in
interest may terminate a lease effective on the date of sale of
the unit to a purchaser who will occupy the unit as a primary
residence, subject to the receipt by the tenant of the 90 day
notice under paragraph (1); or
(B) without a lease or with a lease terminable at will
under State law, subject to the receipt by the tenant of the 90
day notice under subsection (1),
except that nothing under this section shall affect the
requirements for termination of any Federal- or State-subsidized
tenancy or of any State or local law that provides longer time
periods or other additional protections for tenants.
(b) Bona Fide Lease or Tenancy.--For purposes of this section, a
lease or tenancy shall be considered bona fide only if--
(1) the mortgagor or the child, spouse, or parent of the
mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length
transaction; and
(3) the lease or tenancy requires the receipt of rent that is
not substantially less than fair market rent for the property or
the unit's rent is reduced or subsidized due to a Federal, State,
or local subsidy.
(c) Definition.--For purposes of this section, the term
``federally-related mortgage loan'' has the same meaning as in section
3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
2602).
SEC. 703. EFFECT OF FORECLOSURE ON SECTION 8 TENANCIES.
Section 8(o)(7) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(7)) is amended--
(1) by inserting before the semicolon in subparagraph (C) the
following: ``and in the case of an owner who is an immediate
successor in interest pursuant to foreclosure during the term of
the lease vacating the property prior to sale shall not constitute
other good cause, except that the owner may terminate the tenancy
effective on the date of transfer of the unit to the owner if the
owner--
``(i) will occupy the unit as a primary residence; and
``(ii) has provided the tenant a notice to vacate at
least 90 days before the effective date of such notice.'';
and
(2) by inserting at the end of subparagraph (F) the following:
``In the case of any foreclosure on any federally-related mortgage
loan (as that term is defined in section 3 of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2602)) or on any
residential real property in which a recipient of assistance under
this subsection resides, the immediate successor in interest in
such property pursuant to the foreclosure shall assume such
interest subject to the lease between the prior owner and the
tenant and to the housing assistance payments contract between the
prior owner and the public housing agency for the occupied unit,
except that this provision and the provisions related to
foreclosure in subparagraph (C) shall not shall not affect any
State or local law that provides longer time periods or other
additional protections for tenants.''.
SEC. 704. SUNSET.
This title, and any amendments made by this title are repealed, and
the requirements under this title shall terminate, on December 31,
2012.
TITLE VIII--COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES
SEC. 801. COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES.
(a) Board of Governors of the Federal Reserve System.--Section 714
of title 31, United States Code, is amended--
(1) in subsection (a), by striking ``Federal Reserve Board,''
and inserting ``Board of Governors of the Federal Reserve System
(in this section referred to as the `Board'),''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking
``Federal Reserve Board,'' and inserting ``Board''; and
(B) in paragraph (4), by striking ``of Governors''.
(b) Confidential Information.--Section 714(c) of title 31, United
States Code, is amended by striking paragraph (3) and inserting the
following:
``(3) Except as provided under paragraph (4), an officer or
employee of the Government Accountability Office may not disclose
to any person outside the Government Accountability Office
information obtained in audits or examinations conducted under
subsection (e) and maintained as confidential by the Board or the
Federal reserve banks.
``(4) This subsection shall not--
``(A) authorize an officer or employee of an agency to
withhold information from any committee or subcommittee of
jurisdiction of Congress, or any member of such committee or
subcommittee; or
``(B) limit any disclosure by the Government Accountability
Office to any committee or subcommittee of jurisdiction of
Congress, or any member of such committee or subcommittee.''.
(c) Access to Records.--Section 714(d) of title 31, United States
Code, is amended--
(1) in paragraph (1), by inserting ``The Comptroller General
shall have access to the officers, employees, contractors, and
other agents and representatives of an agency and any entity
established by an agency at any reasonable time as the Comptroller
General may request. The Comptroller General may make and retain
copies of such books, accounts, and other records as the
Comptroller General determines appropriate.'' after the first
sentence;
(2) in paragraph (2), by inserting ``, copies of any record,''
after ``records''; and
(3) by adding at the end the following:
``(3)(A) For purposes of conducting audits and examinations
under subsection (e), the Comptroller General shall have access,
upon request, to any information, data, schedules, books, accounts,
financial records, reports, files, electronic communications, or
other papers, things or property belonging to or in use by--
``(i) any entity established by any action taken by the
Board described under subsection (e);
``(ii) any entity receiving assistance from any action
taken by the Board described under subsection (e), to the
extent that the access and request relates to that assistance;
and
``(iii) the officers, directors, employees, independent
public accountants, financial advisors and any and all
representatives of any entity described under clause (i) or
(ii); to the extent that the access and request relates to that
assistance;
``(B) The Comptroller General shall have access as provided
under subparagraph (A) at such time as the Comptroller General may
request.
``(C) Each contract, term sheet, or other agreement between the
Board or any Federal reserve bank (or any entity established by the
Board or any Federal reserve bank) and an entity receiving
assistance from any action taken by the Board described under
subsection (e) shall provide for access by the Comptroller General
in accordance with this paragraph.''.
(d) Audits of Certain Actions of the Board of Governors of the
Federal Reserve System.--Section 714 of title 31, United States Code,
is amended by adding at the end the following:
``(e) Notwithstanding subsection (b), the Comptroller General may
conduct audits, including onsite examinations when the Comptroller
General determines such audits and examinations are appropriate, of any
action taken by the Board under the third undesignated paragraph of
section 13 of the Federal Reserve Act (12 U.S.C. 343); with respect to
a single and specific partnership or corporation.''.
DIVISION B--HOMELESSNESS REFORM
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the ``Homeless
Emergency Assistance and Rapid Transition to Housing Act of 2009''.
(b) Table of Contents.--The table of contents for this division is
as follows:
DIVISION B--HOMELESSNESS REFORM
Sec. 1001. Short title; table of contents.
Sec. 1002. Findings and purposes.
Sec. 1003. Definition of homelessness.
Sec. 1004. United States Interagency Council on Homelessness.
TITLE I--HOUSING ASSISTANCE GENERAL PROVISIONS
Sec. 1101. Definitions.
Sec. 1102. Community homeless assistance planning boards.
Sec. 1103. General provisions.
Sec. 1104. Protection of personally identifying information by victim
service providers.
Sec. 1105. Authorization of appropriations.
TITLE II--EMERGENCY SOLUTIONS GRANTS PROGRAM
Sec. 1201. Grant assistance.
Sec. 1202. Eligible activities.
Sec. 1203. Participation in Homeless Management Information System.
Sec. 1204. Administrative provision.
Sec. 1205. GAO study of administrative fees.
TITLE III--CONTINUUM OF CARE PROGRAM
Sec. 1301. Continuum of care.
Sec. 1302. Eligible activities.
Sec. 1303. High performing communities.
Sec. 1304. Program requirements.
Sec. 1305. Selection criteria, allocation amounts, and funding.
Sec. 1306. Research.
TITLE IV--RURAL HOUSING STABILITY ASSISTANCE PROGRAM
Sec. 1401. Rural housing stability assistance.
Sec. 1402. GAO study of homelessness and homeless assistance in rural
areas.
TITLE V--REPEALS AND CONFORMING AMENDMENTS
Sec. 1501. Repeals.
Sec. 1502. Conforming amendments.
Sec. 1503. Effective date.
Sec. 1504. Regulations.
Sec. 1505. Amendment to table of contents.
SEC. 1002. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) a lack of affordable housing and limited scale of housing
assistance programs are the primary causes of homelessness; and
(2) homelessness affects all types of communities in the United
States, including rural, urban, and suburban areas.
(b) Purposes.--The purposes of this division are--
(1) to consolidate the separate homeless assistance programs
carried out under title IV of the McKinney-Vento Homeless
Assistance Act (consisting of the supportive housing program and
related innovative programs, the safe havens program, the section 8
assistance program for single-room occupancy dwellings, and the
shelter plus care program) into a single program with specific
eligible activities;
(2) to codify in Federal law the continuum of care planning
process as a required and integral local function necessary to
generate the local strategies for ending homelessness; and
(3) to establish a Federal goal of ensuring that individuals
and families who become homeless return to permanent housing within
30 days.
SEC. 1003. DEFINITION OF HOMELESSNESS.
(a) In General.--Section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302) is amended--
(1) by redesignating subsections (b) and (c) as subsections (c)
and (d); and
(2) by striking subsection (a) and inserting the following:
``(a) In General.--For purposes of this Act, the terms `homeless',
`homeless individual', and `homeless person' means--
``(1) an individual or family who lacks a fixed, regular, and
adequate nighttime residence;
``(2) an individual or family with a primary nighttime
residence that is a public or private place not designed for or
ordinarily used as a regular sleeping accommodation for human
beings, including a car, park, abandoned building, bus or train
station, airport, or camping ground;
``(3) an individual or family living in a supervised publicly
or privately operated shelter designated to provide temporary
living arrangements (including hotels and motels paid for by
Federal, State, or local government programs for low-income
individuals or by charitable organizations, congregate shelters,
and transitional housing);
``(4) an individual who resided in a shelter or place not meant
for human habitation and who is exiting an institution where he or
she temporarily resided;
``(5) an individual or family who--
``(A) will imminently lose their housing, including housing
they own, rent, or live in without paying rent, are sharing
with others, and rooms in hotels or motels not paid for by
Federal, State, or local government programs for low-income
individuals or by charitable organizations, as evidenced by--
``(i) a court order resulting from an eviction action
that notifies the individual or family that they must leave
within 14 days;
``(ii) the individual or family having a primary
nighttime residence that is a room in a hotel or motel and
where they lack the resources necessary to reside there for
more than 14 days; or
``(iii) credible evidence indicating that the owner or
renter of the housing will not allow the individual or
family to stay for more than 14 days, and any oral
statement from an individual or family seeking homeless
assistance that is found to be credible shall be considered
credible evidence for purposes of this clause;
``(B) has no subsequent residence identified; and
``(C) lacks the resources or support networks needed to
obtain other permanent housing; and
``(6) unaccompanied youth and homeless families with children
and youth defined as homeless under other Federal statutes who--
``(A) have experienced a long term period without living
independently in permanent housing,
``(B) have experienced persistent instability as measured
by frequent moves over such period, and
``(C) can be expected to continue in such status for an
extended period of time because of chronic disabilities,
chronic physical health or mental health conditions, substance
addiction, histories of domestic violence or childhood abuse,
the presence of a child or youth with a disability, or multiple
barriers to employment.
``(b) Domestic Violence and Other Dangerous or Life-Threatening
Conditions.--Notwithstanding any other provision of this section, the
Secretary shall consider to be homeless any individual or family who is
fleeing, or is attempting to flee, domestic violence, dating violence,
sexual assault, stalking, or other dangerous or life-threatening
conditions in the individual's or family's current housing situation,
including where the health and safety of children are jeopardized, and
who have no other residence and lack the resources or support networks
to obtain other permanent housing.''.
(b) Regulations.--Not later than the expiration of the 6-month
period beginning upon the date of the enactment of this division, the
Secretary of Housing and Urban Development shall issue regulations that
provide sufficient guidance to recipients of funds under title IV of
the McKinney-Vento Homeless Assistance Act to allow uniform and
consistent implementation of the requirements of section 103 of such
Act, as amended by subsection (a) of this section. This subsection
shall take effect on the date of the enactment of this division.
(c) Clarification of Effect on Other Laws.--This section and the
amendments made by this section to section 103 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11302) may not be construed to
affect, alter, limit, annul, or supersede any other provision of
Federal law providing a definition of ``homeless'', ``homeless
individual'', or ``homeless person'' for purposes other than such Act,
except to the extent that such provision refers to such section 103 or
the definition provided in such section 103.
