[119th Congress Public Law 101]
[From the U.S. Government Publishing Office]
[[Page 845]]
21ST CENTURY ROAD TO HOUSING ACT
[[Page 140 STAT. 846]]
Public Law 119-101
119th Congress
An Act
To increase the supply of housing in America, and for other
purposes. <<NOTE: July 11, 2026 - [H.R. 6644]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: 21st Century
ROAD to Housing Act.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 12 USC 1701 note.>> Short Title.--This Act may be cited
as the ``21st Century ROAD to Housing Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--OPPORTUNITIES FOR HOUSING
Sec. 101. Reforms to housing counseling and financial literacy programs.
Sec. 102. Federal guidelines for point-access block buildings.
Sec. 103. Exemption on construction or modification of residential
housing located on an infill site.
Sec. 104. Database of publicly owned land.
Sec. 105. FHA Small-Dollar Mortgages.
Sec. 106. Temperature Sensor Pilot Program.
Sec. 107. Housing supply frameworks.
TITLE II--BUILDING MORE IN AMERICA
Sec. 201. Increasing housing in opportunity zones.
Sec. 202. Whole-Home Repairs Act.
Sec. 203. Community Investment and Prosperity Act.
Sec. 204. Addition of affordable housing construction as an eligible
activity.
Sec. 205. Better Use of Intergovernmental and Local Development (BUILD)
Housing Act.
Sec. 206. Unlocking Housing Supply Through Streamlined and Modernized
Reviews Act.
Sec. 207. Grants for planning and implementation associated with
affordable housing.
Sec. 208. Innovation Fund.
Sec. 209. Accelerating Home Building Act.
Sec. 210. Revitalizing Empty Structures Into Desirable Environments
(RESIDE) Act.
Sec. 211. Housing Affordability Act.
Sec. 212. Rental Assistance Demonstration Program.
Sec. 213. Build Now Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
Sec. 301. Housing Supply Expansion Act.
Sec. 302. Modular Housing Production Act.
Sec. 303. Property Improvement and Manufactured Housing Loan
Modernization Act.
Sec. 304. PRICE Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
Sec. 401. Creating incentives for small-dollar loan originators.
Sec. 402. Small-dollar mortgage points and fees.
Sec. 403. Appraisal Industry Improvement Act.
[[Page 140 STAT. 847]]
Sec. 404. Helping More Families Save Act.
Sec. 405. Choice in Affordable Housing Act.
TITLE V--PROGRAM REFORM
Sec. 501. HOME Investment Partnerships Reauthorization and Reform Act.
Sec. 502. Rural Housing Service Reform Act.
Sec. 503. Incentivizing local solutions to homelessness.
Sec. 504. Reforming Disaster Recovery Act.
Sec. 505. New Moving to Work cohort.
TITLE VI--VETERANS AND HOUSING
Sec. 601. Military Service Question.
Sec. 602. Housing Unhoused Disabled Veterans Act.
Sec. 603. Veterans Affairs Loan Informed Disclosure (VALID) Act.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
Sec. 701. Requiring annual testimony and oversight from housing
regulators.
Sec. 702. FHA reporting requirements on safety and soundness.
Sec. 703. United States Interagency Council on Homelessness oversight.
Sec. 704. Appraisal Modernization Act.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
Sec. 801. HUD-USDA-VA Interagency Coordination Act.
Sec. 802. Streamlining Rural Housing Act.
Sec. 803. Improving self-sufficiency of families in HUD-subsidized
housing.
Sec. 804. GAO studies.
Sec. 805. Improving public housing agency accountability.
TITLE IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
Sec. 901. Community bank deposit access.
Sec. 902. Keeping deposits local.
Sec. 903. Tailored regulatory updates for supervisory testing.
Sec. 904. Credit union board modernization.
Sec. 905. Systemic risk authority transparency.
Sec. 906. Advancing the mentor-protege program for small financial
institutions.
Sec. 907. American access to banking.
Sec. 908. Promoting new bank formation.
Sec. 909. Rural depositories revitalization study.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
Sec. 1001. Homes are for people, not corporations.
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
Sec. 1101. Central bank digital currency.
TITLE XII--MISCELLANEOUS
Sec. 1201. Severability.
Sec. 1202. No additional funds authorized.
TITLE I--OPPORTUNITIES FOR HOUSING
SEC. 101. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
Section 106 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x) is amended--
(1) in subsection (a)(4)(C), by striking ``adequate
distribution'' and all that follows through ``foreclosure
rates'' and inserting ``that the recipients are geographically
diverse and include organizations that serve urban or rural
areas'';
(2) in subsection (e), by adding at the end the following:
``(6) Reviews.--The Secretary--
``(A) may conduct periodic reviews; and
[[Page 140 STAT. 848]]
``(B) shall conduct performance reviews of all
organizations receiving assistance under this section
that--
``(i) consist of a review of the
organization's compliance with all program
requirements; and
``(ii) may take into account the
organization's aggregate counselor performance
under paragraph (7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this
paragraph, the term `covered mortgage loan' means any
loan which is secured by a first or subordinate lien on
residential real property (including individual units of
condominiums and housing cooperatives) designed
principally for the occupancy of between 1 and 4
families that is--
``(i) insured by the Federal Housing
Administration under title II of the National
Housing Act (12 U.S.C. 1707 et seq.); or
``(ii) guaranteed under section 184 or 184A of
the Housing and Community Development Act of 1992
(12 U.S.C. 1715z-13a, 1715z-13b).
``(B) Comparison.--For each counselor employed by an
organization receiving assistance under this section for
prepurchase housing counseling, the Secretary may
consider the performance of the counselor compared to
the default rate of all counseled borrowers of a covered
mortgage loan in comparable markets and such other
factors as the Secretary determines appropriate to
further the purposes of this section.
``(8) <<NOTE: Determination.>> Certification.--If, based on
the comparison required under paragraph (7)(B), the Secretary
determines that a counselor lacks competence to provide
counseling in the areas described in subsection (e)(2) and such
action will not create a significant loss of capacity for
housing counseling services in the service area, the Secretary
may--
``(A) require continued education coupled with
successful completion of a probationary period;
``(B) require retesting if the counselor continues
to demonstrate a lack of competence under paragraph
(7)(B); and
``(C) <<NOTE: Suspension.>> suspend an individual
certification if a counselor fails to demonstrate
competence after not fewer than 2 retesting
opportunities under subparagraph (B).'';
(3) in subsection (i)--
(A) by redesignating paragraph (3) as paragraph (4);
and
(B) by inserting after paragraph (2) the following:
``(3) <<NOTE: Determination.>> Termination of assistance.--
``(A) In general.--The Secretary may deny renewal of
covered assistance to an organization or entity
receiving covered assistance if the Secretary determines
that the organization or entity, or the individual
through which the organization or entity provides
counseling, is not in compliance with program
requirements--
``(i) based on the performance review
described in subsection (e)(6); and
``(ii) in accordance with regulations issued
by the Secretary.
[[Page 140 STAT. 849]]
``(B) <<NOTE: Time period.>> Notice.--The Secretary
shall give an organization or entity receiving covered
assistance not less than 60 days prior written notice of
any denial of renewal under this paragraph, and the
determination of renewal shall not be finalized until
the end of that notice period.
``(C) Informal conference.--If requested in writing
by the organization or entity within the notice period
described in subparagraph (B), the organization or
entity shall be entitled to an informal conference with
the Deputy Assistant Secretary of Housing Counseling on
behalf of the Secretary at which the organization or
entity may present for consideration specific factors
that the organization or entity believes were beyond the
control of the organization or entity and that caused
the failure to comply with program requirements, such as
a lack of lender or servicer coordination or
communication with housing counseling agencies and
individual counselors.''; and
(4) by adding at the end the following:
``(j) Offering Foreclosure Mitigation Counseling.--
``(1) Covered mortgage loan defined.--In this subsection,
the term `covered mortgage loan' means any loan which is secured
by a first or subordinate lien on residential real property
(including individual units of condominiums and housing
cooperatives) or stock or membership in a cooperative ownership
housing corporation designed principally for the occupancy of
between 1 and 4 families that is--
``(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
``(B) guaranteed under section 184 or 184A of the
Housing and Community Development Act of 1992 (12 U.S.C.
1715z-13a, 1715z-13b);
``(C) made, guaranteed, or insured by the Department
of Veterans Affairs; or
``(D) made, guaranteed, or insured by the Department
of Agriculture.
``(2) <<NOTE: Time period.>> Opportunity for borrowers.--A
borrower with respect to a covered mortgage loan who is 30 days
or more delinquent on payments for the covered mortgage loan
shall be given an opportunity to participate in available
housing counseling.
``(3) Cost.--If the requirements of sections 202(a)(3) and
205(f) of the National Housing Act (12 U.S.C. 1708(a)(3),
1711(f)) are met, the fair market rate cost of counseling for
delinquent borrowers described in paragraph (2) with respect to
a covered mortgage loan described in paragraph (1)(A) shall be
paid for by the Mutual Mortgage Insurance Fund, as authorized
under section 203(r)(4) of the National Housing Act (12 U.S.C.
1709(r)(4)).''.
SEC. 102. <<NOTE: 42 USC 5301 note.>> FEDERAL GUIDELINES FOR
POINT-ACCESS BLOCK BUILDINGS.
(a) <<NOTE: Deadline.>> In General.--Not later than 18 months after
the date of enactment of this section, the Secretary of Housing and
Urban Development shall issue guidelines to provide States, territories,
Tribes, and localities with model code language, best practices,
[[Page 140 STAT. 850]]
and technical guidance that could be used to facilitate the permitting
of point-access block residential buildings.
(b) Contents.--When developing the guidelines under subsection (a),
the Secretary of Housing and Urban Development shall consider--
(1) fire safety considerations, including sprinkler
coverage, smoke detection, ventilation, and building egress
performance;
(2) construction costs and potential impacts on housing
affordability, including the potential for increasing housing
supply in high-cost jurisdictions;
(3) flexibility for diverse consumer needs, including family
sizes, unit configurations, and accessibility;
(4) examples of single-stair codes adopted or considered by
States and cities in the United States;
(5) examples of single-stair codes used in relevant
international standards;
(6) research and model language relating to single-stair
codes produced by organizations that focus on point-access block
building design and building-code reform;
(7) consulting with experts, including developers,
architects, fire marshals, researchers, economists, housing
authorities, and officials in States that have enacted or
piloted single-stair codes; and
(8) alternative methods of safety compliance, including
options that utilize additional passive or active safety
features.
(c) Coordination With the International Code Council.--The Secretary
of Housing and Urban Development shall coordinate with the International
Code Council to encourage the International Code Council to incorporate
provisions about point-access block buildings into the International
Building Code.
(d) Grants.--
(1) In general.--The Secretary of Housing and Urban
Development may establish a program to award competitive grants
to eligible entities to implement pilot projects that evaluate,
demonstrate, or validate the safety, feasibility, or cost-
effectiveness of point-access block residential buildings.
(2) Sunset.--The program established under paragraph (1)
shall terminate on the date that is 7 years after the date of
enactment of this subsection.
(e) Treatment of Projects.--Projects assisted under this section
shall be treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(f) Rule of Construction.--Nothing in this section may be construed
to preempt a State or local building code.
(g) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
State, unit of local government, Tribal Government, public
housing agency, nonprofit housing organization, community
development organization, private developer, construction firm,
qualified design firm, engineering firm, academic institution,
research institution, or any partnership or consortium comprised
of 2 or more such types of entities.
(2) Point-access block building.--The term ``point-access
block building'' means a Group R-2 occupancy residential
structure, as such term is defined by the International Building
Code, in which a single internal stairway provides access and
[[Page 140 STAT. 851]]
egress for all dwelling units in a building that is not greater
than 6 stories in height.
SEC. 103. <<NOTE: 42 USC 1471a.>> EXEMPTION ON CONSTRUCTION OR
MODIFICATION OF RESIDENTIAL HOUSING
LOCATED ON AN INFILL SITE.
(a) Exemption.--In providing assistance under section 501, 502, 504,
515, 533, or 538 of the Housing Act of 1949 (42 U.S.C. 1471, 1472, 1474,
1485, 1490m, or 1490p-2) for the construction or modification of
residential housing located on an infill site, the Secretary of
Agriculture shall not be required to carry out any study or report on
the environmental effects of such assistance.
(b) Report.--Not later than the date that is 5 years after the date
of enactment of this section, the Secretary of Agriculture shall submit,
to the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the Senate,
a report that--
(1) determines whether the implementation of this section--
(A) reduced the amount of time it takes to review an
application for assistance under the sections of the
Housing Act of 1949 identified in subsection (a); and
(B) reduced the administrative cost of providing
such assistance;
(2) describes how the implementation of this section affects
the affordable housing sector in rural America; and
(3) includes any legislative recommendations from the
Secretary of Agriculture.
(c) Definitions.--In this section:
(1) Greenfield.--The term ``greenfield'' means a site that
has not been developed, including a woodland, farmland, and an
open field.
(2) Infill site.--The term ``infill site''--
(A) means a site that is served by existing
infrastructure, including water lines, sewer lines, and
roads; and
(B) does not include--
(i) a site that is served by existing
infrastructure that only consists of a road;
(ii) a site within a census tract designated
as very high or relatively high risk for wildfire,
coastal flooding, and riverine flooding under the
National Risk Index of the Federal Emergency
Management Agency pursuant to section 206 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5136); and
(iii) a greenfield.
SEC. 104. DATABASE OF PUBLICLY OWNED LAND.
(a) In General.--Section 104(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5304(b)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) <<NOTE: Public information. Web posting.>> the grantee
maintains, on a publicly accessible website, a searchable
database that identifies all parcels of undeveloped land owned
by the grantee.''.
[[Page 140 STAT. 852]]
(b) Eligible Activity.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
(1) in paragraph (25), by striking ``and'' at the end;
(2) in paragraph (26), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(27) the creation and maintenance of a database of land as
required under section 104(b)(7).''.
(c) <<NOTE: 42 USC 5304 note.>> Effective Date.--The amendment made
by this subsection shall take effect on October 1, 2026.
SEC. <<NOTE: 12 USC 1708 note.>> 105. FHA SMALL-DOLLAR MORTGAGES.
(a) <<NOTE: Deadline.>> In General.--Not later than 1 year after the
date of the enactment of this section, the Secretary of Housing and
Urban Development, acting through the Federal Housing Commissioner, may
establish a pilot program to increase access to small-dollar mortgages
for mortgagors, which may include--
(1) authorizing direct payments to mortgagees to incentivize
the origination of small-dollar mortgages;
(2) adjusting terms and costs imposed by the Federal Housing
Administration with respect to small-dollar mortgages;
(3) providing direct grants for mortgagors who obtain small-
dollar mortgages to cover costs associated with--
(A) down payments;
(B) closing costs;
(C) appraisals; and
(D) title insurance;
(4) conducting outreach to potential mortgagors about the
availability of small-dollar mortgages; and
(5) providing technical assistance for mortgagees that
originate small-dollar mortgages.
(b) <<NOTE: Termination date.>> Report.--Beginning not later than 1
year after the establishment of the pilot program under subsection (a)
and ending 1 year after the sunset of the pilot program, the Federal
Housing Commissioner shall submit to Congress an annual report that--
(1) tracks and evaluates the outcomes of small-dollar
mortgages originated by mortgagees as a result of support
provided under subsection (a);
(2) analyzes risks of the pilot program to the solvency of
the Mutual Mortgage Insurance Fund;
(3) includes data with respect to--
(A) <<NOTE: Time period.>> the number of small-
dollar mortgages originated in the 10-year period
preceding the date of enactment of this section,
including small-dollar mortgages insured or guaranteed
by the Federal Government and small-dollar mortgages not
insured by the Federal Government;
(B) the original principal balance of each small-
dollar mortgage identified under subparagraph (A);
(C) demographic information about the mortgagors
associated with each such small-dollar mortgages; and
(D) the number and type of mortgagees that offer
small-dollar mortgages;
(4) provides a description of the fixed costs that are
associated with mortgages and the impact of such costs on the
ability of lenders to earn a market rate return on small-dollar
mortgages; and
[[Page 140 STAT. 853]]
(5) includes analysis, by regions of the United States,
including rural regions, that identifies regions with the
greatest need for, and the highest likelihood of, the
origination of small-dollar mortgages and regions that could
benefit the most from increased availability of small-dollar
mortgages.
(c) Sunset.--The pilot program established under subsection (a)
shall terminate on the date that is 4 years after the date on which the
pilot program is established under subsection (a).
(d) <<NOTE: Time period.>> Expiration of Authority.--After the
expiration of the 3-year period beginning on the date of enactment of
this section, neither the Federal Housing Commissioner nor the Secretary
of Housing and Urban Development may newly establish a pilot program to
increase access to small-dollar mortgages for mortgagors.
(e) Small-dollar Mortgage Defined.--The term ``small-dollar
mortgage'' means a mortgage that--
(1) has an original principal balance of $100,000 or less;
and
(2) is secured by a 1- to 4-unit property that is the
principal residence of the mortgagor.
SEC. <<NOTE: 42 USC 1437 note.>> 106. TEMPERATURE SENSOR PILOT
PROGRAM.
(a) <<NOTE: Grants. Compliance.>> In General.--The Secretary of
Housing and Urban Development shall establish a temperature sensor pilot
program to provide grants to public housing agencies and owners of
covered federally assisted rental dwelling units to acquire, install,
and test the efficacy of approved temperature sensors in residential
dwelling units to ensure such units remain in compliance with
temperature requirements.
(b) Eligibility.--
(1) <<NOTE: Deadline. Criteria.>> In general.--The
Secretary of Housing and Urban Development shall, not later than
180 days after the date of enactment of this Act, establish
eligibility criteria for public housing agencies and owners of
covered federally assisted rental dwelling units to participate
in the pilot program established pursuant to subsection (a).
(2) Criteria.--In establishing the eligibility criteria
described in paragraph (1), the Secretary shall ensure--
(A) the pilot program includes a diverse range of
participants that represent different geographic
regions, climate regions, unit sizes, and types of
housing; and
(B) that the functionality of an approved
temperature sensor will be installed and tested using
amounts awarded under this section, including internet
connectivity requirements.
(c) Installation.--Each public housing agency or owner of a covered
federally assisted rental dwelling unit that acquires 1 or more approved
temperature sensors under this section shall, after receiving written
permission from the resident of a dwelling unit, install such
temperature sensor and monitor the data from such temperature sensor.
(d) Collection of Complaint Records.--
(1) In general.--Each public housing agency or owner of a
covered federally assisted rental dwelling unit that installs 1
or more approved temperature sensors under this section shall
collect and retain information about temperature-related
complaints and temperature-related violations.
[[Page 140 STAT. 854]]
(2) Definitions.--The Secretary shall, not later than 180
days after the date of enactment of this Act, define the terms
``temperature-related complaints'' and ``temperature-related
violations'' for the purposes of this subsection.
(e) Data Collection.--
(1) <<NOTE: Notification. Evaluation.>> In general.--Data
collected from temperature sensors acquired and installed by
public housing agencies and owners of covered federally assisted
rental dwelling units under this section shall be retained until
the Secretary of Housing and Urban Development notifies the
public housing agency or owner that the pilot program and the
evaluation of the pilot program are complete.
(2) <<NOTE: Deadline. Standards.>> Personally identifiable
information.--The Secretary of Housing and Urban Development
shall, not later than 180 days after the date of enactment of
this Act, establish standards for the protection of personally
identifiably information collected during the pilot program by
public housing agencies, owners of federally assisted rental
dwelling units, and the Secretary.
(f) <<NOTE: Public information. Publication. Reports.>> Pilot
Program Evaluation.--
(1) Interim evaluation.--Not later than 12 months after the
establishment of the pilot program under this section, the
Secretary of Housing and Urban Development shall publicly
publish and submit to Congress a report that--
(A) examines the number of temperature-related
complaints and temperature-related violations in
federally assisted rental dwelling units with
temperature sensors, disaggregated by temperature sensor
technology and climate region--
(i) that occurred before the installation of
such sensor, if known; and
(ii) that occurred after the installation of
such sensor; and
(B) identifies any barriers to full utility of
temperature sensor capabilities, including broadband
internet access and tenant participation.
(2) Final evaluation.--Not later than 36 months after the
conclusion of the pilot program established by the Secretary of
Housing and Urban Development under this section, the Secretary
shall publicly publish and submit to Congress a report that--
(A) examines the number of temperature-related
complaints and temperature-related violations in
federally assisted rental dwelling units with
temperature sensors, disaggregated by temperature sensor
technology and climate region--
(i) that occurred before the installation of
such sensor; and
(ii) that occurred after the installation of
such sensor;
(B) identifies any barriers to full utility of
temperature sensor capabilities, including broadband
internet access and tenant participation; and
(C) compares the utility of various temperature
sensor technologies based on--
(i) climate zones;
(ii) cost;
[[Page 140 STAT. 855]]
(iii) features; and
(iv) any other factors identified by the
Secretary.
(g) Treatment of Projects.--Projects assisted under this section
shall be treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(h) Sunset.--The pilot program established under this section shall
terminate on the date that is 3 years after the date of enactment of
this section.
(i) Definitions.--In this section:
(1) Approved temperature sensor.--The term ``approved
temperature sensor'' means an internet capable temperature
reporting device able to measure ambient air temperature to the
tenth degree Fahrenheit and Celsius selected from a list of such
devices approved in advance by the Secretary of Housing and
Urban Development.
(2) Assistance.--The term ``assistance''--
(A) means any grant, loan, subsidy, contract,
cooperative agreement, or other form of financial
assistance; and
(B) does not include the insurance or guarantee of a
loan, mortgage, or pool of loans or mortgages.
(3) Covered federally assisted rental dwelling unit.--The
term ``covered federally assisted rental dwelling unit'' means a
residential dwelling unit that is made available for rental and
for which assistance is provided, or that is part of a housing
project for which assistance is provided, under--
(A) the program for project-based rental assistance
under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f);
(B) the public housing program under the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
(C) the program for supportive housing for the
elderly under section 202 of the Housing Act of 1959 (12
U.S.C. 1701q); or
(D) the program for supportive housing for persons
with disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
8013).
(4) Owner.--The term ``owner'' means--
(A) with respect to the program for project-based
rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f), any private
person or entity, including a cooperative, an agency of
the Federal Government, or a public housing agency,
having the legal right to lease or sublease dwelling
units;
(B) with respect to the public housing program under
the United States Housing Act of 1937 (42 U.S.C. et
seq.), a public housing agency or an owner entity, as
those terms are defined in section 905.108 of title 24,
Code of Federal Regulations, of public housing units;
(C) with respect to the program for supportive
housing for the elderly under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q), a private nonprofit
organization, as defined under subsection (k)(4) of that
section; and
(D) with respect to the program for supportive
housing for persons with disabilities under section 811
of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C.
[[Page 140 STAT. 856]]
8013), a private nonprofit organization, as defined
under subsection (k)(6) of that section.
SEC. 107. <<NOTE: 42 USC 12705 note.>> HOUSING SUPPLY FRAMEWORKS.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the monthly payment is not more than 30
percent of the monthly income of the household.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary for Policy Development and
Research of the Department of Housing and Urban Development.
(3) Local zoning framework.--The term ``local zoning
framework'' means the local zoning codes and other ordinances,
procedures, and policies governing zoning and land-use at the
local level.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(5) State zoning framework.--The term ``State zoning
framework'' means the State legislation or State agency and
department procedures, or such legislation or procedures in an
insular area of the United States, enabling local planning and
zoning authorities and establishing and guiding related policies
and programs.
(b) Guidelines on State and Local Zoning Frameworks.--
(1) <<NOTE: Deadline. Publication.>> In general.--Not later
than 3 years after the date of enactment of this Act, the
Assistant Secretary shall publish documents outlining guidelines
and best practices to support production of adequate housing to
meet the needs of communities and provide housing opportunities
for individuals at every income level across communities with
respect to--
(A) State zoning frameworks; and
(B) local zoning frameworks.
(2) <<NOTE: Time period.>> Consultation; public comment.--
During the 2-year period beginning on the date of enactment of
this Act, in developing the guidelines and best practices
required under paragraph (1), the Assistant Secretary shall--
(A) <<NOTE: Federal Register, publication.>> publish
draft guidelines and best practices in the Federal
Register for public comment; and
(B) <<NOTE: Establishment.>> establish a task force
for the purpose of providing consultation to draft the
guidelines and best practices published under
subparagraph (A), the members of which shall include--
(i) urban planners and architects;
(ii) housing developers, including affordable
and market-rate housing developers, manufactured
housing developers, cooperative housing
developers, and other business interests;
(iii) community engagement experts and
community members impacted by zoning decisions;
(iv) public housing agencies and transit
authorities;
(v) members of local zoning and planning
boards and local and regional transportation
planning organizations;
[[Page 140 STAT. 857]]
(vi) State officials responsible for housing
or land use, including members of State zoning
boards of appeals;
(vii) academic researchers; and
(viii) home builders.
