[Congressional Record (Bound Edition), Volume 155 (2009), Part 10]
[House]
[Pages 12767-12795]
[From the U.S. Government Publishing Office, www.gpo.gov]




             HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009

  Mr. FRANK of Massachusetts. Mr. Speaker, I move to suspend the rules 
and pass the Senate bill (S. 896) to prevent mortgage foreclosures and 
enhance mortgage credit availability, as amended.
  The Clerk read the title of the Senate bill.
  The text of the Senate bill, as amended, is as follows:

                                 S. 896

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
              DIVISION A--PREVENTING MORTGAGE FORECLOSURES

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Helping Families Save Their Homes Act of 2009''.

[[Page 12768]]

       (b) Table of Contents.--The table of contents of this 
     division is the following:

Sec. 1. Short title; table of contents.

              TITLE I--PREVENTION OF MORTGAGE FORECLOSURES

Sec. 101. Guaranteed rural housing loans.
Sec. 102. Modification of housing loans guaranteed by the Department of 
              Veterans Affairs.
Sec. 103. Additional funding for HUD programs to assist individuals to 
              better withstand the current mortgage crisis.
Sec. 104. Mortgage modification data collecting and reporting.
Sec. 105. Neighborhood Stabilization Program Refinements.

        TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY

Sec. 201. Servicer safe harbor for mortgage loan modifications.
Sec. 202. Changes to HOPE for Homeowners Program.
Sec. 203. Requirements for FHA-approved mortgagees.
Sec. 204. Enhancement of liquidity and stability of insured depository 
              institutions to ensure availability of credit and 
              reduction of foreclosures.
Sec. 205. Application of GSE conforming loan limit to mortgages 
              assisted with TARP funds.
Sec. 206. Mortgages on certain homes on leased land.
Sec. 207. Sense of Congress regarding mortgage revenue bond purchases.

                  TITLE III--MORTGAGE FRAUD TASK FORCE

Sec. 301. Sense of the Congress on establishment of a Nationwide 
              Mortgage Fraud Task Force.

              TITLE IV--FORECLOSURE MORATORIUM PROVISIONS

Sec. 401. Sense of the Congress on foreclosures.
Sec. 402. Public-Private Investment Program; Additional Appropriations 
              for the Special Inspector General for the Troubled Asset 
              Relief Program.
Sec. 403. Removal of requirement to liquidate warrants under the TARP.
Sec. 404. Notification of sale or transfer of mortgage loans.

                    TITLE V--FARM LOAN RESTRUCTURING

Sec. 501. Congressional Oversight Panel special report.

   TITLE VI--ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF PROGRAM

Sec. 601. Enhanced oversight of the Troubled Asset Relief Program.

            TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT

Sec. 701. Short title.
Sec. 702. Effect of foreclosure on preexisting tenancy.
Sec. 703. Effect of foreclosure on section 8 tenancies.
Sec. 704. Sunset.

      TITLE VIII--COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES

Sec. 801. Comptroller General additional audit authorities.

              TITLE I--PREVENTION OF MORTGAGE FORECLOSURES

     SEC. 101. GUARANTEED RURAL HOUSING LOANS.

       (a) Guaranteed Rural Housing Loans.--Section 502(h) of the 
     Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) by redesignating paragraphs (13) and (14) as paragraphs 
     (16) and (17), respectively; and
       (2) by inserting after paragraph (12) the following new 
     paragraphs:
       ``(13) Loss mitigation.--Upon default or imminent default 
     of any mortgage guaranteed under this subsection, mortgagees 
     shall engage in loss mitigation actions for the purpose of 
     providing an alternative to foreclosure (including actions 
     such as special forbearance, loan modification, pre-
     foreclosure sale, deed in lieu of foreclosure, as required, 
     support for borrower housing counseling, subordinate lien 
     resolution, and borrower relocation), as provided for by the 
     Secretary.
       ``(14) Payment of partial claims and mortgage 
     modifications.--The Secretary may authorize the modification 
     of mortgages, and establish a program for payment of a 
     partial claim to a mortgagee that agrees to apply the claim 
     amount to payment of a mortgage on a 1- to 4-family 
     residence, for mortgages that are in default or face imminent 
     default, as defined by the Secretary. Any payment under such 
     program directed to the mortgagee shall be made at the sole 
     discretion of the Secretary and on terms and conditions 
     acceptable to the Secretary, except that--
       ``(A) the amount of the partial claim payment shall be in 
     an amount determined by the Secretary, and shall not exceed 
     an amount equivalent to 30 percent of the unpaid principal 
     balance of the mortgage and any costs that are approved by 
     the Secretary;
       ``(B) the amount of the partial claim payment shall be 
     applied first to any outstanding indebtedness on the 
     mortgage, including any arrearage, but may also include 
     principal reduction;
       ``(C) the mortgagor shall agree to repay the amount of the 
     partial claim to the Secretary upon terms and conditions 
     acceptable to the Secretary;
       ``(D) expenses related to a partial claim or modification 
     are not to be charged to the borrower;
       ``(E) the Secretary may authorize compensation to the 
     mortgagee for lost income on monthly mortgage payments due to 
     interest rate reduction;
       ``(F) the Secretary may reimburse the mortgagee from the 
     appropriate guaranty fund in connection with any activities 
     that the mortgagee is required to undertake concerning 
     repayment by the mortgagor of the amount owed to the 
     Secretary;
       ``(G) the Secretary may authorize payments to the mortgagee 
     on behalf of the borrower, under such terms and conditions as 
     are defined by the Secretary, based on successful performance 
     under the terms of the mortgage modification, which shall be 
     used to reduce the principal obligation under the modified 
     mortgage; and
       ``(H) the Secretary may authorize the modification of 
     mortgages with terms extended up to 40 years from the date of 
     modification.
       ``(15) Assignment.--
       ``(A) Program authority.--The Secretary may establish a 
     program for assignment to the Secretary, upon request of the 
     mortgagee, of a mortgage on a 1- to 4-family residence 
     guaranteed under this chapter.
       ``(B) Program requirements.--
       ``(i) In general.--The Secretary may encourage loan 
     modifications for eligible delinquent mortgages or mortgages 
     facing imminent default, as defined by the Secretary, through 
     the payment of the guaranty and assignment of the mortgage to 
     the Secretary and the subsequent modification of the terms of 
     the mortgage according to a loan modification approved under 
     this section.
       ``(ii) Acceptance of assignment.--The Secretary may accept 
     assignment of a mortgage under a program under this 
     subsection only if--

       ``(I) the mortgage is in default or facing imminent 
     default;
       ``(II) the mortgagee has modified the mortgage or qualified 
     the mortgage for modification sufficient to cure the default 
     and provide for mortgage payments the mortgagor is reasonably 
     able to pay, at interest rates not exceeding current market 
     interest rates; and
       ``(III) the Secretary arranges for servicing of the 
     assigned mortgage by a mortgagee (which may include the 
     assigning mortgagee) through procedures that the Secretary 
     has determined to be in the best interests of the appropriate 
     guaranty fund.

       ``(C) Payment of guaranty.--Under the program under this 
     paragraph, the Secretary may pay the guaranty for a mortgage, 
     in the amount determined in accordance with paragraph (2), 
     without reduction for any amounts modified, but only upon the 
     assignment, transfer, and delivery to the Secretary of all 
     rights, interest, claims, evidence, and records with respect 
     to the mortgage, as defined by the Secretary.
       ``(D) Disposition.--After modification of a mortgage 
     pursuant to this paragraph, and assignment of the mortgage, 
     the Secretary may provide guarantees under this subsection 
     for the mortgage. The Secretary may subsequently--
       ``(i) re-assign the mortgage to the mortgagee under terms 
     and conditions as are agreed to by the mortgagee and the 
     Secretary;
       ``(ii) act as a Government National Mortgage Association 
     issuer, or contract with an entity for such purpose, in order 
     to pool the mortgage into a Government National Mortgage 
     Association security; or
       ``(iii) re-sell the mortgage in accordance with any program 
     that has been established for purchase by the Federal 
     Government of mortgages insured under this title, and the 
     Secretary may coordinate standards for interest rate 
     reductions available for loan modification with interest 
     rates established for such purchase.
       ``(E) Loan servicing.--In carrying out the program under 
     this subsection, the Secretary may require the existing 
     servicer of a mortgage assigned to the Secretary under the 
     program to continue servicing the mortgage as an agent of the 
     Secretary during the period that the Secretary acquires and 
     holds the mortgage for the purpose of modifying the terms of 
     the mortgage. If the mortgage is resold pursuant to 
     subparagraph (D)(iii), the Secretary may provide for the 
     existing servicer to continue to service the mortgage or may 
     engage another entity to service the mortgage.''.
       (b) Technical Amendments.--Subsection (h) of section 502 of 
     the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) in paragraph (5)(A), by striking ``(as defined in 
     paragraph (13)'' and inserting ``(as defined in paragraph 
     (17)''; and
       (2) in paragraph (18)(E)(as so redesignated by subsection 
     (a)(2)), by--
       (A) striking ``paragraphs (3), (6), (7)(A), (8), and (10)'' 
     and inserting ``paragraphs (3), (6), (7)(A), (8), (10), (13), 
     and (14)''; and
       (B) striking ``paragraphs (2) through (13)'' and inserting 
     ``paragraphs (2) through (15)''.
       (c) Procedure.--

[[Page 12769]]

       (1) In general.--The promulgation of regulations 
     necessitated and the administration actions required by the 
     amendments made by this section shall be made without regard 
     to--
       (A) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (B) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (C) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (2) Congressional review of agency rulemaking.--In carrying 
     out this section, and the amendments made by this section, 
     the Secretary shall use the authority provided under section 
     808 of title 5, United States Code.

     SEC. 102. MODIFICATION OF HOUSING LOANS GUARANTEED BY THE 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) Maturity of Housing Loans.--Section 3703(d)(1) of title 
     38, United States Code, is amended by inserting ``at the time 
     of origination'' after ``loan''.
       (b) Implementation.--The Secretary of Veterans Affairs may 
     implement the amendments made by this section through notice, 
     procedure notice, or administrative notice.

     SEC. 103. ADDITIONAL FUNDING FOR HUD PROGRAMS TO ASSIST 
                   INDIVIDUALS TO BETTER WITHSTAND THE CURRENT 
                   MORTGAGE CRISIS.

       (a) Additional Appropriations for Advertising To Increase 
     Public Awareness of Mortgage Scams and Counseling 
     Assistance.--In addition to any amounts that may be 
     appropriated for each of the fiscal years 2010 and 2011 for 
     such purpose, there is authorized to be appropriated to the 
     Secretary of Housing and Urban Development, to remain 
     available until expended, $10,000,000 for each of the fiscal 
     years 2010 and 2011 for purposes of providing additional 
     resources to be used for advertising to raise awareness of 
     mortgage fraud and to support HUD programs and approved 
     counseling agencies, provided that such amounts are used to 
     advertise in the 100 metropolitan statistical areas with the 
     highest rate of home foreclosures, and provided, further that 
     up to $5,000,000 of such amounts are used for advertisements 
     designed to reach and inform broad segments of the community.
       (b) Additional Appropriations for the Housing Counseling 
     Assistance Program.--In addition to any amounts that may be 
     appropriated for each of the fiscal years 2010 and 2011 for 
     such purpose, there is authorized to be appropriated to the 
     Secretary of Housing and Urban Development, to remain 
     available until expended, $50,000,000 for each of the fiscal 
     years 2010 and 2011 to carry out the Housing Counseling 
     Assistance Program established within the Department of 
     Housing and Urban Development, provided that such amounts are 
     used to fund HUD-certified housing-counseling agencies 
     located in the 100 metropolitan statistical areas with the 
     highest rate of home foreclosures for the purpose of 
     assisting homeowners with inquiries regarding mortgage-
     modification assistance and mortgage scams.
       (c) Additional Appropriations for Personnel at the Office 
     of Fair Housing and Equal Opportunity.--In addition to any 
     amounts that may be appropriated for each of the fiscal years 
     2010 and 2011 for such purpose, there is authorized to be 
     appropriated to the Secretary of Housing and Urban 
     Development, to remain available until expended, $5,000,000 
     for each of the fiscal years 2010 and 2011 for purposes of 
     hiring additional personnel at the Office of Fair Housing and 
     Equal Opportunity within the Department of Housing and Urban 
     Development, provided that such amounts are used to hire 
     personnel at the local branches of such Office located in the 
     100 metropolitan statistical areas with the highest rate of 
     home foreclosures.

     SEC. 104. MORTGAGE MODIFICATION DATA COLLECTING AND 
                   REPORTING.

       (a) Reporting Requirements.--Not later than 120 days after 
     the date of the enactment of this Act, and quarterly 
     thereafter, the Comptroller of the Currency and the Director 
     of the Office of Thrift Supervision, shall jointly submit a 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Financial Services of 
     the House of Representatives on the volume of mortgage 
     modifications reported to the Office of the Comptroller of 
     the Currency and the Office of Thrift Supervision, under the 
     mortgage metrics program of each such Office, during the 
     previous quarter, including the following:
       (1) A copy of the data collection instrument currently used 
     by the Office of the Comptroller of the Currency and the 
     Office of Thrift Supervision to collect data on loan 
     modifications.
       (2) The total number of mortgage modifications resulting in 
     each of the following:
       (A) Additions of delinquent payments and fees to loan 
     balances.
       (B) Interest rate reductions and freezes.
       (C) Term extensions.
       (D) Reductions of principal.
       (E) Deferrals of principal.
       (F) Combinations of modifications described in subparagraph 
     (A), (B), (C), (D), or (E).
       (3) The total number of mortgage modifications in which the 
     total monthly principal and interest payment resulted in the 
     following:
       (A) An increase.
       (B) Remained the same.
       (C) Decreased less than 10 percent.
       (D) Decreased between 10 percent and 20 percent.
       (E) Decreased 20 percent or more.
       (4) The total number of loans that have been modified and 
     then entered into default, where the loan modification 
     resulted in--
       (A) higher monthly payments by the homeowner;
       (B) equivalent monthly payments by the homeowner;
       (C) lower monthly payments by the homeowner of up to 10 
     percent;
       (D) lower monthly payments by the homeowner of between 10 
     percent to 20 percent; or
       (E) lower monthly payments by the homeowner of more than 20 
     percent.
       (b) Data Collection.--
       (1) Required.--
       (A) In general.--Not later than 60 days after the date of 
     the enactment of this Act, the Comptroller of the Currency 
     and the Director of the Office of Thrift Supervision, shall 
     issue mortgage modification data collection and reporting 
     requirements to institutions covered under the reporting 
     requirement of the mortgage metrics program of the 
     Comptroller or the Director.
       (B) Inclusiveness of collections.--The requirements under 
     subparagraph (A) shall provide for the collection of all 
     mortgage modification data needed by the Comptroller of the 
     Currency and the Director of the Office of Thrift Supervision 
     to fulfill the reporting requirements under subsection (a).
       (2) Report.--The Comptroller of the Currency shall report 
     all requirements established under paragraph (1) to each 
     committee receiving the report required under subsection (a).

     SEC. 105. NEIGHBORHOOD STABILIZATION PROGRAM REFINEMENTS.

       (a) In General.--Section 2301(c) of the Foreclosure 
     Prevention Act of 2008 (42 U.S.C. 5301 note) is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       ``(3) Exception for certain states.--Each State that has 
     received the minimum allocation of amounts pursuant to the 
     requirement under section 2302 may, to the extent such State 
     has fulfilled the requirements of paragraph (2), distribute 
     any remaining amounts to areas with homeowners at risk of 
     foreclosure or in foreclosure without regard to the 
     percentage of home foreclosures in such areas.''.
       (b) Retroactive Effective Date.--The amendment made by 
     subsection (a) shall take effect as if enacted on the date of 
     enactment of the Foreclosure Prevention Act of 2008 (Public 
     Law 110-289).

        TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY

     SEC. 201. SERVICER SAFE HARBOR FOR MORTGAGE LOAN 
                   MODIFICATIONS.

       (a) Congressional Findings.--Congress finds the following:
       (1) Increasing numbers of mortgage foreclosures are not 
     only depriving many Americans of their homes, but are also 
     destabilizing property values and negatively affecting State 
     and local economies as well as the national economy.
       (2) In order to reduce the number of foreclosures and to 
     stabilize property values, local economies, and the national 
     economy, servicers must be given--
       (A) authorization to--
       (i) modify mortgage loans and engage in other loss 
     mitigation activities consistent with applicable guidelines 
     issued by the Secretary of the Treasury or his designee under 
     the Emergency Economic Stabilization Act of 2008; and
       (ii) refinance mortgage loans under the Hope for Homeowners 
     program; and
       (B) a safe harbor to enable such servicers to exercise 
     these authorities.
       (b) Safe Harbor.--Section 129A of the Truth in Lending Act 
     (15 U.S.C. 1639a) is amended to read as follows:

     ``SEC. 129. DUTY OF SERVICERS OF RESIDENTIAL MORTGAGES.

       ``(a) In General.--Notwithstanding any other provision of 
     law, whenever a servicer of residential mortgages agrees to 
     enter into a qualified loss mitigation plan with respect to 1 
     or more residential mortgages originated before the date of 
     enactment of the Helping Families Save Their Homes Act of 
     2009, including mortgages held in a securitization or other 
     investment vehicle--
       ``(1) to the extent that the servicer owes a duty to 
     investors or other parties to maximize the net present value 
     of such mortgages, the duty shall be construed to apply to 
     all such investors and parties, and not to any individual 
     party or group of parties; and
       ``(2) the servicer shall be deemed to have satisfied the 
     duty set forth in paragraph (1) if, before December 31, 2012, 
     the servicer implements a qualified loss mitigation plan that 
     meets the following criteria:
       ``(A) Default on the payment of such mortgage has occurred, 
     is imminent, or is reasonably foreseeable, as such terms are 
     defined by guidelines issued by the Secretary of the Treasury 
     or his designee under the Emergency Economic Stabilization 
     Act of 2008.

[[Page 12770]]

       ``(B) The mortgagor occupies the property securing the 
     mortgage as his or her principal residence.
       ``(C) The servicer reasonably determined, consistent with 
     the guidelines issued by the Secretary of the Treasury or his 
     designee, that the application of such qualified loss 
     mitigation plan to a mortgage or class of mortgages will 
     likely provide an anticipated recovery on the outstanding 
     principal mortgage debt that will exceed the anticipated 
     recovery through foreclosures.
       ``(b) No Liability.--A servicer that is deemed to be acting 
     in the best interests of all investors or other parties under 
     this section shall not be liable to any party who is owed a 
     duty under subsection (a)(1), and shall not be subject to any 
     injunction, stay, or other equitable relief to such party, 
     based solely upon the implementation by the servicer of a 
     qualified loss mitigation plan.
       ``(c) Standard Industry Practice.--The qualified loss 
     mitigation plan guidelines issued by the Secretary of the 
     Treasury under the Emergency Economic Stabilization Act of 
     2008 shall constitute standard industry practice for purposes 
     of all Federal and State laws.
       ``(d) Scope of Safe Harbor.--Any person, including a 
     trustee, issuer, and loan originator, shall not be liable for 
     monetary damages or be subject to an injunction, stay, or 
     other equitable relief, based solely upon the cooperation of 
     such person with a servicer when such cooperation is 
     necessary for the servicer to implement a qualified loss 
     mitigation plan that meets the requirements of subsection 
     (a).
       ``(e) Reporting.--Each servicer that engages in qualified 
     loss mitigation plans under this section shall regularly 
     report to the Secretary of the Treasury the extent, scope, 
     and results of the servicer's modification activities. The 
     Secretary of the Treasury shall prescribe regulations or 
     guidance specifying the form, content, and timing of such 
     reports.
       ``(f) Definitions.--As used in this section--
       ``(1) the term `qualified loss mitigation plan' means--
       ``(A) a residential loan modification, workout, or other 
     loss mitigation plan, including to the extent that the 
     Secretary of the Treasury determines appropriate, a loan 
     sale, real property disposition, trial modification, pre-
     foreclosure sale, and deed in lieu of foreclosure, that is 
     described or authorized in guidelines issued by the Secretary 
     of the Treasury or his designee under the Emergency Economic 
     Stabilization Act of 2008; and
       ``(B) a refinancing of a mortgage under the Hope for 
     Homeowners program;
       ``(2) the term `servicer' means the person responsible for 
     the servicing for others of residential mortgage 
     loans(including of a pool of residential mortgage loans); and
       ``(3) the term `securitization vehicle' means a trust, 
     special purpose entity, or other legal structure that is used 
     to facilitate the issuing of securities, participation 
     certificates, or similar instruments backed by or referring 
     to a pool of assets that includes residential mortgages (or 
     instruments that are related to residential mortgages such as 
     credit-linked notes).
       ``(g) Rule of Construction.--No provision of subsection (b) 
     or (d) shall be construed as affecting the liability of any 
     servicer or person as described in subsection (d) for actual 
     fraud in the origination or servicing of a loan or in the 
     implementation of a qualified loss mitigation plan, or for 
     the violation of a State or Federal law, including laws 
     regulating the origination of mortgage loans, commonly 
     referred to as predatory lending laws.''.

     SEC. 202. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

       (a) Program Changes.--Section 257 of the National Housing 
     Act (12 U.S.C. 1715z-23) is amended--
       (1) in subsection (c)--
       (A) in the heading for paragraph (1), by striking ``the 
     board'' and inserting ``secretary'';
       (B) in paragraph (1), by striking ``Board'' inserting 
     ``Secretary, after consultation with the Board,'';
       (C) in paragraph (1)(A), by inserting ``consistent with 
     section 203(b) to the maximum extent possible'' before the 
     semicolon; and
       (D) by adding after paragraph (2) the following:
       ``(3) Duties of board.--The Board shall advise the 
     Secretary regarding the establishment and implementation of 
     the HOPE for Homeowners Program.'';
       (2) by striking ``Board'' each place such term appears in 
     subsections (e), (h)(1), (h)(3), (j), (l), (n), (s)(3), and 
     (v) and inserting ``Secretary'';
       (3) in subsection (e)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Borrower certification.--
       ``(A) No intentional default or false information.--The 
     mortgagor shall provide a certification to the Secretary that 
     the mortgagor has not intentionally defaulted on the existing 
     mortgage or mortgages or any other substantial debt within 
     the last 5 years and has not knowingly, or willfully and with 
     actual knowledge, furnished material information known to be 
     false for the purpose of obtaining the eligible mortgage to 
     be insured and has not been convicted under Federal or State 
     law for fraud during the 10-year period ending upon the 
     insurance of the mortgage under this section.
       ``(B) Liability for repayment.--The mortgagor shall agree 
     in writing that the mortgagor shall be liable to repay to the 
     Secretary any direct financial benefit achieved from the 
     reduction of indebtedness on the existing mortgage or 
     mortgages on the residence refinanced under this section 
     derived from misrepresentations made by the mortgagor in the 
     certifications and documentation required under this 
     paragraph, subject to the discretion of the Secretary.
       ``(C) Current borrower debt-to-income ratio.--As of the 
     date of application for a commitment to insure or insurance 
     under this section, the mortgagor shall have had, or 
     thereafter is likely to have, due to the terms of the 
     mortgage being reset, a ratio of mortgage debt to income, 
     taking into consideration all existing mortgages of that 
     mortgagor at such time, greater than 31 percent (or such 
     higher amount as the Secretary determines appropriate).'';
       (B) in paragraph (4)--
       (i) in subparagraph (A), by striking ``, subject to 
     standards established by the Board under subparagraph (B),''; 
     and
       (ii) in subparagraph (B)(i), by striking ``shall'' and 
     inserting ``may''; and
       (C) in paragraph (7), by striking ``; and provided that'' 
     and all that follows through ``new second lien'';
       (D) in paragraph (9)--
       (i) by striking ``by procuring (A) an income tax return 
     transcript of the income tax return of the mortgagor, or 
     (B)'' and inserting ``in accordance with procedures and 
     standards that the Secretary shall establish (provided that 
     such procedures and standards are consistent with section 
     203(b) to the maximum extent possible) which may include 
     requiring the mortgagee to procure''; and
       (ii) by striking ``and by any other method, in accordance 
     with procedures and standards that the Board shall 
     establish'';
       (E) in paragraph (10)--
       (i) by striking ``The mortgagor shall not'' and inserting 
     the following:
       ``(A) Prohibition.--The mortgagor shall not''; and
       (ii) by adding at the end the following:
       ``(B) Duty of mortgagee.--The duty of the mortgagee to 
     ensure that the mortgagor is in compliance with the 
     prohibition under subparagraph (A) shall be satisfied if the 
     mortgagee makes a good faith effort to determine that the 
     mortgagor has not been convicted under Federal or State law 
     for fraud during the period described in subparagraph (A).'';
       (F) in paragraph (11), by inserting before the period at 
     the end the following: ``, except that the Secretary may 
     provide exceptions to such latter requirement (relating to 
     present ownership interest) for any mortgagor who has 
     inherited a property''; and
       (G) by adding at the end:
       ``(12) Ban on millionaires.--The mortgagor shall not have a 
     net worth, as of the date the mortgagor first applies for a 
     mortgage to be insured under the Program under this section, 
     that exceeds $1,000,000.'';
       (4) in subsection (h)(2), by striking ``The Board shall 
     prohibit the Secretary from paying'' and inserting ``The 
     Secretary shall not pay''; and
       (5) in subsection (i)--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and adjusting the 
     margins accordingly;
       (B) in the matter preceding subparagraph (A), as 
     redesignated by this paragraph, by striking ``For each'' and 
     inserting the following:
       ``(1) Premiums.--For each'';
       (C) in subparagraph (A), as redesignated by this paragraph, 
     by striking ``equal to 3 percent'' and inserting ``not more 
     than 3 percent''; and
       (D) in subparagraph (B), as redesignated by this paragraph, 
     by striking ``equal to 1.5 percent'' and inserting ``not more 
     than 1.5 percent'';
       (E) by adding at the end the following:
       ``(2) Considerations.--In setting the premium under this 
     subsection, the Secretary shall consider--
       ``(A) the financial integrity of the HOPE for Homeowners 
     Program; and
       ``(B) the purposes of the HOPE for Homeowners Program 
     described in subsection (b).'';
       (6) in subsection (k)--
       (A) by striking the subsection heading and inserting ``Exit 
     Fee'';
       (B) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``such sale or refinancing'' and inserting 
     ``the mortgage being insured under this section''; and
       (C) in paragraph (2), by striking ``and the mortgagor'' and 
     all that follows through the end and inserting ``may, upon 
     any sale or disposition of the property to which the mortgage 
     relates, be entitled to up to 50 percent of appreciation, up 
     to the appraised value of the home at the time when the 
     mortgage being refinanced under this section was originally 
     made. The Secretary may share any amounts received under this 
     paragraph with ``or assign the rights of any amounts due to 
     the Secretary to'' the holder

[[Page 12771]]

     of the existing senior mortgage on the eligible mortgage, the 
     holder of any existing subordinate mortgage on the eligible 
     mortgage, or both.'';
       (7) in the heading for subsection (n), by striking ``the 
     Board'' and inserting ``Secretary'';
       (8) in subsection (p), by striking ``Under the direction of 
     the Board, the'' and inserting ``The'';
       (9) in subsection (s)--
       (A) in the first sentence of paragraph (2), by striking 
     ``Board of Directors of'' and inserting ``Advisory Board 
     for''; and
       (B) in paragraph (3)(A)(ii), by striking ``subsection 
     (e)(1)(B) and such other'' and inserting ``such'';
       (10) in subsection (v), by inserting after the period at 
     the end the following: ``The Secretary shall conform 
     documents, forms, and procedures for mortgages insured under 
     this section to those in place for mortgages insured under 
     section 203(b) to the maximum extent possible consistent with 
     the requirements of this section.''; and
       (11) by adding at the end the following new subsections:
       ``(x) Payments to Servicers and Originators.--The Secretary 
     may establish a payment to the--
       ``(1) servicer of the existing senior mortgage ``or 
     existing subordinate mortgage'' for every loan insured under 
     the HOPE for Homeowners Program; and
       ``(2) originator of each new loan insured under the HOPE 
     for Homeowners Program.
       ``(y) Auctions.--The Secretary, with the concurrence of the 
     Board, shall, if feasible, establish a structure and organize 
     procedures for an auction to refinance eligible mortgages on 
     a wholesale or bulk basis.''.
       (b) Reducing TARP Funds To Offset Costs of Program 
     Changes.--Paragraph (3) of section 115(a) of the Emergency 
     Economic Stabilization Act of 2008 (12 U.S.C. 5225) is 
     amended by inserting ``, as such amount is reduced by 
     $1,244,000,000,'' after ``$700,000,000,000''.
       (c) Technical Correction.--The second section 257 of the 
     National Housing Act (Public Law 110-289; 122 Stat. 2839; 12 
     U.S.C. 1715z-24) is amended by striking the section heading 
     and inserting the following:

     ``SEC. 258. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS 
                   WITHOUT SUFFICIENT CREDIT HISTORY.''.