SEC. 1004. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.
(a) In General.--Title II of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11311 et seq.) is amended--
(1) in section 201 (42 U.S.C. 11311), by inserting before the
period at the end the following ``whose mission shall be to
coordinate the Federal response to homelessness and to create a
national partnership at every level of government and with the
private sector to reduce and end homelessness in the nation while
maximizing the effectiveness of the Federal Government in
contributing to the end of homelessness'';
(2) in section 202 (42 U.S.C. 11312)--
(A) in subsection (a)--
(i) by redesignating paragraph (16) as paragraph (22);
and
(ii) by inserting after paragraph (15) the following:
``(16) The Commissioner of Social Security, or the designee of
the Commissioner.
``(17) The Attorney General of the United States, or the
designee of the Attorney General.
``(18) The Director of the Office of Management and Budget, or
the designee of the Director.
``(19) The Director of the Office of Faith-Based and Community
Initiatives, or the designee of the Director.
``(20) The Director of USA FreedomCorps, or the designee of the
Director.'';
(B) in subsection (c), by striking ``annually'' and
inserting ``four times each year, and the rotation of the
positions of Chairperson and Vice Chairperson required under
subsection (b) shall occur at the first meeting of each year'';
and
(C) by adding at the end the following:
``(e) Administration.--The Executive Director of the Council shall
report to the Chairman of the Council.'';
(3) in section 203(a) (42 U.S.C. 11313(a))--
(A) by redesignating paragraphs (1), (2), (3), (4), (5),
(6), and (7) as paragraphs (2), (3), (4), (5), (9), (10), and
(11), respectively;
(B) by inserting before paragraph (2), as so redesignated
by subparagraph (A), the following:
``(1) not later than 12 months after the date of the enactment
of the Homeless Emergency Assistance and Rapid Transition to
Housing Act of 2009, develop, make available for public comment,
and submit to the President and to Congress a National Strategic
Plan to End Homelessness, and shall update such plan annually;'';
(C) in paragraph (5), as redesignated by subparagraph (A),
by striking ``at least 2, but in no case more than 5'' and
inserting ``not less than 5, but in no case more than 10'';
(D) by inserting after paragraph (5), as so redesignated by
subparagraph (A), the following:
``(6) encourage the creation of State Interagency Councils on
Homelessness and the formulation of jurisdictional 10-year plans to
end homelessness at State, city, and county levels;
``(7) annually obtain from Federal agencies their
identification of consumer-oriented entitlement and other resources
for which persons experiencing homelessness may be eligible and the
agencies' identification of improvements to ensure access; develop
mechanisms to ensure access by persons experiencing homelessness to
all Federal, State, and local programs for which the persons are
eligible, and to verify collaboration among entities within a
community that receive Federal funding under programs targeted for
persons experiencing homelessness, and other programs for which
persons experiencing homelessness are eligible, including
mainstream programs identified by the Government Accountability
Office in the reports entitled `Homelessness: Coordination and
Evaluation of Programs Are Essential', issued February 26, 1999,
and `Homelessness: Barriers to Using Mainstream Programs', issued
July 6, 2000;
``(8) conduct research and evaluation related to its functions
as defined in this section;
``(9) develop joint Federal agency and other initiatives to
fulfill the goals of the agency;'';
(E) in paragraph (10), as so redesignated by subparagraph
(A), by striking ``and'' at the end;
(F) in paragraph (11), as so redesignated by subparagraph
(A), by striking the period at the end and inserting a
semicolon;
(G) by adding at the end the following new paragraphs:
``(12) develop constructive alternatives to criminalizing
homelessness and laws and policies that prohibit sleeping, feeding,
sitting, resting, or lying in public spaces when there are no
suitable alternatives, result in the destruction of a homeless
person's property without due process, or are selectively enforced
against homeless persons; and
``(13) not later than the expiration of the 6-month period
beginning upon completion of the study requested in a letter to the
Acting Comptroller General from the Chair and Ranking Member of the
House Financial Services Committee and several other members
regarding various definitions of homelessness in Federal statutes,
convene a meeting of representatives of all Federal agencies and
committees of the House of Representatives and the Senate having
jurisdiction over any Federal program to assist homeless
individuals or families, local and State governments, academic
researchers who specialize in homelessness, nonprofit housing and
service providers that receive funding under any Federal program to
assist homeless individuals or families, organizations advocating
on behalf of such nonprofit providers and homeless persons
receiving housing or services under any such Federal program, and
homeless persons receiving housing or services under any such
Federal program, at which meeting such representatives shall
discuss all issues relevant to whether the definitions of
`homeless' under paragraphs (1) through (4) of section 103(a) of
the McKinney-Vento Homeless Assistance Act, as amended by section
1003 of the Homeless Emergency Assistance and Rapid Transition to
Housing Act of 2009, should be modified by the Congress, including
whether there is a compelling need for a uniform definition of
homelessness under Federal law, the extent to which the differences
in such definitions create barriers for individuals to accessing
services and to collaboration between agencies, and the relative
availability, and barriers to access by persons defined as
homeless, of mainstream programs identified by the Government
Accountability Office in the two reports identified in paragraph
(7) of this subsection; and shall submit transcripts of such
meeting, and any majority and dissenting recommendations from such
meetings, to each committee of the House of Representatives and the
Senate having jurisdiction over any Federal program to assist
homeless individuals or families not later than the expiration of
the 60-day period beginning upon conclusion of such meeting.''.
(4) in section 203(b)(1) (42 U.S.C. 11313(b))--
(A) by striking ``Federal'' and inserting ``national'';
(B) by striking ``; and'' and inserting ``and pay for
expenses of attendance at meetings which are concerned with the
functions or activities for which the appropriation is made;'';
(5) in section 205(d) (42 U.S.C. 11315(d)), by striking
``property.'' and inserting ``property, both real and personal,
public and private, without fiscal year limitation, for the purpose
of aiding or facilitating the work of the Council.''; and
(6) by striking section 208 (42 U.S.C. 11318) and inserting the
following:
``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
$3,000,000 for fiscal year 2010 and such sums as may be necessary for
fiscal years 2011. Any amounts appropriated to carry out this title
shall remain available until expended.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on, and shall apply beginning on, the date of the enactment
of this division.
TITLE I--HOUSING ASSISTANCE GENERAL PROVISIONS
SEC. 1101. DEFINITIONS.
Subtitle A of title IV of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11361 et seq.) is amended--
(1) by striking the subtitle heading and inserting the
following:
``Subtitle A--General Provisions'';
(2) by redesignating sections 401 and 402 (42 U.S.C. 11361,
11362) as sections 403 and 406, respectively; and
(3) by inserting before section 403 (as so redesignated by
paragraph (2) of this section) the following new section:
``SEC. 401. DEFINITIONS.
``For purposes of this title:
``(1) At risk of homelessness.--The term `at risk of
homelessness' means, with respect to an individual or family, that
the individual or family--
``(A) has income below 30 percent of median income for the
geographic area;
``(B) has insufficient resources immediately available to
attain housing stability; and
``(C)(i) has moved frequently because of economic reasons;
``(ii) is living in the home of another because of economic
hardship;
``(iii) has been notified that their right to occupy their
current housing or living situation will be terminated;
``(iv) lives in a hotel or motel;
``(v) lives in severely overcrowded housing;
``(vi) is exiting an institution; or
``(vii) otherwise lives in housing that has characteristics
associated with instability and an increased risk of
homelessness.
Such term includes all families with children and youth defined
as homeless under other Federal statutes.
``(2) Chronically homeless.--
``(A) In general.--The term `chronically homeless' means,
with respect to an individual or family, that the individual or
family--
``(i) is homeless and lives or resides in a place not
meant for human habitation, a safe haven, or in an
emergency shelter;
``(ii) has been homeless and living or residing in a
place not meant for human habitation, a safe haven, or in
an emergency shelter continuously for at least 1 year or on
at least 4 separate occasions in the last 3 years; and
``(iii) has an adult head of household (or a minor head
of household if no adult is present in the household) with
a diagnosable substance use disorder, serious mental
illness, developmental disability (as defined in section
102 of the Developmental Disabilities Assistance and Bill
of Rights Act of 2000 (42 U.S.C. 15002)), post traumatic
stress disorder, cognitive impairments resulting from a
brain injury, or chronic physical illness or disability,
including the co-occurrence of 2 or more of those
conditions.
``(B) Rule of construction.--A person who currently lives
or resides in an institutional care facility, including a jail,
substance abuse or mental health treatment facility, hospital
or other similar facility, and has resided there for fewer than
90 days shall be considered chronically homeless if such person
met all of the requirements described in subparagraph (A) prior
to entering that facility.
``(3) Collaborative applicant.--The term `collaborative
applicant' means an entity that--
``(A) carries out the duties specified in section 402;
``(B) serves as the applicant for project sponsors who
jointly submit a single application for a grant under subtitle
C in accordance with a collaborative process; and
``(C) if the entity is a legal entity and is awarded such
grant, receives such grant directly from the Secretary.
``(4) Collaborative application.--The term `collaborative
application' means an application for a grant under subtitle C
that--
``(A) satisfies section 422; and
``(B) is submitted to the Secretary by a collaborative
applicant.
``(5) Consolidated plan.--The term `Consolidated Plan' means a
comprehensive housing affordability strategy and community
development plan required in part 91 of title 24, Code of Federal
Regulations.
``(6) Eligible entity.--The term `eligible entity' means, with
respect to a subtitle, a public entity, a private entity, or an
entity that is a combination of public and private entities, that
is eligible to directly receive grant amounts under such subtitle.
``(7) Families with children and youth defined as homeless
under other federal statutes.--The term `families with children and
youth defined as homeless under other Federal statutes' means any
children or youth that are defined as `homeless' under any Federal
statute other than this subtitle, but are not defined as homeless
under section 103, and shall also include the parent, parents, or
guardian of such children or youth under subtitle B of title VII
this Act (42 U.S.C. 11431 et seq.).
``(8) Geographic area.--The term `geographic area' means a
State, metropolitan city, urban county, town, village, or other
nonentitlement area, or a combination or consortia of such, in the
United States, as described in section 106 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5306).
``(9) Homeless individual with a disability.--
``(A) In general.--The term `homeless individual with a
disability' means an individual who is homeless, as defined in
section 103, and has a disability that--
``(i)(I) is expected to be long-continuing or of
indefinite duration;
``(II) substantially impedes the individual's ability
to live independently;
``(III) could be improved by the provision of more
suitable housing conditions; and
``(IV) is a physical, mental, or emotional impairment,
including an impairment caused by alcohol or drug abuse,
post traumatic stress disorder, or brain injury;
``(ii) is a developmental disability, as defined in
section 102 of the Developmental Disabilities Assistance
and Bill of Rights Act of 2000 (42 U.S.C. 15002); or
``(iii) is the disease of acquired immunodeficiency
syndrome or any condition arising from the etiologic agency
for acquired immunodeficiency syndrome.
``(B) Rule.--Nothing in clause (iii) of subparagraph (A)
shall be construed to limit eligibility under clause (i) or
(ii) of subparagraph (A).
``(10) Legal entity.--The term `legal entity' means--
``(A) an entity described in section 501(c)(3) of the
Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and exempt
from tax under section 501(a) of such Code;
``(B) an instrumentality of State or local government; or
``(C) a consortium of instrumentalities of State or local
governments that has constituted itself as an entity.
``(11) Metropolitan city; urban county; nonentitlement area.--
The terms `metropolitan city', `urban county', and `nonentitlement
area' have the meanings given such terms in section 102(a) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)).
``(12) New.--The term `new' means, with respect to housing,
that no assistance has been provided under this title for the
housing.
