[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6644 Enrolled Bill (ENR)]
H.R.6644
One Hundred Nineteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Saturday,
the third day of January, two thousand and twenty-six
An Act
To increase the supply of housing in America, and for other purposes.
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 ``21st Century ROAD
to Housing Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--OPPORTUNITIES FOR HOUSING
Sec. 101. Reforms to housing counseling and financial literacy programs.
Sec. 102. Federal guidelines for point-access block buildings.
Sec. 103. Exemption on construction or modification of residential
housing located on an infill site.
Sec. 104. Database of publicly owned land.
Sec. 105. FHA Small-Dollar Mortgages.
Sec. 106. Temperature Sensor Pilot Program.
Sec. 107. Housing supply frameworks.
TITLE II--BUILDING MORE IN AMERICA
Sec. 201. Increasing housing in opportunity zones.
Sec. 202. Whole-Home Repairs Act.
Sec. 203. Community Investment and Prosperity Act.
Sec. 204. Addition of affordable housing construction as an eligible
activity.
Sec. 205. Better Use of Intergovernmental and Local Development (BUILD)
Housing Act.
Sec. 206. Unlocking Housing Supply Through Streamlined and Modernized
Reviews Act.
Sec. 207. Grants for planning and implementation associated with
affordable housing.
Sec. 208. Innovation Fund.
Sec. 209. Accelerating Home Building Act.
Sec. 210. Revitalizing Empty Structures Into Desirable Environments
(RESIDE) Act.
Sec. 211. Housing Affordability Act.
Sec. 212. Rental Assistance Demonstration Program.
Sec. 213. Build Now Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
Sec. 301. Housing Supply Expansion Act.
Sec. 302. Modular Housing Production Act.
Sec. 303. Property Improvement and Manufactured Housing Loan
Modernization Act.
Sec. 304. PRICE Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
Sec. 401. Creating incentives for small-dollar loan originators.
Sec. 402. Small-dollar mortgage points and fees.
Sec. 403. Appraisal Industry Improvement Act.
Sec. 404. Helping More Families Save Act.
Sec. 405. Choice in Affordable Housing Act.
TITLE V--PROGRAM REFORM
Sec. 501. HOME Investment Partnerships Reauthorization and Reform Act.
Sec. 502. Rural Housing Service Reform Act.
Sec. 503. Incentivizing local solutions to homelessness.
Sec. 504. Reforming Disaster Recovery Act.
Sec. 505. New Moving to Work cohort.
TITLE VI--VETERANS AND HOUSING
Sec. 601. Military Service Question.
Sec. 602. Housing Unhoused Disabled Veterans Act.
Sec. 603. Veterans Affairs Loan Informed Disclosure (VALID) Act.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
Sec. 701. Requiring annual testimony and oversight from housing
regulators.
Sec. 702. FHA reporting requirements on safety and soundness.
Sec. 703. United States Interagency Council on Homelessness oversight.
Sec. 704. Appraisal Modernization Act.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
Sec. 801. HUD-USDA-VA Interagency Coordination Act.
Sec. 802. Streamlining Rural Housing Act.
Sec. 803. Improving self-sufficiency of families in HUD-subsidized
housing.
Sec. 804. GAO studies.
Sec. 805. Improving public housing agency accountability.
TITLE IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
Sec. 901. Community bank deposit access.
Sec. 902. Keeping deposits local.
Sec. 903. Tailored regulatory updates for supervisory testing.
Sec. 904. Credit union board modernization.
Sec. 905. Systemic risk authority transparency.
Sec. 906. Advancing the mentor-protege program for small financial
institutions.
Sec. 907. American access to banking.
Sec. 908. Promoting new bank formation.
Sec. 909. Rural depositories revitalization study.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
Sec. 1001. Homes are for people, not corporations.
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
Sec. 1101. Central bank digital currency.
TITLE XII--MISCELLANEOUS
Sec. 1201. Severability.
Sec. 1202. No additional funds authorized.
TITLE I--OPPORTUNITIES FOR HOUSING
SEC. 101. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
Section 106 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x) is amended--
(1) in subsection (a)(4)(C), by striking ``adequate
distribution'' and all that follows through ``foreclosure rates''
and inserting ``that the recipients are geographically diverse and
include organizations that serve urban or rural areas'';
(2) in subsection (e), by adding at the end the following:
``(6) Reviews.--The Secretary--
``(A) may conduct periodic reviews; and
``(B) shall conduct performance reviews of all
organizations receiving assistance under this section that--
``(i) consist of a review of the organization's
compliance with all program requirements; and
``(ii) may take into account the organization's
aggregate counselor performance under paragraph (7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this paragraph,
the term `covered mortgage loan' means any loan which is
secured by a first or subordinate lien on residential real
property (including individual units of condominiums and
housing cooperatives) designed principally for the occupancy of
between 1 and 4 families that is--
``(i) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C. 1707
et seq.); or
``(ii) guaranteed under section 184 or 184A of the
Housing and Community Development Act of 1992 (12 U.S.C.
1715z-13a, 1715z-13b).
``(B) Comparison.--For each counselor employed by an
organization receiving assistance under this section for
prepurchase housing counseling, the Secretary may consider the
performance of the counselor compared to the default rate of
all counseled borrowers of a covered mortgage loan in
comparable markets and such other factors as the Secretary
determines appropriate to further the purposes of this section.
``(8) Certification.--If, based on the comparison required
under paragraph (7)(B), the Secretary determines that a counselor
lacks competence to provide counseling in the areas described in
subsection (e)(2) and such action will not create a significant
loss of capacity for housing counseling services in the service
area, the Secretary may--
``(A) require continued education coupled with successful
completion of a probationary period;
``(B) require retesting if the counselor continues to
demonstrate a lack of competence under paragraph (7)(B); and
``(C) suspend an individual certification if a counselor
fails to demonstrate competence after not fewer than 2
retesting opportunities under subparagraph (B).'';
(3) in subsection (i)--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following:
``(3) Termination of assistance.--
``(A) In general.--The Secretary may deny renewal of
covered assistance to an organization or entity receiving
covered assistance if the Secretary determines that the
organization or entity, or the individual through which the
organization or entity provides counseling, is not in
compliance with program requirements--
``(i) based on the performance review described in
subsection (e)(6); and
``(ii) in accordance with regulations issued by the
Secretary.
``(B) Notice.--The Secretary shall give an organization or
entity receiving covered assistance not less than 60 days prior
written notice of any denial of renewal under this paragraph,
and the determination of renewal shall not be finalized until
the end of that notice period.
``(C) Informal conference.--If requested in writing by the
organization or entity within the notice period described in
subparagraph (B), the organization or entity shall be entitled
to an informal conference with the Deputy Assistant Secretary
of Housing Counseling on behalf of the Secretary at which the
organization or entity may present for consideration specific
factors that the organization or entity believes were beyond
the control of the organization or entity and that caused the
failure to comply with program requirements, such as a lack of
lender or servicer coordination or communication with housing
counseling agencies and individual counselors.''; and
(4) by adding at the end the following:
``(j) Offering Foreclosure Mitigation Counseling.--
``(1) Covered mortgage loan defined.--In this subsection, the
term `covered mortgage loan' means any loan which is secured by a
first or subordinate lien on residential real property (including
individual units of condominiums and housing cooperatives) or stock
or membership in a cooperative ownership housing corporation
designed principally for the occupancy of between 1 and 4 families
that is--
``(A) insured by the Federal Housing Administration under
title II of the National Housing Act (12 U.S.C. 1707 et seq.);
``(B) guaranteed under section 184 or 184A of the Housing
and Community Development Act of 1992 (12 U.S.C. 1715z-13a,
1715z-13b);
``(C) made, guaranteed, or insured by the Department of
Veterans Affairs; or
``(D) made, guaranteed, or insured by the Department of
Agriculture.
``(2) Opportunity for borrowers.--A borrower with respect to a
covered mortgage loan who is 30 days or more delinquent on payments
for the covered mortgage loan shall be given an opportunity to
participate in available housing counseling.
``(3) Cost.--If the requirements of sections 202(a)(3) and
205(f) of the National Housing Act (12 U.S.C. 1708(a)(3), 1711(f))
are met, the fair market rate cost of counseling for delinquent
borrowers described in paragraph (2) with respect to a covered
mortgage loan described in paragraph (1)(A) shall be paid for by
the Mutual Mortgage Insurance Fund, as authorized under section
203(r)(4) of the National Housing Act (12 U.S.C. 1709(r)(4)).''.
SEC. 102. FEDERAL GUIDELINES FOR POINT-ACCESS BLOCK BUILDINGS.
(a) In General.--Not later than 18 months after the date of
enactment of this section, the Secretary of Housing and Urban
Development shall issue guidelines to provide States, territories,
Tribes, and localities with model code language, best practices, and
technical guidance that could be used to facilitate the permitting of
point-access block residential buildings.
(b) Contents.--When developing the guidelines under subsection (a),
the Secretary of Housing and Urban Development shall consider--
(1) fire safety considerations, including sprinkler coverage,
smoke detection, ventilation, and building egress performance;
(2) construction costs and potential impacts on housing
affordability, including the potential for increasing housing
supply in high-cost jurisdictions;
(3) flexibility for diverse consumer needs, including family
sizes, unit configurations, and accessibility;
(4) examples of single-stair codes adopted or considered by
States and cities in the United States;
(5) examples of single-stair codes used in relevant
international standards;
(6) research and model language relating to single-stair codes
produced by organizations that focus on point-access block building
design and building-code reform;
(7) consulting with experts, including developers, architects,
fire marshals, researchers, economists, housing authorities, and
officials in States that have enacted or piloted single-stair
codes; and
(8) alternative methods of safety compliance, including options
that utilize additional passive or active safety features.
(c) Coordination With the International Code Council.--The
Secretary of Housing and Urban Development shall coordinate with the
International Code Council to encourage the International Code Council
to incorporate provisions about point-access block buildings into the
International Building Code.
(d) Grants.--
(1) In general.--The Secretary of Housing and Urban Development
may establish a program to award competitive grants to eligible
entities to implement pilot projects that evaluate, demonstrate, or
validate the safety, feasibility, or cost-effectiveness of point-
access block residential buildings.
(2) Sunset.--The program established under paragraph (1) shall
terminate on the date that is 7 years after the date of enactment
of this subsection.
(e) Treatment of Projects.--Projects assisted under this section
shall be treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(f) Rule of Construction.--Nothing in this section may be construed
to preempt a State or local building code.
(g) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
State, unit of local government, Tribal Government, public housing
agency, nonprofit housing organization, community development
organization, private developer, construction firm, qualified
design firm, engineering firm, academic institution, research
institution, or any partnership or consortium comprised of 2 or
more such types of entities.
(2) Point-access block building.--The term ``point-access block
building'' means a Group R-2 occupancy residential structure, as
such term is defined by the International Building Code, in which a
single internal stairway provides access and egress for all
dwelling units in a building that is not greater than 6 stories in
height.
SEC. 103. EXEMPTION ON CONSTRUCTION OR MODIFICATION OF RESIDENTIAL
HOUSING LOCATED ON AN INFILL SITE.
(a) Exemption.--In providing assistance under section 501, 502,
504, 515, 533, or 538 of the Housing Act of 1949 (42 U.S.C. 1471, 1472,
1474, 1485, 1490m, or 1490p-2) for the construction or modification of
residential housing located on an infill site, the Secretary of
Agriculture shall not be required to carry out any study or report on
the environmental effects of such assistance.
(b) Report.--Not later than the date that is 5 years after the date
of enactment of this section, the Secretary of Agriculture shall
submit, to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, a report that--
(1) determines whether the implementation of this section--
(A) reduced the amount of time it takes to review an
application for assistance under the sections of the Housing
Act of 1949 identified in subsection (a); and
(B) reduced the administrative cost of providing such
assistance;
(2) describes how the implementation of this section affects
the affordable housing sector in rural America; and
(3) includes any legislative recommendations from the Secretary
of Agriculture.
(c) Definitions.--In this section:
(1) Greenfield.--The term ``greenfield'' means a site that has
not been developed, including a woodland, farmland, and an open
field.
(2) Infill site.--The term ``infill site''--
(A) means a site that is served by existing infrastructure,
including water lines, sewer lines, and roads; and
(B) does not include--
(i) a site that is served by existing infrastructure
that only consists of a road;
(ii) a site within a census tract designated as very
high or relatively high risk for wildfire, coastal
flooding, and riverine flooding under the National Risk
Index of the Federal Emergency Management Agency pursuant
to section 206 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5136); and
(iii) a greenfield.
SEC. 104. DATABASE OF PUBLICLY OWNED LAND.
(a) In General.--Section 104(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5304(b)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) the grantee maintains, on a publicly accessible website,
a searchable database that identifies all parcels of undeveloped
land owned by the grantee.''.
(b) Eligible Activity.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
(1) in paragraph (25), by striking ``and'' at the end;
(2) in paragraph (26), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(27) the creation and maintenance of a database of land as
required under section 104(b)(7).''.
(c) Effective Date.--The amendment made by this subsection shall
take effect on October 1, 2026.
SEC. 105. FHA SMALL-DOLLAR MORTGAGES.
(a) In General.--Not later than 1 year after the date of the
enactment of this section, the Secretary of Housing and Urban
Development, acting through the Federal Housing Commissioner, may
establish a pilot program to increase access to small-dollar mortgages
for mortgagors, which may include--
(1) authorizing direct payments to mortgagees to incentivize
the origination of small-dollar mortgages;
(2) adjusting terms and costs imposed by the Federal Housing
Administration with respect to small-dollar mortgages;
(3) providing direct grants for mortgagors who obtain small-
dollar mortgages to cover costs associated with--
(A) down payments;
(B) closing costs;
(C) appraisals; and
(D) title insurance;
(4) conducting outreach to potential mortgagors about the
availability of small-dollar mortgages; and
(5) providing technical assistance for mortgagees that
originate small-dollar mortgages.
(b) Report.--Beginning not later than 1 year after the
establishment of the pilot program under subsection (a) and ending 1
year after the sunset of the pilot program, the Federal Housing
Commissioner shall submit to Congress an annual report that--
(1) tracks and evaluates the outcomes of small-dollar mortgages
originated by mortgagees as a result of support provided under
subsection (a);
(2) analyzes risks of the pilot program to the solvency of the
Mutual Mortgage Insurance Fund;
(3) includes data with respect to--
(A) the number of small-dollar mortgages originated in the
10-year period preceding the date of enactment of this section,
including small-dollar mortgages insured or guaranteed by the
Federal Government and small-dollar mortgages not insured by
the Federal Government;
(B) the original principal balance of each small-dollar
mortgage identified under subparagraph (A);
(C) demographic information about the mortgagors associated
with each such small-dollar mortgages; and
(D) the number and type of mortgagees that offer small-
dollar mortgages;
(4) provides a description of the fixed costs that are
associated with mortgages and the impact of such costs on the
ability of lenders to earn a market rate return on small-dollar
mortgages; and
(5) includes analysis, by regions of the United States,
including rural regions, that identifies regions with the greatest
need for, and the highest likelihood of, the origination of small-
dollar mortgages and regions that could benefit the most from
increased availability of small-dollar mortgages.
(c) Sunset.--The pilot program established under subsection (a)
shall terminate on the date that is 4 years after the date on which the
pilot program is established under subsection (a).
(d) Expiration of Authority.--After the expiration of the 3-year
period beginning on the date of enactment of this section, neither the
Federal Housing Commissioner nor the Secretary of Housing and Urban
Development may newly establish a pilot program to increase access to
small-dollar mortgages for mortgagors.
(e) Small-dollar Mortgage Defined.--The term ``small-dollar
mortgage'' means a mortgage that--
(1) has an original principal balance of $100,000 or less; and
(2) is secured by a 1- to 4-unit property that is the principal
residence of the mortgagor.
SEC. 106. TEMPERATURE SENSOR PILOT PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
shall establish a temperature sensor pilot program to provide grants to
public housing agencies and owners of covered federally assisted rental
dwelling units to acquire, install, and test the efficacy of approved
temperature sensors in residential dwelling units to ensure such units
remain in compliance with temperature requirements.
(b) Eligibility.--
(1) In general.--The Secretary of Housing and Urban Development
shall, not later than 180 days after the date of enactment of this
Act, establish eligibility criteria for public housing agencies and
owners of covered federally assisted rental dwelling units to
participate in the pilot program established pursuant to subsection
(a).
(2) Criteria.--In establishing the eligibility criteria
described in paragraph (1), the Secretary shall ensure--
(A) the pilot program includes a diverse range of
participants that represent different geographic regions,
climate regions, unit sizes, and types of housing; and
(B) that the functionality of an approved temperature
sensor will be installed and tested using amounts awarded under
this section, including internet connectivity requirements.
(c) Installation.--Each public housing agency or owner of a covered
federally assisted rental dwelling unit that acquires 1 or more
approved temperature sensors under this section shall, after receiving
written permission from the resident of a dwelling unit, install such
temperature sensor and monitor the data from such temperature sensor.
(d) Collection of Complaint Records.--
(1) In general.--Each public housing agency or owner of a
covered federally assisted rental dwelling unit that installs 1 or
more approved temperature sensors under this section shall collect
and retain information about temperature-related complaints and
temperature-related violations.
(2) Definitions.--The Secretary shall, not later than 180 days
after the date of enactment of this Act, define the terms
``temperature-related complaints'' and ``temperature-related
violations'' for the purposes of this subsection.
(e) Data Collection.--
(1) In general.--Data collected from temperature sensors
acquired and installed by public housing agencies and owners of
covered federally assisted rental dwelling units under this section
shall be retained until the Secretary of Housing and Urban
Development notifies the public housing agency or owner that the
pilot program and the evaluation of the pilot program are complete.
(2) Personally identifiable information.--The Secretary of
Housing and Urban Development shall, not later than 180 days after
the date of enactment of this Act, establish standards for the
protection of personally identifiably information collected during
the pilot program by public housing agencies, owners of federally
assisted rental dwelling units, and the Secretary.
(f) Pilot Program Evaluation.--
(1) Interim evaluation.--Not later than 12 months after the
establishment of the pilot program under this section, the
Secretary of Housing and Urban Development shall publicly publish
and submit to Congress a report that--
(A) examines the number of temperature-related complaints
and temperature-related violations in federally assisted rental
dwelling units with temperature sensors, disaggregated by
temperature sensor technology and climate region--
(i) that occurred before the installation of such
sensor, if known; and
(ii) that occurred after the installation of such
sensor; and
(B) identifies any barriers to full utility of temperature
sensor capabilities, including broadband internet access and
tenant participation.
(2) Final evaluation.--Not later than 36 months after the
conclusion of the pilot program established by the Secretary of
Housing and Urban Development under this section, the Secretary
shall publicly publish and submit to Congress a report that--
(A) examines the number of temperature-related complaints
and temperature-related violations in federally assisted rental
dwelling units with temperature sensors, disaggregated by
temperature sensor technology and climate region--
(i) that occurred before the installation of such
sensor; and
(ii) that occurred after the installation of such
sensor;
(B) identifies any barriers to full utility of temperature
sensor capabilities, including broadband internet access and
tenant participation; and
(C) compares the utility of various temperature sensor
technologies based on--
(i) climate zones;
(ii) cost;
(iii) features; and
(iv) any other factors identified by the Secretary.
(g) Treatment of Projects.--Projects assisted under this section
shall be treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(h) Sunset.--The pilot program established under this section shall
terminate on the date that is 3 years after the date of enactment of
this section.
(i) Definitions.--In this section:
(1) Approved temperature sensor.--The term ``approved
temperature sensor'' means an internet capable temperature
reporting device able to measure ambient air temperature to the
tenth degree Fahrenheit and Celsius selected from a list of such
devices approved in advance by the Secretary of Housing and Urban
Development.
(2) Assistance.--The term ``assistance''--
(A) means any grant, loan, subsidy, contract, cooperative
agreement, or other form of financial assistance; and
(B) does not include the insurance or guarantee of a loan,
mortgage, or pool of loans or mortgages.
(3) Covered federally assisted rental dwelling unit.--The term
``covered federally assisted rental dwelling unit'' means a
residential dwelling unit that is made available for rental and for
which assistance is provided, or that is part of a housing project
for which assistance is provided, under--
(A) the program for project-based rental assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f);
(B) the public housing program under the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.);
(C) the program for supportive housing for the elderly
under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
or
(D) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013).
(4) Owner.--The term ``owner'' means--
(A) with respect to the program for project-based rental
assistance under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), any private person or entity, including
a cooperative, an agency of the Federal Government, or a public
housing agency, having the legal right to lease or sublease
dwelling units;
(B) with respect to the public housing program under the
United States Housing Act of 1937 (42 U.S.C. et seq.), a public
housing agency or an owner entity, as those terms are defined
in section 905.108 of title 24, Code of Federal Regulations, of
public housing units;
(C) with respect to the program for supportive housing for
the elderly under section 202 of the Housing Act of 1959 (12
U.S.C. 1701q), a private nonprofit organization, as defined
under subsection (k)(4) of that section; and
(D) with respect to the program for supportive housing for
persons with disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013), a
private nonprofit organization, as defined under subsection
(k)(6) of that section.
SEC. 107. HOUSING SUPPLY FRAMEWORKS.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing'' means
housing for which the monthly payment is not more than 30 percent
of the monthly income of the household.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary for Policy Development and Research
of the Department of Housing and Urban Development.
(3) Local zoning framework.--The term ``local zoning
framework'' means the local zoning codes and other ordinances,
procedures, and policies governing zoning and land-use at the local
level.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(5) State zoning framework.--The term ``State zoning
framework'' means the State legislation or State agency and
department procedures, or such legislation or procedures in an
insular area of the United States, enabling local planning and
zoning authorities and establishing and guiding related policies
and programs.
(b) Guidelines on State and Local Zoning Frameworks.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Assistant Secretary shall publish
documents outlining guidelines and best practices to support
production of adequate housing to meet the needs of communities and
provide housing opportunities for individuals at every income level
across communities with respect to--
(A) State zoning frameworks; and
(B) local zoning frameworks.
(2) Consultation; public comment.--During the 2-year period
beginning on the date of enactment of this Act, in developing the
guidelines and best practices required under paragraph (1), the
Assistant Secretary shall--
(A) publish draft guidelines and best practices in the
Federal Register for public comment; and
(B) establish a task force for the purpose of providing
consultation to draft the guidelines and best practices
published under subparagraph (A), the members of which shall
include--
(i) urban planners and architects;
(ii) housing developers, including affordable and
market-rate housing developers, manufactured housing
developers, cooperative housing developers, and other
business interests;
(iii) community engagement experts and community
members impacted by zoning decisions;
(iv) public housing agencies and transit authorities;
(v) members of local zoning and planning boards and
local and regional transportation planning organizations;
(vi) State officials responsible for housing or land
use, including members of State zoning boards of appeals;
(vii) academic researchers; and
(viii) home builders.
(3) Contents.--The guidelines and best practices required under
paragraph (1) shall--
(A) with respect to State zoning frameworks, outline
potential models for updated State enabling legislation or
State agency and department procedures;
(B) include recommendations regarding--
(i) the reduction or elimination of parking minimums;
(ii) the increase in maximum floor area ratio
requirements and maximum building heights and the reduction
in minimum lot sizes and set-back requirements;
(iii) the elimination of restrictions against accessory
dwelling units;
(iv) increasing by-right uses, including duplex,
triplex, or quadplex buildings, across cities or
metropolitan areas;
(v) mechanisms, including proximity to transit, to
determine the appropriate scope for rezoning and ensure
development that does not disproportionately burden
residents of economically distressed areas;
(vi) provisions regarding review of by-right
development proposals to streamline review and reduce
uncertainty, including--
(I) nondiscretionary, ministerial review; and
(II) entitlement and design review processes;
(vii) the reduction of obstacles, regulatory or
otherwise, to a range of housing types at all levels of
affordability, including manufactured and modular housing;
(viii) State model zoning regulations for directing
local reforms, including mechanisms to encourage adoption;
(ix) provisions to encourage transit-oriented
development, including increased permissible units per
structure and reduced minimum lot sizes near existing or
planned public transit stations;
(x) potential reforms to strengthen the public
engagement process;
(xi) reforms to protest petition statutes;
(xii) the standardization, reduction, or elimination of
impact fees;
(xiii) cost-effective and appropriate building codes;
(xiv) models for community benefit agreements;
(xv) mechanisms to preserve affordability, limit
disruption of low-income communities, and prevent
displacement of existing residents;
(xvi) with respect to State zoning frameworks--
(I) State model codes for directing local reforms,
including mechanisms to encourage adoption;
(II) a model for a State zoning appeals process,
which would--
(aa) create a process for developers or
builders requesting a variance, conditional use,
special permit, zoning district change, similar
discretionary permit, or otherwise petitioning a
local zoning or planning board for a project,
including a State-defined amount of affordable
housing to appeal a rejection to a State body or
regional body empowered by the State; and
(bb) establish qualifications for communities
to be exempted from the appeals process based on
their available stock of affordable housing; and
(III) streamlining of State environmental review
policies;
(xvii) with respect to local zoning frameworks--
(I) the simplification and standardization of
existing zoning codes;
(II) maximum review timelines;
(III) best practices for the disposition of land
owned by local governments for affordable housing
development;
(IV) differentiations between best practices for
rural, suburban, and urban communities, and communities
with different levels of density or population
distribution; and
(V) streamlining of local environmental review
policies; and
(xviii) other land use measures that promote access to
new housing opportunities identified by the Secretary; and
(C) consider--
(i) the effects of adopting any recommendation on
eligibility for Federal discretionary grants and tax
credits for the purpose of housing or community
development;
(ii) coordination between infrastructure investments
and housing planning;
(iii) local housing needs, including ways to set and
measure housing goals and targets;
(iv) a range of affordability for rental units, with a
prioritization of units attainable to extremely low-, low-,
and moderate-income residents;
(v) a range of affordability for homeownership;
(vi) accountability measures;
(vii) the long-term cost to residents and businesses if
more housing is not constructed;
(viii) barriers to individuals seeking to access
affordable housing in growing communities and communities
with economic opportunity;
(ix) with respect to State zoning frameworks--
(I) distinctions between States providing
constitutional or statutory home rule authority to
municipalities and States operating under the Dillon
Rule, as articulated in Hunter v. Pittsburgh, 207 U.S.
161 (1907); and
(II) Statewide mechanisms to preserve existing
affordability over the long term, including support for
land banks and community land trusts;
(x) public comments elicited under paragraph (2)(A);
and
(xi) other considerations, as identified by the
Assistant Secretary.
(c) Abolishment of the Regulatory Barriers Clearinghouse.--
(1) In general.--The Regulatory Barriers Clearinghouse
established pursuant to section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is abolished.
(2) Repeal.--Section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is repealed.
(d) Reporting.--Not later than 5 years after the date on which the
Assistant Secretary publishes the final guidelines and best practices
for State and local zoning frameworks under this section, the Assistant
Secretary shall submit to Congress a report describing--
(1) the States that have adopted recommendations from the
guidelines and best practices, pursuant to subsection (b);
(2) a summary of the localities that have adopted
recommendations from the guidelines and best practices, pursuant to
subsection (b);
(3) a list of States that adopted a State zoning framework;
(4) a summary of the modifications that each State has made in
their State zoning framework;
(5) a general summary of the types of updates localities have
made to their local zoning framework;
(6) with respect to the States that have adopted a State zoning
framework or recommendations from the guidelines and best
practices, the effect of such adoptions; and
(7) a summary of any recommendations that were routinely not
adopted by States or by localities.
(e) Rule of Construction.--Nothing in this section may be construed
to permit the Department of Housing and Urban Development to take an
adverse action against or fail to provide otherwise offered actions or
services for any State or locality if the State or locality declines to
adopt a guideline or best practice under subsection (b).
TITLE II--BUILDING MORE IN AMERICA
SEC. 201. INCREASING HOUSING IN OPPORTUNITY ZONES.
(a) Covered Grant Defined.--In this section, the term ``covered
grant'' means any competitive grant relating to the construction,
modification, rehabilitation, or preservation of housing, as determined
by the Secretary of Housing and Urban Development.
(b) Priority.--When awarding a covered grant, the Secretary of
Housing and Urban Development may give additional weight to applicants
with proposed activities or projects that are located in or
substantially and directly benefit a community designated as a
qualified opportunity zone under section 1400Z-1 of the Internal
Revenue Code of 1986.
SEC. 202. WHOLE-HOME REPAIRS ACT.
(a) Definitions.--In this section:
(1) Affordable unit.--The term ``affordable unit'' means a unit
for which the monthly rental payment is not more than 30 percent of
the gross income of an individual earning at or below 80 percent of
the area median income, as defined by the Secretary.
(2) Assisted unit.--The term ``assisted unit'' means a unit
that undergoes repair or rehabilitation work through a whole-home
repairs program administered by an implementing organization under
this section.
(3) Eligible home-owner.--The term ``eligible home-owner''
means a home-owner--
(A) with a household income that--
(i) is not more than 80 percent of the area median
income; or
(ii) meets the income eligibility requirements for
receiving assistance or benefits under a specified program,
as defined in paragraph (11); and
(B) who is--
(i) an owner of record as evidenced by a publicly
recorded deed, or other document recorded by the Bureau of
Indian Affairs, and occupies the home on which repairs are
to be conducted as their principal residence;
(ii) an owner-occupant of the manufactured home on
which repairs are to be conducted;
(iii) an owner-occupant of the cooperative housing unit
on which repairs are to be conducted; or
(iv) an owner who can demonstrate an ownership interest
in the property, or trust land leasehold, on which repairs
are to be conducted, including a person who has inherited
an interest in that property.
(4) Eligible landlord.--The term ``eligible landlord'' means an
individual--
(A) who owns, as determined by the relevant implementing
organization, fewer than 10 eligible rental properties, with a
majority of affordable units and not more than 25 total units,
operated as primary residences in which a majority ownership
interest is held by the individual, the spouse of the
individual, or the dependent children of the individual, or any
closely held legal entity controlled by the individual, the
spouse of the individual, or the dependent children of the
individual, either individually or collectively; and
(B) who agrees to the provisions described in subsection
(b)(3).
(5) Eligible rental property.--The term ``eligible rental
property'' means a residential property that--
(A) is leased, or offered exclusively for lease, as a
primary residence by an eligible landlord; and
(B) includes affordable units.
(6) Forgivable loan.--The term ``forgivable loan'' means a
loan--
(A) made to an eligible landlord;
(B) that is secured by a lien recorded against a
residential property; and
(C) that may be forgiven by the implementing organization
not later than the date that is 3 years after the completion of
the repairs if the eligible landlord has maintained compliance
with the loan agreement described in subsection (b)(3).
(7) Implementing organization.--The term ``implementing
organization''--
(A) means a unit of general local government or a State
that--
(i) will administer a whole-home repairs program
through an agency, department, or other entity; or
(ii) enters into agreements with 1 or more local
governments, Indian tribes, municipal authorities, other
governmental authorities, including a tribally designated
housing entity, or qualified nonprofit organizations, to
administer a whole-home repairs program as a subrecipient;
and
(B) does not include a redundant entity in a jurisdiction
already served by a grantee under subsection (b).
(8) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).
(9) Qualified nonprofit.--The term ``qualified nonprofit''
means a nonprofit organization that--
(A) has received funding, as a recipient or subrecipient,
through--
(i) the Community Development Block Grant program under
title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.);
(ii) the HOME Investment Partnerships program under
subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.);
(iii) the Lead-Based Paint Hazard Reduction grant
program under section 1011 of the Residential Lead-Based
Paint Hazard Reduction Act of 1992 (42 U.S.C. 4852), a
grant under the Healthy Homes Initiative administered by
the Secretary pursuant to sections 501 and 502 of the
Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-
1, 1701z-2), or a grant under the Older Adult Home
Modification Grants Program authorized under the
Consolidated Appropriations Act, 2024 (Public Law 118-42),
or any successor Act, to make safety and functional home
modification repairs and renovations to meet the needs of
low-income seniors to enable them to remain in their
primary residence;
(iv) the Self-Help and Assisted Homeownership
Opportunity program authorized under section 11 of the
Housing Opportunity Program Extension Act of 1996 (42
U.S.C. 12805 note);
(v) a rural housing program under title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.); or
(vi) the Neighborhood Reinvestment Corporation
established under the Neighborhood Reinvestment Corporation
Act (42 U.S.C. 8101 et seq.);
(B) has coordinated, performed, or otherwise been engaged
in weatherization, lead remediation, or home-repair work for
not less than 2 years;
(C) has been certified by the Environmental Protection
Agency, or by a State authorized by the Environmental
Protection Agency to administer a certification program, as--
(i) eligible to carry out activities under the lead
renovation, repair, and painting program under section
402(c) or 404 of the Toxic Substances Control Act (15
U.S.C. 2682(c), 2684); or
(ii) a Home Certification Organization under the Energy
Star program established by section 324A of the Energy
Policy and Conservation Act (42 U.S.C. 6294a) or the
WaterSense program under section 324B of that Act (42
U.S.C. 6294b), or recognized or otherwise approved by the
Environmental Protection Agency as a Home Certification
Organization under either of those programs; or
(D) is a community development financial institution, as
defined in section 103 of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4702).
(10) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(11) Specified program.--For purposes of paragraph (3)(A)(ii),
the term ``specified program'' means any of the following:
(A) The Medicaid program established under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.).
(B) The State Children's Health Insurance Program
established under title XXI of the Social Security Act (42
U.S.C. 1397aa et seq.).
(C) The supplemental security income benefits program
established under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.).
(D) The supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.).
(E) The temporary assistance for needy families program
established under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.).
(12) State.--The term ``State'' means--
(A) each State of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) any territory or possession of the United States; and
(E) an Indian tribe.
(13) Tribally designated housing entity.--The term ``tribally
designated housing entity'' has the meaning given the term in
section 4 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103).
(14) Whole-home repairs.--The term ``whole-home repairs'' means
modifications, repairs, or updates to home-owner or renter-occupied
units to address--
(A) physical and sensory accessibility for individuals with
disabilities and older adults, such as bathroom and kitchen
modifications, installation of grab bars and handrails, guards
and guardrails, lifting devices, ramp additions or repairs,
sidewalk addition or repair, or doorway or hallway widening;
(B) habitability and safety concerns, such as repairs
needed to ensure residential units are fit for human habitation
and free from defective conditions or health and safety
hazards; or
(C) energy and water efficiency, resilience, and
weatherization.
(b) Pilot Program.--
(1) Establishment.--There is authorized a pilot program to
provide grants to implementing organizations to administer a whole-
home repairs program for eligible home-owners and eligible
landlords.