     SEC. 203. REQUIREMENTS FOR FHA-APPROVED MORTGAGEES.

       (a) Mortgagee Review Board.--
       (1) In general.--Section 202(c)(2) of the National Housing 
     Act (12 U.S.C. 1708(c)) is amended--
       (A) in subparagraph (E), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (F), by striking ``; and'' and 
     inserting ``or their designees.''; and
       (C) by striking subparagraph (G).
       (2) Prohibition against limitations on mortgagee review 
     board's power to take action against mortgagees.--Section 
     202(c) of the National Housing Act (12 U.S.C. 1708(c)) is 
     amended by adding at the end the following new paragraph:
       ``(9) Prohibition against limitations on mortgagee review 
     board's power to take action against mortgagees.--No State or 
     local law, and no Federal law (except a Federal law enacted 
     expressly in limitation of this subsection after the 
     effective date of this sentence), shall preclude or limit the 
     exercise by the Board of its power to take any action 
     authorized under paragraphs (3) and (6) of this subsection 
     against any mortgagee.''.
       (b) Limitations on Participation and Mortgagee Approval and 
     Use of Name.--Section 202 of the National Housing Act (12 
     U.S.C. 1708) is amended--
       (1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Limitations on Participation in Origination and 
     Mortgagee Approval.--
       ``(1) Requirement.--Any person or entity that is not 
     approved by the Secretary to serve as a mortgagee, as such 
     term is defined in subsection (c)(7), shall not participate 
     in the origination of an FHA-insured loan except as 
     authorized by the Secretary.
       ``(2) Eligibility for approval.--In order to be eligible 
     for approval by the Secretary, an applicant mortgagee shall 
     not be, and shall not have any officer, partner, director, 
     principal, manager, supervisor, loan processor, loan 
     underwriter, or loan originator of the applicant mortgagee 
     who is--
       ``(A) currently suspended, debarred, under a limited denial 
     of participation (LDP), or otherwise restricted under part 25 
     of title 24 of the Code of Federal Regulations, 2 Code of 
     Federal Regulations, part 180 as implemented by part 2424, or 
     any successor regulations to such parts, or under similar 
     provisions of any other Federal agency;
       ``(B) under indictment for, or has been convicted of, an 
     offense that reflects adversely upon the applicant's 
     integrity, competence or fitness to meet the responsibilities 
     of an approved mortgagee;
       ``(C) subject to unresolved findings contained in a 
     Department of Housing and Urban Development or other 
     governmental audit, investigation, or review;
       ``(D) engaged in business practices that do not conform to 
     generally accepted practices of prudent mortgagees or that 
     demonstrate irresponsibility;
       ``(E) convicted of, or who has pled guilty or nolo 
     contendre to, a felony related to participation in the real 
     estate or mortgage loan industry--
       ``(i) during the 7-year period preceding the date of the 
     application for licensing and registration; or
       ``(ii) at any time preceding such date of application, if 
     such felony involved an act of fraud, dishonesty, or a breach 
     of trust, or money laundering;
       ``(F) in violation of provisions of the S.A.F.E. Mortgage 
     Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any 
     applicable provision of State law; or
       ``(G) in violation of any other requirement as established 
     by the Secretary.
       ``(3) Rulemaking and implementation.--The Secretary shall 
     conduct a rulemaking to carry out this subsection. The 
     Secretary shall implement this subsection not later than the 
     expiration of the 60-day period beginning upon the date of 
     the enactment of this subsection by notice, mortgagee letter, 
     or interim final regulations, which shall take effect upon 
     issuance.''; and
       (3) by adding at the end the following new subsection:
       ``(h) Use of Name.--The Secretary shall, by regulation, 
     require each mortgagee approved by the Secretary for 
     participation in the FHA mortgage insurance programs of the 
     Secretary--
       ``(1) to use the business name of the mortgagee that is 
     registered with the Secretary in connection with such 
     approval in all advertisements and promotional materials, as 
     such terms are defined by the Secretary, relating to the 
     business of such mortgagee in such mortgage insurance 
     programs; and
       ``(2) to maintain copies of all such advertisements and 
     promotional materials, in such form and for such period as 
     the Secretary requires.''.
       (c) Payment for Loss Mitigation.--Section 204(a)(2) of the 
     National Housing Act (12 U.S.C. 1710(a)(2)) is amended--
       (1) by inserting ``or faces imminent default, as defined by 
     the Secretary'' after ``default'';
       (2) by inserting ``support for borrower housing counseling, 
     partial claims, borrower incentives, preforeclosure sale,'' 
     after ``loan modification,''; and
       (3) by striking ``204(a)(1)(A)'' and inserting ``subsection 
     (a)(1)(A) or section 230(c)''.
       (d) Payment of FHA Mortgage Insurance Benefits.--
       (1) Additional loss mitigation actions.--Section 230(a) of 
     the National Housing Act (12 U.S.C. 1715u(a)) is amended--
       (A) by inserting ``or imminent default, as defined by the 
     Secretary'' after ``default'';
       (B) by striking ``loss'' and inserting ``loan'';
       (C) by inserting ``preforeclosure sale, support for 
     borrower housing counseling, subordinate lien resolution, 
     borrower incentives,'' after ``loan modification,'';
       (D) by inserting ``as required,'' after ``deeds in lieu of 
     foreclosure,''; and
       (E) by inserting ``or section 230(c),'' before ``as 
     provided''.
       (2) Amendment to partial claim authority.--Section 230(b) 
     of the National Housing Act (12 U.S.C. 1715u(b)) is amended 
     to read as follows:
       ``(b) Payment of Partial Claim.--
       ``(1) Establishment of program.--The Secretary may 
     establish a program for payment of a partial claim to a 
     mortgagee that agrees to apply the claim amount to payment of 
     a mortgage on a 1- to 4-family residence that is in default 
     or faces imminent default, as defined by the Secretary.
       ``(2) Payments and exceptions.--Any payment of a partial 
     claim under the program established in paragraph (1) to a 
     mortgagee shall be made in the sole discretion of the 
     Secretary and on terms and conditions acceptable to the 
     Secretary, except that--
       ``(A) the amount of the payment shall be in an amount 
     determined by the Secretary, not to exceed an amount 
     equivalent to 30 percent of the unpaid principal balance of 
     the mortgage and any costs that are approved by the 
     Secretary;
       ``(B) the amount of the partial claim payment shall first 
     be applied to any arrearage on the mortgage, and may also be 
     applied to achieve principal reduction;
       ``(C) the mortgagor shall agree to repay the amount of the 
     insurance claim to the Secretary upon terms and conditions 
     acceptable to the Secretary;
       ``(D) the Secretary may permit compensation to the 
     mortgagee for lost income on monthly payments, due to a 
     reduction in the interest rate charged on the mortgage;
       ``(E) expenses related to the partial claim or modification 
     may not be charged to the borrower;
       ``(F) loans may be modified to extend the term of the 
     mortgage to a maximum of 40 years from the date of the 
     modification; and
       ``(G) the Secretary may permit incentive payments to the 
     mortgagee, on the borrower's behalf, based on successful 
     performance of a modified mortgage, which shall be used to 
     reduce the amount of principal indebtedness.
       ``(3) Payments in connection with certain activities.--The 
     Secretary may pay the mortgagee, from the appropriate 
     insurance fund, in connection with any activities that

[[Page 12772]]

     the mortgagee is required to undertake concerning repayment 
     by the mortgagor of the amount owed to the Secretary.''.
       (3) Assignment.--Section 230(c) of the National Housing Act 
     (12 U.S.C. 1715u(c)) is amended--
       (A) by inserting ``(1)'' after ``(c)'';
       (B) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (C) in paragraph (1)(B) (as so redesignated)--
       (i) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively;
       (ii) in the matter preceding clause (i) (as so 
     redesignated), by striking ``under a program under this 
     subsection'' and inserting ``under this paragraph''; and
       (iii) in clause (i) (as so redesignated), by inserting ``or 
     facing imminent default, as defined by the Secretary'' after 
     ``default'';
       (D) in paragraph (1)(C) (as so redesignated), by striking 
     ``under a program under this subsection'' and inserting 
     ``under this paragraph''; and
       (E) by adding at the end the following:
       ``(2) Assignment and loan modification.--
       ``(A) Authority.--The Secretary may encourage loan 
     modifications for eligible delinquent mortgages or mortgages 
     facing imminent default, as defined by the Secretary, through 
     the payment of insurance benefits and assignment of the 
     mortgage to the Secretary and the subsequent modification of 
     the terms of the mortgage according to a loan modification 
     approved by the mortgagee.
       ``(B) Payment of benefits and assignment.--In carrying out 
     this paragraph, the Secretary may pay insurance benefits for 
     a mortgage, in the amount determined in accordance with 
     section 204(a)(5), without reduction for any amounts 
     modified, but only upon the assignment, transfer, and 
     delivery to the Secretary of all rights, interest, claims, 
     evidence, and records with respect to the mortgage specified 
     in clauses (i) through (iv) of section 204(a)(1)(A).
       ``(C) Disposition.--After modification of a mortgage 
     pursuant to this paragraph, the Secretary may provide 
     insurance under this title for the mortgage. The Secretary 
     may subsequently--
       ``(i) re-assign the mortgage to the mortgagee under terms 
     and conditions as are agreed to by the mortgagee and the 
     Secretary;
       ``(ii) act as a Government National Mortgage Association 
     issuer, or contract with an entity for such purpose, in order 
     to pool the mortgage into a Government National Mortgage 
     Association security; or
       ``(iii) re-sell the mortgage in accordance with any program 
     that has been established for purchase by the Federal 
     Government of mortgages insured under this title, and the 
     Secretary may coordinate standards for interest rate 
     reductions available for loan modification with interest 
     rates established for such purchase.
       ``(D) Loan servicing.--In carrying out this paragraph, the 
     Secretary may require the existing servicer of a mortgage 
     assigned to the Secretary to continue servicing the mortgage 
     as an agent of the Secretary during the period that the 
     Secretary acquires and holds the mortgage for the purpose of 
     modifying the terms of the mortgage, provided that the 
     Secretary compensates the existing servicer appropriately, as 
     such compensation is determined by the Secretary consistent, 
     to the maximum extent possible, with section 203(b). If the 
     mortgage is resold pursuant to subparagraph (C)(iii), the 
     Secretary may provide for the existing servicer to continue 
     to service the mortgage or may engage another entity to 
     service the mortgage.''.
       (4) Implementation.--The Secretary of Housing and Urban 
     Development may implement the amendments made by this 
     subsection through notice or mortgagee letter.
       (e) Change of Status.--The National Housing Act is amended 
     by striking section 532 (12 U.S.C. 1735f-10) and inserting 
     the following new section:

     ``SEC. 532. CHANGE OF MORTGAGEE STATUS.

       ``(a) Notification.--Upon the occurrence of any action 
     described in subsection (b), an approved mortgagee shall 
     immediately submit to the Secretary, in writing, notification 
     of such occurrence.
       ``(b) Actions.--The actions described in this subsection 
     are as follows:
       ``(1) The debarment, suspension or a Limited Denial of 
     Participation (LDP), or application of other sanctions, other 
     exclusions, fines, or penalties applied to the mortgagee or 
     to any officer, partner, director, principal, manager, 
     supervisor, loan processor, loan underwriter, or loan 
     originator of the mortgagee pursuant to applicable provisions 
     of State or Federal law.
       ``(2) The revocation of a State-issued mortgage loan 
     originator license issued pursuant to the S.A.F.E. Mortgage 
     Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any other 
     similar declaration of ineligibility pursuant to State 
     law.''.
       (f) Civil Money Penalties.--Section 536 of the National 
     Housing Act (12 U.S.C. 1735f-14) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``or any of its owners, officers, or directors'' after 
     ``mortgagee or lender'';
       (ii) in subparagraph (H), by striking ``title I'' and all 
     that follows through ``under this Act.'' and inserting 
     ``title I or II of this Act, or any implementing regulation, 
     handbook, or mortgagee letter that is issued under this 
     Act.''; and
       (iii) by inserting after subparagraph (J) the following:
       ``(K) Violation of section 202(d) of this Act (12 U.S.C. 
     1708(d)).
       ``(L) Use of `Federal Housing Administration', `Department 
     of Housing and Urban Development', `Government National 
     Mortgage Association', `Ginnie Mae', the acronyms `HUD', 
     `FHA', or `GNMA', or any official seal or logo of the 
     Department of Housing and Urban Development, except as 
     authorized by the Secretary.'';
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``or'' at the end;
       (ii) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following new subparagraph:
       ``(D) causing or participating in any of the violations set 
     forth in paragraph (1) of this subsection.''; and
       (C) by amending paragraph (3) to read as follows:
       ``(3) Prohibition against misleading use of federal entity 
     designation.--The Secretary may impose a civil money penalty, 
     as adjusted from time to time, under subsection (a) for any 
     use of `Federal Housing Administration', `Department of 
     Housing and Urban Development', `Government National Mortgage 
     Association', `Ginnie Mae', the acronyms `HUD', `FHA', or 
     `GNMA', or any official seal or logo of the Department of 
     Housing and Urban Development, by any person, party, company, 
     firm, partnership, or business, including sellers of real 
     estate, closing agents, title companies, real estate agents, 
     mortgage brokers, appraisers, loan correspondents, and 
     dealers, except as authorized by the Secretary.''; and
       (2) in subsection (g), by striking ``The term'' and all 
     that follows through the end of the sentence and inserting 
     ``For purposes of this section, a person acts knowingly when 
     a person has actual knowledge of acts or should have known of 
     the acts.''.
       (g) Expanded Review of FHA Mortgagee Applicants and Newly 
     Approved Mortgagees.--Not later than the expiration of the 3-
     month period beginning upon the date of the enactment of this 
     Act, the Secretary of Housing and Urban Development shall--
       (1) expand the existing process for reviewing new 
     applicants for approval for participation in the mortgage 
     insurance programs of the Secretary for mortgages on 1- to 4-
     family residences for the purpose of identifying applicants 
     who represent a high risk to the Mutual Mortgage Insurance 
     Fund; and
       (2) implement procedures that, for mortgagees approved 
     during the 12-month period ending upon such date of 
     enactment--
       (A) expand the number of mortgages originated by such 
     mortgagees that are reviewed for compliance with applicable 
     laws, regulations, and policies; and
       (B) include a process for random reviews of such mortgagees 
     and a process for reviews that is based on volume of 
     mortgages originated by such mortgagees.

     SEC. 204. ENHANCEMENT OF LIQUIDITY AND STABILITY OF INSURED 
                   DEPOSITORY INSTITUTIONS TO ENSURE AVAILABILITY 
                   OF CREDIT AND REDUCTION OF FORECLOSURES.

       (a) Temporary Increase in Deposit Insurance Extended.--
     Section 136 of the Emergency Economic Stabilization Act of 
     2008 (12 U.S.C. 5241) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``December 31, 2009'' and 
     inserting ``December 31, 2013'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in paragraph (2), as so redesignated, by striking 
     ``December 31, 2009'' and inserting ``December 31, 2013''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``December 31, 2009'' and 
     inserting ``December 31, 2013'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in paragraph (2), as so redesignated, by striking 
     ``December 31, 2009'' and inserting ``December 31, 2013''; 
     and
       (b) Extension of Restoration Plan Period.--Section 
     7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(b)(3)(E)(ii)) is amended by striking ``5-year 
     period'' and inserting ``8-year period''.
       (c) FDIC and NCUA Borrowing Authority.--
       (1) FDIC.--Section 14(a) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1824(a)) is amended--
       (A) by striking ``$30,000,000,000'' and inserting 
     ``$100,000,000,000'';
       (B) by striking ``The Corporation is authorized'' and 
     inserting the following:
       ``(1) In general.--The Corporation is authorized'';
       (C) by striking ``There are hereby'' and inserting the 
     following:
       ``(2) Funding.--There are hereby''; and

[[Page 12773]]

       (D) by adding at the end the following:
       ``(3) Temporary increases authorized.--
       ``(A) Recommendations for increase.--During the period 
     beginning on the date of enactment of this paragraph and 
     ending on December 31, 2010, if, upon the written 
     recommendation of the Board of Directors (upon a vote of not 
     less than two-thirds of the members of the Board of 
     Directors) and the Board of Governors of the Federal Reserve 
     System (upon a vote of not less than two-thirds of the 
     members of such Board), the Secretary of the Treasury (in 
     consultation with the President) determines that additional 
     amounts above the $100,000,000,000 amount specified in 
     paragraph (1) are necessary, such amount shall be increased 
     to the amount so determined to be necessary, not to exceed 
     $500,000,000,000.
       ``(B) Report required.--If the borrowing authority of the 
     Corporation is increased above $100,000,000,000 pursuant to 
     subparagraph (A), the Corporation shall promptly submit a 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives describing the reasons and 
     need for the additional borrowing authority and its intended 
     uses.
       ``(C) Restriction on usage.--The Corporation may not borrow 
     pursuant to subparagraph (A) to fund obligations of the 
     Corporation incurred as a part of a program established by 
     the Secretary of the Treasury pursuant to the Emergency 
     Economic Stabilization Act of 2008 to purchase or guarantee 
     assets.''.
       (2) NCUA.--Section 203(d)(1) of the Federal Credit Union 
     Act (12 U.S.C. 1783(d)(1)) is amended to read as follows:
       ``(1) If, in the judgment of the Board, a loan to the 
     insurance fund, or to the stabilization fund described in 
     section 217 of this title, is required at any time for 
     purposes of this subchapter, the Secretary of the Treasury 
     shall make the loan, but loans under this paragraph shall not 
     exceed in the aggregate $6,000,000,000 outstanding at any one 
     time. Except as otherwise provided in this subsection, 
     section 217, and in subsection (e) of this section, each loan 
     under this paragraph shall be made on such terms as may be 
     fixed by agreement between the Board and the Secretary of the 
     Treasury.''.
       (3) Temporary increases of borrowing authority for ncua.--
     Section 203(d) of the Federal Credit Union Act (12 U.S.C. 
     1783(d)) is amended by adding at the end the following:
       ``(4) Temporary increases authorized.--
       ``(A) Recommendations for increase.--During the period 
     beginning on the date of enactment of this paragraph and 
     ending on December 31, 2010, if, upon the written 
     recommendation of the Board (upon a vote of not less than 
     two-thirds of the members of the Board) and the Board of 
     Governors of the Federal Reserve System (upon a vote of not 
     less than two-thirds of the members of such Board), the 
     Secretary of the Treasury (in consultation with the 
     President) determines that additional amounts above the 
     $6,000,000,000 amount specified in paragraph (1) are 
     necessary, such amount shall be increased to the amount so 
     determined to be necessary, not to exceed $30,000,000,000.
       ``(B) Report required.--If the borrowing authority of the 
     Board is increased above $6,000,000,000 pursuant to 
     subparagraph (A), the Board shall promptly submit a report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives describing the reasons and need for the 
     additional borrowing authority and its intended uses.''.
       (d) Expanding Systemic Risk Special Assessments.--Section 
     13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1823(c)(4)(G)(ii)) is amended to read as follows:
       ``(ii) Repayment of loss.--

       ``(I) In general.--The Corporation shall recover the loss 
     to the Deposit Insurance Fund arising from any action taken 
     or assistance provided with respect to an insured depository 
     institution under clause (i) from 1 or more special 
     assessments on insured depository institutions, depository 
     institution holding companies (with the concurrence of the 
     Secretary of the Treasury with respect to holding companies), 
     or both, as the Corporation determines to be appropriate.
       ``(II) Treatment of depository institution holding 
     companies.--For purposes of this clause, sections 7(c)(2) and 
     18(h) shall apply to depository institution holding companies 
     as if they were insured depository institutions.
       ``(III) Regulations.--The Corporation shall prescribe such 
     regulations as it deems necessary to implement this clause. 
     In prescribing such regulations, defining terms, and setting 
     the appropriate assessment rate or rates, the Corporation 
     shall establish rates sufficient to cover the losses incurred 
     as a result of the actions of the Corporation under clause 
     (i) and shall consider: the types of entities that benefit 
     from any action taken or assistance provided under this 
     subparagraph; economic conditions, the effects on the 
     industry, and such other factors as the Corporation deems 
     appropriate and relevant to the action taken or the 
     assistance provided. Any funds so collected that exceed 
     actual losses shall be placed in the Deposit Insurance 
     Fund.''.

       (e) Establishment of a National Credit Union Share 
     Insurance Fund Restoration Plan Period.--Section 202(c)(2) of 
     the Federal Credit Union Act (12 U.S.C. 1782(c)(2)) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Fund restoration plans.--
       ``(i) In general.--Whenever--

       ``(I) the Board projects that the equity ratio of the Fund 
     will, within 6 months of such determination, fall below the 
     minimum amount specified in subparagraph (C); or
       ``(II) the equity ratio of the Fund actually falls below 
     the minimum amount specified in subparagraph (C) without any 
     determination under sub-clause (I) having been made,

     the Board shall establish and implement a restoration plan 
     within 90 days that meets the requirements of clause (ii) and 
     such other conditions as the Board determines to be 
     appropriate.
       ``(ii) Requirements of restoration plan.--A restoration 
     plan meets the requirements of this clause if the plan 
     provides that the equity ratio of the Fund will meet or 
     exceed the minimum amount specified in subparagraph (C) 
     before the end of the 8-year period beginning upon the 
     implementation of the plan (or such longer period as the 
     Board may determine to be necessary due to extraordinary 
     circumstances).
       ``(iii) Transparency.--Not more than 30 days after the 
     Board establishes and implements a restoration plan under 
     clause (i), the Board shall publish in the Federal Register a 
     detailed analysis of the factors considered and the basis for 
     the actions taken with regard to the plan.''.
       (f) Temporary Corporate Credit Union Stabilization Fund.--
       (1) Establishment of stabilization fund.--Title II of the 
     Federal Credit Union Act (12 U.S.C. 1781 et seq.) is amended 
     by adding at the end the following new section:

     ``SEC. 217. TEMPORARY CORPORATE CREDIT UNION STABILIZATION 
                   FUND.

       ``(a) Establishment of Stabilization Fund.--There is hereby 
     created in the Treasury of the United States a fund to be 
     known as the `Temporary Corporate Credit Union Stabilization 
     Fund.' The Board will administer the Stabilization Fund as 
     prescribed by section 209.
       ``(b) Expenditures From Stabilization Fund.--Money in the 
     Stabilization Fund shall be available upon requisition by the 
     Board, without fiscal year limitation, for making payments 
     for the purposes described in section 203(a), subject to the 
     following additional limitations:
       ``(1) All payments other than administrative payments shall 
     be connected to the conservatorship, liquidation, or 
     threatened conservatorship or liquidation, of a corporate 
     credit union.
       ``(2) Prior to authorizing each payment the Board shall--
       ``(A) certify that, absent the existence of the 
     Stabilization Fund, the Board would have made the identical 
     payment out of the National Credit Union Share Insurance Fund 
     (Insurance Fund); and
       ``(B) report each such certification to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives.
       ``(c) Authority To Borrow.--
       ``(1) In general.--The Stabilization Fund is authorized to 
     borrow from the Secretary of the Treasury from time-to-time 
     as deemed necessary by the Board. The maximum outstanding 
     amount of all borrowings from the Treasury by the 
     Stabilization Fund and the National Credit Union Share 
     Insurance Fund, combined, is limited to the amount provided 
     for in section 203(d)(1), including any authorized increases 
     in that amount.
       ``(2) Repayment of advances.--
       ``(A) In general.--The advances made under this section 
     shall be repaid by the Stabilization Fund, and interest on 
     such advance shall be paid, to the General fund of the 
     Treasury.
       ``(B) Variable rate of interest.--The Secretary of the 
     Treasury shall make the first rate determination at the time 
     of the first advance under this section and shall reset the 
     rate again for all advances on each anniversary of the first 
     advance. The interest rate shall be equal to the average 
     market yield on outstanding marketable obligations of the 
     United States with remaining periods to maturity equal to 12 
     months.
       ``(3) Repayment schedule.--The Stabilization Fund shall 
     repay the advances on a first-in, first-out basis, with 
     interest on the amount repaid, at times and dates determined 
     by the Board at its discretion. All advances shall be repaid 
     not later than the date of the seventh anniversary of the 
     first advance to the Stabilization Fund, unless the Board 
     extends this final repayment date. The Board shall obtain the 
     concurrence of the Secretary of the Treasury on any proposed 
     extension, including the terms and conditions of the extended 
     repayment.
       ``(d) Assessment to Repay Advances.--At least 90 days prior 
     to each repayment described in subsection (c)(3), the Board 
     shall set the amount of the upcoming repayment and determine 
     if the Stabilization Fund will have sufficient funds to make 
     the repayment. If the Stabilization Fund might not have 
     sufficient funds to make the repayment, the Board shall 
     assess each federally

[[Page 12774]]

     insured credit union a special premium due and payable within 
     60 days in an aggregate amount calculated to ensure the 
     Stabilization Fund is able to make the repayment. The premium 
     charge for each credit union shall be stated as a percentage 
     of its insured shares as represented on the credit union's 
     previous call report. The percentage shall be identical for 
     each credit union. Any credit union that fails to make timely 
     payment of the special premium is subject to the procedures 
     and penalties described under subsections (d), (e), and (f) 
     of section 202.
       ``(e) Distributions From Insurance Fund.--At the end of any 
     calendar year in which the Stabilization Fund has an 
     outstanding advance from the Treasury, the Insurance Fund is 
     prohibited from making the distribution to insured credit 
     unions described in section 202(c)(3). In lieu of the 
     distribution described in that section, the Insurance Fund 
     shall make a distribution to the Stabilization Fund of the 
     maximum amount possible that does not reduce the Insurance 
     Fund's equity ratio below the normal operating level and does 
     not reduce the Insurance Fund's available assets ratio below 
     1.0 percent.
       ``(f) Investment of Stabilization Fund Assets.--The Board 
     may request the Secretary of the Treasury to invest such 
     portion of the Stabilization Fund as is not, in the Board's 
     judgment, required to meet the current needs of the 
     Stabilization Fund. Such investments shall be made by the 
     Secretary of the Treasury in public debt securities, with 
     maturities suitable to the needs of the Stabilization Fund, 
     as determined by the Board, and bearing interest at a rate 
     determined by the Secretary of the Treasury, taking into 
     consideration current market yields on outstanding marketable 
     obligations of the United States of comparable maturity.
       ``(g) Reports.--The Board shall submit an annual report to 
     Congress on the financial condition and the results of the 
     operation of the Stabilization Fund. The report is due to 
     Congress within 30 days after each anniversary of the first 
     advance made under subsection (c)(1). Because the Fund will 
     use advances from the Treasury to meet corporate 
     stabilization costs with full repayment of borrowings to 
     Treasury at the Board's discretion not due until 7 years from 
     the initial advance, to the extent operating expenses of the 
     Fund exceed income, the financial condition of the Fund may 
     reflect a deficit. With planned and required future 
     repayments, the Board shall resolve all deficits prior to 
     termination of the Fund.
       ``(h) Closing of Stabilization Fund.--Within 90 days 
     following the seventh anniversary of the initial 
     Stabilization Fund advance, or earlier at the Board's 
     discretion, the Board shall distribute any funds, property, 
     or other assets remaining in the Stabilization Fund to the 
     Insurance Fund and shall close the Stabilization Fund. If the 
     Board extends the final repayment date as permitted under 
     subsection (c)(3), the mandatory date for closing the 
     Stabilization Fund shall be extended by the same number of 
     days.''.
       (2) Conforming amendment.--Section 202(c)(3)(A) of the 
     Federal Credit Union Act (12 U.S.C. 1782(c)(3)(A)) is amended 
     by inserting ``, subject to the requirements of section 
     217(e),'' after ``The Board shall''.

     SEC. 205. APPLICATION OF GSE CONFORMING LOAN LIMIT TO 
                   MORTGAGES ASSISTED WITH TARP FUNDS.

       In making any assistance available to prevent and mitigate 
     foreclosures on residential properties, including any 
     assistance for mortgage modifications, using any amounts made 
     available to the Secretary of the Treasury under title I of 
     the Emergency Economic Stabilization Act of 2008, the 
     Secretary shall provide that the limitation on the maximum 
     original principal obligation of a mortgage that may be 
     modified, refinanced, made, guaranteed, insured, or otherwise 
     assisted, using such amounts shall not be less than the 
     dollar amount limitation on the maximum original principal 
     obligation of a mortgage that may be purchased by the Federal 
     Home Loan Mortgage Corporation that is in effect, at the time 
     that the mortgage is modified, refinanced, made, guaranteed, 
     insured, or otherwise assisted using such amounts, for the 
     area in which the property involved in the transaction is 
     located.

     SEC. 206. MORTGAGES ON CERTAIN HOMES ON LEASED LAND.

       Section 255(b)(4) of the National Housing Act (12 U.S.C. 
     1715z-20(b)(4)) is amended by striking subparagraph (B) and 
     inserting:
       ``(B) under a lease that has a term that ends no earlier 
     than the minimum number of years, as specified by the 
     Secretary, beyond the actuarial life expectancy of the 
     mortgagor or comortgagor, whichever is the later date.''.