``(13) Operating costs.--The term `operating costs' means
expenses incurred by a project sponsor operating transitional
housing or permanent housing under this title with respect to--
``(A) the administration, maintenance, repair, and security
of such housing;
``(B) utilities, fuel, furnishings, and equipment for such
housing; or
``(C) coordination of services as needed to ensure long-
term housing stability.
``(14) Outpatient health services.--The term `outpatient health
services' means outpatient health care services, mental health
services, and outpatient substance abuse services.
``(15) Permanent housing.--The term `permanent housing' means
community-based housing without a designated length of stay, and
includes both permanent supportive housing and permanent housing
without supportive services.
``(16) Personally identifying information.--The term
`personally identifying information' means individually identifying
information for or about an individual, including information
likely to disclose the location of a victim of domestic violence,
dating violence, sexual assault, or stalking, including--
``(A) a first and last name;
``(B) a home or other physical address;
``(C) contact information (including a postal, e-mail or
Internet protocol address, or telephone or facsimile number);
``(D) a social security number; and
``(E) any other information, including date of birth,
racial or ethnic background, or religious affiliation, that, in
combination with any other non-personally identifying
information, would serve to identify any individual.
``(17) Private nonprofit organization.--The term `private
nonprofit organization' means an organization--
``(A) no part of the net earnings of which inures to the
benefit of any member, founder, contributor, or individual;
``(B) that has a voluntary board;
``(C) that has an accounting system, or has designated a
fiscal agent in accordance with requirements established by the
Secretary; and
``(D) that practices nondiscrimination in the provision of
assistance.
``(18) Project.--The term `project' means, with respect to
activities carried out under subtitle C, eligible activities
described in section 423(a), undertaken pursuant to a specific
endeavor, such as serving a particular population or providing a
particular resource.
``(19) Project-based.--The term `project-based' means, with
respect to rental assistance, that the assistance is provided
pursuant to a contract that--
``(A) is between--
``(i) the recipient or a project sponsor; and
``(ii) an owner of a structure that exists as of the
date the contract is entered into; and
``(B) provides that rental assistance payments shall be
made to the owner and that the units in the structure shall be
occupied by eligible persons for not less than the term of the
contract.
``(20) Project sponsor.--The term `project sponsor' means, with
respect to proposed eligible activities, the organization directly
responsible for carrying out the proposed eligible activities.
``(21) Recipient.--Except as used in subtitle B, the term
`recipient' means an eligible entity who--
``(A) submits an application for a grant under section 422
that is approved by the Secretary;
``(B) receives the grant directly from the Secretary to
support approved projects described in the application; and
``(C)(i) serves as a project sponsor for the projects; or
``(ii) awards the funds to project sponsors to carry out
the projects.
``(22) Secretary.--The term `Secretary' means the Secretary of
Housing and Urban Development.
``(23) Serious mental illness.--The term `serious mental
illness' means a severe and persistent mental illness or emotional
impairment that seriously limits a person's ability to live
independently.
``(24) Solo applicant.--The term `solo applicant' means an
entity that is an eligible entity, directly submits an application
for a grant under subtitle C to the Secretary, and, if awarded such
grant, receives such grant directly from the Secretary.
``(25) Sponsor-based.--The term `sponsor-based' means, with
respect to rental assistance, that the assistance is provided
pursuant to a contract that--
``(A) is between--
``(i) the recipient or a project sponsor; and
``(ii) an independent entity that--
``(I) is a private organization; and
``(II) owns or leases dwelling units; and
``(B) provides that rental assistance payments shall be
made to the independent entity and that eligible persons shall
occupy such assisted units.
``(26) State.--Except as used in subtitle B, the term `State'
means each of the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, the Trust Territory of the Pacific Islands, and any other
territory or possession of the United States.
``(27) Supportive services.--The term `supportive services'
means services that address the special needs of people served by a
project, including--
``(A) the establishment and operation of a child care
services program for families experiencing homelessness;
``(B) the establishment and operation of an employment
assistance program, including providing job training;
``(C) the provision of outpatient health services, food,
and case management;
``(D) the provision of assistance in obtaining permanent
housing, employment counseling, and nutritional counseling;
``(E) the provision of outreach services, advocacy, life
skills training, and housing search and counseling services;
``(F) the provision of mental health services, trauma
counseling, and victim services;
``(G) the provision of assistance in obtaining other
Federal, State, and local assistance available for residents of
supportive housing (including mental health benefits,
employment counseling, and medical assistance, but not
including major medical equipment);
``(H) the provision of legal services for purposes
including requesting reconsiderations and appeals of veterans
and public benefit claim denials and resolving outstanding
warrants that interfere with an individual's ability to obtain
and retain housing;
``(I) the provision of--
``(i) transportation services that facilitate an
individual's ability to obtain and maintain employment; and
``(ii) health care; and
``(J) other supportive services necessary to obtain and
maintain housing.
``(28) Tenant-based.--The term `tenant-based' means, with
respect to rental assistance, assistance that--
``(A) allows an eligible person to select a housing unit in
which such person will live using rental assistance provided
under subtitle C, except that if necessary to assure that the
provision of supportive services to a person participating in a
program is feasible, a recipient or project sponsor may require
that the person live--
``(i) in a particular structure or unit for not more
than the first year of the participation;
``(ii) within a particular geographic area for the full
period of the participation, or the period remaining after
the period referred to in subparagraph (A); and
``(B) provides that a person may receive such assistance
and move to another structure, unit, or geographic area if the
person has complied with all other obligations of the program
and has moved out of the assisted dwelling unit in order to
protect the health or safety of an individual who is or has
been the victim of domestic violence, dating violence, sexual
assault, or stalking, and who reasonably believed he or she was
imminently threatened by harm from further violence if he or
she remained in the assisted dwelling unit.
``(29) Transitional housing.--The term `transitional housing'
means housing the purpose of which is to facilitate the movement of
individuals and families experiencing homelessness to permanent
housing within 24 months or such longer period as the Secretary
determines necessary.
``(30) Unified funding agency.--The term `unified funding
agency' means a collaborative applicant that performs the duties
described in section 402(g).
``(31) Underserved populations.--The term `underserved
populations' includes populations underserved because of geographic
location, underserved racial and ethnic populations, populations
underserved because of special needs (such as language barriers,
disabilities, alienage status, or age), and any other population
determined to be underserved by the Secretary, as appropriate.
``(32) Victim service provider.--The term `victim service
provider' means a private nonprofit organization whose primary
mission is to provide services to victims of domestic violence,
dating violence, sexual assault, or stalking. Such term includes
rape crisis centers, battered women's shelters, domestic violence
transitional housing programs, and other programs.
``(33) Victim services.--The term `victim services' means
services that assist domestic violence, dating violence, sexual
assault, or stalking victims, including services offered by rape
crisis centers and domestic violence shelters, and other
organizations, with a documented history of effective work
concerning domestic violence, dating violence, sexual assault, or
stalking.''.
SEC. 1102. COMMUNITY HOMELESS ASSISTANCE PLANNING BOARDS.
Subtitle A of title IV of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11361 et seq.) is amended by inserting after section 401
(as added by section 1101(3) of this division) the following new
section:
``SEC. 402. COLLABORATIVE APPLICANTS.
``(a) Establishment and Designation.--A collaborative applicant
shall be established for a geographic area by the relevant parties in
that geographic area to--
``(1) submit an application for amounts under this subtitle;
and
``(2) perform the duties specified in subsection (f) and, if
applicable, subsection (g).
``(b) No Requirement To Be a Legal Entity.--An entity may be
established to serve as a collaborative applicant under this section
without being a legal entity.
``(c) Remedial Action.--If the Secretary finds that a collaborative
applicant for a geographic area does not meet the requirements of this
section, or if there is no collaborative applicant for a geographic
area, the Secretary may take remedial action to ensure fair
distribution of grant amounts under subtitle C to eligible entities
within that area. Such measures may include designating another body as
a collaborative applicant, or permitting other eligible entities to
apply directly for grants.
``(d) Construction.--Nothing in this section shall be construed to
displace conflict of interest or government fair practices laws, or
their equivalent, that govern applicants for grant amounts under
subtitles B and C.
``(e) Appointment of Agent.--
``(1) In general.--Subject to paragraph (2), a collaborative
applicant may designate an agent to--
``(A) apply for a grant under section 422(c);
``(B) receive and distribute grant funds awarded under
subtitle C; and
``(C) perform other administrative duties.
``(2) Retention of duties.--Any collaborative applicant that
designates an agent pursuant to paragraph (1) shall regardless of
such designation retain all of its duties and responsibilities
under this title.
``(f) Duties.--A collaborative applicant shall--
``(1) design a collaborative process for the development of an
application under subtitle C, and for evaluating the outcomes of
projects for which funds are awarded under subtitle B, in such a
manner as to provide information necessary for the Secretary--
``(A) to determine compliance with--
``(i) the program requirements under section 426; and
``(ii) the selection criteria described under section
427; and
``(B) to establish priorities for funding projects in the
geographic area involved;
``(2) participate in the Consolidated Plan for the geographic
area served by the collaborative applicant; and
``(3) ensure operation of, and consistent participation by,
project sponsors in a community-wide homeless management
information system (in this subsection referred to as `HMIS')
that--
``(A) collects unduplicated counts of individuals and
families experiencing homelessness;
``(B) analyzes patterns of use of assistance provided under
subtitles B and C for the geographic area involved;
``(C) provides information to project sponsors and
applicants for needs analyses and funding priorities; and
``(D) is developed in accordance with standards established
by the Secretary, including standards that provide for--
``(i) encryption of data collected for purposes of
HMIS;
``(ii) documentation, including keeping an accurate
accounting, proper usage, and disclosure, of HMIS data;
``(iii) access to HMIS data by staff, contractors, law
enforcement, and academic researchers;
``(iv) rights of persons receiving services under this
title;
``(v) criminal and civil penalties for unlawful
disclosure of data; and
``(vi) such other standards as may be determined
necessary by the Secretary.
``(g) Unified Funding.--
``(1) In general.--In addition to the duties described in
subsection (f), a collaborative applicant shall receive from the
Secretary and distribute to other project sponsors in the
applicable geographic area funds for projects to be carried out by
such other project sponsors, if--
``(A) the collaborative applicant--
``(i) applies to undertake such collection and
distribution responsibilities in an application submitted
under this subtitle; and
``(ii) is selected to perform such responsibilities by
the Secretary; or
``(B) the Secretary designates the collaborative applicant
as the unified funding agency in the geographic area, after--
``(i) a finding by the Secretary that the applicant--
``(I) has the capacity to perform such
responsibilities; and
``(II) would serve the purposes of this Act as they
apply to the geographic area; and
``(ii) the Secretary provides the collaborative
applicant with the technical assistance necessary to
perform such responsibilities as such assistance is agreed
to by the collaborative applicant.
``(2) Required actions by a unified funding agency.--A
collaborative applicant that is either selected or designated as a
unified funding agency for a geographic area under paragraph (1)
shall--
``(A) require each project sponsor who is funded by a grant
received under subtitle C to establish such fiscal control and
fund accounting procedures as may be necessary to assure the
proper disbursal of, and accounting for, Federal funds awarded
to the project sponsor under subtitle C in order to ensure that
all financial transactions carried out under subtitle C are
conducted, and records maintained, in accordance with generally
accepted accounting principles; and
``(B) arrange for an annual survey, audit, or evaluation of
the financial records of each project carried out by a project
sponsor funded by a grant received under subtitle C.
``(h) Conflict of Interest.--No board member of a collaborative
applicant may participate in decisions of the collaborative applicant
concerning the award of a grant, or provision of other financial
benefits, to such member or the organization that such member
represents.''.
