[Congressional Record Volume 171, Number 133 (Friday, August 1, 2025)]
[Senate]
[Pages S5262-S5293]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3503. Mr. SCOTT of South Carolina submitted an amendment intended
to be proposed by him to the bill S. 2296, to authorize appropriations
for fiscal year 2026 for military activities of the Department of
Defense, for military construction, and for defense activities of the
Department of Energy, to prescribe military personnel strengths for
such fiscal year, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
DIVISION E--ROAD TO HOUSING ACT
SEC. 5001. SHORT TITLE.
This division may be cited as the ``Renewing Opportunity in
the American Dream to Housing Act of 2025'' or the ``ROAD to
Housing Act of 2025''.
SEC. 5002. TABLE OF CONTENTS.
The table of contents for this division is as follows:
DIVISION E--ROAD TO HOUSING ACT
Sec. 5001. Short title.
Sec. 5002. Table of contents.
TITLE I--IMPROVING FINANCIAL LITERACY
Sec. 5101. Reforms to housing counseling and financial literacy
programs.
TITLE II--BUILDING MORE IN AMERICA
Sec. 5201. Rental assistance demonstration program.
Sec. 5202. Increasing housing in opportunity zones.
Sec. 5203. Housing Supply Frameworks Act.
Sec. 5204. Whole-Home Repairs Act.
Sec. 5205. Community Investment and Prosperity Act.
Sec. 5206. Build Now Act.
Sec. 5207. Better Use of Intergovernmental and Local Development
(BUILD) Housing Act.
Sec. 5208. Unlocking Housing Supply Through Streamlined and Modernized
Reviews Act.
Sec. 5209. Innovation Fund.
Sec. 5210. Accelerating Home Building Act.
Sec. 5211. Build More Housing Near Transit Act.
Sec. 5212. Revitalizing Empty Structures Into Desirable Environments
(RESIDE) Act.
Sec. 5213. Housing Affordability Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
Sec. 5301. Housing Supply Expansion Act.
Sec. 5302. Modular Housing Production Act.
Sec. 5303. Property Improvement and Manufactured Housing Loan
Modernization Act.
Sec. 5304. Price Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
Sec. 5401. Creating incentives for small dollar loan originators.
Sec. 5402. Small dollar mortgage points and fees.
Sec. 5403. Appraisal Industry Improvement Act.
Sec. 5404. Helping More Families Save Act.
Sec. 5405. Choice in Affordable Housing Act.
TITLE V--PROGRAM REFORM
Sec. 5501. Reforming Disaster Recovery Act.
Sec. 5502. HOME Investment Partnerships Reauthorization and Improvement
Act.
Sec. 5503. Rural Housing Service Reform Act.
Sec. 5504. New Moving to Work cohort.
Sec. 5505. Reducing Homelessness Through Program Reform Act.
Sec. 5506. Incentivizing local solutions to homelessness.
TITLE VI--VETERANS AND HOUSING
Sec. 5601. VA Home Loan Awareness Act.
Sec. 5602. Veterans Affairs Loan Informed Disclosure (VALID) Act.
Sec. 5603. Housing Unhoused Disabled Veterans Act.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
Sec. 5701. Requiring annual testimony and oversight from housing
regulators.
Sec. 5702. FHA reporting requirements on safety and soundness.
Sec. 5703. United States Interagency Council on Homelessness oversight.
Sec. 5704. NeighborWorks Accountability Act.
Sec. 5705. Appraisal Modernization Act.
TITLE VIII--COORDINATION, STUDIES, AND REPORTING
Sec. 5801. HUD-USDA-VA Interagency Coordination Act.
Sec. 5802. Streamlining Rural Housing Act.
Sec. 5803. Improving self-sufficiency of families in HUD-subsidized
housing.
TITLE I--IMPROVING FINANCIAL LITERACY
SEC. 5101. REFORMS TO HOUSING COUNSELING AND FINANCIAL
LITERACY PROGRAMS.
(a) In General.--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) Performance review.--The Secretary--
``(A) may conduct periodic on-site reviews; and
``(B) shall conduct performance reviews of all
participating agencies that--
``(i) consists of a review of the participating agency's
compliance with all program requirements; and
``(ii) may take into account the agency's aggregate
counselor performance under paragraph (7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this paragraph,
the term `covered mortgage
[[Page S5263]]
loan' means any loan which is secured by a first or
subordinate lien on residential real property (including
individual units of condominiums and 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 pre-
purchase 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) permanently 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 of 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) 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)).''.
TITLE II--BUILDING MORE IN AMERICA
SEC. 5201. 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) by striking the fourth proviso;
(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:''
(4) by striking the twenty-second proviso, as so designated
before the date of enactment of this Act;
(5) in the twenty-seventh, thirtieth, thirty-first, thirty-
second, thirty-third, and thirty-forth provisos, as so
designated before the date of enactment of this Act, by
striking ``Second Component'' each place the term appears and
inserting ``First Component''; and
(6) 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 demonstration: Provided further, That
nothing in the matter under this heading shall be construed
to diminish, impair, or otherwise affect the rights of
property owners or tenants as enumerated in current law and
regulations: Provided further, That all property owner
rights, including those related to ownership, management, and
contractual obligations, shall continue to apply and be
respected following a Rental Assistance Demonstration Program
conversion: Provided further, That all tenant protections and
rights established in current law and regulations shall
remain fully in effect for properties converted under the
Rental Assistance Demonstration Program.''.
SEC. 5202. 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 located in, or that primarily serve, a
community that has been designated as a qualified opportunity
zone under section 1400Z-1 of the Internal Revenue Code of
1986.
SEC. 5203. HOUSING SUPPLY FRAMEWORKS ACT.
(a) Findings.--Congress finds the following:
(1) The United States is facing a housing supply shortage.
This housing supply shortage has resulted in a record number
of cost-burdened households across regions and spanning the
large and small cities, towns, and coastal and rural
communities of the United States.
(2) Several factors contribute to the undersupply of
housing in the United States, particularly workforce housing,
including rising costs of construction, a shortage of labor,
supply chain disruptions, and a lack of reliable funding
sources.
(3) Regulatory barriers at the State and local levels, such
as zoning and land use regulations, also inhibit the creation
of new housing to meet local and regional housing needs.
(4) State and local governments are proactively exploring
solutions for reforming regulatory barriers, but additional
resources, data, and models can help adequately address these
challenges.
(5) While land use regulation is the responsibility of
State and local governments, there is Federal support for
necessary reforms, and there is an opportunity for the
Federal Government to provide support and assistance to State
and local governments that wish to undertake necessary
reforms in a manner that fits their communities' needs.
(6) Therefore, zoning ordinances or systems of land use
regulation that have the intent or effect of restricting
housing opportunities based on economic status or income
without interests that are substantial, legitimate,
nondiscriminatory and that outweigh the regional need for
housing are contrary to the regional and national interest.
(b) 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
[[Page S5264]]
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.
(c) Guidelines on State and Local Zoning Frameworks.--
(1) Establishment.--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 in the Federal Register for
public comment; and
(B) establish a task force for the purpose of providing
consultation to draft guidelines published under subparagraph
(A), the members of which shall include--
(i) planners and architects;
(ii) housing developers, including affordable and market-
rate housing developers, manufactured housing developers, and
other business interests;
(iii) community engagement experts and community members
impacted by zoning decisions;
(iv) public housing authorities 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 Secretary.
(d) 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.
(e) Reporting.--
(1) Initial report.--Not later than 5 years after the date
on which the Assistant Secretary publishes the guidelines and
best practices for State and local zoning frameworks, the
Assistant Secretary shall submit to Congress a report
describing--
(A) the States that have adopted recommendations from the
guidelines and best practices, pursuant to subsection (c);
(B) a summary of the localities that have adopted
recommendations from the guidelines and best practices,
pursuant to subsection (c);
(C) a list of States that adopted a State zoning framework;
(D) a summary of the modifications that each State has made
in their State zoning framework;
(E) a general summary of the types of updates localities
have made to their local zoning framework;
(F) of the States that have adopted a State zoning
framework or recommendations from the guidelines and best
practices, the effect of such adoptions; and
(G) a summary of recommendations that were routinely not
adopted by States or by localities.
(2) Monitoring.--Two years after the date which the
Assistant Secretary submits to Congress the initial report
required under paragraph (1), and biennially thereafter, the
Secretary shall--
(A) publish a report that--
(i) provides the latest information regarding the
information described in subparagraphs (A) through (G) of
that paragraph;
(ii) identifies, to the greatest extent practicable, the
adoption rates by States and localities of each guideline and
best practice established under subsection (c);
(iii) requests and establishes a public comment period on
the guidelines and best practices established under
subsection (c) that are routinely not adopted or adopted at
significantly lower rates by States and localities; and
(iv) includes other relevant information and criteria, as
determined by the Secretary; and
(B) review and consider all public feedback to the report
required under subparagraph (A) for the purpose of improving
the guidelines or best practices under subsection (c) to
further achieve the zoning goals stated in subsection (a).