     SEC. 207. SENSE OF CONGRESS REGARDING MORTGAGE REVENUE BOND 
                   PURCHASES.

       It is the sense of the Congress that the Secretary of the 
     Treasury should use amounts made available in this Act to 
     purchase mortgage revenue bonds for single-family housing 
     issued through State housing finance agencies and through 
     units of local government and agencies thereof.

                  TITLE III--MORTGAGE FRAUD TASK FORCE

     SEC. 301. SENSE OF CONGRESS ON ESTABLISHMENT OF A NATIONWIDE 
                   MORTGAGE FRAUD TASK FORCE.

       (a) In General.--It is the sense of the Congress that the 
     Department of Justice establish a Nationwide Mortgage Fraud 
     Task Force (hereinafter referred to in this section as the 
     ``Task Force'') to address mortgage fraud in the United 
     States.
       (b) Support.--If the Department of Justice establishes the 
     Task Force referred to in subsection (a), it is the sense of 
     the Congress that the Attorney General should provide the 
     Task Force with the appropriate staff, administrative 
     support, and other resources necessary to carry out the 
     duties of the Task Force.
       (c) Mandatory Functions.--If the Department of Justice 
     establishes the Task Force referred to in subsection (a), it 
     is the sense of the Congress that the Attorney General 
     should--
       (1) establish coordinating entities, and solicit the 
     voluntary participation of Federal, State, and local law 
     enforcement and prosecutorial agencies in such entities, to 
     organize initiatives to address mortgage fraud, including 
     initiatives to enforce State mortgage fraud laws and other 
     related Federal and State laws;
       (2) provide training to Federal, State, and local law 
     enforcement and prosecutorial agencies with respect to 
     mortgage fraud, including related Federal and State laws;
       (3) collect and disseminate data with respect to mortgage 
     fraud, including Federal, State, and local data relating to 
     mortgage fraud investigations and prosecutions; and
       (4) perform other functions determined by the Attorney 
     General to enhance the detection of, prevention of, and 
     response to mortgage fraud in the United States.
       (d) Optional Functions.--If the Department of Justice 
     establishes the Task Force referred to in subsection (a), it 
     is the sense of the Congress that the Task Force should--
       (1) initiate and coordinate Federal mortgage fraud 
     investigations and, through the coordinating entities 
     described under subsection (c), State and local mortgage 
     fraud investigations;
       (2) establish a toll-free hotline for--
       (A) reporting mortgage fraud;
       (B) providing the public with access to information and 
     resources with respect to mortgage fraud; and
       (C) directing reports of mortgage fraud to the appropriate 
     Federal, State, and local law enforcement and prosecutorial 
     agency, including to the appropriate branch of the Task Force 
     established under subsection (d);
       (3) create a database with respect to suspensions and 
     revocations of mortgage industry licenses and certifications 
     to facilitate the sharing of such information by States;
       (4) make recommendations with respect to the need for and 
     resources available to provide the equipment and training 
     necessary for the Task Force to combat mortgage fraud; and
       (5) propose legislation to Federal, State, and local 
     legislative bodies with respect to the elimination and 
     prevention of mortgage fraud, including measures to address 
     mortgage loan procedures and property appraiser practices 
     that provide opportunities for mortgage fraud.

              TITLE IV--FORECLOSURE MORATORIUM PROVISIONS

     SEC. 401. SENSE OF THE CONGRESS ON FORECLOSURES.

       (a) In General.--It is the sense of the Congress that 
     mortgage holders, institutions, and mortgage servicers should 
     not initiate a foreclosure proceeding or a foreclosure sale 
     on any homeowner until the foreclosure mitigation provisions, 
     like the Hope for Homeowners program, as required under title 
     II, and the President's ``Homeowner Affordability and 
     Stability Plan'' have been implemented and determined to be 
     operational by the Secretary of Housing and Urban Development 
     and the Secretary of the Treasury.
       (b) Scope of Moratorium.--The foreclosure moratorium 
     referred to in subsection (a) should apply only for first 
     mortgages secured by the owner's principal dwelling.
       (c) FHA-Regulated Loan Modification Agreements.--If a 
     mortgage holder, institution, or mortgage servicer to which 
     subsection (a) applies reaches a loan modification agreement 
     with a homeowner under the auspices of the Federal Housing 
     Administration before any plan referred to in such subsection 
     takes effect, subsection (a) shall cease to apply to such 
     institution as of the effective date of the loan modification 
     agreement.
       (d) Duty of Consumer To Maintain Property.--Any homeowner 
     for whose benefit any foreclosure proceeding or sale is 
     barred under subsection (a) from being instituted, continued 
     , or consummated with respect to any homeowner mortgage 
     should not, with respect to any property securing such 
     mortgage, destroy, damage, or impair such property, allow the 
     property to deteriorate, or commit waste on the property.
       (e) Duty of Consumer To Respond to Reasonable Inquiries.--
     Any homeowner for whose benefit any foreclosure proceeding or 
     sale is barred under subsection (a) from being instituted, 
     continued, or consummated with respect to any homeowner 
     mortgage should respond to reasonable inquiries from

[[Page 12775]]

     a creditor or servicer during the period during which such 
     foreclosure proceeding or sale is barred.

     SEC. 402. PUBLIC-PRIVATE INVESTMENT PROGRAM; ADDITIONAL 
                   APPROPRIATIONS FOR THE SPECIAL INSPECTOR 
                   GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Public-Private Investment Program Improvement and Oversight 
     Act of 2009''.
       (b) Public-Private Investment Program.--
       (1) In general.--Any program established by the Federal 
     Government to create a public-private investment fund shall--
       (A) in consultation with the Special Inspector General of 
     the Trouble Asset Relief Program (in this section referred to 
     as the ``Special Inspector General''), impose strict conflict 
     of interest rules on managers of public-private investment 
     funds to ensure that securities bought by the funds are 
     purchased in arms-length transactions, that fiduciary duties 
     to public and private investors in the fund are not violated, 
     and that there is full disclosure of relevant facts and 
     financial interests (which conflict of interest rules shall 
     be implemented by the manager of a public-private investment 
     fund prior to such fund receiving Federal Government 
     financing);
       (B) require each public-private investment fund to make a 
     quarterly report to the Secretary of the Treasury (in this 
     section referred to as the ``Secretary'') that discloses the 
     10 largest positions of such fund (which reports shall be 
     publicly disclosed at such time as the Secretary of the 
     Treasury determines that such disclosure will not harm the 
     ongoing business operations of the fund);
       (C) allow the Special Inspector General access to all books 
     and records of a public-private investment fund, including 
     all records of financial transactions in machine readable 
     form, and the confidentiality of all such information shall 
     be maintained by the Special Inspector General;
       (D) require each manager of a public-private investment 
     fund to retain all books, documents, and records relating to 
     such public-private investment fund, including electronic 
     messages;
       (E) require each manager of a public-private investment 
     fund to acknowledge, in writing, a fiduciary duty to both the 
     public and private investors in such fund;
       (F) require each manager of a public-private investment 
     fund to develop a robust ethics policy that includes methods 
     to ensure compliance with such policy;
       (G) require strict investor screening procedures for 
     public-private investment funds; and
       (H) require each manager of a public-private fund to 
     identify for the Secretary, on a periodic basis, each 
     investor that, individually or together with affiliates, 
     directly or indirectly, holds equity interests equal to at 
     least 10 percent of the equity interest of the fund including 
     if such interests are held in a vehicle formed for the 
     purpose of directly or indirectly investing in the fund.
       (2) Interaction between public-private investment funds and 
     the term-asset backed securities loan facility.--The 
     Secretary shall consult with the Special Inspector General 
     and shall issue regulations governing the interaction of the 
     Public-Private Investment Program, the Term-Asset Backed 
     Securities Loan Facility, and other similar public-private 
     investment programs. Such regulations shall address concerns 
     regarding the potential for excessive leverage that could 
     result from interactions between such programs.
       (3) Report.--Not later than 60 days after the date of the 
     establishment of a program described in paragraph (1), the 
     Special Inspector General shall submit a report to Congress 
     on the implementation of this section.
       (c) Additional Appropriations for the Special Inspector 
     General.--
       (1) In general.--Of amounts made available under section 
     115(a) of the Emergency Economic Stabilization Act of 2008 
     (Public Law 110-343), $15,000,000 shall be made available to 
     the Special Inspector General, which shall be in addition to 
     amounts otherwise made available to the Special Inspector 
     General.
       (2) Priorities.--In utilizing funds made available under 
     this section, the Special Inspector General shall prioritize 
     the performance of audits or investigations of recipients of 
     non-recourse Federal loans made under ``any program that is 
     funded in whole or in part by funds appropriated under the 
     Emergency Economic Stabilization Act of 2008,'' to the extent 
     that such priority is consistent with other aspects of the 
     mission of the Special Inspector General. Such audits or 
     investigations shall determine the existence of any collusion 
     between the loan recipient and the seller or originator of 
     the asset used as loan collateral, or any other conflict of 
     interest that may have led the loan recipient to deliberately 
     overstate the value of the asset used as loan collateral.
       (d) Rule of Construction.--Notwithstanding any other 
     provision of law, nothing in this section shall be construed 
     to apply to any activity of the Federal Deposit Insurance 
     Corporation in connection with insured depository 
     institutions, as described in section 13(c)(2)(B) of the 
     Federal Deposit Insurance Act.
       (e) Definition.--In this section, the term ``public-private 
     investment fund'' means a financial vehicle that is--
       (1) established by the Federal Government to purchase pools 
     of loans, securities, or assets from a financial institution 
     described in section 101(a)(1) of the Emergency Economic 
     Stabilization Act of 2008 (12 U.S.C. 5211(a)(1)); and
       (2) funded by a combination of cash or equity from private 
     investors and funds provided by the Secretary of the Treasury 
     or funds appropriated under the Emergency Economic 
     Stabilization Act of 2008.
       (f) Offset of Costs of Program Changes.--Notwithstanding 
     the amendment made by section 202(b) of this Act, paragraph 
     (3) of section 115(a) of the Emergency Economic Stabilization 
     Act of 2008 (12 U.S.C. 5225) is amended by inserting ``, as 
     such amount is reduced by $1,259,000,000,'' after 
     ``$700,000,000,000''.
       (g) Regulations.--The Secretary of the Treasury may 
     prescribe such regulations or other guidance as may be 
     necessary or appropriate to define terms or carry out the 
     authorities or purposes of this section.

     SEC. 403. REMOVAL OF REQUIREMENT TO LIQUIDATE WARRANTS UNDER 
                   THE TARP.

       Section 111(g) of the Emergency Economic Stabilization Act 
     of 2008 (12 U.S.C. 5221(g)) is amended by striking ``shall 
     liquidate warrants associated with such assistance at the 
     current market price'' and inserting ``, at the market price, 
     may liquidate warrants associated with such assistance''.

     SEC. 404. NOTIFICATION OF SALE OR TRANSFER OF MORTGAGE LOANS.

       (a) In General.--Section 131 of the Truth in Lending Act 
     (15 U.S.C. 1641) is amended by adding at the end the 
     following:
       ``(g) Notice of New Creditor.--
       ``(1) In general.--In addition to other disclosures 
     required by this title, not later than 30 days after the date 
     on which a mortgage loan is sold or otherwise transferred or 
     assigned to a third party, the creditor that is the new owner 
     or assignee of the debt shall notify the borrower in writing 
     of such transfer, including--
       ``(A) the identity, address, telephone number of the new 
     creditor;
       ``(B) the date of transfer;
       ``(C) how to reach an agent or party having authority to 
     act on behalf of the new creditor;
       ``(D) the location of the place where transfer of ownership 
     of the debt is recorded; and
       ``(E) any other relevant information regarding the new 
     creditor.
       ``(2) Definition.--As used in this subsection, the term 
     `mortgage loan' means any consumer credit transaction that is 
     secured by the principal dwelling of a consumer.''.
       (b) Private Right of Action.--Section 130(a) of the Truth 
     in Lending Act (15 U.S.C. 1640(a)) is amended by inserting 
     ``subsection (f) or (g) of section 131,'' after ``section 
     125,''.

                    TITLE V--FARM LOAN RESTRUCTURING

     SEC. 501. CONGRESSIONAL OVERSIGHT PANEL SPECIAL REPORT.

       Section 125(b) of the Emergency Economic Stabilization Act 
     of 2008 (12 U.S.C. 5233(b)) is amended by adding at the end 
     the following:
       ``(3) Special report on farm loan restructuring.--Not later 
     than 60 days after the date of enactment of this paragraph, 
     the Oversight Panel shall submit a special report on farm 
     loan restructuring that--
       ``(A) analyzes the state of the commercial farm credit 
     markets and the use of loan restructuring as an alternative 
     to foreclosure by recipients of financial assistance under 
     the Troubled Asset Relief Program; and
       ``(B) includes an examination of and recommendation on the 
     different methods for farm loan restructuring that could be 
     used as part of a foreclosure mitigation program for farm 
     loans made by recipients of financial assistance under the 
     Troubled Asset Relief Program, including any programs for 
     direct loan restructuring or modification carried out by the 
     Farm Service Agency of the Department of Agriculture, the 
     farm credit system, and the Making Home Affordable Program of 
     the Department of the Treasury.''.

   TITLE VI--ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF PROGRAM

     SEC. 601. ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF 
                   PROGRAM.

       Section 116 of the Emergency Economic Stabilization Act of 
     2008 (12 U.S.C. 5226) is amended--
       (1) in subsection (a)(1)(A)--
       (A) in clause (iii), by striking ``and'' at the end;
       (B) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(v) public accountability for the exercise of such 
     authority, including with respect to actions taken by those 
     entities participating in programs established under this 
     Act.''; and
       (2) in subsection (a)(2)--
       (A) by redesignating subparagraph (C) as subparagraph (F); 
     and
       (B) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) Definition.--In this paragraph, the term 
     `governmental unit' has the meaning given under section 
     101(27) of title 11, United States Code, and does not include 
     any insured depository institution as defined under

[[Page 12776]]

     section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     8113).
       ``(B) GAO presence.--The Secretary shall provide the 
     Comptroller General with appropriate space and facilities in 
     the Department of the Treasury as necessary to facilitate 
     oversight of the TARP until the termination date established 
     in section 5230 of this title.
       ``(C) Access to records.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, and for purposes of reviewing the performance of the 
     TARP, the Comptroller General shall have access, upon 
     request, to any information, data, schedules, books, 
     accounts, financial records, reports, files, electronic 
     communications, or other papers, things, or property 
     belonging to or in use by the TARP, any entity established by 
     the Secretary under this Act, any entity that is established 
     by a Federal reserve bank and receives funding from the TARP, 
     or any entity (other than a governmental unit) participating 
     in a program established under the authority of this Act, and 
     to the officers, employees, directors, independent public 
     accountants, financial advisors and any and all other agents 
     and representatives thereof, at such time as the Comptroller 
     General may request.
       ``(ii) Verification.--The Comptroller General shall be 
     afforded full facilities for verifying transactions with the 
     balances or securities held by, among others, depositories, 
     fiscal agents, and custodians.
       ``(iii) Copies.--The Comptroller General may make and 
     retain copies of such books, accounts, and other records as 
     the Comptroller General determines appropriate.
       ``(D) Agreement by entities.--Each contract, term sheet, or 
     other agreement between the Secretary or the TARP (or any 
     TARP vehicle, officer, director, employee, independent public 
     accountant, financial advisor, or other TARP agent or 
     representative) and an entity (other than a governmental 
     unit) participating in a program established under this Act 
     shall provide for access by the Comptroller General in 
     accordance with this section.
       ``(E) Restriction on public disclosure.--
       ``(i) In general.--The Comptroller General may not publicly 
     disclose proprietary or trade secret information obtained 
     under this section.
       ``(ii) Exception for congressional committees.--This 
     subparagraph does not limit disclosures to congressional 
     committees or members thereof having jurisdiction over a 
     private or public entity referred to under subparagraph (C).
       ``(iii) Rule of construction.--Nothing in this section 
     shall be construed to alter or amend the prohibitions against 
     the disclosure of trade secrets or other information 
     prohibited by section 1905 of title 18, United States Code, 
     section 714(c) of title 31, United States Code, or other 
     applicable provisions of law.''.

            TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Protecting Tenants at 
     Foreclosure Act of 2009''.

     SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.

       (a) In General.--In the case of any foreclosure on a 
     federally-related mortgage loan or on any dwelling or 
     residential real property after the date of enactment of this 
     title, any immediate successor in interest in such property 
     pursuant to the foreclosure shall assume such interest 
     subject to--
       (1) the provision, by such successor in interest of a 
     notice to vacate to any bona fide tenant at least 90 days 
     before the effective date of such notice; and
       (2) the rights of any bona fide tenant, as of the date of 
     such notice of foreclosure--
       (A) under any bona fide lease entered into before the 
     notice of foreclosure to occupy the premises until the end of 
     the remaining term of the lease, except that a successor in 
     interest may terminate a lease effective on the date of sale 
     of the unit to a purchaser who will occupy the unit as a 
     primary residence, subject to the receipt by the tenant of 
     the 90 day notice under paragraph (1); or
       (B) without a lease or with a lease terminable at will 
     under State law, subject to the receipt by the tenant of the 
     90 day notice under subsection (1),

     except that nothing under this section shall affect the 
     requirements for termination of any Federal- or State-
     subsidized tenancy or of any State or local law that provides 
     longer time periods or other additional protections for 
     tenants.
       (b) Bona Fide Lease or Tenancy.--For purposes of this 
     section, a lease or tenancy shall be considered bona fide 
     only if--
       (1) the mortgagor ``or the child, spouse, or parent of the 
     mortgagor'' under the contract is not the tenant;
       (2) the lease or tenancy was the result of an arms-length 
     transaction; and
       (3) the lease or tenancy requires the receipt of rent that 
     is not substantially less than fair market rent for the 
     property ``or the unit's rent is reduced or subsidized due to 
     a Federal, State, or local subsidy''.
       (c) Definition.--For purposes of this section, the term 
     ``federally-related mortgage loan'' has the same meaning as 
     in section 3 of the Real Estate Settlement Procedures Act of 
     1974 (12 U.S.C. 2602).

     SEC. 703. EFFECT OF FORECLOSURE ON SECTION 8 TENANCIES.

       Section 8(o)(7) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(7)) is amended--
       (1) by inserting before the semicolon in subparagraph (C) 
     the following: ``and in the case of an owner who is an 
     immediate successor in interest pursuant to foreclosure 
     during the term of the lease vacating the property prior to 
     sale shall not constitute other good cause, except that the 
     owner may terminate the tenancy effective on the date of 
     transfer of the unit to the owner if the owner--
       ``(i) will occupy the unit as a primary residence; and
       ``(ii) has provided the tenant a notice to vacate at least 
     90 days before the effective date of such notice.''; and
       (2) by inserting at the end of subparagraph (F) the 
     following: ``In the case of any foreclosure on any federally-
     related mortgage loan (as that term is defined in section 3 
     of the Real Estate Settlement Procedures Act of 1974 (12 
     U.S.C. 2602)) or on any residential real property in which a 
     recipient of assistance under this subsection resides, the 
     immediate successor in interest in such property pursuant to 
     the foreclosure shall assume such interest subject to the 
     lease between the prior owner and the tenant and to the 
     housing assistance payments contract between the prior owner 
     and the public housing agency for the occupied unit, except 
     that this provision and the provisions related to foreclosure 
     in subparagraph (C) shall not shall not affect any State or 
     local law that provides longer time periods or other 
     additional protections for tenants.''.

     SEC. 704. SUNSET.

       This title, and any amendments made by this title are 
     repealed, and the requirements under this title shall 
     terminate, on December 31, 2012.

      TITLE VIII--COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES

     SEC. 801. COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES.

       (a) Board of Governors of the Federal Reserve System.--
     Section 714 of title 31, United States Code, is amended--
       (1) in subsection (a), by striking ``Federal Reserve 
     Board,'' and inserting ``Board of Governors of the Federal 
     Reserve System (in this section referred to as the 
     `Board'),''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Federal Reserve Board,'' and inserting ``Board''; and
       (B) in paragraph (4), by striking ``of Governors''.
       (b) Confidential Information.--Section 714(c) of title 31, 
     United States Code, is amended by striking paragraph (3) and 
     inserting the following:
       ``(3) Except as provided under paragraph (4), an officer or 
     employee of the Government Accountability Office may not 
     disclose to any person outside the Government Accountability 
     Office information obtained in audits or examinations 
     conducted under subsection (e) and maintained as confidential 
     by the Board or the Federal reserve banks.
       ``(4) This subsection shall not--
       ``(A) authorize an officer or employee of an agency to 
     withhold information from any committee or subcommittee of 
     jurisdiction of Congress, or any member of such committee or 
     subcommittee; or
       ``(B) limit any disclosure by the Government Accountability 
     Office to any committee or subcommittee of jurisdiction of 
     Congress, or any member of such committee or subcommittee.''.
       (c) Access to Records.--Section 714(d) of title 31, United 
     States Code, is amended--
       (1) in paragraph (1), by inserting ``The Comptroller 
     General shall have access to the officers, employees, 
     contractors, and other agents and representatives of an 
     agency and any entity established by an agency at any 
     reasonable time as the Comptroller General may request. The 
     Comptroller General may make and retain copies of such books, 
     accounts, and other records as the Comptroller General 
     determines appropriate.'' after the first sentence;
       (2) in paragraph (2), by inserting ``, copies of any 
     record,'' after ``records''; and
       (3) by adding at the end the following:
       ``(3)(A) For purposes of conducting audits and examinations 
     under subsection (e), the Comptroller General shall have 
     access, upon request, to any information, data, schedules, 
     books, accounts, financial records, reports, files, 
     electronic communications, or other papers, things or 
     property belonging to or in use by--
       ``(i) any entity established by any action taken by the 
     Board described under subsection (e);
       ``(ii) any entity receiving assistance from any action 
     taken by the Board described under subsection (e), to the 
     extent that the access and request relates to that 
     assistance; and
       ``(iii) the officers, directors, employees, independent 
     public accountants, financial advisors and any and all 
     representatives of any entity described under clause (i) or 
     (ii); to the extent that the access and request relates to 
     that assistance;
       ``(B) The Comptroller General shall have access as provided 
     under subparagraph (A) at such time as the Comptroller 
     General may request.

[[Page 12777]]

       ``(C) Each contract, term sheet, or other agreement between 
     the Board or any Federal reserve bank (or any entity 
     established by the Board or any Federal reserve bank) and an 
     entity receiving assistance from any action taken by the 
     Board described under subsection (e) shall provide for access 
     by the Comptroller General in accordance with this 
     paragraph.''.
       (d) Audits of Certain Actions of the Board of Governors of 
     the Federal Reserve System.--Section 714 of title 31, United 
     States Code, is amended by adding at the end the following:
       ``(e) Notwithstanding subsection (b), the Comptroller 
     General may conduct audits, including onsite examinations 
     when the Comptroller General determines such audits and 
     examinations are appropriate, of any action taken by the 
     Board under the third undesignated paragraph of section 13 of 
     the Federal Reserve Act (12 U.S.C. 343); with respect to a 
     single and specific partnership or corporation.''.

                    DIVISION B--HOMELESSNESS REFORM

     SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Homeless Emergency Assistance and Rapid Transition to 
     Housing Act of 2009''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

                    DIVISION B--HOMELESSNESS REFORM

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings and purposes.
Sec. 1003. Definition of homelessness.
Sec. 1004. United States Interagency Council on Homelessness.

             TITLE I--HOUSING ASSISTANCE GENERAL PROVISIONS

Sec. 1101. Definitions.
Sec. 1102. Community homeless assistance planning boards.
Sec. 1103. General provisions.
Sec. 1104. Protection of personally identifying information by victim 
              service providers.
Sec. 1105. Authorization of appropriations.

              TITLE II--EMERGENCY SOLUTIONS GRANTS PROGRAM

Sec. 1201. Grant assistance.
Sec. 1202. Eligible activities.
Sec. 1203. Participation in Homeless Management Information System.
Sec. 1204. Administrative provision.
Sec. 1205. GAO study of administrative fees.

                  TITLE III--CONTINUUM OF CARE PROGRAM

Sec. 1301. Continuum of care.
Sec. 1302. Eligible activities.
Sec. 1303. High performing communities.
Sec. 1304. Program requirements.
Sec. 1305. Selection criteria, allocation amounts, and funding.
Sec. 1306. Research.

          TITLE IV--RURAL HOUSING STABILITY ASSISTANCE PROGRAM

Sec. 1401. Rural housing stability assistance.
Sec. 1402. GAO study of homelessness and homeless assistance in rural 
              areas.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

Sec. 1501. Repeals.
Sec. 1502. Conforming amendments.
Sec. 1503. Effective date.
Sec. 1504. Regulations.
Sec. 1505. Amendment to table of contents.

     SEC. 1002. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) a lack of affordable housing and limited scale of 
     housing assistance programs are the primary causes of 
     homelessness; and
       (2) homelessness affects all types of communities in the 
     United States, including rural, urban, and suburban areas.
       (b) Purposes.--The purposes of this division are--
       (1) to consolidate the separate homeless assistance 
     programs carried out under title IV of the McKinney-Vento 
     Homeless Assistance Act (consisting of the supportive housing 
     program and related innovative programs, the safe havens 
     program, the section 8 assistance program for single-room 
     occupancy dwellings, and the shelter plus care program) into 
     a single program with specific eligible activities;
       (2) to codify in Federal law the continuum of care planning 
     process as a required and integral local function necessary 
     to generate the local strategies for ending homelessness; and
       (3) to establish a Federal goal of ensuring that 
     individuals and families who become homeless return to 
     permanent housing within 30 days.

     SEC. 1003. DEFINITION OF HOMELESSNESS.

       (a) In General.--Section 103 of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11302) is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d); and
       (2) by striking subsection (a) and inserting the following:
       ``(a) In General.--For purposes of this Act, the terms 
     `homeless', `homeless individual', and `homeless person' 
     means--
       ``(1) an individual or family who lacks a fixed, regular, 
     and adequate nighttime residence;
       ``(2) an individual or family with a primary nighttime 
     residence that is a public or private place not designed for 
     or ordinarily used as a regular sleeping accommodation for 
     human beings, including a car, park, abandoned building, bus 
     or train station, airport, or camping ground;
       ``(3) an individual or family living in a supervised 
     publicly or privately operated shelter designated to provide 
     temporary living arrangements (including hotels and motels 
     paid for by Federal, State, or local government programs for 
     low-income individuals or by charitable organizations, 
     congregate shelters, and transitional housing);
       ``(4) an individual who resided in a shelter or place not 
     meant for human habitation and who is exiting an institution 
     where he or she temporarily resided;
       ``(5) an individual or family who--
       ``(A) will imminently lose their housing, including housing 
     they own, rent, or live in without paying rent, are sharing 
     with others, and rooms in hotels or motels not paid for by 
     Federal, State, or local government programs for low-income 
     individuals or by charitable organizations, as evidenced by--
       ``(i) a court order resulting from an eviction action that 
     notifies the individual or family that they must leave within 
     14 days;
       ``(ii) the individual or family having a primary nighttime 
     residence that is a room in a hotel or motel and where they 
     lack the resources necessary to reside there for more than 14 
     days; or
       ``(iii) credible evidence indicating that the owner or 
     renter of the housing will not allow the individual or family 
     to stay for more than 14 days, and any oral statement from an 
     individual or family seeking homeless assistance that is 
     found to be credible shall be considered credible evidence 
     for purposes of this clause;
       ``(B) has no subsequent residence identified; and
       ``(C) lacks the resources or support networks needed to 
     obtain other permanent housing; and
       ``(6) unaccompanied youth and homeless families with 
     children and youth defined as homeless under other Federal 
     statutes who--
       ``(A) have experienced a long term period without living 
     independently in permanent housing,
       ``(B) have experienced persistent instability as measured 
     by frequent moves over such period, and
       ``(C) can be expected to continue in such status for an 
     extended period of time because of chronic disabilities, 
     chronic physical health or mental health conditions, 
     substance addiction, histories of domestic violence or 
     childhood abuse, the presence of a child or youth with a 
     disability, or multiple barriers to employment.
       ``(b) Domestic Violence and Other Dangerous or Life-
     Threatening Conditions.--Notwithstanding any other provision 
     of this section, the Secretary shall consider to be homeless 
     any individual or family who is fleeing, or is attempting to 
     flee, domestic violence, dating violence, sexual assault, 
     stalking, or other dangerous or life-threatening conditions 
     in the individual's or family's current housing situation, 
     including where the health and safety of children are 
     jeopardized, and who have no other residence and lack the 
     resources or support networks to obtain other permanent 
     housing.''.
       (b) Regulations.--Not later than the expiration of the 6-
     month period beginning upon the date of the enactment of this 
     division, the Secretary of Housing and Urban Development 
     shall issue regulations that provide sufficient guidance to 
     recipients of funds under title IV of the McKinney-Vento 
     Homeless Assistance Act to allow uniform and consistent 
     implementation of the requirements of section 103 of such 
     Act, as amended by subsection (a) of this section. This 
     subsection shall take effect on the date of the enactment of 
     this division.
       (c) Clarification of Effect on Other Laws.--This section 
     and the amendments made by this section to section 103 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) may 
     not be construed to affect, alter, limit, annul, or supersede 
     any other provision of Federal law providing a definition of 
     ``homeless'', ``homeless individual'', or ``homeless person'' 
     for purposes other than such Act, except to the extent that 
     such provision refers to such section 103 or the definition 
     provided in such section 103.