(3) Contents.--The guidelines and best practices required
under paragraph (1) shall--
(A) with respect to State zoning frameworks, outline
potential models for updated State enabling legislation
or State agency and department procedures;
(B) include recommendations regarding--
(i) the reduction or elimination of parking
minimums;
(ii) the increase in maximum floor area ratio
requirements and maximum building heights and the
reduction in minimum lot sizes and set-back
requirements;
(iii) the elimination of restrictions against
accessory dwelling units;
(iv) increasing by-right uses, including
duplex, triplex, or quadplex buildings, across
cities or metropolitan areas;
(v) mechanisms, including proximity to
transit, to determine the appropriate scope for
rezoning and ensure development that does not
disproportionately burden residents of
economically distressed areas;
(vi) provisions regarding review of by-right
development proposals to streamline review and
reduce uncertainty, including--
(I) nondiscretionary, ministerial
review; and
(II) entitlement and design review
processes;
(vii) the reduction of obstacles, regulatory
or otherwise, to a range of housing types at all
levels of affordability, including manufactured
and modular housing;
(viii) State model zoning regulations for
directing local reforms, including mechanisms to
encourage adoption;
(ix) provisions to encourage transit-oriented
development, including increased permissible units
per structure and reduced minimum lot sizes near
existing or planned public transit stations;
(x) potential reforms to strengthen the public
engagement process;
(xi) reforms to protest petition statutes;
(xii) the standardization, reduction, or
elimination of impact fees;
(xiii) cost-effective and appropriate building
codes;
(xiv) models for community benefit agreements;
(xv) mechanisms to preserve affordability,
limit disruption of low-income communities, and
prevent displacement of existing residents;
(xvi) with respect to State zoning
frameworks--
(I) State model codes for directing
local reforms, including mechanisms to
encourage adoption;
(II) a model for a State zoning
appeals process, which would--
[[Page 140 STAT. 858]]
(aa) create a process for
developers or builders
requesting a variance,
conditional use, special permit,
zoning district change, similar
discretionary permit, or
otherwise petitioning a local
zoning or planning board for a
project, including a State-
defined amount of affordable
housing to appeal a rejection to
a State body or regional body
empowered by the State; and
(bb) establish
qualifications for communities
to be exempted from the appeals
process based on their available
stock of affordable housing; and
(III) streamlining of State
environmental review policies;
(xvii) with respect to local zoning
frameworks--
(I) the simplification and
standardization of existing zoning
codes;
(II) maximum review timelines;
(III) best practices for the
disposition of land owned by local
governments for affordable housing
development;
(IV) differentiations between best
practices for rural, suburban, and urban
communities, and communities with
different levels of density or
population distribution; and
(V) streamlining of local
environmental review policies; and
(xviii) other land use measures that promote
access to new housing opportunities identified by
the Secretary; and
(C) consider--
(i) the effects of adopting any recommendation
on eligibility for Federal discretionary grants
and tax credits for the purpose of housing or
community development;
(ii) coordination between infrastructure
investments and housing planning;
(iii) local housing needs, including ways to
set and measure housing goals and targets;
(iv) a range of affordability for rental
units, with a prioritization of units attainable
to extremely low-, low-, and moderate-income
residents;
(v) a range of affordability for
homeownership;
(vi) accountability measures;
(vii) the long-term cost to residents and
businesses if more housing is not constructed;
(viii) barriers to individuals seeking to
access affordable housing in growing communities
and communities with economic opportunity;
(ix) with respect to State zoning frameworks--
(I) distinctions between States
providing constitutional or statutory
home rule authority to municipalities
and States operating under the Dillon
Rule, as articulated in Hunter v.
Pittsburgh, 207 U.S. 161 (1907); and
[[Page 140 STAT. 859]]
(II) Statewide mechanisms to
preserve existing affordability over the
long term, including support for land
banks and community land trusts;
(x) public comments elicited under paragraph
(2)(A); and
(xi) other considerations, as identified by
the Assistant Secretary.
(c) Abolishment of the Regulatory Barriers Clearinghouse.--
(1) In general.--The Regulatory Barriers Clearinghouse
established pursuant to section 1205 of the Housing and
Community Development Act of 1992 (42 U.S.C. 12705d) is
abolished.
(2) Repeal.--Section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is repealed.
(d) Reporting.--Not later than 5 years after the date on which the
Assistant Secretary publishes the final guidelines and best practices
for State and local zoning frameworks under this section, the Assistant
Secretary shall submit to Congress a report describing--
(1) the States that have adopted recommendations from the
guidelines and best practices, pursuant to subsection (b);
(2) a summary of the localities that have adopted
recommendations from the guidelines and best practices, pursuant
to subsection (b);
(3) a list of States that adopted a State zoning framework;
(4) a summary of the modifications that each State has made
in their State zoning framework;
(5) a general summary of the types of updates localities
have made to their local zoning framework;
(6) with respect to the States that have adopted a State
zoning framework or recommendations from the guidelines and best
practices, the effect of such adoptions; and
(7) a summary of any recommendations that were routinely not
adopted by States or by localities.
(e) Rule of Construction.--Nothing in this section may be construed
to permit the Department of Housing and Urban Development to take an
adverse action against or fail to provide otherwise offered actions or
services for any State or locality if the State or locality declines to
adopt a guideline or best practice under subsection (b).
TITLE II--BUILDING MORE IN AMERICA
SEC. 201. <<NOTE: 42 USC 19501.>> INCREASING HOUSING IN
OPPORTUNITY ZONES.
(a) Covered Grant Defined.--In this section, the term ``covered
grant'' means any competitive grant relating to the construction,
modification, rehabilitation, or preservation of housing, as determined
by the Secretary of Housing and Urban Development.
(b) Priority.--When awarding a covered grant, the Secretary of
Housing and Urban Development may give additional weight to applicants
with proposed activities or projects that are located in or
substantially and directly benefit a community designated as a qualified
opportunity zone under section 1400Z-1 of the Internal Revenue Code of
1986.
[[Page 140 STAT. 860]]
SEC. 202. <<NOTE: 42 USC 19502.>> WHOLE-HOME REPAIRS ACT.
(a) Definitions.--In this section:
(1) Affordable unit.--The term ``affordable unit'' means a
unit for which the monthly rental payment is not more than 30
percent of the gross income of an individual earning at or below
80 percent of the area median income, as defined by the
Secretary.
(2) Assisted unit.--The term ``assisted unit'' means a unit
that undergoes repair or rehabilitation work through a whole-
home repairs program administered by an implementing
organization under this section.
(3) Eligible home-owner.--The term ``eligible home-owner''
means a home-owner--
(A) with a household income that--
(i) is not more than 80 percent of the area
median income; or
(ii) meets the income eligibility requirements
for receiving assistance or benefits under a
specified program, as defined in paragraph (11);
and
(B) who is--
(i) an owner of record as evidenced by a
publicly recorded deed, or other document recorded
by the Bureau of Indian Affairs, and occupies the
home on which repairs are to be conducted as their
principal residence;
(ii) an owner-occupant of the manufactured
home on which repairs are to be conducted;
(iii) an owner-occupant of the cooperative
housing unit on which repairs are to be conducted;
or
(iv) an owner who can demonstrate an ownership
interest in the property, or trust land leasehold,
on which repairs are to be conducted, including a
person who has inherited an interest in that
property.
(4) Eligible landlord.--The term ``eligible landlord'' means
an individual--
(A) who owns, as determined by the relevant
implementing organization, fewer than 10 eligible rental
properties, with a majority of affordable units and not
more than 25 total units, operated as primary residences
in which a majority ownership interest is held by the
individual, the spouse of the individual, or the
dependent children of the individual, or any closely
held legal entity controlled by the individual, the
spouse of the individual, or the dependent children of
the individual, either individually or collectively; and
(B) who agrees to the provisions described in
subsection (b)(3).
(5) Eligible rental property.--The term ``eligible rental
property'' means a residential property that--
(A) is leased, or offered exclusively for lease, as
a primary residence by an eligible landlord; and
(B) includes affordable units.
(6) Forgivable loan.--The term ``forgivable loan'' means a
loan--
(A) made to an eligible landlord;
(B) that is secured by a lien recorded against a
residential property; and
[[Page 140 STAT. 861]]
(C) that may be forgiven by the implementing
organization not later than the date that is 3 years
after the completion of the repairs if the eligible
landlord has maintained compliance with the loan
agreement described in subsection (b)(3).
(7) Implementing organization.--The term ``implementing
organization''--
(A) means a unit of general local government or a
State that--
(i) will administer a whole-home repairs
program through an agency, department, or other
entity; or
(ii) enters into agreements with 1 or more
local governments, Indian tribes, municipal
authorities, other governmental authorities,
including a tribally designated housing entity, or
qualified nonprofit organizations, to administer a
whole-home repairs program as a subrecipient; and
(B) does not include a redundant entity in a
jurisdiction already served by a grantee under
subsection (b).
(8) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).
(9) Qualified nonprofit.--The term ``qualified nonprofit''
means a nonprofit organization that--
(A) has received funding, as a recipient or
subrecipient, through--
(i) the Community Development Block Grant
program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.);
(ii) the HOME Investment Partnerships program
under subtitle A of title II of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12741 et seq.);
(iii) the Lead-Based Paint Hazard Reduction
grant program under section 1011 of the
Residential Lead-Based Paint Hazard Reduction Act
of 1992 (42 U.S.C. 4852), a grant under the
Healthy Homes Initiative administered by the
Secretary pursuant to sections 501 and 502 of the
Housing and Urban Development Act of 1970 (12
U.S.C. 1701z-1, 1701z-2), or a grant under the
Older Adult Home Modification Grants Program
authorized under the Consolidated Appropriations
Act, 2024 (Public Law 118-42), or any successor
Act, to make safety and functional home
modification repairs and renovations to meet the
needs of low-income seniors to enable them to
remain in their primary residence;
(iv) the Self-Help and Assisted Homeownership
Opportunity program authorized under section 11 of
the Housing Opportunity Program Extension Act of
1996 (42 U.S.C. 12805 note);
(v) a rural housing program under title V of
the Housing Act of 1949 (42 U.S.C. 1471 et seq.);
or
(vi) the Neighborhood Reinvestment Corporation
established under the Neighborhood Reinvestment
Corporation Act (42 U.S.C. 8101 et seq.);
[[Page 140 STAT. 862]]
(B) has coordinated, performed, or otherwise been
engaged in weatherization, lead remediation, or home-
repair work for not less than 2 years;
(C) has been certified by the Environmental
Protection Agency, or by a State authorized by the
Environmental Protection Agency to administer a
certification program, as--
(i) eligible to carry out activities under the
lead renovation, repair, and painting program
under section 402(c) or 404 of the Toxic
Substances Control Act (15 U.S.C. 2682(c), 2684);
or
(ii) a Home Certification Organization under
the Energy Star program established by section
324A of the Energy Policy and Conservation Act (42
U.S.C. 6294a) or the WaterSense program under
section 324B of that Act (42 U.S.C. 6294b), or
recognized or otherwise approved by the
Environmental Protection Agency as a Home
Certification Organization under either of those
programs; or
(D) is a community development financial
institution, as defined in section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(11) Specified program.--For purposes of paragraph
(3)(A)(ii), the term ``specified program'' means any of the
following:
(A) The Medicaid program established under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.).
(B) The State Children's Health Insurance Program
established under title XXI of the Social Security Act
(42 U.S.C. 1397aa et seq.).
(C) The supplemental security income benefits
program established under title XVI of the Social
Security Act (42 U.S.C. 1381 et seq.).
(D) The supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
(E) The temporary assistance for needy families
program established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
(12) State.--The term ``State'' means--
(A) each State of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) any territory or possession of the United
States; and
(E) an Indian tribe.
(13) Tribally designated housing entity.--The term
``tribally designated housing entity'' has the meaning given the
term in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4103).
(14) Whole-home repairs.--The term ``whole-home repairs''
means modifications, repairs, or updates to home-owner or
renter-occupied units to address--
[[Page 140 STAT. 863]]
(A) physical and sensory accessibility for
individuals with disabilities and older adults, such as
bathroom and kitchen modifications, installation of grab
bars and handrails, guards and guardrails, lifting
devices, ramp additions or repairs, sidewalk addition or
repair, or doorway or hallway widening;
(B) habitability and safety concerns, such as
repairs needed to ensure residential units are fit for
human habitation and free from defective conditions or
health and safety hazards; or
(C) energy and water efficiency, resilience, and
weatherization.
(b) <<NOTE: Grants.>> Pilot Program.--
(1) Establishment.--There is authorized a pilot program to
provide grants to implementing organizations to administer a
whole-home repairs program for eligible home-owners and eligible
landlords.
(2) Use of funds.--An implementing organization that
receives a grant from appropriated funds made available for this
subsection--
(A) shall provide grants to eligible home-owners to
implement whole-home repairs not covered by other
Federal home repair programs up to a maximum amount per
unit, which maximum amount should--
(i) reflect local construction costs and the
level of repairs needed in each unit; and
(ii) be calculated and approved by the
Secretary;
(B) <<NOTE: Loans.>> shall provide loans, which may
be forgivable, to eligible landlords to implement whole-
home repairs not covered by other Federal home repair
programs for individual affordable units, public and
common use areas within the property, and common
structural elements up to a maximum amount per unit,
area, or element, as applicable, which maximum amount
should--
(i) reflect local construction costs; and
(ii) be calculated and approved by the
Secretary;
(C) <<NOTE: Evaluation.>> shall evaluate, or provide
assistance to eligible home-owners and eligible
landlords to evaluate, whole-home repair program funds
provided under this subsection with Federal, State,
Tribal, and local home repair programs to provide the
greatest benefit to the greatest number of eligible
landlords and eligible home-owners and avoid duplication
of benefits and redundancies for the same home repairs;
(D) shall require that--
(i) all repairs funded or facilitated through
an award under this subsection have been
completed;
(ii) if repairs are not completed and the plan
for whole-home repairs is not updated to reflect
the new scope of work, that the loan or grant is
repaid on a prorated basis based on completed
work; and
(iii) any unused grant or loan balance is
returned to the implementing organization, and is
reused by the implementing organization for a new
whole-home repair grant or loan under this
subsection;
(E) may use not more than 5 percent of the awarded
funds to carry out related functions, including
workforce
[[Page 140 STAT. 864]]
training for home repair professions, which shall be
related to efforts to increase the number of home
repairs performed and approved by the Secretary;
(F) may use not more than 10 percent of the awarded
funds for administrative expenses;
(G) <<NOTE: Compliance.>> shall comply with Federal
accessibility requirements and standards under
applicable Federal fair housing and civil rights laws
and regulations, including section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and
(H) shall ensure that rental properties assisted
under subparagraph (B) shall be treated as projects
assisted under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(3) <<NOTE: Compliance.>> Loan agreement.--In a loan
agreement with an eligible landlord under this subsection, an
implementing organization shall include provisions establishing
that the eligible landlord shall, for each eligible rental
property for which a loan is used to fund repairs under this
subsection--
(A) comply with Federal accessibility requirements
and standards under applicable Federal fair housing and
civil rights laws and regulations, including section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794); and
(B)(i) if the landlord is renting the assisted units
available in the eligible rental property to tenants
receiving tenant-based rental assistance under section
8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)), under another tenant-based rental assistance
program administered by the Secretary or the Secretary
of Agriculture, or under a tenant-based rental subsidy
provided by a State or local government, comply with the
program requirements under the relevant tenant-based
rental assistance program; or
(ii) <<NOTE: Time periods.>> if the eligible
landlord is not renting to tenants receiving rental-
based assistance as described in clause (i)--
(I)(aa) offer to extend the lease of current
tenants on current terms, other than the terms
described in subclause (iv) for not less than 3
years beginning after the completion of the
repairs, unless the lease is terminated due to
failure to pay rent, performance of an illegal act
within the rental unit, or a violation of an
obligation of tenancy that the tenants failed to
correct after notice; and
(bb) if the tenant of an assisted unit moves
out of the assisted unit at any point in the 3-
year period following the loan agreement, maintain
the unit as an affordable unit for the remainder
of the 3-year period;
(II) <<NOTE: Records.>> provide documentation
verifying that the property, upon completion of
approved renovations, has met all applicable State
and local housing and building codes;
(III) <<NOTE: Attestation.>> attest that the
landlord has no known serious violations of renter
protections that have resulted in fines,
penalties, or judgments during the preceding 10
years; and
[[Page 140 STAT. 865]]
(IV) cap annual rent increases for each
assisted unit at 5 percent of base rent or at the
rate of inflation, whichever is lower, for not
less than 3 years beginning after the completion
of the repairs.
(4) Application.--
(A) In general.--An implementing organization
desiring an award under this subsection shall submit to
the Secretary an application that includes--
(i) the geographic scope of the whole-home
repairs program to be administered by the
implementing organization, including the plan to
address need in any rural, Tribal, suburban, or
urban area within a jurisdiction;
(ii) a plan for selecting subrecipients, if
applicable;
(iii) a description of how the implementing
organization plans to execute the coordination of
Federal, State, Tribal, and local home repair
programs, including programs administered by the
Department of Energy, the Department of the
Interior, the Department of Veteran Affairs, or
the Department of Agriculture, to increase
efficiency and reduce redundancy;
(iv) available data on the need for affordable
and quality housing within the geographic scope of
the whole-home repairs program, and any plans to
preserve affordability through the term of the
award;
(v) a description of how the implementing
organization plans to process and verify
applications for grants from eligible home-owners
and applications for loans from eligible
landlords; and
(vi) such other information as the Secretary
requires to determine the ability of an applicant
to carry out a program under this subsection.
(B) Considerations.--In making awards under this
subsection, the Secretary shall--
(i) with respect to applications submitted by
States other than the District of Columbia and the
territories of the United States, prioritize those
applications with a demonstrated plan to--
(I) make a good-faith effort to
implement the pilot program in every
jurisdiction; and
(II) provide nonmetropolitan areas,
or subrecipients serving non-
metropolitan areas if applicable, with a
share of total funds commensurate with
their population;
(ii) aim to select applicants so that the
awardees collectively span diverse geographies,
with an intent to understand the impact of the
pilot program under this subsection in urban,
suburban, rural, and Tribal settings; and
(iii) not disqualify implementing
organizations that were awarded grants under the
pilot program in prior application cycles.
(5) Program information.--The Secretary shall make available
to grant recipients under this subsection information regarding
existing Federal programs for which grant recipients may
coordinate or provide assistance in coordinating applications
for those programs in accordance with paragraph (2)(C).
[[Page 140 STAT. 866]]
(6) Grant number.--In each year in which an award is made
under this subsection, the Secretary shall award assistance to--
(A) not less than 2, and not more than 10,
implementing organizations, as application numbers and
funding permit; and
(B) not more than 1 implementing organization in any
State.
(7) Loans that are not forgiven.--If a loan made by an
implementing organization under paragraph (2)(B) is not
forgiven, the loan repayment funds shall be reused by the
implementing organization for a new whole-home repair grant or
loan under this subsection, which shall remain subject to the
original terms of the assistance awarded under this subsection.
(8) Supplement, not supplant.--Amounts awarded under this
subsection to implementing organizations shall supplement, not
supplant, other Federal, State, Tribal, and local funds made
available to those entities.
(9) Streamlining program delivery and ensuring efficiency.--
To the extent possible, in carrying out the pilot program under
this subsection, the Secretary shall--
(A) endeavor to improve efficiency of service
delivery, as well as the experience of and impact on the
taxpayer, by encouraging programmatic collaboration and
information sharing across Federal, State, Tribal, and
local programs for home repair or improvement, including
programs administered by the Department of Agriculture,
the Department of the Interior, the Department of
Veterans Affairs, or the Department of Energy; and
(B) <<NOTE: Time period.>> enhance collaboration
and cross-agency streamlining efforts that reduce the
burden of multiple income verification processes and
applications on the eligible home-owner, the eligible
landlord, the implementing organization, and the Federal
Government, including by establishing assistance
application procedures for income eligibility under this
subsection that recognize income eligibility
determinations for assistance using any of the criteria
under subsection (a)(3)(A) that have been used for
assistance applications during the 1-year period
preceding the date on which an eligible home-owner or
eligible landlord applies for assistance under this
subsection.
(10) Reporting requirements.--
(A) Annual report.--An implementing organization
that receives a grant under this subsection shall submit
to the Secretary an annual report on initial funding
that includes--
(i) the number of units served, including
reporting on both home-ownership and rental units,
as well as accessible units;
(ii) the average cost per unit for
modifications or repairs and the nature of those
modifications or repairs, including reporting on
accessibility in both home-ownership and rental
units;
(iii) the number of applications received,
served, denied, or not completed, disaggregated by
geographic area;
[[Page 140 STAT. 867]]
(iv) the aggregated demographic data of grant
recipients, which may include data on income
range, urban, suburban, and rural residency, age,
and racial and ethnic identity;
(v) the aggregated demographic data of loan
recipients, which may include data on income
range, urban, suburban, and rural residency, age,
and racial and ethnic identity;
(vi) an affirmation that the implementation
organization has complied with the applicable
regulations, including compliance with Federal
accessibility requirements;
(vii) in the first year of receiving a grant,
and as certified in subsequent reports, a
comprehensive plan to prevent waste, fraud, and
abuse in the administration of the pilot program,
which shall include, at a minimum--
(I) a policy enacted and enforced by
the implementing organization to monitor
ongoing expenditures under this
subsection and ensure compliance with
applicable regulations;
(II) a policy enacted and enforced
by the implementing organization to
detect and deter fraudulent activity,
including fraud occurring in individual
projects and patterns of fraud by
parties involved in the expenditure of
funds under this subsection;
(III) a statement setting forth any
violations detected by the implementing
organization during the previous
calendar year, including details about
steps taken to achieve compliance and
any remedial measures; and
(IV) a certification by the chief
executive or most senior compliance
officer of the organization that the
organization maintains sufficient staff
and resources to effectively carry out
the above-mentioned policies; and
(viii) such other information as the Secretary
may require.
(B) Reporting requirement alignment.--To limit the
costs of implementing the pilot program under this
subsection, the Secretary shall endeavor, to the extent
possible, to structure reporting requirements such that
they align with the data reporting requirements in place
for funding streams that implementing organizations are
likely to use together with funding from this
subsection, including the reporting requirements under--
(i) the Community Development Block Grant
program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.);
(ii) the HOME Investment Partnerships program
under subtitle A of title II of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12741 et seq.);
(iii) the Weatherization Assistance Program
for low-income persons established under part A of
title
[[Page 140 STAT. 868]]
IV of the Energy Conservation and Production Act
(42 U.S.C. 6861 et seq.); and
(iv) the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4101
et seq.).
(C) <<NOTE: Assessment.>> Pilot program period
reports.--Not less frequently than twice during the
period in which the pilot program established under this
subsection operates, the Office of Inspector General of
the Department of Housing and Urban Development shall
complete an assessment of the implementation of measures
to ensure the fair and legitimate use of the pilot
program.
(D) <<NOTE: Time period.>> Summary to congress.--
The Secretary shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives an annual report providing a summary of
the data provided under subparagraphs (A) and (C) during
the 1-year period preceding the report and all data
previously provided under those subparagraphs.
(11) Environmental review.--A grant under this subsection
shall be--
(A) treated as assistance for a special project for
purposes of section 305(c) of the Multifamily Housing
Property Disposition Reform Act of 1994 (42 U.S.C.
3547); and
(B) subject to the regulations promulgated by the
Secretary to implement such section.
(12) Termination.--The pilot program established under this
subsection shall terminate on October 1, 2031.
SEC. 203. COMMUNITY INVESTMENT AND PROSPERITY ACT.
(a) Revised Statutes.--The paragraph designated as the ``Eleventh''
of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended, in the fifth sentence, by striking ``15'' each place the
term appears and inserting ``20''.
(b) Federal Reserve Act.--Section 9(23) of the Federal Reserve Act
(12 U.S.C. 338a) is amended, in the fifth sentence, by striking ``15''
each place the term appears and inserting ``20''.
(c) <<NOTE: Time periods. Reports. 12 USC 24 note.>> Study.--Not
later than 2 years after the date of enactment of this section, and
every 2 years thereafter, the Comptroller of the Currency and the Board
of Governors of the Federal Reserve System shall each submit to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate, a
report, after consulting with the other agency in the development of
such report, about public welfare investments that were made by
associations under section 5136 of the Revised Statutes of the United
States (12 U.S.C. 24) and State member banks under section 9(23) of the
Federal Reserve Act (12 U.S.C. 338a) in the 2 previous calendar years,
that--
(1) identifies the number of such investments, broken down
by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State
member bank that made the investment, using not fewer
than 4 categories to describe the amount of assets of
the associations and banks; and
[[Page 140 STAT. 869]]
(D) State or other location;
(2) identifies the dollar amounts of such investments,
broken down by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State
member bank that made the investment, using not fewer
than 4 categories to describe the amount of assets of
the associations and banks; and
(D) State or other location; and
(3) for each type of public welfare investment identified
under paragraphs (1) and (2), a description of the substantive
and procedural requirements that apply to each type of
investment made under--
(A) in the case of a report by the Comptroller of
the Currency, section 5136 of the Revised Statutes of
the United States (12 U.S.C. 24); or
(B) in the case of a report by the Board of
Governors, section 9(23) of the Federal Reserve Act (12
U.S.C. 338a).