(f) GAO Report on Housing Supply.--Not later than 1 year
after the date of enactment of this Act, the Comptroller
General of the United States shall submit to the Committee on
Banking, Housing, and Urban Affairs of
[[Page S5265]]
the Senate and the Committee on Financial Services of the
House of Representatives a report that investigates barriers
to housing supply, which shall include an assessment of--
(1) the current state of--
(A) the rental and homeowner housing supply shortage;
(B) geographic patterns of that shortage;
(C) shortages in housing at various levels of
affordability; and
(D) shortages in housing appropriate for seniors, families
with children, and people with disabilities;
(2) the key drivers of the shortages described in paragraph
(1);
(3) regulatory, administrative, or procedural barriers that
exist in Federal housing programs that inhibit housing
development, and policy actions that can be taken to address
those barriers;
(4) the extent to which jurisdictions have successfully
implemented zoning or other policy reforms to increase
housing production and supply; and
(5) opportunities for increasing coordination between the
Department of Housing and Urban Development, the Federal
Housing Finance Agency, the Department of Agriculture, the
Department of the Treasury, and other agencies to address
housing supply.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
such sums as may be necessary for each of fiscal years 2026
through 2030.
(h) 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 (c).
SEC. 5204. 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 homeowner.--The term ``eligible homeowner''
means a homeowner--
(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 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; or
(iii) an owner who can demonstrate an ownership interest in
the property 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 50 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) enter into agreements with 1 or more local
governments, 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) or 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);
(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; 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 homeowner 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.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a pilot
program to provide grants to implementing organizations to
administer a whole-home repairs program for eligible
homeowners and eligible landlords.
(2) Use of funds.--An implementing organization that
receives a grant under this subsection--
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(A) shall provide grants to eligible homeowners to
implement whole-home repairs not covered by other Federal
home repair programs and 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
homeowners and eligible landlords to evaluate, whole-home
repair program funds provided under this subsection with
Federal, State, and local home repair programs to provide the
greatest benefit to the greatest number of eligible landlords
and eligible homeowners and avoid duplication of benefits and
redundancies;
(D) shall ensure 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; and
(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).
(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 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, suburban, or
urban area within a jurisdiction;
(ii) a plan for selecting subrecipients, if applicable;
(iii) how the implementing organization plans to execute
the coordination of Federal, State, and local home repair
programs, including programs administered by the Department
of Energy 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) how the implementing organization plans to process and
verify applications for grants from eligible homeowners 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 non-metropolitan areas, or subrecipients
serving non-metropolitan areas if applicable, with a share of
total funds commensurate to 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.
(8) Supplement, not supplant.--Amounts awarded under this
subsection to implementing organizations shall supplement,
not supplant, other Federal, State, 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, and local programs for home
repair or improvement, including programs administered by the
Department of the Agriculture; and
(B) enhance collaboration and cross-agency streamlining
efforts that reduce the burdens of multiple income
verification processes and applications on the eligible
homeowner, 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 homeowner 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
homeownership 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 and both homeownership 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
[[Page S5267]]
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 in
partnership 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) Funding.--The Secretary--
(A) is authorized to use up to $30,000,000 of funds made
available as provided in appropriations Acts for programs
administered by the Office of Lead Hazard Control and Healthy
Homes to carry out the pilot program under this subsection;
and
(B) shall submit 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 a
report on the appropriations accounts from which the
Secretary will derive the funding under subparagraph (A).
(12) 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.
(13) Termination.--The pilot program established under this
subsection shall terminate on October 1, 2031.
SEC. 5205. 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''.
SEC. 5206. 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 natural rental vacancy rate in the
jurisdiction of the covered recipient is greater than the
national annual natural rental vacancy rate for the most
recent year available, as published by the Bureau of the
Census;
(C) during the 1-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) the current annual growth rate of the eligible
recipient; and
(B) 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 number of housing units, as of the third quarter
of the preceding fiscal year, in the jurisdiction of the
eligible recipient, as calculated by the Secretary; and
(bb) the number of housing units, as of 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
[[Page S5268]]
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
on policies to reduce regulatory barriers to housing and
increase housing supply.
(2) Implementation dates.--Subsection (b) shall take effect
beginning with the second full fiscal year after the date of
enactment of this Act and remain in effect through fiscal
year 2042.
SEC. 5207. 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)).''.
SEC. 5208. 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 homebuyers to purchase 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 pre-development 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 homeowner or renter assistance for HVAC,
hot water heaters, and other necessary uses of 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
sections 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 on up to 4 scattered site
existing dwelling units where there is a maximum of 4 units
on any 1 site.
(iv) Acquisitions (including leasing) or 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 sections
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 on 5 to 15 dwelling units where
there is a maximum of fifteen 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 on 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 a--
(aa) floodway;
(bb) floodplain; or
(cc) other area, clearly delineated by the grantee; and
[[Page S5269]]
(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) 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. 5209. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that--
(A) serves--
(i) a majority of households with income not greater than
80 percent of area median income; and
(ii) households with income not greater than 100 percent of
area median income; or
(B) serves--
(i) a majority of households with income not greater than
60 percent of area median income; and
(ii) households with income not greater than 120 percent of
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 date
on which the notice of funding opportunity is made available;
or
(B) a unit of general local government or 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;
(C) serve as matching funds under a State revolving fund
program related to a clean water or drinking water program
administered by the Environmental Protection Agency in which
the eligible entity is the grantee under that program, unless
otherwise determined by the Secretary; and
(D) 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)(D) include--
(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 to allow for denser and
more affordable development;
(iv) instituting incentives to promote dense development;
(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
regulations and restrictions;
(xi) minimizing the impact of overburdensome energy and
water efficiency standards on housing costs; and
(xii) other activities that reduce 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,
including adoption of any of the frameworks developed under
section 203; and
(ii) demonstrated a marked improvement in housing supply
growth.
(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) 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.
SEC. 5210. 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.
[[Page S5270]]
(5) Infill development.--The term ``infill development''
means residential development on small parcels in previously
established areas for replacement by 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) Pre-reviewed designs.--The term ``pre-reviewed
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 may award grants to eligible
entities to select pre-reviewed designs of covered structures
of mixed-income housing for use in the jurisdiction of the
eligible entity.
(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 by 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 pre-reviewed designs selected using the grant
amounts in their communities;
(3) the number of permits issued for housing development
utilizing pre-reviewed designs; and
(4) the number of housing units produced in developments
utilizing the pre-reviewed 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 pre-
reviewed 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 pre-
reviewed 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) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary such sums as are necessary to carry out this
section.
(2) Technical assistance.--The Secretary may set aside not
more than 5 percent of amounts appropriated under paragraph
(1) in a fiscal year to provide technical assistance to grant
recipients under this section and pre-grant technical
assistance for prospective applicants.
SEC. 5211. BUILD MORE HOUSING NEAR TRANSIT ACT.
Section 5309 of title 49, United States Code, is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (6) as paragraph (7); and
(B) by inserting after paragraph (5) the following:
``(6) Pro-housing policy.--The term `pro-housing policy'--
``(A) means any adopted State or local policy that will
remove regulatory barriers to the construction or
preservation of housing units, including affordable housing
units; and
``(B) shall include any adopted State or local policy
that--
``(i) reduces or eliminates parking minimums;
``(ii) establishes a by-right approval process for housing
under which land use development approval is limited to
determining that the development meets objective zoning and
design standards that--
``(I) involve no subjective judgment by a public official;
``(II) are uniformly verifiable by reference to an external
and uniform benchmark or criterion available to both the land
use developer and the public official prior to submission;
and
``(III) include only such standards as are published and
adopted by ordinance or resolution by a jurisdiction before
submission of a development application;
``(iii) reduces or eliminates minimum lot sizes;
``(iv) eliminates or raises residential property height
limits or increases the number of dwelling units permitted to
be constructed under a by-right approval process; or
``(v) carries out other policies as determined by the
Secretary, in consultation with the Secretary of Housing and
Urban Development.'';
(2) in subsection (g)(2), by adding at the end the
following:
``(D) Eligibility for adjustment of rating for project
justification criteria for pro-housing policies;
considerations.--In evaluating and rating a project as a
whole for project justification under subparagraph (A), the
Secretary--
``(i) may increase 1 point on the 5-point scale (high,
medium-high, medium, medium-low, or low) the rating of a
project if the applicant submits documented evidence of pro-
housing policies for areas accessible to transit facilities
along the project route; and
``(ii) should consider whether the pro-housing policies
documented by the applicant will result, through new
production and preservation, in an amount of housing units,
including housing units affordable below the area median
income, that is appropriate to expected housing demand in the
project area.
``(E) Consultation.--In developing the evaluation process
that could lead to the increased rating described in
subparagraph (D)(i), the Secretary shall consult with the
Secretary of Housing and Urban Development.'';
(3) in subsection (h)(6), by adding at the end the
following:
``(C) Eligibility for adjustment of rating for project
justification criteria for pro-housing policies;
considerations.--In evaluating and rating the benefits of a
project under subparagraph (A), the Secretary--
``(i) may increase the rating of a project if the applicant
submits documented evidence of pro-housing policies for areas
accessible to transit facilities along the project route; and
``(ii) should consider whether the pro-housing policies
documented by the applicant will result, through new
production and preservation, in an amount of housing units,
including housing units affordable below the area median
income, that is appropriate to expected housing demand in the
project area.