(2) Use of funds.--An implementing organization that receives a
grant from appropriated funds made available for this subsection--
(A) shall provide grants to eligible home-owners to
implement whole-home repairs not covered by other Federal home
repair programs up to a maximum amount per unit, which maximum
amount should--
(i) reflect local construction costs and the level of
repairs needed in each unit; and
(ii) be calculated and approved by the Secretary;
(B) shall provide loans, which may be forgivable, to
eligible landlords to implement whole-home repairs not covered
by other Federal home repair programs for individual affordable
units, public and common use areas within the property, and
common structural elements up to a maximum amount per unit,
area, or element, as applicable, which maximum amount should--
(i) reflect local construction costs; and
(ii) be calculated and approved by the Secretary;
(C) shall evaluate, or provide assistance to eligible home-
owners and eligible landlords to evaluate, whole-home repair
program funds provided under this subsection with Federal,
State, Tribal, and local home repair programs to provide the
greatest benefit to the greatest number of eligible landlords
and eligible home-owners and avoid duplication of benefits and
redundancies for the same home repairs;
(D) shall require that--
(i) all repairs funded or facilitated through an award
under this subsection have been completed;
(ii) if repairs are not completed and the plan for
whole-home repairs is not updated to reflect the new scope
of work, that the loan or grant is repaid on a prorated
basis based on completed work; and
(iii) any unused grant or loan balance is returned to
the implementing organization, and is reused by the
implementing organization for a new whole-home repair grant
or loan under this subsection;
(E) may use not more than 5 percent of the awarded funds to
carry out related functions, including workforce training for
home repair professions, which shall be related to efforts to
increase the number of home repairs performed and approved by
the Secretary;
(F) may use not more than 10 percent of the awarded funds
for administrative expenses;
(G) shall comply with Federal accessibility requirements
and standards under applicable Federal fair housing and civil
rights laws and regulations, including section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and
(H) shall ensure that rental properties assisted under
subparagraph (B) shall be treated as projects assisted under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
(3) Loan agreement.--In a loan agreement with an eligible
landlord under this subsection, an implementing organization shall
include provisions establishing that the eligible landlord shall,
for each eligible rental property for which a loan is used to fund
repairs under this subsection--
(A) comply with Federal accessibility requirements and
standards under applicable Federal fair housing and civil
rights laws and regulations, including section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and
(B)(i) if the landlord is renting the assisted units
available in the eligible rental property to tenants receiving
tenant-based rental assistance under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)), under another
tenant-based rental assistance program administered by the
Secretary or the Secretary of Agriculture, or under a tenant-
based rental subsidy provided by a State or local government,
comply with the program requirements under the relevant tenant-
based rental assistance program; or
(ii) if the eligible landlord is not renting to tenants
receiving rental-based assistance as described in clause (i)--
(I)(aa) offer to extend the lease of current tenants on
current terms, other than the terms described in subclause
(iv) for not less than 3 years beginning after the
completion of the repairs, unless the lease is terminated
due to failure to pay rent, performance of an illegal act
within the rental unit, or a violation of an obligation of
tenancy that the tenants failed to correct after notice;
and
(bb) if the tenant of an assisted unit moves out of the
assisted unit at any point in the 3-year period following
the loan agreement, maintain the unit as an affordable unit
for the remainder of the 3-year period;
(II) provide documentation verifying that the property,
upon completion of approved renovations, has met all
applicable State and local housing and building codes;
(III) attest that the landlord has no known serious
violations of renter protections that have resulted in
fines, penalties, or judgments during the preceding 10
years; and
(IV) cap annual rent increases for each assisted unit
at 5 percent of base rent or at the rate of inflation,
whichever is lower, for not less than 3 years beginning
after the completion of the repairs.
(4) Application.--
(A) In general.--An implementing organization desiring an
award under this subsection shall submit to the Secretary an
application that includes--
(i) the geographic scope of the whole-home repairs
program to be administered by the implementing
organization, including the plan to address need in any
rural, Tribal, suburban, or urban area within a
jurisdiction;
(ii) a plan for selecting subrecipients, if applicable;
(iii) a description of how the implementing
organization plans to execute the coordination of Federal,
State, Tribal, and local home repair programs, including
programs administered by the Department of Energy, the
Department of the Interior, the Department of Veteran
Affairs, or the Department of Agriculture, to increase
efficiency and reduce redundancy;
(iv) available data on the need for affordable and
quality housing within the geographic scope of the whole-
home repairs program, and any plans to preserve
affordability through the term of the award;
(v) a description of how the implementing organization
plans to process and verify applications for grants from
eligible home-owners and applications for loans from
eligible landlords; and
(vi) such other information as the Secretary requires
to determine the ability of an applicant to carry out a
program under this subsection.
(B) Considerations.--In making awards under this
subsection, the Secretary shall--
(i) with respect to applications submitted by States
other than the District of Columbia and the territories of
the United States, prioritize those applications with a
demonstrated plan to--
(I) make a good-faith effort to implement the pilot
program in every jurisdiction; and
(II) provide nonmetropolitan areas, or
subrecipients serving non-metropolitan areas if
applicable, with a share of total funds commensurate
with their population;
(ii) aim to select applicants so that the awardees
collectively span diverse geographies, with an intent to
understand the impact of the pilot program under this
subsection in urban, suburban, rural, and Tribal settings;
and
(iii) not disqualify implementing organizations that
were awarded grants under the pilot program in prior
application cycles.
(5) Program information.--The Secretary shall make available to
grant recipients under this subsection information regarding
existing Federal programs for which grant recipients may coordinate
or provide assistance in coordinating applications for those
programs in accordance with paragraph (2)(C).
(6) Grant number.--In each year in which an award is made under
this subsection, the Secretary shall award assistance to--
(A) not less than 2, and not more than 10, implementing
organizations, as application numbers and funding permit; and
(B) not more than 1 implementing organization in any State.
(7) Loans that are not forgiven.--If a loan made by an
implementing organization under paragraph (2)(B) is not forgiven,
the loan repayment funds shall be reused by the implementing
organization for a new whole-home repair grant or loan under this
subsection, which shall remain subject to the original terms of the
assistance awarded under this subsection.
(8) Supplement, not supplant.--Amounts awarded under this
subsection to implementing organizations shall supplement, not
supplant, other Federal, State, Tribal, and local funds made
available to those entities.
(9) Streamlining program delivery and ensuring efficiency.--To
the extent possible, in carrying out the pilot program under this
subsection, the Secretary shall--
(A) endeavor to improve efficiency of service delivery, as
well as the experience of and impact on the taxpayer, by
encouraging programmatic collaboration and information sharing
across Federal, State, Tribal, and local programs for home
repair or improvement, including programs administered by the
Department of Agriculture, the Department of the Interior, the
Department of Veterans Affairs, or the Department of Energy;
and
(B) enhance collaboration and cross-agency streamlining
efforts that reduce the burden of multiple income verification
processes and applications on the eligible home-owner, the
eligible landlord, the implementing organization, and the
Federal Government, including by establishing assistance
application procedures for income eligibility under this
subsection that recognize income eligibility determinations for
assistance using any of the criteria under subsection (a)(3)(A)
that have been used for assistance applications during the 1-
year period preceding the date on which an eligible home-owner
or eligible landlord applies for assistance under this
subsection.
(10) Reporting requirements.--
(A) Annual report.--An implementing organization that
receives a grant under this subsection shall submit to the
Secretary an annual report on initial funding that includes--
(i) the number of units served, including reporting on
both home-ownership and rental units, as well as accessible
units;
(ii) the average cost per unit for modifications or
repairs and the nature of those modifications or repairs,
including reporting on accessibility in both home-ownership
and rental units;
(iii) the number of applications received, served,
denied, or not completed, disaggregated by geographic area;
(iv) the aggregated demographic data of grant
recipients, which may include data on income range, urban,
suburban, and rural residency, age, and racial and ethnic
identity;
(v) the aggregated demographic data of loan recipients,
which may include data on income range, urban, suburban,
and rural residency, age, and racial and ethnic identity;
(vi) an affirmation that the implementation
organization has complied with the applicable regulations,
including compliance with Federal accessibility
requirements;
(vii) in the first year of receiving a grant, and as
certified in subsequent reports, a comprehensive plan to
prevent waste, fraud, and abuse in the administration of
the pilot program, which shall include, at a minimum--
(I) a policy enacted and enforced by the
implementing organization to monitor ongoing
expenditures under this subsection and ensure
compliance with applicable regulations;
(II) a policy enacted and enforced by the
implementing organization to detect and deter
fraudulent activity, including fraud occurring in
individual projects and patterns of fraud by parties
involved in the expenditure of funds under this
subsection;
(III) a statement setting forth any violations
detected by the implementing organization during the
previous calendar year, including details about steps
taken to achieve compliance and any remedial measures;
and
(IV) a certification by the chief executive or most
senior compliance officer of the organization that the
organization maintains sufficient staff and resources
to effectively carry out the above-mentioned policies;
and
(viii) such other information as the Secretary may
require.
(B) Reporting requirement alignment.--To limit the costs of
implementing the pilot program under this subsection, the
Secretary shall endeavor, to the extent possible, to structure
reporting requirements such that they align with the data
reporting requirements in place for funding streams that
implementing organizations are likely to use together with
funding from this subsection, including the reporting
requirements under--
(i) the Community Development Block Grant program under
title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.);
(ii) the HOME Investment Partnerships program under
subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.);
(iii) the Weatherization Assistance Program for low-
income persons established under part A of title IV of the
Energy Conservation and Production Act (42 U.S.C. 6861 et
seq.); and
(iv) the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.).
(C) Pilot program period reports.--Not less frequently than
twice during the period in which the pilot program established
under this subsection operates, the Office of Inspector General
of the Department of Housing and Urban Development shall
complete an assessment of the implementation of measures to
ensure the fair and legitimate use of the pilot program.
(D) Summary to congress.--The Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives an annual report providing a summary of the
data provided under subparagraphs (A) and (C) during the 1-year
period preceding the report and all data previously provided
under those subparagraphs.
(11) Environmental review.--A grant under this subsection shall
be--
(A) treated as assistance for a special project for
purposes of section 305(c) of the Multifamily Housing Property
Disposition Reform Act of 1994 (42 U.S.C. 3547); and
(B) subject to the regulations promulgated by the Secretary
to implement such section.
(12) Termination.--The pilot program established under this
subsection shall terminate on October 1, 2031.
SEC. 203. COMMUNITY INVESTMENT AND PROSPERITY ACT.
(a) Revised Statutes.--The paragraph designated as the ``Eleventh''
of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended, in the fifth sentence, by striking ``15'' each place
the term appears and inserting ``20''.
(b) Federal Reserve Act.--Section 9(23) of the Federal Reserve Act
(12 U.S.C. 338a) is amended, in the fifth sentence, by striking ``15''
each place the term appears and inserting ``20''.
(c) Study.--Not later than 2 years after the date of enactment of
this section, and every 2 years thereafter, the Comptroller of the
Currency and the Board of Governors of the Federal Reserve System shall
each submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, a report, after consulting with the other agency
in the development of such report, about public welfare investments
that were made by associations under section 5136 of the Revised
Statutes of the United States (12 U.S.C. 24) and State member banks
under section 9(23) of the Federal Reserve Act (12 U.S.C. 338a) in the
2 previous calendar years, that--
(1) identifies the number of such investments, broken down by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State member
bank that made the investment, using not fewer than 4
categories to describe the amount of assets of the associations
and banks; and
(D) State or other location;
(2) identifies the dollar amounts of such investments, broken
down by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State member
bank that made the investment, using not fewer than 4
categories to describe the amount of assets of the associations
and banks; and
(D) State or other location; and
(3) for each type of public welfare investment identified under
paragraphs (1) and (2), a description of the substantive and
procedural requirements that apply to each type of investment made
under--
(A) in the case of a report by the Comptroller of the
Currency, section 5136 of the Revised Statutes of the United
States (12 U.S.C. 24); or
(B) in the case of a report by the Board of Governors,
section 9(23) of the Federal Reserve Act (12 U.S.C. 338a).
SEC. 204. ADDITION OF AFFORDABLE HOUSING CONSTRUCTION AS AN
ELIGIBLE ACTIVITY.
(a) Eligible Activity.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)), as amended by section 104
of this Act, is amended--
(1) in paragraph (26), by striking ``and'' at the end;
(2) in paragraph (27), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(28) the new construction of affordable housing, within the
meaning given such term under section 215 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745), and which shall
not exceed 20 percent of the amounts allocated to the recipient.''.
(b) Low- and Moderate-income Requirement.--Section 105(c)(3) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5305(c)(3)) is
amended by striking ``or rehabilitation'' and inserting ``,
rehabilitation, or new construction''.
(c) Applicability.--The amendments made by this section shall apply
with respect only to amounts appropriated after the date of enactment
of this Act.
SEC. 205. BETTER USE OF INTERGOVERNMENTAL AND LOCAL DEVELOPMENT
(BUILD) HOUSING ACT.
(a) Designation of Environmental Review Procedure.--The Department
of Housing and Urban Development Act (42 U.S.C. 3531 et seq.) is
amended by inserting after section 12 (42 U.S.C. 3537a) the following:
``SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PROCEDURE.
``(a) In General.--Except as provided in subsection (b), the
Secretary may, for purposes of environmental review, decision making,
and action pursuant to the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), and other provisions of law that further the
purposes of such Act, designate the treatment of assistance
administered by the Secretary as funds for a special project for
purposes of section 305(c) of the Multifamily Housing Property
Disposition Reform Act of 1994 (42 U.S.C. 3547).
``(b) Exception.--The designation described in subsection (a) shall
not apply to assistance for which a procedure for carrying out the
responsibilities of the Secretary under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of
law that further the purposes of such Act, is otherwise specified in
law.''.
(b) Tribal Assumption of Environmental Review Obligations.--Section
305(c) of the Multifamily Housing Property Disposition Reform Act of
1994 (42 U.S.C. 3547) is amended--
(1) by striking ``State or unit of general local government''
each place it appears and inserting ``State, Indian Tribe, or unit
of general local government'';
(2) in paragraph (1)(C), in the heading, by striking ``State or
unit of general local government'' and inserting ``State, indian
tribe, or unit of general local government''; and
(3) by adding at the end the following:
``(5) Definition of indian tribe.--For purposes of this
subsection, the term `Indian Tribe' means a federally recognized
tribe, as defined in section 4(13)(B) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4103(13)(B)).''.
(c) Implementation.--
(1) In general.--Except as provided in paragraph (2), a
designation of assistance under section 13 of the Department of
Housing and Urban Development Act, as added by subsection (a),
shall only apply with respect to funds appropriated after the date
of enactment of this Act.
(2) Exception.--If a grantee of assistance administered by the
Secretary of Housing and Urban Development combines funds
appropriated before and after the date of enactment of this Act to
carry out a project, section 13 of the Department of and Urban
Development Act, as added by subsection (a), shall not apply to
that assistance.
SEC. 206. UNLOCKING HOUSING SUPPLY THROUGH STREAMLINED AND
MODERNIZED REVIEWS ACT.
(a) Definitions.--In this section:
(1) Infill project.--The term ``infill project'' means a
project that--
(A) occurs within the geographic limits of a municipality;
(B) is adequately served by existing utilities and public
services as required under applicable law;
(C) is located on a site of previously disturbed land of
not more than 5 acres and substantially surrounded by
residential or commercial development;
(D) will repurpose a vacant or underutilized parcel of
land, or a dilapidated or abandoned structure; and
(E) will serve a residential or commercial purpose.
(2) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary shall, in accordance with
section 553 of title 5, United States Code, and section 103 of the
National Environmental Policy Act of 1969 (42 U.S.C. 4333), expand
and reclassify housing-related activities under the necessary
administrative regulations as follows:
(A) The following housing-related activities shall be
subject to regulations equivalent or substantially similar to
the regulations entitled ``exempt activities'' as set forth in
section 58.34 of title 24, Code of Federal Regulations, as in
effect on January 1, 2025:
(i) Tenant-based rental assistance.
(ii) Supportive services, including health care,
housing services, permanent housing placement, day care,
nutritional services, short-term payments for rent,
mortgage, or utility costs, and assistance in gaining
access to Federal Government and State and local government
benefits and services.
(iii) Operating costs, including maintenance, security,
operation, utilities, furnishings, equipment, supplies,
staff training, and recruitment and other incidental costs.
(iv) Economic development activities, including
equipment purchases, inventory financing, interest
subsidies, operating expenses, and similar costs not
associated with construction or expansion of existing
operations.
(v) Activities to assist home-buyers in the purchase of
existing dwelling units or dwelling units under
construction, including closing costs and down payment
assistance, interest rate buydowns, and similar activities
that result in the transfer of title.
(vi) Affordable housing predevelopment costs related to
obtaining site options, project financing, administrative
costs and fees for loan commitment, zoning approvals, and
other related activities that do not have a physical
impact.
(vii) Approval of supplemental assistance, including
insurance or guarantee, to a project previously approved by
the Secretary.
(viii) Emergency home-owner or renter assistance for
the repair or replacement of HVAC, hot water heaters, and
other necessary existing utilities required under
applicable law.
(B) The following housing-related activities shall be
subject to regulations equivalent or substantially similar to
the regulations entitled, (i) ``categorical exclusions not
subject to section 58.5'' and (ii) ``categorical exclusions not
subject to the Federal laws and authorities cited in section
50.4'' in section 58.35(b) and section 50.19, respectively of
title 24, Code of Federal Regulations, as in effect on January
1, 2025, if such activities do not materially alter
environmental conditions and do not materially exceed the
original scope of the project:
(i) Acquisition, repair, improvement, reconstruction,
or rehabilitation of public facilities and improvements
(other than buildings) if the facilities and improvements
are in place and will be retained in the same use without
change in size or capacity of more than 20 percent,
including replacement of water or sewer lines,
reconstruction of curbs and sidewalks, and repaving of
streets.
(ii) Rehabilitation of 1-to-4 unit residential
buildings, and existing housing-related infrastructure,
such as repairs or rehabilitation of existing wells,
septics, or utility lines that connect to that housing.
(iii) New construction, development, demolition,
acquisition, or disposition of up to 4 scattered site
existing dwelling units where there is a maximum of 4 units
on any 1 site.
(iv) Acquisitions (including leasing) of, disposition
of, or equity loans on an existing structure, or
acquisition (including leasing) of vacant land if the
structure or land acquired, financed, or disposed of will
be retained for the same use.
(C) The following housing-related activities shall be
subject to regulations equivalent or substantially similar to
the regulations entitled, (i) ``categorical exclusions subject
to section 58.5'' and (ii) ``categorical exclusions subject to
the Federal laws and authorities cited in section 50.4'' in
section 58.35(a) and section 50.20, respectively, of title 24,
Code of Federal Regulations, as in effect on January 1, 2025,
if such activities do not materially alter environmental
conditions and do not materially exceed the original scope of
the project:
(i) Acquisitions of open space or residential property,
where such property will be retained for the same use or
will be converted to open space to help residents relocate
out of an area designated as a high-risk area by the
Secretary.
(ii) Conversion of existing office buildings into
residential development, subject to--
(I) a maximum number of units to be determined by
the Secretary; and
(II) a limitation on the change in building size of
not more than 20 percent.
(iii) New construction, development, demolition,
acquisition, or disposition of 5 to 15 dwelling units where
there is a maximum of 15 units on any 1 site. The units can
be 15 1-unit buildings or 1 15-unit building, or any
combination in between.
(iv) New construction, development, demolition,
acquisition, or disposition of 15 or more housing units
developed on scattered sites when there are not more than
15 housing units on any 1 site, and the sites are more than
a set number of feet apart as determined by the Secretary.
(v) Rehabilitation of buildings and improvements in the
case of a building for residential use with 5 to 15 units,
if the density is not increased beyond 15 units and the
land use is not changed.
(vi) Infill projects consisting of new construction,
rehabilitation, or development of residential housing
units.
(vii) The voluntary acquisition of properties--
(I) located in--
(aa) a floodway;
(bb) a floodplain; or
(cc) any other area, clearly delineated by the
grantee; and
(II) that have been impacted by a predictable
environmental threat to the safety and well-being of
program beneficiaries caused or exacerbated by a
federally declared disaster.
(c) Implementation.--For purposes of implementing the streamlining
of environmental review for housing-related activities under subsection
(b), the agency actions carried out under that subsection--
(1) shall only apply with respect to funds appropriated after
the effective date of those actions; and
(2) shall not apply with respect to a grantee that combines
funds appropriated before and after the effective date of those
actions to carry out a project.
(d) Report.--The Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives an annual report
during the 5-year period beginning on the date that is 2 years after
the date of enactment of this Act that provides a summary of findings
of reductions in review times and administrative cost reduction, with a
particular focus on the affordable housing sector, as a result of the
actions set forth in this section, and any recommendations of the
Secretary for future congressional action with respect to revising
categorical exclusions or exemptions under title 24, Code of Federal
Regulations.
SEC. 207. GRANTS FOR PLANNING AND IMPLEMENTATION ASSOCIATED WITH
AFFORDABLE HOUSING.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or urban
county, as those terms are defined in section 102 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5302);
or
(B) a regional planning agency or consortia of regional
planning agencies.
(2) Housing plan.--The term ``housing plan'' means a plan to,
with respect to an area within the jurisdiction of an eligible
entity--
(A) increase the amount of available housing to meet the
demand for such housing and any projected increase in the
demand for such housing;
(B) increase the affordability of housing;
(C) increase the accessibility of housing for people with
disabilities, including location-efficient housing;
(D) preserve or improve the quality of housing;
(E) reduce barriers to housing development; and
(F) coordinate with transportation-related agencies.
(3) Housing strategy.--The term ``housing strategy'' means a
housing strategy required under section 105 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12705).
(4) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program to award
grants on a competitive basis to eligible entities to assist planning
and implementation activities associated with affordable housing,
except that such grant awards may not be used for construction,
alteration, or repair work.
(c) Use of Amounts.--
(1) By regional planning agencies.--If an eligible entity that
receives amounts under this section is an eligible entity described
in subsection (a)(1)(B), the eligible entity shall use those
amounts to assist planning activities with respect to affordable
housing, including--
(A) the development of housing plans;
(B) the substantial improvement of State or local housing
strategies;
(C) the development of new regulatory requirements and
processes;
(D) updating zoning codes;
(E) increasing the capacity to conduct housing inspections;
(F) increasing the capacity to reduce barriers to housing
supply elasticity and housing affordability;
(G) the development of local or regional plans for
community development; and
(H) the substantial improvement of community development
strategies, including strategies designed to--
(i) increase the availability of affordable housing and
access to affordable housing;
(ii) increase access to public transportation; and
(iii) advance sustainable or location-efficient
community development goals.
(2) By states, insular areas, metropolitan cities, and urban
counties.--If an eligible entity that receives amounts under this
section is an eligible entity described in subsection (a)(1)(A),
the eligible entity shall use those amounts to--
(A) implement and administer housing strategies and housing
plans;
(B) implement and administer any plans to increase housing
choice, address disparities in housing needs, and provide
greater access to opportunity;
(C) fund any community investments that support goals
identified in a housing strategy or housing plan;
(D) implement and administer regulatory requirements and
processes with respect to reformed zoning codes;
(E) increase the capacity to conduct housing inspections;
(F) increase the capacity to reduce barriers to housing
supply elasticity and housing affordability;
(G) implement and administer local or regional plans for
community development; and
(H) fund any planning to increase--
(i) the availability of affordable housing and access
to affordable housing;
(ii) access to public transportation; and
(iii) any location-efficient community development
goals.
(3) Use for administrative costs.--A eligible entity that
receives amounts under this section may not use more than 10
percent of those amounts for administrative costs.
(d) Coordination.--To the extent practicable, the Secretary shall
coordinate with the Administrator of the Federal Transit Administration
in carrying out this section.
(e) Expiration of Authority.--After the expiration of the 5-year
period beginning on the date of enactment of this Act, the Secretary
may not newly establish a program as described in this section.
(f) Sunset.--The program established under this section shall
terminate on the date that is 5 years after the date of enactment of
this Act.
SEC. 208. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing'' means
housing that serves households earning not more than 120 percent of
the area median income, if the majority of the housing units are
affordable to households earning not more than 60 percent of the
area median income.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a metropolitan city or urban county, as those terms are
defined in section 102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302), that has demonstrated an
objective improvement in housing supply growth, as determined
by the Secretary, whose methodology for determining such growth
is published in the Federal Register to allow for public
comment not less than 90 days before the date on which the
notice of funding opportunity is made available; or
(B) a unit of general local government or an Indian tribe,
as those terms are defined in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302), that has
demonstrated an objective improvement in housing supply growth,
as determined by the Secretary, whose methodology for
determining such improvement is published in the Federal
Register to allow for public comment not less than 90 days
before the date on which the notice of funding opportunity is
made available.
(3) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) Establishment of a Grant Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program to
award grants on a competitive basis to eligible entities that have
increased their local housing supply.
(2) List of eligible entities.--The Secretary shall make a list
of eligible entities publicly available on the website of the
Department of Housing and Urban Development.
(3) Eligible purposes.--An eligible entity receiving a grant
under this section may use funds to--
(A) carry out any of the activities described in section
105 of the Housing and Community Development Act of 1974 (42
U.S.C. 5305);
(B) carry out any of the activities permitted under the
Local and Regional Project Assistance Program established under
section 6702 of title 49, United States Code; and
(C) carry out initiatives of the eligible entity that
facilitate the expansion of the supply of attainable housing
and that supplement initiatives the eligible entity has carried
out, or is in the process of carrying out, as specified in the
application submitted under paragraph (4).
(4) Application.--
(A) In general.--An eligible entity seeking a grant under
this section shall submit to the Secretary an application that
provides--
(i) a description of each purpose for which the
eligible entity will use the grant, and an attestation that
the grant will be used only for 1 or more eligible purposes
described in paragraph (3);
(ii) data on characteristics of increased housing
supply during the 3-year period ending on the date on which
the application is submitted, which may include whether
such housing--
(I) serves households at a range of income levels;
and
(II) has improved the quality and affordability of
housing in the jurisdiction of the eligible entity;
(iii) a description of how each eligible purpose
described in clause (i) may address a community need or
advance an objective, or an aspect of an objective,
included in the comprehensive housing affordability
strategy and community development plan of the eligible
entity under part 91 of title 24, Code of Federal
Regulations, or any successor regulation (commonly referred
to as a ``consolidated plan''); and
(iv) a description of how the eligible entity has
carried out, or is in the process of carrying out,
initiatives that facilitate the expansion of the supply of
housing.
(B) Initiatives.--Initiatives that meet the criteria
described in paragraph (3)(C) include, but shall not be limited
to--
(i) increasing by-right uses, including duplex,
triplex, quadplex, and multifamily buildings, in areas of
opportunity;
(ii) revising or eliminating off-street parking
requirements to reduce the cost of housing production;
(iii) revising minimum lot size requirements, floor
area ratio requirements, set-back requirements, building
heights, and bans or limits on construction that allow for
denser and more affordable development;
(iv) instituting incentives to promote dense
development for communities where increased density is
needed;
(v) passing zoning overlays or other ordinances that
enable the development of mixed-income housing;
(vi) streamlining regulatory requirements and
shortening processes, increasing code enforcement and
permitting capacity, reforming zoning codes, or other
initiatives that reduce barriers to increasing housing
supply and affordability;
(vii) eliminating restrictions against accessory
dwelling units and expanding their by-right use;
(viii) using local tax incentives or public financing
to promote development of attainable housing;
(ix) streamlining environmental regulations;
(x) eliminating unnecessary manufactured-housing or
cooperative housing regulations and restrictions;
(xi) minimizing the impact of overburdensome energy and
water efficiency standards on housing costs; and
(xii) other activities that reduce the cost of
construction, as determined by the Secretary.
(5) Grants.--
(A) In general.--The Secretary shall make not fewer than 25
grants on an annual basis (unless amounts appropriated to
provide grant amounts consistent with subsection (b) are
insufficient, in which case fewer grants may be awarded), with
strong consideration of different geographical areas and a
relatively even spread of rural, suburban, and urban
communities.
(B) Limitations on awards.--No grant awarded under this
paragraph may be--
(i) more than $10,000,000; or
(ii) less than $250,000.
(C) Priority.--When awarding grants under this paragraph,
the Secretary shall give priority to an eligible entity that
has--
(i) demonstrated the use of innovative policies,
interventions, or programs for increasing housing supply;
and
(ii) demonstrated a marked improvement in housing
supply growth, as needed.
(D) Grant administration and terms.--Projects assisted
under this section for activities described in sector 23 of the
North American Industry Classification System shall be treated
as projects assisted under the Community Development Block
Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(c) Rules of Construction.--Nothing in this section shall be
construed--
(1) to authorize the Secretary to mandate, supersede, or
preempt any local zoning or land use policy; or
(2) to affect the requirements of section 105(c)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(c)(1)).
(d) Sunset.--The program established under this section shall
terminate on the date that is 7 years after the date of enactment of
this Act.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $200,000,000 for each of fiscal years 2027
through 2031.
(2) Adjustment.--The amount authorized to be appropriated under
paragraph (1) shall be adjusted for inflation based on the Consumer
Price Index for all Urban Customers published by the Bureau of
Labor Statistics of the Department of Labor.
SEC. 209. ACCELERATING HOME BUILDING ACT.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing'' means
housing for which the total monthly housing cost payment is not
more than 30 percent of the monthly household income for a
household earning not more than 80 percent of the area median
income.
(2) Covered structure.--The term ``covered structure'' means--
(A) a low-rise or mid-rise structure with not more than 25
dwelling units; and
(B) includes--
(i) an accessory dwelling unit;
(ii) infill development;
(iii) a duplex;
(iv) a triplex;
(v) a fourplex;
(vi) a cottage court;
(vii) a courtyard building;
(viii) a townhouse;
(ix) a multiplex; and
(x) any other structure with not less than 2 dwelling
units that the Secretary considers appropriate.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of general local government, as defined in
section 102(a) of the Housing and Community Development Act of
1974 (42 U.S.C. 5302(a));
(B) a municipal membership organization; and
(C) an Indian tribe, as defined in section 102(a) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)).
(4) High opportunity area.--The term ``high opportunity area''
has the meaning given the term in section 1282.1 of title 12, Code
of Federal Regulations, or any successor regulation.
(5) Infill development.--The term ``infill development'' means
residential development on small parcels in previously established
areas for replacement with new or refurbished housing that utilizes
existing utilities and infrastructure.
(6) Mixed-income housing.--The term ``mixed-income housing''
means a housing development that is comprised of housing units that
promote differing levels of affordability in the community.
(7) Prereviewed designs.--The term ``prereviewed designs'',
also known as pattern books, means sets of construction plans that
are assessed and approved by localities for compliance with local
building and permitting standards to streamline and expedite
approval pathways for housing construction.
(8) Rural area.--The term ``rural area'' means any area other
than a city or town that has a population of less than 50,000
inhabitants.
(9) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) Authority.--The Secretary is authorized to award grants to
eligible entities utilizing funds appropriated for such purpose to
select prereviewed designs of covered structures of mixed-income
housing for use in the jurisdiction of the eligible entity, except that
such grant awards may not be used for construction, alteration, or
repair work.
(c) Considerations.--In reviewing applications submitted by
eligible entities for a grant under this section, the Secretary shall
consider--
(1) the need for affordable housing in the service area of the
eligible entity;
(2) the presence of high opportunity areas in the jurisdiction
of the eligible entity;
(3) coordination between the eligible entity and a State
agency; and
(4) coordination between the eligible entity and State, local,
and regional transportation planning authorities.
(d) Set-aside for Rural Areas.--Of the amount made available in
each fiscal year for grants under this section, the Secretary shall
ensure that not less than 10 percent shall be used for grants to
eligible entities that are located in rural areas.
(e) Reports.--The Secretary shall require eligible entities
receiving grants under this section to report on--
(1) the impacts of the activities carried out using the grant
amounts in improving the production and supply of affordable
housing;
(2) the prereviewed designs selected using the grant amounts in
their communities;
(3) the number of permits issued for housing development
utilizing prereviewed designs; and
(4) the number of housing units produced in developments
utilizing the prereviewed designs.
(f) Availability of Information.--The Secretary shall--
(1) to the extent possible, encourage localities to make
publicly available through a website information on the prereviewed
designs selected and submitted to the Secretary by eligible
entities receiving grants under this section, including information
on the benefits of use of those designs; and
(2) collect, identify, and disseminate best practices regarding
such designs and make such information publicly available on the
website of the Department of Housing and Urban Development.
(g) Design Adoption and Repayment.--The Secretary may require an
eligible entity to return to the Secretary any grant funds received
under this section if the selected prereviewed designs submitted under
this section have not been adopted during the 5-year period following
receipt of the grant, unless that period is extended by the Secretary.
(h) Technical Assistance.--The Secretary may set aside not more
than 5 percent of amounts appropriated in a fiscal year to provide
technical assistance to grant recipients under this section and
pregrant technical assistance to prospective applicants.
SEC. 210. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE ENVIRONMENTS
(RESIDE) ACT.
(a) In General.--Subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12741 et seq.) is amended by
adding at the end the following:
``SEC. 227. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE
ENVIRONMENTS.
``(a) Definitions.--In this section:
``(1) Attainable housing.--The term `attainable housing' means
housing that serves households earning not more than 120 percent of
the area median income, if the majority of the housing units are
affordable to households earning not more than 60 percent of the
area median income.
``(2) Converted housing unit.--The term `converted housing
unit' means a housing unit that is created using a covered grant.
``(3) Covered grant.--The term `covered grant' means a grant
awarded under the Pilot Program.
``(4) Eligible entity.--The term `eligible entity' means a
participating jurisdiction.
``(5) Pilot program.--The term `Pilot Program' means the pilot
program established under subsection (b).
``(6) Vacant and abandoned building.--The term `vacant and
abandoned building' means a property--
``(A) that was constructed for use as a warehouse, factory,
mall, strip mall, or hotel, or for another industrial or
commercial use; and
``(B)(i) with respect to which--
``(I) a code enforcement inspection has determined that
the property is not safe; and
``(II) not less than 90 days have elapsed since the
owner was notified of the deficiencies in the property and
the owner has taken no corrective action; or
``(ii) that is subject to a court-ordered receivership or
nuisance abatement related to abandonment pursuant to State or
local law or otherwise meets the definition of an abandoned
property under State law.
``(b) Purpose of Grant Program.--Subject to the availability of
funds appropriated for this subsection, the Secretary is authorized to
establish a pilot program, spanning from fiscal years 2027 through
2031, which shall have the purpose of awarding grants on a competitive
basis to eligible entities to convert vacant and abandoned buildings
into attainable housing.
``(c) Amount of Grant.--
``(1) In general.--For any fiscal year for which not less than
$100,000,000 is made available to carry out the Pilot Program, the
amount of a covered grant shall be not less than $1,000,000 and not
more than $10,000,000.
``(2) Fiscal years with lower funding.--For any fiscal year for
which less than $100,000,000 is made available to carry out the
Pilot Program pursuant to subsection (b), the Secretary shall seek
to maximize the number of covered grants awarded.
``(d) Relation to Formula Allocation.--A covered grant awarded to
an eligible entity shall be in addition to, and shall not affect, the
formula allocation for the eligible entity under section 217.
``(e) Priority.--In awarding covered grants, the Secretary shall
give priority to an eligible entity that--
``(1) will use the covered grant in a community that is
experiencing economic distress;
``(2) will use the covered grant in a qualified opportunity
zone (as defined in section 1400Z-1(a) of the Internal Revenue Code
of 1986);
``(3) will use the covered grant to construct housing that will
serve a need identified in the comprehensive housing affordability
strategy and community development plan of the eligible entity
under part 91 of title 24, Code of Federal Regulations, or any
successor regulation (commonly referred to as a `consolidated
plan'); or
``(4) has enacted ordinances to reduce regulatory barriers to
conversion of vacant and abandoned buildings to housing, which
shall not include any alteration of an ordinance that governs
safety and habitability.
``(f) Use of Funds.--An eligible entity may use a covered grant
for--
``(1) property acquisition;
``(2) demolition;
``(3) health hazard remediation;
``(4) site preparation;
``(5) construction, renovation, or rehabilitation; or
``(6) the establishment, maintenance, or expansion of community
land trusts or housing cooperatives.