SEC. 204. ADDITION OF AFFORDABLE HOUSING CONSTRUCTION AS AN
ELIGIBLE ACTIVITY.
(a) Eligible Activity.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)), as amended by section 104
of this Act, is amended--
(1) in paragraph (26), by striking ``and'' at the end;
(2) in paragraph (27), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(28) the new construction of affordable housing, within
the meaning given such term under section 215 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12745), and
which shall not exceed 20 percent of the amounts allocated to
the recipient.''.
(b) Low- and Moderate-income Requirement.--Section 105(c)(3) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5305(c)(3)) is
amended by striking ``or rehabilitation'' and inserting ``,
rehabilitation, or new construction''.
(c) <<NOTE: Effective date. 42 USC 5305 note.>> Applicability.--The
amendments made by this section shall apply with respect only to amounts
appropriated after the date of enactment of this Act.
SEC. 205. BETTER USE OF INTERGOVERNMENTAL AND LOCAL DEVELOPMENT
(BUILD) HOUSING ACT.
(a) Designation of Environmental Review Procedure.--The Department
of Housing and Urban Development Act (42 U.S.C. 3531 et seq.) is amended
by inserting after section 12 (42 U.S.C. 3537a) the following:
``SEC. 13. <<NOTE: 42 USC 3537b.>> DESIGNATION OF ENVIRONMENTAL
REVIEW PROCEDURE.
``(a) In General.--Except as provided in subsection (b), the
Secretary may, for purposes of environmental review, decision making,
and action pursuant to the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.), and other provisions of law that further the
purposes of such Act, designate the treatment of assistance administered
by the Secretary as funds for a special project for purposes of section
305(c) of the Multifamily Housing Property Disposition Reform Act of
1994 (42 U.S.C. 3547).
[[Page 140 STAT. 870]]
``(b) Exception.--The designation described in subsection (a) shall
not apply to assistance for which a procedure for carrying out the
responsibilities of the Secretary under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of law
that further the purposes of such Act, is otherwise specified in law.''.
(b) Tribal Assumption of Environmental Review Obligations.--Section
305(c) of the Multifamily Housing Property Disposition Reform Act of
1994 (42 U.S.C. 3547) is amended--
(1) by striking ``State or unit of general local
government'' each place it appears and inserting ``State, Indian
Tribe, or unit of general local government'';
(2) in paragraph (1)(C), in the heading, by striking ``State
or unit of general local government'' and inserting ``State,
indian tribe, or unit of general local government''; and
(3) by adding at the end the following:
``(5) Definition of indian tribe.--For purposes of this
subsection, the term `Indian Tribe' means a federally recognized
tribe, as defined in section 4(13)(B) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4103(13)(B)).''.
(c) <<NOTE: 42 USC 3537b note.>> Implementation.--
(1) In general.--Except as provided in paragraph (2), a
designation of assistance under section 13 of the Department of
Housing and Urban Development Act, as added by subsection (a),
shall only apply with respect to funds appropriated after the
date of enactment of this Act.
(2) Exception.--If a grantee of assistance administered by
the Secretary of Housing and Urban Development combines funds
appropriated before and after the date of enactment of this Act
to carry out a project, section 13 of the Department of and
Urban Development Act, as added by subsection (a), shall not
apply to that assistance.
SEC. <<NOTE: 42 USC 19503.>> 206. UNLOCKING HOUSING SUPPLY
THROUGH STREAMLINED AND MODERNIZED REVIEWS
ACT.
(a) Definitions.--In this section:
(1) Infill project.--The term ``infill project'' means a
project that--
(A) occurs within the geographic limits of a
municipality;
(B) is adequately served by existing utilities and
public services as required under applicable law;
(C) is located on a site of previously disturbed
land of not more than 5 acres and substantially
surrounded by residential or commercial development;
(D) will repurpose a vacant or underutilized parcel
of land, or a dilapidated or abandoned structure; and
(E) will serve a residential or commercial purpose.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary shall, in accordance with
section 553 of title 5, United States Code, and section 103 of
the National Environmental Policy Act of 1969 (42 U.S.C.
[[Page 140 STAT. 871]]
4333), expand and reclassify housing-related activities under
the necessary administrative regulations as follows:
(A) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled ``exempt
activities'' as set forth in section 58.34 of title 24,
Code of Federal Regulations, as in effect on January 1,
2025:
(i) Tenant-based rental assistance.
(ii) Supportive services, including health
care, housing services, permanent housing
placement, day care, nutritional services, short-
term payments for rent, mortgage, or utility
costs, and assistance in gaining access to Federal
Government and State and local government benefits
and services.
(iii) Operating costs, including maintenance,
security, operation, utilities, furnishings,
equipment, supplies, staff training, and
recruitment and other incidental costs.
(iv) Economic development activities,
including equipment purchases, inventory
financing, interest subsidies, operating expenses,
and similar costs not associated with construction
or expansion of existing operations.
(v) Activities to assist home-buyers in the
purchase of existing dwelling units or dwelling
units under construction, including closing costs
and down payment assistance, interest rate
buydowns, and similar activities that result in
the transfer of title.
(vi) Affordable housing predevelopment costs
related to obtaining site options, project
financing, administrative costs and fees for loan
commitment, zoning approvals, and other related
activities that do not have a physical impact.
(vii) Approval of supplemental assistance,
including insurance or guarantee, to a project
previously approved by the Secretary.
(viii) Emergency home-owner or renter
assistance for the repair or replacement of HVAC,
hot water heaters, and other necessary existing
utilities required under applicable law.
(B) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled, (i) ``categorical
exclusions not subject to section 58.5'' and (ii)
``categorical exclusions not subject to the Federal laws
and authorities cited in section 50.4'' in section
58.35(b) and section 50.19, respectively of title 24,
Code of Federal Regulations, as in effect on January 1,
2025, if such activities do not materially alter
environmental conditions and do not materially exceed
the original scope of the project:
(i) Acquisition, repair, improvement,
reconstruction, or rehabilitation of public
facilities and improvements (other than buildings)
if the facilities and improvements are in place
and will be retained in the same use without
change in size or capacity of more than 20
percent, including replacement of water
[[Page 140 STAT. 872]]
or sewer lines, reconstruction of curbs and
sidewalks, and repaving of streets.
(ii) Rehabilitation of 1-to-4 unit residential
buildings, and existing housing-related
infrastructure, such as repairs or rehabilitation
of existing wells, septics, or utility lines that
connect to that housing.
(iii) New construction, development,
demolition, acquisition, or disposition of up to 4
scattered site existing dwelling units where there
is a maximum of 4 units on any 1 site.
(iv) Acquisitions (including leasing) of,
disposition of, or equity loans on an existing
structure, or acquisition (including leasing) of
vacant land if the structure or land acquired,
financed, or disposed of will be retained for the
same use.
(C) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled, (i) ``categorical
exclusions subject to section 58.5'' and (ii)
``categorical exclusions subject to the Federal laws and
authorities cited in section 50.4'' in section 58.35(a)
and section 50.20, respectively, of title 24, Code of
Federal Regulations, as in effect on January 1, 2025, if
such activities do not materially alter environmental
conditions and do not materially exceed the original
scope of the project:
(i) Acquisitions of open space or residential
property, where such property will be retained for
the same use or will be converted to open space to
help residents relocate out of an area designated
as a high-risk area by the Secretary.
(ii) Conversion of existing office buildings
into residential development, subject to--
(I) a maximum number of units to be
determined by the Secretary; and
(II) a limitation on the change in
building size of not more than 20
percent.
(iii) New construction, development,
demolition, acquisition, or disposition of 5 to 15
dwelling units where there is a maximum of 15
units on any 1 site. The units can be 15 1-unit
buildings or 1 15-unit building, or any
combination in between.
(iv) New construction, development,
demolition, acquisition, or disposition of 15 or
more housing units developed on scattered sites
when there are not more than 15 housing units on
any 1 site, and the sites are more than a set
number of feet apart as determined by the
Secretary.
(v) Rehabilitation of buildings and
improvements in the case of a building for
residential use with 5 to 15 units, if the density
is not increased beyond 15 units and the land use
is not changed.
(vi) Infill projects consisting of new
construction, rehabilitation, or development of
residential housing units.
(vii) The voluntary acquisition of
properties--
(I) located in--
(aa) a floodway;
[[Page 140 STAT. 873]]
(bb) a floodplain; or
(cc) any other area, clearly
delineated by the grantee; and
(II) that have been impacted by a
predictable environmental threat to the
safety and well-being of program
beneficiaries caused or exacerbated by a
federally declared disaster.
(c) Implementation.--For purposes of implementing the streamlining
of environmental review for housing-related activities under subsection
(b), the agency actions carried out under that subsection--
(1) <<NOTE: Applicability.>> shall only apply with respect
to funds appropriated after the effective date of those actions;
and
(2) shall not apply with respect to a grantee that combines
funds appropriated before and after the effective date of those
actions to carry out a project.
(d) <<NOTE: Time periods. Summary. Recommenda- tions.>> Report.--
The Secretary shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives an annual report during the 5-year period
beginning on the date that is 2 years after the date of enactment of
this Act that provides a summary of findings of reductions in review
times and administrative cost reduction, with a particular focus on the
affordable housing sector, as a result of the actions set forth in this
section, and any recommendations of the Secretary for future
congressional action with respect to revising categorical exclusions or
exemptions under title 24, Code of Federal Regulations.
SEC. <<NOTE: 42 USC 19504.>> 207. GRANTS FOR PLANNING AND
IMPLEMENTATION ASSOCIATED WITH AFFORDABLE
HOUSING.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or
urban county, as those terms are defined in section 102
of the Housing and Community Development Act of 1974 (42
U.S.C. 5302); or
(B) a regional planning agency or consortia of
regional planning agencies.
(2) Housing plan.--The term ``housing plan'' means a plan
to, with respect to an area within the jurisdiction of an
eligible entity--
(A) increase the amount of available housing to meet
the demand for such housing and any projected increase
in the demand for such housing;
(B) increase the affordability of housing;
(C) increase the accessibility of housing for people
with disabilities, including location-efficient housing;
(D) preserve or improve the quality of housing;
(E) reduce barriers to housing development; and
(F) coordinate with transportation-related agencies.
(3) Housing strategy.--The term ``housing strategy'' means a
housing strategy required under section 105 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12705).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
[[Page 140 STAT. 874]]
(b) <<NOTE: Deadline.>> Establishment.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall establish a
program to award grants on a competitive basis to eligible entities to
assist planning and implementation activities associated with affordable
housing, except that such grant awards may not be used for construction,
alteration, or repair work.
(c) Use of Amounts.--
(1) By regional planning agencies.--If an eligible entity
that receives amounts under this section is an eligible entity
described in subsection (a)(1)(B), the eligible entity shall use
those amounts to assist planning activities with respect to
affordable housing, including--
(A) the development of housing plans;
(B) the substantial improvement of State or local
housing strategies;
(C) the development of new regulatory requirements
and processes;
(D) updating zoning codes;
(E) increasing the capacity to conduct housing
inspections;
(F) increasing the capacity to reduce barriers to
housing supply elasticity and housing affordability;
(G) the development of local or regional plans for
community development; and
(H) the substantial improvement of community
development strategies, including strategies designed
to--
(i) increase the availability of affordable
housing and access to affordable housing;
(ii) increase access to public transportation;
and
(iii) advance sustainable or location-
efficient community development goals.
(2) By states, insular areas, metropolitan cities, and urban
counties.--If an eligible entity that receives amounts under
this section is an eligible entity described in subsection
(a)(1)(A), the eligible entity shall use those amounts to--
(A) implement and administer housing strategies and
housing plans;
(B) implement and administer any plans to increase
housing choice, address disparities in housing needs,
and provide greater access to opportunity;
(C) fund any community investments that support
goals identified in a housing strategy or housing plan;
(D) implement and administer regulatory requirements
and processes with respect to reformed zoning codes;
(E) increase the capacity to conduct housing
inspections;
(F) increase the capacity to reduce barriers to
housing supply elasticity and housing affordability;
(G) implement and administer local or regional plans
for community development; and
(H) fund any planning to increase--
(i) the availability of affordable housing and
access to affordable housing;
(ii) access to public transportation; and
(iii) any location-efficient community
development goals.
[[Page 140 STAT. 875]]
(3) Use for administrative costs.--A eligible entity that
receives amounts under this section may not use more than 10
percent of those amounts for administrative costs.
(d) Coordination.--To the extent practicable, the Secretary shall
coordinate with the Administrator of the Federal Transit Administration
in carrying out this section.
(e) <<NOTE: Time period.>> Expiration of Authority.--After the
expiration of the 5-year period beginning on the date of enactment of
this Act, the Secretary may not newly establish a program as described
in this section.
(f) Sunset.--The program established under this section shall
terminate on the date that is 5 years after the date of enactment of
this Act.
SEC. <<NOTE: 42 USC 19505.>> 208. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that serves households earning not more than 120
percent of the area median income, if the majority of the
housing units are affordable to households earning not more than
60 percent of the area median income.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a metropolitan city or urban county, as those
terms are defined in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302), that
has demonstrated an objective improvement in housing
supply growth, as determined by the Secretary, whose
methodology for determining such growth is published in
the Federal Register to allow for public comment not
less than 90 days before the date on which the notice of
funding opportunity is made available; or
(B) a unit of general local government or an Indian
tribe, as those terms are defined in section 102 of the
Housing and Community Development Act of 1974 (42 U.S.C.
5302), that has demonstrated an objective improvement in
housing supply growth, as determined by the Secretary,
whose methodology for determining such improvement is
published in the Federal Register to allow for public
comment not less than 90 days before the date on which
the notice of funding opportunity is made available.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment of a Grant Program.--
(1) <<NOTE: Deadline.>> Establishment.--Not later than 1
year after the date of enactment of this Act, the Secretary
shall establish a program to award grants on a competitive basis
to eligible entities that have increased their local housing
supply.
(2) <<NOTE: Public information. Web posting.>> List of
eligible entities.--The Secretary shall make a list of eligible
entities publicly available on the website of the Department of
Housing and Urban Development.
(3) Eligible purposes.--An eligible entity receiving a grant
under this section may use funds to--
(A) carry out any of the activities described in
section 105 of the Housing and Community Development Act
of 1974 (42 U.S.C. 5305);
[[Page 140 STAT. 876]]
(B) carry out any of the activities permitted under
the Local and Regional Project Assistance Program
established under section 6702 of title 49, United
States Code; and
(C) carry out initiatives of the eligible entity
that facilitate the expansion of the supply of
attainable housing and that supplement initiatives the
eligible entity has carried out, or is in the process of
carrying out, as specified in the application submitted
under paragraph (4).
(4) Application.--
(A) In general.--An eligible entity seeking a grant
under this section shall submit to the Secretary an
application that provides--
(i) <<NOTE: Attestation.>> a description of
each purpose for which the eligible entity will
use the grant, and an attestation that the grant
will be used only for 1 or more eligible purposes
described in paragraph (3);
(ii) <<NOTE: Data. Time period.>> data on
characteristics of increased housing supply during
the 3-year period ending on the date on which the
application is submitted, which may include
whether such housing--
(I) serves households at a range of
income levels; and
(II) has improved the quality and
affordability of housing in the
jurisdiction of the eligible entity;
(iii) a description of how each eligible
purpose described in clause (i) may address a
community need or advance an objective, or an
aspect of an objective, included in the
comprehensive housing affordability strategy and
community development plan of the eligible entity
under part 91 of title 24, Code of Federal
Regulations, or any successor regulation (commonly
referred to as a ``consolidated plan''); and
(iv) a description of how the eligible entity
has carried out, or is in the process of carrying
out, initiatives that facilitate the expansion of
the supply of housing.
(B) Initiatives.--Initiatives that meet the criteria
described in paragraph (3)(C) include, but shall not be
limited to--
(i) increasing by-right uses, including
duplex, triplex, quadplex, and multifamily
buildings, in areas of opportunity;
(ii) revising or eliminating off-street
parking requirements to reduce the cost of housing
production;
(iii) revising minimum lot size requirements,
floor area ratio requirements, set-back
requirements, building heights, and bans or limits
on construction that allow for denser and more
affordable development;
(iv) instituting incentives to promote dense
development for communities where increased
density is needed;
(v) passing zoning overlays or other
ordinances that enable the development of mixed-
income housing;
(vi) streamlining regulatory requirements and
shortening processes, increasing code enforcement
and permitting capacity, reforming zoning codes,
or other
[[Page 140 STAT. 877]]
initiatives that reduce barriers to increasing
housing supply and affordability;
(vii) eliminating restrictions against
accessory dwelling units and expanding their by-
right use;
(viii) using local tax incentives or public
financing to promote development of attainable
housing;
(ix) streamlining environmental regulations;
(x) eliminating unnecessary manufactured-
housing or cooperative housing regulations and
restrictions;
(xi) minimizing the impact of overburdensome
energy and water efficiency standards on housing
costs; and
(xii) other activities that reduce the cost of
construction, as determined by the Secretary.
(5) Grants.--
(A) <<NOTE: Time period. Urban and rural areas.>> In
general.--The Secretary shall make not fewer than 25
grants on an annual basis (unless amounts appropriated
to provide grant amounts consistent with subsection (b)
are insufficient, in which case fewer grants may be
awarded), with strong consideration of different
geographical areas and a relatively even spread of
rural, suburban, and urban communities.
(B) Limitations on awards.--No grant awarded under
this paragraph may be--
(i) more than $10,000,000; or
(ii) less than $250,000.
(C) Priority.--When awarding grants under this
paragraph, the Secretary shall give priority to an
eligible entity that has--
(i) demonstrated the use of innovative
policies, interventions, or programs for
increasing housing supply; and
(ii) demonstrated a marked improvement in
housing supply growth, as needed.
(D) Grant administration and terms.--Projects
assisted under this section for activities described in
sector 23 of the North American Industry Classification
System shall be treated as projects assisted under the
Community Development Block Grant program under title I
of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.).
(c) Rules of Construction.--Nothing in this section shall be
construed--
(1) to authorize the Secretary to mandate, supersede, or
preempt any local zoning or land use policy; or
(2) to affect the requirements of section 105(c)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(c)(1)).
(d) Sunset.--The program established under this section shall
terminate on the date that is 7 years after the date of enactment of
this Act.
(e) Authorization of Appropriations.--
(1) <<NOTE: Time period.>> In general.--There is authorized
to be appropriated to carry out this section $200,000,000 for
each of fiscal years 2027 through 2031.
(2) Adjustment.--The amount authorized to be appropriated
under paragraph (1) shall be adjusted for inflation
[[Page 140 STAT. 878]]
based on the Consumer Price Index for all Urban Customers
published by the Bureau of Labor Statistics of the Department of
Labor.
SEC. <<NOTE: Grants. 42 USC 19506.>> 209. ACCELERATING HOME
BUILDING ACT.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the total monthly housing cost payment
is not more than 30 percent of the monthly household income for
a household earning not more than 80 percent of the area median
income.
(2) Covered structure.--The term ``covered structure''
means--
(A) a low-rise or mid-rise structure with not more
than 25 dwelling units; and
(B) includes--
(i) an accessory dwelling unit;
(ii) infill development;
(iii) a duplex;
(iv) a triplex;
(v) a fourplex;
(vi) a cottage court;
(vii) a courtyard building;
(viii) a townhouse;
(ix) a multiplex; and
(x) any other structure with not less than 2
dwelling units that the Secretary considers
appropriate.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of general local government, as defined
in section 102(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a));
(B) a municipal membership organization; and
(C) an Indian tribe, as defined in section 102(a) of
the Housing and Community Development Act of 1974 (42
U.S.C. 5302(a)).
(4) High opportunity area.--The term ``high opportunity
area'' has the meaning given the term in section 1282.1 of title
12, Code of Federal Regulations, or any successor regulation.
(5) Infill development.--The term ``infill development''
means residential development on small parcels in previously
established areas for replacement with new or refurbished
housing that utilizes existing utilities and infrastructure.
(6) Mixed-income housing.--The term ``mixed-income housing''
means a housing development that is comprised of housing units
that promote differing levels of affordability in the community.
(7) Prereviewed designs.--The term ``prereviewed designs'',
also known as pattern books, means sets of construction plans
that are assessed and approved by localities for compliance with
local building and permitting standards to streamline and
expedite approval pathways for housing construction.
(8) Rural area.--The term ``rural area'' means any area
other than a city or town that has a population of less than
50,000 inhabitants.
[[Page 140 STAT. 879]]
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Authority.--The Secretary is authorized to award grants to
eligible entities utilizing funds appropriated for such purpose to
select prereviewed designs of covered structures of mixed-income housing
for use in the jurisdiction of the eligible entity, except that such
grant awards may not be used for construction, alteration, or repair
work.
(c) Considerations.--In reviewing applications submitted by eligible
entities for a grant under this section, the Secretary shall consider--
(1) the need for affordable housing in the service area of
the eligible entity;
(2) the presence of high opportunity areas in the
jurisdiction of the eligible entity;
(3) coordination between the eligible entity and a State
agency; and
(4) coordination between the eligible entity and State,
local, and regional transportation planning authorities.
(d) Set-aside for Rural Areas.--Of the amount made available in each
fiscal year for grants under this section, the Secretary shall ensure
that not less than 10 percent shall be used for grants to eligible
entities that are located in rural areas.
(e) Reports.--The Secretary shall require eligible entities
receiving grants under this section to report on--
(1) the impacts of the activities carried out using the
grant amounts in improving the production and supply of
affordable housing;
(2) the prereviewed designs selected using the grant amounts
in their communities;
(3) the number of permits issued for housing development
utilizing prereviewed designs; and
(4) the number of housing units produced in developments
utilizing the prereviewed designs.
(f) <<NOTE: Public information. Web postings.>> Availability of
Information.--The Secretary shall--
(1) to the extent possible, encourage localities to make
publicly available through a website information on the
prereviewed designs selected and submitted to the Secretary by
eligible entities receiving grants under this section, including
information on the benefits of use of those designs; and
(2) collect, identify, and disseminate best practices
regarding such designs and make such information publicly
available on the website of the Department of Housing and Urban
Development.
(g) <<NOTE: Time period.>> Design Adoption and Repayment.--The
Secretary may require an eligible entity to return to the Secretary any
grant funds received under this section if the selected prereviewed
designs submitted under this section have not been adopted during the 5-
year period following receipt of the grant, unless that period is
extended by the Secretary.
(h) Technical Assistance.--The Secretary may set aside not more than
5 percent of amounts appropriated in a fiscal year to provide technical
assistance to grant recipients under this section and pregrant technical
assistance to prospective applicants.
[[Page 140 STAT. 880]]
SEC. 210. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE
ENVIRONMENTS (RESIDE) ACT.
(a) In General.--Subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12741 et seq.) is amended by
adding at the end the following:
``SEC. 227. <<NOTE: Grants. 42 USC 12757.>> REVITALIZING EMPTY
STRUCTURES INTO DESIRABLE ENVIRONMENTS.
``(a) Definitions.--In this section:
``(1) Attainable housing.--The term `attainable housing'
means housing that serves households earning not more than 120
percent of the area median income, if the majority of the
housing units are affordable to households earning not more than
60 percent of the area median income.
``(2) Converted housing unit.--The term `converted housing
unit' means a housing unit that is created using a covered
grant.
``(3) Covered grant.--The term `covered grant' means a grant
awarded under the Pilot Program.
``(4) Eligible entity.--The term `eligible entity' means a
participating jurisdiction.
``(5) Pilot program.--The term `Pilot Program' means the
pilot program established under subsection (b).
``(6) Vacant and abandoned building.--The term `vacant and
abandoned building' means a property--
``(A) that was constructed for use as a warehouse,
factory, mall, strip mall, or hotel, or for another
industrial or commercial use; and
``(B)(i) with respect to which--
``(I) a code enforcement inspection has
determined that the property is not safe; and
``(II) not less than 90 days have elapsed
since the owner was notified of the deficiencies
in the property and the owner has taken no
corrective action; or
``(ii) that is subject to a court-ordered
receivership or nuisance abatement related to
abandonment pursuant to State or local law or otherwise
meets the definition of an abandoned property under
State law.
``(b) <<NOTE: Time period.>> Purpose of Grant Program.--Subject to
the availability of funds appropriated for this subsection, the
Secretary is authorized to establish a pilot program, spanning from
fiscal years 2027 through 2031, which shall have the purpose of awarding
grants on a competitive basis to eligible entities to convert vacant and
abandoned buildings into attainable housing.
``(c) Amount of Grant.--
``(1) In general.--For any fiscal year for which not less
than $100,000,000 is made available to carry out the Pilot
Program, the amount of a covered grant shall be not less than
$1,000,000 and not more than $10,000,000.