``(D) Consultation.--In developing the evaluation process
that could lead to the increased rating described in
subparagraph (C)(i), the Secretary shall consult with the
Secretary of Housing and Urban Development.''; and
(4) in subsection (o)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``and'' at the end;
(ii) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) information concerning projects for which the
applicant submitted pro-housing policies under subsection
(g)(2)(D) or subsection (h)(6) and received an adjustment of
rating for project justification.''.
SEC. 5212. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE
ENVIRONMENTS (RESIDE) ACT.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that--
(A) serves households earning not more than 100 percent of
the area median income, if a majority of the housing units
are affordable to households earning not more than 80 percent
of the area median income; or
(B) 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, as defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704).
(5) HOME investment partnerships program.--The term ``HOME
Investment Partnerships Program'' means the program under
subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.).
(6) Pilot program.--The term ``Pilot Program'' means the
Blighted Building to Housing Conversion Program carried out
under subsection (b).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(8) 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.
[[Page S5271]]
(b) Grant Program.--For each of fiscal years 2027 through
2031, if the amounts made available to carry out the HOME
Investment Partnerships Program exceed $1,350,000,000, the
Secretary may use not more than $100,000,000 of the excess
amounts to carry out a pilot program, to be known as the
``Blighted Building to Housing Conversion Program'', under
which the Secretary awards 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 $100,000,000
is available to carry out the Pilot Program pursuant to
subsection (b), 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 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 HOME Investment Partnerships Program
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 the HOME
Investment Partnerships Program.
(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.
(g) Applicability of HOME Requirements.--The requirements
for rental, sale, and resale of housing under the HOME
Investment Partnerships Program shall apply to rental, sale,
and resale of converted housing units under the Pilot
Program.
(h) 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.
(i) Study; Report.--Not later than 180 days after the
termination of the Pilot Program, the Secretary shall study
and submit a report to Congress 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 homeownership; and
(4) removing blight.
SEC. 5213. HOUSING AFFORDABILITY ACT.
(a) Multifamily Loan Limit Study.--The Commissioner of the
Federal Housing Administration, in consultation with the
Secretary of the Department of Housing and Urban Development,
shall conduct a study to assess--
(1) whether current multifamily loan limits for each
multifamily mortgage insurance program are set at appropriate
amounts, including to cover the cost of land and
construction;
(2) whether the Commissioner has sufficient authority to
set loan limits for each multifamily mortgage insurance
program at appropriate amounts, including to cover the cost
of land and construction;
(3) the potential impacts of altering the calculation of
annual adjustments under section 206A of the National Housing
Act (12 U.S.C. 1712a) using the percentage change in the
Consumer Price Index for All Urban Consumers to instead use
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 a
combination thereof, including--
(A) the impact on the General Insurance and Special Risk
Insurance Fund;
(B) the availability of multifamily purchase and
construction lending;
(C) the impact on prices, including rental prices, within
the multifamily housing market; and
(D) the impact on housing supply.
(b) Report.--The Commissioner of the Federal Housing
Administration shall submit a report to Congress within 180
days of enactment of this Act summarizing its findings under
the study in subsection (a).
(c) Rulemaking.--The Secretary of Housing and Urban
Development may, in consultation with the Commissioner of the
Federal Housing Administration, conduct notice and comment
rulemaking to increase multifamily loan limits in a manner
that would not exceed the following:
(1) With respect to insurance under section 207 of the
National Housing Act (12 U.S.C. 1713)--
(A) for projects that do not consist of elevator-type
structures--
(i) $83,655 per family unit without a bedroom;
(ii) $92,664 per family unit with one bedroom;
(iii) $110,682 per family unit with two bedrooms;
(iv) $136,422 per family unit with three bedrooms; and
(v) $154,440 per family unit with four or more bedrooms;
and
(B) for projects that consist of elevator-type structures--
(i) $96,525 per family unit without a bedroom;
(ii) $108,108 per family unit with one bedroom;
(iii) $132,561 per family unit with two bedrooms;
(iv) $166,023 per family unit with three bedrooms; and
(v) $187,721.50 per family unit with four or more bedrooms.
(2) With respect to insurance under section 213 of the
National Housing Act (12 U.S.C. 1715e)--
(A) for projects that do not consist of elevator-type
structures--
(i) $90,665.50 per family unit without a bedroom;
(ii) $104,524 per family unit with one bedroom;
(iii) $126,060 per family unit with two bedrooms;
(iv) $161,354.50 per family unit with three bedrooms; and
(v) $179,757.50 per family unit with four or more bedrooms;
and
(B) for projects that consist of elevator-type structures--
(i) $96,525 per family unit without a bedroom;
(ii) $109,362 per family unit with one bedroom;
(iii) $132,981 per family unit with two bedrooms;
(iv) $172,033.50 per family unit with three bedrooms; and
(v) $188,839 per family unit with four or more bedrooms.
(3) With respect to insurance under section 220 of the
National Housing Act (12 U.S.C. 1715k)--
(A) for projects that do not consist of elevator-type
structures--
(i) $83,655 per family unit without a bedroom;
(ii) $92,664 per family unit with one bedroom;
(iii) $110,682 per family unit with two bedrooms;
(iv) $136,422 per family unit with three bedrooms; and
(v) $154,440 per family unit with four or more bedrooms;
and
(B) for projects that consist of elevator-type structures--
(i) $96,525 per family unit without a bedroom;
(ii) $108,108 per family unit with one bedroom;
(iii) $132,561 per family unit with two bedrooms;
(iv) $161,023 per family unit with three bedrooms; and
(v) $187,721.50 per family unit with four or more bedrooms.
(4) With respect to insurance under section 221 of the
National Housing Act (12 U.S.C. 1715l)--
(A) for projects that do not consist of elevator-type
structures--
(i) $83,254.50 per family unit without a bedroom;
(ii) $94,498.50 per family unit with one bedroom;
(iii) $114,224 per family unit with two bedrooms;
(iv) $143,372 per family unit with three bedrooms; and
(v) $162,461 per family unit with four or more bedrooms;
and
(B) for projects that consist of elevator-type structures--
(i) $89,927 per family unit without a bedroom;
(ii) $103,090 per family unit with one bedroom;
(iii) $125,354 per family unit with two bedrooms;
(iv) $162,162 per family unit with three bedrooms; and
(v) $178,008.50 per family unit with four or more bedrooms.
(5) With respect to insurance under section 231 of the
National Housing Act (12 U.S.C. 1715v)--
(A) for projects that do not consist of elevator-type
structures--
(i) $83,254.50 per family unit without a bedroom;
(ii) $94,498.50 per family unit with one bedroom;
(iii) $114,224 per family unit with two bedrooms;
(iv) $143,372 per family unit with three bedrooms; and
[[Page S5272]]
(v) $162,461 per family unit with four or more bedrooms;
and
(B) for projects that consist of elevator-type structures--
(i) $89,927 per family unit without a bedroom;
(ii) $103,090 per family unit with one bedroom;
(iii) $125,354 per family unit with two bedrooms;
(iv) $162,162 per family unit with three bedrooms; and
(v) $178,008.50 per family unit with four or more bedrooms.
(6) With respect to insurance under section 234 of the
National Housing Act (12 U.S.C. 1715y)--
(A) for projects that do not consist of elevator-type
structures--
(i) $92,505.50 per family unit without a bedroom;
(ii) $106,658 per family unit with one bedroom;
(iii) $128,631.50 per family unit with two bedrooms;
(iv) $164,648 per family unit with three bedrooms; and
(v) $183,425 per family unit with four or more bedrooms;
and
(B) for projects that consist of elevator-type structures--
(i) $97,350 per family unit without a bedroom;
(ii) $111,593 per family unit with one bedroom;
(iii) $135,696 per family unit with two bedrooms;
(iv) $175,544.50 per family unit with three bedrooms; and
(v) $192,693.50 per family unit with four or more bedrooms.
(d) Rule of Construction.--Nothing in this section or the
amendment made by this section shall 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.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
SEC. 5301. 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) 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
Renewing Opportunity in the American Dream to Housing Act of
2025, 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 subparagraph (C) 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 Renewing Opportunity in the American Dream to Housing
Act of 2025.
``(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 does 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
Renewing Opportunity in the American Dream to Housing Act of
2025.
``(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.''.
(c) Other Federal Laws Regulating Manufactured Homes.--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).
(d) 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).''.
(e) Preemption.--Nothing in this section or the amendments
made by this section shall 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. 5302. 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 meet 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
[[Page S5273]]
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.--
(1) Award.--The Secretary may award a grant to study the
design and feasibility of a standardized uniform commercial
code for modular homes, which shall evaluate--
(A) the utility of a standardized coding system for
serializing and securing modules, streamlining design and
construction, and improving modular home innovation; and
(B) a means to coordinate a standardized code with
financing incentives.
(2) Authorization of appropriations.--There is authorized
to be appropriated such funds as may be necessary to carry
out paragraph (1).
SEC. 5303. 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
that subsection before the date of enactment of this Act
shall apply.