``(g) Waiver Authority.--In administering covered grants, the
Secretary may waive, or specify alternative requirements for, any
statute or regulation that the Secretary administers in connection with
the obligation by the Secretary or the use by eligible entities of
covered grant funds (except for requirements related to fair housing,
nondiscrimination, labor standards, or the environment) if the
Secretary makes a public finding that good cause exists for the waiver
or alternative requirement.
``(h) Study; Report.--Not later than 180 days after the termination
of the Pilot Program, the Secretary shall study and submit to Congress
a report on the impact of the Pilot Program on--
``(1) improving the tax base of local communities;
``(2) increasing access to affordable housing, especially for
elderly individuals, disabled individuals, and veterans;
``(3) increasing home-ownership; and
``(4) removing blight.''.
(b) Technical and Conforming Amendment.--The table of contents in
section 1(b) of the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625; 104 Stat. 4079) is amended by inserting after the
item relating to section 226 the following:
``Sec. 227. Revitalizing empty structures into desirable
environments.''.
SEC. 211. HOUSING AFFORDABILITY ACT.
(a) In General.--Title II of the National Housing Act (12 U.S.C.
1707 et seq.) is amended--
(1) in section 206A (12 U.S.C. 1712a)--
(A) in subsection (a), in the matter following paragraph
(7), by striking ``(commencing in 2004'' and all that follows
through the period at the end and inserting the following: ``,
commencing on July 1, 2025. The adjustment of the Dollar
Amounts shall be calculated by the Secretary using the
percentage change in the Price Deflator Index of Multifamily
Residential Units Under Construction released by the Bureau of
the Census from March of the previous year to March of the year
in which the adjustment is made, or by the Secretary using an
alternative indicator after publishing information about such
alternative indicator in the Federal Register for public
comment if the Price Deflator Index of Multifamily Residential
Units Under Construction is not available or published.''; and
(B) by amending subsection (b) to read as follows:
``(b) Publication.--
``(1) In general.--The Secretary shall publish in the Federal
Register any adjustments made to the Dollar Amounts.
``(2) Rounding.--The dollar amount of any adjustment described
in paragraph (1) shall be rounded to the next lower dollar.'';
(2) in section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A))--
(A) by striking ``$38,025'' and inserting ``$167,310'';
(B) by striking ``$42,120'' and inserting ``$185,328'';
(C) by striking ``$50,310'' and inserting ``$221,364'';
(D) by striking ``$62,010'' and inserting ``$272,844'';
(E) by striking ``$70,200'' and inserting ``$308,880'';
(F) by striking ``, or not to exceed $17,460 per space'';
(G) by striking ``$43,875'' and inserting ``$193,050'';
(H) by striking ``$49,140'' and inserting ``$216,216'';
(I) by striking ``$60,255'' and inserting ``$265,122'';
(J) by striking ``$75,465'' and inserting ``$332,046''; and
(K) by striking ``$85,328'' and inserting ``$375,443'';
(3) in section 213(b)(2) (12 U.S.C. 1715e(b)(2))--
(A) by striking ``$41,207'' and inserting ``$181,311'';
(B) by striking ``$47,511'' and inserting ``$209,048'';
(C) by striking ``$57,300'' and inserting ``$252,120'';
(D) by striking ``$73,343'' and inserting ``$322,709'';
(E) by striking ``$81,708'' and inserting ``$359,515'';
(F) by striking ``$43,875'' and inserting ``$193,050'';
(G) by striking ``$49,710'' and inserting ``$218,724'';
(H) by striking ``$60,446'' and inserting ``$265,962'';
(I) by striking ``$78,197'' and inserting ``$344,067''; and
(J) by striking ``$85,836'' and inserting ``$377,678'';
(4) in section 220(d)(3)(B)(iii)(I) (12 U.S.C.
1715k(d)(3)(B)(iii)(I))--
(A) by striking ``$38,025'' and inserting ``$167,310'';
(B) by striking ``$42,120'' and inserting ``$185,328'';
(C) by striking ``$50,310'' and inserting ``$221,364'';
(D) by striking ``$62,010'' and inserting ``$272,844'';
(E) by striking ``$70,200'' and inserting ``$308,880'';
(F) by striking ``$43,875'' and inserting ``$193,050'';
(G) by striking ``$49,140'' and inserting ``$216,216'';
(H) by striking ``$60,255'' and inserting ``$265,122'';
(I) by striking ``$75,465'' and inserting ``$332,046''; and
(J) by striking ``$85,328'' and inserting ``$375,443'';
(5) in section 221(d)(4)(ii)(I) (12 U.S.C.
1715l(d)(4)(ii)(I))--
(A) by striking ``$37,843'' and inserting ``$166,509'';
(B) by striking ``$42,954'' and inserting ``$188,997'';
(C) by striking ``$51,920'' and inserting ``$228,448'';
(D) by striking ``$65,169'' and inserting ``$286,744'';
(E) by striking ``$73,846'' and inserting ``$324,922'';
(F) by striking ``$40,876'' and inserting ``$179,854'';
(G) by striking ``$46,859'' and inserting ``$206,180'';
(H) by striking ``$56,979'' and inserting ``$250,708'';
(I) by striking ``$73,710'' and inserting ``$324,324''; and
(J) by striking ``$80,913'' and inserting ``$356,017'';
(6) in section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A))--
(A) by striking ``$35,978'' and inserting ``$166,509'';
(B) by striking ``$40,220'' and inserting ``$188,997'';
(C) by striking ``$48,029'' and inserting ``$228,448'';
(D) by striking ``$57,798'' and inserting ``$286,744'';
(E) by striking ``$67,950'' and inserting ``$324,922'';
(F) by striking ``$40,876'' and inserting ``$179,854'';
(G) by striking ``$46,859'' and inserting ``$206,180'';
(H) by striking ``$56,979'' and inserting ``$250,708'';
(I) by striking ``$73,710'' and inserting ``$324,324''; and
(J) by striking ``$80,913'' and inserting ``$356,017''; and
(7) in section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A))--
(A) by striking ``$42,048'' and inserting ``$185,011'';
(B) by striking ``$48,481'' and inserting ``$213,316'';
(C) by striking ``$58,469'' and inserting ``$257,263'';
(D) by striking ``$74,840'' and inserting ``$329,296'';
(E) by striking ``$83,375'' and inserting ``$366,850'';
(F) by striking ``$44,250'' and inserting ``$194,700'';
(G) by striking ``$50,724'' and inserting ``$223,186'';
(H) by striking ``$61,680'' and inserting ``$271,392'';
(I) by striking ``$79,793'' and inserting ``$351,089''; and
(J) by striking ``$87,588'' and inserting ``$385,387''.
(b) Rule of Construction.--Nothing in this section or the
amendments made by this section may be construed to limit the authority
of the Secretary of Housing and Urban Development to revise the
statutory exceptions for high-cost percentage and high-cost areas
annual indexing.
(c) Multifamily Loan Limit Study.--The Commissioner of the Federal
Housing Administration, in consultation with the Secretary of Housing
and Urban Development, shall conduct a study to assess the following in
comparison to the loan limits prior to the amendments made under this
section:
(1) Whether the Commissioner has sufficient authority to
increase loan limits for each multifamily mortgage insurance
program at appropriate amounts, including to meet market demand.
(2) The impacts that multifamily loan limit increases have had,
if any, on--
(A) the General Insurance and Special Risk Insurance Fund;
(B) the change in volume of multifamily purchase and
construction lending that is insured by the Federal Housing
Administration; and
(C) subject to the availability of data, the year-over-year
change over the last 6 years in--
(i) median and average lending costs as well as rent
and house prices within the multifamily housing market; and
(ii) multifamily housing supply, including the number
of building permits issued as well as housing unit starts
and completions.
(d) Report.--Not later than 3 years after the date of enactment of
this Act, the Commissioner of the Federal Housing Administration shall
submit to Congress a report summarizing the findings of the
Commissioner for the study conducted under subsection (b).
SEC. 212. RENTAL ASSISTANCE DEMONSTRATION PROGRAM.
The language under the heading ``Rental Assistance Demonstration''
in the Department of Housing and Urban Development Appropriations Act,
2012 (Public Law 112-55; 125 Stat. 673) is amended--
(1) in the second proviso, by striking ``until September 30,
2029'' and inserting ``for fiscal year 2012 and each fiscal year
thereafter'';
(2) in the fourth proviso, by striking ``455,000'' and
inserting ``555,000'';
(3) in the twentieth proviso, as so designated before the date
of enactment of this Act, by striking ``or other means:'' and
inserting ``or other means, including the adoption of a mandatory
tenant lease and management plan addendum for a property with
assistance converted, if not otherwise covered by another program,
under this demonstration:''; and
(4) by striking ``vouchers to project-based vouchers.'' and
inserting ``vouchers to project-based vouchers: Provided further,
That the Secretary shall annually assess and publish findings
regarding the impact of the conversion of assistance under the
First Component of the demonstration with respect to the
preservation and improvement of public housing, the amount of
private sector leveraging resulting from such conversion
transactions, the prevalence of pre-conversion residents remaining
in or returning to the property following conversion, and the
effect of such conversion on tenants, including the impact of such
conversion on the rights maintained by tenants as enumerated in
regulations and other documents conferring rights upon tenants as
developed by the Secretary, and other matters the Secretary may
determine appropriate: Provided further, That the Secretary may
take remediative action or impose civil money penalties or other
administrative sanctions for material violations of a requirement
under the First and Second Components of this demonstration:
Provided further, That nothing in the matter under this heading
shall be construed to diminish, impair, or otherwise negatively
affect the Rental Assistance Demonstration property rights of
owners or rights of tenants, which shall remain enforceable by
tenants, as enumerated in current law, regulations, and other
agency guidance or notices as it relates to properties converted
under the First and Second Components of the Rental Assistance
Demonstration Program; Provided further, That any property owned by
the public housing agency shall be used to replace, create,
preserve, improve, or expand affordable housing supply, including
as part of mixed use developments, and no conversion under the
Rental Assistance Demonstration shall be used for sporting,
private, or for-profit purposes, excluding those which maintain or
expand housing supply which may use an affordable housing tax
credit or other housing affordability program.''.
SEC. 213. BUILD NOW ACT.
(a) Definitions.--In this section:
(1) Covered recipient.--The term ``covered recipient'' means a
metropolitan city or urban county, as those terms are defined in
section 102 of the Housing and Community Development Act of 1974
(42 U.S.C. 5302), that receives funds under section 106.
(2) Current annual growth rate.--The term ``current annual
growth rate'', with respect to an eligible recipient and a fiscal
year, means the average annual percentage increase in the number of
housing units in the jurisdiction of the eligible recipient, as
calculated by the Secretary, during the period--
(A) beginning with the third quarter of the sixth preceding
fiscal year; and
(B) ending with the third quarter of the preceding fiscal
year.
(3) Eligible recipient.--The term ``eligible recipient'' means
any covered recipient unless--
(A)(i) the median Small Area Fair Market Rent in the
jurisdiction of the covered recipient is at or below the 60th
percentile of median Small Area Fair Market Rents in the
jurisdictions of all covered recipients; and
(ii) the median home value in the jurisdiction of the
covered recipient is below the median home value for the United
States;
(B) the annual rental vacancy rate in the jurisdiction of
the covered recipient is greater than the national annual
rental vacancy rate for the most recent year available, as
published by the Bureau of the Census;
(C) during the 3-year period preceding the date on which
the Secretary allocates funds under section 106, the
jurisdiction of the covered recipient has been the subject of a
major disaster or emergency declaration under section 401 or
501, respectively, of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170, 5191); or
(D) the covered recipient lacks the legal authority to
enact or update zoning and permitting ordinances.
(4) Extremely high-growth recipient.--The term ``extremely
high-growth recipient'' means an eligible recipient for which the
current annual growth rate is at or above 4 percent.
(5) Housing growth improvement rate.--The term ``housing growth
improvement rate'', with respect to an eligible recipient and a
fiscal year, means the quotient of--
(A)(i) the current annual growth rate of the eligible
recipient, minus
(ii) the prior annual growth rate of the eligible
recipient; and
(B) the sum obtained by adding the absolute values of the
current annual growth rate and the prior annual growth rate of
the eligible recipient.
(6) Prior annual growth rate.--The term ``prior annual growth
rate'', with respect to an eligible recipient and a fiscal year,
means the average annual percentage increase in the number of
housing units in the jurisdiction of the eligible recipient, as
calculated by the Secretary, during the period--
(A) beginning with the third quarter of the 11th preceding
fiscal year; and
(B) ending with the third quarter of the sixth preceding
fiscal year.
(7) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(8) Section 106.--The term ``section 106'' means section 106 of
the Housing and Community Development Act of 1974 (42 U.S.C. 5306).
(b) Adjustments to Community Development Block Grant Allocations.--
(1) In general.--In allocating amounts to an eligible recipient
under section 106 for a fiscal year, the Secretary shall adjust the
allocation based on the housing growth improvement rate of the
eligible recipient, in accordance with paragraph (2) of this
subsection.
(2) Adjustments.--
(A) Housing growth improvement rate at or above median;
extremely high-growth recipients.--
(i) In general.--If, with respect to a fiscal year for
which the allocation under section 106 is being determined,
the housing growth improvement rate for an eligible
recipient is at or above the median housing growth
improvement rate for all eligible recipients other than
extremely high-growth recipients, or if an eligible
recipient is an extremely high-growth recipient, the
Secretary shall allocate to the eligible recipient for that
fiscal year, in addition to the amount that would otherwise
be allocated to the eligible recipient under section 106, a
bonus amount, as determined under clause (ii) of this
subparagraph.
(ii) Bonus amount.--For purposes of clause (i), the
bonus amount for an eligible recipient for a fiscal year
shall be equal to the product of--
(I) the aggregate amount by which allocations to
eligible recipients are decreased under subparagraph
(B) for that fiscal year; and
(II) the quotient of--
(aa) the difference in the number of housing
units, between the third quarter of the second
preceding fiscal year and the third quarter of the
preceding fiscal year, in the jurisdiction of the
eligible recipient, as calculated by the Secretary;
and
(bb) the difference in the number of housing
units, between the third quarter of the second
preceding fiscal year and the third quarter of the
preceding fiscal year, in the jurisdictions of all
eligible recipients that receive a bonus amount
under this paragraph, as calculated by the
Secretary.
(B) Housing growth improvement rate below median.--If, with
respect to a fiscal year for which the allocation under section
106 is being determined, the housing growth improvement rate
for an eligible recipient is below the median housing growth
improvement rate for all eligible recipients other than high-
growth outliers, the Secretary shall decrease the amount that
would otherwise be allocated to the eligible recipient under
section 106 for that fiscal year by 10 percent.
(c) Calculation of Housing Units.--
(1) Housing and urban development requirements.--In calculating
the number of housing units in the jurisdiction of an eligible
recipient under any provision of this section, the Secretary
shall--
(A) use the Current Address Count Listing Files and other
data products, as needed, of the Bureau of the Census tabulated
from the Master Address File; and
(B) make calculations at the block level, using boundaries
that reflect the most current boundaries.
(2) Census bureau and postal service requirements.--The Bureau
of the Census and the United States Postal Service shall provide
any relevant data to the Secretary upon request to assist the
Secretary in making a calculation described in paragraph (1).
(3) Adjustment of calculation periods.--The Secretary may
adjust the calculation periods under subparagraphs (A) and (B) of
subsection (a)(2), subparagraphs (A) and (B) of subsection (a)(6),
and items (aa) and (bb) of subsection (b)(2)(A)(ii)(II) by not more
than 2 months to achieve alignment with the data provided by the
Bureau of the Census.
(d) Annual Report on Housing Growth Improvement Rate.--Before
allocating funds under section 106 for a fiscal year, the Secretary
shall publish a report that--
(1) includes the housing growth improvement rate for each
eligible recipient; and
(2) lists, for the most recent fiscal year for which
allocations were made under section 106--
(A) the eligible recipients that received a bonus amount
under subsection (b)(2)(A); and
(B) the eligible recipients for which the allocation under
section 106 was decreased under subsection (b)(2)(B) of this
section.
(e) Notification; Implementation Dates.--
(1) Notification.--
(A) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify each eligible
recipient of the recipient's housing growth improvement rate
and whether that housing growth improvement rate is above, at,
or below the median housing growth improvement rate for all
eligible recipients other than extremely high-growth
recipients.
(B) Guidance.--As part of the notification under
subparagraph (A), the Secretary shall share guidance, including
resources developed by the Department of Housing and Urban
Development, on best practices and recommendations for policies
to reduce regulatory barriers to housing and increase housing
supply.
(2) Implementation dates.--Subsection (b) shall take effect
beginning with the third full fiscal year after the date of
enactment of this Act and remain in effect through fiscal year
2043.
(3) No effect on previous appropriations.--This section shall
not apply to amounts appropriated before the date of enactment of
this Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
SEC. 301. HOUSING SUPPLY EXPANSION ACT.
(a) In General.--Section 603(6) of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
5402(6)) is amended by striking ``on a permanent chassis'' and
inserting ``with or without a permanent chassis''.
(b) Standards for Manufactured Homes Built Without a Permanent
Chassis.--Section 604(a) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403(a)) is
amended by adding the following:
``(7) Standards for manufactured homes built without a
permanent chassis.--
``(A) In general.--The Secretary, in consultation with the
consensus committee, shall issue revised standards for
manufactured homes built without a permanent chassis using the
process described in paragraph (4).
``(B) Creating final standards.--The Secretary shall, after
consulting and conferring with the consensus committee,
establish standards to ensure that manufactured homes without a
permanent chassis have--
``(i) a distinct label, with revenue generated to be
deposited into the Manufactured Housing Fees Trust Fund
established under section 620(e)(1), to be issued by the
Secretary distinguishing manufactured home built without a
permanent chassis from manufactured homes built on a
permanent chassis;
``(ii) a data plate, as described in section 3280.5 of
title 24, Code of Federal Regulations (or any successor
regulation), distinguishing manufactured homes built
without a permanent chassis from manufactured homes built
on a permanent chassis; and
``(iii) a notation on any invoice produced by the
manufacturer of a manufactured home that is distinguishable
from the invoice for a manufactured home constructed with a
permanent chassis.''.
(c) Manufactured Home Certifications.--Section 604 of the National
Manufactured Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5403) is amended by adding at the end the following:
``(i) Manufactured Home Certifications.--
``(1) In general.--
``(A) Initial certification.--Subject to subparagraph (B),
not later than 1 year after the date of enactment of the 21st
Century ROAD to Housing Act, a State shall submit to the
Secretary an initial certification that the laws and
regulations of the State--
``(i) treat any manufactured home in parity with a
manufactured home (as defined and regulated by the State);
and
``(ii) subject a manufactured home without a permanent
chassis to the same laws and regulations of the State as a
manufactured home built on a permanent chassis, including
with respect to financing, title, insurance, manufacture,
sale, taxes, transportation, installation, and other areas
as the Secretary determines, after consultation with and
approval by the consensus committee, are necessary to give
effect to the purpose of this section.
``(B) State plan submission.--Any State plan submitted
under section 623(b) shall contain the required State
certification under subparagraph (A) and, if contained therein,
no additional or State certification under subparagraph (A) or
paragraph (3).
``(C) Extended deadline.--With respect to a State with a
legislature that meets biennially, the deadline for the
submission of the initial certification required under
subparagraph (A) shall be 2 years after the date of enactment
of the 21st Century ROAD to Housing Act.
``(D) Late certification.--
``(i) No waiver.--The Secretary may not waive the
prohibition described in paragraph (5)(B) with respect to a
certification submitted after the deadline under
subparagraph (A) or paragraph (3) unless the Secretary
approves the late certification.
``(ii) Rule of construction.--Nothing in this
subsection shall be construed to prevent a State from
submitting the initial certification required under
subparagraph (A) after the required deadline under that
subparagraph.
``(2) Form of state certification not presented in a state
plan.--The initial certification required under paragraph (1)(A),
if not submitted with a State plan under paragraph (1)(B), shall
contain, in a form prescribed by the Secretary, an attestation by
an official that the State has taken the steps necessary to ensure
the veracity of the certification required under paragraph (1)(A),
including, as necessary, by--
``(A) amending the definition of `manufactured home' in the
laws and regulations of the State; and
``(B) directing State agencies to amend the definition of
`manufactured home' in regulations.
``(3) Annual recertification.--Not later than a date to be
determined by the Secretary each year, a State shall submit to the
Secretary an additional certification that--
``(A) confirms the accuracy of the initial certification
submitted under subparagraph (A) or (B) of paragraph (1); and
``(B) certifies that any new laws or regulations enacted or
adopted by the State since the date of the previous
certification do not change the veracity of the initial
certification submitted under paragraph (1)(A).
``(4) List.--The Secretary shall publish and maintain in the
Federal Register and on the website of the Department of Housing
and Urban Development a list of States that are up to date with the
submission of initial and subsequent certifications required under
this subsection.
``(5) Prohibition.--
``(A) Definition.--In this paragraph, the term `covered
manufactured home' means a home that is--
``(i) not considered a manufactured home under the laws
and regulations of a State because the home is constructed
without a permanent chassis;
``(ii) considered a manufactured home under the
definition of the term in section 603; and
``(iii) constructed after the date of enactment of the
21st Century ROAD to Housing Act.
``(B) Building, installation, and sale.--If a State does
not submit a certification under paragraph (1)(A) or (3) by the
date on which those certifications are required to be
submitted--
``(i) with respect to a State in which the State
administers the installation of manufactured homes, the
State shall prohibit the manufacture, installation, or sale
of a covered manufactured home within the State; and
``(ii) with respect to a State in which the Secretary
administers the installation of manufactured homes, the
State and the Secretary shall prohibit the manufacture,
installation, or sale of a covered manufactured home within
the State.''.
(d) Other Federal Laws Regulating Manufactured Homes.--
(1) In general.--The Secretary of Housing and Urban Development
may coordinate with the heads of other Federal agencies to ensure
that Federal agencies treat a manufactured home (as defined in
Federal laws and regulations other than section 603 of the National
Manufactured Housing Construction and Safety Standards Act of 1974
(42 U.S.C. 5402)) in the same manner as a manufactured home (as
defined in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402), as
amended by this Act).
(2) Energy efficiency standards.--
(A) Manufactured home defined.--In this paragraph, the term
``manufactured home'' has the meaning given the term in section
603 of the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5402), as amended by
this Act.
(B) Process.--No energy efficiency standards for
manufactured homes developed by any Federal agency shall have
legal effect unless and until adopted by the Department of
Housing and Urban Development pursuant to the consensus
standards and regulatory development process described in
section 604(a)(2) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C.
5403(a)(2)).
(C) Minimum standards.--The Secretary of Housing and Urban
Development shall--
(i) not later than 1 year after the date of enactment
of this Act, adopt minimum energy efficiency standards for
manufactured homes; and
(ii) not less frequently than once every 3 years after
adopting the standards under clause (i), update those
standards.
(e) Assistance to States.--Section 609 of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5408)
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) model guidance to support the submission of the
certification required under section 604(i).''.
(f) Preemption.--Nothing in this section or the amendments made by
this section may be construed as limiting the scope of Federal
preemption under section 604(d) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403(d)).
SEC. 302. MODULAR HOUSING PRODUCTION ACT.
(a) Definitions.--In this section:
(1) Manufactured home.--The term ``manufactured home'' has the
meaning given the term in section 603 of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
5402).
(2) Modular home.--The term ``modular home'' means a home that
is constructed in a factory in 1 or more modules, each of which
meets applicable State and local building codes of the area in
which the home will be located, and that are transported to the
home building site, installed on foundations, and completed.
(3) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) FHA Construction Financing Programs.--
(1) In general.--The Secretary shall conduct a review of
Federal Housing Administration construction financing programs to
identify barriers to the use of modular home methods.
(2) Requirements.--In conducting the review under paragraph
(1), the Secretary shall--
(A) identify and evaluate regulatory and programmatic
features that restrict participation in construction financing
programs by modular home developers, including construction
draw schedules; and
(B) identify administrative measures authorized under
section 525 of the National Housing Act (12 U.S.C. 1735f-3) to
facilitate program utilization by modular home developers.
(3) Report.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall publish a report that describes
the results of the review conducted under paragraph (1), which
shall include a description of programmatic and policy changes that
the Secretary recommends to reduce or eliminate identified barriers
to the use of modular home methods in Federal Housing
Administration construction financing programs.
(4) Rulemaking.--
(A) In general.--Not later than 120 days after the date on
which the Secretary publishes the report under paragraph (3),
the Secretary shall initiate a rulemaking to examine an
alternative draw schedule for construction financing loans
provided to modular and manufactured home developers, which
shall include the ability for interested stakeholders to
provide robust public comment.
(B) Determination.--Following the period for public comment
under subparagraph (A), the Secretary shall--
(i) issue a final rule regarding an alternative draw
schedule described in subparagraph (A); or
(ii) provide an explanation as to why the rule shall
not become final.
(c) Standardized Uniform Commercial Code for Modular Homes.--The
Secretary may award a grant to study the design and feasibility of a
standardized uniform commercial code for modular homes, which shall
evaluate--
(1) the utility of a standardized coding system for serializing
and securing modules, streamlining design and construction, and
improving modular home innovation; and
(2) a means to coordinate a standardized code with financing
incentives.
SEC. 303. PROPERTY IMPROVEMENT AND MANUFACTURED HOUSING LOAN
MODERNIZATION ACT.
(a) National Housing Act Amendments.--
(1) In general.--Section 2 of the National Housing Act (12
U.S.C. 1703) is amended--
(A) in subsection (a), by inserting ``construction of
additional or accessory dwelling units, as defined by the
Secretary,'' after ``energy conserving improvements,''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) by striking subparagraph (A) and inserting the
following:
``(A) $75,000 if made for the purpose of financing alterations,
repairs, and improvements upon or in connection with an existing
single-family structure, including a manufactured home;'';
(II) in subparagraph (B)--
(aa) by striking ``$60,000'' and inserting
``$150,000'';
(bb) by striking ``$12,000'' and inserting
``$37,500''; and
(cc) by striking ``an apartment house or'';
(III) by striking subparagraphs (C) and (D) and
inserting the following:
``(C)(i) $106,405 if made for the purpose of financing the
purchase of a single-section manufactured home; and
``(ii) $195,322 if made for the purpose of financing the
purchase of a multi-section manufactured home;
``(D)(i) $149,782 if made for the purpose of financing the
purchase of a single-section manufactured home and a suitably
developed lot on which to place the home; and
``(ii) $238,699 if made for the purpose of financing the
purchase of a multi-section manufactured home and a suitably
developed lot on which to place the home;'';
(IV) in subparagraph (E)--
(aa) by striking ``$23,226'' and inserting
``$43,377''; and
(bb) by striking the period at the end and
inserting a semicolon;
(V) in subparagraph (F), by striking ``and'' at the
end;
(VI) in subparagraph (G), by striking the period at
the end and inserting ``; and''; and
(VII) by inserting after subparagraph (G) the
following:
``(H) such principal amount as the Secretary may prescribe if
made for the purpose of financing the construction of an accessory
dwelling unit.'';
(ii) in the matter immediately preceding paragraph
(2)--
(I) by striking ``regulation'' and inserting
``notice'';
(II) by striking ``increase'' and inserting
``set'';
(III) by striking ``(A)(ii), (C), (D), and (E)''
and inserting ``(A) through (H)'';
(IV) by inserting ``, or as necessary to achieve
the goals of the Federal Housing Administration,
periodically reset the dollar amount limitations in
subparagraphs (A) through (H) based on justification
and methodology set forth in advance by regulation''
before the period at the end; and
(V) by adjusting the margins appropriately;
(iii) in paragraph (3), by striking ``exceeds--'' and
all that follows through the period at the end and
inserting ``exceeds such period of time as determined by
the Secretary, not to exceed 30 years.'';
(iv) by striking paragraph (9) and inserting the
following:
``(9) Annual indexing of certain dollar amount limitations.--
The Secretary shall develop or choose 1 or more methods of indexing
in order to annually set the loan limits established in paragraph
(1), based on data the Secretary determines is appropriate for
purposes of this section.''; and
(v) in paragraph (11), by striking ``lease--'' and all
that follows through the period at the end and inserting
``lease meets the terms and conditions established by the
Secretary''.
(2) Deadline for development or choice of new index; interim
index.--
(A) Deadline for development or choice of new index.--Not
later than 1 year after the date of enactment of this Act, the
Secretary of Housing and Urban Development shall develop or
choose 1 or more methods of indexing as required under section
2(b)(9) of the National Housing Act (12 U.S.C. 1703(b)(9)), as
amended by paragraph (1) of this subsection.
(B) Interim index.--During the period beginning on the date
of enactment of this Act and ending on the date on which the
Secretary of Housing and Urban Development develops or chooses
1 or more methods of indexing as required under section 2(b)(9)
of the National Housing Act (12 U.S.C. 1703(b)(9)), as amended
by paragraph (1) of this subsection, the method of indexing
established by the Secretary under such section 2(b)(9) before
the date of enactment of this Act shall apply.
(b) HUD Study of Offsite Construction.--
(1) Definitions.--In this subsection:
(A) Offsite construction housing.--The term ``offsite
construction housing'' includes manufactured homes and modular
homes.
(B) Manufactured home.--The term ``manufactured home''
means any home constructed in accordance with the construction
and safety standards established under the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5401 et seq.).
(C) Modular home.--The term ``modular home'' means a home
that is constructed in a factory in 1 or more modules, each of
which meets applicable State and local building codes of the
area in which the home will be located, and that are
transported to the home building site, installed on
foundations, and completed.
(2) Study.--Not later than 1 year after the date of enactment
of this section, the Secretary of Housing and Urban Development
shall conduct a study and submit to Congress a report on the cost
effectiveness of offsite construction housing that includes--
(A) an analysis of the advantages and the impact of
centralization in a factory and transportation to a
construction site on cost, precision, and materials waste;
(B) the extent to which offsite construction housing meets
housing quality standards under the National Standards for the
Physical Inspection of Real Estate, or other standards as the
Secretary may prescribe, compared to the extent for site-built
homes, for such standards;
(C) the expected replacement and maintenance costs over the
first 40 years of life of offsite construction homes compared
to those costs for site-built homes; and
(D) opportunities for use beyond single-family housing,
such as applications in accessory dwelling units, two- to four-
unit housing, and large multifamily housing.
SEC. 304. PRICE ACT.
(a) In General.--Title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.) is amended--
(1) in section 105(a) (42 U.S.C. 5305(a)), in the matter
preceding paragraph (1), by striking ``Activities'' and inserting
``Unless otherwise authorized under section 123, activities''; and
(2) by adding at the end the following:
``SEC. 123. PRESERVATION AND REINVESTMENT FOR COMMUNITY
ENHANCEMENT.
``(a) Definitions.--In this section:
``(1) Community development financial institution.--The term
`community development financial institution' means an institution
that has been certified as a community development financial
institution (as defined in section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4702)) by the Secretary of the Treasury.
``(2) Eligible manufactured housing community.--The term
`eligible manufactured housing community' means a manufactured
housing community that--
``(A) is affordable to low- and moderate-income persons, as
determined by the Secretary, but not more than 120 percent of
the area median income; and
``(B)(i) is owned by the residents of the manufactured
housing community through a resident-controlled entity such as
a resident-owned cooperative; or
``(ii) will be maintained as such a community, and remain
affordable for low- and moderate-income persons, to the maximum
extent practicable and for the longest period feasible.
``(3) Eligible recipient.--The term `eligible recipient'
means--
``(A) an eligible manufactured housing community;
``(B) a unit of general local government;
``(C) a housing authority;
``(D) a resident-owned community;
``(E) a resident-owned cooperative;
``(F) a nonprofit entity with housing expertise or a
consortium of such entities;
``(G) a community development financial institution;
``(H) an Indian tribe;
``(I) a tribally designated housing entity;
``(J) the Department of Hawaiian Home Lands;
``(K) a State; or
``(L) any other entity that is--
``(i) an owner-operator of an eligible manufactured
housing community; and
``(ii) working with an eligible manufactured housing
community.
``(4) Indian tribe.--The term `Indian tribe' has the meaning
given the term `Indian tribe' in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4103).
``(5) Manufactured housing community.--The term `manufactured
housing community' means--
``(A) any community, court, park, or other land under
unified ownership developed and accommodating, or equipped to
accommodate, the placement of manufactured homes, where--
``(i) spaces within such community are or will be
primarily used for residential occupancy;
``(ii) all homes within the community are used for
permanent occupancy; and
``(iii) a majority of such occupied spaces within the
community are occupied by manufactured homes, which may
include homes constructed prior to enactment of the
Manufactured Home Construction and Safety Standards; or
``(B) any community that meets the definition of
manufactured housing community used for programs similar to the
program under this section.
``(6) Resident health, safety, and accessibility activities.--
The term `resident health, safety, and accessibility activities'
means the reconstruction, repair, or replacement of manufactured
housing and manufactured housing communities to--
``(A) protect the health and safety of residents;
``(B) address weatherization and reduce utility costs; or
``(C) address accessibility needs for residents with
disabilities.
``(7) Tribally designated housing entity.--The term `tribally
designated housing entity' has the meaning given the term in
section 4 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103).
``(b) Establishment.--There is authorized a competitive grant
program that the Secretary shall, by notice, carry out to make awards
utilizing funds appropriated for such purpose to eligible recipients to
carry out eligible projects for development of or improvements to
eligible manufactured housing communities.
``(c) Eligible Projects.--
``(1) In general.--Amounts from grants under this section may
be used for--
``(A) community infrastructure, facilities, utilities, and
other land improvements in or serving an eligible manufactured
housing community;
``(B) reconstruction or repair of existing housing within
an eligible manufactured housing community;
``(C) replacement of homes within an eligible manufactured
housing community;
``(D) planning;
``(E) resident health, safety, and accessibility activities
in homes in an eligible manufactured housing community;
``(F) land and site acquisition and infrastructure for
expansion or construction of an eligible manufactured housing
community;
``(G) resident and community services, including relocation
assistance, eviction prevention, and down payment assistance;
and
``(H) any other activity that--
``(i) is approved by the Secretary consistent with the
requirements under this section;
``(ii) improves the overall living conditions of an
eligible manufactured housing community, which may include
the addition or enhancement of shared spaces such as
community centers, recreational areas, or other facilities
that support resident well-being and community engagement;
and
``(iii) is necessary to protect the health and safety
of the residents of the eligible manufactured housing
community and the long-term affordability and
sustainability of the community.
``(2) Replacement.--For purposes of subparagraphs (B) and (C)
of paragraph (1), grants under this section--
``(A) may not be used for rehabilitation or modernization
of units that were built before June 15, 1976; and
``(B) may only be used for disposition and replacement of
units described in subparagraph (A), provided that any
replacement housing complies with the Manufactured Home
Construction and Safety Standards or is another allowed type of
home, as determined by the Secretary.
``(d) Priority.--In awarding grants under this section, the
Secretary shall prioritize applicants that will carry out activities
that primarily benefit low- and moderate-income residents and preserve
long-term housing affordability for residents of eligible manufactured
housing communities.
``(e) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of law or regulation that the Secretary
administers in connection with use of amounts made available under this
section other than requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a finding
that the waiver or alternative requirement is not inconsistent with the
overall purposes of this section and that the waiver or alternative
requirement is necessary to facilitate the use of amounts made
available under this section.
``(f) Implementation.--
``(1) In general.--Any grant made under this section shall be
made pursuant to criteria for selection of recipients of such
grants that the Secretary shall by regulation establish and publish
together with any notification of availability of amounts under
this section.