     SEC. 1004. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

       (a) In General.--Title II of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11311 et seq.) is amended--
       (1) in section 201 (42 U.S.C. 11311), by inserting before 
     the period at the end the following ``whose mission shall be 
     to coordinate the Federal response to homelessness and to 
     create a national partnership at every level of government 
     and with the private sector to reduce and end homelessness in 
     the nation while maximizing the effectiveness of the Federal 
     Government in contributing to the end of homelessness'';
       (2) in section 202 (42 U.S.C. 11312)--
       (A) in subsection (a)--
       (i) by redesignating paragraph (16) as paragraph (22); and
       (ii) by inserting after paragraph (15) the following:
       ``(16) The Commissioner of Social Security, or the designee 
     of the Commissioner.
       ``(17) The Attorney General of the United States, or the 
     designee of the Attorney General.

[[Page 12778]]

       ``(18) The Director of the Office of Management and Budget, 
     or the designee of the Director.
       ``(19) The Director of the Office of Faith-Based and 
     Community Initiatives, or the designee of the Director.
       ``(20) The Director of USA FreedomCorps, or the designee of 
     the Director.'';
       (B) in subsection (c), by striking ``annually'' and 
     inserting ``four times each year, and the rotation of the 
     positions of Chairperson and Vice Chairperson required under 
     subsection (b) shall occur at the first meeting of each 
     year''; and
       (C) by adding at the end the following:
       ``(e) Administration.--The Executive Director of the 
     Council shall report to the Chairman of the Council.'';
       (3) in section 203(a) (42 U.S.C. 11313(a))--
       (A) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as paragraphs (2), (3), (4), (5), (9), (10), and 
     (11), respectively;
       (B) by inserting before paragraph (2), as so redesignated 
     by subparagraph (A), the following:
       ``(1) not later than 12 months after the date of the 
     enactment of the Homeless Emergency Assistance and Rapid 
     Transition to Housing Act of 2009, develop, make available 
     for public comment, and submit to the President and to 
     Congress a National Strategic Plan to End Homelessness, and 
     shall update such plan annually;'';
       (C) in paragraph (5), as redesignated by subparagraph (A), 
     by striking ``at least 2, but in no case more than 5'' and 
     inserting ``not less than 5, but in no case more than 10'';
       (D) by inserting after paragraph (5), as so redesignated by 
     subparagraph (A), the following:
       ``(6) encourage the creation of State Interagency Councils 
     on Homelessness and the formulation of jurisdictional 10-year 
     plans to end homelessness at State, city, and county levels;
       ``(7) annually obtain from Federal agencies their 
     identification of consumer-oriented entitlement and other 
     resources for which persons experiencing homelessness may be 
     eligible and the agencies' identification of improvements to 
     ensure access; develop mechanisms to ensure access by persons 
     experiencing homelessness to all Federal, State, and local 
     programs for which the persons are eligible, and to verify 
     collaboration among entities within a community that receive 
     Federal funding under programs targeted for persons 
     experiencing homelessness, and other programs for which 
     persons experiencing homelessness are eligible, including 
     mainstream programs identified by the Government 
     Accountability Office in the reports entitled `Homelessness: 
     Coordination and Evaluation of Programs Are Essential', 
     issued February 26, 1999, and `Homelessness: Barriers to 
     Using Mainstream Programs', issued July 6, 2000;
       ``(8) conduct research and evaluation related to its 
     functions as defined in this section;
       ``(9) develop joint Federal agency and other initiatives to 
     fulfill the goals of the agency;'';
       (E) in paragraph (10), as so redesignated by subparagraph 
     (A), by striking ``and'' at the end;
       (F) in paragraph (11), as so redesignated by subparagraph 
     (A), by striking the period at the end and inserting a 
     semicolon;
       (G) by adding at the end the following new paragraphs:
       ``(12) develop constructive alternatives to criminalizing 
     homelessness and laws and policies that prohibit sleeping, 
     feeding, sitting, resting, or lying in public spaces when 
     there are no suitable alternatives, result in the destruction 
     of a homeless person's property without due process, or are 
     selectively enforced against homeless persons; and
       ``(13) not later than the expiration of the 6-month period 
     beginning upon completion of the study requested in a letter 
     to the Acting Comptroller General from the Chair and Ranking 
     Member of the House Financial Services Committee and several 
     other members regarding various definitions of homelessness 
     in Federal statutes, convene a meeting of representatives of 
     all Federal agencies and committees of the House of 
     Representatives and the Senate having jurisdiction over any 
     Federal program to assist homeless individuals or families, 
     local and State governments, academic researchers who 
     specialize in homelessness, nonprofit housing and service 
     providers that receive funding under any Federal program to 
     assist homeless individuals or families, organizations 
     advocating on behalf of such nonprofit providers and homeless 
     persons receiving housing or services under any such Federal 
     program, and homeless persons receiving housing or services 
     under any such Federal program, at which meeting such 
     representatives shall discuss all issues relevant to whether 
     the definitions of `homeless' under paragraphs (1) through 
     (4) of section 103(a) of the McKinney-Vento Homeless 
     Assistance Act, as amended by section 1003 of the Homeless 
     Emergency Assistance and Rapid Transition to Housing Act of 
     2009, should be modified by the Congress, including whether 
     there is a compelling need for a uniform definition of 
     homelessness under Federal law, the extent to which the 
     differences in such definitions create barriers for 
     individuals to accessing services and to collaboration 
     between agencies, and the relative availability, and barriers 
     to access by persons defined as homeless, of mainstream 
     programs identified by the Government Accountability Office 
     in the two reports identified in paragraph (7) of this 
     subsection; and shall submit transcripts of such meeting, and 
     any majority and dissenting recommendations from such 
     meetings, to each committee of the House of Representatives 
     and the Senate having jurisdiction over any Federal program 
     to assist homeless individuals or families not later than the 
     expiration of the 60-day period beginning upon conclusion of 
     such meeting.''.
       (4) in section 203(b)(1) (42 U.S.C. 11313(b))--
       (A) by striking ``Federal'' and inserting ``national'';
       (B) by striking ``; and'' and inserting ``and pay for 
     expenses of attendance at meetings which are concerned with 
     the functions or activities for which the appropriation is 
     made;'';
       (5) in section 205(d) (42 U.S.C. 11315(d)), by striking 
     ``property.'' and inserting ``property, both real and 
     personal, public and private, without fiscal year limitation, 
     for the purpose of aiding or facilitating the work of the 
     Council.''; and
       (6) by striking section 208 (42 U.S.C. 11318) and inserting 
     the following:

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $3,000,000 for fiscal year 2010 and such sums as may be 
     necessary for fiscal years 2011. Any amounts appropriated to 
     carry out this title shall remain available until 
     expended.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on, and shall apply beginning on, the date 
     of the enactment of this division.

             TITLE I--HOUSING ASSISTANCE GENERAL PROVISIONS

     SEC. 1101. DEFINITIONS.

       Subtitle A of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11361 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

                  ``Subtitle A--General Provisions'';

       (2) by redesignating sections 401 and 402 (42 U.S.C. 11361, 
     11362) as sections 403 and 406, respectively; and
       (3) by inserting before section 403 (as so redesignated by 
     paragraph (2) of this section) the following new section:

     ``SEC. 401. DEFINITIONS.

       ``For purposes of this title:
       ``(1) At risk of homelessness.--The term `at risk of 
     homelessness' means, with respect to an individual or family, 
     that the individual or family--
       ``(A) has income below 30 percent of median income for the 
     geographic area;
       ``(B) has insufficient resources immediately available to 
     attain housing stability; and
       ``(C)(i) has moved frequently because of economic reasons;
       ``(ii) is living in the home of another because of economic 
     hardship;
       ``(iii) has been notified that their right to occupy their 
     current housing or living situation will be terminated;
       ``(iv) lives in a hotel or motel;
       ``(v) lives in severely overcrowded housing;
       ``(vi) is exiting an institution; or
       ``(vii) otherwise lives in housing that has characteristics 
     associated with instability and an increased risk of 
     homelessness.
     Such term includes all families with children and youth 
     defined as homeless under other Federal statutes.
       ``(2) Chronically homeless.--
       ``(A) In general.--The term `chronically homeless' means, 
     with respect to an individual or family, that the individual 
     or family--
       ``(i) is homeless and lives or resides in a place not meant 
     for human habitation, a safe haven, or in an emergency 
     shelter;
       ``(ii) has been homeless and living or residing in a place 
     not meant for human habitation, a safe haven, or in an 
     emergency shelter continuously for at least 1 year or on at 
     least 4 separate occasions in the last 3 years; and
       ``(iii) has an adult head of household (or a minor head of 
     household if no adult is present in the household) with a 
     diagnosable substance use disorder, serious mental illness, 
     developmental disability (as defined in section 102 of the 
     Developmental Disabilities Assistance and Bill of Rights Act 
     of 2000 (42 U.S.C. 15002)), post traumatic stress disorder, 
     cognitive impairments resulting from a brain injury, or 
     chronic physical illness or disability, including the co-
     occurrence of 2 or more of those conditions.
       ``(B) Rule of construction.--A person who currently lives 
     or resides in an institutional care facility, including a 
     jail, substance abuse or mental health treatment facility, 
     hospital or other similar facility, and has resided there for 
     fewer than 90 days shall be considered chronically homeless 
     if such person met all of the requirements described in 
     subparagraph (A) prior to entering that facility.
       ``(3) Collaborative applicant.--The term `collaborative 
     applicant' means an entity that--
       ``(A) carries out the duties specified in section 402;

[[Page 12779]]

       ``(B) serves as the applicant for project sponsors who 
     jointly submit a single application for a grant under 
     subtitle C in accordance with a collaborative process; and
       ``(C) if the entity is a legal entity and is awarded such 
     grant, receives such grant directly from the Secretary.
       ``(4) Collaborative application.--The term `collaborative 
     application' means an application for a grant under subtitle 
     C that--
       ``(A) satisfies section 422; and
       ``(B) is submitted to the Secretary by a collaborative 
     applicant.
       ``(5) Consolidated plan.--The term `Consolidated Plan' 
     means a comprehensive housing affordability strategy and 
     community development plan required in part 91 of title 24, 
     Code of Federal Regulations.
       ``(6) Eligible entity.--The term `eligible entity' means, 
     with respect to a subtitle, a public entity, a private 
     entity, or an entity that is a combination of public and 
     private entities, that is eligible to directly receive grant 
     amounts under such subtitle.
       ``(7) Families with children and youth defined as homeless 
     under other federal statutes.--The term `families with 
     children and youth defined as homeless under other Federal 
     statutes' means any children or youth that are defined as 
     `homeless' under any Federal statute other than this 
     subtitle, but are not defined as homeless under section 103, 
     and shall also include the parent, parents, or guardian of 
     such children or youth under subtitle B of title VII this Act 
     (42 U.S.C. 11431 et seq.).
       ``(8) Geographic area.--The term `geographic area' means a 
     State, metropolitan city, urban county, town, village, or 
     other nonentitlement area, or a combination or consortia of 
     such, in the United States, as described in section 106 of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     5306).
       ``(9) Homeless individual with a disability.--
       ``(A) In general.--The term `homeless individual with a 
     disability' means an individual who is homeless, as defined 
     in section 103, and has a disability that--
       ``(i)(I) is expected to be long-continuing or of indefinite 
     duration;
       ``(II) substantially impedes the individual's ability to 
     live independently;
       ``(III) could be improved by the provision of more suitable 
     housing conditions; and
       ``(IV) is a physical, mental, or emotional impairment, 
     including an impairment caused by alcohol or drug abuse, post 
     traumatic stress disorder, or brain injury;
       ``(ii) is a developmental disability, as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act of 2000 (42 U.S.C. 15002); or
       ``(iii) is the disease of acquired immunodeficiency 
     syndrome or any condition arising from the etiologic agency 
     for acquired immunodeficiency syndrome.
       ``(B) Rule.--Nothing in clause (iii) of subparagraph (A) 
     shall be construed to limit eligibility under clause (i) or 
     (ii) of subparagraph (A).
       ``(10) Legal entity.--The term `legal entity' means--
       ``(A) an entity described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and 
     exempt from tax under section 501(a) of such Code;
       ``(B) an instrumentality of State or local government; or
       ``(C) a consortium of instrumentalities of State or local 
     governments that has constituted itself as an entity.
       ``(11) Metropolitan city; urban county; nonentitlement 
     area.--The terms `metropolitan city', `urban county', and 
     `nonentitlement area' have the meanings given such terms in 
     section 102(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5302(a)).
       ``(12) New.--The term `new' means, with respect to housing, 
     that no assistance has been provided under this title for the 
     housing.
       ``(13) Operating costs.--The term `operating costs' means 
     expenses incurred by a project sponsor operating transitional 
     housing or permanent housing under this title with respect 
     to--
       ``(A) the administration, maintenance, repair, and security 
     of such housing;
       ``(B) utilities, fuel, furnishings, and equipment for such 
     housing; or
       ``(C) coordination of services as needed to ensure long-
     term housing stability.
       ``(14) Outpatient health services.--The term `outpatient 
     health services' means outpatient health care services, 
     mental health services, and outpatient substance abuse 
     services.
       ``(15) Permanent housing.--The term `permanent housing' 
     means community-based housing without a designated length of 
     stay, and includes both permanent supportive housing and 
     permanent housing without supportive services.
       ``(16) Personally identifying information.--The term 
     `personally identifying information' means individually 
     identifying information for or about an individual, including 
     information likely to disclose the location of a victim of 
     domestic violence, dating violence, sexual assault, or 
     stalking, including--
       ``(A) a first and last name;
       ``(B) a home or other physical address;
       ``(C) contact information (including a postal, e-mail or 
     Internet protocol address, or telephone or facsimile number);
       ``(D) a social security number; and
       ``(E) any other information, including date of birth, 
     racial or ethnic background, or religious affiliation, that, 
     in combination with any other non-personally identifying 
     information, would serve to identify any individual.
       ``(17) Private nonprofit organization.--The term `private 
     nonprofit organization' means an organization--
       ``(A) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board;
       ``(C) that has an accounting system, or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       ``(D) that practices nondiscrimination in the provision of 
     assistance.
       ``(18) Project.--The term `project' means, with respect to 
     activities carried out under subtitle C, eligible activities 
     described in section 423(a), undertaken pursuant to a 
     specific endeavor, such as serving a particular population or 
     providing a particular resource.
       ``(19) Project-based.--The term `project-based' means, with 
     respect to rental assistance, that the assistance is provided 
     pursuant to a contract that--
       ``(A) is between--
       ``(i) the recipient or a project sponsor; and
       ``(ii) an owner of a structure that exists as of the date 
     the contract is entered into; and
       ``(B) provides that rental assistance payments shall be 
     made to the owner and that the units in the structure shall 
     be occupied by eligible persons for not less than the term of 
     the contract.
       ``(20) Project sponsor.--The term `project sponsor' means, 
     with respect to proposed eligible activities, the 
     organization directly responsible for carrying out the 
     proposed eligible activities.
       ``(21) Recipient.--Except as used in subtitle B, the term 
     `recipient' means an eligible entity who--
       ``(A) submits an application for a grant under section 422 
     that is approved by the Secretary;
       ``(B) receives the grant directly from the Secretary to 
     support approved projects described in the application; and
       ``(C)(i) serves as a project sponsor for the projects; or
       ``(ii) awards the funds to project sponsors to carry out 
     the projects.
       ``(22) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(23) Serious mental illness.--The term `serious mental 
     illness' means a severe and persistent mental illness or 
     emotional impairment that seriously limits a person's ability 
     to live independently.
       ``(24) Solo applicant.--The term `solo applicant' means an 
     entity that is an eligible entity, directly submits an 
     application for a grant under subtitle C to the Secretary, 
     and, if awarded such grant, receives such grant directly from 
     the Secretary.
       ``(25) Sponsor-based.--The term `sponsor-based' means, with 
     respect to rental assistance, that the assistance is provided 
     pursuant to a contract that--
       ``(A) is between--
       ``(i) the recipient or a project sponsor; and
       ``(ii) an independent entity that--

       ``(I) is a private organization; and
       ``(II) owns or leases dwelling units; and

       ``(B) provides that rental assistance payments shall be 
     made to the independent entity and that eligible persons 
     shall occupy such assisted units.
       ``(26) State.--Except as used in subtitle B, the term 
     `State' means each of the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Trust Territory of the Pacific 
     Islands, and any other territory or possession of the United 
     States.
       ``(27) Supportive services.--The term `supportive services' 
     means services that address the special needs of people 
     served by a project, including--
       ``(A) the establishment and operation of a child care 
     services program for families experiencing homelessness;
       ``(B) the establishment and operation of an employment 
     assistance program, including providing job training;
       ``(C) the provision of outpatient health services, food, 
     and case management;
       ``(D) the provision of assistance in obtaining permanent 
     housing, employment counseling, and nutritional counseling;
       ``(E) the provision of outreach services, advocacy, life 
     skills training, and housing search and counseling services;
       ``(F) the provision of mental health services, trauma 
     counseling, and victim services;
       ``(G) the provision of assistance in obtaining other 
     Federal, State, and local assistance available for residents 
     of supportive housing (including mental health benefits, 
     employment counseling, and medical assistance, but not 
     including major medical equipment);
       ``(H) the provision of legal services for purposes 
     including requesting reconsiderations and appeals of veterans 
     and public benefit

[[Page 12780]]

     claim denials and resolving outstanding warrants that 
     interfere with an individual's ability to obtain and retain 
     housing;
       ``(I) the provision of--
       ``(i) transportation services that facilitate an 
     individual's ability to obtain and maintain employment; and
       ``(ii) health care; and
       ``(J) other supportive services necessary to obtain and 
     maintain housing.
       ``(28) Tenant-based.--The term `tenant-based' means, with 
     respect to rental assistance, assistance that--
       ``(A) allows an eligible person to select a housing unit in 
     which such person will live using rental assistance provided 
     under subtitle C, except that if necessary to assure that the 
     provision of supportive services to a person participating in 
     a program is feasible, a recipient or project sponsor may 
     require that the person live--
       ``(i) in a particular structure or unit for not more than 
     the first year of the participation;
       ``(ii) within a particular geographic area for the full 
     period of the participation, or the period remaining after 
     the period referred to in subparagraph (A); and
       ``(B) provides that a person may receive such assistance 
     and move to another structure, unit, or geographic area if 
     the person has complied with all other obligations of the 
     program and has moved out of the assisted dwelling unit in 
     order to protect the health or safety of an individual who is 
     or has been the victim of domestic violence, dating violence, 
     sexual assault, or stalking, and who reasonably believed he 
     or she was imminently threatened by harm from further 
     violence if he or she remained in the assisted dwelling unit.
       ``(29) Transitional housing.--The term `transitional 
     housing' means housing the purpose of which is to facilitate 
     the movement of individuals and families experiencing 
     homelessness to permanent housing within 24 months or such 
     longer period as the Secretary determines necessary.
       ``(30) Unified funding agency.--The term `unified funding 
     agency' means a collaborative applicant that performs the 
     duties described in section 402(g).
       ``(31) Underserved populations.--The term `underserved 
     populations' includes populations underserved because of 
     geographic location, underserved racial and ethnic 
     populations, populations underserved because of special needs 
     (such as language barriers, disabilities, alienage status, or 
     age), and any other population determined to be underserved 
     by the Secretary, as appropriate.
       ``(32) Victim service provider.--The term `victim service 
     provider' means a private nonprofit organization whose 
     primary mission is to provide services to victims of domestic 
     violence, dating violence, sexual assault, or stalking. Such 
     term includes rape crisis centers, battered women's shelters, 
     domestic violence transitional housing programs, and other 
     programs.
       ``(33) Victim services.--The term `victim services' means 
     services that assist domestic violence, dating violence, 
     sexual assault, or stalking victims, including services 
     offered by rape crisis centers and domestic violence 
     shelters, and other organizations, with a documented history 
     of effective work concerning domestic violence, dating 
     violence, sexual assault, or stalking.''.

     SEC. 1102. COMMUNITY HOMELESS ASSISTANCE PLANNING BOARDS.

       Subtitle A of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11361 et seq.) is amended by 
     inserting after section 401 (as added by section 1101(3) of 
     this division) the following new section:

     ``SEC. 402. COLLABORATIVE APPLICANTS.

       ``(a) Establishment and Designation.--A collaborative 
     applicant shall be established for a geographic area by the 
     relevant parties in that geographic area to--
       ``(1) submit an application for amounts under this 
     subtitle; and
       ``(2) perform the duties specified in subsection (f) and, 
     if applicable, subsection (g).
       ``(b) No Requirement To Be a Legal Entity.--An entity may 
     be established to serve as a collaborative applicant under 
     this section without being a legal entity.
       ``(c) Remedial Action.--If the Secretary finds that a 
     collaborative applicant for a geographic area does not meet 
     the requirements of this section, or if there is no 
     collaborative applicant for a geographic area, the Secretary 
     may take remedial action to ensure fair distribution of grant 
     amounts under subtitle C to eligible entities within that 
     area. Such measures may include designating another body as a 
     collaborative applicant, or permitting other eligible 
     entities to apply directly for grants.
       ``(d) Construction.--Nothing in this section shall be 
     construed to displace conflict of interest or government fair 
     practices laws, or their equivalent, that govern applicants 
     for grant amounts under subtitles B and C.
       ``(e) Appointment of Agent.--
       ``(1) In general.--Subject to paragraph (2), a 
     collaborative applicant may designate an agent to--
       ``(A) apply for a grant under section 422(c);
       ``(B) receive and distribute grant funds awarded under 
     subtitle C; and
       ``(C) perform other administrative duties.
       ``(2) Retention of duties.--Any collaborative applicant 
     that designates an agent pursuant to paragraph (1) shall 
     regardless of such designation retain all of its duties and 
     responsibilities under this title.
       ``(f) Duties.--A collaborative applicant shall--
       ``(1) design a collaborative process for the development of 
     an application under subtitle C, and for evaluating the 
     outcomes of projects for which funds are awarded under 
     subtitle B, in such a manner as to provide information 
     necessary for the Secretary--
       ``(A) to determine compliance with--
       ``(i) the program requirements under section 426; and
       ``(ii) the selection criteria described under section 427; 
     and
       ``(B) to establish priorities for funding projects in the 
     geographic area involved;
       ``(2) participate in the Consolidated Plan for the 
     geographic area served by the collaborative applicant; and
       ``(3) ensure operation of, and consistent participation by, 
     project sponsors in a community-wide homeless management 
     information system (in this subsection referred to as `HMIS') 
     that--
       ``(A) collects unduplicated counts of individuals and 
     families experiencing homelessness;
       ``(B) analyzes patterns of use of assistance provided under 
     subtitles B and C for the geographic area involved;
       ``(C) provides information to project sponsors and 
     applicants for needs analyses and funding priorities; and
       ``(D) is developed in accordance with standards established 
     by the Secretary, including standards that provide for--
       ``(i) encryption of data collected for purposes of HMIS;
       ``(ii) documentation, including keeping an accurate 
     accounting, proper usage, and disclosure, of HMIS data;
       ``(iii) access to HMIS data by staff, contractors, law 
     enforcement, and academic researchers;
       ``(iv) rights of persons receiving services under this 
     title;
       ``(v) criminal and civil penalties for unlawful disclosure 
     of data; and
       ``(vi) such other standards as may be determined necessary 
     by the Secretary.
       ``(g) Unified Funding.--
       ``(1) In general.--In addition to the duties described in 
     subsection (f), a collaborative applicant shall receive from 
     the Secretary and distribute to other project sponsors in the 
     applicable geographic area funds for projects to be carried 
     out by such other project sponsors, if--
       ``(A) the collaborative applicant--
       ``(i) applies to undertake such collection and distribution 
     responsibilities in an application submitted under this 
     subtitle; and
       ``(ii) is selected to perform such responsibilities by the 
     Secretary; or
       ``(B) the Secretary designates the collaborative applicant 
     as the unified funding agency in the geographic area, after--
       ``(i) a finding by the Secretary that the applicant--

       ``(I) has the capacity to perform such responsibilities; 
     and
       ``(II) would serve the purposes of this Act as they apply 
     to the geographic area; and

       ``(ii) the Secretary provides the collaborative applicant 
     with the technical assistance necessary to perform such 
     responsibilities as such assistance is agreed to by the 
     collaborative applicant.
       ``(2) Required actions by a unified funding agency.--A 
     collaborative applicant that is either selected or designated 
     as a unified funding agency for a geographic area under 
     paragraph (1) shall--
       ``(A) require each project sponsor who is funded by a grant 
     received under subtitle C to establish such fiscal control 
     and fund accounting procedures as may be necessary to assure 
     the proper disbursal of, and accounting for, Federal funds 
     awarded to the project sponsor under subtitle C in order to 
     ensure that all financial transactions carried out under 
     subtitle C are conducted, and records maintained, in 
     accordance with generally accepted accounting principles; and
       ``(B) arrange for an annual survey, audit, or evaluation of 
     the financial records of each project carried out by a 
     project sponsor funded by a grant received under subtitle C.
       ``(h) Conflict of Interest.--No board member of a 
     collaborative applicant may participate in decisions of the 
     collaborative applicant concerning the award of a grant, or 
     provision of other financial benefits, to such member or the 
     organization that such member represents.''.

     SEC. 1103. GENERAL PROVISIONS.

       Subtitle A of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11361 et seq.) is amended by inserting after 
     section 403 (as so redesignated by section 1101(2) of this 
     division) the following new sections:

     ``SEC. 404. PREVENTING INVOLUNTARY FAMILY SEPARATION.

       ``(a) In General.--After the expiration of the 2-year 
     period that begins upon the date of the enactment of the 
     Homeless Emergency Assistance and Rapid Transition to Housing 
     Act of 2009, and except as provided in subsection (b), any 
     project sponsor receiving funds under this title to provide 
     emergency shelter, transitional housing, or permanent housing 
     to families with children under age 18 shall not deny 
     admission to any family based on the age of any child under 
     age 18.
       ``(b) Exception.--Notwithstanding the requirement under 
     subsection (a), project

[[Page 12781]]

     sponsors of transitional housing receiving funds under this 
     title may target transitional housing resources to families 
     with children of a specific age only if the project sponsor--
       ``(1) operates a transitional housing program that has a 
     primary purpose of implementing an evidence-based practice 
     that requires that housing units be targeted to families with 
     children in a specific age group; and
       ``(2) provides such assurances, as the Secretary shall 
     require, that an equivalent appropriate alternative living 
     arrangement for the whole family or household unit has been 
     secured.

     ``SEC. 405. TECHNICAL ASSISTANCE.

       ``(a) In General.--The Secretary shall make available 
     technical assistance to private nonprofit organizations and 
     other nongovernmental entities, States, metropolitan cities, 
     urban counties, and counties that are not urban counties, to 
     implement effective planning processes for preventing and 
     ending homelessness, to improve their capacity to prepare 
     collaborative applications, to prevent the separation of 
     families in emergency shelter or other housing programs, and 
     to adopt and provide best practices in housing and services 
     for persons experiencing homeless.
       ``(b) Reservation.--The Secretary shall reserve not more 
     than 1 percent of the funds made available for any fiscal 
     year for carrying out subtitles B and C, to provide technical 
     assistance under subsection (a).''.

     SEC. 1104. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION 
                   BY VICTIM SERVICE PROVIDERS.

       Subtitle A of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11361 et seq.), as amended by the preceding 
     provisions of this title, is further amended by adding at the 
     end the following new section:

     ``SEC. 407. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION 
                   BY VICTIM SERVICE PROVIDERS.

       ``In the course of awarding grants or implementing programs 
     under this title, the Secretary shall instruct any victim 
     service provider that is a recipient or subgrantee not to 
     disclose for purposes of the Homeless Management Information 
     System any personally identifying information about any 
     client. The Secretary may, after public notice and comment, 
     require or ask such recipients and subgrantees to disclose 
     for purposes of the Homeless Management Information System 
     non-personally identifying information that has been de-
     identified, encrypted, or otherwise encoded. Nothing in this 
     section shall be construed to supersede any provision of any 
     Federal, State, or local law that provides greater protection 
     than this subsection for victims of domestic violence, dating 
     violence, sexual assault, or stalking.''.

     SEC. 1105. AUTHORIZATION OF APPROPRIATIONS.