(b) HUD Study of Off-site Construction.--
(1) Definitions.--In this subsection:
(A) Off-site construction housing.--The term ``off-site
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 meet 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.--The Secretary of Housing and Urban Development
shall conduct a study and submit to Congress a report on the
cost effectiveness of off-site construction housing, that
includes--
(A) an analysis of the advantages of the impact of
centralization in a factory and transportation to a
construction site on cost, precision, and materials waste;
(B) the extent to which off-site 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 off-site 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. 5304. PRICE ACT.
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
consortia of such entities;
``(G) a community development financial institution;
``(H) an Indian tribe;
``(I) a tribally designated housing entity;
``(J) a State; or
``(K) 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
[[Page S5274]]
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.--The Secretary shall, by notice, carry
out a competitive grant program to award funds to eligible
recipients to carry out eligible projects for development of
or improvements in 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 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 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 and tribally designated housing entities.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this section.''.
TITLE IV--ACCESSING THE AMERICAN DREAM
SEC. 5401. 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 the occupancy of
between 1 and 4 families; 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;
(6) with a commission reflecting a percentage of the amount
of credit extended, for which a minimum or maximum
compensation amount is set; and
(7) by any other mechanism that the Director may find to be
a practice for compensating mortgage loan originators,
including any mechanism that provides a loan originator with
compensation in such a way that the loan originator does not
necessarily receive a lower level of compensation for
originating a small dollar mortgage than the loan originator
would receive for originating a mortgage loan that is not a
small dollar mortgage.
(c) Contents.--The report required under subsection (b)
shall include--
(1) data and other analysis regarding the effect of the
approaches to loan originator compensation described in
subsection (b) on the availability of small dollar mortgage
loans; and
(2) analysis and discussion regarding other potential
barriers to small dollar mortgage lending.
(d) Rulemaking.--Following the issuance of the report
required under subsection (b), the Director may issue
regulations to clarify the forms of compensation a lender may
use to compensate a loan originator that--
(1) are permissible pursuant to section 129B(c) of the
Truth in Lending Act (15 U.S.C. 1639b(c)); and
(2) would result in the loan originator receiving
compensation for originating a small dollar mortgage that is
not less than the compensation the loan originator would
receive for originating a mortgage loan that is not a small
dollar mortgage.
SEC. 5402. 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.--
(1) In general.--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
existing thresholds under section 1026.43 of title 12, Code
of Federal Regulations, on small dollar mortgage
originations.
(2) Rulemaking.--Following the evaluation required under
paragraph (1), the Director of the Bureau of Consumer
Financial Protection may initiate rulemaking to amend the
limitations with respect to points and fees under section
1026.43 of title 12, Code of Federal Regulations, or any
successor regulation, to encourage additional lending for
small dollar mortgages.
SEC. 5403. 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;
[[Page S5275]]
``(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, so long as 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 under paragraph (3)(C).
(2) Compliance with verifiable education and competency
requirements.--On and after the effective date under
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
under subparagraphs (A) and (B) of section 202(g)(5) of such
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 take 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 shall--
(A) implement the amendments made by paragraph (1);
(B) clearly set 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) take 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, details'';
(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 ``or licensed'' and
inserting ``, 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 a State certified appraiser assisted by a trainee shall
be liable for final 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, nonprofit organizations, and institutions
of higher education 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.''.
(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. 5404. 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 shall 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 shall be able to
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;
[[Page S5276]]
``(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; or
``(V) 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, as determined by the
Secretary, and not fewer than once per year.
``(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 18 months after the date of
enactment of this subsection, 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 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 of time.
``(10) Study.--Not later than 8 years after the date the
Secretary selects eligible entities to participate in the
pilot program under this subsection, the Secretary shall
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) Authorization of appropriations.--
``(A) In general.--There is authorized to be appropriated
to the Secretary for fiscal year 2026 such sums as may be
necessary--
``(i) for technical assistance related to implementation of
the pilot program; and
``(ii) to carry out an evaluation of the pilot program
under paragraph (10).
``(B) Availability.--Any amounts appropriated under this
subsection shall remain available until expended.''.
SEC. 5405. 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)), as amended by section 101(a) of the Housing
Opportunity Through Modernization Act of 2016 (Public Law
114-201; 130 Stat. 783), 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 financed by a
person who received a low-income housing tax credit under
section 42 of the Internal Revenue Code of 1986 in exchange
for that financing;
``(II) the dwelling unit was physically inspected and
passed inspection as part of the low-income housing tax
credit 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).
``(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 subtitle, the
Secretary may allow a grantee to conduct a remote or video
inspection of a unit.
``(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. 5501. REFORMING DISASTER RECOVERY ACT.
(a) Definitions.--In this section:
[[Page S5277]]
(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, in the Office
of the Secretary, 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 the Office of
Community Planning and Development 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 paragraph (1)(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).
(7) Authorization of appropriations.--There are authorized
to be appropriated to the Fund such sums as may be necessary
to respond to current or future major disasters declared
under section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5179) for grants
under section 124 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) inserting ``States for use in nonentitlement areas and
to'' before ``metropolitan cities''; and
(iii) 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
[[Page S5278]]
(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 501(c) of the Renewing Opportunity in the American
Dream to Housing Act of 2025 (hereinafter 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, the Secretary shall
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)(1); 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)(2).
``(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
[[Page S5279]]
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
[[Page S5280]]
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
[[Page S5281]]
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), as amended by section 1210 of the Disaster
Recovery Reform Act of 2018 (division D of Public Law 115-
254), 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 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 Act and the
amendments made by this Act 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
[[Page S5282]]
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.--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--
(A) 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;
(B) the Secretary publishes intent to disclose data in the
Federal Register;
(C) notwithstanding subparagraphs (A) and (B), 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.
SEC. 5502. HOME INVESTMENT PARTNERSHIPS REAUTHORIZATION AND
IMPROVEMENT 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. There is authorized such sums as may be
necessary to carry out subtitle A.''.
(b) Increase in Program Administration Resources.--Subtitle
A of title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12741 et seq.) is amended--
(1) in section 212(c) (42 U.S.C. 12742(c)), by striking
``10 percent'' and inserting ``15 percent''; and
(2) in section 220(b) (42 U.S.C. 12750(b))--
(A) by striking ``Recognition.--'' and all that follows
through ``A contribution'' and inserting the following:
``Recognition.--A contribution''; and
(B) by striking paragraph (2).
(c) 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 by striking ``Limitation.--Unless otherwise
specified'' and inserting the following: "Limitations.-- ``
``(A) Removal of participating jurisdictions from
reallocation.--The Secretary may, upon a finding that such
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''.
(d) Amendments to Qualification as Affordable Housing.--
Section 215 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(E), by striking all that follows
``purposes of this Act,'' and inserting the following:
``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
(B) by adding at the end the following:
``(7) Small-scale housing.--
``(A) Definition.--In this paragraph, the term `small-scale
housing' means housing with not more than 4 rental units.
``(B) Alternative requirements.--Small-scale housing shall
qualify as affordable housing under this title if--
``(i) the housing bears rents that comply with paragraph
(1)(A);
``(ii) each unit is occupied by a household that qualifies
as a low-income family;
``(iii) the housing complies with paragraph (1)(D);
``(iv) the housing meets the requirements under paragraph
(1)(E); and
``(v) the participating jurisdiction monitors ongoing
compliance of the housing with requirements of this title in
a manner consistent with the purposes of section 226(b), as
determined by the Secretary.''; and
(2) in subsection (b)(1), by inserting ``(defined as the
amount borrowed by the homebuyer to purchase the home, or
estimated value after rehabilitation, which may be adjusted
to account for the limits on future value imposed by the
resale restriction)'' after ``purchase price''.
(e) Elimination of Commitment Deadline.--
(1) In general.--Section 218 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12748) is
amended--
(A) by striking subsection (g); and
(B) by redesignating subsection (h) as subsection (g).
(2) Conforming amendment.--Section 218(c) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12748(c))
is amended--
(A) in paragraph (1), by adding ``and'' at the end;
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and
(D) in paragraph (2), as so redesignated, by striking
``section 224'' and inserting ``section 223''.
(f) Reform of Homeownership Resale Restrictions.--Section
215 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12745), as amended by this section, 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) by striking paragraph (3);
(C) by redesignating paragraphs (1), (2), and (4) as
subparagraphs (A), (B), and (D), respectively, and adjusting
the margins accordingly;
(D) by inserting after subparagraph (B), as so
redesignated, the following:
``(C) 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'';
(E) by striking ``Housing that is for homeownership'' and
inserting the following:
``(1) Qualification.--Housing that is for homeownership'';
and
(F) by adding at the end the following:
``(2) Purchase by community land trust.--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
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 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, subject to
enforcement by the participating jurisdiction of all
applicable requirements of this subtitle, 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).
``(3) Suspension or waiver of requirements for military
members.--A participating jurisdiction, in accordance with
terms established by the Secretary, may suspend or waive a
requirement under paragraph (1)(B) with respect to housing
that otherwise meets the criteria under paragraph (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(d) 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
[[Page S5283]]
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.
``(4) Suspension or waiver of requirements for heir or
beneficiary of deceased owner.--Notwithstanding subparagraph
(C) of paragraph (1), housing that meets the criteria under
that paragraph prior to the death of an owner may continue to
qualify as affordable housing 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.''.