``(2) Fiscal years with lower funding.--For any fiscal year
for which less than $100,000,000 is made available to carry out
the Pilot Program pursuant to subsection (b), the Secretary
shall seek to maximize the number of covered grants awarded.
``(d) Relation to Formula Allocation.--A covered grant awarded to an
eligible entity shall be in addition to, and shall
[[Page 140 STAT. 881]]
not affect, the formula allocation for the eligible entity under section
217.
``(e) Priority.--In awarding covered grants, the Secretary shall
give priority to an eligible entity that--
``(1) will use the covered grant in a community that is
experiencing economic distress;
``(2) will use the covered grant in a qualified opportunity
zone (as defined in section 1400Z-1(a) of the Internal Revenue
Code of 1986);
``(3) will use the covered grant to construct housing that
will serve a need identified in the comprehensive housing
affordability strategy and community development plan of the
eligible entity under part 91 of title 24, Code of Federal
Regulations, or any successor regulation (commonly referred to
as a `consolidated plan'); or
``(4) has enacted ordinances to reduce regulatory barriers
to conversion of vacant and abandoned buildings to housing,
which shall not include any alteration of an ordinance that
governs safety and habitability.
``(f) Use of Funds.--An eligible entity may use a covered grant
for--
``(1) property acquisition;
``(2) demolition;
``(3) health hazard remediation;
``(4) site preparation;
``(5) construction, renovation, or rehabilitation; or
``(6) the establishment, maintenance, or expansion of
community land trusts or housing cooperatives.
``(g) <<NOTE: Public information.>> Waiver Authority.--In
administering covered grants, the Secretary may waive, or specify
alternative requirements for, any statute or regulation that the
Secretary administers in connection with the obligation by the Secretary
or the use by eligible entities of covered grant funds (except for
requirements related to fair housing, nondiscrimination, labor
standards, or the environment) if the Secretary makes a public finding
that good cause exists for the waiver or alternative requirement.
``(h) Study; Report.--Not later than 180 days after the termination
of the Pilot Program, the Secretary shall study and submit to Congress a
report on the impact of the Pilot Program on--
``(1) improving the tax base of local communities;
``(2) increasing access to affordable housing, especially
for elderly individuals, disabled individuals, and veterans;
``(3) increasing home-ownership; and
``(4) removing blight.''.
(b) Technical and Conforming Amendment.--The table of contents in
section 1(b) of the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625; 104 Stat. 4079) is amended by inserting after the
item relating to section 226 the following:
``Sec. 227. Revitalizing empty structures into desirable
environments.''.
SEC. 211. HOUSING AFFORDABILITY ACT.
(a) In General.--Title II of the National Housing Act (12 U.S.C.
1707 et seq.) is amended--
(1) in section 206A (12 U.S.C. 1712a)--
(A) in subsection (a), in the matter following
paragraph (7), by striking ``(commencing in 2004'' and
all that follows through the period at the end and
inserting the following:
[[Page 140 STAT. 882]]
``, commencing on July 1, 2025. <<NOTE: Federal
Register, publication. Public comments.>> The
adjustment of the Dollar Amounts shall be calculated by
the Secretary using the percentage change in the Price
Deflator Index of Multifamily Residential Units Under
Construction released by the Bureau of the Census from
March of the previous year to March of the year in which
the adjustment is made, or by the Secretary using an
alternative indicator after publishing information about
such alternative indicator in the Federal Register for
public comment if the Price Deflator Index of
Multifamily Residential Units Under Construction is not
available or published.''; and
(B) by amending subsection (b) to read as follows:
``(b) Publication.--
``(1) <<NOTE: Federal Register, publication.>> In general.--
The Secretary shall publish in the Federal Register any
adjustments made to the Dollar Amounts.
``(2) Rounding.--The dollar amount of any adjustment
described in paragraph (1) shall be rounded to the next lower
dollar.'';
(2) in section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A))--
(A) by striking ``$38,025'' and inserting
``$167,310'';
(B) by striking ``$42,120'' and inserting
``$185,328'';
(C) by striking ``$50,310'' and inserting
``$221,364'';
(D) by striking ``$62,010'' and inserting
``$272,844'';
(E) by striking ``$70,200'' and inserting
``$308,880'';
(F) by striking ``, or not to exceed $17,460 per
space'';
(G) by striking ``$43,875'' and inserting
``$193,050'';
(H) by striking ``$49,140'' and inserting
``$216,216'';
(I) by striking ``$60,255'' and inserting
``$265,122'';
(J) by striking ``$75,465'' and inserting
``$332,046''; and
(K) by striking ``$85,328'' and inserting
``$375,443'';
(3) in section 213(b)(2) (12 U.S.C. 1715e(b)(2))--
(A) by striking ``$41,207'' and inserting
``$181,311'';
(B) by striking ``$47,511'' and inserting
``$209,048'';
(C) by striking ``$57,300'' and inserting
``$252,120'';
(D) by striking ``$73,343'' and inserting
``$322,709'';
(E) by striking ``$81,708'' and inserting
``$359,515'';
(F) by striking ``$43,875'' and inserting
``$193,050'';
(G) by striking ``$49,710'' and inserting
``$218,724'';
(H) by striking ``$60,446'' and inserting
``$265,962'';
(I) by striking ``$78,197'' and inserting
``$344,067''; and
(J) by striking ``$85,836'' and inserting
``$377,678'';
(4) in section 220(d)(3)(B)(iii)(I) (12 U.S.C.
1715k(d)(3)(B)(iii)(I))--
(A) by striking ``$38,025'' and inserting
``$167,310'';
(B) by striking ``$42,120'' and inserting
``$185,328'';
(C) by striking ``$50,310'' and inserting
``$221,364'';
(D) by striking ``$62,010'' and inserting
``$272,844'';
(E) by striking ``$70,200'' and inserting
``$308,880'';
(F) by striking ``$43,875'' and inserting
``$193,050'';
(G) by striking ``$49,140'' and inserting
``$216,216'';
(H) by striking ``$60,255'' and inserting
``$265,122'';
(I) by striking ``$75,465'' and inserting
``$332,046''; and
(J) by striking ``$85,328'' and inserting
``$375,443'';
(5) in section 221(d)(4)(ii)(I) (12 U.S.C.
1715l(d)(4)(ii)(I))--
(A) by striking ``$37,843'' and inserting
``$166,509'';
(B) by striking ``$42,954'' and inserting
``$188,997'';
(C) by striking ``$51,920'' and inserting
``$228,448'';
[[Page 140 STAT. 883]]
(D) by striking ``$65,169'' and inserting
``$286,744'';
(E) by striking ``$73,846'' and inserting
``$324,922'';
(F) by striking ``$40,876'' and inserting
``$179,854'';
(G) by striking ``$46,859'' and inserting
``$206,180'';
(H) by striking ``$56,979'' and inserting
``$250,708'';
(I) by striking ``$73,710'' and inserting
``$324,324''; and
(J) by striking ``$80,913'' and inserting
``$356,017'';
(6) in section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A))--
(A) by striking ``$35,978'' and inserting
``$166,509'';
(B) by striking ``$40,220'' and inserting
``$188,997'';
(C) by striking ``$48,029'' and inserting
``$228,448'';
(D) by striking ``$57,798'' and inserting
``$286,744'';
(E) by striking ``$67,950'' and inserting
``$324,922'';
(F) by striking ``$40,876'' and inserting
``$179,854'';
(G) by striking ``$46,859'' and inserting
``$206,180'';
(H) by striking ``$56,979'' and inserting
``$250,708'';
(I) by striking ``$73,710'' and inserting
``$324,324''; and
(J) by striking ``$80,913'' and inserting
``$356,017''; and
(7) in section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A))--
(A) by striking ``$42,048'' and inserting
``$185,011'';
(B) by striking ``$48,481'' and inserting
``$213,316'';
(C) by striking ``$58,469'' and inserting
``$257,263'';
(D) by striking ``$74,840'' and inserting
``$329,296'';
(E) by striking ``$83,375'' and inserting
``$366,850'';
(F) by striking ``$44,250'' and inserting
``$194,700'';
(G) by striking ``$50,724'' and inserting
``$223,186'';
(H) by striking ``$61,680'' and inserting
``$271,392'';
(I) by striking ``$79,793'' and inserting
``$351,089''; and
(J) by striking ``$87,588'' and inserting
``$385,387''.
(b) <<NOTE: 12 USC 1712a note.>> Rule of Construction.--Nothing in
this section or the amendments made by this section may be construed to
limit the authority of the Secretary of Housing and Urban Development to
revise the statutory exceptions for high-cost percentage and high-cost
areas annual indexing.
(c) <<NOTE: Assessments.>> Multifamily Loan Limit Study.--The
Commissioner of the Federal Housing Administration, in consultation with
the Secretary of Housing and Urban Development, shall conduct a study to
assess the following in comparison to the loan limits prior to the
amendments made under this section:
(1) Whether the Commissioner has sufficient authority to
increase loan limits for each multifamily mortgage insurance
program at appropriate amounts, including to meet market demand.
(2) The impacts that multifamily loan limit increases have
had, if any, on--
(A) the General Insurance and Special Risk Insurance
Fund;
(B) the change in volume of multifamily purchase and
construction lending that is insured by the Federal
Housing Administration; and
(C) <<NOTE: Time period.>> subject to the
availability of data, the year-over-year change over the
last 6 years in--
(i) median and average lending costs as well
as rent and house prices within the multifamily
housing market; and
[[Page 140 STAT. 884]]
(ii) multifamily housing supply, including the
number of building permits issued as well as
housing unit starts and completions.
(d) Report.--Not later than 3 years after the date of enactment of
this Act, the Commissioner of the Federal Housing Administration shall
submit to Congress a report summarizing the findings of the Commissioner
for the study conducted under subsection (b).
SEC. 212. RENTAL ASSISTANCE DEMONSTRATION PROGRAM.
The language under the heading ``Rental Assistance Demonstration''
in the Department of Housing and Urban Development Appropriations Act,
2012 (Public Law 112-55; 125 Stat. 673) <<NOTE: 42 USC 1437f note.>> is
amended--
(1) in the second proviso, by striking ``until September 30,
2029'' and inserting ``for fiscal year 2012 and each fiscal year
thereafter'';
(2) in the fourth proviso, by striking ``455,000'' and
inserting ``555,000'';
(3) in the twentieth proviso, as so designated before the
date of enactment of this Act, by striking ``or other means:''
and inserting ``or other means, including the adoption of a
mandatory tenant lease and management plan addendum for a
property with assistance converted, if not otherwise covered by
another program, under this demonstration:''; and
(4) by striking ``vouchers to project-based vouchers.'' and
inserting ``vouchers to project-based vouchers: Provided
further, That <<NOTE: Time period. Assessment Publication.>>
the Secretary shall annually assess and publish findings
regarding the impact of the conversion of assistance under the
First Component of the demonstration with respect to the
preservation and improvement of public housing, the amount of
private sector leveraging resulting from such conversion
transactions, the prevalence of pre-conversion residents
remaining in or returning to the property following conversion,
and the effect of such conversion on tenants, including the
impact of such conversion on the rights maintained by tenants as
enumerated in regulations and other documents conferring rights
upon tenants as developed by the Secretary, and other matters
the Secretary may determine appropriate: Provided
further, <<NOTE: Penalties.>> That the Secretary may take
remediative action or impose civil money penalties or other
administrative sanctions for material violations of a
requirement under the First and Second Components of this
demonstration: Provided further, That nothing in the matter
under this heading shall be construed to diminish, impair, or
otherwise negatively affect the Rental Assistance Demonstration
property rights of owners or rights of tenants, which shall
remain enforceable by tenants, as enumerated in current law,
regulations, and other agency guidance or notices as it relates
to properties converted under the First and Second Components of
the Rental Assistance Demonstration Program; Provided further,
That any property owned by the public housing agency shall be
used to replace, create, preserve, improve, or expand affordable
housing supply, including as part of mixed use developments, and
no conversion under the Rental Assistance Demonstration shall be
used for sporting, private, or for-profit purposes, excluding
those which maintain or expand housing supply which may use an
affordable housing tax credit or other housing affordability
program.''.
[[Page 140 STAT. 885]]
SEC. 213. <<NOTE: 42 USC 19507.>> BUILD NOW ACT.
(a) Definitions.--In this section:
(1) Covered recipient.--The term ``covered recipient'' means
a metropolitan city or urban county, as those terms are defined
in section 102 of the Housing and Community Development Act of
1974 (42 U.S.C. 5302), that receives funds under section 106.
(2) Current annual growth rate.--The term ``current annual
growth rate'', with respect to an eligible recipient and a
fiscal year, means the average annual percentage increase in the
number of housing units in the jurisdiction of the eligible
recipient, as calculated by the Secretary, during the period--
(A) beginning with the third quarter of the sixth
preceding fiscal year; and
(B) ending with the third quarter of the preceding
fiscal year.
(3) Eligible recipient.--The term ``eligible recipient''
means any covered recipient unless--
(A)(i) the median Small Area Fair Market Rent in the
jurisdiction of the covered recipient is at or below the
60th percentile of median Small Area Fair Market Rents
in the jurisdictions of all covered recipients; and
(ii) the median home value in the jurisdiction of
the covered recipient is below the median home value for
the United States;
(B) the annual rental vacancy rate in the
jurisdiction of the covered recipient is greater than
the national annual rental vacancy rate for the most
recent year available, as published by the Bureau of the
Census;
(C) during the 3-year period preceding the date on
which the Secretary allocates funds under section 106,
the jurisdiction of the covered recipient has been the
subject of a major disaster or emergency declaration
under section 401 or 501, respectively, of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170, 5191); or
(D) the covered recipient lacks the legal authority
to enact or update zoning and permitting ordinances.
(4) Extremely high-growth recipient.--The term ``extremely
high-growth recipient'' means an eligible recipient for which
the current annual growth rate is at or above 4 percent.
(5) Housing growth improvement rate.--The term ``housing
growth improvement rate'', with respect to an eligible recipient
and a fiscal year, means the quotient of--
(A)(i) the current annual growth rate of the
eligible recipient, minus
(ii) the prior annual growth rate of the eligible
recipient; and
(B) the sum obtained by adding the absolute values
of the current annual growth rate and the prior annual
growth rate of the eligible recipient.
(6) Prior annual growth rate.--The term ``prior annual
growth rate'', with respect to an eligible recipient and a
fiscal year, means the average annual percentage increase in the
number of housing units in the jurisdiction of the eligible
recipient, as calculated by the Secretary, during the period--
[[Page 140 STAT. 886]]
(A) beginning with the third quarter of the 11th
preceding fiscal year; and
(B) ending with the third quarter of the sixth
preceding fiscal year.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(8) Section 106.--The term ``section 106'' means section 106
of the Housing and Community Development Act of 1974 (42 U.S.C.
5306).
(b) Adjustments to Community Development Block Grant Allocations.--
(1) In general.--In allocating amounts to an eligible
recipient under section 106 for a fiscal year, the Secretary
shall adjust the allocation based on the housing growth
improvement rate of the eligible recipient, in accordance with
paragraph (2) of this subsection.
(2) Adjustments.--
(A) Housing growth improvement rate at or above
median; extremely high-growth recipients.--
(i) In general.--If, with respect to a fiscal
year for which the allocation under section 106 is
being determined, the housing growth improvement
rate for an eligible recipient is at or above the
median housing growth improvement rate for all
eligible recipients other than extremely high-
growth recipients, or if an eligible recipient is
an extremely high-growth recipient, the Secretary
shall allocate to the eligible recipient for that
fiscal year, in addition to the amount that would
otherwise be allocated to the eligible recipient
under section 106, a bonus amount, as determined
under clause (ii) of this subparagraph.
(ii) <<NOTE: Time periods.>> Bonus amount.--
For purposes of clause (i), the bonus amount for
an eligible recipient for a fiscal year shall be
equal to the product of--
(I) the aggregate amount by which
allocations to eligible recipients are
decreased under subparagraph (B) for
that fiscal year; and
(II) the quotient of--
(aa) the difference in the
number of housing units, between
the third quarter of the second
preceding fiscal year and the
third quarter of the preceding
fiscal year, in the jurisdiction
of the eligible recipient, as
calculated by the Secretary; and
(bb) the difference in the
number of housing units, between
the third quarter of the second
preceding fiscal year and the
third quarter of the preceding
fiscal year, in the
jurisdictions of all eligible
recipients that receive a bonus
amount under this paragraph, as
calculated by the Secretary.
(B) Housing growth improvement rate below median.--
<<NOTE: Time period.>> If, with respect to a fiscal year
for which the allocation under section 106 is being
determined, the housing growth improvement rate for an
eligible recipient is below the median housing growth
improvement rate for all eligible recipients other than
high-growth outliers,
[[Page 140 STAT. 887]]
the Secretary shall decrease the amount that would
otherwise be allocated to the eligible recipient under
section 106 for that fiscal year by 10 percent.
(c) Calculation of Housing Units.--
(1) Housing and urban development requirements.--In
calculating the number of housing units in the jurisdiction of
an eligible recipient under any provision of this section, the
Secretary shall--
(A) use the Current Address Count Listing Files and
other data products, as needed, of the Bureau of the
Census tabulated from the Master Address File; and
(B) make calculations at the block level, using
boundaries that reflect the most current boundaries.
(2) Census bureau and postal service requirements.--The
Bureau of <<NOTE: Data.>> the Census and the United States
Postal Service shall provide any relevant data to the Secretary
upon request to assist the Secretary in making a calculation
described in paragraph (1).
(3) Adjustment of calculation periods.--The Secretary may
adjust the calculation periods under subparagraphs (A) and (B)
of subsection (a)(2), subparagraphs (A) and (B) of subsection
(a)(6), and items (aa) and (bb) of subsection (b)(2)(A)(ii)(II)
by not more than 2 months to achieve alignment with the data
provided by the Bureau of the Census.
(d) Annual Report on Housing Growth Improvement Rate.--
Before <<NOTE: Publication.>> allocating funds under section 106 for a
fiscal year, the Secretary shall publish a report that--
(1) includes the housing growth improvement rate for each
eligible recipient; and
(2) lists, for the most recent fiscal year for which
allocations were made under section 106--
(A) the eligible recipients that received a bonus
amount under subsection (b)(2)(A); and
(B) the eligible recipients for which the allocation
under section 106 was decreased under subsection
(b)(2)(B) of this section.
(e) Notification; Implementation Dates.--
(1) Notification.--
(A) <<NOTE: Deadline.>> In general.--Not later than
60 days after the date of enactment of this Act, the
Secretary shall notify each eligible recipient of the
recipient's housing growth improvement rate and whether
that housing growth improvement rate is above, at, or
below the median housing growth improvement rate for all
eligible recipients other than extremely high-growth
recipients.
(B) <<NOTE: Recommenda- tions.>> Guidance.--As part
of the notification under subparagraph (A), the
Secretary shall share guidance, including resources
developed by the Department of Housing and Urban
Development, on best practices and recommendations for
policies to reduce regulatory barriers to housing and
increase housing supply.
(2) <<NOTE: Time periods.>> Implementation dates.--
Subsection (b) shall take effect beginning with the third full
fiscal year after the date of enactment of this Act and remain
in effect through fiscal year 2043.
[[Page 140 STAT. 888]]
(3) No effect on previous appropriations.--This section
shall not apply to amounts appropriated before the date of
enactment of this Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
SEC. 301. HOUSING SUPPLY EXPANSION ACT.
(a) In General.--Section 603(6) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6)) is
amended by striking ``on a permanent chassis'' and inserting ``with or
without a permanent chassis''.
(b) Standards for Manufactured Homes Built Without a Permanent
Chassis.--Section 604(a) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403(a)) is
amended by adding the following:
``(7) Standards for manufactured homes built without a
permanent chassis.--
``(A) In general.--The Secretary, in consultation
with the consensus committee, shall issue revised
standards for manufactured homes built without a
permanent chassis using the process described in
paragraph (4).
``(B) <<NOTE: Consultation.>> Creating final
standards.--The Secretary shall, after consulting and
conferring with the consensus committee, establish
standards to ensure that manufactured homes without a
permanent chassis have--
``(i) a distinct label, with revenue generated
to be deposited into the Manufactured Housing Fees
Trust Fund established under section 620(e)(1), to
be issued by the Secretary distinguishing
manufactured home built without a permanent
chassis from manufactured homes built on a
permanent chassis;
``(ii) a data plate, as described in section
3280.5 of title 24, Code of Federal Regulations
(or any successor regulation), distinguishing
manufactured homes built without a permanent
chassis from manufactured homes built on a
permanent chassis; and
``(iii) a notation on any invoice produced by
the manufacturer of a manufactured home that is
distinguishable from the invoice for a
manufactured home constructed with a permanent
chassis.''.
(c) Manufactured Home Certifications.--Section 604 of the National
Manufactured Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5403) is amended by adding at the end the following:
``(i) Manufactured Home Certifications.--
``(1) In general.--
``(A) <<NOTE: Deadline.>> Initial certification.--
Subject to subparagraph (B), not later than 1 year after
the date of enactment of the 21st Century ROAD to
Housing Act, a State shall submit to the Secretary an
initial certification that the laws and regulations of
the State--
``(i) treat any manufactured home in parity
with a manufactured home (as defined and regulated
by the State); and
[[Page 140 STAT. 889]]
``(ii) <<NOTE: Determination. Consultation. Approva
l.>> subject a manufactured home without a
permanent chassis to the same laws and regulations
of the State as a manufactured home built on a
permanent chassis, including with respect to
financing, title, insurance, manufacture, sale,
taxes, transportation, installation, and other
areas as the Secretary determines, after
consultation with and approval by the consensus
committee, are necessary to give effect to the
purpose of this section.
``(B) State plan submission.--Any State plan
submitted under section 623(b) shall contain the
required State certification under subparagraph (A) and,
if contained therein, no additional or State
certification under subparagraph (A) or paragraph (3).
``(C) Extended deadline.--With respect to a State
with a legislature that meets biennially, the deadline
for the submission of the initial certification required
under subparagraph (A) shall be 2 years after the date
of enactment of the 21st Century ROAD to Housing Act.
``(D) Late certification.--
``(i) <<NOTE: Approval.>> No waiver.--The
Secretary may not waive the prohibition described
in paragraph (5)(B) with respect to a
certification submitted after the deadline under
subparagraph (A) or paragraph (3) unless the
Secretary approves the late certification.
``(ii) Rule of construction.--Nothing in this
subsection shall be construed to prevent a State
from submitting the initial certification required
under subparagraph (A) after the required deadline
under that subparagraph.
``(2) Form of state certification not presented in a state
plan.-- <<NOTE: Attestation.>> The initial certification
required under paragraph (1)(A), if not submitted with a State
plan under paragraph (1)(B), shall contain, in a form prescribed
by the Secretary, an attestation by an official that the State
has taken the steps necessary to ensure the veracity of the
certification required under paragraph (1)(A), including, as
necessary, by--
``(A) amending the definition of `manufactured home'
in the laws and regulations of the State; and
``(B) directing State agencies to amend the
definition of `manufactured home' in regulations.
``(3) <<NOTE: Determination.>> Annual recertification.--Not
later than a date to be determined by the Secretary each year, a
State shall submit to the Secretary an additional certification
that--
``(A) confirms the accuracy of the initial
certification submitted under subparagraph (A) or (B) of
paragraph (1); and
``(B) certifies that any new laws or regulations
enacted or adopted by the State since the date of the
previous certification do not change the veracity of the
initial certification submitted under paragraph (1)(A).
``(4) <<NOTE: Federal Register, publication. Web posting.>>
List.--The Secretary shall publish and maintain in the Federal
Register and on the website of the Department of Housing and
Urban Development a list of States that are up to date with the
submission of initial and subsequent certifications required
under this subsection.
``(5) Prohibition.--
[[Page 140 STAT. 890]]
``(A) Definition.--In this paragraph, the term
`covered manufactured home' means a home that is--
``(i) not considered a manufactured home under
the laws and regulations of a State because the
home is constructed without a permanent chassis;
``(ii) considered a manufactured home under
the definition of the term in section 603; and
``(iii) constructed after the date of
enactment of the 21st Century ROAD to Housing Act.
``(B) Building, installation, and sale.--If a State
does not submit a certification under paragraph (1)(A)
or (3) by the date on which those certifications are
required to be submitted--
``(i) with respect to a State in which the
State administers the installation of manufactured
homes, the State shall prohibit the manufacture,
installation, or sale of a covered manufactured
home within the State; and
``(ii) with respect to a State in which the
Secretary administers the installation of
manufactured homes, the State and the Secretary
shall prohibit the manufacture, installation, or
sale of a covered manufactured home within the
State.''.
(d) <<NOTE: 42 USC 5403 note.>> Other Federal Laws Regulating
Manufactured Homes.--
(1) In general.--The Secretary of Housing and Urban
Development may coordinate with the heads of other Federal
agencies to ensure that Federal agencies treat a manufactured
home (as defined in Federal laws and regulations other than
section 603 of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5402)) in the same
manner as a manufactured home (as defined in section 603 of the
National Manufactured Housing Construction and Safety Standards
Act of 1974 (42 U.S.C. 5402), as amended by this Act).