SEC. 1103. GENERAL PROVISIONS.
Subtitle A of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11361 et seq.) is amended by inserting after section 403 (as so
redesignated by section 1101(2) of this division) the following new
sections:
``SEC. 404. PREVENTING INVOLUNTARY FAMILY SEPARATION.
``(a) In General.--After the expiration of the 2-year period that
begins upon the date of the enactment of the Homeless Emergency
Assistance and Rapid Transition to Housing Act of 2009, and except as
provided in subsection (b), any project sponsor receiving funds under
this title to provide emergency shelter, transitional housing, or
permanent housing to families with children under age 18 shall not deny
admission to any family based on the age of any child under age 18.
``(b) Exception.--Notwithstanding the requirement under subsection
(a), project sponsors of transitional housing receiving funds under
this title may target transitional housing resources to families with
children of a specific age only if the project sponsor--
``(1) operates a transitional housing program that has a
primary purpose of implementing an evidence-based practice that
requires that housing units be targeted to families with children
in a specific age group; and
``(2) provides such assurances, as the Secretary shall require,
that an equivalent appropriate alternative living arrangement for
the whole family or household unit has been secured.
``SEC. 405. TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall make available technical
assistance to private nonprofit organizations and other nongovernmental
entities, States, metropolitan cities, urban counties, and counties
that are not urban counties, to implement effective planning processes
for preventing and ending homelessness, to improve their capacity to
prepare collaborative applications, to prevent the separation of
families in emergency shelter or other housing programs, and to adopt
and provide best practices in housing and services for persons
experiencing homeless.
``(b) Reservation.--The Secretary shall reserve not more than 1
percent of the funds made available for any fiscal year for carrying
out subtitles B and C, to provide technical assistance under subsection
(a).''.
SEC. 1104. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION BY VICTIM
SERVICE PROVIDERS.
Subtitle A of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11361 et seq.), as amended by the preceding provisions of this title,
is further amended by adding at the end the following new section:
``SEC. 407. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION BY
VICTIM SERVICE PROVIDERS.
``In the course of awarding grants or implementing programs under
this title, the Secretary shall instruct any victim service provider
that is a recipient or subgrantee not to disclose for purposes of the
Homeless Management Information System any personally identifying
information about any client. The Secretary may, after public notice
and comment, require or ask such recipients and subgrantees to disclose
for purposes of the Homeless Management Information System non-
personally identifying information that has been de-identified,
encrypted, or otherwise encoded. Nothing in this section shall be
construed to supersede any provision of any Federal, State, or local
law that provides greater protection than this subsection for victims
of domestic violence, dating violence, sexual assault, or stalking.''.
SEC. 1105. AUTHORIZATION OF APPROPRIATIONS.
Subtitle A of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11361 et seq.), as amended by the preceding provisions of this title,
is further amended by adding at the end the following new section:
``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
$2,200,000,000 for fiscal year 2010 and such sums as may be necessary
for fiscal year 2011.''.
TITLE II--EMERGENCY SOLUTIONS GRANTS PROGRAM
SEC. 1201. GRANT ASSISTANCE.
Subtitle B of title IV of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11371 et seq.) is amended--
(1) by striking the subtitle heading and inserting the
following:
``Subtitle B--Emergency Solutions Grants Program'';
(2) by striking section 417 (42 U.S.C. 11377);
(3) by redesignating sections 413 through 416 (42 U.S.C. 11373-
6) as sections 414 through 417, respectively; and
(4) by striking section 412 (42 U.S.C. 11372) and inserting the
following:
``SEC. 412. GRANT ASSISTANCE.
``The Secretary shall make grants to States and local governments
(and to private nonprofit organizations providing assistance to persons
experiencing homelessness or at risk of homelessness, in the case of
grants made with reallocated amounts) for the purpose of carrying out
activities described in section 415.
``SEC. 413. AMOUNT AND ALLOCATION OF ASSISTANCE.
``(a) In General.--Of the amount made available to carry out this
subtitle and subtitle C for a fiscal year, the Secretary shall allocate
nationally 20 percent of such amount for activities described in
section 415. The Secretary shall be required to certify that such
allocation will not adversely affect the renewal of existing projects
under this subtitle and subtitle C for those individuals or families
who are homeless.
``(b) Allocation.--An entity that receives a grant under section
412, and serves an area that includes 1 or more geographic areas (or
portions of such areas) served by collaborative applicants that submit
applications under subtitle C, shall allocate the funds made available
through the grant to carry out activities described in section 415, in
consultation with the collaborative applicants.''; and
(5) in section 414(b) (42 U.S.C. 11373(b)), as so redesignated
by paragraph (3) of this section, by striking ``amounts
appropriated'' and all that follows through ``for any'' and
inserting ``amounts appropriated under section 408 and made
available to carry out this subtitle for any''.
SEC. 1202. ELIGIBLE ACTIVITIES.
The McKinney-Vento Homeless Assistance Act is amended by striking
section 415 (42 U.S.C. 11374), as so redesignated by section 1201(3) of
this division, and inserting the following new section:
``SEC. 415. ELIGIBLE ACTIVITIES.
``(a) In General.--Assistance provided under section 412 may be
used for the following activities:
``(1) The renovation, major rehabilitation, or conversion of
buildings to be used as emergency shelters.
``(2) The provision of essential services related to emergency
shelter or street outreach, including services concerned with
employment, health, education, family support services for homeless
youth, substance abuse services, victim services, or mental health
services, if--
``(A) such essential services have not been provided by the
local government during any part of the immediately preceding
12-month period or the Secretary determines that the local
government is in a severe financial deficit; or
``(B) the use of assistance under this subtitle would
complement the provision of those essential services.
``(3) Maintenance, operation, insurance, provision of
utilities, and provision of furnishings related to emergency
shelter.
``(4) Provision of rental assistance to provide short-term or
medium-term housing to homeless individuals or families or
individuals or families at risk of homelessness. Such rental
assistance may include tenant-based or project-based rental
assistance.
``(5) Housing relocation or stabilization services for homeless
individuals or families or individuals or families at risk of
homelessness, including housing search, mediation or outreach to
property owners, legal services, credit repair, providing security
or utility deposits, utility payments, rental assistance for a
final month at a location, assistance with moving costs, or other
activities that are effective at--
``(A) stabilizing individuals and families in their current
housing; or
``(B) quickly moving such individuals and families to other
permanent housing.
``(b) Maximum Allocation for Emergency Shelter Activities.--A
grantee of assistance provided under section 412 for any fiscal year
may not use an amount of such assistance for activities described in
paragraphs (1) through (3) of subsection (a) that exceeds the greater
of--
``(1) 60 percent of the aggregate amount of such assistance
provided for the grantee for such fiscal year; or
``(2) the amount expended by such grantee for such activities
during fiscal year most recently completed before the effective
date under section 1503 of the Homeless Emergency Assistance and
Rapid Transition to Housing Act of 2009.''.
SEC. 1203. PARTICIPATION IN HOMELESS MANAGEMENT INFORMATION SYSTEM.
Section 416 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11375), as so redesignated by section 1201(3) of this division,
is amended by adding at the end the following new subsection:
``(f) Participation in HMIS.--The Secretary shall ensure that
recipients of funds under this subtitle ensure the consistent
participation by emergency shelters and homelessness prevention and
rehousing programs in any applicable community-wide homeless management
information system.''.
SEC. 1204. ADMINISTRATIVE PROVISION.
Section 418 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11378) is amended by striking ``5 percent'' and inserting ``7.5
percent''.
SEC. 1205. GAO STUDY OF ADMINISTRATIVE FEES.
Not later than the expiration of the 12-month period beginning on
the date of the enactment of this division, the Comptroller General of
the United States shall--
(1) conduct a study to examine the appropriate administrative
costs for administering the program authorized under subtitle B of
title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11371 et seq.); and
(2) submit to Congress a report on the findings of the study
required under paragraph (1).
TITLE III--CONTINUUM OF CARE PROGRAM
SEC. 1301. CONTINUUM OF CARE.
The McKinney-Vento Homeless Assistance Act is amended--
(1) by striking the subtitle heading for subtitle C of title IV
(42 U.S.C. 11381 et seq.) and inserting the following:
``Subtitle C--Continuum of Care Program''; and
(2) by striking sections 421 and 422 (42 U.S.C. 11381 and
11382) and inserting the following new sections:
``SEC. 421. PURPOSES.
``The purposes of this subtitle are--
``(1) to promote community-wide commitment to the goal of
ending homelessness;
``(2) to provide funding for efforts by nonprofit providers and
State and local governments to quickly rehouse homeless individuals
and families while minimizing the trauma and dislocation caused to
individuals, families, and communities by homelessness;
``(3) to promote access to, and effective utilization of,
mainstream programs described in section 203(a)(7) and programs
funded with State or local resources; and
``(4) to optimize self-sufficiency among individuals and
families experiencing homelessness.
``SEC. 422. CONTINUUM OF CARE APPLICATIONS AND GRANTS.
``(a) Projects.--The Secretary shall award grants, on a competitive
basis, and using the selection criteria described in section 427, to
carry out eligible activities under this subtitle for projects that
meet the program requirements under section 426, either by directly
awarding funds to project sponsors or by awarding funds to unified
funding agencies.
``(b) Notification of Funding Availability.--The Secretary shall
release a notification of funding availability for grants awarded under
this subtitle for a fiscal year not later than 3 months after the date
of the enactment of the appropriate Act making appropriations for the
Department of Housing and Urban Development for such fiscal year.
``(c) Applications.--
``(1) Submission to the secretary.--To be eligible to receive a
grant under subsection (a), a project sponsor or unified funding
agency in a geographic area shall submit an application to the
Secretary at such time and in such manner as the Secretary may
require, and containing such information as the Secretary
determines necessary--
``(A) to determine compliance with the program requirements
and selection criteria under this subtitle; and
``(B) to establish priorities for funding projects in the
geographic area.
``(2) Announcement of awards.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall announce, within 5 months after the last
date for the submission of applications described in this
subsection for a fiscal year, the grants conditionally awarded
under subsection (a) for that fiscal year.
``(B) Transition.--For a period of up to 2 years beginning
after the effective date under section 1503 of the Homeless
Emergency Assistance and Rapid Transition to Housing Act of
2009, the Secretary shall announce, within 6 months after the
last date for the submission of applications described in this
subsection for a fiscal year, the grants conditionally awarded
under subsection (a) for that fiscal year.
``(d) Obligation, Distribution, and Utilization of Funds.--
``(1) Requirements for obligation.--
``(A) In general.--Not later than 9 months after the
announcement referred to in subsection (c)(2), each recipient
or project sponsor shall meet all requirements for the
obligation of those funds, including site control, matching
funds, and environmental review requirements, except as
provided in subparagraphs (B) and (C).
``(B) Acquisition, rehabilitation, or construction.--Not
later than 24 months after the announcement referred to in
subsection (c)(2), each recipient or project sponsor seeking
the obligation of funds for acquisition of housing,
rehabilitation of housing, or construction of new housing for a
grant announced under subsection (c)(2) shall meet all
requirements for the obligation of those funds, including site
control, matching funds, and environmental review requirements.
``(C) Extensions.--At the discretion of the Secretary, and
in compelling circumstances, the Secretary may extend the date
by which a recipient or project sponsor shall meet the
requirements described in subparagraphs (A) and (B) if the
Secretary determines that compliance with the requirements was
delayed due to factors beyond the reasonable control of the
recipient or project sponsor. Such factors may include
difficulties in obtaining site control for a proposed project,
completing the process of obtaining secure financing for the
project, obtaining approvals from State or local governments,
or completing the technical submission requirements for the
project.
