[House Report 118-645]
[From the U.S. Government Publishing Office]


118th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                             { 118-645

======================================================================



 
                         YES IN MY BACKYARD ACT

                                _______
                                

August 30, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

          Mr. McHenry, from the Committee on Financial Services, 
                        submitted the following   
                               

                              R E P O R T

                        [To accompany H.R. 3507]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3507) to require certain grantees under title I 
of the Housing and Community Development Act of 1974 to submit 
a plan to track discriminatory land use policies, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS


Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Related Hearing..................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     4
Committee Oversight Findings.....................................     7
Performance Goals and Objectives.................................     7
Congressional Budget Office Estimates............................     7
New Budget Authority, Entitlement Authority, and Tax Expenditures     8
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     8
Applicability to Legislative Branch..............................     8
Earmark Identification...........................................     8
Duplication of Federal Programs..................................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Yes In My Backyard Act''.

SEC. 2. PURPOSE.

  The purpose of this Act is to discourage the use of discriminatory 
land use policies and remove barriers to making housing more affordable 
in order to further the original intent of the Community Development 
Block Grant program.

SEC. 3. LAND USE PLAN.

  (a) In General.--Section 104 of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5304) is amended by adding at the end the 
following:
  ``(n) Plan to Track and Reduce Discriminatory Land Use Policies.--
          ``(1) In general.--Prior to receipt in any fiscal year of a 
        grant from the Secretary under subsection (b), (d)(1), or 
        (d)(2)(B) of section 106, each recipient shall have prepared 
        and submitted, not less frequently than once during the 
        preceding 5-year period, in accordance with this subsection and 
        in such standardized form as the Secretary shall, by 
        regulation, prescribe, with respect to each land use policy 
        described in paragraph (2) that is applicable to the 
        jurisdiction served by the recipient, a description of--
                  ``(A) whether the recipient has already adopted the 
                policy in the jurisdiction served by the recipient;
                  ``(B) the plan of the recipient to implement the 
                policy in that jurisdiction; or
                  ``(C) the ways in which adopting the policy will 
                benefit the jurisdiction.
          ``(2) Land use policies.--The policies described in this 
        paragraph are as follows:
                  ``(A) Enacting high-density single-family and 
                multifamily zoning.
                  ``(B) Expanding by-right multifamily zoned areas.
                  ``(C) Allowing duplexes, triplexes, or fourplexes in 
                areas zoned primarily for single-family residential 
                homes.
                  ``(D) Allowing manufactured homes in areas zoned 
                primarily for single-family residential homes.
                  ``(E) Allowing multifamily development in retail, 
                office, and light manufacturing zones.
                  ``(F) Allowing single-room occupancy development 
                wherever multifamily housing is allowed.
                  ``(G) Reducing minimum lot size.
                  ``(H) Ensuring historic preservation requirements and 
                other land use policies or requirements are coordinated 
                to encourage creation of housing in historic buildings 
                and historic districts.
                  ``(I) Increasing the allowable floor area ratio in 
                multifamily housing areas.
                  ``(J) Creating transit-oriented development zones.
                  ``(K) Streamlining or shortening permitting processes 
                and timelines, including through one-stop and parallel-
                process permitting.
                  ``(L) Eliminating or reducing off-street parking 
                requirements.
                  ``(M) Ensuring impact and utility investment fees 
                accurately reflect required infrastructure needs and 
                related impacts on housing affordability are otherwise 
                mitigated.
                  ``(N) Allowing prefabricated construction.
                  ``(O) Reducing or eliminating minimum unit square 
                footage requirements.
                  ``(P) Allowing the conversion of office units to 
                apartments.
                  ``(Q) Allowing the subdivision of single-family homes 
                into duplexes.
                  ``(R) Allowing accessory dwelling units, including 
                detached accessory dwelling units, on all lots with 
                single-family homes.
                  ``(S) Establishing density bonuses.
                  ``(T) Eliminating or relaxing residential property 
                height limitations.
                  ``(U) Using property tax abatements to enable higher 
                density and mixed-income communities.
                  ``(V) Donating vacant land for affordable housing 
                development.
          ``(3) Effect of submission.--A submission under this 
        subsection shall not be binding with respect to the use or 
        distribution of amounts received under section 106.
          ``(4) Acceptance or nonacceptance of plan.--The acceptance or 
        nonacceptance of any plan submitted under this subsection in 
        which the information required under this subsection is 
        provided is not an endorsement or approval of the plan, 
        policies, or methodologies, or lack thereof.''.
  (b) Effective Date.--The requirements under subsection (n) of section 
104 of the Housing and Community Development Act of 1974 (42 U.S.C. 
5304), as added by subsection (a), shall--
          (1) take effect on the date that is 1 year after the date of 
        enactment of this Act; and
          (2) apply to recipients of a grant under subsection (b), 
        (d)(1), or (d)(2)(B) of section 106 of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5306) before, on, 
        and after such date.