(g) Home Property Inspections.--Section 226(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12756(b)) is amended--
(1) by striking ``Each participating jurisdiction'' and
inserting the following:
``(1) In general.--Each participating jurisdiction''; and
(2) by striking ``Such review shall include'' and all that
follows and inserting the following:
``(2) On-site 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 on-site 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 on-site 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).''.
(h) 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--
(1) in the heading, by striking ``penalties for misuse of
funds'' and inserting ``program enforcement and penalties for
noncompliance'';
(2) 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,'';
(3) in paragraph (2), by striking ``or'' at the end;
(4) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(5) 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 which were not expended in accordance with this
title.''.
(i) Tenant and Participant Protections for Small-scale
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) Tenant Selection for Small-scale Housing.--Paragraphs
(2) through (4) of subsection (d) shall not apply to the
owner of small-scale housing (as defined in section
215(a)(7)).''.
(j) Modification of Rules Related to Community Housing
Development Organizations.--
(1) Definitions of community housing development
organization and community land trust.--
(A) In general.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) is
amended--
(i) in paragraph (6)(B)--
(I) by striking ``significant''; and
(II) by striking ``and otherwise'' and inserting ``or as
otherwise determined acceptable by the Secretary''; and
(ii) by adding at the end the following:
``(26) The term `community land trust' means a nonprofit
entity or a State or local government or instrumentality
thereof that--
``(A) is not managed by, or an affiliate of, a for-profit
organization;
``(B) has as a primary purpose acquiring, developing, or
holding land to provide housing that is permanently
affordable to low- and moderate-income persons, and monitors
properties to ensure affordability is preserved;
``(C) provides housing described in subparagraph (B) using
a ground lease, deed covenant, or other similar legally
enforceable measure, as determined by the Secretary, that--
``(i) keeps the 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 homeownership; and
``(D) maintains preemptive purchase options to purchase the
property so the housing remains affordable to low-and
moderate-income persons.''.
(B) Elimination of existing definition of community land
trust.--Section 233 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12773) is amended by
striking subsection (f).
(2) Set-aside for community housing development
organizations.--Section 231 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12771) is amended--
(A) in subsection (a), 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 such housing, as determined by
the Secretary'';
(B) by striking subsection (b) and inserting the following:
``(b) Recapture and Reuse.--If any funds reserved under
subsection (a) remain uninvested for a period of 24 months,
then 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 the funds.''; and
(C) by striking subsection (c).
(k) Technical Corrections.--The Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) 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);
(2) in section 105(b) (42 U.S.C. 12705(b))--
(A) in paragraph (7), by striking ``Stewart B. McKinney
Homeless Assistance Act'' and inserting ``McKinney-Vento
Homeless Assistance Act''; and
(B) in paragraph (8), by striking ``subparagraphs'' and
inserting ``paragraphs'';
(3) in section 106 (42 U.S.C. 12706), by striking ``Stewart
B. McKinney Homeless Assistance Act'' and inserting
``McKinney-Vento Homeless Assistance Act'';
(4) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by
striking ``section 105(b)(15)'' and inserting ``section
105(b)(18)'';
(5) in section 212 (42 U.S.C. 12742)--
(A) in subsection (a)--
(i) in paragraph (3)(A)(ii), by inserting ``United States''
before ``Housing Act''; and
(ii) by redesignating paragraph (5) as paragraph (4);
(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'';
(6) in section 215(a)(6)(B) (42 U.S.C. 20 12745(a)(6)(B)),
by striking ``grand children'' and inserting
``grandchildren'';
(7) 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)--
(i) in paragraph (1)--
(I) in the first sentence of subparagraph (A)--
(aa) by striking ``in regulation'' and inserting ``, by
regulation,''; and
(bb) by striking ``eligible jurisdiction'' and inserting
``eligible jurisdictions''; and
(II) in subparagraph (F)--
(aa) in the first sentence--
(AA) in clause (i), by striking ``Subcommittee on Housing
and Urban Affairs'' and inserting ``Subcommittee on Housing,
Transportation, and Community Development''; and
(BB) 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''; and
(bb) in the second sentence, by striking ``the Committee on
Banking, Finance and Urban Affairs of the House of
Representatives'' and inserting ``the Committee on Financial
Services of the House of Representatives'';
(ii) in paragraph (2)(B), by striking ``$500,000'' each
place that term appears and inserting ``$750,000'';
(iii) in paragraph (3)--
(I) by striking ``$500,000'' each place that term appears
and inserting ``$750,000''; and
(II) by striking ``, except as provided in paragraph (4)'';
and
(iv) by striking paragraph (4);
(8) 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
[[Page S5284]]
(C) by redesignating paragraphs (6), (7), and (8) as
paragraphs (5), (6), and (7), respectively;
(9) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by
striking ``for'' the first place that term appears; and
(10) in section 283 (42 U.S.C. 12833)--
(A) in subsection (a), by striking ``Banking, Finance and
Urban Affairs'' and inserting ``Financial Services''; and
(B) in subsection (b), by striking ``General Accounting
Office'' each place that term appears and inserting
``Government Accountability Office''.
SEC. 5503. 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) of the
Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C.
3702(2)) is amended--
(A) in subparagraph (D), by striking ``and'' at the end;
(B) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(F) section 514, 515, or 538 of the Housing Act of 1949
(42 U.S.C. 1484, 1485, 1490p).''.
(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) Authorization of Appropriations for Staffing and IT
Upgrades.--There is authorized to be appropriated to the
Secretary of Agriculture for each of fiscal years 2026
through 2030 such sums as may be necessary for increased
staffing needs and information technology upgrades to support
all Rural Housing Service programs.
(d) Funding for Technical Improvements.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of Agriculture such sums
as may be necessary for fiscal year 2026 for 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
use 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
[[Page S5285]]
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 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) Authorization of Appropriations.--There is authorized
to be appropriated for the program under this section such
sums as may be necessary for each of fiscal years 2026
through 2030.
``(j) Rulemaking.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Renewing Opportunity in the American
Dream to Housing Act of 2025, 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 Renewing Opportunity in the American
Dream to Housing Act of 2025, 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
assistance 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'';
(2) by inserting ``Not less than 60 percent of loan funds
made available under this section shall be reserved and made
available for very low-income applicants.'' after the first
sentence; and
(3) 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 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 $250,000.
``(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
[[Page S5286]]
(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)(10) of the Housing Act of 1949 (42 U.S.C.
1472(h)(10)) is amended to read as follows:
``(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.''.
(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;
(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 Renewing
Opportunity in the American Dream to Housing Act of 2025; and
``(ii) if the property that is the subject of the loan was
constructed before the date of enactment of the Renewing
Opportunity in the American Dream to Housing Act of 2025.''.
(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. 5504. 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 paragraph (2), 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 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) Exceptions.--Under paragraph (1), the Secretary may not
grant waivers 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.
(3) 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.
[[Page S5287]]
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 10 shall administer 1,000 or fewer
aggregate housing vouchers and public housing units, not more
than 6 shall administer between 1,001 and 6,000 aggregate
housing vouchers and public housing units, and not more than
4 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, 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.--
[[Page S5288]]
(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.--Annually, 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 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 year such flexibilities were
adopted or approved.
SEC. 5505. REDUCING HOMELESSNESS THROUGH PROGRAM REFORM ACT.
(a) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs of
the Senate; and
(B) the Committee on Financial Services of the House of
Representatives.
(2) At risk of homelessness.--The term ``at risk of
homelessness'' has the meaning given the term in section 401
of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11360).
(3) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(4) Homeless.--The term ``homeless'' has the meaning given
the term in section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302).
(5) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 3(b) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(6) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of Housing and Urban
Development.
(b) Administrative Costs for the Emergency Solutions Grants
Program.--Section 418 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11378) is amended by striking ``7.5
percent'' and inserting ``10 percent''.