``(2) Set-aside of grant amounts.--The Secretary may set aside
amounts provided under this section for grants to Indian tribes,
tribally designated housing entities, and the Department of
Hawaiian Home Lands.
``(g) Sunset.--The program established under this section shall
terminate on the date that is 7 years after the date of enactment of
this section.''.
(b) Application.--Grants made under section 123 of the Housing and
Community Development Act of 1974, as added by subsection (a), after
the date of enactment of this Act shall be carried out using amounts
appropriated after the date of enactment of this Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
SEC. 401. CREATING INCENTIVES FOR SMALL-DOLLAR LOAN ORIGINATORS.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of the
Bureau of Consumer Financial Protection.
(2) Small-dollar mortgage.--The term ``small-dollar mortgage''
means a mortgage loan having an original principal obligation of
not more than $100,000 that is--
(A) secured by real property designed for 1 to 4 dwelling
units; and
(B)(i) insured by the Federal Housing Administration under
title II of the National Housing Act (12 U.S.C. 1707 et seq.);
(ii) made, guaranteed, or insured by the Department of
Veterans Affairs;
(iii) made, guaranteed, or insured by the Department of
Agriculture; or
(iv) eligible to be purchased or securitized by the Federal
Home Loan Mortgage Corporation or the Federal National Mortgage
Association.
(b) Requirement Regarding Loan Originator Compensation Practices.--
Not later than 270 days after the date of enactment of this Act, the
Director shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report on loan originator compensation
practices throughout the residential mortgage market, including the
relative frequency of loan originators being compensated--
(1) with a salary;
(2) with a commission reflecting a fixed percentage of the
amount of credit extended;
(3) with a commission based on a factor other than a fixed
percentage of the amount of credit extended;
(4) with a combination of salary and commission;
(5) on a loan volume basis; and
(6) with a commission reflecting a percentage of the amount of
credit extended, for which a minimum or maximum compensation amount
is set.
(c) Community Development Financial Institution Loan Originators.--
In carrying out the report required under subsection (b), the Secretary
shall, in coordination with relevant Federal agencies that regulate
federally backed small-dollar mortgages and in consultation with the
Director of the Community Development Financial Institutions Fund
established under section 104 of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4703), give due
consideration to the practices for compensating loan originators that
are employed by or originate loans on behalf of community development
financial institutions.
(d) Contents.--The report required under subsection (b) shall
include--
(1) data and other analyses regarding the effect of the
approaches to loan originator compensation described in subsection
(b) on the availability of small-dollar mortgage loans; and
(2) an analysis and a discussion regarding potential barriers
to small-dollar mortgage lending.
SEC. 402. SMALL-DOLLAR MORTGAGE POINTS AND FEES.
(a) Small-dollar Mortgage Defined.--In this section, the term
``small-dollar mortgage'' means a mortgage with an original principal
obligation of less than $100,000.
(b) Amendments.--Not later than 270 days after the date of
enactment of this Act, the Director of the Bureau of Consumer Financial
Protection, in consultation with the Secretary of Housing and Urban
Development and the Director of the Federal Housing Finance Agency,
shall evaluate the impact of the thresholds under section 1026.43 of
title 12, Code of Federal Regulations (as in effect on the date of
enactment of this Act), on small-dollar mortgage originations.
SEC. 403. APPRAISAL INDUSTRY IMPROVEMENT ACT.
(a) Appraisal Standards.--
(1) Certification or licensing.--
(A) In general.--Section 202(g)(5) of the National Housing
Act (12 U.S.C. 1708(g)(5)) is amended--
(i) by moving the paragraph two ems to the left; and
(ii) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) be certified or licensed by the State in which the
property to be appraised is located, except that a Federal employee
who has as their primary duty conducting appraisal-related
activities and who chooses to become a State-licensed or certified
real estate appraiser need only to be licensed or certified in 1
State or territory to perform appraisals on mortgages insured by
the Federal Housing Administration in all States and territories;
``(B) meet the requirements under the competency rule set forth
in the Uniform Standards of Professional Appraisal Practice before
accepting an assignment; and
``(C) have demonstrated verifiable education in the appraisal
requirements established by the Federal Housing Administration
under this subsection, which shall include the completion of a
course or seminar that educates appraisers on those appraisal
requirements, which shall be provided by--
``(i) the Federal Housing Administration; or
``(ii) a third party, if the course is approved by the
Secretary or a State appraiser certifying or licensing
agency.''.
(B) Application.--Subparagraph (C) of section 202(g)(5) of
the National Housing Act (12 U.S.C. 1708(g)(5)), as added by
subparagraph (A), shall not apply with respect to any certified
appraiser approved by the Federal Housing Administration to
conduct appraisals on property securing a mortgage to be
insured by the Federal Housing Administration on or before the
effective date described in paragraph (3)(C).
(2) Compliance with verifiable education and competency
requirements.--On and after the effective date described in
paragraph (3)(C), no appraiser may conduct an appraisal on a
property securing a mortgage to be insured by the Federal Housing
Administration unless--
(A) the appraiser is in compliance with the requirements of
subparagraphs (A) and (B) of section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)), as amended by paragraph
(1); and
(B) if the appraiser was not approved by the Federal
Housing Administration to conduct appraisals on mortgages
insured by the Federal Housing Administration before the date
on which the mortgagee letter or guidance takes effect under
paragraph (3)(C), the appraiser is in compliance with
subparagraph (C) of such section 202(g)(5).
(3) Implementation.--Not later than the 240 days after the date
of enactment of this Act, the Secretary of Housing and Urban
Development shall issue a mortgagee letter or guidance that--
(A) implements the amendments made by paragraph (1);
(B) clearly sets forth all of the specific requirements
under section 202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as amended by paragraph (1), for approval to
conduct appraisals on property secured by a mortgage to be
insured by the Federal Housing Administration, which shall
include--
(i) providing that, before the effective date of the
mortgagee letter or guidance, compliance with the
requirements under subparagraphs (A), (B), and (C) of such
section 202(g)(5), as amended by paragraph (1), shall be
considered to fulfill the requirements under such
subparagraphs; and
(ii) providing a method for appraisers to demonstrate
such prior compliance; and
(C) takes effect not later than the date that is 180 days
after the date on which the Secretary issues the mortgagee
letter or guidance.
(b) Annual Registry Fees for Appraisal Management Companies.--
Section 1109(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter
following clause (ii) of paragraph (4)(B), by adding at the end the
following: ``Subject to the approval of the Council, the Appraisal
Subcommittee may adjust fees established under clause (i) or (ii) to
carry out its functions under this Act.''.
(c) State Credentialed Trainees.--
(1) Maintenance on national registry.--Section 1103(a) of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3332(a)) is amended--
(A) in paragraph (3)--
(i) by inserting ``and State credentialed trainee
appraisers'' after ``licensed appraisers''; and
(ii) by striking ``and'' at the end;
(B) by striking paragraph (4);
(C) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively; and
(D) in paragraph (4), as so redesignated--
(i) by striking ``year. The report shall also detail''
and inserting ``year, detailing'';
(ii) by striking ``provide'' and inserting
``provides''; and
(iii) by striking the period at the end and inserting
``; and''.
(2) Annual registry fees.--
(A) In general.--Section 1109 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338)
is amended--
(i) in the section heading, by striking ``certified or
licensed'' and inserting ``, certified, licensed, and
credentialed trainee''; and
(ii) in subsection (a)--
(I) in paragraph (1), by inserting ``, and in the
case of a State with a supervisory or trainee program,
a roster listing individuals who have received a State
trainee credential'' after ``this title''; and
(II) by striking paragraph (2) and inserting the
following:
``(2) transmit reports on the issuance and renewal of licenses,
certifications, credentials, sanctions, and disciplinary actions,
including license, credential, and certification revocations, on a
timely basis to the national registry of the Appraisal
Subcommittee;''.
(B) Rule of construction.--Nothing in the amendments made
by subparagraph (A) shall require a State to establish or
operate a program for State credentialed trainee appraisers, as
defined in paragraph (12) of section 1121 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as
added by paragraph (4) of this subsection.
(3) Transactions requiring the services of a state certified
appraiser.--Section 1113 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--
(A) by striking ``In determining'' and inserting ``(a) In
General.--In determining''; and
(B) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In performing
an appraisal under this section, a State certified appraiser may use
the assistance of a State credentialed trainee appraiser or an
unlicensed trainee appraiser, except that the State certified appraiser
assisted by a trainee shall be liable for appraisal and valuation
work.''.
(4) Definition.--Section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is
amended by adding at the end the following:
``(12) State credentialed trainee appraiser.--The term `State
credentialed trainee appraiser' means an individual who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser certifying and
licensing agency.''.
(d) Grants for Workforce and Training.--Section 1109(b) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3338(b)) is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies and post-secondary institutions, including trade
and polytechnic schools, to support the carrying out of education
and training activities or other activities related to addressing
appraiser industry workforce needs, including recruiting and
retaining workforce talent, such as through scholarship assistance
and career pipeline development, and such agencies shall report on
the use of funds and outcomes.''.
(e) Appraisal Subcommittee.--Section 1011 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is
amended, in the first sentence, by inserting ``the Department of
Veterans Affairs, the Rural Housing Service of the Department of
Agriculture, the Department of Housing and Urban Development,'' after
``Financial Protection,''.
SEC. 404. HELPING MORE FAMILIES SAVE ACT.
Section 23 of the United States Housing Act of 1937 (42 U.S.C.
1437u) is amended by adding at the end the following:
``(p) Escrow Expansion Pilot Program.--
``(1) Definitions.--In this subsection:
``(A) Covered family.--The term `covered family' means a
family that receives assistance under section 8 or 9 of this
Act and is enrolled in the Pilot Program.
``(B) Eligible entity.--The term `eligible entity' means an
entity described in subsection (c)(2).
``(C) Pilot program.--The term `Pilot Program' means the
Pilot Program established under paragraph (2).
``(D) Welfare assistance.--The term `welfare assistance'
has the meaning given the term in section 984.103 of title 24,
Code of Federal Regulations, or any successor regulation.
``(2) Establishment.--The Secretary may establish a pilot
program under which the Secretary shall select not more than 25
eligible entities to establish and manage escrow accounts for not
more than 5,000 covered families, in accordance with this
subsection.
``(3) Escrow accounts.--
``(A) In general.--An eligible entity selected to
participate in the Pilot Program--
``(i) shall establish an interest-bearing escrow
account and place into the account an amount equal to any
increase in the amount of rent paid by each covered family
in accordance with the provisions of section 3, 8(o), or
8(y), as applicable, that is attributable to increases in
earned income by the covered families during the
participation of each covered family in the Pilot Program;
and
``(ii) notwithstanding any other provision of law, may
use funds it controls under section 8 or 9 for purposes of
making the escrow deposit for covered families assisted
under, or residing in units assisted under, section 8 or 9,
respectively, provided such funds are offset by the
increase in the amount of rent paid by the covered family.
``(B) Income limitation.--An eligible entity may not escrow
any amounts for any covered family whose adjusted income
exceeds 80 percent of the area median income at the time of
enrollment.
``(C) Withdrawals.--A covered family may withdraw funds,
including interest earned, from an escrow account established
by an eligible entity under the Pilot Program--
``(i) after the covered family ceases to receive
welfare assistance; and
``(ii)(I) not earlier than the date that is 5 years
after the date on which the eligible entity establishes the
escrow account under this subsection;
``(II) not later than the date that is 7 years after
the date on which the eligible entity establishes the
escrow account under this subsection, if the covered family
chooses to continue to participate in the Pilot Program
after the date that is 5 years after the date on which the
eligible entity establishes the escrow account;
``(III) on the date the covered family ceases to
receive housing assistance under section 8 or 9, if such
date is earlier than 5 years after the date on which the
eligible entity establishes the escrow account;
``(IV) earlier than 5 years after the date on which the
eligible entity establishes the escrow account, if the
covered family is using the funds to advance a self-
sufficiency goal as approved by the eligible entity;
``(V) for any reason listed under section 984.303(k) of
title 24, Code of Federal Regulations; or
``(VI) under other circumstances in which the Secretary
determines an exemption for good cause is warranted.
``(D) Interim recertification.--For purposes of the Pilot
Program, a covered family may recertify the income of the
covered family multiple times per year at the request of the
participating family, as determined by the Secretary, and not
less frequently than once per year, unless the eligible entity
has established an alternative rent structure with approval
from the Secretary.
``(E) Contract or plan.--A covered family is not required
to complete a standard contract of participation or an
individual training and services plan in order to participate
in the Pilot Program.
``(4) Effect of increases in family income.--Any increase in
the earned income of a covered family during the enrollment of the
family in the Pilot Program may not be considered as income or a
resource for purposes of eligibility of the family for other
benefits, or amount of benefits payable to the family, under any
program administered by the Secretary.
``(5) Application.--
``(A) In general.--An eligible entity seeking to
participate in the Pilot Program shall submit to the Secretary
an application--
``(i) at such time, in such manner, and containing such
information as the Secretary may require by notice; and
``(ii) that includes the number of proposed covered
families to be served by the eligible entity under this
subsection.
``(B) Geographic and entity variety.--The Secretary shall
ensure that eligible entities selected to participate in the
Pilot Program--
``(i) are located across various States and in both
urban and rural areas; and
``(ii) vary by size and type, including both public
housing agencies and private owners of projects receiving
project-based rental assistance under section 8.
``(6) Notification and opt-out.--An eligible entity
participating in the Pilot Program shall--
``(A) notify covered families of their enrollment in the
Pilot Program;
``(B) provide covered families with a detailed description
of the Pilot Program, including how the Pilot Program will
impact their rent and finances;
``(C) inform covered families that the families cannot
simultaneously participate in the Pilot Program and the Family
Self-Sufficiency program under this section; and
``(D) provide covered families with the ability to elect
not to participate in the Pilot Program--
``(i) not less than 2 weeks before the date on which
the escrow account is established under paragraph (3); and
``(ii) at any point during the duration of the Pilot
Program.
``(7) Maximum rents.--During the term of participation by a
covered family in the Pilot Program, the amount of rent paid by the
covered family shall be calculated under the rental provisions of
section 3 or 8(o), as applicable.
``(8) Pilot program timeline.--
``(A) Awards.--Not later than 1 year after establishing the
Pilot Program, the Secretary shall select the eligible entities
to participate in the Pilot Program.
``(B) Establishment and term of accounts.--An eligible
entity selected to participate in the Pilot Program shall--
``(i) not later than 6 months after selection,
establish escrow accounts under paragraph (3) for covered
families; and
``(ii) maintain those escrow accounts for not less than
5 years, or until a determination is made for termination
with FSS escrow disbursement under section 984.303(k) of
title 24, Code of Federal Regulations, or until the date
the family ceases to receive assistance under section 8 or
9, and, at the discretion of the covered family, not more
than 7 years after the date on which the escrow account is
established.
``(9) Nonparticipation and housing assistance.--
``(A) In general.--Assistance under section 8 or 9 for a
family that elects not to participate in the Pilot Program
shall not be delayed or denied by reason of such election.
``(B) No termination.--Housing assistance may not be
terminated as a consequence of participating, or not
participating, in the Pilot Program under this subsection for
any period.
``(10) Study.--Not later than 10 years after the date the
Secretary selects eligible entities to participate in the Pilot
Program under this subsection, the Secretary shall, if awards were
made, conduct a study and submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report on
outcomes for covered families under the Pilot Program, which shall
evaluate the effectiveness of the Pilot Program in assisting
families to achieve economic independence and self-sufficiency, and
the impact coaching and supportive services, or the lack thereof,
had on individual incomes.
``(11) Waivers.--To allow selected eligible entities to
effectively administer the Pilot Program and make the required
escrow account deposits under this subsection, the Secretary may
waive requirements under this section.
``(12) Termination.--The Pilot Program under this subsection
shall terminate on the date that is 10 years after the date of
enactment of this subsection.
``(13) Eligible uses of appropriations.--Subject to the
appropriation of funds, the Secretary may use funds--
``(A) for technical assistance related to implementation of
the Pilot Program; and
``(B) to carry out an evaluation of the Pilot Program under
paragraph (10).''.
SEC. 405. CHOICE IN AFFORDABLE HOUSING ACT.
(a) Satisfaction of Inspection Requirements Through Participation
in Other Housing Programs.--Section 8(o)(8) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended by adding at the
end the following:
``(I) Satisfaction of inspection requirements through
participation in other housing programs.--
``(i) Low-income housing tax credit-financed
buildings.--A dwelling unit shall be deemed to meet the
inspection requirements under this paragraph if--
``(I) the dwelling unit is in a building, the
acquisition, rehabilitation, or construction of which
was done by a building owner who may be eligible for
low-income housing credits because the building had
been allocated a housing credit dollar amount under
section 42(h) of the Internal Revenue Code of 1986 or
is described in section 42(h)(4) of such Code
(concerning buildings that meet a criterion for a
certain amount of tax-exempt financing);
``(II) the dwelling unit, during the preceding 12-
month period, was physically inspected and satisfied
the suitability-for-occupancy requirement in section
42(i)(3)(B)(ii) of such Code; and
``(III) the applicable public housing agency
performed the inspection itself or is able to obtain
the results of the inspection described in subclause
(II).
``(ii) Home investment partnerships program.--A
dwelling shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is assisted under the HOME
Investment Partnerships Program under title II of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12721 et seq.);
``(II) the dwelling unit was physically inspected
and passed inspection as part of the program described
in subclause (I) during the preceding 12-month period;
and
``(III) the applicable public housing agency is
able to obtain the results of the inspection described
in subclause (II).
``(iii) Rural housing service.--A dwelling unit shall
be deemed to meet the inspection requirements under this
paragraph if--
``(I) the dwelling unit is assisted by the Rural
Housing Service of the Department of Agriculture;
``(II) the dwelling unit was physically inspected
and passed inspection in connection with the assistance
described in subclause (I) during the preceding 12-
month period; and
``(III) the applicable public housing agency is
able to obtain the results of the inspection described
in subclause (II).
``(iv) Remote or video inspections.--When complying
with inspection requirements for a housing unit located in
a rural or small area using assistance under this section,
the Secretary may allow a grantee to conduct a remote or
video inspection of a unit if the remote or video
inspection--
``(I) is thorough;
``(II) does not misrepresent the condition of the
unit; and
``(III) provides the information necessary to fully
and accurately evaluate the conditions of the unit to
ensure that the unit meets the relevant standards.
``(v) Rule of construction.--Nothing in clause (i),
(ii), (iii), or (iv) shall be construed to affect the
operation of a housing program described in, or authorized
under a provision of law described in, that clause.''.
(b) Pre-approval of Units.--Section 8(o)(8)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at
the end the following:
``(iv) Initial inspection prior to lease agreement.--
``(I) Definition.--In this clause, the term `new
landlord' means an owner of a dwelling unit who has not
previously entered into a housing assistance payment
contract with a public housing agency under this
subsection for any dwelling unit.
``(II) Early inspection.--Upon the request of a new
landlord, a public housing agency may inspect the
dwelling unit owned by the new landlord to determine
whether the unit meets the housing quality standards
under subparagraph (B) before the unit is selected by a
tenant assisted under this subsection.
``(III) Effect.--An inspection conducted under
subclause (II) that determines that the dwelling unit
meets the housing quality standards under subparagraph
(B) shall satisfy this subparagraph and subparagraph
(C) if the new landlord enters into a lease agreement
with a tenant assisted under this subsection not later
than 60 days after the date of the inspection.
``(IV) Information when family is selected.--When a
public housing agency selects a family to participate
in the tenant-based assistance program under this
subsection, the public housing agency shall include in
the information provided to the family a list of
dwelling units that have been inspected under subclause
(II) and determined to meet the housing quality
standards under subparagraph (B).''.
TITLE V--PROGRAM REFORM
SEC. 501. HOME INVESTMENT PARTNERSHIPS REAUTHORIZATION AND REFORM
ACT.
(a) Authorization.--Section 205 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows:
``SEC. 205. AUTHORIZATION OF PROGRAM.
``The HOME Investment Partnerships Program under subtitle A is
hereby authorized.''.
(b) Definition of Community Housing Development Organization.--
Section 104(6)(B) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12704(6)(B)) is amended by striking ``significant''.
(c) Assistance for Low-income Families.--Title II of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is
amended--
(1) in section 214(2) (42 U.S.C. 12742(2)), by striking
``households that qualify as low-income families'' and inserting
``families with a household income that does not exceed 100 percent
of the median family income of the area, as determined by the
Secretary''; and
(2) in section 271(c) (42 U.S.C. 12821(c))--
(A) in paragraph (1)(B), by striking ``low-income'' and
inserting ``families with a household income that does not
exceed 100 percent of the median family income of the area as
determined by the Secretary with adjustments for smaller and
larger families''; and
(B) in paragraph (2)(A), by striking ``low-income
families'' and inserting ``families with a household income
that does not exceed 100 percent of the median family income of
the area as determined by the Secretary with adjustments for
smaller and larger families''.
(d) Choices Made by Participating Jurisdictions.--Section 212(a)(2)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(a)(2)) is amended to read as follows:
``(2) Limitation.--The Secretary may not restrict the choice by
a participating jurisdiction of rehabilitation, substantial
rehabilitation, new construction, reconstruction, acquisition, or
other eligible housing uses authorized in paragraph (1) unless the
restriction is explicitly authorized under section 223(2).''.
(e) Use of Amounts by Certain Jurisdictions for Infrastructure
Improvements.--
(1) In general.--Section 212(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(a)) is amended by
inserting after paragraph (3) the following:
``(4) Infrastructure improvements in nonentitlement areas.--
``(A) In general.--A participating jurisdiction may use
funds provided under this subtitle for infrastructure
improvements, including the installation or repair of water and
sewer lines, sidewalks, roads, and utility connections if--
``(i) such participating jurisdiction does not receive
assistance under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5310); and
``(ii) such improvements are directly related to, and
located within or immediately adjacent to--
``(I) housing assisted under this subtitle; or
``(II) housing assisted under section 42 of the
Internal Revenue Code of 1986.
``(B) Application of labor standards.--The labor standards
and requirements set forth in section 110 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5310) shall apply
to any infrastructure improvement conducted using funds
provided under this subtitle.
``(C) Rule of construction.--Nothing in this paragraph may
be construed to impose any requirements of the HOME Investment
Partnerships program on housing that benefits from an
infrastructure improvement conducted using funds provided under
this subtitle but was not otherwise assisted under the HOME
Investment Partnerships program.''.
(2) Rulemaking.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development shall issue rules to carry out the amendment made by
paragraph (1).
(f) Per Unit Investment Limitations.--Section 212(e)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(e)(1)) is amended by striking the second sentence.
(g) Affordable Rental Housing Qualifications.--Section 215(a) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(a)) is amended by adding at the end the following:
``(7) Qualification exception.--Notwithstanding paragraph
(1)(A), a rental unit shall be considered to qualify as affordable
housing under this title if--
``(A) the unit is occupied by a tenant receiving tenant-
based rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);
``(B) the contribution of the tenant toward rent does not
exceed the amount permitted under the assistance described in
subparagraph (A); and
``(C) the total rent for the unit does not exceed the
amount approved by the public housing agency administering the
assistance described in subparagraph (A).''.
(h) Affordable Home-ownership Housing Qualifications.--Section 215
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating subparagraphs (A),
(B), and (C) as clauses (i), (ii), and (iii), respectively, and
adjusting the margins accordingly;
(B) in paragraph (3)--
(i) in subparagraph (A), by redesignating clauses (i)
and (ii) as subclauses (I) and (II), respectively, and
adjusting the margins accordingly; and
(ii) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively, and adjusting the
margins accordingly;
(C) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and adjusting the
margins accordingly;
(D) by striking ``Housing that is for home-ownership'' and
inserting the following:
``(1) Qualification.--Housing that is for home-ownership'';
(E) in paragraph (1), as so designated--
(i) in subparagraph (A), as so redesignated--
(I) by striking ``95 percent'' and inserting ``110
percent''; and
(II) by inserting ``(defined as the amount borrowed
by the homebuyer to purchase the home, or the estimated
value after rehabilitation, which may be adjusted to
account for the limits on future value imposed by the
resale restriction)'' after ``purchase price'';
(ii) in subparagraph (B), as so redesignated, in the
matter preceding clause (i), by striking ``whose family
qualifies as a low-income family'' and inserting ``with a
family income that does not exceed 100 percent of the
median family income of the area as determined by the
Secretary with adjustments for smaller and larger
families'';
(iii) in subparagraph (C), as so redesignated--
(I) in clause (i)(II)--
(aa) by striking ``low-income home-buyers'' and
inserting ``home-buyers with a household income
that does not exceed 100 percent of the median
family income of the area, as determined by the
Secretary with adjustments for smaller and larger
families''; and
(bb) by striking ``or'' at the end;
(II) in clause (ii), by striking ``and'' at the end
and inserting ``or''; and
(III) by adding at the end the following:
``(iii) maintain long-term affordability through a
shared equity ownership model, a community land trust, a
limited equity cooperative, a community development
corporation, or other mechanism approved by the Secretary,
that preserves affordability for future eligible home-
buyers and ensures compliance with the purposes of this
title, including through the use of purchase options,
rights of first refusal, or other preemptive rights to
purchase housing;'';
(iv) in subparagraph (D), as so redesignated, by
striking the period at the end and inserting ``; and''; and
(v) by adding at the end the following:
``(E) is subject to restrictions that are established by
the participating jurisdiction and determined by the Secretary
to be appropriate, including with respect to the useful life of
the property, to--
``(i) require that any subsequent purchase of the
property be--
``(I) only by a person who meets the qualifications
specified under subparagraph (B); and
``(II) at a price that is determined by a formula
or method established by the participating jurisdiction
that provides the owner with a reasonable return on
investment, which may include a percentage of the cost
of any improvements; or
``(ii) recapture the investment provided under this
title in order to assist other persons in accordance with
the requirements of this title, except where there are no
net proceeds or where the net proceeds are insufficient to
repay the full amount of the assistance.''; and
(F) by adding at the end the following:
``(2) Purchase by community land trust or cooperative housing
corporation.--Notwithstanding subparagraph (C)(i) of paragraph (1)
and under terms determined by the Secretary, the Secretary may
permit a participating jurisdiction to allow a community land
trust, housing cooperative, or a community development corporation
that used assistance provided under this subtitle for the
development of housing that meets the criteria under paragraph (1),
to acquire the housing--
``(A) in accordance with the terms of the preemptive
purchase option, lease, covenant on the land, or other similar
legal instrument of the community land trust or housing
cooperative when the terms and rights in the preemptive
purchase option, lease, covenant, or legal instrument are and
remain subject to the requirements of this title;
``(B) when the purchase is for--
``(i) the purpose of--
``(I) entering into the chain of title;
``(II) enabling a purchase by a person who meets
the qualifications specified under paragraph (1)(B) and
is on a waitlist maintained by the community land trust
or housing cooperative, subject to enforcement by the
participating jurisdiction of all applicable
requirements of this title, as determined by the
Secretary;
``(III) performing necessary rehabilitation and
improvements; or
``(IV) adding a subsidy to preserve affordability,
which may be from Federal or non-Federal sources; or
``(ii) another purpose determined appropriate by the
Secretary; and
``(C) if, within a reasonable period of time after the
applicable purpose under subparagraph (B) of this paragraph is
fulfilled, as determined by the Secretary, the housing is then
sold to a person who meets the qualifications specified under
paragraph (1)(B).''; and
(2) by adding at the end the following:
``(c) Qualification Exceptions for Home-ownership.--
``(1) Military members.--A participating jurisdiction, in
accordance with terms established by the Secretary, may suspend or
waive the income qualifications described in subsection (b)(1)(B)
with respect to housing that otherwise meets the criteria described
in subsection (b)(1) if the owner of the housing--
``(A) is a member of a regular component of the armed
forces or a member of the National Guard on full-time National
Guard duty, active Guard and Reserve duty, or inactive-duty
training (as those terms are defined in section 101 of title
10, United States Code); and
``(B) has received--
``(i) temporary duty orders to deploy with a military
unit or military orders to deploy as an individual acting
in support of a military operation, to a location that is
not within a reasonable distance from the housing, as
determined by the Secretary, for a period of not less than
90 days; or
``(ii) orders for a permanent change of station.
``(2) Heirs and beneficiaries of deceased owners.--Housing that
meets the criteria described in subsection (b)(1)(C) prior to the
death of an owner of such housing shall continue to qualify as
affordable housing under this title if--
``(A) the housing is the principal residence of an heir or
beneficiary of the deceased owner, as defined by the Secretary;
and
``(B) the heir or beneficiary, in accordance with terms
established by the Secretary, assumes the duties and
obligations of the deceased owner with respect to funds
provided under this title.''.
(i) Elimination of Expiration of Right to Draw Home Investment
Trust Funds.--Section 218 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12748) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(j) Adjusted Recapture and Reuse of Set-aside for Community Housing
Developmental Organizations.--Section 231(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771(b)) is amended to read
as follows:
``(b) Recapture and Reuse.--If any funds reserved under subsection
(a) remain uninvested for a period of 24 months, the Secretary shall
make such funds available to the participating jurisdiction for any
eligible activities under this title without regard to whether a
community housing development organization materially participates in
the use of such funds.''.
(k) Asset Recycling Information Dissemination Expansion.--Section
245(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12785(b)(2)) is amended by striking ``95 percent'' and inserting
``110 percent''.
(l) Environmental Review Requirements.--
(1) In general.--Section 288 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12838) is amended by adding at
the end the following:
``(e) Categorical Exemptions.--The following categories of
activities carried out under this title shall be statutorily exempt
from environmental review under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.), and shall not require further review
under such Act:
``(1) New construction infill housing projects.
``(2) Acquisition of real property for affordable housing
purposes.
``(3) Rehabilitation projects carried out pursuant to section
212(a)(1).
``(4) New construction projects of 15 units or less.
``(f) Removing Duplicative Reviews.--
``(1) In general.--To the extent practicable and permitted by
law, the Secretary shall ensure that a project that has undergone
an environmental review under this section shall not be subject to
a duplicative environmental review solely due to the addition,
substitution, or reallocation of other sources of Federal
assistance, if the scope, scale, and location of the project remain
substantially unchanged.
``(2) Coordination of environmental review responsibilities.--
The Secretary shall, by regulation, provide for coordination of
environmental review responsibilities with other Federal agencies
to streamline interagency compliance and avoid unnecessary
duplication of effort under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) and other applicable laws.
``(3) Recognition of prior reviews by responsible entities.--A
project may not be subject to an environmental review under this
section if a substantially similar review has already been
completed by an entity designated under section 104(g)(1) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5304(g)(1)) or by another entity the Secretary determines to have
equivalent authority, if the scope, scale, and location of the
project remain substantially unchanged.''.
(2) Rulemaking.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall issue such rules as the
Secretary determines necessary to carry out the amendment made by
this subsection.
(3) Applicability.--Any activity generated under this
subsection would be subject to an authorization of appropriations.
(4) Definition.--Section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704) is amended by striking
paragraph (25) and inserting the following:
``(25) The term `infill housing project' means a residential
housing project that--
``(A) is located within the geographic limits of a
municipality;
``(B) is adequately served by existing utilities and public
services as required under applicable law;
``(C) is located on a site of previously disturbed land of
not more than 5 acres; and
``(D) is substantially surrounded by residential or
commercial development, as determined by the Secretary.''.
(m) Application of Build America, Buy America Requirements for Home
Investment Partnerships Program.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development (in this subsection referred to as the ``Secretary'')
shall complete a review of the implementation of the Build America,
Buy America Act (title IV of division G of Public Law 117-58; 42
U.S.C. 8301 note) with respect to the activities assisted under
title II of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721 et seq.).
(2) Updated guidance.--Not later than 90 days after the review
described in subsection (a) is completed, the Secretary shall issue
updated guidance to clarify the application of the Build America,
Buy America Act (title IV of division G of Public Law 117-58; 42
U.S.C. 8301 note) with respect to the activities assisted under
title II of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721 et seq.).
(3) Report.--Not later than 270 days after the date of
enactment of this Act, the Secretary shall submit to the Committee
on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate a
report that describes--
(A) the results of the review required under subsection
(a); and
(B) the guidance issued as described in subsection (b).
(n) Application of Other Specified Statutory Requirements.--Title
II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721 et seq.) is amended by adding at the end the following:
``SEC. 291. NONAPPLICABILITY OF CERTAIN REQUIREMENTS FOR SMALL
PROJECTS.
``Notwithstanding any other provision of law, the requirements of
section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701u), and any implementing regulations or guidance, shall not apply
to an activity assisted under this title that involves rehabilitation,
construction, or other development of housing if--
``(1) the recipient of assistance under this title is--
``(A) a State recipient pursuant to section 216; or
``(B) a participating jurisdiction that received a total
allocation of less than $3,000,000 in the most recent fiscal
year pursuant to section 216; and
``(2) the total number of dwelling units assisted as a part of
such activity is not more than 50.''.
(o) Reallocation Not Available for Certain Jurisdictions.--Section
217(d) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12747(d)) is amended--
(1) in paragraph (1), by striking the second sentence and
inserting the following: ``Subject to paragraph (4), jurisdictions
eligible for such reallocations shall include participating
jurisdictions and jurisdictions meeting the requirements of this
title, including the requirements in paragraphs (3), (4), and (5)
of section 216.''; and
(2) by adding at the end the following:
``(4) Reallocation not available for certain jurisdictions.--
The Secretary may decline to make a reallocation available to a
jurisdiction eligible for such reallocation if such jurisdiction
has failed to meet or comply with any requirement under this
title.''.
(p) Amendments to Qualification as Affordable Housing.--Section
215(a)(1)(E) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12745(a)) is amended by striking ``except upon a foreclosure
by a lender (or upon other transfer in lieu of foreclosure) if such
action (i) recognizes any contractual or legal rights of public
agencies, nonprofit sponsors, or others to take actions that would
avoid termination of low-income affordability in the case of
foreclosure or transfer in lieu of foreclosure, and (ii) is not for the
purpose of avoiding low-income affordability restrictions, as
determined by the Secretary; and'' and inserting the following:
``except--
``(i) upon a foreclosure by a lender (or upon other
transfer in lieu of foreclosure) if such action--
``(I) recognizes any contractual or legal rights of
public agencies, nonprofit sponsors, or others to take
actions that would avoid termination of low-income
affordability in the case of foreclosure or transfer in
lieu of foreclosure; and
``(II) is not for the purpose of avoiding low-
income affordability restrictions, as determined by the
Secretary; or
``(ii) where existing affordable housing is no longer
financially viable due to unforeseen acts or occurrences
beyond the reasonable contemplation or control of the
participating jurisdiction in which the affordable housing
is located or the owner of the affordable housing that
significantly impact the financial or physical condition of
the affordable housing, as determined by the Secretary;
and''.
(q) Tenant and Participant Protections for Affordable Housing.--
Section 225 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12755) is amended by adding at the end the following:
``(e) Exception.--Paragraphs (2), (3), and (4) of subsection (d)
shall not apply to housing under this section that meets the following
criteria:
``(1) The housing is affordable housing with not more than 4
dwelling units, each of which is made available for rental.
``(2) Each dwelling unit in the housing bears rent in an amount
that complies with the requirements described in paragraph (1)(A).
``(3) Each dwelling unit in the housing is accompanied by a
low-income family.
``(4) No dwelling in the housing is refused for leasing to a
holder of a voucher under section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f) because of the status of the
prospective tenant as a holder of that voucher.