                          Purpose and Summary

    Introduced on May 18, 2023, by Representative Derek Kilmer, 
H.R. 3507, the Yes in My Backyard (YIMBY) Act, would require 
communities that receive Community Development Block Grant 
(CDBG) program grants to submit, as part of their five-year 
development plan, a report that tracks any discriminatory land 
use policies and other barriers to constructing affordable 
housing.

                  Background and Need for Legislation

    Throughout the 118th Congress, Committee Republicans have 
focused on local zoning and regulatory barriers to creating 
affordable housing. According to the National Association of 
Home Builders (NAHB) and the National Multifamily Housing 
Council (NMHC), up to 30 percent of the cost of a multifamily 
development can be attributed to regulations at the local, 
state, and national level.\1\ Land-use and zoning reforms are 
necessary to increase the supply of available homes and lower 
costs for potential homebuyers.
---------------------------------------------------------------------------
    \1\Regulation: Over 30 Percent of the Cost of a Multifamily 
Development, National Association of Home Builders, National 
Multifamily Housing Council (June 2018), available at: https://
www.nmhc.org/contentassets/60365effa073432a8a168619e0f30895/nmhc-nahb-
cost-of-
regulations.pdf.
---------------------------------------------------------------------------
    The YIMBY Act would help eliminate barriers to development 
by requiring CDBG recipients to report periodically on the 
extent to which they are examining and removing discriminatory 
land use policies that hinder housing affordability. This 
includes enacting changes that allow for the greater use of 
duplexes and triplexes, reducing minimum lot size, allowing 
prefabricated construction, and removing or reducing off-street 
parking requirements. Because localities are already required 
to submit five-year development plans under the CDBG program, 
the additional reporting required by H.R. 3507 is unlikely to 
pose a burden on localities.
    A previous version of this bill, H.R. 4351, passed both the 
Committee and the House by voice vote during the 116th 
Congress. H.R. 3507 is supported by over 250 organizations, 
which include the National Association of Realtors, the 
Mortgage Bankers Association, the National Association of Home 
Builders, Americans for Prosperity, the National Apartments 
Association, and Habitat for Humanity International.\2\
---------------------------------------------------------------------------
    \2\https://www.young.senate.gov/wp-content/uploads/imo/media/doc/
yimby_118th_support_
letter.pdf.
---------------------------------------------------------------------------

                            Related Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearing was used to develop H.R. 3507: The Subcommittee on 
Housing and Insurance held a hearing on December 6, 2023, 
titled ``Housing Affordability: Governmental Barriers and 
Market-Based Solutions.''

                        Committee Consideration

    The Committee on Financial Services met in open session on 
May 16, 2024, and ordered H.R. 3507 as amended to be reported 
favorably to the House by a recorded vote of 48 ayes to 0 nays 
(Record vote no. FC-155), a quorum being present. Before the 
question was called to order the bill favorably reported, the 
Committee adopted an amendment in the nature of a substitute 
offered by Mr. Flood by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the order to report legislation and amendments thereto. H.R. 
3507 as amended was ordered reported favorably to the House by 
a recorded vote of 48 ayes to 0 nays (Record vote no. FC-155), 
a quorum being present.
    An amendment offered by Ms. Pressley, no. 12, was not 
agreed to by a recorded vote of 21 ayes to 27 nays, a quorum 
being present (Recorded vote no. FC-154). 

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the goal of H.R. 3507 is to require 
certain grantees that receive funding under title I of the 
Housing and Community Development Act of 1974 to submit a plan 
to track their local restrictive land use policies and efforts 
to remove those regulatory barriers to affordable housing.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 3507 would require state and local governments that 
receive assistance under the Community Development Block Grant 
program to submit descriptions of their land use policies every 
five years to the Department of Housing and Urban Development 
(HUD). The bill also would require those governments to update 
the department on their plans for adopting and implementing 
those policies and to describe the ways in which they would 
benefit their jurisdictions.
    Using information from HUD, CBO estimates that implementing 
H.R. 3507 would cost less than $500,000 for administrative 
costs related to receiving and processing those documents. Any 
related spending would be subject to the availability of 
appropriated funds.
    The CBO staff contact for this estimate is Jon Sperl. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

   New Budget Authority, Entitlement Authority, and Tax  
                      Expenditures 

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1973.