(2) Energy efficiency standards.--
(A) Manufactured home defined.--In this paragraph,
the term ``manufactured home'' has the meaning given the
term in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C.
5402), as amended by this Act.
(B) Process.--No energy efficiency standards for
manufactured homes developed by any Federal agency shall
have legal effect unless and until adopted by the
Department of Housing and Urban Development pursuant to
the consensus standards and regulatory development
process described in section 604(a)(2) of the National
Manufactured Housing Construction and Safety Standards
Act of 1974 (42 U.S.C. 5403(a)(2)).
(C) Minimum standards.--The Secretary of Housing and
Urban Development shall--
(i) <<NOTE: Deadline.>> not later than 1 year
after the date of enactment of this Act, adopt
minimum energy efficiency standards for
manufactured homes; and
(ii) <<NOTE: Time period. Updates.>> not less
frequently than once every 3 years after adopting
the standards under clause (i), update those
standards.
[[Page 140 STAT. 891]]
(e) Assistance to States.--Section 609 of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5408)
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) model guidance to support the submission of the
certification required under section 604(i).''.
(f) <<NOTE: 42 USC 5403 note.>> Preemption.--Nothing in this section
or the amendments made by this section may be construed as limiting the
scope of Federal preemption under section 604(d) of the National
Manufactured Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5403(d)).
SEC. <<NOTE: 12 USC 1703 note.>> 302. MODULAR HOUSING PRODUCTION
ACT.
(a) Definitions.--In this section:
(1) Manufactured home.--The term ``manufactured home'' has
the meaning given the term in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(2) Modular home.--The term ``modular home'' means a home
that is constructed in a factory in 1 or more modules, each of
which meets applicable State and local building codes of the
area in which the home will be located, and that are transported
to the home building site, installed on foundations, and
completed.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) FHA Construction Financing Programs.--
(1) <<NOTE: Review.>> In general.--The Secretary shall
conduct a review of Federal Housing Administration construction
financing programs to identify barriers to the use of modular
home methods.
(2) Requirements.--In conducting the review under paragraph
(1), the Secretary shall--
(A) <<NOTE: Evaluation.>> identify and evaluate
regulatory and programmatic features that restrict
participation in construction financing programs by
modular home developers, including construction draw
schedules; and
(B) identify administrative measures authorized
under section 525 of the National Housing Act (12 U.S.C.
1735f-3) to facilitate program utilization by modular
home developers.
(3) <<NOTE: Publication.>> Report.--Not later than 1 year
after the date of enactment of this Act, the Secretary shall
publish a report that describes the results of the review
conducted under paragraph (1), which shall include a description
of programmatic and policy changes that the Secretary recommends
to reduce or eliminate identified barriers to the use of modular
home methods in Federal Housing Administration construction
financing programs.
(4) Rulemaking.--
(A) <<NOTE: Deadline. Examination. Public
comments.>> In general.--Not later than 120 days after
the date on which the Secretary publishes the report
under paragraph (3), the Secretary shall initiate a
rulemaking to examine an alternative draw schedule for
construction financing loans provided to modular and
manufactured
[[Page 140 STAT. 892]]
home developers, which shall include the ability for
interested stakeholders to provide robust public
comment.
(B) Determination.--Following the period for public
comment under subparagraph (A), the Secretary shall--
(i) issue a final rule regarding an
alternative draw schedule described in
subparagraph (A); or
(ii) provide an explanation as to why the rule
shall not become final.
(c) Standardized Uniform Commercial Code for Modular Homes.--
The <<NOTE: Grants. Study. Evaluation.>> Secretary may award a grant to
study the design and feasibility of a standardized uniform commercial
code for modular homes, which shall evaluate--
(1) the utility of a standardized coding system for
serializing and securing modules, streamlining design and
construction, and improving modular home innovation; and
(2) a means to coordinate a standardized code with financing
incentives.
SEC. 303. PROPERTY IMPROVEMENT AND MANUFACTURED HOUSING LOAN
MODERNIZATION ACT.
(a) National Housing Act Amendments.--
(1) In general.--Section 2 of the National Housing Act (12
U.S.C. 1703) is amended--
(A) in subsection (a), by inserting ``construction
of additional or accessory dwelling units, as defined by
the Secretary,'' after ``energy conserving
improvements,''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) by striking subparagraph (A) and
inserting the following:
``(A) $75,000 if made for the purpose of financing
alterations, repairs, and improvements upon or in connection
with an existing single-family structure, including a
manufactured home;'';
(II) in subparagraph (B)--
(aa) by striking ``$60,000''
and inserting ``$150,000'';
(bb) by striking ``$12,000''
and inserting ``$37,500''; and
(cc) by striking ``an
apartment house or'';
(III) by striking subparagraphs (C)
and (D) and inserting the following:
``(C)(i) $106,405 if made for the purpose of financing the
purchase of a single-section manufactured home; and
``(ii) $195,322 if made for the purpose of financing the
purchase of a multi-section manufactured home;
``(D)(i) $149,782 if made for the purpose of financing the
purchase of a single-section manufactured home and a suitably
developed lot on which to place the home; and
``(ii) $238,699 if made for the purpose of financing the
purchase of a multi-section manufactured home and a suitably
developed lot on which to place the home;'';
(IV) in subparagraph (E)--
(aa) by striking ``$23,226''
and inserting ``$43,377''; and
(bb) by striking the period
at the end and inserting a
semicolon;
[[Page 140 STAT. 893]]
(V) in subparagraph (F), by striking
``and'' at the end;
(VI) in subparagraph (G), by
striking the period at the end and
inserting ``; and''; and
(VII) by inserting after
subparagraph (G) the following:
``(H) such principal amount as the Secretary may prescribe
if made for the purpose of financing the construction of an
accessory dwelling unit.'';
(ii) in the matter immediately preceding
paragraph (2)--
(I) by striking ``regulation'' and
inserting ``notice'';
(II) by striking ``increase'' and
inserting ``set'';
(III) by striking ``(A)(ii), (C),
(D), and (E)'' and inserting ``(A)
through (H)'';
(IV) by inserting ``, or as
necessary to achieve the goals of the
Federal Housing Administration,
periodically reset the dollar amount
limitations in subparagraphs (A) through
(H) based on justification and
methodology set forth in advance by
regulation'' before the period at the
end; and
(V) by adjusting the margins
appropriately;
(iii) in paragraph (3), by striking
``exceeds--'' and all that follows through the
period at the end and inserting ``exceeds such
period of time as determined by the Secretary, not
to exceed 30 years.'';
(iv) by striking paragraph (9) and inserting
the following:
``(9) Annual indexing of certain dollar amount
limitations.--The <<NOTE: Determination.>> Secretary shall
develop or choose 1 or more methods of indexing in order to
annually set the loan limits established in paragraph (1), based
on data the Secretary determines is appropriate for purposes of
this section.''; and
(v) in paragraph (11), by striking ``lease--''
and all that follows through the period at the end
and inserting ``lease meets the terms and
conditions established by the Secretary''.
(2) <<NOTE: 12 USC 1703 note.>> Deadline for development or
choice of new index; interim index.--
(A) Deadline for development or choice of new
index.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and
Urban Development shall develop or choose 1 or more
methods of indexing as required under section 2(b)(9) of
the National Housing Act (12 U.S.C. 1703(b)(9)), as
amended by paragraph (1) of this subsection.
(B) <<NOTE: Time period. Applicability.>> Interim
index.--During the period beginning on the date of
enactment of this Act and ending on the date on which
the Secretary of Housing and Urban Development develops
or chooses 1 or more methods of indexing as required
under section 2(b)(9) of the National Housing Act (12
U.S.C. 1703(b)(9)), as amended by paragraph (1) of this
subsection, the method of indexing established by the
Secretary under such section 2(b)(9) before the date of
enactment of this Act shall apply.
(b) HUD Study of Offsite Construction.--
[[Page 140 STAT. 894]]
(1) Definitions.--In this subsection:
(A) Offsite construction housing.--The term
``offsite construction housing'' includes manufactured
homes and modular homes.
(B) Manufactured home.--The term ``manufactured
home'' means any home constructed in accordance with the
construction and safety standards established under the
National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5401 et seq.).
(C) Modular home.--The term ``modular home'' means a
home that is constructed in a factory in 1 or more
modules, each of which meets applicable State and local
building codes of the area in which the home will be
located, and that are transported to the home building
site, installed on foundations, and completed.
(2) <<NOTE: Reports.>> Study.--Not later than 1 year after
the date of enactment of this section, the Secretary of Housing
and Urban Development shall conduct a study and submit to
Congress a report on the cost effectiveness of offsite
construction housing that includes--
(A) an analysis of the advantages and the impact of
centralization in a factory and transportation to a
construction site on cost, precision, and materials
waste;
(B) the extent to which offsite construction housing
meets housing quality standards under the National
Standards for the Physical Inspection of Real Estate, or
other standards as the Secretary may prescribe, compared
to the extent for site-built homes, for such standards;
(C) the expected replacement and maintenance costs
over the first 40 years of life of offsite construction
homes compared to those costs for site-built homes; and
(D) opportunities for use beyond single-family
housing, such as applications in accessory dwelling
units, two- to four-unit housing, and large multifamily
housing.
SEC. 304. PRICE ACT.
(a) In General.--Title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.) is amended--
(1) in section 105(a) (42 U.S.C. 5305(a)), in the matter
preceding paragraph (1), by striking ``Activities'' and
inserting ``Unless otherwise authorized under section 123,
activities''; and
(2) by adding at the end the following:
``SEC. 123. <<NOTE: 42 USC 5323.>> PRESERVATION AND REINVESTMENT
FOR COMMUNITY ENHANCEMENT.
``(a) Definitions.--In this section:
``(1) Community development financial institution.--The term
`community development financial institution' means an
institution that has been certified as a community development
financial institution (as defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4702)) by the Secretary of the Treasury.
``(2) Eligible manufactured housing community.--The term
`eligible manufactured housing community' means a manufactured
housing community that--
[[Page 140 STAT. 895]]
``(A) is affordable to low- and moderate-income
persons, as determined by the Secretary, but not more
than 120 percent of the area median income; and
``(B)(i) is owned by the residents of the
manufactured housing community through a resident-
controlled entity such as a resident-owned cooperative;
or
``(ii) will be maintained as such a community, and
remain affordable for low- and moderate-income persons,
to the maximum extent practicable and for the longest
period feasible.
``(3) Eligible recipient.--The term `eligible recipient'
means--
``(A) an eligible manufactured housing community;
``(B) a unit of general local government;
``(C) a housing authority;
``(D) a resident-owned community;
``(E) a resident-owned cooperative;
``(F) a nonprofit entity with housing expertise or a
consortium of such entities;
``(G) a community development financial institution;
``(H) an Indian tribe;
``(I) a tribally designated housing entity;
``(J) the Department of Hawaiian Home Lands;
``(K) a State; or
``(L) any other entity that is--
``(i) an owner-operator of an eligible
manufactured housing community; and
``(ii) working with an eligible manufactured
housing community.
``(4) Indian tribe.--The term `Indian tribe' has the meaning
given the term `Indian tribe' in section 4 of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4103).
``(5) Manufactured housing community.--The term
`manufactured housing community' means--
``(A) any community, court, park, or other land
under unified ownership developed and accommodating, or
equipped to accommodate, the placement of manufactured
homes, where--
``(i) spaces within such community are or will
be primarily used for residential occupancy;
``(ii) all homes within the community are used
for permanent occupancy; and
``(iii) a majority of such occupied spaces
within the community are occupied by manufactured
homes, which may include homes constructed prior
to enactment of the Manufactured Home Construction
and Safety Standards; or
``(B) any community that meets the definition of
manufactured housing community used for programs similar
to the program under this section.
``(6) Resident health, safety, and accessibility
activities.--The term `resident health, safety, and
accessibility activities' means the reconstruction, repair, or
replacement of manufactured housing and manufactured housing
communities to--
``(A) protect the health and safety of residents;
[[Page 140 STAT. 896]]
``(B) address weatherization and reduce utility
costs; or
``(C) address accessibility needs for residents with
disabilities.
``(7) Tribally designated housing entity.--The term
`tribally designated housing entity' has the meaning given the
term in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4103).
``(b) <<NOTE: Grants. Notice.>> Establishment.--There is authorized
a competitive grant program that the Secretary shall, by notice, carry
out to make awards utilizing funds appropriated for such purpose to
eligible recipients to carry out eligible projects for development of or
improvements to eligible manufactured housing communities.
``(c) Eligible Projects.--
``(1) In general.--Amounts from grants under this section
may be used for--
``(A) community infrastructure, facilities,
utilities, and other land improvements in or serving an
eligible manufactured housing community;
``(B) reconstruction or repair of existing housing
within an eligible manufactured housing community;
``(C) replacement of homes within an eligible
manufactured housing community;
``(D) planning;
``(E) resident health, safety, and accessibility
activities in homes in an eligible manufactured housing
community;
``(F) land and site acquisition and infrastructure
for expansion or construction of an eligible
manufactured housing community;
``(G) resident and community services, including
relocation assistance, eviction prevention, and down
payment assistance; and
``(H) any other activity that--
``(i) is approved by the Secretary consistent
with the requirements under this section;
``(ii) improves the overall living conditions
of an eligible manufactured housing community,
which may include the addition or enhancement of
shared spaces such as community centers,
recreational areas, or other facilities that
support resident well-being and community
engagement; and
``(iii) is necessary to protect the health and
safety of the residents of the eligible
manufactured housing community and the long-term
affordability and sustainability of the community.
``(2) Replacement.--For purposes of subparagraphs (B) and
(C) of paragraph (1), grants under this section--
``(A) may not be used for rehabilitation or
modernization of units that were built before June 15,
1976; and
``(B) <<NOTE: Compliance. Determination.>> may only
be used for disposition and replacement of units
described in subparagraph (A), provided that any
replacement housing complies with the Manufactured Home
Construction and Safety Standards or is another allowed
type of home, as determined by the Secretary.
``(d) Priority.--In awarding grants under this section, the
Secretary shall prioritize applicants that will carry out activities
that primarily benefit low- and moderate-income residents and preserve
[[Page 140 STAT. 897]]
long-term housing affordability for residents of eligible manufactured
housing communities.
``(e) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of law or regulation that the Secretary
administers in connection with use of amounts made available under this
section other than requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a finding
that the waiver or alternative requirement is not inconsistent with the
overall purposes of this section and that the waiver or alternative
requirement is necessary to facilitate the use of amounts made available
under this section.
``(f) Implementation.--
``(1) <<NOTE: Criteria. Regulations. Publication. Notification.>>
In general.--Any grant made under this section shall be made
pursuant to criteria for selection of recipients of such grants
that the Secretary shall by regulation establish and publish
together with any notification of availability of amounts under
this section.
``(2) Set-aside of grant amounts.--The Secretary may set
aside amounts provided under this section for grants to Indian
tribes, tribally designated housing entities, and the Department
of Hawaiian Home Lands.
``(g) Sunset.--The program established under this section shall
terminate on the date that is 7 years after the date of enactment of
this section.''.
(b) <<NOTE: 42 USC 5323 note.>> Application.--Grants made under
section 123 of the Housing and Community Development Act of 1974, as
added by subsection (a), after the date of enactment of this Act shall
be carried out using amounts appropriated after the date of enactment of
this Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
SEC. 401. CREATING INCENTIVES FOR SMALL-DOLLAR LOAN ORIGINATORS.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(2) Small-dollar mortgage.--The term ``small-dollar
mortgage'' means a mortgage loan having an original principal
obligation of not more than $100,000 that is--
(A) secured by real property designed for 1 to 4
dwelling units; and
(B)(i) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
(ii) made, guaranteed, or insured by the Department
of Veterans Affairs;
(iii) made, guaranteed, or insured by the Department
of Agriculture; or
(iv) eligible to be purchased or securitized by the
Federal Home Loan Mortgage Corporation or the Federal
National Mortgage Association.
(b) Requirement Regarding Loan Originator Compensation Practices.--
Not <<NOTE: Reports.>> later than 270 days after the date of enactment
of this Act, the Director shall submit to the Committee on Banking,
[[Page 140 STAT. 898]]
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report on loan originator
compensation practices throughout the residential mortgage market,
including the relative frequency of loan originators being compensated--
(1) with a salary;
(2) with a commission reflecting a fixed percentage of the
amount of credit extended;
(3) with a commission based on a factor other than a fixed
percentage of the amount of credit extended;
(4) with a combination of salary and commission;
(5) on a loan volume basis; and
(6) with a commission reflecting a percentage of the amount
of credit extended, for which a minimum or maximum compensation
amount is set.
(c) Community Development Financial Institution Loan Originators.--
In carrying out the report required under subsection (b), the Secretary
shall, in coordination with relevant Federal agencies that regulate
federally backed small-dollar mortgages and in consultation with the
Director of the Community Development Financial Institutions Fund
established under section 104 of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4703), give due
consideration to the practices for compensating loan originators that
are employed by or originate loans on behalf of community development
financial institutions.
(d) Contents.--The report required under subsection (b) shall
include--
(1) data and other analyses regarding the effect of the
approaches to loan originator compensation described in
subsection (b) on the availability of small-dollar mortgage
loans; and
(2) an analysis and a discussion regarding potential
barriers to small-dollar mortgage lending.
SEC. 402. SMALL-DOLLAR MORTGAGE POINTS AND FEES.
(a) Small-dollar Mortgage Defined.--In this section, the term
``small-dollar mortgage'' means a mortgage with an original principal
obligation of less than $100,000.
(b) <<NOTE: Deadline. Evaluation.>> Amendments.--Not later than 270
days after the date of enactment of this Act, the Director of the Bureau
of Consumer Financial Protection, in consultation with the Secretary of
Housing and Urban Development and the Director of the Federal Housing
Finance Agency, shall evaluate the impact of the thresholds under
section 1026.43 of title 12, Code of Federal Regulations (as in effect
on the date of enactment of this Act), on small-dollar mortgage
originations.
SEC. 403. APPRAISAL INDUSTRY IMPROVEMENT ACT.
(a) Appraisal Standards.--
(1) Certification or licensing.--
(A) In general.--Section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)) is amended--
(i) by moving the paragraph two ems to the
left; and
(ii) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) be certified or licensed by the State in which the
property to be appraised is located, except that a Federal
[[Page 140 STAT. 899]]
employee who has as their primary duty conducting appraisal-
related activities and who chooses to become a State-licensed or
certified real estate appraiser need only to be licensed or
certified in 1 State or territory to perform appraisals on
mortgages insured by the Federal Housing Administration in all
States and territories;
``(B) meet the requirements under the competency rule set
forth in the Uniform Standards of Professional Appraisal
Practice before accepting an assignment; and
``(C) have demonstrated verifiable education in the
appraisal requirements established by the Federal Housing
Administration under this subsection, which shall include the
completion of a course or seminar that educates appraisers on
those appraisal requirements, which shall be provided by--
``(i) the Federal Housing Administration; or
``(ii) a third party, if the course is approved by
the Secretary or a State appraiser certifying or
licensing agency.''.
(B) <<NOTE: 12 USC 1708 note.>> Application.--
Subparagraph (C) of section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)), as added by
subparagraph (A), shall not apply with respect to any
certified appraiser approved by the Federal Housing
Administration to conduct appraisals on property
securing a mortgage to be insured by the Federal Housing
Administration on or before the effective date described
in paragraph (3)(C).
(2) Compliance with verifiable education and competency
requirements.-- <<NOTE: 12 USC 1708 note.>> On and after the
effective date described in paragraph (3)(C), no appraiser may
conduct an appraisal on a property securing a mortgage to be
insured by the Federal Housing Administration unless--
(A) the appraiser is in compliance with the
requirements of subparagraphs (A) and (B) of section
202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as amended by paragraph (1); and
(B) if the appraiser was not approved by the Federal
Housing Administration to conduct appraisals on
mortgages insured by the Federal Housing Administration
before the date on which the mortgagee letter or
guidance takes effect under paragraph (3)(C), the
appraiser is in compliance with subparagraph (C) of such
section 202(g)(5).
(3) <<NOTE: Deadline. Guidance. 12 USC 1708
note.>> Implementation.--Not later than the 240 days after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall issue a mortgagee letter or guidance
that--
(A) implements the amendments made by paragraph (1);
(B) clearly sets forth all of the specific
requirements under section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)), as amended by
paragraph (1), for approval to conduct appraisals on
property secured by a mortgage to be insured by the
Federal Housing Administration, which shall include--
(i) providing that, before the effective date
of the mortgagee letter or guidance, compliance
with the requirements under subparagraphs (A),
(B), and (C) of such section 202(g)(5), as amended
by paragraph
[[Page 140 STAT. 900]]
(1), shall be considered to fulfill the
requirements under such subparagraphs; and
(ii) providing a method for appraisers to
demonstrate such prior compliance; and
(C) <<NOTE: Effective date.>> takes effect not
later than the date that is 180 days after the date on
which the Secretary issues the mortgagee letter or
guidance.
(b) Annual Registry Fees for Appraisal Management Companies.--
Section 1109(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter
following clause (ii) of paragraph (4)(B), by adding at the end the
following: <<NOTE: Approval.>> ``Subject to the approval of the
Council, the Appraisal Subcommittee may adjust fees established under
clause (i) or (ii) to carry out its functions under this Act.''.
(c) State Credentialed Trainees.--
(1) Maintenance on national registry.--Section 1103(a) of
the Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 3332(a)) is amended--
(A) in paragraph (3)--
(i) by inserting ``and State credentialed
trainee appraisers'' after ``licensed
appraisers''; and
(ii) by striking ``and'' at the end;
(B) by striking paragraph (4);
(C) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively; and
(D) in paragraph (4), as so redesignated--
(i) by striking ``year. The report shall also
detail'' and inserting ``year, detailing'';
(ii) by striking ``provide'' and inserting
``provides''; and
(iii) by striking the period at the end and
inserting ``; and''.
(2) Annual registry fees.--
(A) In general.--Section 1109 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3338) is amended--
(i) in the section heading, by striking
``certified or licensed'' and inserting ``,
certified, licensed, and credentialed trainee'';
and
(ii) in subsection (a)--
(I) in paragraph (1), by inserting
``, and in the case of a State with a
supervisory or trainee program, a roster
listing individuals who have received a
State trainee credential'' after ``this
title''; and
(II) by striking paragraph (2) and
inserting the following:
``(2) transmit reports on the issuance and renewal of
licenses, certifications, credentials, sanctions, and
disciplinary actions, including license, credential, and
certification revocations, on a timely basis to the national
registry of the Appraisal Subcommittee;''.
(B) <<NOTE: 12 USC 3338 note.>> Rule of
construction.--Nothing in the amendments made by
subparagraph (A) shall require a State to establish or
operate a program for State credentialed trainee
appraisers, as defined in paragraph (12) of section
[[Page 140 STAT. 901]]
1121 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, as added by paragraph (4) of
this subsection.
(3) Transactions requiring the services of a state certified
appraiser.--Section 1113 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is
amended--
(A) by striking ``In determining'' and inserting
``(a) In General.--In determining''; and
(B) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In performing
an appraisal under this section, a State certified appraiser may use the
assistance of a State credentialed trainee appraiser or an unlicensed
trainee appraiser, except that the State certified appraiser assisted by
a trainee shall be liable for appraisal and valuation work.''.
(4) Definition.--Section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350)
is amended by adding at the end the following:
``(12) State credentialed trainee appraiser.--The term
`State credentialed trainee appraiser' means an individual who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser
certifying and licensing agency.''.
(d) Grants for Workforce and Training.--Section 1109(b) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3338(b)) is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies and post-secondary institutions, including
trade and polytechnic schools, to support the carrying out of
education and training activities or other activities related to
addressing appraiser industry workforce needs, including
recruiting and retaining workforce talent, such as through
scholarship assistance and career pipeline development, and such
agencies shall report on the use of funds and outcomes.''.
(e) Appraisal Subcommittee.--Section 1011 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is
amended, in the first sentence, by inserting ``the Department of
Veterans Affairs, the Rural Housing Service of the Department of
Agriculture, the Department of Housing and Urban Development,'' after
``Financial Protection,''.
SEC. 404. HELPING MORE FAMILIES SAVE ACT.
Section 23 of the United States Housing Act of 1937 (42 U.S.C.
1437u) is amended by adding at the end the following:
``(p) Escrow Expansion Pilot Program.--
``(1) Definitions.--In this subsection:
``(A) Covered family.--The term `covered family'
means a family that receives assistance under section 8
or 9 of this Act and is enrolled in the Pilot Program.
[[Page 140 STAT. 902]]
``(B) Eligible entity.--The term `eligible entity'
means an entity described in subsection (c)(2).
``(C) Pilot program.--The term `Pilot Program' means
the Pilot Program established under paragraph (2).
``(D) Welfare assistance.--The term `welfare
assistance' has the meaning given the term in section
984.103 of title 24, Code of Federal Regulations, or any
successor regulation.