(c) Amendments to the Continuum of Care Program.--
(1) In general.--Subtitle C of title IV of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) is
amended--
(A) in section 402(g) (42 U.S.C. 11360a(g))--
(i) by redesignating paragraph (2) as paragraph (3); and
(ii) by inserting after paragraph (1) the following:
``(2) Time limit on designation.--The Secretary--
``(A) shall accept applications for designation as a
unified funding agency annually or biennially, which
designation shall be effective for not more than 2 years; and
``(B) may, on an annual or biennial basis, renew any
designation under subparagraph (A).'';
(B) in section 422 (42 U.S.C. 11382)--
(i) in subsection (b)--
(I) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), the
Secretary''; and
(II) by adding at the end the following:
``(2) 2-year notification.--Subject to the availability of
appropriations, the Secretary may issue a notification of
funding availability for grants awarded under this subtitle
that provides funding for 2 successive fiscal years, which
shall--
``(A) award funds for the second year of projects,
including adjustments under subsection (f), unless the
project is underperforming, as determined by the
collaborative applicant, and the collaborative applicant
applies to replace the project with a new project; and
``(B) include--
``(i) the method for applying for and awarding projects to
replace underperforming projects in year 2;
``(ii) the method for applying for and awarding renewals of
expiring grants for projects that were not eligible for
renewal in the first fiscal year;
``(iii) the method for allocating any amounts in the second
fiscal year that are in excess of the amount needed to fund
the second fiscal year of all grants awarded in the first
fiscal year;
``(iv) the method of applying for and awarding grants,
which are 1-year transition grants awarded by the Secretary
to project sponsors for activities under this subtitle to
transition from 1 eligible activity to another eligible
activity if the recipient--
``(I) has the consent of the continuum of care; and
``(II) meets standards determined by the Secretary;
``(C) announce by notice the award of second fiscal year
funding and awards for new and renewal projects; and
``(D) identify the process by which the Secretary may
approve replacement of a collaborative applicant that is not
a unified funding agency to receive the award in the second
fiscal year.'';
(ii) in subsection (c)(2)--
(I) by striking ``(A) In general.--Except as provided in
subparagraph (B), the Secretary'' and inserting ``The
Secretary''; and
(II) by striking subparagraph (B); and
(iii) in subsection (e), by striking ``1 year'' and
inserting ``2 years'';
(C) in section 423(a) (42 U.S.C. 11383)--
(i) in paragraph (4), in the third sentence--
(I) by striking ``, at the discretion of the applicant and
the project sponsor,''; and
(II) by inserting ``not more than'' before ``15 years'';
(ii) in paragraph (7), in the matter preceding subparagraph
(A), by inserting ``payment of not more than 6 months of
arrears for rent and utility expenses,'' after ``moving
costs,''; and
(iii) in paragraph (10), by striking ``3 percent'' and
inserting ``the greater of either $70,000 or 5 percent'';
(D) in section 425 (42 U.S.C. 11385), by adding at the end
the following:
``(f) Adjustment of Costs.--Not later than 1 year after the
date of enactment of this subsection, and on a biennial basis
thereafter, the Comptroller General of the United States--
``(1) shall study the hiring, retention, and compensation
levels of the workforce providing the services described in
subsection (c), including executive directors, case managers,
and frontline staff, and examine whether low compensation is
undermining program effectiveness;
``(2) shall submit to the appropriate congressional
committees a report on any findings, and to the Secretary any
recommendations, as the Comptroller General considers
appropriate regarding funding levels for the cost of the
supportive services and the staffing to provide the services
described in subsection (c); and
``(3) in carrying out the study under paragraph (1), may
reference the Consumer Price Index or other similar
surveys.'';
(E) in section 426 (42 U.S.C. 11386), by adding at the end
the following:
``(h) Inspections.--When complying with inspection
requirements for a housing unit provided to a homeless
individual or family using assistance under this subtitle,
the Secretary may allow a grantee to--
``(1) conduct a pre-inspection not more than 60 days before
leasing the unit;
``(2) if the unit is located in a rural or small area,
conduct a remote or video inspection of a unit; and
``(3) allow the unit to be leased prior to completion of an
inspection if the unit passed an alternative Federal
inspection within the preceding 12-month period, so long as
the unit is inspected not later than 15 days after the start
of the lease.''; and
(F) in section 430 (42 U.S.C. 11386d), by adding at the end
the following:
``(d) Costs Paid by Program Income.--With respect to grant
amounts awarded under this subtitle, costs paid by the
program income of a grant recipient may count toward the
contributions required under subsection (a) if the costs--
``(1) are eligible expenses under this subtitle;
``(2) meet standards determined by the Secretary; and
``(3) supplement activities carried out by the recipient
under this subtitle.''.
(2) Other modifications.--
(A) Definitions.--In this paragraph--
(i) the terms ``collaborative applicant'' and ``eligible
entity'' have the meanings given those terms in section 401
of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11360); and
(ii) the terms ``Indian tribe'' and ``tribally designated
housing entity'' have the meanings given those terms in
section 4 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103).
(B) Nonapplication of civil rights laws.--With respect to
the funds made available for the Continuum of Care program
authorized under subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11381 et seq.) under the
heading ``Homeless Assistance Grants'' in the Department of
Housing and Urban Development Appropriations Act, 2021
(Public Law 116-260) and under section 231 of the Department
of Housing and Urban Development Appropriations Act, 2020 (42
U.S.C. 11364a), title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.) and title VIII of the Civil Rights Act
of 1968 (42 U.S.C. 3601 et seq.) shall not apply to
applications by or awards for projects to be carried out--
(i) on or off reservation or trust lands for awards made to
Indian tribes or tribally designated housing entities; or
(ii) on reservation or trust lands for awards made to
eligible entities.
(C) Certification.--With respect to funds made available
for the Continuum of Care program authorized under subtitle C
of title IV of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11381 et seq.) under the heading ``Homeless Assistance
Grants'' under section 231 of the Department of Housing and
Urban Development Appropriations Act, 2020 (42 U.S.C.
11364a)--
(i) applications for projects to be carried out on
reservations or trust land shall contain a certification of
consistency with an approved Indian housing plan developed
under section 102 of the Native American Housing Assistance
and Self-Determination Act (25 U.S.C. 4112), notwithstanding
section 106 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12706) and section 403 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361);
(ii) Indian tribes and tribally designated housing entities
that are recipients of
[[Page S5289]]
awards for projects on reservations or trust land shall
certify that they are following an approved housing plan
developed under section 102 of the Native American Housing
Assistance and Self-Determination Act (25 U.S.C. 4112); and
(iii) a collaborative applicant for a Continuum of Care
whose geographic area includes only reservation and trust
land is not required to meet the requirement in section
402(f)(2) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11360a(f)(2)).
(d) Amendments to the Housing Choice Voucher Program.--
Section 8(o)(5) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)(5)) is amended by adding at the end the
following:
``(C) Exceptions.--Notwithstanding subparagraph (A)--
``(i) a public housing agency may accept a third party
income calculation and verification of family income for
purposes of this subsection if--
``(I) the calculation and verification was completed for
determination of income eligibility for a Federal program or
service during the preceding 12-month period; and
``(II) there has been no change in income or family
composition since the calculation and verification under
clause (i); and
``(ii) when using prior year income under section
3(a)(7)(B), a public housing agency shall use the income of
the family as determined by the agency or owner for the prior
calendar year or another 12-month period ending during the
preceding 12 months, taking into consideration any
redetermination of income between the start of such prior
calendar year or other 12-month period and the date of the
annual review.'';
(e) Improving Coordination Between Health Care Systems and
Supportive Services.--Not later than 180 days after the date
of enactment of this Act, the Secretary of Health and Human
Services and the Secretary shall seek to enter into an
agreement with the National Academies of Sciences,
Engineering, and Medicine to conduct and submit to the
appropriate congressional committees an evidence-based,
nonpartisan analysis that--
(1) reviews the research on linkages between access to
affordable health care and homelessness and analyzes the
effect of greater coordination and partnerships between
health care organizations, mental health and substance use
disorder and substance use disorder service providers, and
housing service providers, including possible cost-savings
from providing greater access to health services, recovery
housing, or housing-related supportive services for
individuals experiencing chronic homelessness and other types
of homelessness; and
(2) includes policy and program recommendations for
improving access to health care and housing, health care and
housing outcomes, possible cost-savings and efficiencies, and
best practices.
(f) Demonstration Authority.--
(1) In general.--Subtitle A of title IV of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11360 et seq.) is
amended by adding at the end the following:
``SEC. 409. DEMONSTRATION AUTHORITY.
``(a) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
``(B) the Committee on Financial Services of the House of
Representatives.
``(2) Health care organization.--The term `health care
organization' means an entity providing medical or mental and
behavioral health care, including--
``(A) a hospital (as defined in section 1861(e) of the
Social Security Act (42 U.S.C. 1395x(e)));
``(B) a Federally-qualified health center (as defined in
section 1905(l)(2) of the Social Security Act (42 U.S.C.
1396d(l)(2))) or another community health center eligible to
receive a grant under section 330 of the Public Health
Service Act (42 U.S.C. 254b); and
``(C) a licensed or certified provider of evidence-based
substance use disorder services or mental health services
providing such services pursuant to funding under a block
grant for substance use prevention, treatment, and recovery
services or a block grant for community mental health
services under subpart II or subpart I, respectively, of part
B of title XIX of the Public Health Service Act (42 U.S.C.
300x et seq.).
``(3) Housing provider.--The term `housing provider' means
an entity, including a grant recipient under subtitle B or C
of this title, a public housing agency (as defined in section
3 of the United States Housing Act of 1937 (42 U.S.C.
1437a)), or a federally funded organization or a nonprofit
organization, that administers a program to provide housing
services to individuals experiencing or at risk of
homelessness, including rapid re-housing, transitional
housing, housing choice vouchers, and housing-related
supportive services.
``(b) Authority.--The Secretary may establish demonstration
projects or partnerships that involve collaboration between
housing providers and healthcare organizations to provide
housing-related supportive services, including--
``(1) assistance in coordinating data systems in a manner
that is compliant with the Health Insurance Portability and
Accountability Act (Public Law 104-191); and
``(2) projects or partnerships that are aimed at serving
individuals--
``(A) who are homeless, chronically homeless, or at risk of
homelessness; and
``(B) with--
``(i) a high-use of emergency services or emergency
departments;
``(ii) chronic disabilities, including physical health or
mental health conditions;
``(iii) substance use disorders;
``(iv) serious mental illness; or
``(v) other severe service needs.