                       Federal Mandates Statement

    Pursuant to section 423 of the Unfunded Mandates Reform 
Act, the Committee adopts as its own the estimate of the 
Federal mandates prepared by the Director of the Congressional 
Budget Office.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
Federal program, including any program that was included in a 
report to Congress pursuant to section 21 of the Public Law 
111-139 or the most recent Catalog of Federal Domestic 
Assistance.

             Section-by-Section Analysis of the Legislation

    Section 1. Sets the short title of the bill as the ``Yes In 
My Backyard Act.''
    Section 2. Establishes the purpose of the Act as 
discouraging the use of discriminatory land use policies and 
removing barriers to making housing more affordable to further 
the original intent of the CDBG program.
    Section 3. Amends the Housing and Community Development Act 
of 1974 to require communities that receive CDBG funding to 
prepare and submit to the Department of Housing and Urban 
Development as part of their five-year development plan, a 
report that tracks implementation of a variety of land use 
policies and the removal of other barriers to constructing 
affordable housing. The covered land use policies include 
enacting changes that allow for the greater use of duplexes and 
triplexes, reducing minimum lot size, allowing prefabricated 
construction, and removing or reducing off-street parking 
requirements. Establishes that the effective date for this new 
land use reporting requirement as one year after the date of 
enactment of this Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 