``(2) Establishment.--The Secretary may establish a pilot
program under which the Secretary shall select not more than 25
eligible entities to establish and manage escrow accounts for
not more than 5,000 covered families, in accordance with this
subsection.
``(3) Escrow accounts.--
``(A) In general.--An eligible entity selected to
participate in the Pilot Program--
``(i) shall establish an interest-bearing
escrow account and place into the account an
amount equal to any increase in the amount of rent
paid by each covered family in accordance with the
provisions of section 3, 8(o), or 8(y), as
applicable, that is attributable to increases in
earned income by the covered families during the
participation of each covered family in the Pilot
Program; and
``(ii) notwithstanding any other provision of
law, may use funds it controls under section 8 or
9 for purposes of making the escrow deposit for
covered families assisted under, or residing in
units assisted under, section 8 or 9,
respectively, provided such funds are offset by
the increase in the amount of rent paid by the
covered family.
``(B) Income limitation.--An eligible entity may not
escrow any amounts for any covered family whose adjusted
income exceeds 80 percent of the area median income at
the time of enrollment.
``(C) <<NOTE: Time periods.>> Withdrawals.--A
covered family may withdraw funds, including interest
earned, from an escrow account established by an
eligible entity under the Pilot Program--
``(i) after the covered family ceases to
receive welfare assistance; and
``(ii)(I) not earlier than the date that is 5
years after the date on which the eligible entity
establishes the escrow account under this
subsection;
``(II) <<NOTE: Deadline.>> not later than the
date that is 7 years after the date on which the
eligible entity establishes the escrow account
under this subsection, if the covered family
chooses to continue to participate in the Pilot
Program after the date that is 5 years after the
date on which the eligible entity establishes the
escrow account;
``(III) on the date the covered family ceases
to receive housing assistance under section 8 or
9, if such date is earlier than 5 years after the
date on which the eligible entity establishes the
escrow account;
``(IV) earlier than 5 years after the date on
which the eligible entity establishes the escrow
account, if
[[Page 140 STAT. 903]]
the covered family is using the funds to advance a
self-sufficiency goal as approved by the eligible
entity;
``(V) for any reason listed under section
984.303(k) of title 24, Code of Federal
Regulations; or
``(VI) <<NOTE: Determination.>> under other
circumstances in which the Secretary determines an
exemption for good cause is warranted.
``(D) <<NOTE: Determination. Time
period. Approval.>> Interim recertification.--For
purposes of the Pilot Program, a covered family may
recertify the income of the covered family multiple
times per year at the request of the participating
family, as determined by the Secretary, and not less
frequently than once per year, unless the eligible
entity has established an alternative rent structure
with approval from the Secretary.
``(E) Contract or plan.--A covered family is not
required to complete a standard contract of
participation or an individual training and services
plan in order to participate in the Pilot Program.
``(4) Effect of increases in family income.--Any increase in
the earned income of a covered family during the enrollment of
the family in the Pilot Program may not be considered as income
or a resource for purposes of eligibility of the family for
other benefits, or amount of benefits payable to the family,
under any program administered by the Secretary.
``(5) Application.--
``(A) In general.--An eligible entity seeking to
participate in the Pilot Program shall submit to the
Secretary an application--
``(i) <<NOTE: Notice.>> at such time, in such
manner, and containing such information as the
Secretary may require by notice; and
``(ii) that includes the number of proposed
covered families to be served by the eligible
entity under this subsection.
``(B) Geographic and entity variety.--The Secretary
shall ensure that eligible entities selected to
participate in the Pilot Program--
``(i) <<NOTE: Urban and rural areas.>> are
located across various States and in both urban
and rural areas; and
``(ii) vary by size and type, including both
public housing agencies and private owners of
projects receiving project-based rental assistance
under section 8.
``(6) Notification and opt-out.--An eligible entity
participating in the Pilot Program shall--
``(A) notify covered families of their enrollment in
the Pilot Program;
``(B) provide covered families with a detailed
description of the Pilot Program, including how the
Pilot Program will impact their rent and finances;
``(C) inform covered families that the families
cannot simultaneously participate in the Pilot Program
and the Family Self-Sufficiency program under this
section; and
``(D) provide covered families with the ability to
elect not to participate in the Pilot Program--
[[Page 140 STAT. 904]]
``(i) <<NOTE: Time period.>> not less than 2
weeks before the date on which the escrow account
is established under paragraph (3); and
``(ii) at any point during the duration of the
Pilot Program.
``(7) Maximum rents.--During the term of participation by a
covered family in the Pilot Program, the amount of rent paid by
the covered family shall be calculated under the rental
provisions of section 3 or 8(o), as applicable.
``(8) <<NOTE: Deadlines.>> Pilot program timeline.--
``(A) Awards.--Not later than 1 year after
establishing the Pilot Program, the Secretary shall
select the eligible entities to participate in the Pilot
Program.
``(B) Establishment and term of accounts.--An
eligible entity selected to participate in the Pilot
Program shall--
``(i) not later than 6 months after selection,
establish escrow accounts under paragraph (3) for
covered families; and
``(ii) <<NOTE: Time
period. Determination. Deadline.>> maintain those
escrow accounts for not less than 5 years, or
until a determination is made for termination with
FSS escrow disbursement under section 984.303(k)
of title 24, Code of Federal Regulations, or until
the date the family ceases to receive assistance
under section 8 or 9, and, at the discretion of
the covered family, not more than 7 years after
the date on which the escrow account is
established.
``(9) Nonparticipation and housing assistance.--
``(A) In general.--Assistance under section 8 or 9
for a family that elects not to participate in the Pilot
Program shall not be delayed or denied by reason of such
election.
``(B) No termination.--Housing assistance may not be
terminated as a consequence of participating, or not
participating, in the Pilot Program under this
subsection for any period.
``(10) <<NOTE: Reports.>> Study.--Not later than 10 years
after the date the Secretary selects eligible entities to
participate in the Pilot Program under this subsection, the
Secretary shall, if awards were made, conduct a study and submit
to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives a report on outcomes for covered families under
the Pilot Program, which shall evaluate the effectiveness of the
Pilot Program in assisting families to achieve economic
independence and self-sufficiency, and the impact coaching and
supportive services, or the lack thereof, had on individual
incomes.
``(11) Waivers.--To allow selected eligible entities to
effectively administer the Pilot Program and make the required
escrow account deposits under this subsection, the Secretary may
waive requirements under this section.
``(12) Termination.--The Pilot Program under this subsection
shall terminate on the date that is 10 years after the date of
enactment of this subsection.
``(13) Eligible uses of appropriations.--Subject to the
appropriation of funds, the Secretary may use funds--
[[Page 140 STAT. 905]]
``(A) for technical assistance related to
implementation of the Pilot Program; and
``(B) <<NOTE: Evaluation.>> to carry out an
evaluation of the Pilot Program under paragraph (10).''.
SEC. 405. CHOICE IN AFFORDABLE HOUSING ACT.
(a) Satisfaction of Inspection Requirements Through Participation in
Other Housing Programs.--Section 8(o)(8) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended by adding at the end the
following:
``(I) <<NOTE: Time period.>> Satisfaction of
inspection requirements through participation in other
housing programs.--
``(i) Low-income housing tax credit-financed
buildings.--A dwelling unit shall be deemed to
meet the inspection requirements under this
paragraph if--
``(I) the dwelling unit is in a
building, the acquisition,
rehabilitation, or construction of which
was done by a building owner who may be
eligible for low-income housing credits
because the building had been allocated
a housing credit dollar amount under
section 42(h) of the Internal Revenue
Code of 1986 or is described in section
42(h)(4) of such Code (concerning
buildings that meet a criterion for a
certain amount of tax-exempt financing);
``(II) the dwelling unit, during the
preceding 12-month period, was
physically inspected and satisfied the
suitability-for-occupancy requirement in
section 42(i)(3)(B)(ii) of such Code;
and
``(III) the applicable public
housing agency performed the inspection
itself or is able to obtain the results
of the inspection described in subclause
(II).
``(ii) Home investment partnerships program.--
A dwelling shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is assisted
under the HOME Investment Partnerships
Program under title II of the Cranston-
Gonzalez National Affordable Housing Act
(42 U.S.C. 12721 et seq.);
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the program
described in subclause (I) during the
preceding 12-month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iii) Rural housing service.--A dwelling
unit shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is assisted
by the Rural Housing Service of the
Department of Agriculture;
``(II) the dwelling unit was
physically inspected and passed
inspection in connection with the
assistance described in subclause (I)
during the preceding 12-month period;
and
[[Page 140 STAT. 906]]
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iv) Remote or video inspections.--When
complying with inspection requirements for a
housing unit located in a rural or small area
using assistance under this section, the Secretary
may allow a grantee to conduct a remote or video
inspection of a unit if the remote or video
inspection--
``(I) is thorough;
``(II) does not misrepresent the
condition of the unit; and
``(III) provides the information
necessary to fully and accurately
evaluate the conditions of the unit to
ensure that the unit meets the relevant
standards.
``(v) Rule of construction.--Nothing in clause
(i), (ii), (iii), or (iv) shall be construed to
affect the operation of a housing program
described in, or authorized under a provision of
law described in, that clause.''.
(b) Pre-approval of Units.--Section 8(o)(8)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at
the end the following:
``(iv) Initial inspection prior to lease
agreement.--
``(I) Definition.--In this clause,
the term `new landlord' means an owner
of a dwelling unit who has not
previously entered into a housing
assistance payment contract with a
public housing agency under this
subsection for any dwelling unit.
``(II) <<NOTE: Determination.>>
Early inspection.--Upon the request of a
new landlord, a public housing agency
may inspect the dwelling unit owned by
the new landlord to determine whether
the unit meets the housing quality
standards under subparagraph (B) before
the unit is selected by a tenant
assisted under this subsection.
``(III) <<NOTE: Contracts. Deadline.>> Ef
fect.--An inspection conducted under
subclause (II) that determines that the
dwelling unit meets the housing quality
standards under subparagraph (B) shall
satisfy this subparagraph and
subparagraph (C) if the new landlord
enters into a lease agreement with a
tenant assisted under this subsection
not later than 60 days after the date of
the inspection.
``(IV) Information when family is
selected.--When <<NOTE: List.>> a
public housing agency selects a family
to participate in the tenant-based
assistance program under this
subsection, the public housing agency
shall include in the information
provided to the family a list of
dwelling units that have been inspected
under subclause (II) and determined to
meet the housing quality standards under
subparagraph (B).''.
[[Page 140 STAT. 907]]
TITLE V--PROGRAM REFORM
SEC. 501. HOME INVESTMENT PARTNERSHIPS REAUTHORIZATION AND REFORM
ACT.
(a) Authorization.--Section 205 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows:
``SEC. 205. AUTHORIZATION OF PROGRAM.
``The HOME Investment Partnerships Program under subtitle A is
hereby authorized.''.
(b) Definition of Community Housing Development Organization.--
Section 104(6)(B) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12704(6)(B)) is amended by striking ``significant''.
(c) <<NOTE: Determinations.>> Assistance for Low-income Families.--
Title II of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12721 et seq.) is amended--
(1) <<NOTE: 42 USC 12744.>> in section 214(2) (42 U.S.C.
12742(2)), by striking ``households that qualify as low-income
families'' and inserting ``families with a household income that
does not exceed 100 percent of the median family income of the
area, as determined by the Secretary''; and
(2) in section 271(c) (42 U.S.C. 12821(c))--
(A) in paragraph (1)(B), by striking ``low-income''
and inserting ``families with a household income that
does not exceed 100 percent of the median family income
of the area as determined by the Secretary with
adjustments for smaller and larger families''; and
(B) in paragraph (2)(A), by striking ``low-income
families'' and inserting ``families with a household
income that does not exceed 100 percent of the median
family income of the area as determined by the Secretary
with adjustments for smaller and larger families''.
(d) Choices Made by Participating Jurisdictions.--Section 212(a)(2)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(a)(2)) is amended to read as follows:
``(2) Limitation.--The Secretary may not restrict the choice
by a participating jurisdiction of rehabilitation, substantial
rehabilitation, new construction, reconstruction, acquisition,
or other eligible housing uses authorized in paragraph (1)
unless the restriction is explicitly authorized under section
223(2).''.
(e) Use of Amounts by Certain Jurisdictions for Infrastructure
Improvements.--
(1) In general.--Section 212(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(a)) is amended
by inserting after paragraph (3) the following:
``(4) Infrastructure improvements in nonentitlement areas.--
``(A) In general.--A participating jurisdiction may
use funds provided under this subtitle for
infrastructure improvements, including the installation
or repair of water and sewer lines, sidewalks, roads,
and utility connections if--
[[Page 140 STAT. 908]]
``(i) such participating jurisdiction does not
receive assistance under title I of the Housing
and Community Development Act of 1974 (42 U.S.C.
5310); and
``(ii) such improvements are directly related
to, and located within or immediately adjacent
to--
``(I) housing assisted under this
subtitle; or
``(II) housing assisted under
section 42 of the Internal Revenue Code
of 1986.
``(B) Application of labor standards.--The labor
standards and requirements set forth in section 110 of
the Housing and Community Development Act of 1974 (42
U.S.C. 5310) shall apply to any infrastructure
improvement conducted using funds provided under this
subtitle.
``(C) Rule of construction.--Nothing in this
paragraph may be construed to impose any requirements of
the HOME Investment Partnerships program on housing that
benefits from an infrastructure improvement conducted
using funds provided under this subtitle but was not
otherwise assisted under the HOME Investment
Partnerships program.''.
(2) <<NOTE: Deadline. 42 USC 12742 note.>> Rulemaking.--Not
later than 1 year after the date of enactment of this Act, the
Secretary of Housing and Urban Development shall issue rules to
carry out the amendment made by paragraph (1).
(f) Per Unit Investment Limitations.--Section 212(e)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(e)(1)) is amended by striking the second sentence.
(g) Affordable Rental Housing Qualifications.--Section 215(a) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a))
is amended by adding at the end the following:
``(7) Qualification exception.--Notwithstanding paragraph
(1)(A), a rental unit shall be considered to qualify as
affordable housing under this title if--
``(A) the unit is occupied by a tenant receiving
tenant-based rental assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f);
``(B) the contribution of the tenant toward rent
does not exceed the amount permitted under the
assistance described in subparagraph (A); and
``(C) the total rent for the unit does not exceed
the amount approved by the public housing agency
administering the assistance described in subparagraph
(A).''.
(h) <<NOTE: Determinations.>> Affordable Home-ownership Housing
Qualifications.--Section 215 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12745) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating subparagraphs
(A), (B), and (C) as clauses (i), (ii), and (iii),
respectively, and adjusting the margins accordingly;
(B) in paragraph (3)--
(i) in subparagraph (A), by redesignating
clauses (i) and (ii) as subclauses (I) and (II),
respectively, and adjusting the margins
accordingly; and
(ii) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively, and
adjusting the margins accordingly;
[[Page 140 STAT. 909]]
(C) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and
adjusting the margins accordingly;
(D) by striking ``Housing that is for home-
ownership'' and inserting the following:
``(1) Qualification.--Housing that is for home-ownership'';
(E) in paragraph (1), as so designated--
(i) in subparagraph (A), as so redesignated--
(I) by striking ``95 percent'' and
inserting ``110 percent''; and
(II) by inserting ``(defined as the
amount borrowed by the homebuyer to
purchase the home, or the estimated
value after rehabilitation, which may be
adjusted to account for the limits on
future value imposed by the resale
restriction)'' after ``purchase price'';
(ii) in subparagraph (B), as so redesignated,
in the matter preceding clause (i), by striking
``whose family qualifies as a low-income family''
and inserting ``with a family income that does not
exceed 100 percent of the median family income of
the area as determined by the Secretary with
adjustments for smaller and larger families'';
(iii) in subparagraph (C), as so
redesignated--
(I) in clause (i)(II)--
(aa) by striking ``low-
income home-buyers'' and
inserting ``home-buyers with a
household income that does not
exceed 100 percent of the median
family income of the area, as
determined by the Secretary with
adjustments for smaller and
larger families''; and
(bb) by striking ``or'' at
the end;
(II) in clause (ii), by striking
``and'' at the end and inserting ``or'';
and
(III) by adding at the end the
following:
``(iii) maintain long-term affordability
through a shared equity ownership model, a
community land trust, a limited equity
cooperative, a community development corporation,
or other mechanism approved by the Secretary, that
preserves affordability for future eligible home-
buyers and ensures compliance with the purposes of
this title, including through the use of purchase
options, rights of first refusal, or other
preemptive rights to purchase housing;'';
(iv) in subparagraph (D), as so redesignated,
by striking the period at the end and inserting
``; and''; and
(v) by adding at the end the following:
``(E) is subject to restrictions that are
established by the participating jurisdiction and
determined by the Secretary to be appropriate, including
with respect to the useful life of the property, to--
``(i) require that any subsequent purchase of
the property be--
``(I) only by a person who meets the
qualifications specified under
subparagraph (B); and
[[Page 140 STAT. 910]]
``(II) at a price that is determined
by a formula or method established by
the participating jurisdiction that
provides the owner with a reasonable
return on investment, which may include
a percentage of the cost of any
improvements; or
``(ii) recapture the investment provided under
this title in order to assist other persons in
accordance with the requirements of this title,
except where there are no net proceeds or where
the net proceeds are insufficient to repay the
full amount of the assistance.''; and
(F) by adding at the end the following:
``(2) Purchase by community land trust or cooperative
housing corporation.--Notwithstanding subparagraph (C)(i) of
paragraph (1) and under terms determined by the Secretary, the
Secretary may permit a participating jurisdiction to allow a
community land trust, housing cooperative, or a community
development corporation that used assistance provided under this
subtitle for the development of housing that meets the criteria
under paragraph (1), to acquire the housing--
``(A) in accordance with the terms of the preemptive
purchase option, lease, covenant on the land, or other
similar legal instrument of the community land trust or
housing cooperative when the terms and rights in the
preemptive purchase option, lease, covenant, or legal
instrument are and remain subject to the requirements of
this title;
``(B) when the purchase is for--
``(i) the purpose of--
``(I) entering into the chain of
title;
``(II) enabling a purchase by a
person who meets the qualifications
specified under paragraph (1)(B) and is
on a waitlist maintained by the
community land trust or housing
cooperative, subject to enforcement by
the participating jurisdiction of all
applicable requirements of this title,
as determined by the Secretary;
``(III) performing necessary
rehabilitation and improvements; or
``(IV) adding a subsidy to preserve
affordability, which may be from Federal
or non-Federal sources; or
``(ii) another purpose determined appropriate
by the Secretary; and
``(C) if, within a reasonable period of time after
the applicable purpose under subparagraph (B) of this
paragraph is fulfilled, as determined by the Secretary,
the housing is then sold to a person who meets the
qualifications specified under paragraph (1)(B).''; and
(2) by adding at the end the following:
``(c) Qualification Exceptions for Home-ownership.--
``(1) <<NOTE: Waiver authority.>> Military members.--A
participating jurisdiction, in accordance with terms established
by the Secretary, may suspend or waive the income qualifications
described in subsection (b)(1)(B) with respect to housing that
otherwise meets the criteria described in subsection (b)(1) if
the owner of the housing--
[[Page 140 STAT. 911]]
``(A) is a member of a regular component of the
armed forces or a member of the National Guard on full-
time National Guard duty, active Guard and Reserve duty,
or inactive-duty training (as those terms are defined in
section 101 of title 10, United States Code); and
``(B) has received--
``(i) <<NOTE: Determination. Time
period.>> temporary duty orders to deploy with a
military unit or military orders to deploy as an
individual acting in support of a military
operation, to a location that is not within a
reasonable distance from the housing, as
determined by the Secretary, for a period of not
less than 90 days; or
``(ii) orders for a permanent change of
station.
``(2) Heirs and beneficiaries of deceased owners.--Housing
that meets the criteria described in subsection (b)(1)(C) prior
to the death of an owner of such housing shall continue to
qualify as affordable housing under this title if--
``(A) the housing is the principal residence of an
heir or beneficiary of the deceased owner, as defined by
the Secretary; and
``(B) the heir or beneficiary, in accordance with
terms established by the Secretary, assumes the duties
and obligations of the deceased owner with respect to
funds provided under this title.''.
(i) Elimination of Expiration of Right to Draw Home Investment Trust
Funds.--Section 218 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12748) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(j) Adjusted Recapture and Reuse of Set-aside for Community Housing
Developmental Organizations.--Section 231(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771(b)) is amended to read
as follows:
``(b) <<NOTE: Time period.>> Recapture and Reuse.--If any funds
reserved under subsection (a) remain uninvested for a period of 24
months, the Secretary shall make such funds available to the
participating jurisdiction for any eligible activities under this title
without regard to whether a community housing development organization
materially participates in the use of such funds.''.
(k) Asset Recycling Information Dissemination Expansion.--Section
245(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12785(b)(2)) is amended by striking ``95 percent'' and inserting
``110 percent''.
(l) Environmental Review Requirements.--
(1) In general.--Section 288 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12838) is amended by
adding at the end the following:
``(e) Categorical Exemptions.--The following categories of
activities carried out under this title shall be statutorily exempt from
environmental review under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), and shall not require further review under
such Act:
``(1) New construction infill housing projects.
``(2) Acquisition of real property for affordable housing
purposes.
``(3) Rehabilitation projects carried out pursuant to
section 212(a)(1).
[[Page 140 STAT. 912]]
``(4) New construction projects of 15 units or less.
``(f) Removing Duplicative Reviews.--
``(1) In general.--To the extent practicable and permitted
by law, the Secretary shall ensure that a project that has
undergone an environmental review under this section shall not
be subject to a duplicative environmental review solely due to
the addition, substitution, or reallocation of other sources of
Federal assistance, if the scope, scale, and location of the
project remain substantially unchanged.
``(2) Coordination of environmental review
responsibilities.--The <<NOTE: Regulations.>> Secretary shall,
by regulation, provide for coordination of environmental review
responsibilities with other Federal agencies to streamline
interagency compliance and avoid unnecessary duplication of
effort under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) and other applicable laws.
``(3) Recognition of prior reviews by responsible
entities.--A project <<NOTE: Determination.>> may not be
subject to an environmental review under this section if a
substantially similar review has already been completed by an
entity designated under section 104(g)(1) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304(g)(1)) or by
another entity the Secretary determines to have equivalent
authority, if the scope, scale, and location of the project
remain substantially unchanged.''.
(2) <<NOTE: Deadline. 42 USC 12838 note.>> Rulemaking.--Not
later than 1 year after the date of the enactment of this Act,
the Secretary shall issue such rules as the Secretary determines
necessary to carry out the amendment made by this subsection.
(3) <<NOTE: 42 USC 12838 note.>> Applicability.--Any
activity generated under this subsection would be subject to an
authorization of appropriations.
(4) Definition.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) is amended by
striking paragraph (25) and inserting the following:
``(25) The term `infill housing project' means a residential
housing project that--
``(A) is located within the geographic limits of a
municipality;
``(B) is adequately served by existing utilities and
public services as required under applicable law;
``(C) is located on a site of previously disturbed
land of not more than 5 acres; and
``(D) is substantially surrounded by residential or
commercial development, as determined by the
Secretary.''.
(m) <<NOTE: Deadlines. 42 USC 12721 note.>> Application of Build
America, Buy America Requirements for Home Investment Partnerships
Program.--
(1) <<NOTE: Review.>> In general.--Not later than 180 days
after the date of enactment of this Act, the Secretary of
Housing and Urban Development (in this subsection referred to as
the ``Secretary'') shall complete a review of the implementation
of the Build America, Buy America Act (title IV of division G of
Public Law 117-58; 42 U.S.C. 8301 note) with respect to the
activities assisted under title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et seq.).
(2) Updated guidance.--Not later than 90 days after the
review described in subsection (a) is completed, the Secretary
shall issue updated guidance to clarify the application of the
Build America, Buy America Act (title IV of division G of
[[Page 140 STAT. 913]]
Public Law 117-58; 42 U.S.C. 8301 note) with respect to the
activities assisted under title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et seq.).
(3) Report.--Not later than 270 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate a report that describes--
(A) the results of the review required under
subsection (a); and
(B) the guidance issued as described in subsection
(b).
(n) Application of Other Specified Statutory Requirements.--Title II
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721 et seq.) is amended by adding at the end the following:
``SEC. 291. <<NOTE: 42 USC 12841.>> NONAPPLICABILITY OF CERTAIN
REQUIREMENTS FOR SMALL PROJECTS.
``Notwithstanding any other provision of law, the requirements of
section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701u), and any implementing regulations or guidance, shall not apply to
an activity assisted under this title that involves rehabilitation,
construction, or other development of housing if--
``(1) the recipient of assistance under this title is--
``(A) a State recipient pursuant to section 216; or
``(B) a participating jurisdiction that received a
total allocation of less than $3,000,000 in the most
recent fiscal year pursuant to section 216; and
``(2) the total number of dwelling units assisted as a part
of such activity is not more than 50.''.
