1.This Act may be cited as the
Project Rebuild
Act
.
2.
(a)There is appropriated, out of any money in the
Treasury not otherwise appropriated, $15,000,000,000, to remain available until
September 30, 2016, 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.
(b)Allocation of
appropriated amounts
(1)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
section referred to as the Secretary
). Of the amounts
appropriated, one-third shall be distributed competitively to eligible
entities.
(2)Formula to be
devised swiftlyThe funding formula required under paragraph (1)
shall be established and the Secretary shall announce formula funding
allocations, not later than 30 days after the date of the enactment of this
Act.
(3)The Secretary may establish a minimum grant size, and
the funding formula required under paragraph (1) shall ensure that any amounts
appropriated or otherwise made available under this section 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—
(A)the number and
percentage of home foreclosures in each State or unit of general local
government;
(B)the number and
percentage of homes in default or delinquency in each State or unit of general
local government; and
(C)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.
(4)
(A)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.
(B)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.
(C)The Secretary may establish a minimum grant size.
(D)Publication of
criteria; application due dateThe Secretary shall publish
competition criteria for any grants awarded under this section not later than
60 days after the appropriation of funds, and applications shall be due to the
Secretary within 120 days.
(c)
(1)Obligation and
expenditureThe Secretary shall obligate all formula funding
within 120 days of the date of the enactment of this Act and all competitive
grant funding within 180 days of such enactment date. Any eligible entity that
receives amounts pursuant to this section 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.
(2)
(A)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, reduce vacancy, or increase or stabilize
residential and commercial property values.
(B)Any
State or unit of general local government that receives formula amounts
pursuant to this section 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—
(i)with
the greatest percentage of home foreclosures;
(ii)identified as
likely to face a significant rise in the rate of residential or commercial
foreclosures; and
(iii)with a higher
than national average unemployment rate.
In
addition, such priority emphasis and consideration may be given to such areas
that have lost occupiable housing stock within the 3-year period ending with
the date of the enactment of this Act due to the effects of presidentially
declared disasters.(C)Each
grantee or eligible entity shall describe how its proposed use of funds will
leverage private funds.
(3)Amounts made available under this section may be used
to—
(A)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;
(B)purchase and
rehabilitate properties that have been abandoned or foreclosed upon, in order
to sell, rent, or redevelop such properties;
(C)establish and
operate land banks for properties that have been abandoned, demolished,
severely damaged by presidentially declared disasters, or foreclosed
upon;
(D)demolish blighted
structures;
(E)redevelop
abandoned, foreclosed, demolished, or vacant properties; and
(F)engage in other
activities, as determined by the Secretary through notice, that are consistent
with the goals of creating jobs, stabilizing neighborhoods, reducing vacancy,
increasing or stabilizing residential and commercial property values, and
providing assistance to homeowners and landlords recovering after
presidentially declared disasters.
(d)
(1)Any purchase of a property under this section shall be
at a price not to exceed its current market value, taking into account its
current condition.
(2)Any
rehabilitation of an eligible property under this section 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.
(3)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.
(4)On demolition of
public housingPublic housing, as defined in section 3(b)(1) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(1)), may not be
demolished with funds under this section.
(5)No more than 10 percent of any grant made under this
section may be used for demolition activities unless the Secretary determines
that such use represents an appropriate response to local market conditions or
is necessary as a result of a presidentially declared disaster.
(6)On use of funds
for non-residential propertyNo more than 30 percent of any grant
made under this section may be used for eligible activities under subparagraphs
(A), (B), and (E) of subsection (c)(3) 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.
(7)Each formula and competitive grantee is required to ensure
that all use of formula or competitive funds by the grantee are properly
underwritten and reviewed in order to prevent fraud, waste, and abuse.
(e)
(1)Except as otherwise provided by this section, amounts
appropriated, revenues generated, or amounts otherwise made available to
eligible entities under this section 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.).