                   TITLE I--COMMUNITY DEVELOPMENT 

           *       *       *       *       *       *       *


                   statement of activities and review

  Sec. 104. (a)(1) Prior to the receipt in any fiscal year of a 
grant under section 106(b) by any metropolitan city or urban 
county, under section 106(d) by any State, under section 
106(d)(2)(B) by any unit of general local government, or under 
section 106(a)(3) by any insular area, the grantee shall have 
prepared a final statement of community development objectives 
and projected use of funds and shall have provided the 
Secretary with the certifications required in subsection (b) 
and, where appropriate, subsection (c). In the case of 
metropolitan cities and urban counties receiving grants 
pursuant to section 106(b), units of general local government 
receiving grants pursuant to section 106(d)(2)(B), and insular 
areas receiving grants pursuant to section 106(a)(3), the 
statement of projected use of funds shall consist of proposed 
community development activities. In the case of States 
receiving grants pursuant to section 106(d), the statement of 
projected use of funds shall consist of the method by which the 
States will distribute funds to units of general local 
government.
  (2) In order to permit public examination and appraisal of 
such statements, to enhance the public accountability of 
grantees, and to facilitate coordination of activities with 
different levels of government, the grantee shall in a timely 
manner--
          (A) furnish citizens or, as appropriate, units of 
        general local government information concerning the 
        amount of funds available for proposed community 
        development and housing activities and the range of 
        activities that may be undertaken, including the 
        estimated amount proposed to be used for activities 
        that will benefit persons of low and moderate income 
        and the plans of the grantee for minimizing 
        displacement of persons as a result of activities 
        assisted with such funds and to assist persons actually 
        displaced as a result of such activities;
          (B) publish a proposed statement in such manner to 
        afford affected citizens or, as appropriate, units of 
        general local government an opportunity to examine its 
        content and to submit comments on the proposed 
        statement and on the community development performance 
        of the grantee;
          (C) hold one or more public hearings to obtain the 
        views of citizens on community development and housing 
        needs;
          (D) provide citizens or, as appropriate, units of 
        general local government with reasonable access to 
        records regarding the past use of funds received under 
        section 106 by the grantee; and
          (E) provide citizens or, as appropriate, units of 
        general local government with reasonable notice of, and 
        opportunity to comment on, any substantial change 
        proposed to be made in the use of funds received under 
        section 106 from one eligible activity to another or in 
        the method of distribution of such funds.
In preparing the final statement, the grantee shall consider 
any such comments and views and may, if deemed appropriate by 
the grantee, modify the proposed statement. The final statement 
shall be made available to the public, and a copy shall be 
furnished to the Secretary together with the certifications 
required under subsection (b) and, where appropriate, 
subsection (c). Any final statement of activities may be 
modified or amended from time to time by the grantee in 
accordance with the same procedures required in this paragraph 
for the preparation and submission of such statement.
  (3) A grant under section 106 may be made only if the grantee 
certifies that it is following a detailed citizen participation 
plan which--
          (A) provides for and encourages citizen 
        participation, with particular emphasis on 
        participation by persons of low and moderate income who 
        are residents of slum and blight areas and of areas in 
        which section 106 funds are proposed to be used, and in 
        the case of a grantee described in section 106(a), 
        provides for participation of residents in low and 
        moderate income neighborhoods as defined by the local 
        jurisdiction;
          (B) provides citizens with reasonable and timely 
        access to local meetings, information, and records 
        relating to the grantee's proposed use of funds, as 
        required by regulations of the Secretary, and relating 
        to the actual use of funds under this title;
          (C) provides for technical assistance to groups 
        representative of persons of low and moderate income 
        that request such assistance in developing proposals 
        with the level and type of assistance to be determined 
        by the grantee;
          (D) provides for public hearings to obtain citizen 
        views and to respond to proposals and questions at all 
        stages of the community development program, including 
        at least the development of needs, the review of 
        proposed activities, and review of program performance, 
        which hearings shall be held after adequate notice, at 
        times and locations convenient to potential or actual 
        beneficiaries, and with accommodation for the 
        handicapped;
          (E) provides for a timely written answer to written 
        complaints and grievances, within 15 working days where 
        practicable; and
          (F) identifies how the needs of non-English speaking 
        residents will be met in the case of public hearings 
        where a significant number of non-English speaking 
        residents can be reasonably expected to participate.
This paragraph may not be construed to restrict the 
responsibility or authority of the grantee for the development 
and execution of its community development program.
  (b) Any grant under section 106 shall be made only if the 
grantee certifies to the satisfaction of the Secretary that--
          (1) the grantee is in full compliance with the 
        requirements of subsection (a)(2) (A), (B), and (C) and 
        has made the final statement available to the public;
          (2) the grant will be conducted and administered in 
        conformity with the Civil Rights Act of 1964 and the 
        Fair Housing Act, and the grantee will affirmatively 
        further fair housing;
          (3) the projected use of funds has been developed so 
        as to give maximum feasible priority to activities 
        which will benefit low- and moderate-income families or 
        aid in the prevention or elimination of slums or 