``(5) The housing complies with the requirement described in
paragraph (1)(E).
``(6) The participating jurisdiction in which the housing is
located monitors the compliance of the housing with the
requirements of this title in a manner consistent with the purposes
of section 226(b), as determined by the Secretary.''.
(r) Revision of Definition of Community Land Trust.--Section 104 of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704), as amended by subsection (l)(4), is amended by adding at the
end the following:
``(26) The term `community land trust' means a nonprofit
entity, a State, a unit of local government, or an instrumentality
of a State or unit of local government that--
``(A) is not managed by, or an affiliate of, a for profit
organization;
``(B) has as a primary purpose of acquiring, developing, or
holding land to provide housing that is permanently affordable
to low- and moderate-income persons;
``(C) monitors properties to ensure affordability is
preserved;
``(D) provides housing that is permanently affordable to
low- and moderate-income persons using a ground lease, deed
covenant, or other similar legally enforceable measure,
determined acceptable by the Secretary, that--
``(i) keeps housing affordable to low- and moderate-
income persons for not less than 30 years; and
``(ii) enables low- and moderate-income persons to rent
or purchase the housing for home-ownership; and
``(E) maintains preemptive purchase options to purchase the
property if such purchase would allow the housing to remain
affordable to low-and moderate-income persons.''.
(s) Set-aside for Community Housing Development Organizations.--
Section 231(a) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12771(a)) is amended, in the first sentence, by striking
``to be developed, sponsored, or owned by community housing development
organizations'' and inserting ``when a community housing development
organization materially participates in the ownership or development of
that housing, as determined by the Secretary''.
(t) Administrative Reforms.--
(1) Increase in program administration resources.--Section
220(b) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12750(b)) is amended--
(A) by striking paragraph (2);
(B) by striking ``Recognition.--'' and all that follows
through ``A contribution'' and inserting ``Recognition.--A
contribution''; and
(C) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and adjusting the margins
accordingly.
(2) Modification of jurisdictions eligible for reallocations.--
Section 217(d)(3) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12747(d)(3)) is amended--
(A) in the paragraph heading, by striking ``Limitation''
and inserting ``Limitations''; and
(B) by striking ``Unless otherwise specified'' and
inserting the following:
``(A) Removal of participating jurisdictions from
reallocation.--The Secretary may, upon a finding that the
participating jurisdiction has failed to meet or comply with
the requirements of this title, remove a participating
jurisdiction from participation in reallocations of funds made
available under this title.
``(B) Reallocation to same type of entity.--Unless
otherwise specified''.
(3) Home property inspections.--Section 226(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12756(b)) is
amended--
(A) by striking ``Each participating jurisdiction'' and
inserting the following:
``(1) In general.--Each participating jurisdiction''; and
(B) by striking ``Such review shall include'' and all that
follows and inserting the following:
``(2) Onsite inspections.--
``(A) Inspections by units of general local government.--A
review conducted under paragraph (1) by a participating
jurisdiction that is a unit of general local government shall
include an onsite inspection to determine compliance with
housing codes and other applicable regulations.
``(B) Inspections by states.--A review conducted under
paragraph (1) by a participating jurisdiction that is a State
shall include an onsite inspection to determine compliance with
a national standard as determined by the Secretary.
``(3) Inclusion in performance report and publication.--A
participating jurisdiction shall include in the performance report
of the participating jurisdiction submitted to the Secretary under
section 108(a), and make available to the public, the results of
each review conducted under paragraph (1).''.
(4) Revisions to strengthen enforcement and penalties for
noncompliance.--Section 223 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12753) is amended--
(A) in the section heading, by striking ``penalties for
misuse of funds'' and inserting ``program enforcement and
penalties for noncompliance'';
(B) in the matter preceding paragraph (1), by inserting
after ``any provision of this subtitle'' the following: ``,
including any provision applicable throughout the period
required by section 215(a)(1)(E) and applicable regulations,'';
(C) in paragraph (2), by striking ``or'' at the end;
(D) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(E) by adding at the end the following:
``(4) reduce payments to the participating jurisdiction under
this subtitle by an amount equal to the amount of such payments
that were not expended by the participating jurisdiction in
accordance with this title.''.
(u) Minimum Allocations.--Section 217(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747 (b)) is amended--
(1) in paragraph (2), by striking ``$500,000'' each place that
term appears and inserting ``$750,000'';
(2) in paragraph (3)--
(A) by striking ``jurisdictions that are allocated an
amount of $500,000 or more'' and inserting ``jurisdictions that
are allocated an amount of $750,000 or more'';
(B) by striking ``that are allocated an amount less than
$500,000'' and inserting ``that are allocated an amount less
than $500,000 before the date of enactment of the 21st Century
ROAD to Housing Act or less than $750,000 on or after the date
of enactment of the 21st Century ROAD to Housing Act''; and
(C) by striking ``, except as provided in paragraph (4)'';
and
(3) by striking paragraph (4).
(v) Technical and Conforming Amendments.--The Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) by striking ``Stewart B. McKinney Homeless Assistance Act''
each place that term appears and inserting ``McKinney-Vento
Homeless Assistance Act'';
(2) by striking ``Committee on Banking, Finance and Urban
Affairs'' each place that term appears and inserting ``Committee on
Financial Services'';
(3) in the table of contents in section 1(b) (Public Law 101-
625; 104 Stat. 4079)--
(A) by striking the item relating to section 205 and
inserting the following:
``Sec. 205. Authorization of program.'';
(B) by striking the item relating to section 223 and
inserting the following:
``Sec. 223. Program enforcement and penalties for noncompliance.''; and
(C) by inserting after the item relating to section 290 the
following:
``Sec. 291. Nonapplicability of certain requirements for small
projects.'';
(4) in section 104 (42 U.S.C. 12704)--
(A) by redesignating paragraph (23) (relating to the
definition of the term ``to demonstrate to the Secretary'') as
paragraph (22); and
(B) by redesignating paragraph (24) (relating to the
definition of the term ``insular area'', as added by section
2(2) of Public Law 102-230) as paragraph (23);
(5) in section 105(b)(8) (42 U.S.C. 12705(b)(8)), by striking
``subparagraphs'' and inserting ``paragraphs'';
(6) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by striking
``section 105(b)(15)'' and inserting ``section 105(b)(18)'';
(7) in section 212 (42 U.S.C. 12742)--
(A) in subsection (a)(3)(A)(ii), by inserting ``United
States'' before ``Housing Act'';
(B) in subsection (d)(5), by inserting ``United States''
before ``Housing Act''; and
(C) in subsection (e)(1)--
(i) by striking ``section 221(d)(3)(ii)'' and inserting
``section 221(d)(4)''; and
(ii) by striking ``not to exceed 140 percent'' and
inserting ``as determined by the Secretary'';
(8) in section 215(a)(6)(B) (42 U.S.C. 12745(a)(6)(B)), by
striking ``grand children'' and inserting ``grandchildren'';
(9) in section 217 (42 U.S.C. 12747)--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(3)'' and inserting
``(2)'';
(ii) by striking paragraph (3), as added by section
211(a)(2)(D) of the Housing and Community Development Act
of 1992 (Public Law 102-550; 106 Stat. 3756); and
(iii) by redesignating the remaining paragraph (3), as
added by the matter under the heading ``home investment
partnerships program'' under the heading ``Housing
Programs'' in title II of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1993 (Public Law 102-389; 106
Stat. 1581), as paragraph (2); and
(B) in subsection (b)(1)--
(i) in subparagraph (A), in the first sentence--
(I) by striking ``in regulation'' and inserting ``,
by regulation,''; and
(II) by striking ``eligible jurisdiction'' and
inserting ``eligible jurisdictions''; and
(ii) in subparagraph (F), in the first sentence--
(I) in clause (i), by striking ``Subcommittee on
Housing and Urban Affairs'' and inserting
``Subcommittee on Housing, Transportation, and
Community Development''; and
(II) in clause (ii), by striking ``Subcommittee on
Housing and Community Development of the Committee on
Banking, Finance and Urban Affairs'' and inserting
``Subcommittee on Housing and Insurance of the
Committee on Financial Services'';
(10) in section 220(c) (42 U.S.C. 12750(c))--
(A) in paragraph (3), by striking ``Secretary'' and all
that follows and inserting ``Secretary;'';
(B) in paragraph (4), by striking ``under this title'' and
all that follows and inserting ``under this title;''; and
(C) by redesignating paragraphs (6), (7), and (8) as
paragraphs (5), (6), and (7), respectively;
(11) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by
striking ``for'' the first place that term appears; and
(12) in section 233 (42 U.S.C. 12773)--
(A) in subsection (b)(6), by striking ``to community land
trusts (as such term is defined in subsection (f))'' and
inserting ``to community land trusts (as such term is defined
in section 104)''; and
(B) by striking subsection (f).
SEC. 502. RURAL HOUSING SERVICE REFORM ACT.
(a) Application of Multifamily Mortgage Foreclosure Procedures to
Multifamily Mortgages Held by the Secretary of Agriculture and
Preservation of the Rental Assistance Contract Upon Foreclosure.--
(1) Multifamily mortgage procedures.--Section 363(2)(F) of the
Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C. 3702(2)) is
amended--
(A) by striking ``or 515'' and inserting ``515, or 538'';
and
(B) by inserting ``, 1490p-2'' after ``1485''.
(2) Preservation of contract.--Section 521(d) of the Housing
Act of 1949 (42 U.S.C. 1490a(d)) is amended by adding at the end
the following:
``(3) Notwithstanding any other provision of law, in managing and
disposing of any multifamily property that is owned or has a mortgage
held by the Secretary, and during the process of foreclosure on any
property with a contract for rental assistance under this section--
``(A) the Secretary shall maintain any rental assistance
payments that are attached to any dwelling units in the property;
and
``(B) the rental assistance contract may be used to provide
further assistance to existing projects under 514, 515, or 516.''.
(b) Study on Rural Housing Loans for Housing for Low- and Moderate-
income Families.--Not later than 6 months after the date of enactment
of this Act, the Secretary of Agriculture shall conduct a study and
submit to Congress a publicly available report on the loan program
under section 521 of the Housing Act of 1949 (42 U.S.C. 1490a),
including--
(1) the total amount provided by the Secretary in subsidies
under such section 521 to borrowers with loans made pursuant to
section 502 of such Act (42 U.S.C. 1472);
(2) how much of the subsidies described in paragraph (1) are
being recaptured; and
(3) the amount of time and costs associated with recapturing
those subsidies.
(c) Staffing and Information Technology Upgrades.--Utilizing funds
appropriated for such purposes, the Secretary of Agriculture may
increase staffing capacity and upgrade information technology to
support all Rural Housing Service programs.
(d) Technical Improvements.--
(1) Authorization of appropriations.--Utilizing funds
appropriated for such purposes, the Secretary of Agriculture may
make improvements to the technology of the Rural Housing Service of
the Department of Agriculture used to process and manage housing
loans.
(2) Availability.--Amounts appropriated pursuant to paragraph
(1) shall remain available until the date that is 5 years after the
date of the appropriation.
(3) Timeline.--The Secretary of Agriculture shall make the
improvements described in paragraph (1) during the 5-year period
beginning on the date on which amounts are appropriated under
paragraph (1).
(e) Permanent Establishment of Housing Preservation and
Revitalization Program.--Title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.) is amended by adding at the end the following:
``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 514, 515, or 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed under
section 514, 515, or 516 that will mature within the 4-year period
beginning upon the provision of the notice, setting forth the
options and financial incentives that are available to facilitate
the extension of the loan term or the option to decouple a rental
assistance contract pursuant to subsection (f).
``(2) To tenants.--
``(A) In general.--On an annual basis, for each property
financed under section 514, 515, or 516, not later than the
date that is 2 years before the date that the loan will mature,
the Secretary shall provide written notice to each household
residing in the property that informs them of--
``(i) the date of the loan maturity;
``(ii) the possible actions that may happen with
respect to the property upon that maturity; and
``(iii) how to protect their right to reside in
federally assisted housing, or how to secure housing
voucher, after that maturity.
``(B) Language.--Notice under this paragraph shall be
provided in plain English and shall be translated to other
languages in the case of any property located in an area in
which a significant number of residents speak such other
languages.
``(c) Loan Restructuring.--Under the program under this section, in
any circumstance in which the Secretary proposes a restructuring to an
owner or an owner proposes a restructuring to the Secretary, the
Secretary may restructure such existing housing loans, as the Secretary
considers appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
``(4) providing other financial assistance, including advances,
payments, and incentives (including the ability of owners to obtain
reasonable returns on investment) required by the Secretary; and
``(5) permanently removing a portion of the housing units from
income restrictions when sustained vacancies have occurred.
``(d) Renewal of Rental Assistance.--
``(1) In general.--When the Secretary proposes to restructure a
loan or agrees to the proposal of an owner to restructure a loan
pursuant to subsection (c), the Secretary shall offer to renew the
rental assistance contract under section 521(a)(2) for a term that
is the shorter of 20 years and the term of the restructured loan,
subject to annual appropriations, provided that the owner agrees to
bring the property up to such standards that will ensure
maintenance of the property as decent, safe, and sanitary housing
for the full term of the rental assistance contract.
``(2) Additional rental assistance.--With respect to a project
described in paragraph (1), if rental assistance is not available
for all households in the project for which the loan is being
restructured pursuant to subsection (c), the Secretary may extend
such additional rental assistance to unassisted households at that
project as is necessary to make the project safe and affordable to
low-income households.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall obtain
a restrictive use agreement that is recorded and obligates the
owner to operate the project in accordance with this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--Except
when the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of the
restrictive use agreement for the project shall be consistent
with the term of the restructured loan for the project.
``(B) Extension of rental assistance contract.--If the
Secretary enters into a 20-year extension of the rental
assistance contract for a project, the term of the restrictive
use agreement for the project shall be for the longer of--
``(i) 20 years; or
``(ii) the remaining term of the loan for that project.
``(C) Termination.--The Secretary may terminate the 20-year
restrictive use agreement for a project before the end of the
term of the agreement if the 20-year rental assistance contract
for the project with the owner is terminated at any time for
reasons outside the control of the owner.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the Secretary
determines that a loan maturing during the 4-year period beginning
upon the provision of the notice required under subsection (b)(1)
for a project cannot reasonably be restructured in accordance with
subsection (c) because it is not financially feasible or the owner
does not agree with the proposed restructuring, and the project was
operating with rental assistance under section 521 and the
recipient is a borrower under section 514 or 515, the Secretary may
renew the rental assistance contract, notwithstanding any
requirement under section 521 that the recipient be a current
borrower under section 514 or 515, for a term of 20 years, subject
to annual appropriations.
``(2) Additional rental assistance.--With respect to a project
described in paragraph (1), if rental assistance is not available
for all households in the project for which the loan is being
restructured pursuant to subsection (c), the Secretary may extend
such additional rental assistance to unassisted households at that
project as is necessary to make the project safe and affordable to
low-income households.
``(3) Rents.--
``(A) In general.--Any agreement to extend the term of the
rental assistance contract under section 521 for a project
shall obligate the owner to continue to maintain the project as
decent, safe, and sanitary housing and to operate the
development as affordable housing in a manner that meets the
goals of this title.
``(B) Rent amounts.--Subject to subparagraph (C), in
setting rents, the Secretary--
``(i) shall determine the maximum initial rent based on
current fair market rents established under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f);
and
``(ii) may annually adjust the rent determined under
clause (i) by the operating cost adjustment factor as
provided under section 524 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note).
``(C) Higher rent.--
``(i) In general.--Subparagraph (B) shall not apply if
the Secretary determines that the budget-based needs of a
project require a higher rent than the rent described in
subparagraph (B).
``(ii) Rent.--If the Secretary makes a positive
determination under clause (i), the Secretary may approve a
budget-based rent level for the project.
``(4) Conditions for approval.--Before the approval of a rental
assistance contract authorized under this section, the Secretary
shall require, through an annual notice in the Federal Register,
the owner to submit to the Secretary a plan that identifies
financing sources and a timetable for renovations and improvements
determined to be necessary by the Secretary to maintain and
preserve the project.
``(g) Multifamily Housing Transfer Technical Assistance.--Under the
program under this section, the Secretary may provide grants to
qualified nonprofit organizations, housing cooperative corporations,
and public housing agencies to provide technical assistance, including
financial and legal services, to borrowers under loans under this title
for multifamily housing to facilitate the acquisition or preservation
of such multifamily housing properties in areas where the Secretary
determines there is a risk of loss of affordable housing.
``(h) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
``(i) Rulemaking.--
``(1) In general.--Not later than 180 days after the date of
enactment of the 21st Century ROAD to Housing Act, the Secretary
shall--
``(A) publish an advance notice of proposed rulemaking; and
``(B) consult with appropriate stakeholders.
``(2) Interim final rule.--Not later than 1 year after the date
of enactment of the 21st Century ROAD to Housing Act, the Secretary
shall publish an interim final rule to carry out this section.''.
(f) Rental Assistance Contract Authority.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)), as amended by this section,
is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the following:
``(B) upon request of an owner of a project financed under
section 514 or 515, the Secretary is authorized to enter into
renewal of such agreements for a period of 20 years or the term of
the loan, whichever is shorter, subject to amounts made available
in appropriations Acts;'';
(C) in subparagraph (C), as so redesignated, by striking
``subparagraph (A)'' and inserting ``subparagraphs (A) and
(B)''; and
(D) in subparagraph (D), as so redesignated, by striking
``subparagraphs (A) and (B)'' and inserting ``subparagraphs
(A), (B), and (C)'';
(2) in paragraph (2), by striking ``shall'' and inserting
``may''; and
(3) by adding at the end the following:
``(4) In the case of any rental assistance contract authority that
becomes available because of the termination of assistance on behalf of
an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of not more than 6
months before unused assistance is made available pursuant to
subparagraph (B) during which the owner may use such authority to
provide assistance on behalf of an eligible unassisted family
that--
``(i) is residing in the same rental project in which the
assisted family resided before the termination; or
``(ii) newly occupies a dwelling unit in the rental project
during that 6-month period; and
``(B) except for assistance used as provided in subparagraph
(A), the Secretary shall use such remaining authority to provide
assistance on behalf of eligible families residing in other rental
projects originally financed under section 514, 515, or 516.''.
(g) Modifications to Loans and Grants for Minor Improvements to
Farm Housing and Buildings; Income Eligibility.--Section 504(a) of the
Housing Act of 1949 (42 U.S.C. 1474(a)) is amended--
(1) in the first sentence, by inserting ``and may make a loan
to an eligible low-income applicant'' after ``applicant''; and
(2) by striking ``$7,500'' and inserting ``$15,000''.
(h) Rural Community Development Initiative.--Subtitle E of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009 et seq.) is
amended by adding at the end the following:
``SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a private, nonprofit community-based housing or
community development organization;
``(B) a rural community; or
``(C) a federally recognized Indian tribe.
``(2) Eligible intermediary.--The term `eligible intermediary'
means a qualified--
``(A) private, nonprofit organization; or
``(B) public organization.
``(b) Establishment.--The Secretary shall establish a Rural
Community Development Initiative, under which the Secretary shall
provide grants, subject to the availability of appropriations, to
eligible intermediaries to carry out programs to provide financial and
technical assistance to eligible entities to develop the capacity and
ability of eligible entities to carry out projects to improve housing,
community facilities, and community and economic development projects
in rural areas.
``(c) Amount of Grants.--The amount of a grant provided to an
eligible intermediary under this section shall be not more than
$500,000.
``(d) Matching Funds.--
``(1) In general.--An eligible intermediary receiving a grant
under this section shall provide matching funds from other sources,
including Federal funds for related activities, in an amount not
less than the amount of the grant.
``(2) Waiver.--The Secretary may waive paragraph (1) with
respect to a project that would be carried out in a persistently
poor rural region, as determined by the Secretary.''.
(i) Annual Report on Rural Housing Programs.--Title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.), as amended by this
section, is amended by adding at the end the following:
``SEC. 546. ANNUAL REPORT.
``(a) In General.--The Secretary shall submit to the appropriate
committees of Congress and publish on the website of the Department of
Agriculture an annual report on rural housing programs carried out
under this title, which shall include significant details on the health
of Rural Housing Service programs, including--
``(1) raw data sortable by programs and by region regarding
loan performance;
``(2) the housing stock of those programs, including
information on why properties end participation in those programs,
such as for maturation, prepayment, foreclosure, or other servicing
issues; and
``(3) risk ratings for properties assisted under those
programs.
``(b) Protection of Information.--The data included in each report
required under subsection (a) may be aggregated or anonymized to
protect participant financial or personal information.''.
(j) GAO Report on Rural Housing Service Technology.--Not later than
1 year after the date of enactment of this Act, the Comptroller General
of the United States shall submit to Congress a report that includes--
(1) an analysis of how the outdated technology used by the
Rural Housing Service impacts participants in the programs of the
Rural Housing Service;
(2) an estimate of the amount of funding that is needed to
modernize the technology used by the Rural Housing Service; and
(3) an estimate of the number and type of new employees the
Rural Housing Service needs to modernize the technology used by the
Rural Housing Service.
(k) Adjustment to Rural Development Voucher Amount.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Agriculture shall issue
regulations to establish a process for adjusting the voucher amount
provided under section 542 of the Housing Act of 1949 (42 U.S.C.
1490r) after the issuance of the voucher following an interim or
annual review of the amount of the voucher.
(2) Interim review.--The interim review described in paragraph
(1) shall, at the request of a tenant, allow for a recalculation of
the voucher amount when the tenant experiences a reduction in
income, change in family composition, or change in rental rate.
(3) Annual review.--
(A) In general.--The annual review described in paragraph
(1) shall require tenants to annually recertify the family
composition of the household and that the family income of the
household does not exceed 80 percent of the area median income
at a time determined by the Secretary of Agriculture.
(B) Considerations.--If a tenant does not recertify the
family composition and family income of the household within
the time frame required under subparagraph (A), the Secretary
of Agriculture--
(i) shall consider whether extenuating circumstances
caused the delay in recertification; and
(ii) may alter associated consequences for the failure
to recertify based on those circumstances.
(C) Effective date.--Following the annual review of a
voucher under paragraph (1), the updated voucher amount shall
be effective on the 1st day of the month following the
expiration of the voucher.
(4) Deadline.--The process established under paragraph (1)
shall require the Secretary of Agriculture to review and update the
voucher amount described in paragraph (1) for a tenant not later
than 60 days before the end of the voucher term.
(l) Eligibility for Rural Housing Vouchers.--Section 542 of the
Housing Act of 1949 (42 U.S.C. 1490r) is amended by adding at the end
the following:
``(c) Eligibility of Households in Sections 514, 515, and 516
Projects.--The Secretary may provide rural housing vouchers under this
section for any low-income household (including those not receiving
rental assistance) residing for a term longer than the remaining term
of their lease that is in effect on the date of prepayment,
foreclosure, or mortgage maturity, in a property financed with a loan
under section 514 or 515 or a grant under section 516 that has--
``(1) been prepaid with or without restrictions imposed by the
Secretary pursuant to section 502(c)(5)(G)(ii)(I);
``(2) been foreclosed; or
``(3) matured after September 30, 2005.''.
(m) Amount of Voucher Assistance.--Notwithstanding any other
provision of law, in the case of any rural housing voucher provided
pursuant to section 542 of the Housing Act of 1949 (42 U.S.C. 1490r),
the amount of the monthly assistance payment for the household on whose
behalf the assistance is provided shall be determined as provided in
subsection (a) of such section 542, including providing for interim and
annual review of the voucher amount in the event of a change in
household composition or income or rental rate.
(n) Transfer of Multifamily Rural Housing Projects.--Section 515 of
the Housing Act of 1949 (42 U.S.C. 1485) is amended--
(1) in subsection (h), by adding at the end the following:
``(3) Transfer to nonprofit organizations.--A nonprofit or
public body purchaser, including a limited partnership with a
general partner with the principal purpose of providing affordable
housing, may purchase a property for which a loan is made or
insured under this section that has received a market value
appraisal, without addressing rehabilitation needs at the time of
purchase, if the purchaser--
``(A) makes a commitment to address rehabilitation needs
during ownership and long-term use restrictions on the
property; and
``(B) at the time of purchase, accepts long-term use
restrictions on the property.''; and
(2) in subsection (w)(1), in the first sentence in the matter
preceding subparagraph (A), by striking ``9 percent'' and inserting
``25 percent''.
(o) Extension of Loan Term.--
(1) In general.--Section 502(a)(2) of the Housing Act of 1949
(42 U.S.C. 1472(a)(2)) is amended--
(A) by inserting ``(A)'' before ``The Secretary'';
(B) in subparagraph (A), as so designated, by striking
``paragraph'' and inserting ``subparagraph''; and
(C) by adding at the end the following:
``(B) The Secretary may refinance or modify the period of any
loan, including any refinanced loan, made under this section in
accordance with terms and conditions as the Secretary shall
prescribe, but in no event shall the total term of the loan from
the date of the refinance or modification exceed 40 years.''.
(2) Application.--The amendment made under paragraph (1) shall
apply with respect to loans made under section 502 of the Housing
Act of 1949 (42 U.S.C. 1472) before, on, or after the date of
enactment of this Act.
(p) Release of Liability for Section 502 Guaranteed Borrower Upon
Assumption of Original Loan by New Borrower.--Section 502(h) of the
Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) by striking paragraph (10) and inserting the following:
``(10) Transfer and assumption.--Upon the transfer of property
for which a guaranteed loan under this subsection was made, and the
assumption of the guaranteed loan by an approved eligible borrower,
the original borrower of a guaranteed loan under this subsection
shall be relieved of liability with respect to the loan.'';
(2) by redesignating paragraph (16) as paragraph (17); and
(3) by inserting after paragraph (15) the following:
``(16) Fee.--
``(A) In general.--The mortgagee may charge an assuming
borrower a reasonable and customary processing fee for an
assumption request made under this subsection.
``(B) Maximum fee.--The Secretary shall set a maximum
allowable fee described in subparagraph (A), which may be
indexed for inflation.''.
(q) Department of Agriculture Loan Restrictions.--
(1) Definitions.--In this subsection, the terms ``State'' and
``tribal organization'' have the meanings given those terms in
section 658P of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858n).
(2) Revision.--The Secretary of Agriculture shall revise
section 3555.102(c) of title 7, Code of Federal Regulations, to
exclude from the restriction under that section--
(A) a home-based business that is a licensed, registered,
or regulated child care provider under State law or by a tribal
organization; and
(B) an applicant that has applied to become a licensed,
registered, or regulated child care provider under State law or
by a tribal organization.
(r) Loan Guarantees.--Section 502(h)(4) of the Housing Act of 1949
(42 U.S.C. 1472(h)(4)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as clauses
(i), (ii), and (iii), respectively, and adjusting the margins
accordingly;
(2) by striking ``Loans may be guaranteed'' and inserting the
following:
``(A) Definition.--In this paragraph, the term `accessory
dwelling unit' means a single, habitable living unit--
``(i) with means of separate ingress and egress;
``(ii) that is usually subordinate in size;
``(iii) that can be added to, created within, or
detached from a primary 1-unit, single-family dwelling; and
``(iv) in combination with a primary 1-unit, single-
family dwelling, constitutes a single interest in real
estate.
``(B) Single-family requirement.--Loans may be
guaranteed''; and
(3) by adding at the end the following:
``(C) Rule of construction.--Nothing in this paragraph
shall be construed to prohibit the leasing of an accessory
dwelling unit or the use of rental income derived from such a
lease to qualify for a loan guaranteed under this subsection--
``(i) after the date of enactment of the 21st Century
ROAD to Housing Act; and
``(ii) if the property that is the subject of the loan
was constructed before the date of enactment of the 21st
Century ROAD to Housing Act.''.
(s) Application Review.--
(1) Sense of congress.--It is the sense of Congress, not later
than 90 days after the date on which the Secretary of Agriculture
receives an application for a loan, grant, or combined loan and
grant under section 502 or 504 of the Housing Act of 1949 (42
U.S.C. 1472, 1474), the Secretary of Agriculture should--
(A) review the application;
(B) complete the underwriting;
(C) make a determination of eligibility with respect to the
application; and
(D) notify the applicant of determination.
(2) Report.--
(A) In general.--Not later than 90 days after the date of
enactment of this Act, and annually thereafter until the date
described in subparagraph (B), the Secretary of Agriculture
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report--
(i) detailing the timeliness of eligibility
determinations and final determinations with respect to
applications under sections 502 and 504 of the Housing Act
of 1949 (42 U.S.C. 1472, 1474), including justifications
for any eligibility determinations taking longer than 90
days; and
(ii) that includes recommendations to shorten the
timeline for notifications of eligibility determinations
described in clause (i) to not more than 90 days.
(B) Date described.--The date described in this
subparagraph is the date on which, during the preceding 5-year
period, the Secretary of Agriculture provides each eligibility
determination described in subparagraph (A) during the 90-day
period beginning on the date on which each application is
received.
SEC. 503. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.
Section 414 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11373) is amended by adding at the end the following:
``(f) Funding Cap Waiver Authority.--
``(1) In general.--Notwithstanding any other provision of law
or regulation, a recipient may request a waiver to the expenditure
limit established pursuant to section 415(b) for amounts provided
for each of fiscal years 2027 through 2030.
``(2) Waiver request.--
``(A) In general.--A recipient seeking a waiver described
in paragraph (1) shall submit to the Secretary a waiver request
that includes not more than the following:
``(i) A demonstration of local needs and circumstances
that necessitate a waiver.
``(ii) A detailed plan for how the recipient intends to
use funds.
``(iii) A justification for how the proposed use of
funds supports the most recent Consolidated Plan submitted
by the recipient.
``(iv) Any public input solicited under subparagraph
(B)(ii).
``(B) Notification.--Each recipient shall--
``(i) notify all subrecipients and local Continuums of
Care that serve the recipient's geographic area of the
availability of waivers under this subsection; and
``(ii) prior to the submission of a waiver request
under subparagraph (A), solicit public input regarding the
potential need for and proposed uses of such waiver.
``(C) Approval; publication.--The Secretary shall--
``(i) make all waiver requests submitted under
subparagraph (A) publicly available on the website of the
Department of Housing and Urban Development;
``(ii) not later than 60 days after the date on which
the Secretary receives a waiver request under subparagraph
(A), approve or deny the request; and
``(iii) deny any waiver request submitted under
subparagraph (A) by a recipient that relocates or threaten
to relocate individuals or their property without providing
emergency shelter, rapid rehousing, transitional housing,
permanent supportive housing, or other permanent housing
options.
``(3) Revocation.--
``(A) In general.--A waiver approved under this subsection
shall remain in effect for the duration of the period of
performance of fiscal year 2027 through 2030 grants, unless the
recipient notifies the Secretary in writing that the recipient
wishes to revoke the waiver.
``(B) Notification.--If a recipient intends to revoke a
waiver under subparagraph (A), the recipient shall--
``(i) solicit input from subrecipients regarding the
revocation before submitting the revocation; and
``(ii) provide subrecipients with a summary of the
input and the justification for the revocation in its
submittal prior to notifying the Secretary in writing.
``(C) Publication.--The Secretary shall publish any
revocation of a waiver under subparagraph (A) and the
justification of the recipient for the waiver on the website of
the Department of Housing and Urban Development.''.
SEC. 504. REFORMING DISASTER RECOVERY ACT.
(a) Definitions.--In this section:
(1) Department.--The term ``Department'' means the Department
of Housing and Urban Development.
(2) Fund.--The term ``Fund'' means the Long-Term Disaster
Recovery Fund established under subsection (c).
(3) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) Duties of the Department of Housing and Urban Development.--
(1) In general.--The offices and officers of the Department
shall be responsible for--
(A) leading and coordinating the disaster-related
responsibilities of the Department under the National Response
Framework, the National Disaster Recovery Framework, and the
National Mitigation Framework;
(B) coordinating and administering programs, policies, and
activities of the Department related to disaster relief, long-
term recovery, resiliency, and mitigation, including disaster
recovery assistance under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.);
(C) supporting disaster-impacted communities as those
communities specifically assess, plan for, and address the
housing stock and housing needs in the transition from
emergency shelters and interim housing to permanent housing of
those displaced, especially among vulnerable populations and
extremely low-, low-, and moderate-income households;
(D) collaborating with the Federal Emergency Management
Agency and the Small Business Administration and across the
Department to align disaster-related regulations and policies,
including incorporation of consensus-based codes and standards
and insurance purchase requirements, and ensuring coordination
and reducing duplication among other Federal disaster recovery
programs;
(E) promoting best practices in mitigation and resilient
land use planning;
(F) coordinating technical assistance, including
mitigation, resiliency, and recovery training and information
on all relevant legal and regulatory requirements, to entities
that receive disaster recovery assistance under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301
et seq.) that demonstrate capacity constraints; and
(G) supporting State, Tribal, and local governments in
developing, coordinating, and maintaining their capacity for
disaster resilience and recovery and developing pre-disaster
recovery and hazard mitigation plans, in coordination with the
Federal Emergency Management Agency and other Federal agencies.
(2) Establishment of the office of disaster management and
resiliency.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the end
the following:
``(i) Office of Disaster Management and Resiliency.--
``(1) Establishment.--There is established the Office of
Disaster Management and Resiliency.
``(2) Duties.--The Office of Disaster Management and Resiliency
shall--
``(A) be responsible for oversight and coordination of all
departmental disaster preparedness and response
responsibilities; and
``(B) coordinate with the Federal Emergency Management
Agency, the Small Business Administration, and other offices of
the Department in supporting recovery and resilience activities
to provide a comprehensive approach in working with
communities.''.
(c) Long-Term Disaster Recovery Fund.--
(1) Establishment.--There is established in the Treasury of the
United States an account to be known as the ``Long-Term Disaster
Recovery Fund''.
(2) Deposits, transfers, and credit.--
(A) In general.--The Fund shall consist of amounts
appropriated, transferred, and credited to the Fund.
(B) Transfers.--The following may be transferred to the
Fund:
(i) Amounts made available through section 106(c)(4) of
the Housing and Community Development Act of 1974 (42
U.S.C. 5306(c)(4)) as a result of actions taken under
section 104(e), 111, or 124(j) of such Act.
(ii) Any unobligated balances available until expended
remaining or subsequently recaptured from amounts
appropriated for any disaster and related purposes under
the heading ``Community Development Fund'' in any Act prior
to the establishment of the Fund.
(C) Use of transferred amounts.--Amounts transferred to the
Fund shall be used for the eligible uses described in paragraph
(3).
(3) Eligible uses of fund.--
(A) In general.--Amounts in the Fund shall be available--
(i) to provide assistance in the form of grants under
section 124 of the Housing and Community Development Act of
1974, as added by subsection (d); and
(ii) for activities of the Department that support the
provision of such assistance, including necessary salaries
and expenses, information technology, and capacity
building, technical assistance, and pre-disaster readiness.
(B) Set-aside.--Of each amount appropriated for or
transferred to the Fund, 3 percent shall be made available for
activities described in subparagraph (A)(ii), which shall be in
addition to other amounts made available for those activities.
(C) Transfer of funds.--With respect to amounts made
available for use in accordance with subparagraph (B)--
(i) amounts may be transferred to the account under the
heading for ``Program Offices--Salaries and Expenses--
Community Planning and Development'', or any successor
account, for the Department to carry out activities
described in subparagraph(B); and
(ii) amounts may be used for the activities described
in subparagraph (A)(ii) and for the administrative costs of
administering any funds appropriated to the Department
under the heading ``Community Planning and Development--
Community Development Fund'' for any major disaster
declared under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5170) in any Act before the establishment of the Fund.