``(2) Obligation.--Not later than 45 days after a recipient or
project sponsor meets the requirements described in paragraph (1),
the Secretary shall obligate the funds for the grant involved.
``(3) Distribution.--A recipient that receives funds through
such a grant--
``(A) shall distribute the funds to project sponsors (in
advance of expenditures by the project sponsors); and
``(B) shall distribute the appropriate portion of the funds
to a project sponsor not later than 45 days after receiving a
request for such distribution from the project sponsor.
``(4) Expenditure of funds.--The Secretary may establish a date
by which funds made available through a grant announced under
subsection (c)(2) for a homeless assistance project shall be
entirely expended by the recipient or project sponsors involved.
The date established under this paragraph shall not occur before
the expiration of the 24-month period beginning on the date that
funds are obligated for activities described under paragraphs (1)
or (2) of section 423(a). The Secretary shall recapture the funds
not expended by such date. The Secretary shall reallocate the funds
for another homeless assistance and prevention project that meets
the requirements of this subtitle to be carried out, if possible
and appropriate, in the same geographic area as the area served
through the original grant.
``(e) Renewal Funding for Unsuccessful Applicants.--The Secretary
may renew funding for a specific project previously funded under this
subtitle that the Secretary determines meets the purposes of this
subtitle, and was included as part of a total application that met the
criteria of subsection (c), even if the application was not selected to
receive grant assistance. The Secretary may renew the funding for a
period of not more than 1 year, and under such conditions as the
Secretary determines to be appropriate.
``(f) Considerations in Determining Renewal Funding.--When
providing renewal funding for leasing, operating costs, or rental
assistance for permanent housing, the Secretary shall make adjustments
proportional to increases in the fair market rents in the geographic
area.
``(g) More Than 1 Application for a Geographic Area.--If more than
1 collaborative applicant applies for funds for a geographic area, the
Secretary shall award funds to the collaborative applicant with the
highest score based on the selection criteria set forth in section 427.
``(h) Appeals.--
``(1) In general.--The Secretary shall establish a timely
appeal procedure for grant amounts awarded or denied under this
subtitle pursuant to a collaborative application or solo
application for funding.
``(2) Process.--The Secretary shall ensure that the procedure
permits appeals submitted by entities carrying out homeless housing
and services projects (including emergency shelters and
homelessness prevention programs), and all other applicants under
this subtitle.
``(i) Solo Applicants.--A solo applicant may submit an application
to the Secretary for a grant under subsection (a) and be awarded such
grant on the same basis as such grants are awarded to other applicants
based on the criteria described in section 427, but only if the
Secretary determines that the solo applicant has attempted to
participate in the continuum of care process but was not permitted to
participate in a reasonable manner. The Secretary may award such grants
directly to such applicants in a manner determined to be appropriate by
the Secretary.
``(j) Flexibility To Serve Persons Defined as Homeless Under Other
Federal Laws.--
``(1) In general.--A collaborative applicant may use not more
than 10 percent of funds awarded under this subtitle (continuum of
care funding) for any of the types of eligible activities specified
in paragraphs (1) through (7) of section 423(a) to serve families
with children and youth defined as homeless under other Federal
statutes, or homeless families with children and youth defined as
homeless under section 103(a)(6), but only if the applicant
demonstrates that the use of such funds is of an equal or greater
priority or is equally or more cost effective in meeting the
overall goals and objectives of the plan submitted under section
427(b)(1)(B), especially with respect to children and unaccompanied
youth.
``(2) Limitations.--The 10 percent limitation under paragraph
(1) shall not apply to collaborative applicants in which the rate
of homelessness, as calculated in the most recent point in time
count, is less than one-tenth of 1 percent of total population.
``(3) Treatment of certain populations.--
``(A) In general.--Notwithstanding section 103(a) and
subject to subparagraph (B), funds awarded under this subtitle
may be used for eligible activities to serve unaccompanied
youth and homeless families and children defined as homeless
under section 103(a)(6) only pursuant to paragraph (1) of this
subsection and such families and children shall not otherwise
be considered as homeless for purposes of this subtitle.
``(B) At risk of homelessness.--Subparagraph (A) may not be
construed to prevent any unaccompanied youth and homeless
families and children defined as homeless under section
103(a)(6) from qualifying for, and being treated for purposes
of this subtitle as, at risk of homelessness or from
eligibility for any projects, activities, or services carried
out using amounts provided under this subtitle for which
individuals or families that are at risk of homelessness are
eligible.''.
SEC. 1302. ELIGIBLE ACTIVITIES.
The McKinney-Vento Homeless Assistance Act is amended by striking
section 423 (42 U.S.C. 11383) and inserting the following new section:
``SEC. 423. ELIGIBLE ACTIVITIES.
``(a) In General.--Grants awarded under section 422 to qualified
applicants shall be used to carry out projects that serve homeless
individuals or families that consist of one or more of the following
eligible activities:
``(1) Construction of new housing units to provide transitional
or permanent housing.
``(2) Acquisition or rehabilitation of a structure to provide
transitional or permanent housing, other than emergency shelter, or
to provide supportive services.
``(3) Leasing of property, or portions of property, not owned
by the recipient or project sponsor involved, for use in providing
transitional or permanent housing, or providing supportive
services.
``(4) Provision of rental assistance to provide transitional or
permanent housing to eligible persons. The rental assistance may
include tenant-based, project-based, or sponsor-based rental
assistance. Project-based rental assistance, sponsor-based rental
assistance, and operating cost assistance contracts carried out by
project sponsors receiving grants under this section may, at the
discretion of the applicant and the project sponsor, have an
initial term of 15 years, with assistance for the first 5 years
paid with funds authorized for appropriation under this Act, and
assistance for the remainder of the term treated as a renewal of an
expiring contract as provided in section 429. Project-based rental
assistance may include rental assistance to preserve existing
permanent supportive housing for homeless individuals and families.
``(5) Payment of operating costs for housing units assisted
under this subtitle or for the preservation of housing that will
serve homeless individuals and families and for which another form
of assistance is expiring or otherwise no longer available.
``(6) Supportive services for individuals and families who are
currently homeless, who have been homeless in the prior six months
but are currently residing in permanent housing, or who were
previously homeless and are currently residing in permanent
supportive housing.
``(7) Provision of rehousing services, including housing
search, mediation or outreach to property owners, credit repair,
providing security or utility deposits, rental assistance for a
final month at a location, assistance with moving costs, or other
activities that--
``(A) are effective at moving homeless individuals and
families immediately into housing; or
``(B) may benefit individuals and families who in the prior
6 months have been homeless, but are currently residing in
permanent housing.
``(8) In the case of a collaborative applicant that is a legal
entity, performance of the duties described under section
402(f)(3).
``(9) Operation of, participation in, and ensuring consistent
participation by project sponsors in, a community-wide homeless
management information system.
``(10) In the case of a collaborative applicant that is a legal
entity, payment of administrative costs related to meeting the
requirements described in paragraphs (1) and (2) of section 402(f),
for which the collaborative applicant may use not more than 3
percent of the total funds made available in the geographic area
under this subtitle for such costs.
``(11) In the case of a collaborative applicant that is a
unified funding agency under section 402(g), payment of
administrative costs related to meeting the requirements of that
section, for which the unified funding agency may use not more than
3 percent of the total funds made available in the geographic area
under this subtitle for such costs, in addition to funds used under
paragraph (10).
``(12) Payment of administrative costs to project sponsors, for
which each project sponsor may use not more than 10 percent of the
total funds made available to that project sponsor through this
subtitle for such costs.
``(b) Minimum Grant Terms.--The Secretary may impose minimum grant
terms of up to 5 years for new projects providing permanent housing.
``(c) Use Restrictions.--
``(1) Acquisition, rehabilitation, and new construction.--A
project that consists of activities described in paragraph (1) or
(2) of subsection (a) shall be operated for the purpose specified
in the application submitted for the project under section 422 for
not less than 15 years.
``(2) Other activities.--A project that consists of activities
described in any of paragraphs (3) through (12) of subsection (a)
shall be operated for the purpose specified in the application
submitted for the project under section 422 for the duration of the
grant period involved.
``(3) Conversion.--If the recipient or project sponsor carrying
out a project that provides transitional or permanent housing
submits a request to the Secretary to carry out instead a project
for the direct benefit of low-income persons, and the Secretary
determines that the initial project is no longer needed to provide
transitional or permanent housing, the Secretary may approve the
project described in the request and authorize the recipient or
project sponsor to carry out that project.
``(d) Repayment of Assistance and Prevention of Undue Benefits.--
``(1) Repayment.--If a recipient or project sponsor receives
assistance under section 422 to carry out a project that consists
of activities described in paragraph (1) or (2) of subsection (a)
and the project ceases to provide transitional or permanent
housing--
``(A) earlier than 10 years after operation of the project
begins, the Secretary shall require the recipient or project
sponsor to repay 100 percent of the assistance; or
``(B) not earlier than 10 years, but earlier than 15 years,
after operation of the project begins, the Secretary shall
require the recipient or project sponsor to repay 20 percent of
the assistance for each of the years in the 15-year period for
which the project fails to provide that housing.
``(2) Prevention of undue benefits.--Except as provided in
paragraph (3), if any property is used for a project that receives
assistance under subsection (a) and consists of activities
described in paragraph (1) or (2) of subsection (a), and the sale
or other disposition of the property occurs before the expiration
of the 15-year period beginning on the date that operation of the
project begins, the recipient or project sponsor who received the
assistance shall comply with such terms and conditions as the
Secretary may prescribe to prevent the recipient or project sponsor
from unduly benefitting from such sale or disposition.
``(3) Exception.--A recipient or project sponsor shall not be
required to make the repayments, and comply with the terms and
conditions, required under paragraph (1) or (2) if--
``(A) the sale or disposition of the property used for the
project results in the use of the property for the direct
benefit of very low-income persons;
``(B) all of the proceeds of the sale or disposition are
used to provide transitional or permanent housing meeting the
requirements of this subtitle;
``(C) 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; or
``(D) there are no individuals and families in the
geographic area who are homeless, in which case the project may
serve individuals and families at risk of homelessness.
``(e) Staff Training.--The Secretary may allow reasonable costs
associated with staff training to be included as part of the activities
described in subsection (a).
``(f) Eligibility for Permanent Housing.--Any project that receives
assistance under subsection (a) and that provides project-based or
sponsor-based permanent housing for homeless individuals or families
with a disability, including projects that meet the requirements of
subsection (a) and subsection (d)(2)(A) of section 428 may also serve
individuals who had previously met the requirements for such project
prior to moving into a different permanent housing project.
``(g) Administration of Rental Assistance.--Provision of permanent
housing rental assistance shall be administered by a State, unit of
general local government, or public housing agency.''.
SEC. 1303. HIGH PERFORMING COMMUNITIES.
The McKinney-Vento Homeless Assistance Act is amended by striking
section 424 (42 U.S.C. 11384) and inserting the following:
``SEC. 424. INCENTIVES FOR HIGH-PERFORMING COMMUNITIES.
``(a) Designation as a High-Performing Community.--
``(1) In general.--The Secretary shall designate, on an annual
basis, which collaborative applicants represent high-performing
communities.
``(2) Consideration.--In determining whether to designate a
collaborative applicant as a high-performing community under
paragraph (1), the Secretary shall establish criteria to ensure
that the requirements described under paragraphs (1)(B) and (2)(B)
of subsection (d) are measured by comparing homeless individuals
and families under similar circumstances, in order to encourage
projects in the geographic area to serve homeless individuals and
families with more severe barriers to housing stability.
``(3) 2-year phase in.--In each of the first 2 years after the
effective date under section 1503 of the Homeless Emergency
Assistance and Rapid Transition to Housing Act of 2009, the
Secretary shall designate not more than 10 collaborative applicants
as high-performing communities.