       Subtitle A of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11361 et seq.), as amended by the preceding 
     provisions of this title, is further amended by adding at the 
     end the following new section:

     ``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $2,200,000,000 for fiscal year 2010 and such sums as 
     may be necessary for fiscal year 2011.''.

              TITLE II--EMERGENCY SOLUTIONS GRANTS PROGRAM

     SEC. 1201. GRANT ASSISTANCE.

       Subtitle B of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11371 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

          ``Subtitle B--Emergency Solutions Grants Program'';

       (2) by striking section 417 (42 U.S.C. 11377);
       (3) by redesignating sections 413 through 416 (42 U.S.C. 
     11373-6) as sections 414 through 417, respectively; and
       (4) by striking section 412 (42 U.S.C. 11372) and inserting 
     the following:

     ``SEC. 412. GRANT ASSISTANCE.

       ``The Secretary shall make grants to States and local 
     governments (and to private nonprofit organizations providing 
     assistance to persons experiencing homelessness or at risk of 
     homelessness, in the case of grants made with reallocated 
     amounts) for the purpose of carrying out activities described 
     in section 415.

     ``SEC. 413. AMOUNT AND ALLOCATION OF ASSISTANCE.

       ``(a) In General.--Of the amount made available to carry 
     out this subtitle and subtitle C for a fiscal year, the 
     Secretary shall allocate nationally 20 percent of such amount 
     for activities described in section 415. The Secretary shall 
     be required to certify that such allocation will not 
     adversely affect the renewal of existing projects under this 
     subtitle and subtitle C for those individuals or families who 
     are homeless.
       ``(b) Allocation.--An entity that receives a grant under 
     section 412, and serves an area that includes 1 or more 
     geographic areas (or portions of such areas) served by 
     collaborative applicants that submit applications under 
     subtitle C, shall allocate the funds made available through 
     the grant to carry out activities described in section 415, 
     in consultation with the collaborative applicants.''; and
       (5) in section 414(b) (42 U.S.C. 11373(b)), as so 
     redesignated by paragraph (3) of this section, by striking 
     ``amounts appropriated'' and all that follows through ``for 
     any'' and inserting ``amounts appropriated under section 408 
     and made available to carry out this subtitle for any''.

     SEC. 1202. ELIGIBLE ACTIVITIES.

       The McKinney-Vento Homeless Assistance Act is amended by 
     striking section 415 (42 U.S.C. 11374), as so redesignated by 
     section 1201(3) of this division, and inserting the following 
     new section:

     ``SEC. 415. ELIGIBLE ACTIVITIES.

       ``(a) In General.--Assistance provided under section 412 
     may be used for the following activities:
       ``(1) The renovation, major rehabilitation, or conversion 
     of buildings to be used as emergency shelters.
       ``(2) The provision of essential services related to 
     emergency shelter or street outreach, including services 
     concerned with employment, health, education, family support 
     services for homeless youth, substance abuse services, victim 
     services, or mental health services, if--
       ``(A) such essential services have not been provided by the 
     local government during any part of the immediately preceding 
     12-month period or the Secretary determines that the local 
     government is in a severe financial deficit; or
       ``(B) the use of assistance under this subtitle would 
     complement the provision of those essential services.
       ``(3) Maintenance, operation, insurance, provision of 
     utilities, and provision of furnishings related to emergency 
     shelter.
       ``(4) Provision of rental assistance to provide short-term 
     or medium-term housing to homeless individuals or families or 
     individuals or families at risk of homelessness. Such rental 
     assistance may include tenant-based or project-based rental 
     assistance.
       ``(5) Housing relocation or stabilization services for 
     homeless individuals or families or individuals or families 
     at risk of homelessness, including housing search, mediation 
     or outreach to property owners, legal services, credit 
     repair, providing security or utility deposits, utility 
     payments, rental assistance for a final month at a location, 
     assistance with moving costs, or other activities that are 
     effective at--
       ``(A) stabilizing individuals and families in their current 
     housing; or
       ``(B) quickly moving such individuals and families to other 
     permanent housing.
       ``(b) Maximum Allocation for Emergency Shelter 
     Activities.--A grantee of assistance provided under section 
     412 for any fiscal year may not use an amount of such 
     assistance for activities described in paragraphs (1) through 
     (3) of subsection (a) that exceeds the greater of--
       ``(1) 60 percent of the aggregate amount of such assistance 
     provided for the grantee for such fiscal year; or
       ``(2) the amount expended by such grantee for such 
     activities during fiscal year most recently completed before 
     the effective date under section 1503 of the Homeless 
     Emergency Assistance and Rapid Transition to Housing Act of 
     2009.''.

     SEC. 1203. PARTICIPATION IN HOMELESS MANAGEMENT INFORMATION 
                   SYSTEM.

       Section 416 of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11375), as so redesignated by section 1201(3) of 
     this division, is amended by adding at the end the following 
     new subsection:
       ``(f) Participation in HMIS.--The Secretary shall ensure 
     that recipients of funds under this subtitle ensure the 
     consistent participation by emergency shelters and 
     homelessness prevention and rehousing programs in any 
     applicable community-wide homeless management information 
     system.''.

     SEC. 1204. ADMINISTRATIVE PROVISION.

       Section 418 of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11378) is amended by striking ``5 percent'' and 
     inserting ``7.5 percent''.

     SEC. 1205. GAO STUDY OF ADMINISTRATIVE FEES.

       Not later than the expiration of the 12-month period 
     beginning on the date of the enactment of this division, the 
     Comptroller General of the United States shall--
       (1) conduct a study to examine the appropriate 
     administrative costs for administering the program authorized 
     under subtitle B of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11371 et seq.); and
       (2) submit to Congress a report on the findings of the 
     study required under paragraph (1).

                  TITLE III--CONTINUUM OF CARE PROGRAM

     SEC. 1301. CONTINUUM OF CARE.

       The McKinney-Vento Homeless Assistance Act is amended--
       (1) by striking the subtitle heading for subtitle C of 
     title IV (42 U.S.C. 11381 et seq.) and inserting the 
     following:

             ``Subtitle C--Continuum of Care Program''; and

       (2) by striking sections 421 and 422 (42 U.S.C. 11381 and 
     11382) and inserting the following new sections:

     ``SEC. 421. PURPOSES.

       ``The purposes of this subtitle are--
       ``(1) to promote community-wide commitment to the goal of 
     ending homelessness;

[[Page 12782]]

       ``(2) to provide funding for efforts by nonprofit providers 
     and State and local governments to quickly rehouse homeless 
     individuals and families while minimizing the trauma and 
     dislocation caused to individuals, families, and communities 
     by homelessness;
       ``(3) to promote access to, and effective utilization of, 
     mainstream programs described in section 203(a)(7) and 
     programs funded with State or local resources; and
       ``(4) to optimize self-sufficiency among individuals and 
     families experiencing homelessness.

     ``SEC. 422. CONTINUUM OF CARE APPLICATIONS AND GRANTS.

       ``(a) Projects.--The Secretary shall award grants, on a 
     competitive basis, and using the selection criteria described 
     in section 427, to carry out eligible activities under this 
     subtitle for projects that meet the program requirements 
     under section 426, either by directly awarding funds to 
     project sponsors or by awarding funds to unified funding 
     agencies.
       ``(b) Notification of Funding Availability.--The Secretary 
     shall release a notification of funding availability for 
     grants awarded under this subtitle for a fiscal year not 
     later than 3 months after the date of the enactment of the 
     appropriate Act making appropriations for the Department of 
     Housing and Urban Development for such fiscal year.
       ``(c) Applications.--
       ``(1) Submission to the secretary.--To be eligible to 
     receive a grant under subsection (a), a project sponsor or 
     unified funding agency in a geographic area shall submit an 
     application to the Secretary at such time and in such manner 
     as the Secretary may require, and containing such information 
     as the Secretary determines necessary--
       ``(A) to determine compliance with the program requirements 
     and selection criteria under this subtitle; and
       ``(B) to establish priorities for funding projects in the 
     geographic area.
       ``(2) Announcement of awards.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall announce, within 5 months after the last 
     date for the submission of applications described in this 
     subsection for a fiscal year, the grants conditionally 
     awarded under subsection (a) for that fiscal year.
       ``(B) Transition.--For a period of up to 2 years beginning 
     after the effective date under section 1503 of the Homeless 
     Emergency Assistance and Rapid Transition to Housing Act of 
     2009, the Secretary shall announce, within 6 months after the 
     last date for the submission of applications described in 
     this subsection for a fiscal year, the grants conditionally 
     awarded under subsection (a) for that fiscal year.
       ``(d) Obligation, Distribution, and Utilization of Funds.--
       ``(1) Requirements for obligation.--
       ``(A) In general.--Not later than 9 months after the 
     announcement referred to in subsection (c)(2), each recipient 
     or project sponsor shall meet all requirements for the 
     obligation of those funds, including site control, matching 
     funds, and environmental review requirements, except as 
     provided in subparagraphs (B) and (C).
       ``(B) Acquisition, rehabilitation, or construction.--Not 
     later than 24 months after the announcement referred to in 
     subsection (c)(2), each recipient or project sponsor seeking 
     the obligation of funds for acquisition of housing, 
     rehabilitation of housing, or construction of new housing for 
     a grant announced under subsection (c)(2) shall meet all 
     requirements for the obligation of those funds, including 
     site control, matching funds, and environmental review 
     requirements.
       ``(C) Extensions.--At the discretion of the Secretary, and 
     in compelling circumstances, the Secretary may extend the 
     date by which a recipient or project sponsor shall meet the 
     requirements described in subparagraphs (A) and (B) if the 
     Secretary determines that compliance with the requirements 
     was delayed due to factors beyond the reasonable control of 
     the recipient or project sponsor. Such factors may include 
     difficulties in obtaining site control for a proposed 
     project, completing the process of obtaining secure financing 
     for the project, obtaining approvals from State or local 
     governments, or completing the technical submission 
     requirements for the project.
       ``(2) Obligation.--Not later than 45 days after a recipient 
     or project sponsor meets the requirements described in 
     paragraph (1), the Secretary shall obligate the funds for the 
     grant involved.
       ``(3) Distribution.--A recipient that receives funds 
     through such a grant--
       ``(A) shall distribute the funds to project sponsors (in 
     advance of expenditures by the project sponsors); and
       ``(B) shall distribute the appropriate portion of the funds 
     to a project sponsor not later than 45 days after receiving a 
     request for such distribution from the project sponsor.
       ``(4) Expenditure of funds.--The Secretary may establish a 
     date by which funds made available through a grant announced 
     under subsection (c)(2) for a homeless assistance project 
     shall be entirely expended by the recipient or project 
     sponsors involved. The date established under this paragraph 
     shall not occur before the expiration of the 24-month period 
     beginning on the date that funds are obligated for activities 
     described under paragraphs (1) or (2) of section 423(a). The 
     Secretary shall recapture the funds not expended by such 
     date. The Secretary shall reallocate the funds for another 
     homeless assistance and prevention project that meets the 
     requirements of this subtitle to be carried out, if possible 
     and appropriate, in the same geographic area as the area 
     served through the original grant.
       ``(e) Renewal Funding for Unsuccessful Applicants.--The 
     Secretary may renew funding for a specific project previously 
     funded under this subtitle that the Secretary determines 
     meets the purposes of this subtitle, and was included as part 
     of a total application that met the criteria of subsection 
     (c), even if the application was not selected to receive 
     grant assistance. The Secretary may renew the funding for a 
     period of not more than 1 year, and under such conditions as 
     the Secretary determines to be appropriate.
       ``(f) Considerations in Determining Renewal Funding.--When 
     providing renewal funding for leasing, operating costs, or 
     rental assistance for permanent housing, the Secretary shall 
     make adjustments proportional to increases in the fair market 
     rents in the geographic area.
       ``(g) More Than 1 Application for a Geographic Area.--If 
     more than 1 collaborative applicant applies for funds for a 
     geographic area, the Secretary shall award funds to the 
     collaborative applicant with the highest score based on the 
     selection criteria set forth in section 427.
       ``(h) Appeals.--
       ``(1) In general.--The Secretary shall establish a timely 
     appeal procedure for grant amounts awarded or denied under 
     this subtitle pursuant to a collaborative application or solo 
     application for funding.
       ``(2) Process.--The Secretary shall ensure that the 
     procedure permits appeals submitted by entities carrying out 
     homeless housing and services projects (including emergency 
     shelters and homelessness prevention programs), and all other 
     applicants under this subtitle.
       ``(i) Solo Applicants.--A solo applicant may submit an 
     application to the Secretary for a grant under subsection (a) 
     and be awarded such grant on the same basis as such grants 
     are awarded to other applicants based on the criteria 
     described in section 427, but only if the Secretary 
     determines that the solo applicant has attempted to 
     participate in the continuum of care process but was not 
     permitted to participate in a reasonable manner. The 
     Secretary may award such grants directly to such applicants 
     in a manner determined to be appropriate by the Secretary.
       ``(j) Flexibility To Serve Persons Defined as Homeless 
     Under Other Federal Laws.--
       ``(1) In general.--A collaborative applicant may use not 
     more than 10 percent of funds awarded under this subtitle 
     (continuum of care funding) for any of the types of eligible 
     activities specified in paragraphs (1) through (7) of section 
     423(a) to serve families with children and youth defined as 
     homeless under other Federal statutes, or homeless families 
     with children and youth defined as homeless under section 
     103(a)(6), but only if the applicant demonstrates that the 
     use of such funds is of an equal or greater priority or is 
     equally or more cost effective in meeting the overall goals 
     and objectives of the plan submitted under section 
     427(b)(1)(B), especially with respect to children and 
     unaccompanied youth.
       ``(2) Limitations.--The 10 percent limitation under 
     paragraph (1) shall not apply to collaborative applicants in 
     which the rate of homelessness, as calculated in the most 
     recent point in time count, is less than one-tenth of 1 
     percent of total population.
       ``(3) Treatment of certain populations.--
       ``(A) In general.--Notwithstanding section 103(a) and 
     subject to subparagraph (B), funds awarded under this 
     subtitle may be used for eligible activities to serve 
     unaccompanied youth and homeless families and children 
     defined as homeless under section 103(a)(6) only pursuant to 
     paragraph (1) of this subsection and such families and 
     children shall not otherwise be considered as homeless for 
     purposes of this subtitle.
       ``(B) At risk of homelessness.--Subparagraph (A) may not be 
     construed to prevent any unaccompanied youth and homeless 
     families and children defined as homeless under section 
     103(a)(6) from qualifying for, and being treated for purposes 
     of this subtitle as, at risk of homelessness or from 
     eligibility for any projects, activities, or services carried 
     out using amounts provided under this subtitle for which 
     individuals or families that are at risk of homelessness are 
     eligible.''.

     SEC. 1302. ELIGIBLE ACTIVITIES.

       The McKinney-Vento Homeless Assistance Act is amended by 
     striking section 423 (42 U.S.C. 11383) and inserting the 
     following new section:

     ``SEC. 423. ELIGIBLE ACTIVITIES.

       ``(a) In General.--Grants awarded under section 422 to 
     qualified applicants shall be used to carry out projects that 
     serve homeless individuals or families that consist of one or 
     more of the following eligible activities:

[[Page 12783]]

       ``(1) Construction of new housing units to provide 
     transitional or permanent housing.
       ``(2) Acquisition or rehabilitation of a structure to 
     provide transitional or permanent housing, other than 
     emergency shelter, or to provide supportive services.
       ``(3) Leasing of property, or portions of property, not 
     owned by the recipient or project sponsor involved, for use 
     in providing transitional or permanent housing, or providing 
     supportive services.
       ``(4) Provision of rental assistance to provide 
     transitional or permanent housing to eligible persons. The 
     rental assistance may include tenant-based, project-based, or 
     sponsor-based rental assistance. Project-based rental 
     assistance, sponsor-based rental assistance, and operating 
     cost assistance contracts carried out by project sponsors 
     receiving grants under this section may, at the discretion of 
     the applicant and the project sponsor, have an initial term 
     of 15 years, with assistance for the first 5 years paid with 
     funds authorized for appropriation under this Act, and 
     assistance for the remainder of the term treated as a renewal 
     of an expiring contract as provided in section 429. Project-
     based rental assistance may include rental assistance to 
     preserve existing permanent supportive housing for homeless 
     individuals and families.
       ``(5) Payment of operating costs for housing units assisted 
     under this subtitle or for the preservation of housing that 
     will serve homeless individuals and families and for which 
     another form of assistance is expiring or otherwise no longer 
     available.
       ``(6) Supportive services for individuals and families who 
     are currently homeless, who have been homeless in the prior 
     six months but are currently residing in permanent housing, 
     or who were previously homeless and are currently residing in 
     permanent supportive housing.
       ``(7) Provision of rehousing services, including housing 
     search, mediation or outreach to property owners, credit 
     repair, providing security or utility deposits, rental 
     assistance for a final month at a location, assistance with 
     moving costs, or other activities that--
       ``(A) are effective at moving homeless individuals and 
     families immediately into housing; or
       ``(B) may benefit individuals and families who in the prior 
     6 months have been homeless, but are currently residing in 
     permanent housing.
       ``(8) In the case of a collaborative applicant that is a 
     legal entity, performance of the duties described under 
     section 402(f)(3).
       ``(9) Operation of, participation in, and ensuring 
     consistent participation by project sponsors in, a community-
     wide homeless management information system.
       ``(10) In the case of a collaborative applicant that is a 
     legal entity, payment of administrative costs related to 
     meeting the requirements described in paragraphs (1) and (2) 
     of section 402(f), for which the collaborative applicant may 
     use not more than 3 percent of the total funds made available 
     in the geographic area under this subtitle for such costs.
       ``(11) In the case of a collaborative applicant that is a 
     unified funding agency under section 402(g), payment of 
     administrative costs related to meeting the requirements of 
     that section, for which the unified funding agency may use 
     not more than 3 percent of the total funds made available in 
     the geographic area under this subtitle for such costs, in 
     addition to funds used under paragraph (10).
       ``(12) Payment of administrative costs to project sponsors, 
     for which each project sponsor may use not more than 10 
     percent of the total funds made available to that project 
     sponsor through this subtitle for such costs.
       ``(b) Minimum Grant Terms.--The Secretary may impose 
     minimum grant terms of up to 5 years for new projects 
     providing permanent housing.
       ``(c) Use Restrictions.--
       ``(1) Acquisition, rehabilitation, and new construction.--A 
     project that consists of activities described in paragraph 
     (1) or (2) of subsection (a) shall be operated for the 
     purpose specified in the application submitted for the 
     project under section 422 for not less than 15 years.
       ``(2) Other activities.--A project that consists of 
     activities described in any of paragraphs (3) through (12) of 
     subsection (a) shall be operated for the purpose specified in 
     the application submitted for the project under section 422 
     for the duration of the grant period involved.
       ``(3) Conversion.--If the recipient or project sponsor 
     carrying out a project that provides transitional or 
     permanent housing submits a request to the Secretary to carry 
     out instead a project for the direct benefit of low-income 
     persons, and the Secretary determines that the initial 
     project is no longer needed to provide transitional or 
     permanent housing, the Secretary may approve the project 
     described in the request and authorize the recipient or 
     project sponsor to carry out that project.
       ``(d) Repayment of Assistance and Prevention of Undue 
     Benefits.--
       ``(1) Repayment.--If a recipient or project sponsor 
     receives assistance under section 422 to carry out a project 
     that consists of activities described in paragraph (1) or (2) 
     of subsection (a) and the project ceases to provide 
     transitional or permanent housing--
       ``(A) earlier than 10 years after operation of the project 
     begins, the Secretary shall require the recipient or project 
     sponsor to repay 100 percent of the assistance; or
       ``(B) not earlier than 10 years, but earlier than 15 years, 
     after operation of the project begins, the Secretary shall 
     require the recipient or project sponsor to repay 20 percent 
     of the assistance for each of the years in the 15-year period 
     for which the project fails to provide that housing.
       ``(2) Prevention of undue benefits.--Except as provided in 
     paragraph (3), if any property is used for a project that 
     receives assistance under subsection (a) and consists of 
     activities described in paragraph (1) or (2) of subsection 
     (a), and the sale or other disposition of the property occurs 
     before the expiration of the 15-year period beginning on the 
     date that operation of the project begins, the recipient or 
     project sponsor who received the assistance shall comply with 
     such terms and conditions as the Secretary may prescribe to 
     prevent the recipient or project sponsor from unduly 
     benefitting from such sale or disposition.
       ``(3) Exception.--A recipient or project sponsor shall not 
     be required to make the repayments, and comply with the terms 
     and conditions, required under paragraph (1) or (2) if--
       ``(A) the sale or disposition of the property used for the 
     project results in the use of the property for the direct 
     benefit of very low-income persons;
       ``(B) all of the proceeds of the sale or disposition are 
     used to provide transitional or permanent housing meeting the 
     requirements of this subtitle;
       ``(C) project-based rental assistance or operating cost 
     assistance from any Federal program or an equivalent State or 
     local program is no longer made available and the project is 
     meeting applicable performance standards, provided that the 
     portion of the project that had benefitted from such 
     assistance continues to meet the tenant income and rent 
     restrictions for low-income units under section 42(g) of the 
     Internal Revenue Code of 1986; or
       ``(D) there are no individuals and families in the 
     geographic area who are homeless, in which case the project 
     may serve individuals and families at risk of homelessness.
       ``(e) Staff Training.--The Secretary may allow reasonable 
     costs associated with staff training to be included as part 
     of the activities described in subsection (a).
       ``(f) Eligibility for Permanent Housing.--Any project that 
     receives assistance under subsection (a) and that provides 
     project-based or sponsor-based permanent housing for homeless 
     individuals or families with a disability, including projects 
     that meet the requirements of subsection (a) and subsection 
     (d)(2)(A) of section 428 may also serve individuals who had 
     previously met the requirements for such project prior to 
     moving into a different permanent housing project.
       ``(g) Administration of Rental Assistance.--Provision of 
     permanent housing rental assistance shall be administered by 
     a State, unit of general local government, or public housing 
     agency.''.

     SEC. 1303. HIGH PERFORMING COMMUNITIES.

       The McKinney-Vento Homeless Assistance Act is amended by 
     striking section 424 (42 U.S.C. 11384) and inserting the 
     following:

     ``SEC. 424. INCENTIVES FOR HIGH-PERFORMING COMMUNITIES.

       ``(a) Designation as a High-Performing Community.--
       ``(1) In general.--The Secretary shall designate, on an 
     annual basis, which collaborative applicants represent high-
     performing communities.
       ``(2) Consideration.--In determining whether to designate a 
     collaborative applicant as a high-performing community under 
     paragraph (1), the Secretary shall establish criteria to 
     ensure that the requirements described under paragraphs 
     (1)(B) and (2)(B) of subsection (d) are measured by comparing 
     homeless individuals and families under similar 
     circumstances, in order to encourage projects in the 
     geographic area to serve homeless individuals and families 
     with more severe barriers to housing stability.
       ``(3) 2-year phase in.--In each of the first 2 years after 
     the effective date under section 1503 of the Homeless 
     Emergency Assistance and Rapid Transition to Housing Act of 
     2009, the Secretary shall designate not more than 10 
     collaborative applicants as high-performing communities.
       ``(4) Excess of qualified applicants.--If, during the 2-
     year period described under paragraph (2), more than 10 
     collaborative applicants could qualify to be designated as 
     high-performing communities, the Secretary shall designate 
     the 10 that have, in the discretion of the Secretary, the 
     best performance based on the criteria described under 
     subsection (d).
       ``(5) Time limit on designation.--The designation of any 
     collaborative applicant as a high-performing community under 
     this subsection shall be effective only for the year in which 
     such designation is made. The Secretary, on an annual basis, 
     may renew any such designation.
       ``(b) Application.--

[[Page 12784]]

       ``(1) In general.--A collaborative applicant seeking 
     designation as a high-performing community under subsection 
     (a) shall submit an application to the Secretary at such 
     time, and in such manner as the Secretary may require.
       ``(2) Content of application.--In any application submitted 
     under paragraph (1), a collaborative applicant shall include 
     in such application--
       ``(A) a report showing how any money received under this 
     subtitle in the preceding year was expended; and
       ``(B) information that such applicant can meet the 
     requirements described under subsection (d).
       ``(3) Publication of application.--The Secretary shall--
       ``(A) publish any report or information submitted in an 
     application under this section in the geographic area 
     represented by the collaborative applicant; and
       ``(B) seek comments from the public as to whether the 
     collaborative applicant seeking designation as a high-
     performing community meets the requirements described under 
     subsection (d).
       ``(c) Use of Funds.--Funds awarded under section 422(a) to 
     a project sponsor who is located in a high-performing 
     community may be used--
       ``(1) for any of the eligible activities described in 
     section 423; or
       ``(2) for any of the eligible activities described in 
     paragraphs (4) and (5) of section 415(a).
       ``(d) Definition of High-Performing Community.--For 
     purposes of this section, the term `high-performing 
     community' means a geographic area that demonstrates through 
     reliable data that all five of the following requirements are 
     met for that geographic area:
       ``(1) Term of homelessness.--The mean length of episodes of 
     homelessness for that geographic area--
       ``(A) is less than 20 days; or
       ``(B) for individuals and families in similar circumstances 
     in the preceding year was at least 10 percent less than in 
     the year before.
       ``(2) Families leaving homelessness.--Of individuals and 
     families--
       ``(A) who leave homelessness, fewer than 5 percent of such 
     individuals and families become homeless again at any time 
     within the next 2 years; or
       ``(B) in similar circumstances who leave homelessness, the 
     percentage of such individuals and families who become 
     homeless again within the next 2 years has decreased by at 
     least 20 percent from the preceding year.
       ``(3) Community action.--The communities that compose the 
     geographic area have--
       ``(A) actively encouraged homeless individuals and families 
     to participate in homeless assistance services available in 
     that geographic area; and
       ``(B) included each homeless individual or family who 
     sought homeless assistance services in the data system used 
     by that community for determining compliance with this 
     subsection.
       ``(4) Effectiveness of previous activities.--If recipients 
     in the geographic area have used funding awarded under 
     section 422(a) for eligible activities described under 
     section 415(a) in previous years based on the authority 
     granted under subsection (c), that such activities were 
     effective at reducing the number of individuals and families 
     who became homeless in that community.
       ``(5) Flexibility to serve persons defined as homeless 
     under other federal laws.--With respect to collaborative 
     applicants exercising the authority under section 422(j) to 
     serve homeless families with children and youth defined as 
     homeless under other Federal statutes, effectiveness in 
     achieving the goals and outcomes identified in subsection 
     427(b)(1)(F) according to such standards as the Secretary 
     shall promulgate.
       ``(e) Cooperation Among Entities.--A collaborative 
     applicant designated as a high-performing community under 
     this section shall cooperate with the Secretary in 
     distributing information about successful efforts within the 
     geographic area represented by the collaborative applicant to 
     reduce homelessness.''.

     SEC. 1304. PROGRAM REQUIREMENTS.

       Section 426 of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11386) is amended--
       (1) by striking subsections (a), (b), and (c) and inserting 
     the following:
       ``(a) Site Control.--The Secretary shall require that each 
     application include reasonable assurances that the applicant 
     will own or have control of a site for the proposed project 
     not later than the expiration of the 12-month period 
     beginning upon notification of an award for grant assistance, 
     unless the application proposes providing supportive housing 
     assistance under section 423(a)(3) or housing that will 
     eventually be owned or controlled by the families and 
     individuals served. An applicant may obtain ownership or 
     control of a suitable site different from the site specified 
     in the application. If any recipient or project sponsor fails 
     to obtain ownership or control of the site within 12 months 
     after notification of an award for grant assistance, the 
     grant shall be recaptured and reallocated under this 
     subtitle.
       ``(b) Required Agreements.--The Secretary may not provide 
     assistance for a proposed project under this subtitle unless 
     the collaborative applicant involved agrees--
       ``(1) to ensure the operation of the project in accordance 
     with the provisions of this subtitle;
       ``(2) to monitor and report to the Secretary the progress 
     of the project;
       ``(3) to ensure, to the maximum extent practicable, that 
     individuals and families experiencing homelessness are 
     involved, through employment, provision of volunteer 
     services, or otherwise, in constructing, rehabilitating, 
     maintaining, and operating facilities for the project and in 
     providing supportive services for the project;
       ``(4) to require certification from all project sponsors 
     that--
       ``(A) they will maintain the confidentiality of records 
     pertaining to any individual or family provided family 
     violence prevention or treatment services through the 
     project;
       ``(B) that the address or location of any family violence 
     shelter project assisted under this subtitle will not be made 
     public, except with written authorization of the person 
     responsible for the operation of such project;
       ``(C) they will establish policies and practices that are 
     consistent with, and do not restrict the exercise of rights 
     provided by, subtitle B of title VII, and other laws relating 
     to the provision of educational and related services to 
     individuals and families experiencing homelessness;
       ``(D) in the case of programs that provide housing or 
     services to families, they will designate a staff person to 
     be responsible for ensuring that children being served in the 
     program are enrolled in school and connected to appropriate 
     services in the community, including early childhood programs 
     such as Head Start, part C of the Individuals with 
     Disabilities Education Act, and programs authorized under 
     subtitle B of title VII of this Act(42 U.S.C. 11431 et seq.); 
     and
       ``(E) they will provide data and reports as required by the 
     Secretary pursuant to the Act;
       ``(5) if a collaborative applicant is a unified funding 
     agency under section 402(g) and receives funds under subtitle 
     C to carry out the payment of administrative costs described 
     in section 423(a)(11), to establish such fiscal control and 
     fund accounting procedures as may be necessary to assure the 
     proper disbursal of, and accounting for, such funds in order 
     to ensure that all financial transactions carried out with 
     such funds are conducted, and records maintained, in 
     accordance with generally accepted accounting principles;
       ``(6) to monitor and report to the Secretary the provision 
     of matching funds as required by section 430;
       ``(7) to take the educational needs of children into 
     account when families are placed in emergency or transitional 
     shelter and will, to the maximum extent practicable, place 
     families with children as close as possible to their school 
     of origin so as not to disrupt such children's education; and
       ``(8) to comply with such other terms and conditions as the 
     Secretary may establish to carry out this subtitle in an 
     effective and efficient manner.'';
       (2) by redesignating subsection (d) as subsection (c);
       (3) in the first sentence of subsection (c) (as so 
     redesignated by paragraph (2) of this subsection), by 
     striking ``recipient'' and inserting ``recipient or project 
     sponsor'';
       (4) by striking subsection (e);
       (5) by redesignating subsections (f), (g), and (h), as 
     subsections (d), (e), and (f), respectively;
       (6) in the first sentence of subsection (e) (as so 
     redesignated by paragraph (5) of this section), by striking 
     ``recipient'' each place it appears and inserting ``recipient 
     or project sponsor'';
       (7) by striking subsection (i); and
       (8) by redesignating subsection (j) as subsection (g).

