1.Short title and table of
contents
(a)This Act may be cited
as the Project Rebuild Act of
2011
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Direct appropriations.
Sec. 3. Allocation of appropriated amounts.
Sec. 4. Use of funds.
Sec. 5. Limitations.
Sec. 6. Rules of construction.
Sec. 7. Authority to specify alternative
requirements.
Sec. 8. Nationwide distribution of resources.
Sec. 9. Limitation on use of funds with respect to eminent
domain.
Sec. 10. Limitation on distribution of funds.
Sec. 11. Rental housing preferences.
Sec. 12. Job creation.
Sec. 13. Program support and capacity building.
Sec. 14. Enforcement and prevention of fraud and
abuse.
Sec. 15. Conformance of policies and procedures.
Sec. 16. Severability.
Sec. 17. Buy American—use of American iron, steel, and
manufactured goods.
Sec. 18. Wage rate and employment protection
requirements.
2.There is
appropriated, out of any money in the Treasury not otherwise appropriated,
$15,000,000,000, to remain available until September 30, 2014, for assistance
to eligible entities, including States and units of general local government
(as such terms are defined in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302)), and qualified nonprofit
organizations, businesses or consortia of eligible entities, for the
redevelopment of abandoned and foreclosed-upon properties and for the
stabilization of affected neighborhoods.
3.Allocation of
appropriated amounts
(a)Of the amounts appropriated, two-thirds shall be
allocated to States and units of general local government based on a funding
formula established by the Secretary of Housing and Urban Development (in this
Act referred to as the Secretary
). Of the amounts appropriated,
one-third shall be distributed competitively to eligible entities.
(b)Formula To be
devised swiftlyThe funding formula required under subsection (a)
shall be established and the Secretary shall announce formula funding
allocations, not later than 30 days after the date of enactment of this
Act.
(c)The Secretary may establish a minimum grant size, and
the funding formula required under subsection (a) shall ensure that any amounts
appropriated or otherwise made available under this Act are allocated to States
and units of general local government with the greatest need, as such need is
determined in the discretion of the Secretary based on—
(1)the number and
percentage of home foreclosures in each State or unit of general local
government;
(2)the number and
percentage of homes in default or delinquency in each State or unit of general
local government; and
(3)other factors such
as established program designs, grantee capacity and performance, number and
percentage of commercial foreclosures, overall economic conditions, and other
market needs data, as determined by the Secretary.
(d)
(1)For the funds distributed competitively, eligible
entities shall be States, units of general local government, nonprofit
entities, for-profit entities, and consortia of eligible entities that
demonstrate capacity to use funding within the period of this program.
(2)In selecting grantees, the Secretary shall ensure that
grantees are in areas with the greatest number and percentage of residential
and commercial foreclosures and other market needs data, as determined by the
Secretary. Additional award criteria shall include demonstrated grantee
capacity to execute projects involving acquisition and rehabilitation or
redevelopment of foreclosed residential and commercial property and
neighborhood stabilization, leverage, knowledge of market conditions and of
effective stabilization activities to address identified conditions, and any
additional factors determined by the Secretary.
(3)The Secretary may establish a minimum grant size.
(4)The Secretary shall publish competition criteria for any
grants awarded under this Act not later than 60 days after appropriation of
funds, and applications shall be due to the Secretary within 120 days.
4.
(a)Obligation and
expenditureThe Secretary shall obligate all funding within 150
days of enactment of this Act. Any eligible entity that receives amounts
pursuant to this Act shall expend all funds allocated to it within three years
of the date the funds become available to the grantee for obligation.
Furthermore, the Secretary shall by notice establish intermediate expenditure
benchmarks at the one and two year dates from the date the funds become
available to the grantee for obligation.
(b)
(1)Each grantee or eligible entity shall describe how its
proposed use of funds will prioritize job creation, and secondly, will address
goals to stabilize neighborhoods, reverse vacancy, or increase or stabilize
residential and commercial property values.
(2)Any
State or unit of general local government that receives formula amounts
pursuant to this Act shall, in distributing and targeting such amounts give
priority emphasis and consideration to those metropolitan areas, metropolitan
cities, urban areas, rural areas, low- and moderate-income areas, and other
areas with the greatest need, including those—
(A)with the greatest
percentage of home foreclosures;
(B)identified as
likely to face a significant rise in the rate of residential or commercial
foreclosures; and
(C)with higher than
national average unemployment rate.
(3)Each
grantee or eligible entity shall describe how its proposed use of funds will
leverage private funds.