(2)No matching funds shall be required in order for an
eligible entity to receive any amounts under this section.
(3)An eligible entity receiving a grant under this
section shall comply with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd and 23rd
provisos in the second undesignated paragraph under the heading
Community Planning and Development—Community Development Fund
in
title XII of division A of the 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).
(4)An eligible entity receiving a grant under this section
shall comply with section 1497(a)(8) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Public Law 111–203, 124 Stat. 2210).
(5)Section 1605 of
title XVI of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5, 123 Stat. 303) shall apply to amounts appropriated, revenues
generated, and amounts otherwise made available to eligible entities under this
section.
(f)Authority To
specify alternative requirements
(1)In administering the program under this section, the
Secretary may specify alternative requirements to any provision under title I
of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.)
or under title I of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12701 et seq.) (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
section.
(2)The
Secretary shall provide written notice of intent to the public via Internet to
exercise the authority to specify alternative requirements under paragraph
(1).
(3)Low and moderate
income requirement
(A)Notwithstanding the authority of the Secretary under
paragraph (1)—
(i)all
of the formula and competitive grantee funds appropriated or otherwise made
available under this section shall be used with respect to individuals and
families whose income does not exceed 120 percent of area median income;
and
(ii)not
less than 25 percent of the formula and competitive grantee funds appropriated
or otherwise made available under this section 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.
(B)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 section remain affordable to individuals or families
described in subparagraph (A).
(g)Nationwide
distribution of resourcesNotwithstanding any other provision of
this section, each State shall receive not less than $20,000,000 of formula
funds.
(h)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 section
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.
(i)Limitation on
distribution of funds
(1)None of the funds made available under this section shall
be distributed to—
(A)an organization
which has been indicted for a violation under Federal law relating to an
election for Federal office; or
(B)an organization
which employs applicable individuals.
(2)Applicable
individuals definedIn this section, the term applicable
individual means an individual who—
(A)is—
(i)employed by the
organization in a permanent or temporary capacity;
(ii)contracted or
retained by the organization; or
(iii)acting on behalf
of, or with the express or apparent authority of, the organization; and
(B)has been indicted
for a violation under Federal law relating to an election for Federal
office.
(j)Rental housing
preferencesEach State and local government receiving formula
amounts shall establish procedures to create preferences for the development of
affordable rental housing.
(k)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.
(l)Program support
and capacity buildingThe Secretary may use an overall amount 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. In addition—
(1)funds set aside
for the purposes of this subsection shall remain available until September 30,
2016;
(2)any funds made
available under this subsection and used by the Secretary for personnel,
training, or other administrative expenses related to administering funding
under this subsection shall be transferred to Program Office Salaries
and Expenses, Community Planning and Development
;
(3)any funds made
available under this subsection and used by the Secretary for technology shall
be transferred to Working Capital Fund
; and
(4)an amount up to
0.10 percent of the funds appropriated shall be transferred to the Office of
Inspector General, Department of Housing and Urban Development and such overall
amount described in this subsection shall be reduced by the amount specified in
this paragraph.
(m)Enforcement and
prevention of fraud and abuseThe Secretary shall establish and
implement procedures to prevent fraud and abuse of funds under this section,
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.
(n)Policies and
procedures for grantsThe Secretary of Housing and Urban
Development shall to the extent feasible conform policies and procedures for
grants made under this section to the policies and procedures already in place
for the grants made under section 2301 of the Housing and Economic Recovery Act
of 2008 (Public Law 110–289, 122 Stat. 2850); title XII of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111–5, 123 Stat.
217); or section 1497 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Public Law 111–203, 124 Stat. 2209).
3.Wage rate and
employment protection requirementsAmounts appropriated, revenues generated,
and amounts otherwise made available under this Act shall be subject to the
requirements of section 110 of the Housing and Community Development Act of
1974 (42 U.S.C. 5310) or to a waiver thereof under section 107(e)(2) of such
Act (42 U.S.C. 5307(e)(2)).