     SEC. 1305. SELECTION CRITERIA, ALLOCATION AMOUNTS, AND 
                   FUNDING.

       The McKinney-Vento Homeless Assistance Act is amended--
       (1) by repealing section 429 (42 U.S.C. 11389); and
       (2) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
     11388) as sections 432 and 433, respectively; and
       (3) by inserting after section 426 the following new 
     sections:

     ``SEC. 427. SELECTION CRITERIA.

       ``(a) In General.--The Secretary shall award funds to 
     recipients through a national competition between geographic 
     areas based on criteria established by the Secretary.
       ``(b) Required Criteria.--
       ``(1) In general.--The criteria established under 
     subsection (a) shall include--
       ``(A) the previous performance of the recipient regarding 
     homelessness, including performance related to funds provided 
     under section 412 (except that recipients applying from 
     geographic areas where no funds have been awarded under this 
     subtitle, or under subtitles C, D, E, or F of title IV of 
     this Act, as in effect prior to the date of the enactment of 
     the Homeless Emergency Assistance and Rapid Transition to 
     Housing Act of 2009, shall receive full credit for 
     performance under this subparagraph), measured by criteria 
     that shall be announced by the Secretary, that shall take 
     into account barriers

[[Page 12785]]

     faced by individual homeless people, and that shall include--
       ``(i) the length of time individuals and families remain 
     homeless;
       ``(ii) the extent to which individuals and families who 
     leave homelessness experience additional spells of 
     homelessness;
       ``(iii) the thoroughness of grantees in the geographic area 
     in reaching homeless individuals and families;
       ``(iv) overall reduction in the number of homeless 
     individuals and families;
       ``(v) jobs and income growth for homeless individuals and 
     families;
       ``(vi) success at reducing the number of individuals and 
     families who become homeless;
       ``(vii) other accomplishments by the recipient related to 
     reducing homelessness; and
       ``(viii) for collaborative applicants that have exercised 
     the authority under section 422(j) to serve families with 
     children and youth defined as homeless under other Federal 
     statutes, success in achieving the goals and outcomes 
     identified in section 427(b)(1)(F);
       ``(B) the plan of the recipient, which shall describe--
       ``(i) how the number of individuals and families who become 
     homeless will be reduced in the community;
       ``(ii) how the length of time that individuals and families 
     remain homeless will be reduced;
       ``(iii) how the recipient will collaborate with local 
     education authorities to assist in the identification of 
     individuals and families who become or remain homeless and 
     are informed of their eligibility for services under subtitle 
     B of title VII of this Act (42 U.S.C. 11431 et seq.);
       ``(iv) the extent to which the recipient will--

       ``(I) address the needs of all relevant subpopulations;
       ``(II) incorporate comprehensive strategies for reducing 
     homelessness, including the interventions referred to in 
     section 428(d);
       ``(III) set quantifiable performance measures;
       ``(IV) set timelines for completion of specific tasks;
       ``(V) identify specific funding sources for planned 
     activities; and
       ``(VI) identify an individual or body responsible for 
     overseeing implementation of specific strategies; and

       ``(v) whether the recipient proposes to exercise authority 
     to use funds under section 422(j), and if so, how the 
     recipient will achieve the goals and outcomes identified in 
     section 427(b)(1)(F);
       ``(C) the methodology of the recipient used to determine 
     the priority for funding local projects under section 
     422(c)(1), including the extent to which the priority-setting 
     process--
       ``(i) uses periodically collected information and analysis 
     to determine the extent to which each project has resulted in 
     rapid return to permanent housing for those served by the 
     project, taking into account the severity of barriers faced 
     by the people the project serves;
       ``(ii) considers the full range of opinions from 
     individuals or entities with knowledge of homelessness in the 
     geographic area or an interest in preventing or ending 
     homelessness in the geographic area;
       ``(iii) is based on objective criteria that have been 
     publicly announced by the recipient; and
       ``(iv) is open to proposals from entities that have not 
     previously received funds under this subtitle;
       ``(D) the extent to which the amount of assistance to be 
     provided under this subtitle to the recipient will be 
     supplemented with resources from other public and private 
     sources, including mainstream programs identified by the 
     Government Accountability Office in the two reports described 
     in section 203(a)(7);
       ``(E) demonstrated coordination by the recipient with the 
     other Federal, State, local, private, and other entities 
     serving individuals and families experiencing homelessness 
     and at risk of homelessness in the planning and operation of 
     projects;
       ``(F) for collaborative applicants exercising the authority 
     under section 422(j) to serve homeless families with children 
     and youth defined as homeless under other Federal statutes, 
     program goals and outcomes, which shall include--
       ``(i) preventing homelessness among the subset of such 
     families with children and youth who are at highest risk of 
     becoming homeless, as such term is defined for purposes of 
     this title; or
       ``(ii) achieving independent living in permanent housing 
     among such families with children and youth, especially those 
     who have a history of doubled-up and other temporary housing 
     situations or are living in a temporary housing situation due 
     to lack of available and appropriate emergency shelter, 
     through the provision of eligible assistance that directly 
     contributes to achieving such results including assistance to 
     address chronic disabilities, chronic physical health or 
     mental health conditions, substance addiction, histories of 
     domestic violence or childhood abuse, or multiple barriers to 
     employment; and
       ``(G) such other factors as the Secretary determines to be 
     appropriate to carry out this subtitle in an effective and 
     efficient manner.
       ``(2) Additional criteria.--In addition to the criteria 
     required under paragraph (1), the criteria established under 
     paragraph (1) shall also include the need within the 
     geographic area for homeless services, determined as follows 
     and under the following conditions:
       ``(A) Notice.--The Secretary shall inform each 
     collaborative applicant, at a time concurrent with the 
     release of the notice of funding availability for the grants, 
     of the pro rata estimated grant amount under this subtitle 
     for the geographic area represented by the collaborative 
     applicant.
       ``(B) Amount.--
       ``(i) Formula.--Such estimated grant amounts shall be 
     determined by a formula, which shall be developed by the 
     Secretary, by regulation, not later than the expiration of 
     the 2-year period beginning upon the date of the enactment of 
     the Homeless Emergency Assistance and Rapid Transition to 
     Housing Act of 2009, that is based upon factors that are 
     appropriate to allocate funds to meet the goals and 
     objectives of this subtitle.
       ``(ii) Combinations or consortia.--For a collaborative 
     applicant that represents a combination or consortium of 
     cities or counties, the estimated need amount shall be the 
     sum of the estimated need amounts for the cities or counties 
     represented by the collaborative applicant.
       ``(iii) Authority of secretary.--Subject to the 
     availability of appropriations, the Secretary shall increase 
     the estimated need amount for a geographic area if necessary 
     to provide 1 year of renewal funding for all expiring 
     contracts entered into under this subtitle for the geographic 
     area.
       ``(3) Homelessness counts.--The Secretary shall not require 
     that communities conduct an actual count of homeless people 
     other than those described in paragraphs (1) through (4) of 
     section 103(a) of this Act (42 U.S.C. 11302(a)).
       ``(c) Adjustments.--The Secretary may adjust the formula 
     described in subsection (b)(2) as necessary--
       ``(1) to ensure that each collaborative applicant has 
     sufficient funding to renew all qualified projects for at 
     least one year; and
       ``(2) to ensure that collaborative applicants are not 
     discouraged from replacing renewal projects with new projects 
     that the collaborative applicant determines will better be 
     able to meet the purposes of this Act.

     ``SEC. 428. ALLOCATION OF AMOUNTS AND INCENTIVES FOR SPECIFIC 
                   ELIGIBLE ACTIVITIES.

       ``(a) Minimum Allocation for Permanent Housing for Homeless 
     Individuals and Families With Disabilities.--
       ``(1) In general.--From the amounts made available to carry 
     out this subtitle for a fiscal year, a portion equal to not 
     less than 30 percent of the sums made available to carry out 
     subtitle B and this subtitle, shall be used for permanent 
     housing for homeless individuals with disabilities and 
     homeless families that include such an individual who is an 
     adult or a minor head of household if no adult is present in 
     the household.
       ``(2) Calculation.--In calculating the portion of the 
     amount described in paragraph (1) that is used for activities 
     that are described in paragraph (1), the Secretary shall not 
     count funds made available to renew contracts for existing 
     projects under section 429.
       ``(3) Adjustment.--The 30 percent figure in paragraph (1) 
     shall be reduced proportionately based on need under section 
     427(b)(2) in geographic areas for which subsection (e) 
     applies in regard to subsection (d)(2)(A).
       ``(4) Suspension.--The requirement established in paragraph 
     (1) shall be suspended for any year in which funding 
     available for grants under this subtitle after making the 
     allocation established in paragraph (1) would not be 
     sufficient to renew for 1 year all existing grants that would 
     otherwise be fully funded under this subtitle.
       ``(5) Termination.--The requirement established in 
     paragraph (1) shall terminate upon a finding by the Secretary 
     that since the beginning of 2001 at least 150,000 new units 
     of permanent housing for homeless individuals and families 
     with disabilities have been funded under this subtitle.
       ``(b) Set-Aside for Permanent Housing for Homeless Families 
     With Children.--From the amounts made available to carry out 
     this subtitle for a fiscal year, a portion equal to not less 
     than 10 percent of the sums made available to carry out 
     subtitle B and this subtitle for that fiscal year shall be 
     used to provide or secure permanent housing for homeless 
     families with children.
       ``(c) Treatment of Amounts for Permanent or Transitional 
     Housing.--Nothing in this Act may be construed to establish a 
     limit on the amount of funding that an applicant may request 
     under this subtitle for acquisition, construction, or 
     rehabilitation activities for the development of permanent 
     housing or transitional housing.
       ``(d) Incentives for Proven Strategies.--
       ``(1) In general.--The Secretary shall provide bonuses or 
     other incentives to geographic areas for using funding under 
     this subtitle for activities that have been proven to be 
     effective at reducing homelessness generally, reducing 
     homelessness for a specific subpopulation, or achieving 
     homeless prevention and independent living goals as set forth 
     in section 427(b)(1)(F).

[[Page 12786]]

       ``(2) Rule of construction.--For purposes of this 
     subsection, activities that have been proven to be effective 
     at reducing homelessness generally or reducing homelessness 
     for a specific subpopulation includes--
       ``(A) permanent supportive housing for chronically homeless 
     individuals and families;
       ``(B) for homeless families, rapid rehousing services, 
     short-term flexible subsidies to overcome barriers to 
     rehousing, support services concentrating on improving 
     incomes to pay rent, coupled with performance measures 
     emphasizing rapid and permanent rehousing and with leveraging 
     funding from mainstream family service systems such as 
     Temporary Assistance for Needy Families and Child Welfare 
     services; and
       ``(C) any other activity determined by the Secretary, based 
     on research and after notice and comment to the public, to 
     have been proven effective at reducing homelessness 
     generally, reducing homelessness for a specific 
     subpopulation, or achieving homeless prevention and 
     independent living goals as set forth in section 
     427(b)(1)(F).
       ``(3) Balance of incentives for proven strategies.--To the 
     extent practicable, in providing bonuses or incentives for 
     proven strategies, the Secretary shall seek to maintain a 
     balance among strategies targeting homeless individuals, 
     families, and other subpopulations. The Secretary shall not 
     implement bonuses or incentives that specifically discourage 
     collaborative applicants from exercising their flexibility to 
     serve families with children and youth defined as homeless 
     under other Federal statutes.
       ``(e) Incentives for Successful Implementation of Proven 
     Strategies.--If any geographic area demonstrates that it has 
     fully implemented any of the activities described in 
     subsection (d) for all homeless individuals and families or 
     for all members of subpopulations for whom such activities 
     are targeted, that geographic area shall receive the bonus or 
     incentive provided under subsection (d), but may use such 
     bonus or incentive for any eligible activity under either 
     section 423 or paragraphs (4) and (5) of section 415(a) for 
     homeless people generally or for the relevant subpopulation.

     ``SEC. 429. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR 
                   PERMANENT HOUSING.

       ``(a) In General.--Renewal of expiring contracts for 
     leasing, rental assistance, or operating costs for permanent 
     housing contracts may be funded either--
       ``(1) under the appropriations account for this title; or
       ``(2) the section 8 project-based rental assistance 
     account.
       ``(b) Renewals.--The sums made available under subsection 
     (a) shall be available for the renewal of contracts in the 
     case of tenant-based assistance, successive 1-year terms, and 
     in the case of project-based assistance, successive terms of 
     up to 15 years at the discretion of the applicant or project 
     sponsor and subject to the availability of annual 
     appropriations, for rental assistance and housing operation 
     costs associated with permanent housing projects funded under 
     this subtitle, or under subtitle C or F (as in effect on the 
     day before the effective date of the Homeless Emergency 
     Assistance and Rapid Transition to Housing Act of 2009). The 
     Secretary shall determine whether to renew a contract for 
     such a permanent housing project on the basis of 
     certification by the collaborative applicant for the 
     geographic area that--
       ``(1) there is a demonstrated need for the project; and
       ``(2) the project complies with program requirements and 
     appropriate standards of housing quality and habitability, as 
     determined by the Secretary.
       ``(c) Construction.--Nothing in this section shall be 
     construed as prohibiting the Secretary from renewing 
     contracts under this subtitle in accordance with criteria set 
     forth in a provision of this subtitle other than this 
     section.

     ``SEC. 430. MATCHING FUNDING.

       ``(a) In General.--A collaborative applicant in a 
     geographic area in which funds are awarded under this 
     subtitle shall specify contributions from any source other 
     than a grant awarded under this subtitle, including renewal 
     funding of projects assisted under subtitles C, D, and F of 
     this title as in effect before the effective date under 
     section 1503 of the Homeless Emergency Assistance and Rapid 
     Transition to Housing Act of 2009, that shall be made 
     available in the geographic area in an amount equal to not 
     less than 25 percent of the funds provided to recipients in 
     the geographic area, except that grants for leasing shall not 
     be subject to any match requirement.
       ``(b) Limitations on In-Kind Match.--The cash value of 
     services provided to the residents or clients of a project 
     sponsor by an entity other than the project sponsor may count 
     toward the contributions in subsection (a) only when 
     documented by a memorandum of understanding between the 
     project sponsor and the other entity that such services will 
     be provided.
       ``(c) Countable Activities.--The contributions required 
     under subsection (a) may consist of--
       ``(1) funding for any eligible activity described under 
     section 423; and
       ``(2) subject to subsection (b), in-kind provision of 
     services of any eligible activity described under section 
     423.

     ``SEC. 431. APPEAL PROCEDURE.

       ``(a) In General.--With respect to funding under this 
     subtitle, if certification of consistency with the 
     consolidated plan pursuant to section 403 is withheld from an 
     applicant who has submitted an application for that 
     certification, such applicant may appeal such decision to the 
     Secretary.
       ``(b) Procedure.--The Secretary shall establish a procedure 
     to process the appeals described in subsection (a).
       ``(c) Determination.--Not later than 45 days after the date 
     of receipt of an appeal described in subsection (a), the 
     Secretary shall determine if certification was unreasonably 
     withheld. If such certification was unreasonably withheld, 
     the Secretary shall review such application and determine if 
     such applicant shall receive funding under this subtitle.''.

     SEC. 1306. RESEARCH.

       There is authorized to be appropriated $8,000,000, for each 
     of fiscal years 2010 and 2011, for research into the efficacy 
     of interventions for homeless families, to be expended by the 
     Secretary of Housing and Urban Development over the 2 years 
     at 3 different sites to provide services for homeless 
     families and evaluate the effectiveness of such services.

          TITLE IV--RURAL HOUSING STABILITY ASSISTANCE PROGRAM

     SEC. 1401. RURAL HOUSING STABILITY ASSISTANCE.

       Subtitle G of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11408 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

    ``Subtitle G--Rural Housing Stability Assistance Program''; and

       (2) in section 491--
       (A) by striking the section heading and inserting ``RURAL 
     HOUSING STABILITY GRANT PROGRAM.'';
       (B) in subsection (a)--
       (i) by striking ``rural homelessness grant program'' and 
     inserting ``rural housing stability grant program'';
       (ii) by inserting ``in lieu of grants under subtitle C'' 
     after ``eligible organizations''; and
       (iii) by striking paragraphs (1), (2), and (3), and 
     inserting the following:
       ``(1) rehousing or improving the housing situations of 
     individuals and families who are homeless or in the worst 
     housing situations in the geographic area;
       ``(2) stabilizing the housing of individuals and families 
     who are in imminent danger of losing housing; and
       ``(3) improving the ability of the lowest-income residents 
     of the community to afford stable housing.'';
       (C) in subsection (b)(1)--
       (i) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (I), (J), and (K), respectively; and
       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) construction of new housing units to provide 
     transitional or permanent housing to homeless individuals and 
     families and individuals and families at risk of 
     homelessness;
       ``(E) acquisition or rehabilitation of a structure to 
     provide supportive services or to provide transitional or 
     permanent housing, other than emergency shelter, to homeless 
     individuals and families and individuals and families at risk 
     of homelessness;
       ``(F) leasing of property, or portions of property, not 
     owned by the recipient or project sponsor involved, for use 
     in providing transitional or permanent housing to homeless 
     individuals and families and individuals and families at risk 
     of homelessness, or providing supportive services to such 
     homeless and at-risk individuals and families;
       ``(G) provision of rental assistance to provide 
     transitional or permanent housing to homeless individuals and 
     families and individuals and families at risk of 
     homelessness, such rental assistance may include tenant-based 
     or project-based rental assistance;
       ``(H) payment of operating costs for housing units assisted 
     under this title;'';
       (D) in subsection (b)(2), by striking ``appropriated'' and 
     inserting ``transferred'';
       (E) in subsection (c)--
       (i) in paragraph (1)(A), by striking ``appropriated'' and 
     inserting ``transferred''; and
       (ii) in paragraph (3), by striking ``appropriated'' and 
     inserting ``transferred'';
       (F) in subsection (d)--
       (i) in paragraph (5), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in paragraph (6)--

       (I) by striking ``an agreement'' and all that follows 
     through ``families'' and inserting the following: ``a 
     description of how individuals and families who are homeless 
     or who have the lowest incomes in the community will be 
     involved by the organization''; and
       (II) by striking the period at the end, and inserting a 
     semicolon; and

       (iii) by adding at the end the following:
       ``(7) a description of consultations that took place within 
     the community to ascertain the most important uses for 
     funding under this section, including the involvement of 
     potential beneficiaries of the project; and

[[Page 12787]]

       ``(8) a description of the extent and nature of 
     homelessness and of the worst housing situations in the 
     community.'';
       (G) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) Matching Funding.--
       ``(1) In general.--An organization eligible to receive a 
     grant under subsection (a) shall specify matching 
     contributions from any source other than a grant awarded 
     under this subtitle, that shall be made available in the 
     geographic area in an amount equal to not less than 25 
     percent of the funds provided for the project or activity, 
     except that grants for leasing shall not be subject to any 
     match requirement.
       ``(2) Limitations on in-kind match.--The cash value of 
     services provided to the beneficiaries or clients of an 
     eligible organization by an entity other than the 
     organization may count toward the contributions in paragraph 
     (1) only when documented by a memorandum of understanding 
     between the organization and the other entity that such 
     services will be provided.
       ``(3) Countable activities.--The contributions required 
     under paragraph (1) may consist of--
       ``(A) funding for any eligible activity described under 
     subsection (b); and
       ``(B) subject to paragraph (2), in-kind provision of 
     services of any eligible activity described under subsection 
     (b).
       ``(g) Selection Criteria.--The Secretary shall establish 
     criteria for selecting recipients of grants under subsection 
     (a), including--
       ``(1) the participation of potential beneficiaries of the 
     project in assessing the need for, and importance of, the 
     project in the community;
       ``(2) the degree to which the project addresses the most 
     harmful housing situations present in the community;
       ``(3) the degree of collaboration with others in the 
     community to meet the goals described in subsection (a);
       ``(4) the performance of the organization in improving 
     housing situations, taking account of the severity of 
     barriers of individuals and families served by the 
     organization;
       ``(5) for organizations that have previously received 
     funding under this section, the extent of improvement in 
     homelessness and the worst housing situations in the 
     community since such funding began;
       ``(6) the need for such funds, as determined by the formula 
     established under section 427(b)(2); and
       ``(7) any other relevant criteria as determined by the 
     Secretary.'';
       (H) in subsection (h)--
       (i) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``The'' and inserting ``Not later than 18 
     months after funding is first made available pursuant to the 
     amendments made by title IV of the Homeless Emergency 
     Assistance and Rapid Transition to Housing Act of 2009, 
     the''; and
       (ii) in paragraph (1)(A), by striking ``providing housing 
     and other assistance to homeless persons'' and inserting 
     ``meeting the goals described in subsection (a)'';
       (iii) in paragraph (1)(B), by striking ``address 
     homelessness in rural areas'' and inserting ``meet the goals 
     described in subsection (a) in rural areas''; and
       (iv) in paragraph (2)--

       (I) by striking ``The'' and inserting ``Not later than 24 
     months after funding is first made available pursuant to the 
     amendment made by title IV of the Homeless Emergency 
     Assistance and Rapid Transition to Housing Act of 2009, 
     the'';
       (II) by striking ``, not later than 18 months after the 
     date on which the Secretary first makes grants under the 
     program,''; and
       (III) by striking ``prevent and respond to homelessness'' 
     and inserting ``meet the goals described in subsection (a)'';

       (I) in subsection (k)--
       (i) in paragraph (1), by striking ``rural homelessness 
     grant program'' and inserting ``rural housing stability grant 
     program''; and
       (ii) in paragraph (2)--

       (I) in subparagraph (A), by striking ``; or'' and inserting 
     a semicolon;
       (II) in subparagraph (B)(ii), by striking ``rural census 
     tract.'' and inserting ``county where at least 75 percent of 
     the population is rural; or''; and
       (III) by adding at the end the following:

       ``(C) any area or community, respectively, located in a 
     State that has population density of less than 30 persons per 
     square mile (as reported in the most recent decennial 
     census), and of which at least 1.25 percent of the total 
     acreage of such State is under Federal jurisdiction, provided 
     that no metropolitan city (as such term is defined in section 
     102 of the Housing and Community Development Act of 1974) in 
     such State is the sole beneficiary of the grant amounts 
     awarded under this section.'';
       (J) in subsection (l)--
       (i) by striking the subsection heading and inserting 
     ``Program Funding.--''; and
       (ii) by striking paragraph (1) and inserting the following:
       ``(1) In general.--The Secretary shall determine the total 
     amount of funding attributable under section 427(b)(2) to 
     meet the needs of any geographic area in the Nation that 
     applies for funding under this section. The Secretary shall 
     transfer any amounts determined under this subsection from 
     the Community Homeless Assistance Program and consolidate 
     such transferred amounts for grants under this section, 
     except that the Secretary shall transfer an amount not less 
     than 5 percent of the amount available under subtitle C for 
     grants under this section. Any amounts so transferred and not 
     used for grants under this section due to an insufficient 
     number of applications shall be transferred to be used for 
     grants under subtitle C.''; and
       (K) by adding at the end the following:
       ``(m) Determination of Funding Source.--For any fiscal 
     year, in addition to funds awarded under subtitle B, funds 
     under this title to be used in a city or county shall only be 
     awarded under either subtitle C or subtitle D.''.

     SEC. 1402. GAO STUDY OF HOMELESSNESS AND HOMELESS ASSISTANCE 
                   IN RURAL AREAS.

       (a) Study and Report.--Not later than the expiration of the 
     12-month period beginning on the date of the enactment of 
     this division, the Comptroller General of the United States 
     shall conduct a study to examine homelessness and homeless 
     assistance in rural areas and rural communities and submit a 
     report to the Congress on the findings and conclusion of the 
     study. The report shall contain the following matters:
       (1) A general description of homelessness, including the 
     range of living situations among homeless individuals and 
     homeless families, in rural areas and rural communities of 
     the United States, including tribal lands and colonias.
       (2) An estimate of the incidence and prevalence of 
     homelessness among individuals and families in rural areas 
     and rural communities of the United States.
       (3) An estimate of the number of individuals and families 
     from rural areas and rural communities who migrate annually 
     to non-rural areas and non-rural communities for homeless 
     assistance.
       (4) A description of barriers that individuals and families 
     in and from rural areas and rural communities encounter when 
     seeking to access homeless assistance programs, and 
     recommendations for removing such barriers.
       (5) A comparison of the rate of homelessness among 
     individuals and families in and from rural areas and rural 
     communities compared to the rate of homelessness among 
     individuals and families in and from non-rural areas and non-
     rural communities.
       (6) A general description of homeless assistance for 
     individuals and families in rural areas and rural communities 
     of the United States.
       (7) A description of barriers that homeless assistance 
     providers serving rural areas and rural communities encounter 
     when seeking to access Federal homeless assistance programs, 
     and recommendations for removing such barriers.
       (8) An assessment of the type and amount of Federal 
     homeless assistance funds awarded to organizations serving 
     rural areas and rural communities and a determination as to 
     whether such amount is proportional to the distribution of 
     homeless individuals and families in and from rural areas and 
     rural communities compared to homeless individuals and 
     families in non-rural areas and non-rural communities.
       (9) An assessment of the current roles of the Department of 
     Housing and Urban Development, the Department of Agriculture, 
     and other Federal departments and agencies in administering 
     homeless assistance programs in rural areas and rural 
     communities and recommendations for distributing Federal 
     responsibilities, including homeless assistance program 
     administration and grantmaking, among the departments and 
     agencies so that service organizations in rural areas and 
     rural communities are most effectively reached and supported.
       (b) Acquisition of Supporting Information.--In carrying out 
     the study under this section, the Comptroller General shall 
     seek to obtain views from the following persons:
       (1) The Secretary of Agriculture.
       (2) The Secretary of Housing and Urban Development.
       (3) The Secretary of Health and Human Services.
       (4) The Secretary of Education.
       (5) The Secretary of Labor.
       (6) The Secretary of Veterans Affairs.
       (7) The Executive Director of the United States Interagency 
     Council on Homelessness.
       (8) Project sponsors and recipients of homeless assistance 
     grants serving rural areas and rural communities.
       (9) Individuals and families in or from rural areas and 
     rural communities who have sought or are seeking Federal 
     homeless assistance services.
       (10) National advocacy organizations concerned with 
     homelessness, rural housing, and rural community development.
       (c) Effective Date.--This section shall take effect on the 
     date of the enactment of this division

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

     SEC. 1501. REPEALS.

       Subtitles D, E, and F of title IV of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11391 et seq., 11401 et 
     seq., and 11403 et seq.) are hereby repealed.

[[Page 12788]]



     SEC. 1502. CONFORMING AMENDMENTS.