``(c) Report.--Not later than 2 years after the date of
enactment of this Act, and every 4 years thereafter, the
Secretary shall submit to the appropriate congressional
committees a report on each demonstration project or
partnership established under this section.''.
(2) Technical and conforming amendment.--The table of
contents in section 101(b) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11301 note) is amended by inserting
after the item relating to section 408 the following:
``Sec. 409. Demonstration authority.''.
(g) Streamlining Coordinated Entry.--
(1) Audit by the comptroller general.--Not later than 1
year after the date of enactment of this Act, the Comptroller
General of the United States shall--
(A) conduct a multi-community evaluation of the operations
of coordinated assessment systems by the Continuum of Care
Program under subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11381 et seq.) program to
examine the efficiency, accuracy, and outcomes of those
operations; and
(B) submit to the appropriate congressional committees on
any findings and to the Secretary on any recommendations, as
the Comptroller General considers appropriate, for a more
effective and efficient coordinated entry process.
(2) Assessments.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall--
(A) evaluate the coordinated assessment processes under the
Continuum of Care Program under subtitle C of title IV of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et
seq.), which shall include--
(i) a request for information from continuums of care about
coordinated entry tools, processes, barriers, documentation
barriers, and necessary guidance;
(ii) incorporation of findings from relevant reports and
demonstrations of the Department, including the report
described in paragraph (1); and
(iii) consultation with organizations with expertise in
providing health care to people experiencing homelessness on
best practices in assessment tools for prioritizing resources
and characterizing chronic homelessness and people
experiencing homelessness with high-service needs;
(B) issue an updated notice, which shall include guidance--
(i) on effective assessment processes that remove barriers,
streamline access, allow for coordination with public housing
agencies, include trauma-informed data collection practices,
improve accuracy, address needs for underserved groups, and
successfully rehouse homeless individuals;
(ii) that includes all key populations and subpopulations,
including consideration for age, family status, health
status, or other factors, access points, prioritization, and
programs and systems serving individuals experiencing
homelessness; and
(iii) that allows for local flexibility and tailoring based
on the needs and resources within the specific community; and
(C) establish a timely, periodic procedure to request
feedback on coordinated assessment and update the guidance,
which may include conducting a request for information not
less frequently than once every 5 years.
(h) Improving Targeted Data Collection, Funding, and
Coordination.--The Secretary shall--
(1) issue not less than 1 request for information on--
(A) improving data collection, including through the use of
the Homeless Management Information System or other data
systems;
(B) coordination and use of data between housing and
homelessness providers and physical, mental, and behavioral
health organizations, substance use treatment providers, and
the Department of Veterans Affairs for implementation of
programs to provide services for people experiencing or at
risk of homelessness, including the chronically homeless; and
(C) the potential benefits and risks of using artificial
intelligence models for the purpose of improving program
coordination and effectiveness and assessing the
effectiveness of interventions to house individuals
experiencing or at risk of homelessness, including by sub-
populations;
(2) consider providing incentives to improve data
collection, enhance the use of the Homeless Management
Information System, implement community information
exchanges, and strengthen the coordination of data from
physical, mental, and behavioral health organizations with
housing and homelessness providers, in order to target
resources for housing, outreach, homelessness prevention, and
housing-related supportive services for homeless individuals,
or chronically homeless individuals; and
(3) coordinate with the Secretary of the Department of
Veterans Affairs to improve coordination between data systems
for vouchers provided under section 8(o)(19) of the United
States Housing Act of 1937 (42
[[Page S5290]]
U.S.C. 1437f(o)(19)), the Homeless Management Information
System, and any other applicable homeless program supported
by the Department of Veterans Affairs.
(i) Rule of Construction.-- Nothing in this section or the
amendments made by this section shall be construed to limit
the authority of the Secretary to provide flexibility under
housing laws in effect as of the date of enactment of this
Act. The flexibilities and waivers authorized under this
section and the amendments made by this section shall not
replace or result in the termination of other flexibilities
and waivers that the Secretary is authorized to exercise.
SEC. 5506. 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 of the
spending cap established pursuant to section 415(b) for
amounts provided between fiscal years 2026 through 2029.
``(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 Annual Performance and
Evaluation Report of the recipient.
``(iv) Any public input solicited under subparagraph
(B)(ii).
``(B) Notification.--Each recipient shall--
``(i) notify all subrecipients, including local continuums
of care, 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 submitted under subparagraph (A) by
a recipient that relocates or threaten to relocates
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 each of fiscal years 2026 through
2029 unless the recipient notifies the Secretary in writing
that the recipient wishes to revoke the waiver.
``(B) Notification.--If a recipient revokes a waiver under
subparagraph (A), the recipient shall solicit input from
subrecipients regarding the revocation and provide a
justification for the revocation.
``(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.''.
TITLE VI--VETERANS AND HOUSING
SEC. 5601. VA HOME LOAN AWARENESS ACT.
(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 disclaimer below the
military service question 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 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. 5602. 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 inserting ``(i)'' after ``loan-to-value ratio''; and
(B) by inserting before the semicolon the following: ``,
and (ii) in connection with a loan guaranteed or insured
under chapter 37 of title 38, United States Code, assuming
prevailing interest rates''.
(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; 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.
SEC. 5603. 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, except that this exclusion shall not apply to income
in the definition of 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 the 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) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(B) Department property.--The term ``Department property''
has the meaning given the term in section 901 of title 38,
United States Code.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
SEC. 5701. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM
HOUSING REGULATORS.
(a) HUD Programs.--The Department of Housing and Urban
Development Act (42 U.S.C. 3531 et seq.) is amended by adding
at the end the following:
``SEC. 15. ANNUAL TESTIMONY.
``The Secretary shall, on an annual basis, testify before
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives on the status of all programs carried out
by the Department, at the request of the relevant
committee.''.
(b) Government Guaranteed or Insured Mortgages.--On an
annual basis, the following individuals shall testify before
the appropriate committees of Congress with respect to
mortgage loans made, guaranteed, or insured by the Federal
Government:
(1) The President of the Government National Mortgage
Association.
(2) The Federal Housing Commissioner.
(3) The Administrator of the Rural Housing Service.
(4) The Executive Director of the Loan Guaranty Service of
the Department of Veterans Affairs.
(5) The Director of the Federal Housing Finance Agency.
(c) Mortgagee Review Board.--Section 202(c)(8) of the
National Housing Act (12 U.S.C. 1708(c)(8)) is amended--
(1) by striking ``, in consultation with the Federal
Housing Administration Advisory Board,''; and
(2) by inserting ``and to Congress'' after ``the
Secretary''.
SEC. 5702. FHA REPORTING REQUIREMENTS ON SAFETY AND
SOUNDNESS.
(a) Monthly Reporting on Mutual Mortgage Insurance Fund
Capital Ratio.--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--
[[Page S5291]]
``(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).''.
(b) Annual Independent Actuarial Study.--Section 202(a)(4)
of the National Housing Act (12 U.S.C. 1708(a)(4)) is
amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(A) Definition.--In this paragraph, the term `first-time
homebuyer' means a borrower for whom no consumer report (as
defined in section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a)) indicates that the borrower has or had a loan
with a consumer purpose that is secured by a 1- to 4-unit
residential real property.
``(B) Study and report.--The Secretary''; and
(2) in subparagraph (B), as so designated, by striking
``also'' and inserting ``detail how many loans were
originated in each census tract to first-time homebuyers, as
well as''.
(c) Annual Report.--Section 203(w)(2) of the National
Housing Act (12 U.S.C. 1709(w)(2)) is amended by inserting
``and first-time homebuyers (as defined in section
202(a)(4)(A))'' after ``minority borrowers''.
(d) GAO Study on Sustainable Homeownership.--Not later than
180 days 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--
(1) the value for the Federal Housing Administration of
defining what is sustainable homeownership in a way that
considers borrower default, refinancing of a mortgage that is
not insured by the Federal Housing Administration, the
Department of Veterans Affairs, or Rural Housing Service,
paying off a mortgage loan and transitioning back to renting,
and other factors that demonstrate whether insurance provided
under title II of the National Housing Act (12 U.S.C. 1707 et
seq.) has successfully served a borrower, including for
first-time homebuyers for whom no consumer report (as defined
in section 603 of the Fair Credit Reporting Act (15 U.S.C.
1681a)) indicates that the borrower has or had a loan with a
consumer purpose that is secured by a 1- to 4-unit
residential real property; and
(2) the feasibility of the Federal Housing Administration
developing a scorecard using the metrics described in
paragraph (1) to measure borrower performance and reporting
the scorecard data to Congress.
SEC. 5703. 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 ``Renewing
Opportunity in the American Dream to Housing Act''; and
(B) by striking ``update such plan annually'' and inserting
the following: "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
(6) by adding at the end the following:
``(15) testify annually before Congress.''.
SEC. 5704. NEIGHBORWORKS ACCOUNTABILITY ACT.
(a) In General.--Section 415(a)(1)(A) of title 5, United
States Code, is amended by inserting ``the Neighborhood
Reinvestment Corporation,'' after ``the Postal Regulatory
Commission,''.