(c)Amounts made available under this Act may be used to—
(1)establish
financing mechanisms for the purchase and redevelopment of abandoned and
foreclosed-upon properties, including such mechanisms as soft-seconds, loan
loss reserves, and shared-equity loans for low- and moderate-income
homebuyers;
(2)purchase and
rehabilitate properties that have been abandoned or foreclosed-upon, in order
to sell, rent, or redevelop such properties;
(3)establish and
operate land banks for properties that have been abandoned or
foreclosed-upon;
(4)demolish blighted
structures;
(5)redevelop
abandoned, foreclosed, demolished, or vacant properties; and
(6)engage in other
activities, as determined by the Secretary through notice, that are consistent
with the goals of creating jobs, stabilizing neighborhoods, reversing vacancy
reduction, and increasing or stabilizing residential and commercial property
values.
5.
(a)Any purchase of a property under this Act shall be at a
price not to exceed its current market value, taking into account its current
condition.
(b)Any
rehabilitation of an eligible property under this Act shall be to the extent
necessary to comply with applicable laws, and other requirements relating to
safety, quality, marketability, and habitability, in order to sell, rent, or
redevelop such properties or provide a renewable energy source or sources for
such properties.
(c)If an abandoned or foreclosed-upon home is purchased,
redeveloped, or otherwise sold to an individual as a primary residence, then
such sale shall be in an amount equal to or less than the cost to acquire and
redevelop or rehabilitate such home or property up to a decent, safe,
marketable, and habitable condition.
(d)On demolition of
public housingPublic housing, as defined in section 3(b)(6) of
the United States Housing Act of 1937, may not be demolished with funds under
this Act.
(e)No more than 10 percent of any grant made under this
Act may be used for demolition activities unless the Secretary determines that
such use represents an appropriate response to local market conditions.
(f)On use of funds
for non-Residential propertyNo more than 30 percent of any grant
made under this Act may be used for eligible activities under paragraphs (1),
(2), and (5) of section 4(c) that will not result in residential use of the
property involved unless the Secretary determines that such use represents an
appropriate response to local market conditions.
6.
(a)Except as otherwise provided by this Act, amounts
appropriated, revenues generated, or amounts otherwise made available to
eligible entities under this Act shall be treated as though such funds were
community development block grant funds under title I of the Housing and
Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
(b)No matching funds shall be required in order for an
eligible entity to receive any amounts under this Act.
(c)An eligible entity receiving a grant under this Act
shall comply with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd, and 23rd
provisos of the heading Community Planning and Development—Community
Development Fun
in title XII of Division A of American Recovery and
Reinvestment Act of 2009 (Public Law 111–5, 123 Stat. 218–19), as amended by
section 1497(b)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (Public Law 111–203, 124 Stat. 2211).
(d)An eligible entity receiving a grant under this Act shall
comply with section 1497(a)(8) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Public Law 111–203, 129 Stat. 2210).
7.Authority to
specify alternative requirements
(a)In administering the program under this Act, the
Secretary may specify alternative requirements to any provision under title I
of the Housing and Community Development Act of 1974 or under title I of the
Cranston-Gonzalez National Affordable Housing Act of 1990 (except for those
provisions in these laws related to fair housing, nondiscrimination, labor
standards, and the environment) for the purpose of expediting and facilitating
the use of funds under this Act.
(b)The
Secretary shall provide written notice of intent to the public via internet to
exercise the authority to specify alternative requirements under subsection
(a).
(c)Low- and
moderate-Income requirement
(1)Notwithstanding the authority of the Secretary under
subsection (a)—
(A)all of the formula
and competitive grantee funds appropriated or otherwise made available under
this Act shall be used with respect to individuals and families whose income
does not exceed 120 percent of area median income; and
(B)not less than 25
percent of the formula and competitive grantee funds appropriated or otherwise
made available under this Act shall be used for the purchase and redevelopment
of eligible properties that will be used to house individuals or families whose
incomes do not exceed 50 percent of area median income.
(2)The Secretary shall, by rule or order, ensure, to the
maximum extent practicable and for the longest feasible term, that the sale,
rental, or redevelopment of abandoned and foreclosed-upon homes and residential
properties under this Act remain affordable to individuals or families
described in paragraph (1).
8.Nationwide
distribution of resourcesNotwithstanding any other provision of this
Act, each State shall receive not less than $20,000,000 of formula
funds.
9.Limitation on use
of funds with respect to eminent domainNo State or unit of general local government
may use any amounts received pursuant to this Act to fund any project that
seeks to use the power of eminent domain, unless eminent domain is employed
only for a public use, which shall not be construed to include economic
development that primarily benefits private entities.
10.Limitation on
distribution of funds
(a)None of the funds made available under this Act shall be
distributed to—
(1)an organization
which has been indicted for a violation under Federal law relating to an
election for Federal office; or
(2)an organization
which employs applicable individuals.