       (a) Consolidated Plan.--Section 403(1) of the McKinney-
     Vento Homeless Assistance Act (as so redesignated by section 
     1101(2) of this division), is amended--
       (1) by striking ``current housing affordability strategy'' 
     and inserting ``consolidated plan''; and
       (2) by inserting before the comma the following: 
     ``(referred to in such section as a `comprehensive housing 
     affordability strategy')''.
       (b) Persons Experiencing Homelessness.--Section 103 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302), as 
     amended by the preceding provisions of this division, is 
     further amended by adding at the end the following new 
     subsection:
       ``(e) Persons Experiencing Homelessness.--Any references in 
     this Act to homeless individuals (including homeless persons) 
     or homeless groups (including homeless persons) shall be 
     considered to include, and to refer to, individuals 
     experiencing homelessness or groups experiencing 
     homelessness, respectively.''.
       (c) Rural Housing Stability Assistance.--Title IV of the 
     McKinney-Vento Homeless Assistance Act is amended by 
     redesignating subtitle G (42 U.S.C. 11408 et seq.), as 
     amended by the preceding provisions of this division, as 
     subtitle D.

     SEC. 1503. EFFECTIVE DATE.

       Except as specifically provided otherwise in this division, 
     this division and the amendments made by this division shall 
     take effect on, and shall apply beginning on--
       (1) the expiration of the 18-month period beginning on the 
     date of the enactment of this division, or
       (2) the expiration of the 3-month period beginning upon 
     publication by the Secretary of Housing and Urban Development 
     of final regulations pursuant to section 1504,

     whichever occurs first.

     SEC. 1504. REGULATIONS.

       (a) In General.--Not later than 12 months after the date of 
     the enactment of this division, the Secretary of Housing and 
     Urban Development shall promulgate regulations governing the 
     operation of the programs that are created or modified by 
     this division.
       (b) Effective Date.--This section shall take effect on the 
     date of the enactment of this division.

     SEC. 1505. AMENDMENT TO TABLE OF CONTENTS.

       The table of contents in section 101(b) of the McKinney-
     Vento Homeless Assistance Act (42 U.S.C. 11301 note) is 
     amended by striking the item relating to the heading for 
     title IV and all that follows through the item relating to 
     section 492 and inserting the following new items:

                     ``TITLE IV--HOUSING ASSISTANCE

                    ``Subtitle A--General Provisions

``Sec. 401. Definitions.
``Sec. 402. Collaborative applicants.
``Sec. 403. Housing affordability strategy.
``Sec. 404. Preventing involuntary family separation
``Sec. 405. Technical assistance.
``Sec. 406. Discharge coordination policy.
``Sec. 407. Protection of personally identifying information by victim 
              service providers.
``Sec. 408. Authorization of appropriations.

            ``Subtitle B--Emergency Solutions Grants Program

``Sec. 411. Definitions.
``Sec. 412. Grant assistance.
``Sec. 413. Amount and allocation of assistance.
``Sec. 414. Allocation and distribution of assistance.
``Sec. 415. Eligible activities.
``Sec. 416. Responsibilities of recipients.
``Sec. 417. Administrative provisions.
``Sec. 418. Administrative costs.

                ``Subtitle C--Continuum of Care Program

``Sec. 421. Purposes.
``Sec. 422. Continuum of care applications and grants.
``Sec. 423. Eligible activities.
``Sec. 424. Incentives for high-performing communities.
``Sec. 425. Supportive services.
``Sec. 426. Program requirements.
``Sec. 427. Selection criteria.
``Sec. 428. Allocation of amounts and incentives for specific eligible 
              activities.
``Sec. 429. Renewal funding and terms of assistance for permanent 
              housing.
``Sec. 430. Matching funding.
``Sec. 431. Appeal procedure.
``Sec. 432. Regulations.
``Sec. 433. Reports to Congress.

        ``Subtitle D--Rural Housing Stability Assistance Program

``Sec. 491. Rural housing stability assistance.
``Sec. 492. Use of FHMA inventory for transitional housing for homeless 
              persons and for turnkey housing.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Massachusetts (Mr. Frank) and the gentlewoman from West Virginia (Mrs. 
Capito) each will control 20 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Speaker, this is our sending back to 
the Senate a version of a bill which we passed earlier this year. They 
then passed the bill in a form very close to ours, but in a couple of 
areas where we felt it important to insist on our original position and 
also to include some things that came up in the interim from the 
administration.
  It has several purposes. One, it enhances the ability of the 
executive branch to reduce the number of foreclosures. Last year 
Congress passed the HOPE for Homeowners program, which we hoped was 
going to reduce foreclosures. We didn't get it right. We had a good 
general idea, but it was passed in a form that was not very usable.
  We have learned from the experience, and we have a version here that 
we think is going to work much better. It includes, for instance, at 
the request of HUD, a provision that will allow them to deal with the 
problem of second mortgages, which has been an interference in our 
ability to get foreclosures. It also includes, as it did originally, a 
very good version of the safe harbor for services. That was a 
bipartisan idea of the gentleman from Pennsylvania (Mr. Kanjorski) and 
the gentleman from Delaware (Mr. Castle) to encourage those who are in 
charge of the mortgage process to act when it makes more sense to write 
down the mortgage and avoid foreclosure. It gives them the legal 
ability to do that and withstand frivolous lawsuits.
  It also has some provisions in here that are very important to those 
smaller financial institutions that are the lifeblood of our 
communities and which have been unfairly tarnished in this most recent 
debate over financial institutions.
  Community banks and the Independent Community Bankers of America have 
a letter here, which I will put into the Record, which supports this 
bill.
  Community banks were facing a significant increase in the assessment 
they get for deposit insurance. That was true. And this bill will 
extend the deposit insurance, which was temporarily at $250,000, and 
makes it permanent. That's very important for the smaller banks. It has 
to be paid for. But also there were problems with the larger banks who 
got in trouble.
  Absent this bill, community banks would have been facing a very 
significant increase in their assessment. Because this bill gives the 
FDIC borrowing authority, standby authority in case it's needed, they 
will not have to raise the assessment. The FDIC has to be ready to act. 
And if there was not the borrowing authority, they would have to raise 
the assessment to have a pool of money available. They have been, under 
Sheila Bair's leadership, a very thoughtful and responsible 
organization. Borrowing authority we will do. It's in here.
  Similarly, there was a problem that threatened a significant increase 
in the assessment that our local credit unions would have to pay 
because of the failure of some large credit unions. There's a pattern 
here of the larger institutions' failure imposing costs on the smaller. 
It's our job to prevent that from happening.
  What we have here is a provision that the gentleman from Pennsylvania 
(Mr. Kanjorski) has worked on. We worked with the National Credit Union 
Administration. It provides a mechanism by which the significant 
increased assessment on the credit union can be avoided. That's why the 
National Credit Union Association has sent in a letter in support of 
this.
  We will, as I said, be reducing foreclosures and helping the mortgage 
market. So the National Association of REALTORS has sent in a letter in 
support of this. And because it is good for the banking industry in 
general, the American Bankers Association has supported this.
  Our major financial institution representatives support this bill. As 
I said, it enhances our ability to reduce foreclosures. It averts 
significant increases in assessments that would go to the credit unions 
and the community banks. It also includes language which we have been 
working on and this House had passed, and it was bipartisan in our 
committee, improving the programs for the homeless.

[[Page 12789]]

  We made several important compromises on that. The gentlewoman from 
West Virginia who is here as the ranking member of the Housing 
Subcommittee on our committee worked on this. We incorporated that in 
this bill. So it is widely supported by people who are in the field of 
the homeless. It is, in general, an important piece of legislation that 
responds as well as we can to this foreclosure crisis.
  Myself and a majority of the House clearly would have preferred if it 
had included the authority of bankruptcy courts to reduce mortgages on 
primary residences. We passed that in the House. It failed in the 
Senate. Our colleague from California (Ms. Lofgren) and the chairman of 
the Judiciary Committee, Mr. Conyers, and others made a very valiant 
effort to resuscitate it. It was not possible. I regret that. I hope we 
won't give up on that. I think it's a glaringly illogical and unfair 
part of the law, but it would be a mistake, in my judgment, to allow 
that failure to get the votes that we tried to get in the Senate to 
stop the very many other important parts of the bill.
  So, as I said, I move to suspend the rules. I hope we can send this 
soon to the President. If we pass this bill, it will go to the Senate; 
and I believe that the Senate will adopt it and send it on to the 
President.
                                             Independent Community


                                           Bankers of America,

                                                     May 18, 2009.
     Hon. Nancy Pelosi,
     Speaker of the House, House of Representatives, Washington, 
         DC.
     Hon. John A. Boehner,
     Minority Leader, House of Representatives, Washington, DC.

     RE S. 896, the Helping Families Save their Homes Act of 2009
       Dear Speaker Pelosi and Minority Leader Boehner: The 
     Independent Community Bankers of America (ICBA), on behalf of 
     its 5,000 community bank members nationwide, are writing to 
     express our strong support for S. 896, the Helping Families 
     Save their Homes Act of 2009, which the House will consider 
     on the suspension calendar tomorrow. Several provisions in S. 
     896 are important to community bankers: the deposit insurance 
     provisions--including extending the increase in deposit 
     insurance coverage to $250,000, increasing the FDIC's 
     borrowing authority, making the assessments for the Temporary 
     Liquidity Guarantee Program more equitable--plus improvements 
     to the Hope for Homeowners Program (H4H).


                           Deposit Insurance

       The Emergency Economic Stabilization Act temporarily 
     increased deposit insurance coverage from $100,000 to 
     $250,000. The additional coverage has enhanced community bank 
     liquidity and stability at this critical time. We are pleased 
     S. 896 would extend this increase. Community banks also 
     support provisions increasing the FDIC's authority to borrow 
     from the Treasury, if needed. The increased authority will 
     allow the FDIC to reduce its planned second quarter special 
     assessment on all banks, keeping vital capital within 
     community banks to support lending, while still ensuring an 
     adequately funded Deposit Insurance Fund. ICBA also supports 
     a provision to allow the FDIC to assess all financial 
     institutions, including holding companies, benefiting from 
     its Temporary Liquidity Guarantee Program, in the case of a 
     deficit in the program. Current law only permits assessments 
     against banks and thrifts.


         Hope for Homeowners and Servicer Safe Harbor Provision

       Community banks support improvements to the Hope for 
     Homeowners Program and the servicer safe harbor provisions 
     found in S. 896. ICBA agrees minimizing foreclosures is 
     essential to the effort to stabilize the U.S. economy. 
     Foreclosure is often a very lengthy, costly and destructive 
     process that puts downward pressure on the price of nearby 
     homes and has a devastating impact on families and 
     communities. The changes to the Hope for Homeowners Program 
     and the servicer safe harbor provision will foster more 
     voluntary loan modifications and are a positive step in 
     bringing stability to the mortgage and housing markets.
       We strongly urge a yes vote for S. 896. Thank you for 
     considering our views.
           Sincerely,
                                                   Camden R. Fine,
     President and CEO.
                                  ____

                                     American Bankers Association,
                                     Washington, DC, May 19, 2009.
     Hon. Nancy Pelosi,
     Speaker of the House, House of Representatives, Washington, 
         DC.
     Hon. John Boehner,
     Republican Leader, House of Representatives, Washington, DC.
       Dear Speaker Pelosi and Representative Boehner: I am 
     writing on behalf of the members of the American Bankers 
     Association in strong support of S. 896, the Helping Families 
     Save Their Homes Act of 2009, which will be considered by the 
     House today on the suspension calendar.
       The legislation provides the Federal Deposit Insurance 
     Corporation (FDIC) with a much needed increase in its 
     borrowing authority, extends the period for the restoration 
     of the FDIC's deposit insurance fund from five to eight 
     years, and provides a temporary extension (through 2013) of 
     the FDIC's $250,000 deposit insurance limit.
       The legislation also will make it easier for servicers to 
     modify loan agreements. It improves the Hope for Homeowners 
     Program to make it more accessible for lenders and better 
     able to help homeowners avoid foreclosures.
       ABA urges the House to pass this very important 
     legislation. The increase in borrowing authority will enable 
     the FDIC to reduce the proposed special assessment on all 
     banks, thereby increasing funds available for lending in 
     local communities.
       We look forward to working with you to have S. 896 enacted 
     into law as quickly as possible.
           Sincerely,
     Floyd E. Stoner.
                                  ____



                            Credit Union National Association,

                                     Washington, DC, May 19, 2009.
     Hon. Nancy Pelosi,
     Speaker, House of Representatives, Washington, DC.
     Hon. John Boehner,
     Minority Leader, House of Representatives, Washington, DC.
       Dear Speaker Pelosi and Ranking Member Boehner: On behalf 
     of the Credit Union National Association (CUNA), I am writing 
     in support of S. 896, the Helping Families Save Their Homes 
     Act. CUNA is the largest credit union trade association, 
     representing nearly 90% of America's 8,000 state and 
     federally chartered credit unions and their 92 million 
     members.
       CUNA strongly supports S. 896, a bill that includes a 
     number of provisions aimed at helping credit unions continue 
     to help their members weather the financial crisis and 
     maintain member confidence in credit unions. Credit unions 
     consider this a critical vote.
       S. 896 would extend the increase in deposit insurance 
     coverage ($250,000) for the National Credit Union Share 
     Insurance Fund (NCUS IF) that Congress enacted on as part of 
     the Emergency Economic Stabilization Act of 2008, until 
     December 31, 2013. This provision is an important step that 
     will help maintain member confidence in credit unions.
       S. 896 also includes a number of provisions aimed at 
     helping credit unions manage the impact of the financial 
     crisis on the credit union system. Even though credit unions 
     use strong underwriting standards to make loans to their 
     members and keep most of their mortgages in portfolio, no 
     financial institution is immune from the current economic 
     situation. Corporate credit unions, which provide payment, 
     settlement, investment and other services for natural person 
     credit unions, have been particularly hard hit by the 
     economic maelstrom.
       On March 20, the National Credit Union Administration 
     (NCUA) placed two corporate credit unions--U.S. Central and 
     Western Corporate Federal Credit Union (Wescorp)--into 
     conservatorship. The losses at the two corporate credit 
     unions were created by declines in the value of mortgage-
     backed securities in which they invested. Although these 
     securities were originally AAA-rated and appeared prudent 
     when the investments were made, market developments proved to 
     the contrary. Despite these investment losses, the payment 
     and settlement services provided by these corporate credit 
     unions continue to be offered on a very sound basis.
       The credit union system itself is covering the losses on 
     these corporate credit union investments by way of a 
     significant NCUSIF insurance assessment on all federally 
     insured natural person credit unions. Under current law, 
     credit unions must replenish their NCUSIF deposits equal to 
     1% of their insured shares on an annual basis and are also 
     subject to premium charges when the fund drops below a 1.2% 
     equity ratio. While credit unions expect to pay for the 
     corporate credit union problem themselves, they would like to 
     spread the losses over time, as banks are permitted to do for 
     their insurance costs under current law.
       S. 896 would increase NCUA's borrowing authority from 
     Treasury from $100 million to $6 billion, with the ability to 
     borrow as much as $30 billion in exigent circumstances 
     through December 2010. The amendment also establishes a 
     Temporary Corporate Stabilization Fund that would also help 
     NCUA to spread out credit unions' insurance costs over seven 
     years. Spreading these costs over multiple years means that 
     credit unions can use the funds that otherwise would have 
     been used to pay the assessment immediately to make credit 
     available to their members. CUNA strongly supports both the 
     additional borrowing authority for NCUA as well as the 
     establishment of the Temporary Corporate Stabilization fund.
       Time is of the essence. We appreciate the timely 
     consideration of the S. 896 and hope the legislation can be 
     enacted expeditiously.
       On behalf of America's credit unions, thank you very much 
     for your consideration.

[[Page 12790]]

     Please support the S. 896, the Helping Families Save Their 
     Homes Act.
           Sincerely,
                                                   Daniel A. Mica,
     President & CEO.
                                  ____

                                           National Association of


                                        Federal Credit Unions,

                                Arlington, Virginia, May 19, 2009.
     Hon. Nancy Pelosi,
     Speaker of the House, House of Representatives, Washington, 
         D.C.
     Hon. John Boehner,
     Minority Leader, House of Representatives, Washington, DC.
       Dear Speaker Pelosi and Minority Leader Boehner: On behalf 
     of the National Association of Federal Credit Unions (NAFCU), 
     the only trade association exclusively representing the 
     interests of our nation's federal credit unions, I am writing 
     to express our support for S. 896, the ``Helping Families 
     Save Their Homes Act of 2009'' and to urge the House to 
     support this legislation when it is considered on the 
     suspension calendar today.
       S. 896 would adopt the corporate credit union stabilization 
     fund proposal recently released by the National Credit Union 
     Administration (NCUA). NCUA's decision to place two corporate 
     credit unions into conservatorship earlier this year has led 
     to losses of approximately $5.9 billion to the National 
     Credit Union Share Insurance Fund (NCUSIF). Under present 
     regulations, natural-person credit unions will be assessed a 
     heavy charge in 2009 to recapitalize the NCUSIF. Swift 
     implementation of the NCUA proposal is necessary to prevent 
     more than two-thirds of our nation's credit unions from 
     having negative earnings for 2009, as well as to ensure that 
     they are adequately capitalized. The creation of the 
     temporary corporate credit union stabilization fund and the 
     seven year timeframe for repayment of loans to the fund will 
     provide immediate relief to large insurance fund premiums 
     facing natural-person credit unions otherwise.
       We also applaud the adoption of a longer time frame for the 
     repayment of NCUSIF premiums contained in S. 896. By 
     lengthening the repayment term to eight years, Congress 
     ensures credit unions will be able to focus more of their 
     resources on making loans that will strengthen the economy, 
     rather than having to divert them to rebuild the NCUSIF.
       Finally, as part of the Emergency Economic Stabilization 
     Act of 2008, Congress increased the coverage on FDIC and 
     NCUSIF insured accounts to $250,000 through December 31, 
     2009. This change serves to maintain public confidence in 
     insured depository institutions in the current economic 
     environment. S. 896 would extend the higher insurance level 
     for four more years, to 2013. This extension would ease 
     confusion many credit unions and their members already have 
     about the pending sunset on December 31st.
       NAFCU thanks you for your time and consideration regarding 
     these matters. We urge the House to vote ``yes'' and support 
     S. 896 when it is considered on the suspension calendar 
     today. Should you have any questions or require any 
     additional information please do not hesitate to contact me 
     or Brad Thaler, NAFCU's Director of Legislative Affairs, at 
     703-522-4775, ext 204.
           Sincerely,
                                                    B. Dan Berger,
     Senior Vice President of Government Affairs.
                                  ____

                                              National Association


                                       of REALTORS'

                                     Washington, DC, May 19, 2009.
     Hon. Barney Frank,
     House of Representatives, Rayburn House Office Building, 
         Washington, DC.
       Dear Chairman Frank: The 1.2 million members of the 
     National Association of REALTORS' urge support of 
     S. 896, the ``Helping Families Save Their Homes Act'', which 
     passed the Senate on May 6, 2009 by a vote of 91-5.
       S. 896 includes a number of much-needed provisions to limit 
     foreclosures and keep families in their homes. The bill will 
     expand loan modifications by providing a safe harbor for 
     mortgage servicers who conduct loan modifications in good 
     faith. The bill reforms the Hope for Homeowners program, 
     preserving benefits to homeowners while limiting risks to the 
     FHA fund and the taxpayer. The bill also strengthens 
     oversight of FHA-approved lenders to protect the FHA fund and 
     taxpayers from fraud and abuse. Finally, the bill establishes 
     a task-force to investigate mortgage foreclosure fraud.
       NAR asks for your support of S. 896, which will allow more 
     American families to avoid foreclosure and will help in our 
     housing recovery.
           Sincerely,
                                      Charles McMillan, CIPS, GRI,
     2009 President, National Association of REALTORS'.

  I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, I rise today in support of S. 896, the 
Helping Families Save Their Homes Act of 2009. As the chairman 
mentioned, it has broad-based support from a lot of groups that have 
been working with this bill.
  Before I begin to discuss the specific provisions contained in this 
bill, I would like to talk about one of the provisions that is not in 
this bill. Thanks in large part to unified Republican opposition in the 
House and Senate, the bill does not include bankruptcy cramdown 
provisions. I joined with many of my colleagues in speaking against 
this provision, which previously passed the House and, in my opinion, 
would have caused untold damage to the mortgage market and 
substantially increased costs for consumers.
  Allowing bankruptcy judges to unilaterally rewrite mortgage contracts 
is not the solution to the problems in our housing markets. The other 
body should, therefore, be commended for rejecting attempts to add 
cramdown provisions to this legislation.
  Unfortunately, not all of the problematic provisions have been 
removed from the bill. The majority continues to insist upon salvaging 
the failed HOPE for Homeowners program. Last year HOPE for Homeowners 
was promoted as a way to assist hundreds of thousands of homeowners to 
modify their mortgages. To date, the program has helped only a handful 
of distressed borrowers. S. 896 attempts to fix HOPE for Homeowners by 
increasing the taxpayer subsidy for lenders seeking to offload their 
worst mortgages on the government.
  Because mortgages modified under HOPE for Homeowners received an FHA 
guarantee, the inevitable losses that will result from defaults on many 
of these mortgages will further undermine, I believe, the solvency of 
that critical program.
  It is important to note that the FHA is already under stress and that 
the Department of Housing and Urban Development has made an 
unprecedented budget request of almost $800 million to keep the FHA 
afloat. Perhaps a better approach than trying to improve the HOPE for 
Homeowners program would have been to end it altogether.
  I've authored legislation that would provide the Department of 
Housing and Urban Development with the ability to set up a program to 
assist struggling borrowers that gives the department much-needed 
flexibility to adjust to market changes. Yet there are many useful 
reforms in this legislation that are worthy of Republican support.
  First, the Senate included provisions based on legislation by Dr. 
Paul of this House that will greatly increase the transparency and 
accountability of various Federal Reserve liquidity facilities and 
specific initiatives to rescue individual firms that the government has 
deemed too big to fail by giving the GAO the statutory authority to 
audit these programs.
  Second, the bill includes provisions to ease the crippling deposit 
insurance premiums that community banks, banks and credit unions will 
otherwise face in the coming months.
  And third, the Senate bill includes a comprehensive reauthorization 
of the McKinney-Vento homelessness program which, as the chairman 
noted, was passed in a strong bipartisan manner here in the last 
Congress.
  We had significant contributions from many of my colleagues on both 
sides of the aisle. I'd like to thank Mrs. Biggert and Mr. Geoff Davis 
of Kentucky from our side.
  Mr. Chairman, S. 896 is far from a perfect bill, but S. 896 no longer 
contains what I believe were harmful bankruptcy provisions which could 
have further paralyzed the mortgage finance market. S. 896 will also 
make crucial changes in the deposit area which should help advance the 
economic recovery. For these reasons, I urge Members to support S. 896.
  I would like to reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Speaker, I did want to respond, and I 
appreciate the support from the gentlewoman for the bill.
  With regard to the FHA, I just want to read from the National 
Association of REALTORS letter because they, as much as any entity in 
this country, have an interest in a strong FHA.
  Contrary to the wishes expressed by the gentlewoman from West 
Virginia, the REALTORS approve of the fact

[[Page 12791]]

that we are improving the HOPE for Homeowners program. It says, ``The 
bill reforms the HOPE for Homeowners program, preserving benefits to 
homeowners while limiting risks to the FHA fund and the taxpayer. The 
bill also strengthens oversight of FHA-approved lenders to protect the 
FHA Fund and taxpayers from fraud and abuse.''
  At the hearing that we had earlier this year--and that was when the 
Bush administration was still in power--career employees of the FHA 
noted that they do not have, and will not have until this bill becomes 
law, the power to prevent applicants for FHA funding who have a record 
of abuse from applying again.
  So at the initiative of the Committee on Financial Services, the 
gentlewoman from California (Ms. Speier) and the gentlewoman from 
California (Ms. Waters), we added that to this language.
  So what this bill includes is a very important power for the FHA to 
debar, to use the appropriate legal term, people who have had a record 
of fraud. That's one of the reasons why we think that the FHA is 
strengthened by this bill.
  I reserve the balance of my time.
  Mrs. CAPITO. In response to the chairman, we argued this in committee 
over whether it was wise to throw a lifeline to HOPE for Homeowners or 
to re-create the program or a program, and that's why this legislation 
is important because it does improve that. It does improve HOPE for 
Homeowners. But I would just like to note, to this date from October 1, 
2008, to May 16, 2009, we've only had 954 applications and only 55 
closings. And this is for a program that was sold to us basically under 
the guise that it was going to help 25,000, at least, homeowners. So 
far we're looking at 55.

                              {time}  1400

  At this point I would like to yield 2 minutes to the gentlewoman from 
Kansas, a great member of our committee.
  Ms. JENKINS. I rise today in support of one provision in particular 
of the underlying bill which allows for increased borrowing authority 
for the FDIC and the NCUA.
  Community financial institutions in Kansas are facing a sizable 
special assessment due to the deposit insurance funds being drawn down 
with the failure of numerous institutions across the Nation. Just last 
week I had a great opportunity to visit with several bankers from 
across the State who were in town with the Independent Community 
Bankers Association.
  Growing up in rural Kansas, I know full well the close-knit 
communities in which these and other financial institutions operate 
across eastern Kansas, faithfully investing the hard-earned dollars of 
their neighbors to the betterment of the community and the depositors.
  These bankers impressed upon me the need for this borrowing 
authority. With the special assessment as it is today, banks and credit 
unions face further hardship meeting regulatory capital requirements 
and lending demands. However, the FDIC has indicated that passage of 
increased borrowing authority may result in a reduction of this special 
assessment by as much as half. This potential has my constituents 
asking this body and me to pass this provision.
  It is clear that recent institutional failures have significantly 
increased losses of the insurance funds. However, by and large, the 
financial institutions in my district did not cause this economic 
trauma. We must be careful that these community institutions which 
serve so many folks are not unfairly saddled with higher premiums to 
compensate for the mistakes of others.
  Mr. FRANK of Massachusetts. I yield 3 minutes to the gentlewoman from 
California (Ms. Waters), the chairwoman of the Housing Subcommittee 
which played a major role in our efforts to deal with this crisis.
  Ms. WATERS. Thank you very much, Mr. Chairman.
  Mr. Speaker and Members, I would first like to thank Chairman Barney 
Frank for the leadership that he has provided on all of these issues 
related to this economic crisis that we have been confronted with. Some 
of these issues, not expected, were thrown into his lap in an unusual 
way. And he has been able to guide our caucus in our House in ways that 
help to bring us to the point of passing this kind of legislation, the 
Helping Families Save Their Homes Act of 2009.
  So I rise in support of S. 896, the Helping Families Save Their Homes 
Act of 2009. As chairwoman of the Financial Services Subcommittee on 
Housing and Community Opportunity, I believe that the housing 
components of this bill will be essential in helping families and 
communities.
  I am especially pleased that the bill includes a provision I authored 
to ensure that the FHA loan programs are out of bounds for the very 
worst subprime lenders who created this mortgage mess in the first 
place.
  S. 896 also includes legislation drafted by my subcommittee to 
reauthorize and expand the McKinney-Vento Homelessness Assistance 
Program. Given the increase in homelessness due to the foreclosure 
crisis, inclusion of the McKinney-Vento legislation is both timely and 
appropriate. In addition the bill includes vital protections for 
renters facing evictions as a result of their landlord's foreclosure.
  Finally, I am pleased that I was able to work with Senator Leahy on 
making improvements to the Neighborhood Stabilization Program in order 
to allow States that receive the minimum allocation of funding to 
provide that funding to areas with homes at risk or in foreclosure.
  While I believe S. 896 is an important piece of legislation, I am 
disappointed that it does not include a House-passed provision to allow 
judges to modify mortgages through bankruptcy. I am concerned that 
without this provision, we may continue to see an increase in the 
number of foreclosures.
  I support S. 896, the Helping Families Save Their Homes Act of 2009.
  And I would urge my colleagues to vote ``yes.''
  Mrs. CAPITO. At this point, I have no further speakers. I would just 
like to reiterate my support for the bill, and I yield back the balance 
of my time.