(D) Inspector general.--
(i) In general.--Not less than one-tenth of 1 percent
of each series of awards the Secretary makes from the Fund
shall be transferred to the account under the heading
``Office of Inspector General'' for the Department of
Housing and Urban Development to support audit activities
and to investigate grantee noncompliance with program
requirements and waste, fraud, and abuse as a result of
appropriations made available through the Fund.
(ii) Availability.--Funding under clause (i) shall not
be made available to the Office of Inspector General until
90 days after the date on which the grantee plan or
supplemental plan for the grantee is approved by the
Secretary under subsection (c) or (f)(3)(C) of section 124
of the Housing and Community Development Act of 1974, as
added by subsection (d), is approved by the Secretary.
(4) Interchangeability of prior administrative amounts.--Any
amounts appropriated in any Act prior to the establishment of the
Fund and transferred to the account under the heading ``Program
Offices--Salaries and Expenses--Community Planning and
Development'', or any predecessor account, for the Department for
the costs of administering funds appropriated to the Department
under the heading ``Community Planning and Development--Community
Development Fund'' for any major disaster declared under section
401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) shall be available for the costs of
administering any such funds provided by any prior or future Act,
notwithstanding the purposes for which those amounts were
appropriated and in addition to any amount provided for the same
purposes in other appropriations Acts.
(5) Availability of amounts.--Amounts appropriated,
transferred, and credited to the Fund shall remain available until
expended.
(6) Formula allocation.--Use of amounts in the Fund for grants
shall be made by formula allocation in accordance with the
requirements of section 124(a) of the Housing and Community
Development Act of 1974, as added by subsection (d).
(d) Establishment of CDBG Disaster Recovery Program.--Title I of
the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et
seq.), as amended by this Act, is amended--
(1) in section 102(a) (42 U.S.C. 5302(a))--
(A) in paragraph (20)--
(i) by redesignating subparagraph (B) as subparagraph
(C);
(ii) in subparagraph (C), as so redesignated, by
inserting ``or (B)'' after ``subparagraph (A)''; and
(iii) by inserting after subparagraph (A) the
following:
``(B) The term `persons of extremely low income' means
families and individuals whose income levels do not exceed
household income levels determined by the Secretary under
section 3(b)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(2)(C)), except that the Secretary may provide
alternative definitions for the Commonwealth of Puerto Rico,
Guam, the Commonwealth of the Northern Mariana Islands, the
United States Virgin Islands, and American Samoa.''; and
(B) by adding at the end the following:
``(25) The term `major disaster' has the meaning given the term
in section 102 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122).'';
(2) in section 106(c)(4) (42 U.S.C. 5306(c)(4))--
(A) in subparagraph (A)--
(i) by striking ``declared by the President under the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act'';
(ii) by inserting ``States for use in nonentitlement
areas and to'' before ``metropolitan cities''; and
(iii) by inserting ``major'' after ``affected by the'';
(B) in subparagraph (C)--
(i) by striking ``metropolitan city or'' and inserting
``State, metropolitan city, or'';
(ii) by striking ``city or county'' and inserting
``State, city, or county''; and
(iii) by inserting ``major'' before ``disaster'';
(C) in subparagraph (D), by striking ``metropolitan cities
and'' and inserting ``States, metropolitan cities, and'';
(D) in subparagraph (F)--
(i) by striking ``metropolitan city or'' and inserting
``State, metropolitan city, or''; and
(ii) by inserting ``major'' before ``disaster''; and
(E) in subparagraph (G), by striking ``metropolitan city
or'' and inserting ``State, metropolitan city, or'';
(3) in section 122 (42 U.S.C. 5321), by striking ``disaster
under title IV of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act'' and inserting ``major disaster''; and
(4) by adding at the end the following:
``SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY
PROGRAM.
``(a) Authorization, Formula, and Allocation.--
``(1) Authorization.--The Secretary is authorized to make
community development block grant disaster recovery grants from the
Long-Term Disaster Recovery Fund established under section 504(c)
of the 21st Century ROAD to Housing Act (in this section referred
to as the `Fund') for necessary expenses for activities authorized
under subsection (f)(1) related to disaster relief, long-term
recovery, restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and distressed
areas resulting from a catastrophic major disaster.
``(2) Grant awards.--Grants shall be awarded under this section
to States, units of general local government, and Indian tribes
based on capacity and the concentration of damage, as determined by
the Secretary, to support the efficient and effective
administration of funds.
``(3) Section 106 allocations.--Grants under this section shall
not be considered relevant to the formula allocations made pursuant
to section 106.
``(4) Federal register notice.--
``(A) In general.--Not later than 30 days after the date of
enactment of this section, the Secretary shall issue a notice
in the Federal Register containing the latest formula
allocation methodologies used to determine the total estimate
of unmet needs related to housing, economic revitalization, and
infrastructure in the most impacted and distressed areas
resulting from a catastrophic major disaster.
``(B) Public comment.--If the Secretary has not already
requested public comment on the formula described in the notice
required by subparagraph (A), the Secretary shall solicit
public comments on--
``(i) the methodologies described in subparagraph (A)
and seek alternative methods for formula allocation within
a similar total amount of funding;
``(ii) the impact of formula methodologies on rural
areas and Tribal areas;
``(iii) adjustments to improve targeting to the most
serious needs;
``(iv) objective criteria for grantee capacity and
concentration of damage to inform grantee determinations
and minimum allocation thresholds; and
``(v) research and data to inform an additional amount
to be provided for mitigation depending on type of
disaster, which shall be up to 18 percent of the total
estimate of unmet needs.
``(5) Regulations.--
``(A) In general.--The Secretary shall, by regulation,
establish a formula to allocate assistance from the Fund to the
most impacted and distressed areas resulting from a
catastrophic major disaster.
``(B) Formula requirements.--The formula established under
subparagraph (A) shall--
``(i) set forth criteria to determine that a major
disaster is catastrophic, which criteria shall consider the
presence of a high concentration of damaged housing or
businesses that individual, State, Tribal, and local
resources could not reasonably be expected to address
without additional Federal assistance or other nationally
encompassing data that the Secretary determines are
adequate to assess relative impact and distress across
geographic areas;
``(ii) include a methodology for identifying most
impacted and distressed areas, which shall consider unmet
serious needs related to housing, economic revitalization,
and infrastructure;
``(iii) include an allocation calculation that
considers the unmet serious needs resulting from the
catastrophic major disaster and an additional amount up to
18 percent for activities to reduce risks of loss resulting
from other natural disasters in the most impacted and
distressed area, primarily for the benefit of low- and
moderate-income persons, with particular focus on
activities that reduce repetitive loss of property and
critical infrastructure; and
``(iv) establish objective criteria for periodic review
and updates to the formula to reflect changes in available
data.
``(C) Minimum allocation threshold.--The Secretary shall,
by regulation, establish a minimum allocation threshold.
``(D) Interim allocation.--Until such time that the
Secretary issues final regulations under this paragraph, the
Secretary shall--
``(i) allocate assistance from the Fund using the
formula allocation methodology published in accordance with
paragraph (4); and
``(ii) include an additional amount for mitigation of
up to 18 percent of the total estimate of unmet need.
``(6) Allocation of funds.--
``(A) In general.--The Secretary shall--
``(i) except as provided in clause (ii), not later than
90 days after the President declares a major disaster, use
best available data to determine whether the major disaster
is catastrophic and qualifies for assistance under the
formula described in paragraph (4) or (5), unless data is
insufficient to make this determination; and
``(ii) if the best available data is insufficient to
make the determination required under clause (i) within the
90-day period described in that clause, determine whether
the major disaster qualifies when sufficient data becomes
available, but in no case shall the Secretary make the
determination later than 120 days after the declaration of
the major disaster.
``(B) Announcement of allocation.--If amounts are available
in the Fund at the time the Secretary determines that the major
disaster is catastrophic and qualifies for assistance under the
formula described in paragraph (4) or (5), the Secretary shall
immediately announce an allocation for a grant under this
section.
``(C) Additional amounts.--If additional amounts are
appropriated to the Fund after amounts are allocated under
subparagraph (B), the Secretary shall announce an allocation or
additional allocation (if a prior allocation under subparagraph
(B) was less than the formula calculation) within 15 days of
any such appropriation.
``(7) Preliminary funding.--
``(A) In general.--To speed recovery, the Secretary is
authorized to allocate and award preliminary grants from the
Fund before making a determination under paragraph (6)(A) if
the Secretary projects, based on a preliminary assessment of
impact and distress, that a major disaster is catastrophic and
would likely qualify for funding under the formula described in
paragraph (4) or (5).
``(B) Amount.--
``(i) Maximum.--The Secretary may award preliminary
funding under subparagraph (A) in an amount that is not
more than $5,000,000.
``(ii) Sliding scale.--The Secretary shall, by
regulation, establish a sliding scale for preliminary
funding awarded under subparagraph (A) based on the size of
the preliminary assessment of impact and distress.
``(C) Use of funds.--The uses of preliminary funding
awarded under subparagraph (A) shall be limited to eligible
activities that--
``(i) in the determination of the Secretary, will
support faster recovery, improve the ability of the grantee
to assess unmet recovery needs, plan for the prevention of
improper payments, and reduce fraud, waste, and abuse; and
``(ii) may include evaluating the interim housing,
permanent housing, and supportive service needs of the
disaster impacted community, with special attention to
vulnerable populations, such as homeless and low- to
moderate-income households, to inform the grantee action
plan required under subsection (c).
``(D) Consideration of funding.--Preliminary funding
awarded under subparagraph (A)--
``(i) is not subject to the certification requirements
of subsection (h)(2); and
``(ii) shall not be considered when calculating the
amount of the grant used for administrative costs,
technical assistance, and planning activities that are
subject to the requirements under subsection (f)(3).
``(E) Waiver.--To expedite the use of preliminary funding
for activities described in this paragraph, the Secretary may
waive or specify alternative requirements to the requirements
of this section in accordance with subsection (i).
``(F) Amended award.--
``(i) In general.--An award for preliminary funding
under subparagraph (A) may be amended to add any subsequent
amount awarded because of a determination by the Secretary
that a major disaster is catastrophic and qualifies for
assistance under the formula.
``(ii) Applicability.--Notwithstanding subparagraph
(D), amounts provided by an amendment under clause (i) are
subject to the requirements under subsections (f)(1) and
(h)(1) and other requirements on grant funds under this
section.
``(G) Technical assistance.--Concurrent with the allocation
of any preliminary funding awarded under this paragraph, the
Secretary shall assign or provide technical assistance to the
recipient of the grant.
``(b) Interchangeability.--
``(1) In general.--The Secretary is authorized to approve the
use of grants under this section to be used interchangeably and
without limitation for the same activities in the most impacted and
distressed areas resulting from a declaration of another
catastrophic major disaster that qualifies for assistance under the
formula established under paragraph (4) or (5) of subsection (a) or
a major disaster for which the Secretary allocated funds made
available under the heading `Community Development Fund' in any Act
prior to the establishment of the Fund.
``(2) Requirements.--The Secretary shall establish requirements
to expedite the use of grants under this section for the purpose
described in paragraph (1).
``(3) Emergency designation.--Amounts repurposed pursuant to
this subsection that were previously designated by Congress as an
emergency requirement pursuant to the Balanced Budget and Emergency
Deficit Control Act of 1985 or a concurrent resolution on the
budget are designated by the Congress as being for an emergency
requirement pursuant to section 4001(a)(1) of S. Con. Res. 14
(117th Congress), the concurrent resolution on the budget for
fiscal year 2022, and to legislation establishing fiscal year 2026
budget enforcement in the House of Representatives.
``(c) Grantee Plans.--
``(1) Requirement.--Not later than 90 days after the date on
which the Secretary announces a grant allocation under this
section, unless an extension is granted by the Secretary, the
grantee shall submit to the Secretary a plan for approval
describing--
``(A) the activities the grantee will carry out with the
grant under this section;
``(B) the criteria of the grantee for awarding assistance
and selecting activities;
``(C) how the use of the grant under this section will
address disaster relief, long-term recovery, restoration of
housing and infrastructure, economic revitalization, and
mitigation in the most impacted and distressed areas;
``(D) how the use of the grant funds for mitigation is
consistent with hazard mitigation plans submitted to the
Federal Emergency Management Agency under section 322 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5165);
``(E) the estimated amount proposed to be used for
activities that will benefit persons of low and moderate
income;
``(F) how the use of grant funds will repair and replace
existing housing stock for vulnerable populations, including
low- to moderate-income households;
``(G) how the grantee will address the priorities described
in paragraph (5);
``(H) how uses of funds are proportional to unmet needs, as
required under paragraph (6);
``(I) for State grantees that plan to distribute grant
amounts to units of general local government, a description of
the method of distribution; and
``(J) such other information as may be determined by the
Secretary in regulation.
``(2) Public consultation.--To permit public examination and
appraisal of the plan described in paragraph (1), to enhance the
public accountability of grantee, and to facilitate coordination of
activities with different levels of government, when developing the
plan or substantial amendments proposed to the plan required under
paragraph (1), a grantee shall--
``(A) publish the plan before adoption;
``(B) provide citizens, affected units of general local
government, and other interested parties with reasonable notice
of, and opportunity to comment on, the plan, with a public
comment period of not less than 14 days;
``(C) consider comments received before submission to the
Secretary;
``(D) follow a citizen participation plan for disaster
assistance adopted by the grantee that, at a minimum, provides
for participation of residents of the most impacted and
distressed area affected by the major disaster that resulted in
the grant under this section and other considerations
established by the Secretary; and
``(E) undertake any consultation with interested parties as
may be determined by the Secretary in regulation.
``(3) Approval.--The Secretary shall--
``(A) by regulation, specify criteria for the approval,
partial approval, or disapproval of a plan submitted under
paragraph (1), including approval of substantial amendments to
the plan;
``(B) review a plan submitted under paragraph (1) upon
receipt of the plan;
``(C) allow a grantee to revise and resubmit a plan or
substantial amendment to a plan under paragraph (1) that the
Secretary disapproves;
``(D) by regulation, specify criteria for when the grantee
shall be required to provide the required revisions to a
disapproved plan or substantial amendment under paragraph (1)
for public comment prior to resubmission of the plan or
substantial amendment to the Secretary; and
``(E) approve, partially approve, or disapprove a plan or
substantial amendment under paragraph (1) not later than 60
days after the date on which the plan or substantial amendment
is received by the Secretary.
``(4) Low- and moderate-income overall benefit.--
``(A) Use of funds.--Not less than 70 percent of a grant
made under this section shall be used for activities that
benefit persons of low and moderate income unless the
Secretary--
``(i) specifically finds that--
``(I) there is compelling need to reduce the
percentage for the grant; and
``(II) the housing needs of low- and moderate-
income persons have been addressed; and
``(ii) issues a waiver and alternative requirement
specific to the grant pursuant to subsection (i) to lower
the percentage.
``(B) Regulations.--The Secretary shall, by regulation,
establish protocols that reflect the required use of funds
under subparagraph (A), including persons with extremely and
very low incomes.
``(5) Prioritization.--The grantee shall prioritize activities
that--
``(A) assist persons with extremely low-, low-, and
moderate-incomes and other vulnerable populations to better
recover from and withstand future disasters;
``(B) address housing needs arising from a disaster, or
those needs present prior to a disaster, including the needs of
both renters and homeowners;
``(C) prolong the life of housing and infrastructure;
``(D) use cost-effective means of preventing harm to people
and property and incorporate protective features and
redundancies; and
``(E) other measures that will assure the continuation of
critical services during future disasters.
``(6) Proportional allocation.--For each specific disaster, a
grantee under this section shall allocate grant funds proportional
to unmet needs between housing activities for renters and
homeowners, economic revitalization, and infrastructure unless the
Secretary specifically finds that--
``(A) there is a compelling need for a disproportional
allocation among those unmet needs; and
``(B) the disproportional allocation described in
subparagraph (A) is not inconsistent with the requirements
under paragraph (4).
``(7) Disaster risk mitigation.--
``(A) Definition.--In this paragraph, the term `hazard-
prone areas'--
``(i) means areas identified by the Secretary, in
consultation with the Administrator of the Federal
Emergency Management Agency, at risk from natural hazards
that threaten property damage or health, safety, and
welfare, such as floods, wildfires (including Wildland-
Urban Interface areas), earthquakes, lava inundation,
tornados, and high winds; and
``(ii) includes areas having special flood hazards as
identified under the Flood Disaster Protection Act of 1973
(42 U.S.C. 4002 et seq.) or the National Flood Insurance
Act of 1968 (42 U.S.C. 4001 et seq.).
``(B) Hazard-prone areas.--The Secretary, in consultation
with the Administrator of the Federal Emergency Management
Agency, shall establish minimum construction standards,
insurance purchase requirements, and other requirements for the
use of grant funds in hazard-prone areas.
``(C) Special flood hazards.--
``(i) In general.--For the areas described in
subparagraph (A)(ii), the insurance purchase requirements
established under subparagraph (B) shall meet or exceed the
requirements under section 102(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(a)).
``(ii) Treatment as financial assistance.--All grants
under this section shall be treated as financial assistance
for purposes of section 3(a)(3) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4003(a)(3)).
``(D) Consideration of future risks.--The Secretary may
consider future risks to protecting property and health,
safety, and general welfare, and the likelihood of those risks,
when making the determination of or modification to hazard-
prone areas under this paragraph.
``(8) Relocation.--
``(A) In general.--The Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601
et seq.) shall apply to activities assisted under this section
to the extent determined by the Secretary in regulation, or as
provided in waivers or alternative requirements authorized in
accordance with subsection (i).
``(B) Policy.--Each grantee under this section shall
establish a relocation assistance policy that--
``(i) minimizes displacement and describes the benefits
available to persons displaced as a direct result of
acquisition, rehabilitation, or demolition in connection
with an activity that is assisted by a grant under this
section; and
``(ii) includes any appeal rights or other requirements
that the Secretary establishes by regulation.
``(d) Certifications.--Any grant under this section shall be made
only if the grantee certifies to the satisfaction of the Secretary
that--
``(1) the grantee is in full compliance with the requirements
under subsection (c)(2);
``(2) for grants other than grants to Indian tribes, the grant
will be conducted and administered in conformity with the Civil
Rights Act of 1964 (42 U.S.C. 2000a et seq.) and the Fair Housing
Act (42 U.S.C. 3601 et seq.);
``(3) the projected use of funds has been developed so as to
give maximum feasible priority to activities that will benefit
recipients described in subsection (c)(4)(A) and activities
described in subsection (c)(5), and may also include activities
that are designed to aid in the prevention or elimination of slum
and blight to support disaster recovery, meet other community
development needs having a particular urgency because existing
conditions pose a serious and immediate threat to the health or
welfare of the community where other financial resources are not
available to meet such needs, and alleviate future threats to human
populations, critical natural resources, and property that an
analysis of hazards shows are likely to result from natural
disasters in the future;
``(4) the grant funds shall principally benefit persons of low-
and moderate-income as described in subsection (c)(4)(A);
``(5) for grants other than grants to Indian tribes, within 24
months of receiving a grant or at the time of its 3- or 5-year
update, whichever is sooner, the grantee will review and make
modifications to its non-disaster housing and community development
plans and strategies required by subsections (c) and (m) of section
104 to reflect the disaster recovery needs identified by the
grantee and consistency with the plan under subsection (c)(1);
``(6) the grantee will not attempt to recover any capital costs
of public improvements assisted in whole or part under this section
by assessing any amount against properties owned and occupied by
persons of low and moderate income, including any fee charged or
assessment made as a condition of obtaining access to such public
improvements, unless--
``(A) funds received under this section are used to pay the
proportion of such fee or assessment that relates to the
capital costs of such public improvements that are financed
from revenue sources other than under this chapter; or
``(B) for purposes of assessing any amount against
properties owned and occupied by persons of moderate income,
the grantee certifies to the Secretary that the grantee lacks
sufficient funds received under this section to comply with the
requirements of subparagraph (A);
``(7) the grantee will comply with the other provisions of this
title that apply to assistance under this section and with other
applicable laws;
``(8) the grantee will follow a relocation assistance policy
that includes any minimum requirements identified by the Secretary;
and
``(9) the grantee will adhere to construction standards,
insurance purchase requirements, and other requirements for
development in hazard-prone areas described in subsection (c)(7).
``(e) Performance Reviews and Reporting.--
``(1) In general.--The Secretary shall, on not less frequently
than an annual basis until the closeout of a particular grant
allocation, make such reviews and audits as may be necessary or
appropriate to determine whether a grantee under this section has--
``(A) carried out activities using grant funds in a timely
manner;
``(B) met the performance targets established by paragraph
(2);
``(C) carried out activities using grant funds in
accordance with the requirements of this section, the other
provisions of this title that apply to assistance under this
section, and other applicable laws; and
``(D) a continuing capacity to carry out activities in a
timely manner.
``(2) Performance targets.--The Secretary shall develop and
make publicly available critical performance targets for review,
which shall include spending thresholds for each year from the date
on which funds are obligated by the Secretary to the grantee until
such time all funds have been expended.
``(3) Failure to meet targets.--
``(A) Suspension.--If a grantee under this section fails to
meet 1 or more critical performance targets under paragraph
(2), the Secretary may temporarily suspend the grant.
``(B) Performance improvement plan.--If the Secretary
suspends a grant under subparagraph (A), the Secretary shall
provide to the grantee a performance improvement plan with the
specific requirements needed to lift the suspension within a
defined time period.
``(C) Report.--If a grantee fails to meet the spending
thresholds established under paragraph (2), the grantee shall
submit to the Secretary, the appropriate committees of
Congress, and each member of Congress who represents a district
or State of the grantee a written report identifying technical
capacity, funding, or other Federal or State impediments
affecting the ability of the grantee to meet the spending
thresholds.
``(4) Collection of information and reporting.--
``(A) Requirement to report.--A grantee under this section
shall provide to the Secretary such information as the
Secretary may determine necessary for adequate oversight of the
grant program under this section.
``(B) Public availability.--Subject to subparagraph (D),
the Secretary shall make information submitted under
subparagraph (A) available to the public and to the Inspector
General for the Department of Housing and Urban Development.
``(C) Summary status reports.--To increase transparency and
accountability of the grant program under this section, the
Secretary shall, on not less frequently than an annual basis,
post on a public facing dashboard summary status reports for
all active grants under this section that includes--
``(i) the status of funds by activity;
``(ii) the percentages of funds allocated and expended
to benefit low- and moderate-income communities;
``(iii) performance targets, spending thresholds, and
accomplishments; and
``(iv) other information the Secretary determines to be
relevant for transparency.
``(D) Considerations.--In carrying out this paragraph, the
Secretary shall take such actions as may be necessary to ensure
that personally identifiable information regarding applicants
for assistance provided from funds made available under this
section is not made publicly available.
``(E) Research partnerships.--
``(i) In general.--The Secretary may, upon a formal
request from researchers, make disaggregated information
available to the requestor that is specific and relevant to
the research being conducted, and for the purposes of
researching program impact and efficacy.
``(ii) Privacy protections.--In making information
available under clause (i), the Secretary shall protect
personally identifiable information as required under
section 552a of title 5, United States Code (commonly known
as the `Privacy Act of 1974').
``(f) Eligible Activities.--
``(1) In general.--Activities assisted under this section--
``(A) may include activities permitted under section 105 or
other activities permitted by the Secretary by waiver or
alternative requirement pursuant to subsection (i); and
``(B) shall be related to disaster relief, long-term
recovery, restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed areas resulting from the major disaster for which
the grant was awarded.
``(2) Prohibition.--Grant funds under this section may not be
used for costs reimbursable by, or for which funds have been made
available by, the Federal Emergency Management Agency or the United
States Army Corps of Engineers.
``(3) Administrative costs, technical assistance, and
planning.--
``(A) In general.--The Secretary shall establish in
regulation the maximum grant amounts a grantee may use for
administrative costs, technical assistance, and planning
activities, taking into consideration size of grant, complexity
of recovery, and other factors as determined by the Secretary,
but not to exceed 8 percent for administration and 20 percent
in total.
``(B) Availability.--Amounts available for administrative
costs for a grant under this section shall be available for
eligible administrative costs of the grantee for any grant made
under this section, without regard to a particular disaster.
``(C) Supplemental plan.--
``(i) In general.--Grantees may submit to the Secretary
an optional supplemental plan to the grantee plan required
under this title specifically for administrative costs,
which shall include a description of the use of all grant
funds for administrative costs, including for any eligible
pre-award program administrative costs, and how such uses
will prepare the grantee to more effectively and
expeditiously administer funds provided under the full
plan.
``(ii) Use of funds.--If a supplemental plan is
approved under clause (i), a grantee may draw down the
aforementioned administrative funds before the full grantee
plan is approved.
``(iii) Waivers.--In carrying out this subparagraph,
the Secretary may include any waivers or alternative
requirements in accordance with subsection (i).
``(4) Program income.--Notwithstanding any other provision of
law, any grantee under this section may retain program income that
is realized from grants made by the Secretary under this section if
the grantee agrees that the grantee will utilize the program income
in accordance with the requirements for grants under this section,
except that the Secretary may--
``(A) by regulation, exclude from consideration as program
income any amounts determined to be so small that compliance
with this paragraph creates an unreasonable administrative
burden on the grantee; or
``(B) permit the grantee to transfer remaining program
income to the other grants of the grantee under this title upon
closeout of the grant.
``(5) Prohibition on use of assistance for employment
relocation activities.--
``(A) In general.--Grants under this section may not be
used to assist directly in the relocation of any industrial or
commercial plant, facility, or operation, from one area to
another area, if the relocation is likely to result in a
significant loss of employment in the labor market area from
which the relocation occurs.
``(B) Applicability.--The prohibition under subparagraph
(A) shall not apply to a business that was operating in the
disaster-declared labor market area before the incident date of
the applicable disaster and has since moved, in whole or in
part, from the affected area to another State or to a labor
market area within the same State to continue business.
``(6) Requirements.--Grants under this section are subject to
the requirements of this section, the other provisions of this
title that apply to assistance under this section, and other
applicable laws, unless modified by waivers or alternative
requirements in accordance with subsection (i).
``(g) Environmental Review.--
``(1) Adoption.--A recipient of funds provided under this
section that uses the funds to supplement Federal assistance
provided under section 203, 402, 403, 404, 406, 407, 408(c)(4),
428, or 502 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172, 5173,
5174(c)(4), 5189f, 5192) may adopt, without review or public
comment, any environmental review, approval, or permit performed by
a Federal agency, and such adoption shall satisfy the
responsibilities of the recipient with respect to such
environmental review, approval, or permit under section 104(g)(1),
so long as the actions covered by the existing environmental
review, approval, or permit and the actions proposed for these
supplemental funds are substantially the same.
``(2) Approval of release of funds.--Notwithstanding section
104(g)(2), the Secretary or a State may, upon receipt of a request
for release of funds and certification, immediately approve the
release of funds for an activity or project to be assisted under
this section if the recipient has adopted an environmental review,
approval, or permit under paragraph (1) or the activity or project
is categorically excluded from review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(3) Units of general local government.--The provisions of
section 104(g)(4) shall apply to assistance under this section that
a State distributes to a unit of general local government.
``(h) Financial Controls and Procedures.--
``(1) In general.--The Secretary shall develop requirements and
procedures to demonstrate that a grantee under this section--
``(A) has adequate financial controls and procurement
processes;
``(B) has adequate procedures to detect and prevent fraud,
waste, abuse, and duplication of benefit; and
``(C) maintains a comprehensive and publicly accessible
website.
``(2) Certification.--Before making a grant under this section,
the Secretary shall certify that the grantee has in place
proficient processes and procedures to comply with the requirements
developed under paragraph (1), as determined by the Secretary.
``(3) Compliance before allocation.--The Secretary may permit a
State, unit of general local government, or Indian tribe to
demonstrate compliance with the requirements for adequate financial
controls developed under paragraph (1) before a disaster occurs and
before receiving an allocation for a grant under this section.
``(4) Duplication of benefits.--
``(A) In general.--Funds made available under this section
shall be used in accordance with section 312 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5155) and such rules as may be prescribed under such
section 312.
``(B) Penalties.--In any case in which the use of grant
funds under this section results in a prohibited duplication of
benefits, the grantee shall--
``(i) apply an amount equal to the identified
duplication to any allowable costs of the award consistent
with an actual, immediate cash requirement;
``(ii) remit any excess amounts to the Secretary to be
credited to the obligated, undisbursed balance of the grant
consistent with requirements on Federal payments applicable
to such grantee; and
``(iii) if excess amounts under clause (ii) are
identified after the period of performance or after the
closeout of the award, remit such amounts to the Secretary
to be credited to the Fund.
``(C) Failure to comply.--Any grantee provided funds under
this section or from prior appropriations Acts under the
heading `Community Development Fund' for purposes related to
major disasters that fails to comply with section 312 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5155) or fails to satisfy penalties to resolve a
duplication of benefits shall be subject to remedies for
noncompliance under section 111, unless the Secretary publishes
a determination in the Federal Register that it is not in the
best interest of the Federal Government to pursue remedial
actions.
``(i) Waivers and Alternative Requirements.--
``(1) In general.--In administering grants under this section,
the Secretary may waive, or specify alternative requirements for,
any provision of any statute or regulation that the Secretary
administers in connection with the obligation by the Secretary or
the use by the grantee of those funds (except for requirements
related to fair housing, nondiscrimination, labor standards, the
environment, and the requirements of this section that do not
expressly authorize modifications by waiver or alternative
requirement), if the Secretary makes a public finding that good
cause exists for the waiver or alternative requirement.
``(2) Effective date.--A waiver or alternative requirement
described in paragraph (1) shall not take effect before the date
that is 5 days after the date of publication of the waiver or
alternative requirement on the website of the Department of Housing
and Urban Development or the effective date for any regulation
published in the Federal Register.
``(3) Public notification.--The Secretary shall notify the
public of all waivers or alternative requirements described in
paragraph (1) in accordance with the requirements of section
7(q)(3) of the Department of Housing and Urban Development Act (42
U.S.C. 3535(q)(3)).
``(j) Unused Amounts.--
``(1) Deadline to use amounts.--A grantee under this section
shall use an amount equal to the grant within 6 years beginning on
the date on which the Secretary obligates the amounts to the
grantee, as such period may be extended under paragraph (4).
``(2) Recapture.--The Secretary shall recapture and credit to
the Fund any amount that is unused by a grantee under this section
upon the earlier of--
``(A) the date on which the grantee notifies the Secretary
that the grantee has completed all activities identified in the
disaster grantee's plan under subsection (c); or
``(B) the expiration of the 6-year period described in
paragraph (1), as such period may be extended under paragraph
(4).
``(3) Retention of funds.--Notwithstanding paragraph (1), the
Secretary--
``(A) shall allow a grantee under this section to retain
amounts needed to close out grants; and
``(B) may allow a grantee under this section to retain up
to 10 percent of the remaining funds to support maintenance of
the minimal capacity to launch a new program in the event of a
future disaster and to support pre-disaster long-term recovery
and mitigation planning.
``(4) Extension of period for use of funds.--The Secretary may
extend the 6-year period described in paragraph (1) by not more
than 4 years, or not more than 6 years for mitigation activities,
if--
``(A) the grantee submits to the Secretary--
``(i) written documentation of the exigent
circumstances impacting the ability of the grantee to
expend funds that could not be anticipated; or
``(ii) a justification that such request is necessary
due to the nature and complexity of the program and
projects; and
``(B) the Secretary submits a written justification for the
extension to the Committee on Appropriations and the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Appropriations and the Committee on Financial
Services of the House of Representatives that specifies the
period of that extension.
``(k) Definition.--In this section, the term `Indian tribe' has the
meaning given the term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).''.
(e) Regulations.--
(1) Proposed rules.--Following consultation with the Federal
Emergency Management Agency, the Small Business Administration, and
other Federal agencies, not later than 6 months after the date of
enactment of this Act, the Secretary shall issue proposed rules to
carry out this section and the amendments made by this section and
shall provide a 90-day period for submission of public comments on
those proposed rules.
(2) Final rules.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall issue final regulations
to carry out section 124 of the Housing and Community Development
Act of 1974, as added by subsection (d).
(f) Coordination of Disaster Recovery Assistance, Benefits, and
Data With Other Federal Agencies.--
(1) Coordination of disaster recovery assistance.--In order to
ensure a comprehensive approach to Federal disaster relief, long-
term recovery, restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and distressed
areas resulting from a catastrophic major disaster, the Secretary
shall coordinate with the Federal Emergency Management Agency, to
the greatest extent practicable, in the implementation of
assistance authorized under section 124 of the Housing and
Community Development Act of 1974, as added by subsection (d).
(2) Data sharing agreements.--To support the coordination of
data to prevent duplication of benefits with other Federal disaster
recovery programs while also expediting recovery and reducing
burden on disaster survivors, the Department shall establish data
sharing agreements that safeguard privacy with relevant Federal
agencies to ensure disaster benefits effectively and efficiently
reach intended beneficiaries, while using effective means of
preventing harm to people and property.
(3) Data transfer from fema and sba to hud.--As permitted and
deemed necessary for efficient program execution, and consistent
with a computer matching agreement entered into under paragraph
(6)(A), the Administrator of the Federal Emergency Management
Agency and the Administrator of the Small Business Administration
shall provide data on disaster applicants to the Department,
including, when necessary, personally identifiable information,
disaster recovery needs, and resources determined eligible for, and
amounts expended, to the Secretary for all major disasters declared
by the President pursuant to section 401 of Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) for
the purpose of providing additional assistance to disaster
survivors and prevent duplication of benefits.
(4) Data transfers from hud to hud grantees.--The Secretary is
authorized to provide to grantees under section 124 of the Housing
and Community Development Act of 1974, as added by subsection (d),
offices of the Department, technical assistance providers, and
lenders information that in the determination of the Secretary is
reasonably available and appropriate to inform the provision of
assistance after a major disaster, including information provided
to the Secretary by the Administrator of the Federal Emergency
Management Agency, the Administrator of the Small Business
Administration, or other Federal agencies.
(5) Data transfers from hud grantees to hud, fema, and sba.--
(A) Reporting.--Grantees under section 124 of the Housing
and Community Development Act of 1974, as added by subsection
(d), shall report information requested by the Secretary on
households, businesses, and other entities assisted and the
type of assistance provided.
(B) Sharing information.--The Secretary shall share
information collected under subparagraph (A) with the Federal
Emergency Management Agency, the Small Business Administration,
and other Federal agencies to support the planning and delivery
of disaster recovery and mitigation assistance and other
related purposes.
(6) Privacy protection.--
(A) In general.--The Secretary may make and receive data
transfers authorized under this subsection, including the use
and retention of that data for computer matching programs, to
inform the provision of assistance, assess disaster recovery
needs, and prevent the duplication of benefits and other waste,
fraud, and abuse, provided that--
(i) the Secretary enters an information sharing
agreement or a computer matching agreement, when required
by section 522a of title 5, United States Code (commonly
known as the ``Privacy Act of 1974''), with the
Administrator of the Federal Emergency Management Agency,
the Administrator of the Small Business Administration, or
other Federal agencies covering the transfer of data; and
(ii) the Secretary publishes intent to disclose data in
the Federal Register.