``(4) Excess of qualified applicants.--If, during the 2-year
period described under paragraph (2), more than 10 collaborative
applicants could qualify to be designated as high-performing
communities, the Secretary shall designate the 10 that have, in the
discretion of the Secretary, the best performance based on the
criteria described under subsection (d).
``(5) Time limit on designation.--The designation of any
collaborative applicant as a high-performing community under this
subsection shall be effective only for the year in which such
designation is made. The Secretary, on an annual basis, may renew
any such designation.
``(b) Application.--
``(1) In general.--A collaborative applicant seeking
designation as a high-performing community under subsection (a)
shall submit an application to the Secretary at such time, and in
such manner as the Secretary may require.
``(2) Content of application.--In any application submitted
under paragraph (1), a collaborative applicant shall include in
such application--
``(A) a report showing how any money received under this
subtitle in the preceding year was expended; and
``(B) information that such applicant can meet the
requirements described under subsection (d).
``(3) Publication of application.--The Secretary shall--
``(A) publish any report or information submitted in an
application under this section in the geographic area
represented by the collaborative applicant; and
``(B) seek comments from the public as to whether the
collaborative applicant seeking designation as a high-
performing community meets the requirements described under
subsection (d).
``(c) Use of Funds.--Funds awarded under section 422(a) to a
project sponsor who is located in a high-performing community may be
used--
``(1) for any of the eligible activities described in section
423; or
``(2) for any of the eligible activities described in
paragraphs (4) and (5) of section 415(a).
``(d) Definition of High-Performing Community.--For purposes of
this section, the term `high-performing community' means a geographic
area that demonstrates through reliable data that all five of the
following requirements are met for that geographic area:
``(1) Term of homelessness.--The mean length of episodes of
homelessness for that geographic area--
``(A) is less than 20 days; or
``(B) for individuals and families in similar circumstances
in the preceding year was at least 10 percent less than in the
year before.
``(2) Families leaving homelessness.--Of individuals and
families--
``(A) who leave homelessness, fewer than 5 percent of such
individuals and families become homeless again at any time
within the next 2 years; or
``(B) in similar circumstances who leave homelessness, the
percentage of such individuals and families who become homeless
again within the next 2 years has decreased by at least 20
percent from the preceding year.
``(3) Community action.--The communities that compose the
geographic area have--
``(A) actively encouraged homeless individuals and families
to participate in homeless assistance services available in
that geographic area; and
``(B) included each homeless individual or family who
sought homeless assistance services in the data system used by
that community for determining compliance with this subsection.
``(4) Effectiveness of previous activities.--If recipients in
the geographic area have used funding awarded under section 422(a)
for eligible activities described under section 415(a) in previous
years based on the authority granted under subsection (c), that
such activities were effective at reducing the number of
individuals and families who became homeless in that community.
``(5) Flexibility to serve persons defined as homeless under
other federal laws.--With respect to collaborative applicants
exercising the authority under section 422(j) to serve homeless
families with children and youth defined as homeless under other
Federal statutes, effectiveness in achieving the goals and outcomes
identified in subsection 427(b)(1)(F) according to such standards
as the Secretary shall promulgate.
``(e) Cooperation Among Entities.--A collaborative applicant
designated as a high-performing community under this section shall
cooperate with the Secretary in distributing information about
successful efforts within the geographic area represented by the
collaborative applicant to reduce homelessness.''.
SEC. 1304. PROGRAM REQUIREMENTS.
Section 426 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11386) is amended--
(1) by striking subsections (a), (b), and (c) and inserting the
following:
``(a) Site Control.--The Secretary shall require that each
application include reasonable assurances that the applicant will own
or have control of a site for the proposed project not later than the
expiration of the 12-month period beginning upon notification of an
award for grant assistance, unless the application proposes providing
supportive housing assistance under section 423(a)(3) or housing that
will eventually be owned or controlled by the families and individuals
served. An applicant may obtain ownership or control of a suitable site
different from the site specified in the application. If any recipient
or project sponsor fails to obtain ownership or control of the site
within 12 months after notification of an award for grant assistance,
the grant shall be recaptured and reallocated under this subtitle.
``(b) Required Agreements.--The Secretary may not provide
assistance for a proposed project under this subtitle unless the
collaborative applicant involved agrees--
``(1) to ensure the operation of the project in accordance with
the provisions of this subtitle;
``(2) to monitor and report to the Secretary the progress of
the project;
``(3) to ensure, to the maximum extent practicable, that
individuals and families experiencing homelessness are involved,
through employment, provision of volunteer services, or otherwise,
in constructing, rehabilitating, maintaining, and operating
facilities for the project and in providing supportive services for
the project;
``(4) to require certification from all project sponsors that--
``(A) they will maintain the confidentiality of records
pertaining to any individual or family provided family violence
prevention or treatment services through the project;
``(B) that the address or location of any family violence
shelter project assisted under this subtitle will not be made
public, except with written authorization of the person
responsible for the operation of such project;
``(C) they will establish policies and practices that are
consistent with, and do not restrict the exercise of rights
provided by, subtitle B of title VII, and other laws relating
to the provision of educational and related services to
individuals and families experiencing homelessness;
``(D) in the case of programs that provide housing or
services to families, they will designate a staff person to be
responsible for ensuring that children being served in the
program are enrolled in school and connected to appropriate
services in the community, including early childhood programs
such as Head Start, part C of the Individuals with Disabilities
Education Act, and programs authorized under subtitle B of
title VII of this Act (42 U.S.C. 11431 et seq.); and
``(E) they will provide data and reports as required by the
Secretary pursuant to the Act;
``(5) if a collaborative applicant is a unified funding agency
under section 402(g) and receives funds under subtitle C to carry
out the payment of administrative costs described in section
423(a)(11), to establish such fiscal control and fund accounting
procedures as may be necessary to assure the proper disbursal of,
and accounting for, such funds in order to ensure that all
financial transactions carried out with such funds are conducted,
and records maintained, in accordance with generally accepted
accounting principles;
``(6) to monitor and report to the Secretary the provision of
matching funds as required by section 430;
``(7) to take the educational needs of children into account
when families are placed in emergency or transitional shelter and
will, to the maximum extent practicable, place families with
children as close as possible to their school of origin so as not
to disrupt such children's education; and
``(8) to comply with such other terms and conditions as the
Secretary may establish to carry out this subtitle in an effective
and efficient manner.'';
(2) by redesignating subsection (d) as subsection (c);
(3) in the first sentence of subsection (c) (as so redesignated
by paragraph (2) of this subsection), by striking ``recipient'' and
inserting ``recipient or project sponsor'';
(4) by striking subsection (e);
(5) by redesignating subsections (f), (g), and (h), as
subsections (d), (e), and (f), respectively;
(6) in the first sentence of subsection (e) (as so redesignated
by paragraph (5) of this section), by striking ``recipient'' each
place it appears and inserting ``recipient or project sponsor'';
(7) by striking subsection (i); and
(8) by redesignating subsection (j) as subsection (g).
SEC. 1305. SELECTION CRITERIA, ALLOCATION AMOUNTS, AND FUNDING.
The McKinney-Vento Homeless Assistance Act is amended--
(1) by repealing section 429 (42 U.S.C. 11389); and
(2) by redesignating sections 427 and 428 (42 U.S.C. 11387,
11388) as sections 432 and 433, respectively; and
(3) by inserting after section 426 the following new sections:
``SEC. 427. SELECTION CRITERIA.
``(a) In General.--The Secretary shall award funds to recipients
through a national competition between geographic areas based on
criteria established by the Secretary.
``(b) Required Criteria.--
``(1) In general.--The criteria established under subsection
(a) shall include--
``(A) the previous performance of the recipient regarding
homelessness, including performance related to funds provided
under section 412 (except that recipients applying from
geographic areas where no funds have been awarded under this
subtitle, or under subtitles C, D, E, or F of title IV of this
Act, as in effect prior to the date of the enactment of the
Homeless Emergency Assistance and Rapid Transition to Housing
Act of 2009, shall receive full credit for performance under
this subparagraph), measured by criteria that shall be
announced by the Secretary, that shall take into account
barriers faced by individual homeless people, and that shall
include--
``(i) the length of time individuals and families
remain homeless;
``(ii) the extent to which individuals and families who
leave homelessness experience additional spells of
homelessness;
``(iii) the thoroughness of grantees in the geographic
area in reaching homeless individuals and families;
``(iv) overall reduction in the number of homeless
individuals and families;
``(v) jobs and income growth for homeless individuals
and families;
``(vi) success at reducing the number of individuals
and families who become homeless;
``(vii) other accomplishments by the recipient related
to reducing homelessness; and
``(viii) for collaborative applicants that have
exercised the authority under section 422(j) to serve
families with children and youth defined as homeless under
other Federal statutes, success in achieving the goals and
outcomes identified in section 427(b)(1)(F);
``(B) the plan of the recipient, which shall describe--
``(i) how the number of individuals and families who
become homeless will be reduced in the community;
``(ii) how the length of time that individuals and
families remain homeless will be reduced;
``(iii) how the recipient will collaborate with local
education authorities to assist in the identification of
individuals and families who become or remain homeless and
are informed of their eligibility for services under
subtitle B of title VII of this Act (42 U.S.C. 11431 et
seq.);
``(iv) the extent to which the recipient will--
``(I) address the needs of all relevant
subpopulations;
``(II) incorporate comprehensive strategies for
reducing homelessness, including the interventions
referred to in section 428(d);
``(III) set quantifiable performance measures;
``(IV) set timelines for completion of specific
tasks;
``(V) identify specific funding sources for planned
activities; and
``(VI) identify an individual or body responsible
for overseeing implementation of specific strategies;
and
``(v) whether the recipient proposes to exercise
authority to use funds under section 422(j), and if so, how
the recipient will achieve the goals and outcomes
identified in section 427(b)(1)(F);
``(C) the methodology of the recipient used to determine
the priority for funding local projects under section
422(c)(1), including the extent to which the priority-setting
process--
``(i) uses periodically collected information and
analysis to determine the extent to which each project has
resulted in rapid return to permanent housing for those
served by the project, taking into account the severity of
barriers faced by the people the project serves;
``(ii) considers the full range of opinions from
individuals or entities with knowledge of homelessness in
the geographic area or an interest in preventing or ending
homelessness in the geographic area;
``(iii) is based on objective criteria that have been
publicly announced by the recipient; and
``(iv) is open to proposals from entities that have not
previously received funds under this subtitle;
``(D) the extent to which the amount of assistance to be
provided under this subtitle to the recipient will be
supplemented with resources from other public and private
sources, including mainstream programs identified by the
Government Accountability Office in the two reports described
in section 203(a)(7);
``(E) demonstrated coordination by the recipient with the
other Federal, State, local, private, and other entities
serving individuals and families experiencing homelessness and
at risk of homelessness in the planning and operation of
projects;
``(F) for collaborative applicants exercising the authority
under section 422(j) to serve homeless families with children
and youth defined as homeless under other Federal statutes,
program goals and outcomes, which shall include--
``(i) preventing homelessness among the subset of such
families with children and youth who are at highest risk of
becoming homeless, as such term is defined for purposes of
this title; or
``(ii) achieving independent living in permanent
housing among such families with children and youth,
especially those who have a history of doubled-up and other
temporary housing situations or are living in a temporary
housing situation due to lack of available and appropriate
emergency shelter, through the provision of eligible
assistance that directly contributes to achieving such
results including assistance to address chronic
disabilities, chronic physical health or mental health
conditions, substance addiction, histories of domestic
violence or childhood abuse, or multiple barriers to
employment; and
``(G) such other factors as the Secretary determines to be
appropriate to carry out this subtitle in an effective and
efficient manner.