                             General Leave

  Mr. FRANK of Massachusetts. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days in which to revise and extend 
their remarks and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mrs. BIGGERT. Mr. Speaker, I would like to submit my entire statement 
for the Record. Mr. Speaker, I'm disappointed that, at the last minute, 
the Rules Committee cancelled its scheduled hearing on this bill, S. 
896, preventing Members from filing amendments to improve it.
  Let me start by saying that this bill has important provisions that I 
support. It significantly reforms homeless housing programs, increases 
funds for housing counseling and to warn consumers about foreclosure 
rescue scams, provides a safe harbor for servicers and enhances other 
programs to help qualified homeowners save their homes. The bill 
creates a database on the root causes of foreclosures and authorizes a 
mortgage fraud task force. Provisions to increase the FDIC and NCUA's 
borrowing authority and extend the time needed to restore their 
insurance funds, for financial institutions, aim to stabilize insurance 
fees and free up capital so they can lend to consumers and small 
businesses. In addition, the bill increases Federal Reserve 
transparency and TARP oversight--two very important items for 
taxpayers.
  Despite these good provisions in the bill, it still falls short. To 
address these shortcomings, I intended to offer a few bi-partisan 
amendments but was denied the opportunity. Mr. Speaker, I would like to 
insert the text of these amendments for the Record and say a few words.
  First, the bill is too light on housing counseling. Counselors are on 
the front lines of the foreclosure crisis and often the first place 
homeowners turn to for help. Three hundred Members voted for this 
language, as part of H.R. 1728, to bolster HUD's housing counseling 
programs, enhance program coordination, increase grants and streamline 
the process, as well as launch a national outreach campaign.
  My second amendment, cosponsored by Mr. Neugebauer, would have 
required HUD and

[[Page 12792]]

the Fed to coordinate efforts to produce compatible and improved 
residential mortgage disclosures. Consumers deserve nothing less. 
Again, earlier this month, 300 Members voted for H.R. 1728, which 
contained the exact language of this amendment.
  Third, recent reports indicated that one in fifty U.S. children is 
homeless, and during the 2007-2008 school year, there was an 18 percent 
increase in the number of homeless students. Why? The rise in 
foreclosures and decline in jobs, but also--something fairly unknown--
some agencies can help all homeless kids, but HUD cannot. Does that 
make sense?
  To help address this mismatch in programs, Ms. McCarthy, Mr. Davis, 
and I have an amendment to allow HUD to provide homeless housing and 
services to all homeless children who are already served by programs 
run by the Departments of Education, Health and Human Services, and 
Justice. Homeless kids should be our top priority.
  Thanks to concessions made by some of my colleagues here and in the 
Senate, the underlying bill, S. 896, moves an inch to help these kids, 
but it should move miles.
  Speaking of miles, I would like to take a moment to recognize a 
courageous, young man who is fighting with us on this issue. On Sunday, 
USA Today reported that an 11-year old boy from Florida, Zach Bonner, 
is hiking from Florida to Washington, DC, and collecting letters from 
homeless kids on the way to deliver to President Obama. Thank you, 
Zach. Keep hiking. We're with you. I hope that other Members of 
Congress and this Administration can be so brave and fix the law to 
help homeless kids.
  I hope my colleagues, in particular, Chairman Frank, will commit our 
Committee to continue work on these very important matters.

        Amendment to S. 896. Offered by Mrs. Biggert of Illinois

       Page 86, after line 14, insert the following new title:

                 TITLE IX--OFFICE OF HOUSING COUNSELING

     SEC. 901. EXPANSION AND PRESERVATION OF HOME OWNERSHIP 
                   THROUGH COUNSELING.

       Title IV of H.R. 1728, An Act to amend the Truth in Lending 
     Act to reform consumer mortgage practices and provide 
     accountability for such practices, to provide certain minimum 
     standards for such consumer loans, and for other purposes, as 
     passed the House of Representatives on May 7, 2009, is hereby 
     enacted into law with the following amendments:
       (1) In the paragraph added to section 106(a) of the Housing 
     and Urban Development Act of 1968 by the amendment made by 
     section 404 of such title, strike subparagraph (D).
       (2) Strike section 409 of such title.
                                  ____


   Amendment to S. 896. Offered by Mrs. Biggert of Illinois and Mr. 
                          Neugebauer of Texas

       Page 18, after line 2, insert the following new section:

     SEC. 106. RESPA AND TILA DISCLOSURE IMPROVEMENT.

       (a) Compatible Disclosures.--The Secretary of Housing and 
     Urban Development and the Board of Governors of the Federal 
     Reserve shall, not later than the expiration of the 6-month 
     period beginning upon the date of the enactment of this Act, 
     jointly issue for public comment proposed regulations 
     providing for compatible disclosures for borrowers to receive 
     at the time of mortgage application and at the time of 
     closing.
       (b) Requirements.--Such disclosures shall--
       (1) provide clear and concise information to borrowers on 
     the terms and costs of residential mortgage transactions and 
     mortgage transactions covered by the Truth in Lending Act (12 
     U.S.C. 1601 et seq.) and the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2601 et seq.);
       (2) satisfy the requirements of section 128 of the Truth in 
     Lending Act (12 U.S.C. 1638) and section 4 and 5 of the Real 
     Estate Settlement Procedures Act of 1974; and
       (3) comprise early disclosures under the Truth in Lending 
     Act and the good faith estimate disclosures under the Real 
     Estate Settlement Procedures Act of 1974 and final Truth in 
     Lending Act disclosures and the uniform settlement statement 
     disclosures under Real Estate Settlement Procedures Act of 
     1974 and provide for standardization to the greatest extent 
     possible among such disclosures from mortgage origination 
     through the mortgage settlement.
       (4) shall include, with respect to a residential home 
     mortgage loan, a written statement of--
       (A) the principal amount of the loan;
       (B) the term of the loan;
       (C) whether the loan has a fixed rate of interest or an 
     adjustable rate of interest;
       (D) the annual percentage rate of interest under the loan 
     as of the time of the disclosure;
       (E) if the rate of interest under the loan can adjust after 
     the disclosure, for each such possible adjustment--
       (i) when such adjustment will or may occur; and
       (ii) the maximum annual percentage rate of interest to 
     which it can be adjusted;
       (F) the total monthly payment under the loan (including 
     loan principal and interest, property taxes, and insurance) 
     at the time of the disclosure;
       (G) the maximum total estimated monthly maximum payment 
     pursuant to each such possible adjustment;
       (H) the total settlement charges in connection with the 
     loan and the amount of any downpayment and cash required at 
     settlement; and
       (I) whether or not the loan has a prepayment penalty or 
     balloon payment and the terms, timing, and amount of any such 
     penalty or payment.
       (c) Suspension of 2008 RESPA Rule.--
       (1) Requirement.--The Secretary of Housing and Urban 
     Development shall, during the period beginning on the date of 
     the enactment of this Act and ending upon issuance of 
     proposed regulations pursuant to subsection (a), suspend 
     implementation of any provisions of the final rule referred 
     to in paragraph (2) that would establish and implement a new 
     standardized good faith estimate and a new standardized 
     uniform settlement statement. Any such provisions shall be 
     replaced by the regulations issued pursuant to subsections 
     (a) and (b).
       (2) 2008 rule.--The final rule referred to in this 
     paragraph is the rule of the Department of Housing and Urban 
     Development published on November 17, 2008, on pages 68204-
     68288 of Volume 73 of the Federal Register (Docket No. FR-
     5180-F-03; relating to `Real Estate Settlement Procedures Act 
     (RESPA): Rule to Simplify and Improve the Process of 
     Obtaining Mortgages and Reduce Consumer Settlement Costs').
       (d) Implementation.--The regulations required under 
     subsection (a) shall take effect, and shall provide an 
     implementation date for the new disclosures required under 
     such regulations, not later than the expiration of the 12-
     month period beginning upon the date of the enactment of this 
     Act.
       (e) Failure To Issue Compatible Disclosures.--If the 
     Secretary of Housing and Urban Development and the Board of 
     Governors of the Federal Reserve System cannot agree on 
     compatible disclosures pursuant to subsections (a) and (b), 
     the Secretary and the Board shall submit a report to the 
     Congress, after the 6-month period referred to in subsection 
     (a), explaining the reasons for such disagreement. After the 
     15-day period beginning upon submission of such report, the 
     Secretary and the Board may separately issue for public 
     comment regulations providing for disclosures under the Real 
     Estate Settlement Procedures Act of 1974 and the Truth in 
     Lending Act, respectively. Any final disclosures as a result 
     of such regulations issued by the Secretary and the Board 
     shall take effect on the same date, and not later than the 
     expiration of the 12-month period beginning on the date of 
     the enactment of this Act. If either the Secretary or the 
     Board fails to act during such 12-month period, either such 
     agency may act independently and implement final regulations.
       (f) Standardized Disclosure Forms.--
       (1) In general.--Any regulations proposed or issued 
     pursuant to the requirements of this section shall include 
     model disclosure forms.
       (2) Option for mandatory use.--In issuing proposed 
     regulations under subsection (a), the Secretary of Housing 
     and Urban Development and the Board of Governors of the 
     Federal Reserve System shall include regulations for the 
     mandatory use of standardized disclosure forms if they 
     jointly determine that it would substantially benefit the 
     consumer.
                                  ____


Amendment to S. 896. Offered by Mrs. Biggert of Illinois, Mrs. McCarthy 
                 of New York, and Mr. Davis of Kentucky

       Page 91, line 3, strike ``and''.
       Page 91, line 19, strike the period and insert ``; and''.
       Page 91, after line 19, insert the following:
       ``(7) a child or youth who has been verified as homeless--
       ``(A) as such term is defined in section 725(2)(B)(i) of 
     the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11434a(2)(B)(i)), by a local educational agency homeless 
     liaison, designated pursuant to section 722(g)(1)(J)(ii) of 
     the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11432(g)(1)(J)(ii)), and the family of such child or youth;
       ``(B) by the director of a program funded under the Runaway 
     and Homeless Youth Act (42 U.S.C. 5701 et seq.), or a 
     designee of the director;
       ``(C) under section 602 of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1401) by the director 
     or the designee of such program, and the family of such 
     child; or
       ``(D) under section 637 of the Head Start Act (42 U.S.C. 
     9832) by the director or designee of such program, and the 
     family of such child.''.

  Mr. BLUMENAUER. Mr. Speaker, in communities across the Nation, the 
scourge of foreclosure is a deepening problem. In Oregon, 3,388 homes 
went into foreclosure in March, a 107% increase over the number of 
foreclosures in March 2008. Nationally, lenders filed foreclosure 
actions against more than

[[Page 12793]]

340,000 properties in March alone. These figures helped make the first 
quarter of 2009 the worst on record for foreclosure activity.
  I support this bill because it will equip homeowners and lenders with 
new and improved tools to combat foreclosures. It will help banks to 
increase their lending to small businesses and American consumers. 
While this bill is not a cure-all for our Nation's economic troubles, 
it makes important contributions towards the protection of American 
homeownership.
  In particular, I support the bill's modifications to the HOPE for 
Homeowners program, which will ease restrictions on eligibility and 
enable refinancing of underwater mortgages for a greater number of 
borrowers.
  One major difference between this bill and the one that the House 
passed in early March is the judicial modification provision, missing 
from this bill. Allowing bankruptcy judges to modify principal balances 
of residential mortgage loans is an important policy, and one which I 
continue to support.
  It is only fair that Congress offer average families the same 
alternative to foreclosure that has been available under the law for 
many years to owners of vacation homes, investment properties, private 
jets, and luxury yachts. Under such a provision, while some mortgage 
lenders would not get every penny owed to them, on balance they would 
get more than if these families had no better choice than to fall into 
foreclosure.
  Mr. SKELTON. Mr. Speaker, throughout this tough recession, Congress 
has been working to reduce the length and severity of the economic 
downturn and its impact on the American people. While we have approved 
a number of important bills in this area, let me share my support today 
for S. 896, a bipartisan bill known as the Helping Families Save Their 
Homes Act.
  S. 896 is a balanced bill that will provide tools and incentives to 
help reduce foreclosures, will strengthen Federal protections against 
predatory lending, will establish the right of homeowners to know who 
owns their mortgage, and will give the Federal Housing Administration 
and USDA's Rural Housing Service legal flexibility to undertake loan 
modifications. Reducing foreclosures and stabilizing the housing market 
are key to turning around America's economy, which is why I am pleased 
that S. 896 has been written with the support of both congressional 
Democrats and Republicans.
  While S. 896 will help to mend the ailing housing market, the bill is 
also good for small town banks and for all Americans who keep their 
savings in a bank or credit union.
  As some banks gambled and made risky loans to subprime borrowers, 
most small town financial institutions played by the rules and did not 
get caught up in the hazardous lending behavior that is at the heart of 
our recession. But, as larger banks have faltered, community banks have 
been replenishing the deposit insurance fund that protects investments 
throughout the financial system. To strengthen the financial stability 
of community banks and credit unions, S. 896 increases the borrowing 
authority for FDIC and for the federal credit union regulator. These 
increases will help level the playing field so community financial 
institutions are not stuck picking up the tab for their larger 
competitors.
  And, to better protect deposits, S. 896 increases FDIC insurance 
protection for accounts holding up to $250,000. This action is not only 
beneficial to depositors but also to small town financial institutions 
that derive their funding and lending ability from deposits.
  I urge my colleagues to support S. 896 and hope the legislation, if 
passed, can be swiftly signed into law by the President.
  Mr. AL GREEN of Texas. Mr. Speaker, I am proud to support S. 896, the 
Helping Families Save Their Homes Act of 2009. I supported H.R. 1106 
when it left the House, and while lacking the provision to allow for 
judicial ``cramdown,'' I am pleased with many of the improvements that 
S. 896 brings.
  This bill reflects an affirmation of this legislative body's 
dedication to ensure that the American dream of homeownership is not 
lost for millions of American families. The foreclosure crisis has 
devastated our economy and this bill is another step towards 
stabilizing our housing market and restoring confidence in the American 
people.
  S. 896 improves the HOPE for Homeowners program, making it a more 
viable option for helping families sustain homeownership; it provides a 
safe harbor for those who would engage in legitimate loan modifications 
or utilize the HOPE for Homeowners Program. The bill strengthens the 
FDIC and credit unions to ensure the availability of credit for 
consumers, which is crucial in this time of economic downturn.
  S. 896 reauthorizes the McKinney-Vento Homelessness Assistance Grants 
for the first time in 20 years, and authorizes $2.2 billion for the 
programs for FY 2010 and 2011. It also provides funding to HUD to 
increase public awareness regarding foreclosure scams.
  Finally, the tenant protections included in the bill ensure that bona 
fide tenants are not unfairly removed from their residences when 
foreclosures occur that they could not control.
  Overcoming the foreclosure crisis and the damage that it has wrought 
will take time and dedication. However, by passing the Helping Families 
Save Their Homes Act, we are taking a critical step forward in 
protecting the American homeowner.
  Mr. VAN HOLLEN. Mr. Speaker, today, I rise in support of the Helding 
Families Save Their Homes Act, a bipartisan bill that will help 
millions of American families avoid the nightmare of foreclosure. 
Foreclosures cost an American family its home every 13 seconds, and 
negatively impact entire neighborhoods. Each foreclosed home reduces 
nearby property values by as much as 9 percent, and the lack of 
property tax revenues can affect community services and the quality of 
our schools. We all stand to lose if we do not stop the steep decline 
in home prices, which is why Congress and President Obama are taking 
action.
  This legislation builds on the President's comprehensive Homeowner 
Affordability and Stability Plan, and provides key tools and incentives 
for lenders, servicers and homeowners to modify loans and to avoid 
foreclosures. It bolsters important consumer rights to housing 
information and strengthens community banks, which are crucial to small 
businesses and families across this nation. It also makes important 
improvements to the Hope for Homeowners program, which was created by 
Congress to help those at risk of default and foreclosure refinance 
into more affordable, sustainable loans.
  Stabilizing the housing market is central to restoring the American 
economy. By passing the Helping Families Save Their Homes Act of 2009, 
we are not just helping millions of families keep their homes--we are 
getting the economy back on track and moving America in a new 
direction.
  Mr. KUCINICH. Mr. Speaker, I rise today in reluctant support of S. 
986, the Helping Families Save Their Homes Act. Although I supported 
H.R. 1106 earlier in this Congress, and I will vote for this bill, I 
remain concerned about many aspects that attempt to fix the problem 
without addressing the fundamental issues.
  S. 896 makes additional changes to the HOPE for Homeowners program 
despite evidence that it is a seriously flawed model that has failed to 
effect the type of large-scale mortgage modification that our economy 
needs if it is going to recover. Despite the changes made, success of 
the HOPE for Homeowners program continues to be contingent on the 
active participation of the mortgage lender or mortgage servicer. Once 
again, we throw money at Wall Street--at the bankers and lenders--and 
leave individuals and families with nothing.
  The bill also reauthorizes programs under the McKinney-Vento Homeless 
Assistance Act. I am grateful that the plight of the homeless and the 
growing homeless population has finally merited the attention of 
Congress; however I am dismayed by some of the provisions in the final 
bill as well as the process used to arrive at the terms of the relevant 
language. The problem of homelessness in this country deserves more 
attention in the House of Representatives than a mere fraction of 
debate time on a suspension bill. If we had more time and different 
circumstances, we might have had the opportunity to correct some of the 
privacy concerns as well as the provisions that limit eligible uses of 
funds.
  Despite the shortcomings in this bill, it represents a small step in 
the right direction on the whole. I remain hopeful that Congress will 
continue to improve the HOPE for Homeowners programs as well as the 
plight of the growing numbers of homeless citizens. In the end, we must 
adopt a default posture that accommodates communities, families, and 
individuals, rather than a default posture that accommodates bankers 
and financial institutions. Only then will we be able to repair our 
economy and put our country back on a path of prosperity and growth.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of S. 
896, ``Helping Families Save Their Homes in Bankruptcy Act of 2009.'' I 
would like to thank Chairman Conyers of the House Judiciary Committee 
and Chairman Barney Frank of the Financial Services Committee for their 
leadership on this issue. I also would like to thank Arthur D. Sidney 
of my staff who serves as my able Legislative Director. This issue is 
now before this body again for consideration.
  Mr. Speaker, I urge my colleagues to support this bill because it 
provides a viable medium for bankruptcy judges to modify the

[[Page 12794]]

terms of mortgages held by homeowners who have little recourse but to 
declare bankruptcy.
  This bill could not have come at a more timely moment. This bill is 
on the floor of the House within weeks after the President's address 
before the Joint Session of Congress where President Obama outlined his 
economic plan for America and discussed the current economic situation 
that this country is facing.
  To be sure, there are many economic woes that saddle this country. 
The statistics are staggering.
  Home foreclosures are at an all-time high and they will increase as 
the recession continues. In 2006, there were 1.2 million foreclosures 
in the United States, representing an increase of 42 percent over the 
prior year. During 2007 through 2008, mortgage foreclosures were 
estimated to result in a whopping $400 billion worth of defaults and 
$100 billion in losses to investors in mortgage securities. This means 
that one per 62 American households is currently approaching levels not 
seen since the Depression.
  The current economic crisis and the foreclosure blight has affected 
new home sales and depressed home value generally. New home sales have 
fallen by about 50 percent. One in six homeowners owes more on a 
mortgage than the home is worth which raises the possibility of 
default. Home values have fallen nationwide from an average of 19 
percent from their peak in 2006, and this price plunge has wiped out 
trillions of dollars in home equity. The tide of foreclosure might 
become self-perpetuating. The nation could be facing a housing 
depression something far worse than a recession.
  Obviously, there are substantial societal and economic costs of home 
foreclosures that adversely impact American families, their 
neighborhoods, communities and municipalities. A single foreclosure 
could impose direct costs on local government agencies totaling more 
than $34,000.
  I am glad that this legislation is finally on the floor of the United 
States House of Representatives. I have long championed in the first 
TARP bill that was introduced and signed late last Congress, that 
language be included to specifically address the issue of mortgage 
foreclosures. I had asked that $100 billion be set aside to address 
that issue. Now, my idea has been vindicated as the TARP today has 
included language and we here today are continuing to engage in the 
dialogue to provide monies to those in mortgage foreclosure. I have 
also asked for modification of homeowners' existing loans to avoid 
mortgage foreclosure. I believe that the rules governing these loans 
should be relaxed. These are indeed tough economic times that require 
tough measures.
  Because of the pervasive home foreclosures, federal legislation is 
necessary to curb the fall out from the subprime mortgage crisis. For 
consumers facing a foreclosure sale who want to retain their homes, 
Chapter 13 of the Bankruptcy Code provides some modicum of protection. 
The Supreme Court has held that the exception to a Chapter 13's ability 
to modify the rights of creditors applies even if the mortgage is 
under-secured. Thus, if a Chapter 13 debtor owes $300,000 on a mortgage 
for a home that is worth less than $200,000, he or she must repay the 
entire amount in order to keep his or her home, even though the maximum 
that the mortgage would receive upon foreclosure is the home's value, 
i.e., $200,000, less the costs of foreclosure.
  Importantly, S. 896 provides for a relaxation of the bankruptcy 
provisions and waives the mandatory requirement that a debtor must 
receive credit counseling prior to the filing for bankruptcy relief, 
under certain circumstances. The waiver applies in a Chapter 13 case 
where the debtor submits to the court a certification that the debtor 
has received notice that the holder of a claim secured by the debtor's 
principal residence may commence a foreclosure proceeding against such 
residence.
  This bill also prohibits claims arising from violations of consumer 
protection laws. Specifically, this bill amends the Bankruptcy Code to 
disallow a claim that is subject to any remedy for damages or 
rescission as a result of the claimant's failure to comply with any 
applicable requirement under the Truth in Lending Act or other 
applicable state or federal consumer protection law in effect when the 
noncompliance took place, notwithstanding the prior entry of a 
foreclosure judgment.
  S. 896 also amends the Bankruptcy Code to permit modification of 
certain mortgages that are secured by the debtor's principal residence 
in specified respects. Lastly, the bill provides that the debtor, the 
debtor's property, and property of the bankruptcy estate are not liable 
for a fee, cost, or charge incurred while the Chapter 13 case is 
pending and that arises from a debt secured by the debtor's principal 
residence, unless the holder of the claim complies with certain 
requirements.
  I have long championed the rights of homeowners, especially those 
facing mortgage foreclosure. I have worked with the Chairman of the 
House Judiciary Committee to include language that would relax the 
bankruptcy provisions to allow those facing mortgage foreclosure to 
restructure their debt to avoid foreclosure.
  Because I have long championed the rights of homeowners facing 
mortgage foreclose in the recent TARP bill and before the Judiciary 
Committee, I have worked with Chairman Conyers and his staff to add 
language that would make the bill stronger and that would help more 
Americans. I co-sponsored sections of the Manager's Amendment and I 
urge my colleagues to support the bill.
  Specifically, I worked with Chairman Conyers to ensure that in 
section 2 of the amendment, section 109(h) of the Bankruptcy Code would 
be amended to waive the mandatory requirement, under current law, that 
a debtor receive credit counseling prior to filing for bankruptcy 
relief. Under the amended language there is now a waiver that will 
apply where the debtor submits to the court a certification that the 
debtor has received notice that the holder of a claim secured by the 
debtor's principal residence may commence a foreclosure proceeding 
against such residence.
  This is important because it affords the debtor the maximum relief 
without having to undergo a slow credit counseling process. This will 
help prevent the debtors credit situation from worsening, potentially 
spiraling out of control, and result in the eventual loss of his or her 
home.
  The bill relaxes certain Bankruptcy requirements under Chapter 13 so 
that the debtor can modify the terms of the mortgage secured by his or 
her primary residence. This is an idea that I have long championed in 
the TARP legislation--the ability of debtors to modify their existing 
primary mortgages. Section 4 allows for a modification of the mortgage 
for a period of up to 40 years. Such modification cannot occur if the 
debtor fails to certify that it contacted the creditor before filing 
for bankruptcy. In this way, the language in the Manager's Amendment 
allows for the creditor to demonstrate that it undertook its ``last 
clear'' chance to work out the restructuring of the debt with its 
creditor before filing bankruptcy.
  Importantly, the bill amends the bankruptcy code to provide that a 
debtor, the debtor's property, and property of the bankruptcy estate 
are not liable for fees and costs incurred while the Chapter 13 case is 
pending and that arises from a claim for debt secured by the debtor's 
principal residence.
  Lastly, I worked to get language in the bill that would allow the 
debtors and creditors to negotiate before a declaration of bankruptcy 
is made. I made sure that the bill addresses present situations at the 
time of enactment where homeowners are in the process of mortgage 
foreclosure.
  Texas ranks 17th in foreclosures. Texas would have faired far worse 
but for the fact that homeowners enjoy strong constitutional 
protections under the state's home-equity lending law. These consumer 
protections include a 3 percent cap on lender's fees, 80 percent loan-
to-value ratio (compared to many other states that allow borrowers to 
obtain 125 percent of their home's value), and mandatory judicial sign-
off on any foreclosure proceeding involving a defaulted home-equity 
loan.
  Still, in the last month, in Texas alone there have been 30,720 
foreclosures and sadly 15,839 bankruptcies. Much of this has to do with 
a lack of understanding about finance--especially personal finance.
  Last year, Americans' personal income decreased $20.7 billion, or 0.2 
percent, and disposable personal income (DPI) decreased $11.8 billion, 
or 0.1 percent, in November, according to the Bureau of Economic 
Analysis. Personal consumption expenditures (PCE) decreased $56.1 
billion, or 0.6 percent. In India, household savings are about 23 
percent of their GDP.
  Even though the rate of increase has showed some slowing, 
uncertainties remain. Foreclosures and bankruptcies are high and could 
still beat last year's numbers.
  Home foreclosures are at an all-time high and they will increase as 
the recession continues. In 2006, there were 1.2 million foreclosures 
in the United States, representing an increase of 42 percent over the 
prior year. During 2007 through 2008, mortgage foreclosures were 
estimated to result in a whopping $400 billion worth of defaults and 
$100 billion in losses to investors in mortgage securities. This means 
that one per 62 American households is currently approaching levels not 
seen since the Depression.
  One in six homeowners owes more on a mortgage than the home is worth 
raising the possibility of default. Home values have fallen nationwide 
from an average of 19 percent

[[Page 12795]]

from their peak in 2006 and this price plunge has wiped out trillions 
of dollars in home equity. The tide of foreclosure might become self-
perpetuating. The nation could be facing a housing depression--
something far worse than a recession.
  Obviously, there are substantial societal and economic costs of home 
foreclosures that adversely impact American families, their 
neighborhoods, communities and municipalities. A single foreclosure 
could impose direct costs on local government agencies totaling more 
than $34,000.
  Mr. HOLT. Mr. Speaker, I rise today in support of the Helping 
Families Save Their Homes Act of 2009 (S. 896), companion legislation 
to similar legislation we approved in the House in March to combat the 
foreclosure crisis. I commend Senator Dodd and the Members of the 
Senate Committee on Financial Services for their leadership in crafting 
and fine-tuning this legislation, and I urge my colleagues to support 
it.
  According to a leading foreclosure research organization, mortgage 
foreclosure activity increased by 24 percent during the first quarter 
of 2009, compared to the first quarter 2008. One in every 159 housing 
units in the United States received a foreclosure notice during the 
first quarter of this year. In addition, foreclosures in March 
increased by 17 percent from February, and by 46 percent compared to 
March 2008. We must act now, and we must act decisively and 
comprehensively, to stem this crisis. The Helping Families Save Their 
Homes Act attacks the foreclosure crisis aggressively and approaches 
the problem from several angles at the same time, but is measured in 
its application.
  The bill amends the HOPE for Homeowners Program, to provide greater 
incentives for mortgage servicers to modify mortgages under the 
Program, to reduce administrative burdens to loan underwriters, and to 
permit payments to loan servicers and underwriters for each successful 
refinancing. It would also re-instate the authority of the Department 
of Housing and Urban Development (HUD) to conduct an auction to 
refinance loans on a wholesale or bulk basis. These modifications use 
funding already authorized under the Emergency Economic Stabilization 
Act enacted in October 2008.
  The bill also contains provisions to ensure better that predatory 
lenders are not allowed to participate in the FHA home mortgage 
insurance program. At the same time, it protects helpful mortgage 
lenders and servicers, who might otherwise be subject to litigation for 
changing the terms of a mortgage after closing. The bill provides a 
safe harbor from liability to mortgage servicers issuers, trustees, 
loan sellers, depositors, and others who participate in loan 
modifications, to the extent they were required to assist and the 
modification complied with the Hope for Homeowners program or was 
otherwise consistent with the Administration's foreclosure mitigation 
programs.
  Importantly, the bill will also extend through 2013 the temporary 
increase to $250,000 in deposit insurance coverage for both the Federal 
Deposit Insurance Corporation (FDIC)-insured deposits and National 
Credit Union Administration (NCUA)-insured deposits, which is currently 
scheduled to expire in December 2009. It also permanently increases the 
FDIC's borrowing authority to $100 billion (with an increase until the 
end of 2010 to $300 billion), and increases the NCUA's borrowing 
authority to $6 billion (with a temporary increase to $30 billion).
  And the bill includes the first major reauthorization of funding 
under the McKinney-Vento Homeless Assistance Act. I was pleased to 
support $100 million for McKinney-Vento under the American Recovery and 
Reinvestment Act enacted into law earlier this year. This important 
collaborative program between the public and private sectors has 
disbursed more than $2 billion in funding to provide shelter, food and 
support services for homeless and hungry individuals nationwide in just 
over 20 years of existence, and this bill will authorize that amount 
for Fiscal Year 2010 alone. I will work with my colleagues to make sure 
we fully fund this authorized level of funding, to assisting America's 
neediest and most vulnerable citizens.
  This bill takes many important and decisive steps to help mitigate 
the foreclosure crisis and ease the suffering of our Nation's homeless 
and hungry, and I urge my colleagues to support it.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield back the balance of 
my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Massachusetts (Mr. Frank) that the House suspend the 
rules and pass the Senate bill, S. 896, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. FRANK of Massachusetts. Mr. Speaker, on that I demand the yeas 
and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________