(B) Data sharing agreement.--Notwithstanding clauses (i)
and (ii) of subparagraph (A), section 552a of title 5, United
States Code, or any other law, the Secretary is authorized to
share data with an entity identified in paragraph (4), and the
entity is authorized to use the data as described in this
section, if the Secretary enters a data sharing agreement with
the entity before sharing or receiving any information under
transfers authorized by this section, which data sharing
agreement shall--
(i) in the determination of the Secretary, include
measures adequate to safeguard the privacy and personally
identifiable information of individuals; and
(ii) include provisions that describe how the
personally identifiable information of an individual will
be adequately safeguarded and protected, which requires
consultation with the Secretary and the head of each
Federal agency the data of which is being shared subject to
the agreement.
(g) Sunset.--The program under section 124 of the Housing and
Community Development Act of 1974, as added by subsection (d) shall
terminate on the date that is 3 years after the date of enactment of
this Act.
(h) Sense of Congress.--It is the sense of Congress that, should
Congress opt to appropriate funds for disaster recovery through a
similar successor program following the sunset date, subsection (g)
shall not preclude Congress from doing so.
(i) Application.--Grants made under section 124 of the Housing and
Community Development Act of 1974, as added by subsection (d), after
the date of enactment of this Act shall be carried out using amounts
appropriated after the date of enactment of this Act.
SEC. 505. NEW MOVING TO WORK COHORT.
(a) Definitions.--In this section:
(1) Moving to work demonstration.--The term ``Moving to Work
demonstration'' means the Moving to Work demonstration authorized
under section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note).
(2) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) Authorization of Additional Public Housing Agencies.--
(1) In general.--After the completion of the initial report
required under subsection (h)(2), the Secretary may add up to an
additional 25 public housing agencies that are designated as high
performing agencies under the Public Housing Assessment System or
the Section 8 Management Assessment Program to participate in a new
cohort as part of the Moving to Work demonstration.
(2) Name.--The new cohort authorized under paragraph (1) shall
be entitled the ``Economic Opportunity and Pathways to Independence
Cohort''.
(c) Waiver Authority.--
(1) In general.--Subject to this subsection, the authority of
the Secretary to grant waivers to agencies admitted to the Moving
to Work demonstration under this section or to designate policy
changes as part of a cohort design under this section shall be
limited to the Moving to Work waivers codified as of January 2025
in Appendix I of the document of the Department of Housing and
Urban Development entitled ``Operations Notice for the Expansion of
the Moving to Work Demonstration Program'' (FR-5994-N-05) published
in the Federal Register on August 28, 2020, as amended by the
notice entitled ``Operations Notice for Expansion of the Moving to
Work Demonstration Program Technical Revisions'' (FR-5994-N-06)
published in the Federal Register on March 20, 2025.
(2) Modifications.--The Secretary may not waive the safe harbor
requirements that apply to the Moving to Work waivers described in
paragraph (1) or modify those waivers in any other way for the
purposes of the new cohort under this section.
(3) Exceptions.--
(A) In general.--Under paragraph (1), the Secretary may not
grant waiver 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q, 6, 7, 9a, 9h,
or 12 in the document described in paragraph (1), including
modifications of or safe harbor requirement waivers for such
waivers.
(B) Specific wavers.--If the Secretary grants waiver 10 or
11 in the document described in paragraph (1), resident
participation in any program administered pursuant to those
waivers shall be optional for purposes of the new cohort under
this section.
(4) Policy options.--In carrying out the Moving to Work
demonstration cohort established under this section, the Secretary
may consider policy options to provide opt-out savings or escrow
accounts and report positive rental payments to consumer reporting
agencies (as defined in section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a)) with resident consent.
(d) Funding and Use of Funds.--
(1) In general.--Public housing agencies in the cohort
authorized under this section may expend not more than 5 percent of
the amounts those public housing agencies receive in any fiscal
year for housing assistance payments under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) for purposes
other than such housing assistance payments.
(2) Other uses.--Such other uses of amounts described in
paragraph (1) shall comply with all other applicable requirements.
(3) Formula.--
(A) Renewal.--The amount of funding public housing agencies
receive for renewal of housing assistance payments under
section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) shall be determined according to the same
funding formula applicable to public housing agencies that do
not participate in the Moving to Work demonstration, except
that the Secretary shall provide public housing agencies
funding to renew any funds expended under this subsection, with
an adjustment for inflation.
(B) Administrative fees.--The amount of funding public
housing agencies receive for administrative fees under section
8(q) of the United States Housing Act of 1937 (42 U.S.C.
1437f(q)), public housing operating subsidies under section
9(e) of the United States Housing Act of 1937 (42 U.S.C.
1437g(e)), and public housing capital funding under section
9(d) of the United States Housing Act of 1937 (42 U.S.C.
1437g(d)) shall be determined according to the same funding
formula applicable to public housing agencies that do not
participate in the Moving to Work demonstration.
(e) Selection Requirements.--The Secretary shall select public
housing agencies designated under this section through a competitive
process, as determined by the Secretary, with the following parameters:
(1) No public housing agency shall be granted this designation
under this section that administers more than 27,000 aggregate
housing vouchers and public housing units.
(2) Of the public housing agencies selected under this section,
not more than 12 shall administer 1,000 or fewer aggregate housing
vouchers and public housing units, not more than 8 shall administer
between 1,001 and 6,000 aggregate housing vouchers and public
housing units, and not more than 5 shall administer between 6,001
and 27,000 aggregate housing vouchers and public housing units.
(3) Selection of public housing agencies under this section
shall be based on ensuring the geographic diversity of Moving to
Work demonstration public housing agencies.
(4) Within the requirements under paragraphs (1) through (3),
the Secretary shall prioritize selecting public housing agencies
that serve families with children and youth aging out of foster
care at a rate above the national average.
(f) Requirements for Selected Public Housing Agencies.--Consistent
with section 204(c)(3) of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1996 (42 U.S.C. 1437f note), public housing agencies selected for
the Moving to Work demonstration under this section shall--
(1) ensure that not less than 75 percent of the families
assisted are very low-income families, as defined in section
3(b)(2)(B) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(2)(B));
(2) establish a reasonable rent policy, which shall be designed
to encourage employment and self-sufficiency by participating
families, consistent with the purpose of the Moving to Work
demonstration, such as by excluding some or all of a family's
earned income for purposes of determining rent;
(3) continue to assist substantially the same total number of
eligible low-income families as would have been served had the
amounts not been combined;
(4) maintain a comparable mix of families (by family size) as
would have been provided had the amounts not been used under the
Moving to Work demonstration; and
(5) assure that housing assisted under the Moving to Work
demonstration meets housing quality standards established or
approved by the Secretary.
(g) Noncompliance.--
(1) In general.--If the Secretary finds that a public housing
agency participating in the cohort authorized under this section is
not in compliance with the requirements under this section, the
Secretary shall make a determination of noncompliance.
(2) Compliance.--Upon making a determination under paragraph
(1), the Secretary shall develop a process to bring the public
housing agency into compliance.
(3) Removal.--If a public housing agency cannot be brought into
compliance under the process developed under paragraph (2), the
Secretary shall remove the participating public housing agency from
the cohort and replace it with a similarly qualified public housing
agency currently not in the cohort chosen in the manner described
in subsection (e).
(4) Notification.--Upon removing a public housing agency under
paragraph (3), the Secretary shall immediately submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives--
(A) a notification of the removal; and
(B) a report on the active steps the Secretary is taking to
replace the public housing agency with a new public housing
agency.
(h) Comprehensive Moving to Work Reporting and Oversight
Requirements.--
(1) Cohort research.--
(A) In general.--The Secretary shall continue ongoing
research investigations commenced as part of the assessment of
the cohorts established under section 239 of the Department of
Housing and Urban Development Appropriations Act, 2016 (42
U.S.C. 1437f note; Public Law 114-113), make public all
products completed as part of those investigations, and keep
such products online for at least 5 years.
(B) Coordination.--The Secretary shall coordinate with the
advisory committee established under section 239 of the
Department of Housing and Urban Development Appropriations Act,
2016 (42 U.S.C. 1437f note; Public Law 114-113) to establish a
research program to evaluate the outcomes and efficacy of the
following for all Moving to Work demonstration agencies
designated under the authority under such section and this
section:
(i) The waivers granted to each cohort and whether
those waivers accomplish the goals of achieving greater
cost effectiveness and administrative capacity,
incentivizing families to become economically self-
sufficient, and increasing housing choice.
(ii) The additional flexibilities granted to individual
public housing agencies under each cohort.
(iii) How the flexibilities described in clause (ii)
were used for local, non-traditional activities.
(2) Comprehensive reporting requirement.--Not later than 180
days after the date of enactment of this Act, and annually
thereafter, the Secretary shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report that
contains the following for each Moving to Work demonstration cohort
under section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note), section 239 of the
Department of Housing and Urban Development Appropriations Act,
2016 (42 U.S.C. 1437f note; Public Law 114-113), and this section:
(A) The annual administrative plans of each Moving to Work
demonstration public housing agency.
(B) Assessments of longitudinal data, including data on
units, households, and outcomes, which shall be evaluated to
compare changes in the following trends before and after Moving
to Work demonstration designation:
(i) Impacts on tenants based on the following,
disaggregated by the public housing program and the housing
choice voucher program:
(I) Eviction rates.
(II) Hardship policy usage.
(III) Share of rent covered by a household.
(IV) Turnover, including the number of household
moves with or without continued assistance.
(V) Reasons for exit from the program.
(VI) The number and characteristics of households
served, including households with a non-elderly family
member with a disability, households with 3 or more
minors, homelessness status at the time of admission,
and average and median income as a percent of area
median income.
(ii) Impacts on public housing agency operations based
on the following:
(I) The number of units, broken down by type.
(II) The size, including the number of bedrooms per
unit, accessibility, affordability, and quality of
units.
(III) The length of each waitlist maintained and
average wait times.
(IV) Changes in capital backlog needs and surplus
fund and reserve levels.
(V) The number of public housing units undergoing a
conversion under the rental assistance demonstration
program authorized under the Department of Housing and
Urban Development Appropriations Act, 2012 (Public Law
112-55; 125 Stat. 673) or demolition or disposition
projects under section 18 of the United States Housing
Act of 1937 (42 U.S.C. 1437p), including the number of
units lost and the location of any replacement housing
resulting from demolition or disposition.
(VI) The share of project-based vouchers compared
to tenant-based vouchers.
(VII) The following annual housing choice voucher
data:
(aa) Voucher unit utilization rates.
(bb) Voucher budget utilization rates.
(cc) Annualized voucher success rate.
(dd) Demographic composition of households
issued vouchers compared to utilized vouchers.
(ee) Average time to lease-up.
(ff) Average cost per voucher.
(gg) Average cost per landlord incentive.
(hh) Ratio of the proportion of voucher
households living in concentrated low-income areas
to the proportion of renter-occupied units in
concentrated low-income areas.
(ii) Characteristics of census tracts where
voucher recipients reside.
(VIII) How the public housing agency met each of
the statutory requirements in section 204(c)(3) of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations
Act, 1996 (42 U.S.C. 1437f note).
(iii) Impacts on public housing staffing and capacity,
including the average public housing agency operating,
administrative, and housing assistance payment expenditures
per household per month.
(C) Legislative recommendations for flexibilities that
could be expanded to all public housing agencies and how each
flexibility enhances housing choice, affordability, and
administrative capacity and efficiency for public housing
agencies.
(3) Public availability.--
(A) In general.--The Secretary shall maintain all reports
submitted pursuant to this section in a manner that is publicly
available, accessible, and searchable on the website of the
Department of Housing and Urban Development for not less than 5
years.
(B) Other information.--
(i) In general.--The Secretary shall make the annual
plan of the Moving to Work demonstration, the Section 8
administrative plan, and the admission and continued
occupancy policy for each year publicly available in 1
location on the website of the Department of Housing and
Urban Development for not less than 5 years.
(ii) Database.--The Secretary may establish a
searchable database on the website of the Department of
Housing and Urban Development to track the types of
flexibilities into which Moving to Work demonstration
public housing agencies have opted or for which a waiver
was approved by the Secretary, disaggregated by the year
such flexibilities were adopted or approved.
TITLE VI--VETERANS AND HOUSING
SEC. 601. MILITARY SERVICE QUESTION.
(a) In General.--Subpart A of part 2 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541
et seq.) is amended by adding at the end the following:
``SEC. 1329. UNIFORM RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall, by regulation or order, require each
enterprise to include a disclosure below the military service question,
which shall be above the signature line, on the form known as the
Uniform Residential Loan Application stating, `If yes, you may qualify
for a VA Home Loan. Consult your lender regarding eligibility.'.''.
(b) GAO Study.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General of the United States
shall conduct a study and submit to Congress a report on whether or not
less than 80 percent of lenders using the Uniform Residential Loan
Application have included on that form the disclaimer required under
section 1329 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, as added by subsection (a).
SEC. 602. HOUSING UNHOUSED DISABLED VETERANS ACT.
(a) Exclusion of Certain Disability Benefits.--Section 3(b)(4)(B)
of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is
amended--
(1) by redesignating clauses (iv) and (v) as clauses (vi) and
(vii), respectively; and
(2) by inserting after clause (iii) the following:
``(iv) for the purpose of determining income
eligibility with respect to the supported housing program
under section 8(o)(19), any disability benefits received
under chapter 11 or chapter 15 of title 38, United States
Code, received by a veteran, except that this exclusion
shall not apply to the income in the definition of adjusted
income;
``(v) for the purpose of determining income eligibility
with respect to any household receiving rental assistance
under the supported housing program under section 8(o)(19)
as it relates to eligibility for other types of housing
assistance, any disability benefits received under chapter
11 or chapter 15 of title 38, United States Code, received
by a veteran, but such amounts shall not be excluded from
income when determining adjusted income;''.
(b) Treatment of Certain Disability Benefits.--
(1) In general.--When determining the eligibility of a veteran
to rent a residential dwelling unit constructed on Department
property on or after the date of enactment of this Act, for which
assistance is provided as part of a housing assistance program
administered by the Secretary, the Secretary shall exclude from
income any disability benefits received under chapter 11 or chapter
15 of title 38, United States Code by such person.
(2) Definitions.--In this subsection:
(A) Department property.--The term ``Department property''
has the meaning given the term in section 901 of title 38,
United States Code.
(B) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 603. VETERANS AFFAIRS LOAN INFORMED DISCLOSURE (VALID) ACT.
(a) FHA Informed Consumer Choice Disclosure.--
(1) Inclusion of information relating to va loans.--
Subparagraph (A) of section 203(f)(2) of the National Housing Act
(12 U.S.C. 1709(f)(2)(A)) is amended--
(A) by striking ``ratio in'' and inserting ``ratio--
``(i) in''; and
(B) by adding at the end the following:
``(ii) in connection with a loan guaranteed or insured
under chapter 37 of title 38, United States Code, assuming
prevailing interest rates; and''.
(2) Rule of construction.--Nothing in the amendments made by
paragraph (1) shall be construed to require an original lender to
determine whether a prospective borrower is eligible for any loan
included in the notice required under section 203(f) of the
National Housing Act (12 U.S.C. 1709(f)).
(b) Military Service Question.--
(1) In general.--Subpart A of part 2 of subtitle A of the
Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4541 et seq.), as amended by section 601(a) of this
Act, is amended by adding at the end the following:
``SEC. 1330. UNIFORM RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall require each enterprise to--
``(1) include a military service question on the form known as
the Uniform Residential Loan Application to include selection
options of `Yes', `No', and ``Prefer Not To Answer''; and
``(2) position the question described in paragraph (1) above
the signature line of the Uniform Residential Loan Application.''.
(2) Rulemaking.--Not later than 6 months after the date of
enactment of this Act, the Director of the Federal Housing Finance
Agency shall issue a rule to carry out the amendment made by this
section.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
SEC. 701. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING
REGULATORS.
Section 7 of the Department of Housing and Urban Development Act
(42 U.S.C. 3535) is amended by adding at the end the following:
``(u) Annual Testimony.--The Secretary shall appear before the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives at an
annual hearing and present testimony regarding the operations of the
Department during the preceding year, including--
``(1) the current programs and operations of the Department;
``(2) the physical condition of all public housing and other
housing assisted by the Department;
``(3) the financial health of the mortgage insurance funds of
the Federal Housing Agency;
``(4) oversight by the Department of grantees and subgrantees
for purposes of preventing waste, fraud, and abuse;
``(5) the progress made by the Federal Government in ending the
affordable housing and homelessness crises;
``(6) the capacity of the Department to deliver on its
statutory mission; and
``(7) other ongoing activities of the Department, as
appropriate.''.
SEC. 702. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.
Section 202(a) of the National Housing Act (12 U.S.C. 1708(a)) is
amended by adding at the end the following:
``(8) Other required reporting.--The Secretary shall--
``(A) submit to Congress monthly reports on the capital
ratio required under section 205(f)(2); and
``(B) notify Congress as soon as practicable after the Fund
falls below the capital ratio required under section
205(f)(2).''.
SEC. 703. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS
OVERSIGHT.
Section 203(a) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11313(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``Homeless Emergency Assistance and Rapid
Transition to Housing Act of 2009'' and inserting ``21st
Century ROAD to Housing Act''; and
(B) by striking ``update such plan annually'' and inserting
``submit to the President and Congress a report every year
thereafter that includes--
``(A) the status of completion of the plan; and
``(B) any modifications that were made to the plan and the
reasons for those modifications;'';
(2) by redesignating paragraphs (10) through (13) as paragraphs
(11) through (14), respectively;
(3) by redesignating the second paragraph (9) (relating to
collecting and disseminating information) as paragraph (10);
(4) in paragraph (13), as so redesignated, by striking ``and''
at the end;
(5) in paragraph (14), as so redesignated, by striking the
period at the end and inserting ``; and''; and
(6) by adding at the end the following:
``(15) testify annually before Congress, if requested.''.
SEC. 704. APPRAISAL MODERNIZATION ACT.
(a) Reconsideration of Value.--
(1) Federally backed mortgage loan defined.--In this
subsection, the term ``federally backed mortgage loan'' has the
meaning given the term in section 4022 of the CARES Act (15 U.S.C.
9056).
(2) Requirement.--The Secretary of Agriculture, the Secretary
of Veterans Affairs, the Commissioner of the Federal Housing
Administration, and the Director of the Federal Housing Finance
Agency shall each implement and maintain requirements that
creditors of a federally backed mortgage loan have a review and
resolution procedure for a consumer-initiated reconsideration of
value or subsequent appraisal in connection with a consumer credit
transaction secured by a consumer's principal dwelling.
(b) Public Appraisal Database.--
(1) Covered agencies defined.--In this subsection, the term
``covered agencies'' means--
(A) the Federal Housing Finance Agency, on behalf of the
Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation;
(B) the Department of Housing and Urban Development,
including the Federal Housing Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) Feasibility report.--Not later than 240 days after the date
of enactment of this Act, the Comptroller General of the United
States shall submit to Congress a public report assessing the
feasibility of creating a publicly available appraisal database
that consists of a searchable and downloadable appraisal-level
public use file that consolidates appraisal data held or aggregated
by covered agencies, including--
(A) the costs and benefits associated with establishing and
maintaining the public database;
(B) the benefits and risks associated with the Federal
Housing Finance Agency or the Bureau of Consumer Financial
Protection being responsible for the public database and
whether there is another Federal agency best suited for
implementing and administering such database;
(C) any safety and soundness, antitrust, or consumer
privacy-related risks associated with making certain appraisal
data factors publicly available, including whether--
(i) there are any existing legal requirements,
including under the Home Mortgage Disclosure Act of 1975
(12 U.S.C. 2801 et seq.) and section 552 of title 5, United
States Code (commonly known as the ``Freedom of Information
Act''), or additional actions Federal agencies could take
to mitigate such risks, such as modifying or aggregating
data or eliminating personally identifiable information;
and
(ii) there are any data factors that, if made public,
may violate conduct, ethics, or other professional
standards as they relate to appraisals and appraisal or
valuation professionals;
(D) the feasibility of consolidating or matching appraisal
data held by covered agencies with corresponding data that are
required and made public under the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data factors
may pose unfair business advantages within the valuation
industry;
(F) the feasibility of including all valuation data held by
covered agencies, including data produced by automated
valuation models;
(G) the feasibility and benefits of making the full
appraisal dataset, including any modified fields, available
to--
(i) Federal agencies, including for purposes related to
enforcement and supervision responsibilities;
(ii) relevant State licensing, supervision, and
enforcement agencies and State attorneys general;
(iii) approved researchers, including academics and
nonprofit organizations that, in connection with their
mission, work to ensure the fairness and consistency of
home valuations, including appraisals; and
(iv) any other entities identified by the Comptroller
General as having a compelling use for disaggregated data;
(H) what appraisal data are already available in the public
domain; and
(I) the feasibility of incorporating legacy data held by
covered agencies during the period beginning on January 1,
2017, and ending on the date of enactment of this Act, and
whether there are specific data points not easily consolidated
or matched, as described in subparagraph (D), with more recent
data.
(3) Purpose.--The database described in paragraph (2) shall be
used to provide the public, the Federal Government, and State
governments with residential real estate appraisal data to help
determine whether financial institutions, appraisal management
companies, appraisers, valuation technologies, such as automated
valuation models, and other valuation professionals are effectively
serving the entire housing market.
(4) Consultation.--As part of the information used in the
report required under paragraph (2), the Comptroller General of the
United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and enforcement
agencies and State attorneys general;
(C) appraisers and other home valuation industry
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) any other relevant stakeholders as determined by the
Comptroller General.
(5) Hearing.--Upon the completion of the report under paragraph
(2), the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives shall each hold a hearing on the findings of the
report and the feasibility of establishing a public appraisal-level
appraisal database.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
SEC. 801. HUD-USDA-VA INTERAGENCY COORDINATION ACT.
(a) Memorandum of Understanding.--The Secretary of Housing and
Urban Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall establish a memorandum of understanding, or
other appropriate interagency agreement, to share relevant housing-
related research and market data that facilitate evidence-based
policymaking.
(b) Interagency Report.--
(1) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall jointly submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report
containing--
(A) a description of opportunities for increased
collaboration between the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs to reduce inefficiencies in housing programs;
(B) a list of Federal laws (including regulations) that
adversely affect the availability and affordability of new
construction of assisted housing and single-family and
multifamily residential housing subject to mortgages insured
under title II of the National Housing Act (12 U.S.C. 1707 et
seq.), insured, guaranteed, or made by the Secretary of
Agriculture under title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.), or insured, guaranteed, or made by the Secretary
of Veterans Affairs under chapter 37 of title 38, United States
Code; and
(C) recommendations for Congress regarding the Federal laws
(including regulations) described in subparagraph (B).
(2) Publication.--The report required under paragraph (1)
shall, prior to submission under this subsection, be published in
the Federal Register and open for comment for a period of 30 days.
SEC. 802. STREAMLINING RURAL HOUSING ACT.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development
and the Secretary of Agriculture shall enter into a memorandum of
understanding to--
(1) evaluate categorical exclusions under the environmental
review process for housing projects funded by amounts from the
Department of Housing and Urban Development and the Department of
Agriculture;
(2) develop a process to designate a lead agency and streamline
adoption of Environmental Impact Statements and Environmental
Assessments approved by the other Department to construct housing
projects funded by both agencies;
(3) maintain compliance with environmental regulations under
part 58 of title 24, Code of Federal Regulations, as in effect on
January 1, 2025, except as required to amend, add, or remove
categorical exclusions identified under section 58.35 of title 24,
Code of Federal Regulations, through standard rulemaking
procedures; and
(4) evaluate the feasibility of a joint physical inspection
process for housing projects funded by amounts from the Department
of Housing and Urban Development and the Department of Agriculture.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Housing and Urban Development and the
Secretary of Agriculture shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that includes
recommendations for legislative, regulatory, or administrative
actions--
(1) to improve the efficiency and effectiveness of housing
projects funded by amounts from the Department of Housing and Urban
Development and the Department of Agriculture; and
(2) that do not materially, with respect to residents of
housing projects described in paragraph (1)--
(A) reduce the safety of those residents;
(B) shift long-term costs onto those residents; or
(C) undermine the environmental standards of those
residents.
SEC. 803. IMPROVING SELF-SUFFICIENCY OF FAMILIES IN HUD-SUBSIDIZED
HOUSING.
(a) In General.--
(1) Study.--Subject to subsection (b), the Secretary of Housing
and Urban Development shall conduct a study on the implementation
of work requirements implemented prior to the date of enactment of
this Act by public housing agencies described in paragraph (4)
participating in the Moving to Work demonstration authorized under
section 204 of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1996 (42 U.S.C. 1437f note).
(2) Scope.--The study required under paragraph (1) shall--
(A) consider the short-, medium-, and long-term benefits
and challenges of work requirements on public housing agencies
described in paragraph (4) and on program participants who are
subject to such requirements, including the effects work
requirements have on homelessness rates, poverty rates, asset
building, earnings growth, job attainment and retention, and
public housing agencies' administrative capacity; and
(B) include quantitative and qualitative evidence,
including interviews with program participants described in
subparagraph (A) and their respective resident councils.
(3) Report.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives a report on
the initial findings of the study required under paragraph (1).
(4) Public housing agencies described.--The public housing
agencies described in this paragraph are public housing agencies
that, as part of an application to participate in the demonstration
authorized under section 204 of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437f note), submit a proposal
identifying work requirements as an innovative proposal.
(b) Determination.--The requirement under subsection (a) shall
apply if the Secretary of Housing and Urban Development determines
that--
(1) there are a sufficient number of public housing agencies
described in subsection (a)(4) such that the Secretary of Housing
and Urban Development can rigorously evaluate the impact of the
implementation of work requirements described in that subsection;
and
(2) the study would not negatively impact low-income families
receiving assistance through a public housing agency described in
subsection (a)(4).
SEC. 804. GAO STUDIES.
(a) Workforce Housing Study.--
(1) Middle-income household defined.--In this subsection, the
term ``middle-income household'' means a household with an income
above 80 percent but that does not exceed 120 percent of the median
family income of the area, as determined by the Secretary of
Housing and Urban Development with adjustments for smaller and
larger families.
(2) Study.--Not later than 1 year after the date of enactment
of this Act, the Comptroller General of the United States shall
conduct a study and submit to Congress a report that--
(A) identifies obstacles middle-income households face when
looking to secure affordable housing;
(B) identifies geographic areas where housing is the most
unaffordable and unavailable for middle-income households;
(C) includes a list of Federal housing programs, including
Federal tax credits, grants, and loan programs, that are not
available to middle-income households due to their income
status, including Federal housing programs designed to promote
affordability;
(D) recommends income and other parameters to establish a
clear and consistent Federal definition for the term
``workforce housing'' for use when describing the segment of
housing that could be made available to those middle-income
households in Federal housing programs if funding commensurate
with the additional eligibility were to be made available; and
(E) analyzes how to modify or newly develop new Federal
housing programs and incentives to include ``workforce
housing'' if funding commensurate with the additional
eligibility were to be made available.
(b) Housing for Elderly or Disabled.--Not later than 1 year after
the date of enactment of this Act, the Comptroller General of the
United States shall carry out a study and submit to Congress a report
that identifies options to remove barriers and improve housing for
persons who are elderly or disabled, including any potential impacts of
providing capital advances for--
(1) the program for supportive housing for the elderly under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); and
(2) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013).
(c) Proximity of Housing to Superfund Sites.--Not later than 1 year
after the date of enactment of this Act, the Comptroller General of the
United States shall carry out a study and submit to Congress a report
that identifies how many residential dwelling units, and how many
dwelling units that are a part of public housing (as defined in section
3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))),
are located less than 1 mile from a site that is included on the
National Priorities List established pursuant to section 105 of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9605).
(d) Residential Heirs Property.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General of the United
States shall carry out a study and submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that--
(1) establishes a comprehensive definition of residential heirs
property, or family land inherited without a will or legal
documentation of ownership;
(2) examines the occurrence of and consequences to owners of
residential heirs property, and provides an estimate regarding the
number of current residential heirs properties;
(3) describes the objectives and requirements of the Uniform
Partition of Heirs Property Act as approved by the National
Conference of Commissioners on Uniform State Laws in 2010;
(4) details the various resources that may be available to the
owners of residential heirs properties, including housing
counseling, legal services, and financial assistance to resolve
residential heirs property title issues from the Federal
Government, nonprofit organizations, and institutions of higher
education; and
(5) makes recommendations with respect to how to reduce the
number of residential heirs properties, including--
(A) by incentivizing States and other jurisdictions which
enact or adopt the Uniform Partition of Heirs Property Act or
similar such reforms;
(B) by awarding grants to States and other jurisdictions to
assist residents of those States and jurisdictions to establish
and document property ownership rights or settle a decedent's
estate;
(C) by awarding grants to entities that--
(i) provide housing counseling, legal assistance, and
financial assistance to home-owners and their heirs
relating to title clearing and home retention efforts of
heirs' property; and
(ii) target services to low- and moderate-income
persons or provide services in neighborhoods that have a
high concentration of low- and moderate-income persons; and
(D) by conducting other activities that assist individuals
to clear title with respect to heirs' property and with general
estate planning.
SEC. 805. IMPROVING PUBLIC HOUSING AGENCY ACCOUNTABILITY.
(a) Definitions.--In this section:
(1) Covered public housing agency.--The term ``covered public
housing agency'' means a public housing agency (as defined in
section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b))) for which an administrative or judicial receiver or
Federal monitor was appointed.
(2) Inspector general.--The term ``Inspector General'' means
the Inspector General of the Department of Housing and Urban
Development.
(3) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(b) Required Notice.--The Secretary shall require each covered
public housing agency to provide a notice each year to the Secretary
that--
(1) indicates that if a receiver or Federal monitor remains
appointed for the covered public housing agency as of October 1 of
the calendar year to which the notice relates;
(2) provides the date on which the receiver or Federal monitor
was first appointed and the projected date, if known, the
appointment of the receiver or Federal monitor will be terminated;
and
(3) identifies the current receiver or Federal monitor
appointed to oversee the public housing agency.
(c) Federal Monitor and Receiver Transparency.--
(1) In general.--Notwithstanding any other provision of law,
not later than October 1 of each year, each receiver or Federal
monitor that is currently appointed to oversee a covered public
housing agency shall provide to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a written assessment
that--
(A) describes the management and oversight activities of
the receiver or Federal monitor for the covered public housing
agency;
(B) identifies the significant factors that led to the
appointment of the receiver or Federal monitor for the covered
public housing agency;
(C) identifies the factors that remain unresolved at the
covered public housing agency that have led to the continued
oversight of the receiver or Federal monitor; and
(D) includes a timeline developed by the receiver or
Federal monitor that projects when the factors identified under
subparagraphs (B) and (C) will be resolved.
(2) Additional information.--In addition to the written
assessment required in paragraph (1), upon written request by the
Committee on Banking, Housing, and Urban Affairs of the Senate or
the Committee on Financial Services of the House of
Representatives, each receiver or Federal monitor appointed to
oversee a covered public housing agency shall promptly furnish
additional or supplemental information requested by the Committee
on Banking, Housing, and Urban Affairs of the Senate or the
Committee on Financial Services of the House of Representatives
with respect to the covered public housing agency that such
receiver or Federal monitor is appointed to oversee, including
presenting testimony upon request.
(d) Disclosure Required.--The Secretary shall, not later than 1
year after the date of enactment of this Act, require each covered
public housing agency to publicly disclose, on the website of the
covered public housing agency, with respect to each contract entered
into by such covered public housing agency in the preceding year, the
following information:
(1) All material information about the contract, including the
goods and service provided.
(2) The identity of the vendor selected to receive the
contract.
(3) The date of the solicitation of the contract.
(4) The relevant information pertaining to the bids and quotes
solicited for the contract.
(5) The name of the official who solicited the contract.
(e) Inspector General Review.--Not later than 180 days after
receiving a written request from the Committee on Financial Services of
the House of Representatives or the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Inspector General shall provide to the
requesting committee an analysis of--
(1) the status of any covered public housing agency's
compliance with any agreements entered into between the covered
public housing agency and the Department of Housing and Urban
Development, including specific areas of deficiency and progress
toward compliance;
(2) a review of actions taken by the receiver or Federal
monitor appointed to oversee a covered public housing agency and
any private sector housing development partners pursuant to such
agreement, including any gaps in oversight by the receiver or
Federal monitor;
(3) an assessment of the physical conditions of housing
provided by the covered public housing agency, including the status
of the covered public housing agency's compliance with relevant
health and safety requirements;
(4) an examination of any allegations of waste, fraud, abuse or
violations of Federal law committed by employees or contractors of
the covered public housing agency;
(5) any additional pertinent information, as determined
necessary and appropriate by the inspector general; and
(6) any recommendations of the inspector general that relate to
how to improve the compliance of the covered public housing agency
with any agreements entered into with the Department of Housing and
Urban Development or enhance the oversight of the receiver or
Federal monitor over such covered public housing agency.
TITLE IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
SEC. 901. COMMUNITY BANK DEPOSIT ACCESS.
(a) In General.--Section 29 of the Federal Deposit Insurance Act
(12 U.S.C. 1831f) is amended by adding at the end the following:
``(j) Limited Exception for Custodial Deposits.--
``(1) In general.--Custodial deposits of an eligible
institution shall not be considered to be funds obtained, directly
or indirectly, by or through a deposit broker to the extent that
the total amount of such custodial deposits does not exceed an
amount equal to 20 percent of the total liabilities of the eligible
institution.
``(2) Definitions.--In this subsection:
``(A) Custodial deposit.--The term `custodial deposit'
means a deposit that is not deposited at an insured depository
institution in return for fees paid by the insured depository
institution pursuant to an agreement with a third party and
that would otherwise be considered to be obtained, directly or
indirectly, by or through a deposit broker, if the deposit is
deposited at 1 or more insured depository institutions, for the
purpose of providing or maintaining deposit insurance for the
benefit of a third party, by or through any of the following,
each acting in a formal custodial or fiduciary capacity for the
benefit of a third party:
``(i) An insured depository institution serving as
agent, trustee, or custodian.
``(ii) A trust entity controlled by an insured
depository institution serving as agent, trustee, or
custodian.
``(iii) A State-chartered trust company serving as
agent, trustee, or custodian.
``(iv) A plan administrator or investment advisor,
acting in a formal custodial or fiduciary capacity for the
benefit of a plan.
``(B) Eligible institution.--The term `eligible
institution' means an insured depository institution that
accepts custodial deposits, if the insured depository
institution has less than $10,000,000,000 in total assets as
reported on the consolidated report of condition and income as
reported quarterly to the appropriate Federal banking agency
and--
``(i)(I) when most recently examined under section
10(d) was assigned a composite rating of 1, 2, or 3 under
the Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system); and
``(II) is well capitalized; or
``(ii) has obtained a waiver pursuant to subsection
(c).
``(C) Plan.--The term `plan' has the meaning given the term
in section 3 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002).
``(D) Plan administrator.--The term `plan administrator'
has the meaning given the term `administrator' in section 3 of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002).
``(E) Well capitalized.--The term `well capitalized' has
the meaning given the term in section 38(b).''.
(b) Interest Rate Restriction.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is
further amended by adding at the end the following:
``(k) Restriction on Interest Rate Paid on Certain Custodial
Deposits.--
``(1) Definitions.--In this subsection--
``(A) the terms `custodial deposit', `eligible
institution', and `well capitalized' have the meanings given
those terms in subsection (j); and
``(B) the term `covered insured depository institution'
means an insured depository institution that while acting as an
eligible institution under subsection (j), accepts custodial
deposits while not well capitalized.