        blight, and the projected use of funds may also include 
        activities which the grantee certifies are designed to 
        meet other community development needs having a 
        particular urgency because existing conditions pose a 
        serious and immediate threat to the health or welfare 
        of the community where other financial resources are 
        not available to meet such needs, except that (A) the 
        aggregate use of funds received under section 106 and, 
        if applicable, as a result of a guarantee or a grant 
        under section 108, during a period specified by the 
        grantee of not more that 3 years, shall principally 
        benefit persons of low and moderate income in a manner 
        that ensures that not less than 70 percent of such 
        funds are used for activities that benefit such persons 
        during such period; and (B) a grantee that borders on 
        the Great Lakes and that experiences significant 
        adverse financial and physical effects due to lakefront 
        erosion or flooding may include in the projected use of 
        funds activities that are clearly designed to alleviate 
        the threat posed, and rectify the damage caused, by 
        such erosion or flooding if such activities will 
        principally benefit persons of low and moderate income 
        and the grantee certifies that such activities are 
        necessary to meet other needs having a particular 
        urgency;
          (4) it has developed a community development plan 
        pursuant to subsection (m), for the period specified by 
        the grantee under paragraph (3), that identifies 
        community development needs and specifies both short- 
        and long-term community development objectives that 
        have been developed in accordance with the primary 
        objective and requirements of this title;
          (5) the grantee will not attempt to recover any 
        capital costs of public improvements assisted in whole 
        or part under section 106 or with amounts resulting 
        from a guarantee under section 108 by assessing any 
        amount against properties owned and occupied by persons 
        of low and moderate income, including any fee charged 
        or assessment made as a condition of obtaining access 
        to such public improvements, unless (A) funds received 
        under section 106 are used to pay the proportion of 
        such fee or assessment that relates to the capital 
        costs of such public improvements that are financed 
        from revenue sources other than under this title; or 
        (B) for purposes of assessing any amount against 
        properties owned and occupied by persons of moderate 
        income, the grantee certifies to the Secretary that it 
        lacks sufficient funds received under section 106 to 
        comply with the requirements of subparagraph (A); and
          (6) the grantee will comply with the other provisions 
        of this title and with other applicable laws.
  (c) A grant may be made under section 106(b) only if the unit 
of general local government certifies that it is following--
          (1) a current housing affordability strategy which 
        has been approved by the Secretary in accordance with 
        section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act, or
          (2) a housing assistance plan which was approved by 
        the Secretary during the 180-day period beginning on 
        the date of enactment of the Cranston-Gonzalez National 
        Affordable Housing Act, or during such longer period as 
        may be prescribed by the Secretary in any case for good 
        cause.
  (d)(1) A grant under section 106 or 119 may be made only if 
the grantee certifies that it is following a residential 
antidisplacement and relocation assistance plan. A grantee 
receiving a grant under section 106(a) or section 119 shall so 
certify to the Secretary. A unit of general local government 
receiving amounts from a State under section 106(d) shall so 
certify to the State, and a unit of general local government 
receiving amounts from the Secretary under section 106(d) shall 
so certify to the Secretary.
  (2) The residential antidisplacement and relocation 
assistance plan shall in connection with a development project 
assisted under section 106 or 119--
          (A) in the event of such displacement, provide that--
                  (i) governmental agencies or private 
                developers shall provide within the same 
                community comparable replacement dwellings for 
                the same number of occupants as could have been 
                housed in the occupied and vacant occupiable 
                low and moderate income dwelling units 
                demolished or converted to a use other than for 
                housing for low and moderate income persons, 
                and provide that such replacement housing may 
                include existing housing assisted with project 
                based assistance provided under section 8 of 
                the United States Housing Act of 1937;
                  (ii) such comparable replacement dwellings 
                shall be designed to remain affordable to 
                persons of low and moderate income for 10 years 
                from the time of initial occupancy;
                  (iii) relocation benefits shall be provided 
                for all low or moderate income persons who 
                occupied housing demolished or converted to a 
                use other than for low or moderate income 
                housing, including reimbursement for actual and 
                reasonable moving expenses, security deposits, 
                credit checks, and other moving-related 
                expenses, including any interim living costs; 
                and in the case of displaced persons of low and 
                moderate income, provide either--
                          (I) compensation sufficient to ensure 
                        that, for a 5-year period, the 
                        displaced families shall not bear, 
                        after relocation, a ratio of shelter 
                        costs to income that exceeds 30 
                        percent; or
                          (II) if elected by a family, a lump-
                        sum payment equal to the capitalized 
                        value of the benefits available under 
                        subclause (I) to permit the household 
                        to secure participation in a housing 
                        cooperative or mutual housing 
                        association; and
                  (iv) persons displaced shall be relocated 
