[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 896 Engrossed in Senate (ES)]
111th CONGRESS
1st Session
S. 896
_______________________________________________________________________
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,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Helping Families
Save Their Homes Act of 2009''.
(b) Table of Contents.--The table of contents of this Act 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 of the Foreclosure Prevention Act of
2008 (42 U.S.C. 5301 note) is amended--
(1) in subsection (b), by adding at the end the following:
``(5) Distribution of funds in certain states; competition
for funds.--Each State that receives the minimum allocation of
amounts pursuant to the requirement under section 2302 shall be
permitted to use such amounts to address statewide concerns,
provided that such amounts are made available for an eligible
use described under paragraphs (3) and (4) of subsection
(c).''; and
(2) in subsection (c), by adding at the end the following:
``(4) Foreclosure prevention and mitigation.--
``(A) In general.--Each State and unit of general
local government that receives an allocation of any
covered amounts, as such amounts are distributed
pursuant to section 2302, may use up to 10 percent of
such amounts for foreclosure prevention programs,
activities, and services, foreclosure mitigation
programs, activities, and services, or both, as such
programs, activities, and services are defined by the
Secretary.
``(B) Definition of covered amounts.--For purposes
of this paragraph, the term `covered amount' means any
amounts appropriated--
``(i) under this section as in effect on
the date of enactment of this section; and
``(ii) under the heading `Community
Development Fund' of title XII of division A of
the American Recovery and Reinvestment Act of
2009 (Public Law 111-5; 123 Stat. 217).''.
(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).''.
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 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 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 $2,316,000,000,'' 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 203(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
investment fund to identify for the Secretary each
investor that, individually or together with its
affiliates, directly or indirectly holds equity
interests in the fund acquired as a result of--
(i) any investment by such investor or any
of its affiliates in a vehicle formed for the
purpose of directly or indirectly investing in
the fund; or
(ii) any other investment decision by such
investor or any of its affiliates to directly
or indirectly invest in the fund that, in the
aggregate, equal at least 10 percent of the
equity interests in such 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 the Public Private
Investment Program established by the Secretary of the Treasury
or the Term Asset Loan Facility established by the Board of
Governors of the Federal Reserve System (including any
successor thereto or any other similar program established by
the Secretary or the Board), 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
$2,331,000,000,'' after ``$700,000,000,000''.
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 under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length
transaction; or
(3) the lease or tenancy requires the receipt of rent that
is not substantially less than fair market rent for the
property.
(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 initial 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 eliminate 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.''.
Passed the Senate May 6, 2009.
Attest:
Secretary.
111th CONGRESS
1st Session
S. 896
_______________________________________________________________________
AN ACT
To prevent mortgage foreclosures and enhance mortgage credit
availability.