(b)Applicable
individuals definedIn this section, the term applicable
individual
means an individual who—
(1)is—
(A)employed by the
organization in a permanent or temporary capacity;
(B)contracted or
retained by the organization; or
(C)acting on behalf
of, or with the express or apparent authority of, the organization; and
(2)has been indicted
for a violation under Federal law relating to an election for Federal
office.
11.Rental housing
preferencesEach State and
local government receiving formula amounts shall establish procedures to create
preferences for the development of affordable rental housing.
12.If a grantee chooses
to use funds to create jobs by establishing and operating a program to maintain
eligible neighborhood properties, not more than 10 percent of any grant may be
used for that purpose.
13.Program support
and capacity buildingThe
Secretary may use up to 0.75 percent of the funds appropriated for capacity
building of and support for eligible entities and grantees undertaking
neighborhood stabilization programs, staffing, training, technical assistance,
technology, monitoring, travel, enforcement, research, and evaluation
activities, subject to the following requirements:
(1)Funds set aside
for the purposes of this section shall remain available until September 30,
2016.
(2)Any funds made
available under this section and used by the Secretary for personnel expenses
related to administering funding under this subparagraph shall be transferred
to Personnel Compensation and Benefits, Community Planning and
Development
.
(3)Any funds made
available under this section and used by the Secretary for training or other
administrative expenses shall be transferred to Administration,
Operations, and Management, Community Planning and Development
for
non-personnel expenses.
(4)Any funds made
available under this section and used by the Secretary for technology shall be
transferred to Working Capital Fund
.
14.Enforcement and
prevention of fraud and abuseThe Secretary shall establish and implement
procedures to prevent fraud and abuse of funds under this Act, and shall impose
a requirement that grantees have an internal auditor to continuously monitor
grantee performance to prevent fraud, waste, and abuse. Grantees shall provide
the Secretary and citizens with quarterly progress reports. The Secretary shall
recapture funds from formula and competitive grantees that do not expend 100
percent of allocated funds within 3 years of the date that funds become
available, and from underperforming or mismanaged grantees, and shall
re-allocate those funds by formula to target areas with the greatest need, as
determined by the Secretary through notice. The Secretary may take an
alternative sanctions action only upon determining that such action is
necessary to achieve program goals in a timely manner.
15.Conformance of
policies and proceduresThe
Secretary of Housing and Urban Development shall to the extent feasible conform
policies and procedures for grants made under this Act to the policies and
practices already in place for the grants made under section 2301 of the
Housing and Economic Recovery Act of 2008; division A, title XII of the
American Recovery and Reinvestment Act of 2009; or section 1497 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act.
16.If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
remainder of the Act and the application of such provision to other persons or
circumstances shall not be affected thereby.
17.Buy American—use
of American iron, steel, and manufactured goods
(a)None of the funds
appropriated or otherwise made available by this Act may be used for a project
for the construction, alteration, maintenance, or repair of a public building
or public work unless all of the iron, steel, and manufactured goods used in
the project are produced in the United States.
(b)Subsection
(a) shall not apply in any case or category of cases in which the head of the
Federal department or agency involved finds that—
(1)applying
subsection (a) would be inconsistent with the public interest;
(2)iron, steel, and
the relevant manufactured goods are not produced in the United States in
sufficient and reasonably available quantities and of a satisfactory quality;
or
(3)inclusion of iron,
steel, and manufactured goods produced in the United States will increase the
cost of the overall project by more than 25 percent.
(c)If
the head of a Federal department or agency determines that it is necessary to
waive the application of subsection (a) based on a finding under subsection
(b), the head of the department or agency shall publish in the Federal Register
a detailed written justification as to why the provision is being
waived.
(d)Consistency with
international agreementsThis section shall be applied in a
manner consistent with United States obligations under international
agreements.
18.Wage rate and
employment protection requirements
(a)Notwithstanding any
other provision of law and in a manner consistent with other provisions in this
Act, all laborers and mechanics employed by contractors and subcontractors on
projects funded directly by or assisted in whole or in part by and through the
Federal Government pursuant to this Act shall be paid wages at rates not less
than those prevailing on projects of a character similar in the locality as
determined by the Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
(b)With respect to the labor standards specified in this
section, the Secretary of Labor shall have the authority and functions set
forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.)
and section 3145 of title 40, United States Code.
(c)Projects
as defined under title 49, United States Code, funded directly by or assisted
in whole or in part by and through the Federal Government pursuant to this Act
shall be subject to the requirements of section 5333(b) of title 49, United
States Code.