                into comparable replacement housing that is--
                          (I) decent, safe, and sanitary;
                          (II) adequate in size to accommodate 
                        the occupants;
                          (III) functionally equivalent; and
                          (IV) in an area not subject to 
                        unreasonably adverse environmental 
                        conditions;
          (B) provide that persons displaced shall have the 
        right to elect, as an alternative to the benefits under 
        this subsection, to receive benefits under the Uniform 
        Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970 (42 U.S.C. 4601 et seq.) if such 
        persons determine that it is in their best interest to 
        do so; and
          (C) provide that where a claim for assistance under 
        subparagraph (A)(iv) is denied by a grantee, the 
        claimant may appeal to the Secretary in the case of a 
        grant under section 106 or 119 or to the appropriate 
        State official in the case of a grant under section 
        106(d), and that the decision of the Secretary or the 
        State official shall be final unless a court determines 
        the decision was arbitrary and capricious.
  (3) Paragraphs (2)(A)(i) and (2)(A)(ii) shall not apply in 
any case in which the Secretary finds, on the basis of 
objective data, that there is available in the area an adequate 
supply of habitable affordable housing for low and moderate 
income persons. A determination under this paragraph is final 
and nonreviewable.
  (e) Each grantee shall submit to the Secretary, at a time 
determined by the Secretary, a performance and evaluation 
report, concerning the use of funds made available under 
section 106, together with an assessment by the grantee of the 
relationship of such use to the objectives identified in the 
grantee's statement under subsection (a) and to the 
requirements of subsection (b)(3). Such report shall also be 
made available to the citizens in each grantee's jurisdiction 
in sufficient time to permit such citizens to comment on such 
report prior to its submission, and in such manner and at such 
times as the grantee may determine. The grantee's report shall 
indicate its programmatic accomplishments, the nature of and 
reasons for changes in the grantee's program objectives, 
indications of how the grantee would change its programs as a 
result of its experiences, and an evaluation of the extent to 
which its funds were used for activities that benefited low- 
and moderate-income persons. The report shall include a summary 
of any comments received by the grantee from citizens in its 
jurisdiction respecting its program. The Secretary shall 
encourage and assist national associations of grantees eligible 
under section 106(d)(2)(B), national associations of States, 
and national associations of units of general local government 
in nonentitlement areas to develop and recommend to the 
Secretary, within one year after the effective date of this 
sentence, uniform recordkeeping, performance reporting and 
evaluation reporting, and auditing requirements for such 
grantees, States, and units of general local government, 
respectively. Based on the Secretary's approval of these 
recommendations, the Secretary shall establish such 
requirements for use by such grantees, States, and units of 
general local government. The Secretary shall, at least on an 
annual basis, make such reviews and audits as may be necessary 
or appropriate to determine--
          (1) in the case of grants made under subsection 
        (a)(3), (b), or (d)(2)(B) of section 106, whether the 
        grantee has carried out its activities and, where 
        applicable, its housing assistance plan in a timely 
        manner, whether the grantee has carried out those 
        activities and its certifications in accordance with 
        the requirements and the primary objectives of this 
        title and with other applicable laws, and whether the 
        grantee has a continuing capacity to carry out those 
        activities in a timely manner; and
          (2) in the case of grants to States made under 
        section 106(d), whether the State has distributed funds 
        to units of general local government in a timely manner 
        and in conformance to the method of distribution 
        described in its statement, whether the State has 
        carried out its certifications in compliance with the 
        requirements of this title and other applicable laws, 
        and whether the State has made such reviews and audits 
        of the units of general local government as may be 
        necessary or appropriate to determine whether they have 
        satisfied the applicable performance criteria described 
        in paragraph (1) of this subsection.
The Secretary may make appropriate adjustments in the amount of 
the annual grants in accordance with the Secretary's findings 
under this subsection. With respect to assistance made 
available to units of general local government under section 
106(d), the Secretary may adjust, reduce, or withdraw such 
assistance, or take other action as appropriate in accordance 
with the Secretary's reviews and audits under this subsection, 
except that funds already expended on eligible activities under 
this title shall not be recaptured or deducted from future 
assistance to such units of general local government.
  (f) Insofar as they relate to funds provided under this 
title, the financial transactions of recipients of such funds 
may be audited by the General Accounting Office under such 
rules and regulations as may be prescribed by the Comptroller 
General of the United States. The representatives of the 
General Accounting Office shall have access to all books, 
accounts, records, reports, files, and other papers, things, or 
property belonging to or in use by such recipients pertaining 
to such financial transactions and necessary to facilitate the 
audit.
  (g)(1) In order to assure that the policies of the National 
Environmental Policy Act of 1969 and other provisions of law 
which further the purposes of such Act (as specified in 
regulations issued by the Secretary) are most effectively 
implemented in connection with the expenditure of funds under 
this title, and to assure to the public undiminished protection 
of the environment, the Secretary, in lieu of the environmental 
protection procedures otherwise applicable, may under 
regulations provide for the release of funds for particular 
projects to recipients of assistance under this title who 
assume all of the responsibilities for environmental review, 
decisionmaking, and action pursuant to such Act, and such other 
provisions of law as the regulations of the Secretary specify, 