``(2) Additional criteria.--In addition to the criteria
required under paragraph (1), the criteria established under
paragraph (1) shall also include the need within the geographic
area for homeless services, determined as follows and under the
following conditions:
``(A) Notice.--The Secretary shall inform each
collaborative applicant, at a time concurrent with the release
of the notice of funding availability for the grants, of the
pro rata estimated grant amount under this subtitle for the
geographic area represented by the collaborative applicant.
``(B) Amount.--
``(i) Formula.--Such estimated grant amounts shall be
determined by a formula, which shall be developed by the
Secretary, by regulation, not later than the expiration of
the 2-year period beginning upon the date of the enactment
of the Homeless Emergency Assistance and Rapid Transition
to Housing Act of 2009, that is based upon factors that are
appropriate to allocate funds to meet the goals and
objectives of this subtitle.
``(ii) Combinations or consortia.--For a collaborative
applicant that represents a combination or consortium of
cities or counties, the estimated need amount shall be the
sum of the estimated need amounts for the cities or
counties represented by the collaborative applicant.
``(iii) Authority of secretary.--Subject to the
availability of appropriations, the Secretary shall
increase the estimated need amount for a geographic area if
necessary to provide 1 year of renewal funding for all
expiring contracts entered into under this subtitle for the
geographic area.
``(3) Homelessness counts.--The Secretary shall not require
that communities conduct an actual count of homeless people other
than those described in paragraphs (1) through (4) of section
103(a) of this Act (42 U.S.C. 11302(a)).
``(c) Adjustments.--The Secretary may adjust the formula described
in subsection (b)(2) as necessary--
``(1) to ensure that each collaborative applicant has
sufficient funding to renew all qualified projects for at least one
year; and
``(2) to ensure that collaborative applicants are not
discouraged from replacing renewal projects with new projects that
the collaborative applicant determines will better be able to meet
the purposes of this Act.
``SEC. 428. ALLOCATION OF AMOUNTS AND INCENTIVES FOR SPECIFIC
ELIGIBLE ACTIVITIES.
``(a) Minimum Allocation for Permanent Housing for Homeless
Individuals and Families With Disabilities.--
``(1) In general.--From the amounts made available to carry out
this subtitle for a fiscal year, a portion equal to not less than
30 percent of the sums made available to carry out subtitle B and
this subtitle, shall be used for permanent housing for homeless
individuals with disabilities and homeless families that include
such an individual who is an adult or a minor head of household if
no adult is present in the household.
``(2) Calculation.--In calculating the portion of the amount
described in paragraph (1) that is used for activities that are
described in paragraph (1), the Secretary shall not count funds
made available to renew contracts for existing projects under
section 429.
``(3) Adjustment.--The 30 percent figure in paragraph (1) shall
be reduced proportionately based on need under section 427(b)(2) in
geographic areas for which subsection (e) applies in regard to
subsection (d)(2)(A).
``(4) Suspension.--The requirement established in paragraph (1)
shall be suspended for any year in which funding available for
grants under this subtitle after making the allocation established
in paragraph (1) would not be sufficient to renew for 1 year all
existing grants that would otherwise be fully funded under this
subtitle.
``(5) Termination.--The requirement established in paragraph
(1) shall terminate upon a finding by the Secretary that since the
beginning of 2001 at least 150,000 new units of permanent housing
for homeless individuals and families with disabilities have been
funded under this subtitle.
``(b) Set-Aside for Permanent Housing for Homeless Families With
Children.--From the amounts made available to carry out this subtitle
for a fiscal year, a portion equal to not less than 10 percent of the
sums made available to carry out subtitle B and this subtitle for that
fiscal year shall be used to provide or secure permanent housing for
homeless families with children.
``(c) Treatment of Amounts for Permanent or Transitional Housing.--
Nothing in this Act may be construed to establish a limit on the amount
of funding that an applicant may request under this subtitle for
acquisition, construction, or rehabilitation activities for the
development of permanent housing or transitional housing.
``(d) Incentives for Proven Strategies.--
``(1) In general.--The Secretary shall provide bonuses or other
incentives to geographic areas for using funding under this
subtitle for activities that have been proven to be effective at
reducing homelessness generally, reducing homelessness for a
specific subpopulation, or achieving homeless prevention and
independent living goals as set forth in section 427(b)(1)(F).
``(2) Rule of construction.--For purposes of this subsection,
activities that have been proven to be effective at reducing
homelessness generally or reducing homelessness for a specific
subpopulation includes--
``(A) permanent supportive housing for chronically homeless
individuals and families;
``(B) for homeless families, rapid rehousing services,
short-term flexible subsidies to overcome barriers to
rehousing, support services concentrating on improving incomes
to pay rent, coupled with performance measures emphasizing
rapid and permanent rehousing and with leveraging funding from
mainstream family service systems such as Temporary Assistance
for Needy Families and Child Welfare services; and
``(C) any other activity determined by the Secretary, based
on research and after notice and comment to the public, to have
been proven effective at reducing homelessness generally,
reducing homelessness for a specific subpopulation, or
achieving homeless prevention and independent living goals as
set forth in section 427(b)(1)(F).
``(3) Balance of incentives for proven strategies.--To the
extent practicable, in providing bonuses or incentives for proven
strategies, the Secretary shall seek to maintain a balance among
strategies targeting homeless individuals, families, and other
subpopulations. The Secretary shall not implement bonuses or
incentives that specifically discourage collaborative applicants
from exercising their flexibility to serve families with children
and youth defined as homeless under other Federal statutes.
``(e) Incentives for Successful Implementation of Proven
Strategies.--If any geographic area demonstrates that it has fully
implemented any of the activities described in subsection (d) for all
homeless individuals and families or for all members of subpopulations
for whom such activities are targeted, that geographic area shall
receive the bonus or incentive provided under subsection (d), but may
use such bonus or incentive for any eligible activity under either
section 423 or paragraphs (4) and (5) of section 415(a) for homeless
people generally or for the relevant subpopulation.
``SEC. 429. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR PERMANENT
HOUSING.
``(a) In General.--Renewal of expiring contracts for leasing,
rental assistance, or operating costs for permanent housing contracts
may be funded either--
``(1) under the appropriations account for this title; or
``(2) the section 8 project-based rental assistance account.
``(b) Renewals.--The sums made available under subsection (a) shall
be available for the renewal of contracts in the case of tenant-based
assistance, successive 1-year terms, and in the case of project-based
assistance, successive terms of up to 15 years at the discretion of the
applicant or project sponsor and subject to the availability of annual
appropriations, for rental assistance and housing operation costs
associated with permanent housing projects funded under this subtitle,
or under subtitle C or F (as in effect on the day before the effective
date of the Homeless Emergency Assistance and Rapid Transition to
Housing Act of 2009). The Secretary shall determine whether to renew a
contract for such a permanent housing project on the basis of
certification by the collaborative applicant for the geographic area
that--
``(1) there is a demonstrated need for the project; and
``(2) the project complies with program requirements and
appropriate standards of housing quality and habitability, as
determined by the Secretary.
``(c) Construction.--Nothing in this section shall be construed as
prohibiting the Secretary from renewing contracts under this subtitle
in accordance with criteria set forth in a provision of this subtitle
other than this section.
``SEC. 430. MATCHING FUNDING.
``(a) In General.--A collaborative applicant in a geographic area
in which funds are awarded under this subtitle shall specify
contributions from any source other than a grant awarded under this
subtitle, including renewal funding of projects assisted under
subtitles C, D, and F of this title as in effect before the effective
date under section 1503 of the Homeless Emergency Assistance and Rapid
Transition to Housing Act of 2009, that shall be made available in the
geographic area in an amount equal to not less than 25 percent of the
funds provided to recipients in the geographic area, except that grants
for leasing shall not be subject to any match requirement.
``(b) Limitations on In-Kind Match.--The cash value of services
provided to the residents or clients of a project sponsor by an entity
other than the project sponsor may count toward the contributions in
subsection (a) only when documented by a memorandum of understanding
between the project sponsor and the other entity that such services
will be provided.
``(c) Countable Activities.--The contributions required under
subsection (a) may consist of--
``(1) funding for any eligible activity described under section
423; and
``(2) subject to subsection (b), in-kind provision of services
of any eligible activity described under section 423.
``SEC. 431. APPEAL PROCEDURE.
``(a) In General.--With respect to funding under this subtitle, if
certification of consistency with the consolidated plan pursuant to
section 403 is withheld from an applicant who has submitted an
application for that certification, such applicant may appeal such
decision to the Secretary.
``(b) Procedure.--The Secretary shall establish a procedure to
process the appeals described in subsection (a).
``(c) Determination.--Not later than 45 days after the date of
receipt of an appeal described in subsection (a), the Secretary shall
determine if certification was unreasonably withheld. If such
certification was unreasonably withheld, the Secretary shall review
such application and determine if such applicant shall receive funding
under this subtitle.''.
SEC. 1306. RESEARCH.
There is authorized to be appropriated $8,000,000, for each of
fiscal years 2010 and 2011, for research into the efficacy of
interventions for homeless families, to be expended by the Secretary of
Housing and Urban Development over the 2 years at 3 different sites to
provide services for homeless families and evaluate the effectiveness
of such services.
TITLE IV--RURAL HOUSING STABILITY ASSISTANCE PROGRAM
SEC. 1401. RURAL HOUSING STABILITY ASSISTANCE.
Subtitle G of title IV of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11408 et seq.) is amended--
(1) by striking the subtitle heading and inserting the
following:
``Subtitle G--Rural Housing Stability Assistance Program''; and
(2) in section 491--
(A) by striking the section heading and inserting ``rural
housing stability grant program.'';
(B) in subsection (a)--
(i) by striking ``rural homelessness grant program''
and inserting ``rural housing stability grant program'';
(ii) by inserting ``in lieu of grants under subtitle
C'' after ``eligible organizations''; and
(iii) by striking paragraphs (1), (2), and (3), and
inserting the following:
``(1) rehousing or improving the housing situations of
individuals and families who are homeless or in the worst housing
situations in the geographic area;
``(2) stabilizing the housing of individuals and families who
are in imminent danger of losing housing; and
``(3) improving the ability of the lowest-income residents of
the community to afford stable housing.'';
(C) in subsection (b)(1)--
(i) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (I), (J), and (K), respectively; and
(ii) by striking subparagraph (D) and inserting the
following:
``(D) construction of new housing units to provide
transitional or permanent housing to homeless individuals and
families and individuals and families at risk of homelessness;
``(E) acquisition or rehabilitation of a structure to
provide supportive services or to provide transitional or
permanent housing, other than emergency shelter, to homeless
individuals and families and individuals and families at risk
of homelessness;
``(F) leasing of property, or portions of property, not
owned by the recipient or project sponsor involved, for use in
providing transitional or permanent housing to homeless
individuals and families and individuals and families at risk
of homelessness, or providing supportive services to such
homeless and at-risk individuals and families;
``(G) provision of rental assistance to provide
transitional or permanent housing to homeless individuals and
families and individuals and families at risk of homelessness,
such rental assistance may include tenant-based or project-
based rental assistance;
``(H) payment of operating costs for housing units assisted
under this title;'';
(D) in subsection (b)(2), by striking ``appropriated'' and
inserting ``transferred'';
(E) in subsection (c)--
(i) in paragraph (1)(A), by striking ``appropriated''
and inserting ``transferred''; and
(ii) in paragraph (3), by striking ``appropriated'' and
inserting ``transferred'';
(F) in subsection (d)--
(i) in paragraph (5), by striking ``; and'' and
inserting a semicolon;
(ii) in paragraph (6)--
(I) by striking ``an agreement'' and all that
follows through ``families'' and inserting the
following: ``a description of how individuals and
families who are homeless or who have the lowest
incomes in the community will be involved by the
organization''; and
(II) by striking the period at the end, and
inserting a semicolon; and
(iii) by adding at the end the following:
``(7) a description of consultations that took place within the
community to ascertain the most important uses for funding under
this section, including the involvement of potential beneficiaries
of the project; and
``(8) a description of the extent and nature of homelessness
and of the worst housing situations in the community.'';
(G) by striking subsections (f) and (g) and inserting the
following:
``(f) Matching Funding.--
``(1) In general.--An organization eligible to receive a grant
under subsection (a) shall specify matching contributions from any
source other than a grant awarded under this subtitle, that shall
be made available in the geographic area in an amount equal to not
less than 25 percent of the funds provided for the project or
activity, except that grants for leasing shall not be subject to
any match requirement.