(b) Duties and Audits.--The Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8101 et seq.) is amended--
(1) in section 606 (42 U.S.C. 8105), by adding at the end
the following:
``(e)(1) There is authorized to be appropriated to the
Office of Inspector General of the corporation established
under section 415 of title 5, United States Code, such sums
as may be necessary to carry out this Act.
``(2) There shall not be transferred to the Office of
Inspector General of the corporation any program operating
responsibilities of the corporation, including the
organizational assessments work and grantee oversight
function of the corporation.''.
(c) Independent Audit.--Section 607 of the Neighborhood
Reinvestment Corporation Act (42 U.S.C. 8106) is amended by
striking subsection (b) and inserting following:
``(b)(1) The accounts of the corporation shall be audited
annually by an independent external auditor.
``(2) Notwithstanding any other audit work performed by the
Office of Inspector General of the corporation, the audits
required under paragraph (1) shall be conducted in accordance
with generally accepted auditing standards by independent
certified public accountants who are certified by a
regulatory authority of the jurisdiction in which the audit
is undertaken.''.
SEC. 5705. APPRAISAL MODERNIZATION ACT.
(a) Reconsideration of Value.--
(1) In general.--Section 129E of the Truth In Lending Act
(15 U.S.C. 1639e) is amended--
(A) by redesignating subsections (j) and (k) as subsections
(k) and (l), respectively; and
(B) by inserting after subsection (i) the following:
``(j) Consumer Right to Reconsideration of Value or
Subsequent Appraisal.--
``(1) Definitions.--In this section:
``(A) Unacceptable appraisal practice.--The term
`unacceptable appraisal practice' means an appraisal report
that--
``(i) uses unsupported or subjective terms to assess or
rate the property without providing a foundation for analysis
and contextual information;
``(ii) uses inaccurate or incomplete data about the subject
property, the neighborhood, the market area, or any
comparable property;
``(iii) includes references, statements or comparisons
about crime rates or crime statistics, whether objective or
subjective;
``(iv) relies in the appraisal analysis on comparable
properties that were not personally inspected by the
appraiser when required by the appraisal's scope of work;
``(v) relies in the appraisal analysis on inappropriate
comparable properties;
``(vi) fails to use comparable properties that are more
similar, or nearer, to the subject property without adequate
explanation;
``(vii) uses comparable property data provided by any
interested party to the transaction without verification by a
disinterested party;
``(viii) uses inappropriate adjustments for differences
between the subject property and the comparable properties
that do not reflect the market's reaction to such
differences; or
``(ix) fails to make proper adjustments, including time
adjustments for differences between the subject property and
the comparable properties when necessary.
``(B) Unsupported.--The term `unsupported' means, with
respect to an appraisal report or an appraiser's opinion of
value, that the appraisal report or the opinion of value is
not supported by relevant evidence and logic.
``(2) Review.--In connection with a consumer credit
transaction secured by a consumer's principal dwelling, a
creditor shall have a review and resolution procedure for a
consumer-initiated reconsideration of value or subsequent
appraisal that complies with the following requirements:
``(A) The creditor shall complete its own appraisal review
before delivering the appraisal to the consumer.
``(B) The creditor shall have policies and procedures that
provide the consumer with a process to submit 1 request for a
reconsideration of value and subsequent appraisal prior to
the loan closing or within 60 calendar days of denial of a
credit application if the consumer believes the appraisal
report may be unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination.
``(C) At the time of application and upon delivery of the
appraisal report to the consumer, the creditor shall provide
a written disclosure to the consumer describing the process
for requesting a reconsideration of value or subsequent
appraisal, which written disclosure shall include a
standardized format for the consumer to submit the request
for a reconsideration of value, including--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of why the consumer believes the
appraisal report may be unsupported, may be deficient due to
an unacceptable appraisal practice, or may reflect
discrimination;
``(vii) any additional information, data, including not
more than 5 alternative comparable properties and the related
data sources that the consumer would like the appraiser to
consider; and
``(viii) an explanation of why the new information, data,
or comparable properties support the reconsideration of
value.
``(D) The creditor shall obtain the necessary information
from the consumer if the consumer's request for
reconsideration of value or subsequent appraisal is unclear
or requires more information.
``(E) The creditor shall have a standardized format to
communicate the reconsideration of value to the appraiser,
which format shall include--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of any area of the appraisal report
that may be unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination;
``(vii) any additional information, data, including not
more than 5 alternative comparable properties and the related
data sources that the consumer would like the appraiser to
consider;
``(viii) an explanation of why the new information, data,
or comparable properties support the reconsideration of
value;
``(ix) a definition of turn-time expectations for the
appraiser to communicate the reconsideration of value results
back to the creditor;
[[Page S5292]]
``(x) instructions for delivering the reconsideration of
value response as part of a revised appraisal report that
includes commentary on conclusions regardless of the outcome;
and
``(xi) a reference for appraisers on how to correct minor
appraisal issues or non-material errors not related to the
reconsideration of value process.
``(3) Subsequent appraisal and referral.--
``(A) In general.--If the creditor identifies material
deficiencies in the appraisal report that are not corrected
or addressed by the appraiser upon request of the creditor,
including through a consumer-initiated reconsideration of
value, or if there is evidence of unsupported or unacceptable
appraisal practices, the creditor shall--
``(i) at the request of the consumer, order a subsequent
appraisal at the creditor's own expense; and
``(ii) forward the appraisal report and the creditor's
summary of findings to the appropriate appraisal licensing
agency or regulatory board.
``(B) Discrimination.--If the creditor has reason to
believe that an appraisal report reflects discrimination, the
creditor shall--
``(i) order a subsequent appraisal, at the creditor's own
expense;
``(ii) forward the appraisal report and the creditor's
summary of findings to the appropriate local, State, or
Federal enforcement agency; and
``(iii) upon a final determination of discrimination by the
appropriate local, State, or Federal enforcement agency,
receive a reimbursement from the appraiser covering the cost
of the subsequent appraisal ordered by the creditor.
``(C) Definition.--
``(i) In general.--Except as provided in clause (ii), in
this paragraph, the term `reason to believe' means that the
creditor has reviewed the applicable law and available
evidence and determined that a potential violation of Federal
or state antidiscrimination law exists. The available
evidence may include the appraisal report, loan files,
written communications, credible observations by persons with
direct knowledge, statistical analysis, and the appraiser's
response to the request for a reconsideration of value.
``(ii) Exception.--The term `reason to believe' does not
mean that there is a final legal determination of
discrimination.
``(4) Document retention.--The creditor shall retain all
documentation and written communications related to the
request for reconsideration of value or subsequent appraisal
in the loan file during the 7-year period beginning on the
date on which the consumer submitted the credit application.
``(5) Rule of construction.--This subsection is consistent
with the exceptions to the appraiser independence
requirements found in subsection (c). Nothing in this
subsection shall be construed to require a creditor to submit
a reconsideration of value to the original appraiser before
ordering a subsequent appraisal from a subsequent
appraiser.''.
(2) Rules and interpretative guidelines.--Section 129E(g)
of the Truth in Lending Act (15 U.S.C. 1639e(g)) is amended--
(A) in paragraph (1), by striking ``paragraph (2), the
Board'' and inserting ``paragraphs (2) and (3), the Bureau'';
and
(B) by adding at the end the following:
``(3) Final rule.--Not later than 1 year after the date of
enactment of this paragraph, the Federal Housing Finance
Agency shall issue a final rule after notice and comment and
issue such guidance as may be necessary to carry out and
enforce subsection (j).''.
(b) Public Appraisal Database.----
(1) Covered agencies defined.--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.--No later than 240 days after the
date of enactment of this Act, the Comptroller General of the
United States shall issue a public report to Congress
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, which shall include--
(A) the costs and benefits associated with establishing and
maintaining the public database;
(B) the benefits and risks associated with either 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 1974 (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 is
required and made public under the Home Mortgage Disclosure
Act of 1974 (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 is 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 serving the housing market in a manner that
is efficient and consistent for all mortgage loan applicants,
borrowers, and communities.
(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--COORDINATION, STUDIES, AND REPORTING
SEC. 5801. 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
facilitates 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 Finance 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 and 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
and regulations described in subparagraph (B).
(2) Publication.--The report required under paragraph (1)
shall, prior to submission under that subsection, be
published in
[[Page S5293]]
the Federal Register and open for comment for a period of 30
days.
SEC. 5802. 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 the 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 sections
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 the Housing and Urban Development and the
Department of Agriculture.
(b) Advisory Working Group.--
(1) 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 establish
an advisory working group for the purpose of consulting on
the memorandum of understanding entered into under subsection
(a).
(2) Members.--The advisory working group established under
paragraph (1) shall consist of representatives of--
(A) affordable housing nonprofit organizations;
(B) State housing agencies;
(C) nonprofit and for-profit home builders and housing
developers;
(D) property management companies;
(E) public housing agencies;
(F) residents in housing assisted by the Department of
Housing and Urban Development or the Department of
Agriculture and representatives of those residents; and
(G) housing contract administrators.
(c) 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 the 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. 5803. 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 180 days after the date of
enactment of this Act, the Secretary shall report the initial
findings of the study required under paragraph (1) to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives.
(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 program 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).
______