that would apply to the Secretary were he to undertake such 
projects as Federal projects. The Secretary shall issue 
regulations to carry out this subsection only after 
consultation with the Council on Environmental Quality.
  (2) The Secretary shall approve the release of funds for 
projects subject to the procedures authorized by this 
subsection only if, at least fifteen days prior to such 
approval and prior to any commitment of funds to such projects 
other than for purposes authorized by section 105(a)(12) or for 
environmental studies, the recipient of assistance under this 
title has submitted to the Secretary a request for such release 
accompanied by a certification which meets the requirements of 
paragraph (3). The Secretary's approval of any such 
certification shall be deemed to satisfy his responsibilities 
under the National Environmental Policy Act of 1969 and such 
other provisions of law as the regulations of the Secretary 
specify insofar as those responsibilities relate to the 
releases of funds for projects to be carried out pursuant 
thereto which are covered by such certification.
  (3) A certification under the procedures authorized by this 
subsection shall--
          (A) be in a form acceptable to the Secretary,
          (B) be executed by the chief executive officer or 
        other officer of the recipient of assistance under this 
        title qualified under regulations of the Secretary,
          (C) specify that the recipient of assistance under 
        this title has fully carried out its responsibilities 
        as described under paragraph (1) of this subsection, 
        and
          (D) specify that the certifying officer (i) consents 
        to assume the status of a responsible Federal official 
        under the National Environmental Policy Act of 1969 and 
        each provision of law specified in regulations issued 
        by the Secretary insofar as the provisions of such Act 
        or other such provision of law apply pursuant to 
        paragraph (1) of this subsection, and (ii) is 
        authorized and consents on behalf of the recipient of 
        assistance under this title and himself to accept the 
        jurisdiction of the Federal courts for the purpose of 
        enforcement of his responsibilities as such an 
        official.
  (4) In the case of grants made to States pursuant to section 
106(d), the State shall perform those actions of the Secretary 
described in paragraph (2) and the performance of such actions 
shall be deemed to satisfy the Secretary's responsibilities 
referred to in the second sentence of such paragraph.
  (h)(1) Units of general local government receiving assistance 
under this title may receive funds, in one payment, in an 
amount not to exceed the total amount designated in the grant 
(or, in the case of a unit of general local government 
receiving a distribution from a State pursuant to section 
106(d), not to exceed the total amount of such distribution) 
for use in establishing a revolving loan fund which is to be 
established in a private financial institution and which is to 
be used to finance rehabilitation activities assisted under 
this title. Rehabilitation activities authorized under this 
section shall begin within 45 days after receipt of such 
payment and substantial disbursements from such fund must begin 
within 180 days after receipt of such payment.
  (2) The Secretary shall establish standards for such cash 
payments which will insure that the deposit result in 
appropriate benefits in support of the recipient's 
rehabilitation program. These standards shall be designed to 
assure that the benefits to be derived from the local program 
include, at a minimum, one or more of the following elements, 
or such other criteria as determined by the Secretary--
          (A) leverage of community development block grant 
        funds so that participating financial institutions 
        commit private funds for loans in the rehabilitation 
        program in amounts substantially in excess of deposit 
        of community development funds;
          (B) commitment of private funds for rehabilitation 
        loans at below-market interest rates or with repayment 
        periods lengthened or at higher risk than would 
        normally be taken;
          (C) provision of administrative services in support 
        of the rehabilitation program by the participating 
        lending institutions; and
          (D) interest earned on such cash deposits shall be 
        used in a manner which supports the community 
        rehabilitation program.
  (i) In any case in which a metropolitan city is located, in 
whole or in part, within an urban county, the Secretary may, 
upon the joint request of such city and county, approve the 
inclusion of the metropolitan city as part of the urban county 
for purposes of submitting a statement under section 104(a) and 
carrying out activities under this title.
  (j) Notwithstanding any other provision of law, any unit of 
general local government may retain any program income that is 
realized from any grant made by the Secretary, or any amount 
distributed by a State, under section 106 if (1) such income 
was realized after the initial disbursement of the funds 
received by such unit of general local government under such 
section; and (2) such unit of general local government has 
agreed that it will utilize the program income for eligible 
community development activities in accordance with the 
provisions of this title; except that the Secretary may, by 
regulation, exclude from consideration as program income any 
amounts determined to be so small that compliance with this 
subsection creates an unreasonable administrative burden on the 
unit of general local government. A State may require as a 
condition of any amount distributed by such State under section 
106(d) that a unit of general local government shall pay to 
such State any such income to be used by such State to fund 
additional eligible community development activities, except 
that such State shall waive such condition to the extent such 
income is applied to continue the activity from which such 
income was derived.
  (k) Each grantee shall provide for reasonable benefits to any 
person involuntarily and permanently displaced as a result of 
the use of assistance received under this title to acquire or 
substantially rehabilitate property.
  (l) Protection of Individuals Engaging in Non-Violent Civil 
Rights Demonstrations.--No funds authorized to be appropriated 
under section 103 of this Act may be obligated or expended to 
any unit of general local government that--
          (1) fails to adopt and enforce a policy prohibiting 
        the use of excessive force by law enforcement agencies 
        within its jurisdiction against any individuals engaged 
        in nonviolent civil rights demonstrations; or