(o) Reallocation Not Available for Certain Jurisdictions.--Section
217(d) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12747(d)) is amended--
(1) in paragraph (1), by striking the second sentence and
inserting the following: ``Subject to paragraph (4),
jurisdictions eligible for such reallocations shall include
participating jurisdictions and jurisdictions meeting the
requirements of this title, including the requirements in
paragraphs (3), (4), and (5) of section 216.''; and
(2) by adding at the end the following:
``(4) Reallocation not available for certain
jurisdictions.--The Secretary may decline to make a reallocation
available to a jurisdiction eligible for such reallocation if
such jurisdiction has failed to meet or comply with any
requirement under this title.''.
(p) <<NOTE: Determinations.>> Amendments to Qualification as
Affordable Housing.--Section 215(a)(1)(E) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745(a)) is amended by
striking ``except upon a foreclosure by a lender (or upon other transfer
in lieu of foreclosure) if such action (i) recognizes any contractual or
legal rights of public agencies, nonprofit sponsors, or others to take
actions that would avoid termination of low-income affordability in the
case of foreclosure or transfer in lieu of foreclosure, and (ii) is not
for the purpose of avoiding low-income affordability restrictions, as
determined by the Secretary; and'' and inserting the following:
``except--
[[Page 140 STAT. 914]]
``(i) upon a foreclosure by a lender (or upon
other transfer in lieu of foreclosure) if such
action--
``(I) recognizes any contractual or
legal rights of public agencies,
nonprofit sponsors, or others to take
actions that would avoid termination of
low-income affordability in the case of
foreclosure or transfer in lieu of
foreclosure; and
``(II) is not for the purpose of
avoiding low-income affordability
restrictions, as determined by the
Secretary; or
``(ii) where existing affordable housing is no
longer financially viable due to unforeseen acts
or occurrences beyond the reasonable contemplation
or control of the participating jurisdiction in
which the affordable housing is located or the
owner of the affordable housing that significantly
impact the financial or physical condition of the
affordable housing, as determined by the
Secretary; and''.
(q) Tenant and Participant Protections for Affordable Housing.--
Section 225 of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12755) is amended by adding at the end the following:
``(e) <<NOTE: Compliance.>> Exception.--Paragraphs (2), (3), and
(4) of subsection (d) shall not apply to housing under this section that
meets the following criteria:
``(1) The housing is affordable housing with not more than 4
dwelling units, each of which is made available for rental.
``(2) Each dwelling unit in the housing bears rent in an
amount that complies with the requirements described in
paragraph (1)(A).
``(3) Each dwelling unit in the housing is accompanied by a
low-income family.
``(4) No dwelling in the housing is refused for leasing to a
holder of a voucher under section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f) because of the status of the
prospective tenant as a holder of that voucher.
``(5) The housing complies with the requirement described in
paragraph (1)(E).
``(6) <<NOTE: Determination.>> The participating
jurisdiction in which the housing is located monitors the
compliance of the housing with the requirements of this title in
a manner consistent with the purposes of section 226(b), as
determined by the Secretary.''.
(r) Revision of Definition of Community Land Trust.--Section 104 of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704),
as amended by subsection (l)(4), is amended by adding at the end the
following:
``(26) The term `community land trust' means a nonprofit
entity, a State, a unit of local government, or an
instrumentality of a State or unit of local government that--
``(A) is not managed by, or an affiliate of, a for
profit organization;
``(B) has as a primary purpose of acquiring,
developing, or holding land to provide housing that is
permanently affordable to low- and moderate-income
persons;
``(C) monitors properties to ensure affordability is
preserved;
[[Page 140 STAT. 915]]
``(D) provides housing that is permanently
affordable to low- and moderate-income persons using a
ground lease, deed covenant, or other similar legally
enforceable measure, determined acceptable by the
Secretary, that--
``(i) keeps housing affordable to low- and
moderate-income persons for not less than 30
years; and
``(ii) enables low- and moderate-income
persons to rent or purchase the housing for home-
ownership; and
``(E) maintains preemptive purchase options to
purchase the property if such purchase would allow the
housing to remain affordable to low-and moderate-income
persons.''.
(s) <<NOTE: Determination.>> Set-aside for Community Housing
Development Organizations.--Section 231(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771(a)) is amended, in the
first sentence, by striking ``to be developed, sponsored, or owned by
community housing development organizations'' and inserting ``when a
community housing development organization materially participates in
the ownership or development of that housing, as determined by the
Secretary''.
(t) Administrative Reforms.--
(1) Increase in program administration resources.--Section
220(b) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12750(b)) is amended--
(A) by striking paragraph (2);
(B) by striking ``Recognition.--'' and all that
follows through ``A contribution'' and inserting
``Recognition.--A contribution''; and
(C) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and adjusting the
margins accordingly.
(2) Modification of jurisdictions eligible for
reallocations.--Section 217(d)(3) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747(d)(3)) is
amended--
(A) in the paragraph heading, by striking
``Limitation'' and inserting ``Limitations''; and
(B) by striking ``Unless otherwise specified'' and
inserting the following:
``(A) Removal of participating jurisdictions from
reallocation.--The Secretary may, upon a finding that
the participating jurisdiction has failed to meet or
comply with the requirements of this title, remove a
participating jurisdiction from participation in
reallocations of funds made available under this title.
``(B) Reallocation to same type of entity.--Unless
otherwise specified''.
(3) Home property inspections.--Section 226(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12756(b)) is amended--
(A) by striking ``Each participating jurisdiction''
and inserting the following:
``(1) In general.--Each participating jurisdiction''; and
(B) by striking ``Such review shall include'' and
all that follows and inserting the following:
``(2) Onsite inspections.--
[[Page 140 STAT. 916]]
``(A) Inspections by units of general local
government.--A review conducted under paragraph (1) by a
participating jurisdiction that is a unit of general
local government shall include an onsite inspection to
determine compliance with housing codes and other
applicable regulations.
``(B) <<NOTE: Determination.>> Inspections by
states.--A review conducted under paragraph (1) by a
participating jurisdiction that is a State shall include
an onsite inspection to determine compliance with a
national standard as determined by the Secretary.
``(3) <<NOTE: Public information.>> Inclusion in performance
report and publication.--A participating jurisdiction shall
include in the performance report of the participating
jurisdiction submitted to the Secretary under section 108(a),
and make available to the public, the results of each review
conducted under paragraph (1).''.
(4) Revisions to strengthen enforcement and penalties for
noncompliance.--Section 223 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12753) is amended--
(A) in the section heading, by striking ``penalties
for misuse of funds'' and inserting ``program
enforcement and penalties for noncompliance'';
(B) in the matter preceding paragraph (1), by
inserting after ``any provision of this subtitle'' the
following: ``, including any provision applicable
throughout the period required by section 215(a)(1)(E)
and applicable regulations,'';
(C) in paragraph (2), by striking ``or'' at the end;
(D) in paragraph (3), by striking the period at the
end and inserting ``; or''; and
(E) by adding at the end the following:
``(4) reduce payments to the participating jurisdiction
under this subtitle by an amount equal to the amount of such
payments that were not expended by the participating
jurisdiction in accordance with this title.''.
(u) Minimum Allocations.--Section 217(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747 (b)) is amended--
(1) in paragraph (2), by striking ``$500,000'' each place
that term appears and inserting ``$750,000'';
(2) in paragraph (3)--
(A) by striking ``jurisdictions that are allocated
an amount of $500,000 or more'' and inserting
``jurisdictions that are allocated an amount of $750,000
or more'';
(B) by striking ``that are allocated an amount less
than $500,000'' and inserting ``that are allocated an
amount less than $500,000 before the date of enactment
of the 21st Century ROAD to Housing Act or less than
$750,000 on or after the date of enactment of the 21st
Century ROAD to Housing Act''; and
(C) by striking ``, except as provided in paragraph
(4)''; and
(3) by striking paragraph (4).
[[Page 140 STAT. 917]]
(v) Technical and Conforming Amendments.--The Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) <<NOTE: 42 USC 12705, 12706, 12839.>> by striking
``Stewart B. McKinney Homeless Assistance Act'' each place that
term appears and inserting ``McKinney-Vento Homeless Assistance
Act'';
(2) <<NOTE: 42 USC 12710, 12747, 12833.>> by striking
``Committee on Banking, Finance and Urban Affairs'' each place
that term appears and inserting ``Committee on Financial
Services'';
(3) in the table of contents in section 1(b) (Public Law
101-625; 104 Stat. 4079)--
(A) by striking the item relating to section 205 and
inserting the following:
``Sec. 205. Authorization of program.'';
(B) by striking the item relating to section 223 and
inserting the following:
``Sec. 223. Program enforcement and penalties for noncompliance.''; and
(C) by inserting after the item relating to section
290 the following:
``Sec. 291. Nonapplicability of certain requirements for small
projects.'';
(4) in section 104 (42 U.S.C. 12704)--
(A) by redesignating paragraph (23) (relating to the
definition of the term ``to demonstrate to the
Secretary'') as paragraph (22); and
(B) by redesignating paragraph (24) (relating to the
definition of the term ``insular area'', as added by
section 2(2) of Public Law 102-230) as paragraph (23);
(5) in section 105(b)(8) (42 U.S.C. 12705(b)(8)), by
striking ``subparagraphs'' and inserting ``paragraphs'';
(6) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by
striking ``section 105(b)(15)'' and inserting ``section
105(b)(18)'';
(7) in section 212 (42 U.S.C. 12742)--
(A) in subsection (a)(3)(A)(ii), by inserting
``United States'' before ``Housing Act'';
(B) in subsection (d)(5), by inserting ``United
States'' before ``Housing Act''; and
(C) in subsection (e)(1)--
(i) by striking ``section 221(d)(3)(ii)'' and
inserting ``section 221(d)(4)''; and
(ii) by striking ``not to exceed 140 percent''
and inserting ``as determined by the Secretary'';
(8) in section 215(a)(6)(B) (42 U.S.C. 12745(a)(6)(B)), by
striking ``grand children'' and inserting ``grandchildren'';
(9) in section 217 (42 U.S.C. 12747)--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(3)'' and
inserting ``(2)'';
(ii) by striking paragraph (3), as added by
section 211(a)(2)(D) of the Housing and Community
Development Act of 1992 (Public Law 102-550; 106
Stat. 3756); and
(iii) by redesignating the remaining paragraph
(3), as added by the matter under the heading
``home investment partnerships program'' under the
[[Page 140 STAT. 918]]
heading ``Housing Programs'' in title II of the
Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies
Appropriations Act, 1993 (Public Law 102-389; 106
Stat. 1581), as paragraph (2); and
(B) in subsection (b)(1)--
(i) in subparagraph (A), in the first
sentence--
(I) by striking ``in regulation''
and inserting ``, by regulation,''; and
(II) by striking ``eligible
jurisdiction'' and inserting ``eligible
jurisdictions''; and
(ii) in subparagraph (F), in the first
sentence--
(I) in clause (i), by striking
``Subcommittee on Housing and Urban
Affairs'' and inserting ``Subcommittee
on Housing, Transportation, and
Community Development''; and
(II) in clause (ii), by striking
``Subcommittee on Housing and Community
Development of the Committee on Banking,
Finance and Urban Affairs'' and
inserting ``Subcommittee on Housing and
Insurance of the Committee on Financial
Services'';
(10) in section 220(c) (42 U.S.C. 12750(c))--
(A) in paragraph (3), by striking ``Secretary'' and
all that follows and inserting ``Secretary;'';
(B) in paragraph (4), by striking ``under this
title'' and all that follows and inserting ``under this
title;''; and
(C) by redesignating paragraphs (6), (7), and (8) as
paragraphs (5), (6), and (7), respectively;
(11) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by
striking ``for'' the first place that term appears; and
(12) in section 233 (42 U.S.C. 12773)--
(A) in subsection (b)(6), by striking ``to community
land trusts (as such term is defined in subsection
(f))'' and inserting ``to community land trusts (as such
term is defined in section 104)''; and
(B) by striking subsection (f).
SEC. 502. RURAL HOUSING SERVICE REFORM ACT.
(a) Application of Multifamily Mortgage Foreclosure Procedures to
Multifamily Mortgages Held by the Secretary of Agriculture and
Preservation of the Rental Assistance Contract Upon Foreclosure.--
(1) Multifamily mortgage procedures.--Section 363(2)(F) of
the Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C.
3702(2)) is amended--
(A) by striking ``or 515'' and inserting ``515, or
538''; and
(B) by inserting ``, 1490p-2'' after ``1485''.
(2) Preservation of contract.--Section 521(d) of the Housing
Act of 1949 (42 U.S.C. 1490a(d)) is amended by adding at the end
the following:
``(3) Notwithstanding any other provision of law, in managing and
disposing of any multifamily property that is owned or has a mortgage
held by the Secretary, and during the process of foreclosure on any
property with a contract for rental assistance under this section--
[[Page 140 STAT. 919]]
``(A) the Secretary shall maintain any rental assistance
payments that are attached to any dwelling units in the
property; and
``(B) the rental assistance contract may be used to provide
further assistance to existing projects under 514, 515, or
516.''.
(b) Study on Rural Housing Loans for Housing for Low- and Moderate-
income Families.--Not <<NOTE: Public information. Reports.>> later than
6 months after the date of enactment of this Act, the Secretary of
Agriculture shall conduct a study and submit to Congress a publicly
available report on the loan program under section 521 of the Housing
Act of 1949 (42 U.S.C. 1490a), including--
(1) the total amount provided by the Secretary in subsidies
under such section 521 to borrowers with loans made pursuant to
section 502 of such Act (42 U.S.C. 1472);
(2) how much of the subsidies described in paragraph (1) are
being recaptured; and
(3) the amount of time and costs associated with recapturing
those subsidies.
(c) <<NOTE: 7 USC 1981 note.>> Staffing and Information Technology
Upgrades.--Utilizing funds appropriated for such purposes, the Secretary
of Agriculture may increase staffing capacity and upgrade information
technology to support all Rural Housing Service programs.
(d) Technical Improvements.--
(1) Authorization of appropriations.--Utilizing funds
appropriated for such purposes, the Secretary of Agriculture may
make improvements to the technology of the Rural Housing Service
of the Department of Agriculture used to process and manage
housing loans.
(2) <<NOTE: Expiration date.>> Availability.--Amounts
appropriated pursuant to paragraph (1) shall remain available
until the date that is 5 years after the date of the
appropriation.
(3) Timeline.--The Secretary of Agriculture shall make the
improvements described in paragraph (1) during the 5-year period
beginning on the date on which amounts are appropriated under
paragraph (1).
(e) Permanent Establishment of Housing Preservation and
Revitalization Program.--Title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.) is amended by adding at the end the following:
``SEC. 545. <<NOTE: 42 USC 1490u.>> HOUSING PRESERVATION AND
REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 514, 515, or 516.
``(b) Notice of Maturing Loans.--
``(1) <<NOTE: Time period.>> To owners.--On an annual basis,
the Secretary shall provide written notice to each owner of a
property financed under section 514, 515, or 516 that will
mature within the 4-year period beginning upon the provision of
the notice, setting forth the options and financial incentives
that are available to facilitate the extension of the loan term
or the option to decouple a rental assistance contract pursuant
to subsection (f).
``(2) To tenants.--
``(A) <<NOTE: Deadline.>> In general.--On an annual
basis, for each property financed under section 514,
515, or 516, not later
[[Page 140 STAT. 920]]
than the date that is 2 years before the date that the
loan will mature, the Secretary shall provide written
notice to each household residing in the property that
informs them of--
``(i) the date of the loan maturity;
``(ii) the possible actions that may happen
with respect to the property upon that maturity;
and
``(iii) how to protect their right to reside
in federally assisted housing, or how to secure
housing voucher, after that maturity.
``(B) Language.--Notice under this paragraph shall
be provided in plain English and shall be translated to
other languages in the case of any property located in
an area in which a significant number of residents speak
such other languages.
``(c) Loan Restructuring.--Under the program under this section, in
any circumstance in which the Secretary proposes a restructuring to an
owner or an owner proposes a restructuring to the Secretary, the
Secretary may restructure such existing housing loans, as the Secretary
considers appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required by
the Secretary; and
``(5) permanently removing a portion of the housing units
from income restrictions when sustained vacancies have occurred.
``(d) Renewal of Rental Assistance.--
``(1) In general.--When the Secretary proposes to
restructure a loan or agrees to the proposal of an owner to
restructure a loan pursuant to subsection (c), the Secretary
shall offer to renew the rental assistance contract under
section 521(a)(2) for a term that is the shorter of 20 years and
the term of the restructured loan, subject to annual
appropriations, provided that the owner agrees to bring the
property up to such standards that will ensure maintenance of
the property as decent, safe, and sanitary housing for the full
term of the rental assistance contract.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is not
available for all households in the project for which the loan
is being restructured pursuant to subsection (c), the Secretary
may extend such additional rental assistance to unassisted
households at that project as is necessary to make the project
safe and affordable to low-income households.
``(e) Restrictive Use Agreements.--
``(1) <<NOTE: Records.>> Requirement.--As part of the
preservation and revitalization agreement for a project, the
Secretary shall obtain a restrictive use agreement that is
recorded and obligates the owner to operate the project in
accordance with this title.
``(2) Term.--
[[Page 140 STAT. 921]]
``(A) No extension of rental assistance contract.--
Except when the Secretary enters into a 20-year
extension of the rental assistance contract for a
project, the term of the restrictive use agreement for
the project shall be consistent with the term of the
restructured loan for the project.
``(B) Extension of rental assistance contract.--If
the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of
the restrictive use agreement for the project shall be
for the longer of--
``(i) 20 years; or
``(ii) the remaining term of the loan for that
project.
``(C) Termination.--The Secretary may terminate the
20-year restrictive use agreement for a project before
the end of the term of the agreement if the 20-year
rental assistance contract for the project with the
owner is terminated at any time for reasons outside the
control of the owner.
``(f) <<NOTE: Determinations.>> Decoupling of Rental Assistance.--
``(1) <<NOTE: Time periods.>> Renewal of rental assistance
contract.--If the Secretary determines that a loan maturing
during the 4-year period beginning upon the provision of the
notice required under subsection (b)(1) for a project cannot
reasonably be restructured in accordance with subsection (c)
because it is not financially feasible or the owner does not
agree with the proposed restructuring, and the project was
operating with rental assistance under section 521 and the
recipient is a borrower under section 514 or 515, the Secretary
may renew the rental assistance contract, notwithstanding any
requirement under section 521 that the recipient be a current
borrower under section 514 or 515, for a term of 20 years,
subject to annual appropriations.
``(2) <<NOTE: Extension.>> Additional rental assistance.--
With respect to a project described in paragraph (1), if rental
assistance is not available for all households in the project
for which the loan is being restructured pursuant to subsection
(c), the Secretary may extend such additional rental assistance
to unassisted households at that project as is necessary to make
the project safe and affordable to low-income households.
``(3) Rents.--
``(A) In general.--Any agreement to extend the term
of the rental assistance contract under section 521 for
a project shall obligate the owner to continue to
maintain the project as decent, safe, and sanitary
housing and to operate the development as affordable
housing in a manner that meets the goals of this title.
``(B) Rent amounts.--Subject to subparagraph (C), in
setting rents, the Secretary--
``(i) shall determine the maximum initial rent
based on current fair market rents established
under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f); and
``(ii) may annually adjust the rent determined
under clause (i) by the operating cost adjustment
factor as provided under section 524 of the
Multifamily
[[Page 140 STAT. 922]]
Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note).
``(C) Higher rent.--
``(i) In general.--Subparagraph (B) shall not
apply if the Secretary determines that the budget-
based needs of a project require a higher rent
than the rent described in subparagraph (B).
``(ii) <<NOTE: Approval.>> Rent.--If the
Secretary makes a positive determination under
clause (i), the Secretary may approve a budget-
based rent level for the project.
``(4) <<NOTE: Federal Register,
publication. Notice. Plan. Timetable.>> Conditions for
approval.--Before the approval of a rental assistance contract
authorized under this section, the Secretary shall require,
through an annual notice in the Federal Register, the owner to
submit to the Secretary a plan that identifies financing sources
and a timetable for renovations and improvements determined to
be necessary by the Secretary to maintain and preserve the
project.
``(g) Multifamily Housing Transfer Technical Assistance.--
Under <<NOTE: Grants. Determination.>> the program under this section,
the Secretary may provide grants to qualified nonprofit organizations,
housing cooperative corporations, and public housing agencies to provide
technical assistance, including financial and legal services, to
borrowers under loans under this title for multifamily housing to
facilitate the acquisition or preservation of such multifamily housing
properties in areas where the Secretary determines there is a risk of
loss of affordable housing.
``(h) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
``(i) <<NOTE: Deadlines. Publications. Notice. Consultation.>>
Rulemaking.--
``(1) In general.--Not later than 180 days after the date of
enactment of the 21st Century ROAD to Housing Act, the Secretary
shall--
``(A) publish an advance notice of proposed
rulemaking; and
``(B) consult with appropriate stakeholders.
``(2) Interim final rule.--Not later than 1 year after the
date of enactment of the 21st Century ROAD to Housing Act, the
Secretary shall publish an interim final rule to carry out this
section.''.
(f) Rental Assistance Contract Authority.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)), as amended by this section, is
amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the
following:
``(B) <<NOTE: Time period.>> upon request of an owner of a
project financed under section 514 or 515, the Secretary is
authorized to enter into renewal of such agreements for a period
of 20 years or the term of the loan, whichever is shorter,
subject to amounts made available in appropriations Acts;'';
(C) in subparagraph (C), as so redesignated, by
striking ``subparagraph (A)'' and inserting
``subparagraphs (A) and (B)''; and
[[Page 140 STAT. 923]]
(D) in subparagraph (D), as so redesignated, by
striking ``subparagraphs (A) and (B)'' and inserting
``subparagraphs (A), (B), and (C)'';
(2) in paragraph (2), by striking ``shall'' and inserting
``may''; and
(3) by adding at the end the following:
``(4) <<NOTE: Time period.>> In the case of any rental assistance
contract authority that becomes available because of the termination of
assistance on behalf of an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of not more than 6
months before unused assistance is made available pursuant to
subparagraph (B) during which the owner may use such authority
to provide assistance on behalf of an eligible unassisted family
that--
``(i) is residing in the same rental project in
which the assisted family resided before the
termination; or
``(ii) newly occupies a dwelling unit in the rental
project during that 6-month period; and
``(B) except for assistance used as provided in subparagraph
(A), the Secretary shall use such remaining authority to provide
assistance on behalf of eligible families residing in other
rental projects originally financed under section 514, 515, or
516.''.
(g) Modifications to Loans and Grants for Minor Improvements to Farm
Housing and Buildings; Income Eligibility.--Section 504(a) of the
Housing Act of 1949 (42 U.S.C. 1474(a)) is amended--
(1) in the first sentence, by inserting ``and may make a
loan to an eligible low-income applicant'' after ``applicant'';
and
(2) by striking ``$7,500'' and inserting ``$15,000''.
(h) Rural Community Development Initiative.--Subtitle E of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009 et seq.) is
amended by adding at the end the following:
``SEC. 381O. <<NOTE: 7 USC 2009n.>> RURAL COMMUNITY DEVELOPMENT
INITIATIVE.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a private, nonprofit community-based housing
or community development organization;
``(B) a rural community; or
``(C) a federally recognized Indian tribe.
``(2) Eligible intermediary.--The term `eligible
intermediary' means a qualified--
``(A) private, nonprofit organization; or
``(B) public organization.
``(b) <<NOTE: Grants.>> Establishment.--The Secretary shall
establish a Rural Community Development Initiative, under which the
Secretary shall provide grants, subject to the availability of
appropriations, to eligible intermediaries to carry out programs to
provide financial and technical assistance to eligible entities to
develop the capacity and ability of eligible entities to carry out
projects to improve housing, community facilities, and community and
economic development projects in rural areas.
``(c) Amount of Grants.--The amount of a grant provided to an
eligible intermediary under this section shall be not more than
$500,000.
``(d) Matching Funds.--
[[Page 140 STAT. 924]]
``(1) In general.--An eligible intermediary receiving a
grant under this section shall provide matching funds from other
sources, including Federal funds for related activities, in an
amount not less than the amount of the grant.
``(2) <<NOTE: Determination.>> Waiver.--The Secretary may
waive paragraph (1) with respect to a project that would be
carried out in a persistently poor rural region, as determined
by the Secretary.''.
(i) Annual Report on Rural Housing Programs.--Title V of the Housing
Act of 1949 (42 U.S.C. 1471 et seq.), as amended by this section, is
amended by adding at the end the following:
``SEC. 546. <<NOTE: 42 USC 1490v.>> ANNUAL REPORT.
``(a) <<NOTE: Web posting.>> In General.--The Secretary shall submit
to the appropriate committees of Congress and publish on the website of
the Department of Agriculture an annual report on rural housing programs
carried out under this title, which shall include significant details on
the health of Rural Housing Service programs, including--
``(1) raw data sortable by programs and by region regarding
loan performance;
``(2) the housing stock of those programs, including
information on why properties end participation in those
programs, such as for maturation, prepayment, foreclosure, or
other servicing issues; and
``(3) risk ratings for properties assisted under those
programs.