``(2) Prohibition.--A covered insured depository institution
may not pay a rate of interest on custodial deposits that are
accepted while not well capitalized that, at the time the funds or
custodial deposits are accepted, significantly exceeds the limit
set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of
interest referred to in paragraph (2) shall be not greater than--
``(A) the rate paid on deposits of similar maturity in the
normal market area of the covered insured depository
institution for deposits accepted in the normal market area of
the covered insured depository institution; or
``(B) the national rate paid on deposits of comparable
maturity, as established by the Corporation, for deposits
accepted outside the normal market area of the covered insured
depository institution.''.
SEC. 902. KEEPING DEPOSITS LOCAL.
(a) Amount of Reciprocal Deposits That Are Not Considered to Be
Funds Obtained by or Through a Deposit Broker.--Section 29(i) of the
Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by
striking paragraph (1) and inserting the following:
``(1) In general.--The sum of the following amounts of
reciprocal deposits of an agent institution shall not be considered
to be funds obtained, directly or indirectly, by or through a
deposit broker:
``(A) An amount equal to 50 percent of the portion of the
total liabilities of the agent institution that is less than or
equal to $1,000,000,000.
``(B) An amount equal to 40 percent of the portion, if any,
of the total liabilities of the agent institution that is
greater than $1,000,000,000, but less than or equal to
$10,000,000,000.
``(C) An amount equal to 30 percent of the portion, if any,
of the total liabilities of the agent institution that is
greater than $10,000,000,000, but less than or equal to
$96,333,333,333.''.
(b) Definition of Agent Institution.--Section 29(i)(2)(A)(i)(I) of
the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is
amended by striking ``was found to have a composite condition of
outstanding or good'' and inserting ``was assigned a CAMELS rating of
1, 2, or 3 under the Uniform Financial Institutions Rating System (or
an equivalent rating under a comparable rating system)''.
(c) Reciprocal Deposits Study.--
(1) In general.--The Federal Deposit Insurance Corporation, in
consultation with the Board of Governors of the Federal Reserve
System, shall carry out a study on reciprocal deposits.
(2) Contents.--The study required under paragraph (1) shall
include--
(A) an analysis of how reciprocal deposits have performed
since 2018, which shall include--
(i) the use of quantitative and qualitative data;
(ii) a breakdown of the usage of reciprocal deposits by
size of insured depository institution;
(iii) the usage of reciprocal deposits during periods
of stress; and
(iv) an analysis, to the extent practicable, of end-
user depositors, such as municipalities, businesses, and
nonprofit organizations, that drive demand for reciprocal
products;
(B) an analysis, to the extent practicable, of how
reciprocal deposits compare to other deposit arrangements; and
(C) an analysis of the benefits and potential risks of
reciprocal deposits.
(3) Report.--Not later than 6 months after the date of
enactment of this Act, the Federal Deposit Insurance Corporation
shall issue a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate containing all findings and
determinations made in carrying out the study required under
paragraph (1).
SEC. 903. TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)) is amended--
(1) in paragraph (4)(A), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''; and
(2) in paragraph (10), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''.
SEC. 904. CREDIT UNION BOARD MODERNIZATION.
Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is
amended--
(1) by striking ``monthly'' each place such term appears;
(2) in the matter preceding paragraph (1), by striking ``The
board of directors'' and inserting the following:
``(a) In General.--The board of directors'';
(3) in subsection (a) (as so designated), by striking ``shall
meet at least once a month and''; and
(4) by adding at the end the following:
``(b) Meetings.--The board of directors of a Federal credit union
shall meet as follows:
``(1) With respect to a de novo Federal credit union, not less
frequently than monthly during each of the first five years of the
existence of such Federal credit union.
``(2) Not less than six times annually, with at least one
meeting held during each fiscal quarter, with respect to a Federal
credit union--
``(A) with a composite rating of either 1 or 2 under the
Uniform Financial Institutions Rating System (or an equivalent
rating under a comparable rating system); and
``(B) with a capability of management rating under such
composite rating of either 1 or 2.
``(3) Not less frequently than once a month, with respect to a
Federal credit union--
``(A) with a composite rating of either 3, 4, or 5 under
the Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system); or
``(B) with a capability of management rating under such
composite rating of either 3, 4, or 5.''.
SEC. 905. SYSTEMIC RISK AUTHORITY TRANSPARENCY.
(a) GAO Review.--Section 13(c)(4)(G)(iv) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as
follows:
``(iv) GAO review.--
``(I) In general.--The Comptroller General of the
United States shall, not later than 60 days after a
determination is made under clause (i), and again 180
days thereafter, review and report to the Congress on
the determination under clause (i), including--
``(aa) the basis for the determination;
``(bb) the purpose for which any action was
taken pursuant to such clause;
``(cc) the likely effect of the determination
and such action on the incentives and conduct of
insured depository institutions and uninsured
depositors;
``(dd) any mismanagement by the executives and
board of the insured depository institution that
contributed to the failure of the insured
depository institution;
``(ee) a review of the compensation practices
of the insured depository institution;
``(ff) any supervisory or regulatory
shortcomings with respect to the appropriate
Federal banking agency of the insured depository
institution;
``(gg) any actions taken by the Federal banking
regulators, Financial Stability Oversight Council,
Department of the Treasury, and other relevant
financial regulators in relation to the failure of
the insured depository institution; and
``(hh) any additional relevant entities or
activities that may have contributed to the failure
of the insured depository institution, including
with respect to auditing, accounting, credit rating
agencies, investment bank underwriters, and
emergency liquidity options such as loans from the
Federal reserve banks or advances through the
Federal Home Loan Bank system.
``(II) Rule of construction.--Nothing in this
clause or a report issued pursuant to this clause may
be construed to limit the authority of a Federal agency
to enforce violations of Federal statutes, rules, or
orders.''.
(b) Appropriate Federal Banking Agency Report.--Section 13(c) of
the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by
adding at the end the following:
``(12) Appropriate federal banking agency report.--
``(A) In general.--The appropriate Federal banking agency
of an insured depository institution about which a
determination is made under paragraph (4)(G)(i) shall, not
later than 90 days after the date of such determination, and
again 210 days thereafter, submit a report to the Congress that
discloses the following:
``(i) Subject to such redactions as the appropriate
Federal banking agency determines appropriate to protect
personally identifiable information about customers and
other financial institutions (as such term is defined under
section 11(e)(9)(D))--
``(I) all reports of examination and inspection
that relate to the failed insured depository
institution in the previous 3-year period;
``(II) all formal communications of a material
supervisory determination conveyed to the failed
insured depository institution in the previous 3-year
period; and
``(III) any additional exam reports and
correspondence that the appropriate Federal banking
agency determines may be relevant to the failure of the
insured depository institution.
``(ii) An examination of any mismanagement by the
executives and board of the insured depository institution
that contributed to the failure of the insured depository
institution.
``(iii) Any supervisory or regulatory shortcomings by
such appropriate Federal banking agency with respect to the
insured depository institution.
``(iv) Any dynamics that the appropriate Federal
banking agency determines may have contributed to the
failure of the insured depository institution.
``(v) Any supervisory, regulatory, or legislative
recommendations such appropriate Federal banking agency may
have to improve the safety and soundness of similarly
situated insured depository institutions, the banking
system, and financial stability.
``(B) Protection of sensitive information.--
``(i) Effect on privilege.--The provision of any
information by a Federal banking agency under this
paragraph may not be construed as--
``(I) waiving, destroying, or otherwise affecting
any privilege applicable to the information; or
``(II) waiving any exemption applicable to the
information under section 552 of title 5, United States
Code (commonly known as the `Freedom of Information
Act').
``(ii) Transparency.--
``(I) In general.--A Federal banking agency shall
publish materials contained in a report required under
subparagraph (A) to the fullest extent possible to
promote transparency.
``(II) Consultation on omitting materials.--If a
Federal banking agency determines particular materials
described under subclause (I) should not be published,
the Federal banking agency shall consult with the chair
and ranking member of the Committee on Financial
Services of the House of Representatives and the chair
and ranking member of the Committee on Banking,
Housing, and Urban Affairs of the Senate.
``(III) Omitting materials.--If, after the
consultation required under subclause (II), the Federal
banking agency determines there is a substantial public
interest in not publishing such materials, the Federal
banking agency shall provide those materials to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate with a written
explanation describing the reasons for not publishing
those materials.
``(iii) Privilege.--For purposes of this subparagraph,
the term `privilege' includes any work-product, attorney-
client, or other privilege recognized under Federal or
State law.
``(C) Report extension.--A Federal banking agency may
extend a deadline described under subparagraph (A) for an
additional 60 days, if the Federal banking agency--
``(i) faces ongoing circumstances that require the
Federal banking agency to prioritize activities to promote
stability of the United States banking system; and
``(ii) notifies the Congress of such extension and the
reasons for such extension.
``(D) Consolidated reports.--A Federal banking agency may
consolidate multiple reports required under this paragraph so
long as the individual reports being consolidated all meet the
timing requirements under this paragraph.
``(E) Rule of construction.--Nothing in this paragraph or
reports or materials provided pursuant to this paragraph may be
construed to limit the authority of a Federal agency to enforce
violations of Federal statutes, rules, or orders.''.
SEC. 906. ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL FINANCIAL
INSTITUTIONS.
Section 308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended by adding at
the end the following new subsection:
``(d) Financial Agent Mentor-protege Program.--
``(1) In general.--The Secretary shall establish a program to
be known as the `Financial Agent Mentor-Protege Program' (in this
subsection referred to as the `Program') under which a financial
agent designated by the Secretary or a large financial institution
may serve as a mentor, under guidance or regulations prescribed by
the Secretary, to a small financial institution to allow such small
financial institution--
``(A) to be prepared to perform as a financial agent; or
``(B) to improve capacity to provide services to the
customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events to
promote the participation of financial agents, large financial
institutions, and small financial institutions in the Program at
least once a year.
``(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial agent,
large financial institution, or small financial institution may be
excluded from participation in the Program.
``(4) Report.--The Secretary shall report to Congress
information pertaining to the Program, including--
``(A) the number of financial agents, large financial
institutions, and small financial institutions participating in
such Program; and
``(B) the number of outreach events described in paragraph
(2) held during the year covered by such report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent' means
any national banking association designated by the Secretary to
be employed as a financial agent of the Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity regulated by the
Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance
Corporation, or the National Credit Union Administration that
has total consolidated assets greater than or equal to
$50,000,000,000.
``(C) Rural depository institution.--The term `rural
depository institution' means a depository institution (as
defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813))--
``(i) with total consolidated assets of less than
$10,000,000,000; and
``(ii) located in a rural area, as defined under
section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal
Regulations.
``(D) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(E) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the Comptroller of the
Currency, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, or the
National Credit Union Administration that has total
consolidated assets less than or equal to $2,000,000,000;
``(ii) a minority depository institution; or
``(iii) a rural depository institution.''.
SEC. 907. AMERICAN ACCESS TO BANKING.
(a) Streamlining Application Process and Review of Capital Raising
by De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall--
(A) for the purpose of streamlining the process of applying
to become a de novo regulated institution, conduct a review of
any application forms related to such process;
(B) to the extent practicable, gather information needed
from applicants seeking to become a de novo regulated
institution from other Federal Government agencies or public
sources to minimize information requests of such applicants;
and
(C) in consultation with the Securities and Exchange
Commission, review how de novo regulated institutions raise
capital while maintaining investor protections, including the
impact of--
(i) general capital raising restrictions; and
(ii) capital raising restrictions related to
individuals who are not accredited investors.
(2) Report.--Not later than 1 year after the date of enactment
of this Act, and annually for 5 years thereafter, each of the
Federal financial institutions regulatory agencies shall submit to
the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate and publish on a public website of such agency a report that
contains--
(A) a description of the actions taken by such agency
pursuant to paragraph (1); and
(B) as appropriate, any administrative or legislative
recommendations with respect to the purpose described in
paragraph (1)(C).
(b) Improving Communication With De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall, at the request of an applicant to become
a de novo regulated institution, designate an employee of the
agency as a caseworker, who may perform such duty in addition to
the other duties of the employee.
(2) Caseworker duties.--Each caseworker described in paragraph
(1) shall, to the maximum extent practicable--
(A) meet with the lead organizers applying to become a de
novo regulated institution to provide a tutorial with respect
to the application process; and
(B) be the primary point of contact of the respective
Federal financial institutions regulatory agency for such
organizers during the application process.
(3) New caseworker.--Each agency described in paragraph (1) may
designate a new caseworker, as appropriate, to support continuity
based on staffing and responsibilities assigned to the current
caseworker.
(c) De Novo Mentor-protege Partnerships.--
(1) In general.--At the request of an institution that seeks to
become a de novo regulated institution, each of the Federal
financial institutions regulatory agencies shall, to the maximum
extent practicable, provide a list to such institution of similar
types of institutions that--
(A) were recently approved to become a de novo regulated
institution; and
(B) are interested in volunteering to serve as a mentor to
provide advice about the de novo application process.
(2) Mentorship information.--Not later than 1 year after the
date of enactment of this Act, each of the Federal financial
institutions regulatory agencies shall provide public information
and directions on how an institution may request a mentor or serve
as a mentor as described in paragraph (1).
(d) State and Stakeholder Engagement Plan.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall develop a plan to--
(A) regularly consult with State regulators to promote
cooperation between State and Federal banking and credit union
agencies in the creation of de novo regulated institutions,
including responding to any State regulator that requests
assistance on how a State-chartered financial institution can
request Federal insurance;
(B) regularly consult with stakeholders, including
applicants to become de novo regulated institutions and
recently approved regulated institutions, to inform any reforms
that may support the creation of de novo regulated
institutions, including rural institutions, community
development financial institutions, and minority depository
institutions; and
(C) provide guidance, training material, and regular
workshops to assist any interested parties to understand such
agencies' processes.
(2) Submission to congress.--
(A) In general.--Not later than 2 years after the date of
enactment of this Act, and every 5 years thereafter, each of
the Federal financial institutions regulatory agencies shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate the respective plan of such agency
described in paragraph (1).
(B) Public comment.--With respect to developing the plan
described in paragraph (1), each of the Federal financial
institutions regulatory agencies shall--
(i) provide an opportunity for public comments; and
(ii) take such public comments into consideration.
(e) Definitions.--
(1) In general.--In this section:
(A) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(B) Federal financial institutions regulatory agencies.--
The term ``Federal financial institutions regulatory agencies''
has the meaning given the term in section 1003 of the Federal
Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3302).
(C) Regulated institution.--The term ``regulated
institution'' means--
(i) with respect to a Federal banking agency, a
depository institution (as such term is defined in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813))
for which the Federal banking agency is the appropriate
Federal banking agency (as such term is defined in such
section 3); and
(ii) with respect to the National Credit Union
Administration, an insured credit union (as such term is
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752)).
(D) State.--The term ``State'' means each of the several
States, the District of Columbia, and each territory of the
United States.
(E) State regulator.--The term ``State regulator'' means--
(i) with respect to a Federal banking agency, a State
banking regulator; and
(ii) with respect to the National Credit Union
Administration, the State regulatory agency having
jurisdiction over a State credit union (as such term is
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752)).
(2) Rule of construction.--For purposes of this section, the
process of applying to become a de novo regulated institution shall
include the process of applying for Federal deposit insurance,
Federal share insurance, or membership in the Federal Reserve
System.
SEC. 908. PROMOTING NEW BANK FORMATION.
(a) Pilot Phase-in of Capital Standards.--The Federal banking
agencies may issue rules that provide for a 2-year phase-in period for
a qualifying community bank or its depository institution holding
company to meet any Federal capital requirements that would otherwise
be applicable to the qualifying community bank or its depository
institution holding company, beginning on--
(1) the date on which the qualifying community bank became an
insured depository institution; or
(2) in the case of its depository institution holding company,
the date on which the qualifying community bank of the depository
institution holding company became an insured depository
institution.
(b) Pilot Changes to Business Plans.--
(1) In general.--During the 2-year period beginning on the date
on which a qualifying community bank became an insured depository
institution, the qualifying community bank or its depository
institution holding company may request to deviate from a business
plan that has been approved by the appropriate Federal banking
agency by submitting a request to such agency pursuant to this
section.
(2) Review of changes.--The appropriate Federal banking agency
shall, not later than the end of the 180-day period beginning on
the receipt of a request under paragraph (1)--
(A) approve, conditionally approve, or deny such request;
and
(B) notify the applicant of such decision and, if the
agency denies the request--
(i) provide the applicant with the reason for such
denial; and
(ii) suggest changes to the request that, if adopted,
would allow the agency to approve such request.
(3) Result of failure to act.--If the appropriate Federal
banking agency fails to approve or deny a request within the 90-day
period required under paragraph (2), such request shall be deemed
to be approved.
(c) Pilot Program Study.--
(1) Study.--The Federal banking agencies shall, jointly, carry
out a study on the impact of the pilot program carried out pursuant
to subsections (a) and (b) of this section on the formation of de
novo insured depository institutions, including such institutions
which are rural depository institutions, community development
financial institutions, and minority depository institutions,
taking into account safety and soundness, promoting competition,
and expanding access to affordable financial products and services
to underserved communities.
(2) Report to congress.--Not later than December 31, 2031, the
Federal banking agencies shall, jointly, issue a report to the
Committee on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate
containing all findings and determinations made in carrying out the
study required under paragraph (1).
(d) Study on De Novo Insured Depository Institutions.--
(1) Study.--The Federal banking agencies shall, jointly, carry
out a study on--
(A) the principal causes for the low number of de novo
insured depository institutions in the 10-year period ending on
the date of enactment of this subsection;
(B) ways to promote more de novo insured depository
institutions in areas currently underserved by insured
depository institutions; and
(C) ways to ensure de novo depository institutions,
including institutions which are rural depository institutions,
community development financial institutions, and minority
depository institutions, can utilize the Community Bank
Leverage Ratio.
(2) Report to congress.--Not later than the end of the 1-year
period beginning on the date of enactment of this Act, the Federal
banking agencies shall, jointly, issue a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate
containing all findings and determinations made in carrying out the
study required under paragraph (1).
(e) Definitions.--In this section:
(1) Appropriate federal banking agency.--The term ``appropriate
Federal banking agency'' has the meaning given the term in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Depository institution.--The term ``depository
institution'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(3) Depository institution holding company.--The term
``depository institution holding company'' has the meaning given
the term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(4) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
(5) Insured depository institution.--The term ``insured
depository institution'' has the meaning given the term in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(6) Qualifying community bank.--The term ``qualifying community
bank'' means a depository institution that--
(A) including its holding company and all of its
subsidiaries and affiliates, has total combined assets of less
than $10,000,000,000; and
(B) became an insured depository institution between
January 1, 2026, and December 31, 2028.
SEC. 909. RURAL DEPOSITORIES REVITALIZATION STUDY.
(a) Study.--The Federal banking agencies shall, jointly, carry out
a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of depository institutions in the
United States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the Federal banking agencies that limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo depository institutions in
rural areas.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Federal banking agencies shall, jointly, issue a report
to Congress containing all findings and determinations made in carrying
out the study required under subsection (a).
(c) Study on Rural Credit Unions.--The National Credit Union
Administration shall carry out a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of credit unions in the United States
that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the National Credit Union Administration
that limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo credit unions in rural
areas.
(d) Report on Rural Credit Unions.--Not later than 1 year after the
date of enactment of this Act, the National Credit Union Administration
shall issue a report to Congress containing all findings and
determinations made in carrying out the study required under subsection
(c).
(e) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given that term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Federal banking agencies.--The term ``Federal banking
agencies'' means the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, and the Federal Deposit
Insurance Corporation.
(3) Rural.--With respect to an area, the term ``rural'' has the
meaning given that term in section 1026.35(b)(2)(iv)(A) of title
12, Code of Federal Regulations.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
SEC. 1001. HOMES ARE FOR PEOPLE, NOT CORPORATIONS.
(a) Definitions.--In this section:
(1) Consumer reporting agency.--The term ``consumer reporting
agency'' has the meaning given the term in section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a)).
(2) Excepted purchase.--The term ``excepted purchase'' means
any purchase of a single-family home that is--
(A) newly constructed, renovated, or a rental conversion
for sale by a large institutional investor and not as a
residence rented pending sale;
(B) pursuant to a build-to-rent program where the large
institutional investor purchases, constructs, or constructs and
retains a newly constructed single-family homes to be managed
as a rental property, whether as part of a community made up
exclusively of renter-occupied single-family homes or as part
of a community made up of single-family homes that are both
owner- and renter-occupied;
(C) pursuant to a renovate-to-rent program that--
(i) substantially rehabilitates single-family homes
that do not meet structural or core system elements of
local building codes; and
(ii) makes improvements in an aggregate dollar amount
of not less than 15 percent of the purchase price of the
single-family home;
(D) pursuant to a homeownership program that--
(i) requires rental payments and any other fees that
are not greater than those collected by the large
institutional investor on other similarly situated single-
family homes not covered by the eligible homeownership
program;
(ii) is subject to a contract between the large
institutional investor and renter that shall be considered
a consumer credit transaction secured by a dwelling or real
property;
(iii) provides for positive reporting of rental
payments to consumer reporting agencies for any renter, who
shall be informed of and opts into such reporting; and
(iv) requires contribution of meaningful financial
support from the large institutional investor, including
price concessions, for the purchase of the single-family
home by the renter;
(E) pursuant to a program to boost homeownership that--
(i) provides for positive reporting of rental payments
to consumer reporting agencies for any renter, who shall be
informed of and opts into such reporting;
(ii) provides for the right of first refusal and a 30-
day ``first look'' period; and
(iii) may entail the meaningful financial support from
the large institutional investor, including price
concessions, for the purchase of a single-family home by
the renter (whether it is the home the renter occupies or
another home);
(F) in connection with the satisfaction of debts previously
contracted in good faith and where the large institutional
investor has the right to repossess the single-family home
under such contract;
(G) undertaken by a mortgage servicer, lender, or other
entity that has a legal right to a single-family home, for the
purpose of loss mitigation or compliance with servicing or
investor obligations, and not as a long-term investment
strategy, and is solely as a result of--
(i) a foreclosure;
(ii) a deed-in-lieu of foreclosure;
(iii) enforcement of a mortgage, deed of trust, or
other security interest; or
(iv) operation of law following borrower default;
(H) purchased from another large institutional investor
that either owned the single-family home on the date of
enactment of this Act or purchased the single-family home in
compliance with this section;
(I) purchased from an investor not covered under this
section, so long as the purchase occurred not more than 2 years
after the effective date under subsection (f);
(J) newly constructed, renovated, or a rental conversion
that is intended and operated for occupancy as part of a
community for households with 1 or more members aged 55 years
or older, and satisfies visitability standards established by
the Secretary of Housing and Urban Development; or
(K) purchased through a single purchase or combination or
series of purchases described in subparagraphs (A) through (J).
(3) Large institutional investor.--
(A) In general.--The term ``large institutional
investor''--
(i) means an investment fund, corporation, general or
limited partnership, limited liability company, joint
venture, association, or other for-profit entity that is a
legal entity structured in a manner that is not
aforementioned that--
(I) is engaged, in whole or in part, in the
business of investing in, owning, renting, managing, or
holding single-family homes; and
(II) alone or in concert with 1 or more other
entities, beginning after the date of enactment of this
Act, directly or indirectly has investment control of
not less than 350 single-family homes in the aggregate,
not including any single-family home purchased in an
excepted purchase made after the date of enactment of
this Act; and
(ii) does not include any local, State, Tribal, or
Federal government entity or instrumentality thereof.
(B) Rule of construction.--For purposes of this paragraph,
an entity has direct or indirect investment control over a
single-family home if the entity--
(i) owns, or has primary authority or fiduciary
responsibility to make material investment or management
decisions relating to, the single-family home;
(ii) is, or directly or indirectly controls, the
general partner or managing member of the entity that owns
the single-family home;
(iii) is or controls the investment manager, management
company, or investment advisor of the entity that owns the
single-family home;
(iv) owns or controls more than 25 percent of any class
of equity interests of the entity that owns the single-
family home, unless such entity is a passive investor; or
(v) otherwise controls the entity that owns the single-
family home.
(4) Purchase.--The term ``purchase'' includes any purchase,
transfer, or other acquisition of a single family home, including
through mergers, acquisitions, construction, foreclosures, or bulk
purchases, whether or not for cash consideration.
(5) Single-family home.--The term ``single-family home''--
(A) means a structure that contains 2 or fewer dwelling
units that are each intended for residential occupancy by a
single household; and
(B) does not include a manufactured home, as defined in
section 603 of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5402).
(b) Prohibition on Purchases by Large Institutional Investors.--
(1) In general.--No large institutional investor may purchase,
or enter into a contract to directly or indirectly purchase, any
single-family home.
(2) Exceptions.--The prohibition under paragraph (1) shall not
apply to--
(A) any excepted purchase; or
(B) any purchase of a single-family home in connection with
a restructuring or other reorganization of ownership of single-
family homes that were owned or purchased on or before the date
of enactment of this Act.
(3) Rule of construction.--Nothing in this section may be
construed to--
(A) require any large institutional investor to divest or
otherwise sell any single-family home purchased before the date
of enactment of this Act; or
(B) prevent the filing of a petition, or otherwise affect
any bankruptcy proceeding, under title 11, United States Code.
(4) Implementation.--
(A) In general.--In consultation with the Secretary of
Housing and Urban Development, the Director of Federal Housing
Finance Agency, and the Chair of the Securities and Exchange
Commission, the Secretary of the Treasury may issue regulations
in accordance with the notice and comment rulemaking procedures
under section 553 of title 5, United States Code, to carry out
the purposes of this section, including regulations to--
(i) minimize market disruptions upon identifying a risk
of material negative impact on the housing market,
including an impact on the ability of market participants
to dispose of single-family homes in an orderly fashion;
and
(ii) mitigate, to the extent possible, negative impacts
on consumers and communities.
(B) Rule of construction.--For the avoidance of doubt, no
regulation issued under subparagraph (A) may amend the
definitions of the terms defined under subsection (a),
including to--
(i) alter the scope of excepted purchases in a manner
that would undermine the goal of expanding the number of
single-family homes available to individual households for
purchase;
(ii) alter any type of excepted purchase in a manner
that would undermine the goal of expanding the number of
single-family homes available to individual households for
purchase;
(iii) add any category of large institutional investor
as an eligible class if not determined by this section; or
(iv) alter the quantitative threshold in the definition
of ``large institutional investor''.
(c) Renter Outreach Resource Established.--
(1) In general.--The Secretary of Housing and Urban Development
(in this subsection referred to as the ``Secretary'') shall, not
later than 180 days after the date of enactment of this Act,
establish a renter outreach resource that consists of a toll-free
telephone number and a public website designed to assist renters of
residential properties owned by a large institutional investor in--
(A) notifying Federal agencies about disputes relating to
the rental of such properties, including disputes about
potential violations of Federal law;
(B) sharing information about such disputes with other
Federal agencies, including other Federal agencies that manage
similar disputes;
(C) monitoring such disputes; and
(D) resolving such disputes, to the extent practicable.
(2) Response to outreach.--
(A) In general.--The Secretary shall establish reasonable
procedures to--
(i) promptly respond, in writing where appropriate, to
a renter who provides information to the Secretary about a
dispute using the renter outreach resource established
under paragraph (1); and
(ii) document such responses.
(B) Contents.--Responses provided under subparagraph (A)
shall include, where appropriate, information about--
(i) steps that have been taken by the Secretary or
another Federal agency in response to the information about
the dispute provided by the renter, including determining
the appropriate large institutional investor involved as
described in paragraph (3);
(ii) any responses received by the Secretary or another
Federal agency from the large institutional investor
related to such dispute; and
(iii) any outcome of the dispute, to the extent
practicable.
(3) Investigation of potential violations of federal law.--
(A) In general.--The Secretary shall promptly process and
investigate any information relating to a dispute received
through the renter outreach resource established under
paragraph (1) about a potential violation of Federal law that
is received from a renter of a residential property owned by a
large institutional investor through the renter outreach
resource established under paragraph (1), including--
(i) requesting information from a large institutional
investor;
(ii) determining the appropriate large institutional
investor involved in the dispute; and
(iii) sharing information about such potential
violation of Federal law with any relevant Federal
agencies, as the Secretary may determine appropriate.
(B) Responses to requests for information.--Upon request
for information made pursuant to subparagraph (A), the
Secretary shall provide a large institutional investor the
opportunity to respond, including regarding whether such large
institutional investor currently owns the property described in
such request for information.
(4) Information for appropriate state authority.--When the
Secretary receives information about a potential violation of State
law or about a dispute received through the renter outreach
resource, from a renter of a residential property owned by a large
institutional investor through the renter outreach resource
established under paragraph (1), the Secretary shall, at a minimum,
provide the renter with contact information for the appropriate,
State-specific, State authority authorized to process and
investigate such information.
(5) Notice about renter outreach resource.--Each large
institutional investor shall--
(A) provide to each renter of a residential property owned
by such investor at the time such renter first occupies such
home and annually thereafter--
(i) written notice about the renter outreach resource
established under paragraph (1); and
(ii) the name, phone number, and email address of the
person or entity responsible for receiving and addressing
renter disputes for the large institutional investor, and
update the name, phone number, and email address within 30
days if such information changes prior to the subsequent
time at which such notice is required to be provided; and
(B) prominently feature information about the renter
outreach resource established under paragraph (1) on a public
website of such investor that is accessible by such renter.
(6) Annual report to the congress.--
(A) In general.--The Secretary shall, not later than March
31 of each year, submit to the Congress a public report which
analyzes and aggregates the information received or obtained
pursuant to this subsection during the prior year that
includes--
(i) information about the types and the number of
disputes received about potential violations of Federal
law;
(ii) information about the types and the number of
disputes received about potential violations of State law;
(iii) where practicable, information about the
resolution of such disputes; and
(iv) information provided to the Secretary of Housing
and Urban Development under paragraph (8).
(B) Anonymization of data.--Any data included in a report
that is submitted under this paragraph shall be aggregated or
anonymized so as to protect any individual dispute or
personally identifiable information received through the renter
outreach resource.
(7) Protection of personal information.--In complying with the
requirements of this subsection, the Secretary shall take such
measures as the Secretary determines are necessary to provide for
the protection of personally identifiable information received
through the renter outreach resource in a manner that conforms with
existing standards for protection of the confidentiality of
personally identifiable information.
(8) Annual notification.--Not later than 180 days after the
date of the enactment of this Act, and not later than December 31st
of each year thereafter, each person or entity that satisfies the
definition of a large institutional investor, as such term is
defined in subsection (a), shall--
(A) notify the Secretary each year whether such owner is a
large institutional investor as defined in subsection (a); and
(B) in such notification, identify how many single-family
homes such large institutional investor has direct or indirect
investment control of as of the date of the submission of such
notice, and the city and State where each such single-family
home is located, unless such large institutional investor owns
10 or fewer single-family homes in such city.
(d) Enforcement.--
(1) Civil penalties.--The Secretary of the Treasury, or the
Attorney General at the request of the Secretary of the Treasury,
may bring an action against a large institutional investor that
violates subsection (b) for a civil penalty in an amount that is
not more than $1,000,000 per violation, or 3 times the purchase
price of the property involved, whichever is greater.
(2) Transfer to hud for homeownership expansion activities.--
For fiscal year 2027 and each fiscal year thereafter, to the extent
and in the amounts provided in advance in appropriations Acts,
civil penalties assessed under this section shall be transferred to
and available to the Secretary of Housing and Urban Development to
provide additional funding for the HOME Investment Partnerships
program under subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12741 et seq.), to be
allocated in accordance with the formula under that program, for
new construction, acquisition, and rehabilitation of single-family
homes and to provide assistance grants to first-time homebuyers,
which may be for downpayments, closing costs, and interest rate
buydowns.
(e) Studies on Large Institutional Investors.--
(1) Gao report.--Not later than 2 years after the date on which
the prohibition under subsection (b)(1) takes effect, and again not
later than 10 years after that date, the Comptroller General of the
United States shall submit to the Committee on Banking, Housing and
Urban Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report on--
(A) the impact of the ownership by large institutional
investors of single-family homes on housing availability and
affordability for renters and homebuyers; and
(B) the effectiveness of this section in reducing demand by
large institutional investors for single-family homes and
expanding homeownership for renters and homebuyers.
(2) Hud report.--Not later than 2 years after the date on which
the prohibition under subsection (b)(1) takes effect, and again not
later than 10 years after that date, the Secretary of the Housing
and Urban Development, in consultation with the Secretary of the
Treasury, the Administrator of the Rural Housing Service, the
Executive Director of the Loan Guaranty Service of the Department
of Veterans Affairs, the Chair of Securities and Exchange
Commission, and the Director of the Federal Housing Finance Agency,
shall submit to the Committee on Banking, Housing and Urban Affairs
of the Senate and the Committee on Financial Services of the House
of Representatives a report on--
(A) whether there should be adjustments to the definition
of the term ``large institutional investor'';
(B) the financial impact of this section on large
institutional investors, renters, and homebuyers; and
(C) any legislative recommendations regarding ways to
improve the authorities provided under this section to increase
the supply and affordability of single-family homes for
purchase by individual homebuyers.
(3) Sense of congress.--It is the sense of Congress that--
(A) this section is intended to expand the number of
single-family homes available to individuals for purchase and
is aimed at preserving and expanding the supply of single-
family homes available to individuals; and
(B) any further study on the effectiveness of this section
and any legislative recommendations therefrom should consider
this sense of Congress.
(f) Effective Date.--The requirements and prohibitions under
subsections (b) and (d) of this section--
(1) shall take effect on the date that is 180 days after the
date of enactment of this Act; and
(2) are repealed on the date that is 15 years after the
effective date under paragraph (1).
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
SEC. 1101. CENTRAL BANK DIGITAL CURRENCY.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by
inserting after section 16 (12 U.S.C. 411 et seq.) the following:
``SEC. 16A. CENTRAL BANK DIGITAL CURRENCY.
``(a) Definitions.--In this section:
``(1) Central bank digital currency.--The term `central bank
digital currency' means a digital asset that--
``(A) is denominated in United States dollars;
``(B) is a United States currency;
``(C) is a direct liability of the Federal Reserve System;
and
``(D) is widely available to the general public.
``(2) Digital asset.--The term `digital asset' has the meaning
given the term in section 2 of the GENIUS Act (12 U.S.C. 5901).
``(b) Prohibition.--Except as provided in subsection (c), the Board
of Governors of the Federal Reserve System or a Federal reserve bank
may not issue or create a central bank digital currency or any digital
asset that is substantially similar to a central bank digital currency
directly or indirectly through a financial institution or other
intermediary.
``(c) Exception.--Subsection (b) shall not prohibit any dollar-
denominated currency that is open, permissionless, and private, and
fully preserves the privacy protections of United States coins and
physical currency.
``(d) Sunset.--This provisions of this section shall cease to be
effective on December 31, 2030.
``(e) Rule of Construction.--Nothing in this section shall be
construed to allow the Board of Governors of the Federal Reserve System
to issue a central bank digital currency or any digital asset that is
substantially similar to a central bank digital currency directly or
indirectly absent authorization by an Act of Congress.''.
TITLE XII--MISCELLANEOUS
SEC. 1201. SEVERABILITY.
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 provisions to other persons or circumstances,
shall not be affected thereby.
SEC. 1202. NO ADDITIONAL FUNDS AUTHORIZED.
No additional funds are authorized to be appropriated to carry out
the requirements of this Act or any amendment made by this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.