          (2) fails to adopt and enforce a policy of enforcing 
        applicable State and local laws against physically 
        barring entrance to or exit from a facility or location 
        which is the subject of such non-violent civil rights 
        demonstration within its jurisdiction.
  (m) Community Development Plans.--
          (1) In general.--Prior to the receipt in any fiscal 
        year of a grant from the Secretary under subsection 
        (a)(2), (b), (d)(1), or (d)(2)(B) of section 106, each 
        recipient shall have prepared and submitted in 
        accordance with this subsection and in such 
        standardized form as the Secretary shall, by 
        regulation, prescribe a description of its priority 
        nonhousing community development needs eligible for 
        assistance under this title.
          (2) Local governments.--In the case of a recipient 
        that is a unit of general local government other than 
        an insular area--
                  (A) prior to the submission required by 
                paragraph (1), the recipient shall, to the 
                extent practicable, notify adjacent units of 
                general local government and solicit the views 
                of citizens on priority nonhousing community 
                development needs; and
                  (B) the description required under paragraph 
                (1) shall be submitted to the Secretary, the 
                State, and any other unit of general local 
                government within which the recipient is 
                located, in such standardized form as the 
                Secretary shall, by regulation, prescribe.
          (3) States.--In the case of a recipient that is a 
        State, the description required by paragraph (1)--
                  (A) shall include only the needs within the 
                State that affect more than one unit of general 
                local government and involve activities 
                typically funded by such States under this 
                title; and
                  (B) shall be submitted to the Secretary in 
                such standard form as the Secretary, by 
                regulation, shall prescribe.
          (4) Effect of submission.--A submission under this 
        subsection shall not be binding with respect to the use 
        or distribution of amounts received under section 106.
  (n) Plan to Track and Reduce Discriminatory Land Use 
Policies.--
          (1) In general.--Prior to receipt in any fiscal year 
        of a grant from the Secretary under subsection (b), 
        (d)(1), or (d)(2)(B) of section 106, each recipient 
        shall have prepared and submitted, not less frequently 
        than once during the preceding 5-year period, in 
        accordance with this subsection and in such 
        standardized form as the Secretary shall, by 
        regulation, prescribe, with respect to each land use 
        policy described in paragraph (2) that is applicable to 
        the jurisdiction served by the recipient, a description 
        of--
                  (A) whether the recipient has already adopted 
                the policy in the jurisdiction served by the 
                recipient;
                  (B) the plan of the recipient to implement 
                the policy in that jurisdiction; or
                  (C) the ways in which adopting the policy 
                will benefit the jurisdiction.
          (2) Land use policies.--The policies described in 
        this paragraph are as follows:
                  (A) Enacting high-density single-family and 
                multifamily zoning.
                  (B) Expanding by-right multifamily zoned 
                areas.
                  (C) Allowing duplexes, triplexes, or 
                fourplexes in areas zoned primarily for single-
                family residential homes.
                  (D) Allowing manufactured homes in areas 
                zoned primarily for single-family residential 
                homes.
                  (E) Allowing multifamily development in 
                retail, office, and light manufacturing zones.
                  (F) Allowing single-room occupancy 
                development wherever multifamily housing is 
                allowed.
                  (G) Reducing minimum lot size.
                  (H) Ensuring historic preservation 
                requirements and other land use policies or 
                requirements are coordinated to encourage 
                creation of housing in historic buildings and 
                historic districts.
                  (I) Increasing the allowable floor area ratio 
                in multifamily housing areas.
                  (J) Creating transit-oriented development 
                zones.
                  (K) Streamlining or shortening permitting 
                processes and timelines, including through one-
                stop and parallel-process permitting.
                  (L) Eliminating or reducing off-street 
                parking requirements.
                  (M) Ensuring impact and utility investment 
                fees accurately reflect required infrastructure 
                needs and related impacts on housing 
                affordability are otherwise mitigated.
                  (N) Allowing prefabricated construction.
                  (O) Reducing or eliminating minimum unit 
                square footage requirements.
                  (P) Allowing the conversion of office units 
                to apartments.
                  (Q) Allowing the subdivision of single-family 
                homes into duplexes.
                  (R) Allowing accessory dwelling units, 
                including detached accessory dwelling units, on 
                all lots with single-family homes.
                  (S) Establishing density bonuses.
                  (T) Eliminating or relaxing residential 
                property height limitations.
                  (U) Using property tax abatements to enable 
                higher density and mixed-income communities.
                  (V) Donating vacant land for affordable 
                housing development.
          (3) Effect of submission.--A submission under this 
        subsection shall not be binding with respect to the use 
        or distribution of amounts received under section 106.
          (4) Acceptance or nonacceptance of plan.--The 
        acceptance or nonacceptance of any plan submitted under 
        this subsection in which the information required under 
        this subsection is provided is not an endorsement or 
        approval of the plan, policies, or methodologies, or 
        lack thereof.

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