``(2) Limitations on in-kind match.--The cash value of services
provided to the beneficiaries or clients of an eligible
organization by an entity other than the organization may count
toward the contributions in paragraph (1) only when documented by a
memorandum of understanding between the organization and the other
entity that such services will be provided.
``(3) Countable activities.--The contributions required under
paragraph (1) may consist of--
``(A) funding for any eligible activity described under
subsection (b); and
``(B) subject to paragraph (2), in-kind provision of
services of any eligible activity described under subsection
(b).
``(g) Selection Criteria.--The Secretary shall establish criteria
for selecting recipients of grants under subsection (a), including--
``(1) the participation of potential beneficiaries of the
project in assessing the need for, and importance of, the project
in the community;
``(2) the degree to which the project addresses the most
harmful housing situations present in the community;
``(3) the degree of collaboration with others in the community
to meet the goals described in subsection (a);
``(4) the performance of the organization in improving housing
situations, taking account of the severity of barriers of
individuals and families served by the organization;
``(5) for organizations that have previously received funding
under this section, the extent of improvement in homelessness and
the worst housing situations in the community since such funding
began;
``(6) the need for such funds, as determined by the formula
established under section 427(b)(2); and
``(7) any other relevant criteria as determined by the
Secretary.'';
(H) in subsection (h)--
(i) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``The'' and inserting ``Not
later than 18 months after funding is first made available
pursuant to the amendments made by title IV of the Homeless
Emergency Assistance and Rapid Transition to Housing Act of
2009, the''; and
(ii) in paragraph (1)(A), by striking ``providing
housing and other assistance to homeless persons'' and
inserting ``meeting the goals described in subsection
(a)'';
(iii) in paragraph (1)(B), by striking ``address
homelessness in rural areas'' and inserting ``meet the
goals described in subsection (a) in rural areas''; and
(iv) in paragraph (2)--
(I) by striking ``The'' and inserting ``Not later
than 24 months after funding is first made available
pursuant to the amendment made by title IV of the
Homeless Emergency Assistance and Rapid Transition to
Housing Act of 2009, the'';
(II) by striking ``, not later than 18 months after
the date on which the Secretary first makes grants
under the program,''; and
(III) by striking ``prevent and respond to
homelessness'' and inserting ``meet the goals described
in subsection (a)'';
(I) in subsection (k)--
(i) in paragraph (1), by striking ``rural homelessness
grant program'' and inserting ``rural housing stability
grant program''; and
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking ``; or'' and
inserting a semicolon;
(II) in subparagraph (B)(ii), by striking ``rural
census tract.'' and inserting ``county where at least
75 percent of the population is rural; or''; and
(III) by adding at the end the following:
``(C) any area or community, respectively, located in a
State that has population density of less than 30 persons per
square mile (as reported in the most recent decennial census),
and of which at least 1.25 percent of the total acreage of such
State is under Federal jurisdiction, provided that no
metropolitan city (as such term is defined in section 102 of
the Housing and Community Development Act of 1974) in such
State is the sole beneficiary of the grant amounts awarded
under this section.'';
(J) in subsection (l)--
(i) by striking the subsection heading and inserting
``Program Funding.--''; and
(ii) by striking paragraph (1) and inserting the
following:
``(1) In general.--The Secretary shall determine the total
amount of funding attributable under section 427(b)(2) to meet the
needs of any geographic area in the Nation that applies for funding
under this section. The Secretary shall transfer any amounts
determined under this subsection from the Community Homeless
Assistance Program and consolidate such transferred amounts for
grants under this section, except that the Secretary shall transfer
an amount not less than 5 percent of the amount available under
subtitle C for grants under this section. Any amounts so
transferred and not used for grants under this section due to an
insufficient number of applications shall be transferred to be used
for grants under subtitle C.''; and
(K) by adding at the end the following:
``(m) Determination of Funding Source.--For any fiscal year, in
addition to funds awarded under subtitle B, funds under this title to
be used in a city or county shall only be awarded under either subtitle
C or subtitle D.''.
SEC. 1402. GAO STUDY OF HOMELESSNESS AND HOMELESS ASSISTANCE IN RURAL
AREAS.
(a) Study and Report.--Not later than the expiration of the 12-
month period beginning on the date of the enactment of this division,
the Comptroller General of the United States shall conduct a study to
examine homelessness and homeless assistance in rural areas and rural
communities and submit a report to the Congress on the findings and
conclusion of the study. The report shall contain the following
matters:
(1) A general description of homelessness, including the range
of living situations among homeless individuals and homeless
families, in rural areas and rural communities of the United
States, including tribal lands and colonias.
(2) An estimate of the incidence and prevalence of homelessness
among individuals and families in rural areas and rural communities
of the United States.
(3) An estimate of the number of individuals and families from
rural areas and rural communities who migrate annually to non-rural
areas and non-rural communities for homeless assistance.
(4) A description of barriers that individuals and families in
and from rural areas and rural communities encounter when seeking
to access homeless assistance programs, and recommendations for
removing such barriers.
(5) A comparison of the rate of homelessness among individuals
and families in and from rural areas and rural communities compared
to the rate of homelessness among individuals and families in and
from non-rural areas and non-rural communities.
(6) A general description of homeless assistance for
individuals and families in rural areas and rural communities of
the United States.
(7) A description of barriers that homeless assistance
providers serving rural areas and rural communities encounter when
seeking to access Federal homeless assistance programs, and
recommendations for removing such barriers.
(8) An assessment of the type and amount of Federal homeless
assistance funds awarded to organizations serving rural areas and
rural communities and a determination as to whether such amount is
proportional to the distribution of homeless individuals and
families in and from rural areas and rural communities compared to
homeless individuals and families in non-rural areas and non-rural
communities.
(9) An assessment of the current roles of the Department of
Housing and Urban Development, the Department of Agriculture, and
other Federal departments and agencies in administering homeless
assistance programs in rural areas and rural communities and
recommendations for distributing Federal responsibilities,
including homeless assistance program administration and
grantmaking, among the departments and agencies so that service
organizations in rural areas and rural communities are most
effectively reached and supported.
(b) Acquisition of Supporting Information.--In carrying out the
study under this section, the Comptroller General shall seek to obtain
views from the following persons:
(1) The Secretary of Agriculture.
(2) The Secretary of Housing and Urban Development.
(3) The Secretary of Health and Human Services.
(4) The Secretary of Education.
(5) The Secretary of Labor.
(6) The Secretary of Veterans Affairs.
(7) The Executive Director of the United States Interagency
Council on Homelessness.
(8) Project sponsors and recipients of homeless assistance
grants serving rural areas and rural communities.
(9) Individuals and families in or from rural areas and rural
communities who have sought or are seeking Federal homeless
assistance services.
(10) National advocacy organizations concerned with
homelessness, rural housing, and rural community development.
(c) Effective Date.--This section shall take effect on the date of
the enactment of this division.
TITLE V--REPEALS AND CONFORMING AMENDMENTS
SEC. 1501. REPEALS.
Subtitles D, E, and F of title IV of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11391 et seq., 11401 et seq., and 11403 et
seq.) are hereby repealed.
SEC. 1502. CONFORMING AMENDMENTS.
(a) Consolidated Plan.--Section 403(1) of the McKinney-Vento
Homeless Assistance Act (as so redesignated by section 1101(2) of this
division), is amended--
(1) by striking ``current housing affordability strategy'' and
inserting ``consolidated plan''; and
(2) by inserting before the comma the following: ``(referred to
in such section as a `comprehensive housing affordability
strategy')''.
(b) Persons Experiencing Homelessness.--Section 103 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302), as amended by
the preceding provisions of this division, is further amended by adding
at the end the following new subsection:
``(e) Persons Experiencing Homelessness.--Any references in this
Act to homeless individuals (including homeless persons) or homeless
groups (including homeless persons) shall be considered to include, and
to refer to, individuals experiencing homelessness or groups
experiencing homelessness, respectively.''.
(c) Rural Housing Stability Assistance.--Title IV of the McKinney-
Vento Homeless Assistance Act is amended by redesignating subtitle G
(42 U.S.C. 11408 et seq.), as amended by the preceding provisions of
this division, as subtitle D.
SEC. 1503. EFFECTIVE DATE.
Except as specifically provided otherwise in this division, this
division and the amendments made by this division shall take effect on,
and shall apply beginning on--
(1) the expiration of the 18-month period beginning on the date
of the enactment of this division, or
(2) the expiration of the 3-month period beginning upon
publication by the Secretary of Housing and Urban Development of
final regulations pursuant to section 1504,
whichever occurs first.
SEC. 1504. REGULATIONS.
(a) In General.--Not later than 12 months after the date of the
enactment of this division, the Secretary of Housing and Urban
Development shall promulgate regulations governing the operation of the
programs that are created or modified by this division.
(b) Effective Date.--This section shall take effect on the date of
the enactment of this division.
SEC. 1505. AMENDMENT TO TABLE OF CONTENTS.
The table of contents in section 101(b) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11301 note) is amended by striking
the item relating to the heading for title IV and all that follows
through the item relating to section 492 and inserting the following
new items:
``TITLE IV--HOUSING ASSISTANCE
``Subtitle A--General Provisions
``Sec. 401. Definitions.
``Sec. 402. Collaborative applicants.
``Sec. 403. Housing affordability strategy.
``Sec. 404. Preventing involuntary family separation.
``Sec. 405. Technical assistance.
``Sec. 406. Discharge coordination policy.
``Sec. 407. Protection of personally identifying information by victim
service providers.
``Sec. 408. Authorization of appropriations.
``Subtitle B--Emergency Solutions Grants Program
``Sec. 411. Definitions.
``Sec. 412. Grant assistance.
``Sec. 413. Amount and allocation of assistance.
``Sec. 414. Allocation and distribution of assistance.
``Sec. 415. Eligible activities.
``Sec. 416. Responsibilities of recipients.
``Sec. 417. Administrative provisions.
``Sec. 418. Administrative costs.
``Subtitle C--Continuum of Care Program
``Sec. 421. Purposes.
``Sec. 422. Continuum of care applications and grants.
``Sec. 423. Eligible activities.
``Sec. 424. Incentives for high-performing communities.
``Sec. 425. Supportive services.
``Sec. 426. Program requirements.
``Sec. 427. Selection criteria.
``Sec. 428. Allocation of amounts and incentives for specific eligible
activities.
``Sec. 429. Renewal funding and terms of assistance for permanent
housing.
``Sec. 430. Matching funding.
``Sec. 431. Appeal procedure.
``Sec. 432. Regulations.
``Sec. 433. Reports to Congress.
``Subtitle D--Rural Housing Stability Assistance Program
``Sec. 491. Rural housing stability assistance.
``Sec. 492. Use of FHMA inventory for transitional housing for homeless
persons and for turnkey housing.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.