``(b) Protection of Information.--The data included in each report
required under subsection (a) may be aggregated or anonymized to protect
participant financial or personal information.''.
(j) GAO Report on Rural Housing Service Technology.--Not later than
1 year after the date of enactment of this Act, the Comptroller General
of the United States shall submit to Congress a report that includes--
(1) an analysis of how the outdated technology used by the
Rural Housing Service impacts participants in the programs of
the Rural Housing Service;
(2) an estimate of the amount of funding that is needed to
modernize the technology used by the Rural Housing Service; and
(3) an estimate of the number and type of new employees the
Rural Housing Service needs to modernize the technology used by
the Rural Housing Service.
(k) <<NOTE: 42 USC 1490r note.>> Adjustment to Rural Development
Voucher Amount.--
(1) <<NOTE: Deadline. Regulations. Process. Review.>> In
general.--Not later than 2 years after the date of enactment of
this Act, the Secretary of Agriculture shall issue regulations
to establish a process for adjusting the voucher amount provided
under section 542 of the Housing Act of 1949 (42 U.S.C. 1490r)
after the issuance of the voucher following an interim or annual
review of the amount of the voucher.
(2) Interim review.--The interim review described in
paragraph (1) shall, at the request of a tenant, allow for a
recalculation of the voucher amount when the tenant experiences
a reduction in income, change in family composition, or change
in rental rate.
(3) Annual review.--
[[Page 140 STAT. 925]]
(A) <<NOTE: Certification.>> In general.--The annual
review described in paragraph (1) shall require tenants
to annually recertify the family composition of the
household and that the family income of the household
does not exceed 80 percent of the area median income at
a time determined by the Secretary of Agriculture.
(B) Considerations.--If a tenant does not recertify
the family composition and family income of the
household within the time frame required under
subparagraph (A), the Secretary of Agriculture--
(i) shall consider whether extenuating
circumstances caused the delay in recertification;
and
(ii) may alter associated consequences for the
failure to recertify based on those circumstances.
(C) Effective date.--Following the annual review of
a voucher under paragraph (1), the updated voucher
amount shall be effective on the 1st day of the month
following the expiration of the voucher.
(4) <<NOTE: Review. Update.>> Deadline.--The process
established under paragraph (1) shall require the Secretary of
Agriculture to review and update the voucher amount described in
paragraph (1) for a tenant not later than 60 days before the end
of the voucher term.
(l) Eligibility for Rural Housing Vouchers.--Section 542 of the
Housing Act of 1949 (42 U.S.C. 1490r) is amended by adding at the end
the following:
``(c) Eligibility of Households in Sections 514, 515, and 516
Projects.--The Secretary may provide rural housing vouchers under this
section for any low-income household (including those not receiving
rental assistance) residing for a term longer than the remaining term of
their lease that is in effect on the date of prepayment, foreclosure, or
mortgage maturity, in a property financed with a loan under section 514
or 515 or a grant under section 516 that has--
``(1) been prepaid with or without restrictions imposed by
the Secretary pursuant to section 502(c)(5)(G)(ii)(I);
``(2) been foreclosed; or
``(3) matured after September 30, 2005.''.
(m) <<NOTE: Review. 42 USC 1490r note.>> Amount of Voucher
Assistance.--Notwithstanding any other provision of law, in the case of
any rural housing voucher provided pursuant to section 542 of the
Housing Act of 1949 (42 U.S.C. 1490r), the amount of the monthly
assistance payment for the household on whose behalf the assistance is
provided shall be determined as provided in subsection (a) of such
section 542, including providing for interim and annual review of the
voucher amount in the event of a change in household composition or
income or rental rate.
(n) Transfer of Multifamily Rural Housing Projects.--Section 515 of
the Housing Act of 1949 (42 U.S.C. 1485) is amended--
(1) in subsection (h), by adding at the end the following:
``(3) Transfer to nonprofit organizations.--A nonprofit or
public body purchaser, including a limited partnership with a
general partner with the principal purpose of providing
affordable housing, may purchase a property for which a loan is
made or insured under this section that has received a market
[[Page 140 STAT. 926]]
value appraisal, without addressing rehabilitation needs at the
time of purchase, if the purchaser--
``(A) makes a commitment to address rehabilitation
needs during ownership and long-term use restrictions on
the property; and
``(B) at the time of purchase, accepts long-term use
restrictions on the property.''; and
(2) in subsection (w)(1), in the first sentence in the
matter preceding subparagraph (A), by striking ``9 percent'' and
inserting ``25 percent''.
(o) Extension of Loan Term.--
(1) In general.--Section 502(a)(2) of the Housing Act of
1949 (42 U.S.C. 1472(a)(2)) is amended--
(A) by inserting ``(A)'' before ``The Secretary'';
(B) in subparagraph (A), as so designated, by
striking ``paragraph'' and inserting ``subparagraph'';
and
(C) by adding at the end the following:
``(B) <<NOTE: Time period.>> The Secretary may refinance or
modify the period of any loan, including any refinanced loan,
made under this section in accordance with terms and conditions
as the Secretary shall prescribe, but in no event shall the
total term of the loan from the date of the refinance or
modification exceed 40 years.''.
(2) <<NOTE: 42 USC 1472 note.>> Application.--The amendment
made under paragraph (1) shall apply with respect to loans made
under section 502 of the Housing Act of 1949 (42 U.S.C. 1472)
before, on, or after the date of enactment of this Act.
(p) Release of Liability for Section 502 Guaranteed Borrower Upon
Assumption of Original Loan by New Borrower.--Section 502(h) of the
Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) by striking paragraph (10) and inserting the following:
``(10) Transfer and assumption.--Upon the transfer of
property for which a guaranteed loan under this subsection was
made, and the assumption of the guaranteed loan by an approved
eligible borrower, the original borrower of a guaranteed loan
under this subsection shall be relieved of liability with
respect to the loan.'';
(2) by redesignating paragraph (16) as paragraph (17); and
(3) by inserting after paragraph (15) the following:
``(16) Fee.--
``(A) In general.--The mortgagee may charge an
assuming borrower a reasonable and customary processing
fee for an assumption request made under this
subsection.
``(B) Maximum fee.--The Secretary shall set a
maximum allowable fee described in subparagraph (A),
which may be indexed for inflation.''.
(q) Department of Agriculture Loan Restrictions.--
(1) Definitions.--In this subsection, the terms ``State''
and ``tribal organization'' have the meanings given those terms
in section 658P of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n).
(2) Revision.--The Secretary of Agriculture shall revise
section 3555.102(c) of title 7, Code of Federal Regulations, to
exclude from the restriction under that section--
[[Page 140 STAT. 927]]
(A) a home-based business that is a licensed,
registered, or regulated child care provider under State
law or by a tribal organization; and
(B) an applicant that has applied to become a
licensed, registered, or regulated child care provider
under State law or by a tribal organization.
(r) Loan Guarantees.--Section 502(h)(4) of the Housing Act of 1949
(42 U.S.C. 1472(h)(4)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and adjusting the
margins accordingly;
(2) by striking ``Loans may be guaranteed'' and inserting
the following:
``(A) Definition.--In this paragraph, the term
`accessory dwelling unit' means a single, habitable
living unit--
``(i) with means of separate ingress and
egress;
``(ii) that is usually subordinate in size;
``(iii) that can be added to, created within,
or detached from a primary 1-unit, single-family
dwelling; and
``(iv) in combination with a primary 1-unit,
single-family dwelling, constitutes a single
interest in real estate.
``(B) Single-family requirement.--Loans may be
guaranteed''; and
(3) by adding at the end the following:
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to prohibit the leasing of
an accessory dwelling unit or the use of rental income
derived from such a lease to qualify for a loan
guaranteed under this subsection--
``(i) after the date of enactment of the 21st
Century ROAD to Housing Act; and
``(ii) if the property that is the subject of
the loan was constructed before the date of
enactment of the 21st Century ROAD to Housing
Act.''.
(s) <<NOTE: 42 USC 1472 note.>> Application Review.--
(1) Sense of congress.--It is the sense of Congress, not
later than 90 days after the date on which the Secretary of
Agriculture receives an application for a loan, grant, or
combined loan and grant under section 502 or 504 of the Housing
Act of 1949 (42 U.S.C. 1472, 1474), the Secretary of Agriculture
should--
(A) review the application;
(B) complete the underwriting;
(C) make a determination of eligibility with respect
to the application; and
(D) notify the applicant of determination.
(2) <<NOTE: Time period.>> Report.--
(A) In general.--Not later than 90 days after the
date of enactment of this Act, and annually thereafter
until the date described in subparagraph (B), the
Secretary of Agriculture shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives a report--
[[Page 140 STAT. 928]]
(i) detailing the timeliness of eligibility
determinations and final determinations with
respect to applications under sections 502 and 504
of the Housing Act of 1949 (42 U.S.C. 1472, 1474),
including justifications for any eligibility
determinations taking longer than 90 days; and
(ii) that includes recommendations to shorten
the timeline for notifications of eligibility
determinations described in clause (i) to not more
than 90 days.
(B) <<NOTE: Termination date.>> Date described.--
The date described in this subparagraph is the date on
which, during the preceding 5-year period, the Secretary
of Agriculture provides each eligibility determination
described in subparagraph (A) during the 90-day period
beginning on the date on which each application is
received.
SEC. 503. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.
Section 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11373) is amended by adding at the end the following:
``(f) Funding Cap Waiver Authority.--
``(1) <<NOTE: Time period.>> In general.--Notwithstanding
any other provision of law or regulation, a recipient may
request a waiver to the expenditure limit established pursuant
to section 415(b) for amounts provided for each of fiscal years
2027 through 2030.
``(2) Waiver request.--
``(A) In general.--A recipient seeking a waiver
described in paragraph (1) shall submit to the Secretary
a waiver request that includes not more than the
following:
``(i) A demonstration of local needs and
circumstances that necessitate a waiver.
``(ii) A detailed plan for how the recipient
intends to use funds.
``(iii) A justification for how the proposed
use of funds supports the most recent Consolidated
Plan submitted by the recipient.
``(iv) Any public input solicited under
subparagraph (B)(ii).
``(B) Notification.--Each recipient shall--
``(i) notify all subrecipients and local
Continuums of Care that serve the recipient's
geographic area of the availability of waivers
under this subsection; and
``(ii) prior to the submission of a waiver
request under subparagraph (A), solicit public
input regarding the potential need for and
proposed uses of such waiver.
``(C) Approval; publication.--The Secretary shall--
``(i) <<NOTE: Public information. Web
posting.>> make all waiver requests submitted
under subparagraph (A) publicly available on the
website of the Department of Housing and Urban
Development;
``(ii) <<NOTE: Deadline.>> not later than 60
days after the date on which the Secretary
receives a waiver request under subparagraph (A),
approve or deny the request; and
``(iii) deny any waiver request submitted
under subparagraph (A) by a recipient that
relocates or threaten to relocate individuals or
their property without providing emergency
shelter, rapid rehousing,
[[Page 140 STAT. 929]]
transitional housing, permanent supportive
housing, or other permanent housing options.
``(3) Revocation.--
``(A) <<NOTE: Time period. Grants. Notification.>>
In general.--A waiver approved under this subsection
shall remain in effect for the duration of the period of
performance of fiscal year 2027 through 2030 grants,
unless the recipient notifies the Secretary in writing
that the recipient wishes to revoke the waiver.
``(B) <<NOTE: Summary.>> Notification.--If a
recipient intends to revoke a waiver under subparagraph
(A), the recipient shall--
``(i) solicit input from subrecipients
regarding the revocation before submitting the
revocation; and
``(ii) provide subrecipients with a summary of
the input and the justification for the revocation
in its submittal prior to notifying the Secretary
in writing.
``(C) <<NOTE: Web posting.>> Publication.--The
Secretary shall publish any revocation of a waiver under
subparagraph (A) and the justification of the recipient
for the waiver on the website of the Department of
Housing and Urban Development.''.
SEC. 504. <<NOTE: 42 USC 5324 note.>> REFORMING DISASTER RECOVERY
ACT.
(a) Definitions.--In this section:
(1) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(2) Fund.--The term ``Fund'' means the Long-Term Disaster
Recovery Fund established under subsection (c).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Duties of the Department of Housing and Urban Development.--
(1) In general.--The offices and officers of the Department
shall be responsible for--
(A) leading and coordinating the disaster-related
responsibilities of the Department under the National
Response Framework, the National Disaster Recovery
Framework, and the National Mitigation Framework;
(B) coordinating and administering programs,
policies, and activities of the Department related to
disaster relief, long-term recovery, resiliency, and
mitigation, including disaster recovery assistance under
title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.);
(C) supporting disaster-impacted communities as
those communities specifically assess, plan for, and
address the housing stock and housing needs in the
transition from emergency shelters and interim housing
to permanent housing of those displaced, especially
among vulnerable populations and extremely low-, low-,
and moderate-income households;
(D) collaborating with the Federal Emergency
Management Agency and the Small Business Administration
and across the Department to align disaster-related
regulations and policies, including incorporation of
consensus-based codes and standards and insurance
purchase requirements, and ensuring coordination and
reducing duplication among other Federal disaster
recovery programs;
[[Page 140 STAT. 930]]
(E) promoting best practices in mitigation and
resilient land use planning;
(F) coordinating technical assistance, including
mitigation, resiliency, and recovery training and
information on all relevant legal and regulatory
requirements, to entities that receive disaster recovery
assistance under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) that
demonstrate capacity constraints; and
(G) supporting State, Tribal, and local governments
in developing, coordinating, and maintaining their
capacity for disaster resilience and recovery and
developing pre-disaster recovery and hazard mitigation
plans, in coordination with the Federal Emergency
Management Agency and other Federal agencies.
(2) Establishment of the office of disaster management and
resiliency.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the end
the following:
``(i) Office of Disaster Management and Resiliency.--
``(1) Establishment.--There is established the Office of
Disaster Management and Resiliency.
``(2) Duties.--The Office of Disaster Management and
Resiliency shall--
``(A) be responsible for oversight and coordination
of all departmental disaster preparedness and response
responsibilities; and
``(B) coordinate with the Federal Emergency
Management Agency, the Small Business Administration,
and other offices of the Department in supporting
recovery and resilience activities to provide a
comprehensive approach in working with communities.''.
(c) Long-Term Disaster Recovery Fund.--
(1) Establishment.--There is established in the Treasury of
the United States an account to be known as the ``Long-Term
Disaster Recovery Fund''.
(2) Deposits, transfers, and credit.--
(A) In general.--The Fund shall consist of amounts
appropriated, transferred, and credited to the Fund.
(B) Transfers.--The following may be transferred to
the Fund:
(i) Amounts made available through section
106(c)(4) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5306(c)(4)) as a result of
actions taken under section 104(e), 111, or 124(j)
of such Act.
(ii) Any unobligated balances available until
expended remaining or subsequently recaptured from
amounts appropriated for any disaster and related
purposes under the heading ``Community Development
Fund'' in any Act prior to the establishment of
the Fund.
(C) Use of transferred amounts.--Amounts transferred
to the Fund shall be used for the eligible uses
described in paragraph (3).
(3) Eligible uses of fund.--
(A) In general.--Amounts in the Fund shall be
available--
[[Page 140 STAT. 931]]
(i) to provide assistance in the form of
grants under section 124 of the Housing and
Community Development Act of 1974, as added by
subsection (d); and
(ii) for activities of the Department that
support the provision of such assistance,
including necessary salaries and expenses,
information technology, and capacity building,
technical assistance, and pre-disaster readiness.
(B) Set-aside.--Of each amount appropriated for or
transferred to the Fund, 3 percent shall be made
available for activities described in subparagraph
(A)(ii), which shall be in addition to other amounts
made available for those activities.
(C) Transfer of funds.--With respect to amounts made
available for use in accordance with subparagraph (B)--
(i) amounts may be transferred to the account
under the heading for ``Program Offices--Salaries
and Expenses--Community Planning and
Development'', or any successor account, for the
Department to carry out activities described in
subparagraph(B); and
(ii) amounts may be used for the activities
described in subparagraph (A)(ii) and for the
administrative costs of administering any funds
appropriated to the Department under the heading
``Community Planning and Development--Community
Development Fund'' for any major disaster declared
under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170) in any Act before the establishment
of the Fund.
(D) Inspector general.--
(i) In general.--Not less than one-tenth of 1
percent of each series of awards the Secretary
makes from the Fund shall be transferred to the
account under the heading ``Office of Inspector
General'' for the Department of Housing and Urban
Development to support audit activities and to
investigate grantee noncompliance with program
requirements and waste, fraud, and abuse as a
result of appropriations made available through
the Fund.
(ii) <<NOTE: Time period.>> Availability.--
Funding under clause (i) shall not be made
available to the Office of Inspector General until
90 days after the date on which the grantee plan
or supplemental plan for the grantee is approved
by the Secretary under subsection (c) or (f)(3)(C)
of section 124 of the Housing and Community
Development Act of 1974, as added by subsection
(d), is approved by the Secretary.
(4) Interchangeability of prior administrative amounts.--Any
amounts appropriated in any Act prior to the establishment of
the Fund and transferred to the account under the heading
``Program Offices--Salaries and Expenses--Community Planning and
Development'', or any predecessor account, for the Department
for the costs of administering funds appropriated to the
Department under the heading ``Community Planning and
Development--Community Development Fund'' for any major disaster
declared under section 401
[[Page 140 STAT. 932]]
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) shall be available for the costs
of administering any such funds provided by any prior or future
Act, notwithstanding the purposes for which those amounts were
appropriated and in addition to any amount provided for the same
purposes in other appropriations Acts.
(5) Availability of amounts.--Amounts appropriated,
transferred, and credited to the Fund shall remain available
until expended.
(6) Formula allocation.--Use of amounts in the Fund for
grants shall be made by formula allocation in accordance with
the requirements of section 124(a) of the Housing and Community
Development Act of 1974, as added by subsection (d).
(d) Establishment of CDBG Disaster Recovery Program.--Title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.),
as amended by this Act, is amended--
(1) <<NOTE: Definitions.>> in section 102(a) (42 U.S.C.
5302(a))--
(A) in paragraph (20)--
(i) by redesignating subparagraph (B) as
subparagraph (C);
(ii) in subparagraph (C), as so redesignated,
by inserting ``or (B)'' after ``subparagraph
(A)''; and
(iii) by inserting after subparagraph (A) the
following:
``(B) The term `persons of extremely low income'
means families and individuals whose income levels do
not exceed household income levels determined by the
Secretary under section 3(b)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(C)), except
that the Secretary may provide alternative definitions
for the Commonwealth of Puerto Rico, Guam, the
Commonwealth of the Northern Mariana Islands, the United
States Virgin Islands, and American Samoa.''; and
(B) by adding at the end the following:
``(25) The term `major disaster' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122).'';
(2) in section 106(c)(4) (42 U.S.C. 5306(c)(4))--
(A) in subparagraph (A)--
(i) by striking ``declared by the President
under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act'';
(ii) by inserting ``States for use in
nonentitlement areas and to'' before
``metropolitan cities''; and
(iii) by inserting ``major'' after ``affected
by the'';
(B) in subparagraph (C)--
(i) by striking ``metropolitan city or'' and
inserting ``State, metropolitan city, or'';
(ii) by striking ``city or county'' and
inserting ``State, city, or county''; and
(iii) by inserting ``major'' before
``disaster'';
(C) in subparagraph (D), by striking ``metropolitan
cities and'' and inserting ``States, metropolitan
cities, and'';
(D) in subparagraph (F)--
(i) by striking ``metropolitan city or'' and
inserting ``State, metropolitan city, or''; and
[[Page 140 STAT. 933]]
(ii) by inserting ``major'' before
``disaster''; and
(E) in subparagraph (G), by striking ``metropolitan
city or'' and inserting ``State, metropolitan city,
or'';
(3) in section 122 (42 U.S.C. 5321), by striking ``disaster
under title IV of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act'' and inserting ``major disaster''; and
(4) by adding at the end the following:
``SEC. 124. <<NOTE: 42 USC 5324.>> COMMUNITY DEVELOPMENT BLOCK
GRANT DISASTER RECOVERY PROGRAM.
``(a) Authorization, Formula, and Allocation.--
``(1) Authorization.--The Secretary is authorized to make
community development block grant disaster recovery grants from
the Long-Term Disaster Recovery Fund established under section
504(c) of the 21st Century ROAD to Housing Act (in this section
referred to as the `Fund') for necessary expenses for activities
authorized under subsection (f)(1) related to disaster relief,
long-term recovery, restoration of housing and infrastructure,
economic revitalization, and mitigation in the most impacted and
distressed areas resulting from a catastrophic major disaster.
``(2) Grant awards.--Grants shall be awarded under this
section to States, units of general local government, and Indian
tribes based on capacity and the concentration of damage, as
determined by the Secretary, to support the efficient and
effective administration of funds.
``(3) Section 106 allocations.--Grants under this section
shall not be considered relevant to the formula allocations made
pursuant to section 106.
``(4) Federal register notice.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 30 days after the date of enactment of this
section, the Secretary shall issue a notice in the
Federal Register containing the latest formula
allocation methodologies used to determine the total
estimate of unmet needs related to housing, economic
revitalization, and infrastructure in the most impacted
and distressed areas resulting from a catastrophic major
disaster.
``(B) Public comment.--If the Secretary has not
already requested public comment on the formula
described in the notice required by subparagraph (A),
the Secretary shall solicit public comments on--
``(i) the methodologies described in
subparagraph (A) and seek alternative methods for
formula allocation within a similar total amount
of funding;
``(ii) the impact of formula methodologies on
rural areas and Tribal areas;
``(iii) adjustments to improve targeting to
the most serious needs;
``(iv) objective criteria for grantee capacity
and concentration of damage to inform grantee
determinations and minimum allocation thresholds;
and
``(v) research and data to inform an
additional amount to be provided for mitigation
depending on type of disaster, which shall be up
to 18 percent of the total estimate of unmet
needs.
``(5) Regulations.--
[[Page 140 STAT. 934]]
``(A) In general.--The Secretary shall, by
regulation, establish a formula to allocate assistance
from the Fund to the most impacted and distressed areas
resulting from a catastrophic major disaster.
``(B) <<NOTE: Criteria.>> Formula requirements.--The
formula established under subparagraph (A) shall--
``(i) <<NOTE: Determination. Assessment.>> set
forth criteria to determine that a major disaster
is catastrophic, which criteria shall consider the
presence of a high concentration of damaged
housing or businesses that individual, State,
Tribal, and local resources could not reasonably
be expected to address without additional Federal
assistance or other nationally encompassing data
that the Secretary determines are adequate to
assess relative impact and distress across
geographic areas;
``(ii) include a methodology for identifying
most impacted and distressed areas, which shall
consider unmet serious needs related to housing,
economic revitalization, and infrastructure;
``(iii) include an allocation calculation that
considers the unmet serious needs resulting from
the catastrophic major disaster and an additional
amount up to 18 percent for activities to reduce
risks of loss resulting from other natural
disasters in the most impacted and distressed
area, primarily for the benefit of low- and
moderate-income persons, with particular focus on
activities that reduce repetitive loss of property
and critical infrastructure; and
``(iv) <<NOTE: Review. Updates.>> establish
objective criteria for periodic review and updates
to the formula to reflect changes in available
data.
``(C) Minimum allocation threshold.--The Secretary
shall, by regulation, establish a minimum allocation
threshold.
``(D) Interim allocation.--Until such time that the
Secretary issues final regulations under this paragraph,
the Secretary shall--
``(i) allocate assistance from the Fund using
the formula allocation methodology published in
accordance with paragraph (4); and
``(ii) include an additional amount for
mitigation of up to 18 percent of the total
estimate of unmet need.
``(6) <<NOTE: Time periods. Determinations.>> Allocation of
funds.--
``(A) <<NOTE: Deadline. President.>> In general.--
The Secretary shall--
``(i) except as provided in clause (ii), not
later than 90 days after the President declares a
major disaster, use best available data to
determine whether the major disaster is
catastrophic and qualifies for assistance under
the formula described in paragraph (4) or (5),
unless data is insufficient to make this
determination; and
``(ii) if the best available data is
insufficient to make the determination required
under clause (i) within the 90-day period
described in that clause, determine whether the
major disaster qualifies when sufficient data
becomes available, but in no case shall
[[Page 140 STAT. 935]]
the Secretary make the determination later than
120 days after the declaration of the major
disaster.
``(B) Announcement of allocation.--If amounts are
available in the Fund at the time the Secretary
determines that the major disaster is catastrophic and
qualifies for assistance under the formula described in
paragraph (4) or (5), the Secretary shall immediately
announce an allocation for a grant under this section.
``(C) Additional amounts.--If additional amounts are
appropriated to the Fund after amounts are allocated
under subparagraph (B), the Secretary shall announce an
allocation or additional allocation (if a prior
allocation under subparagraph (B) was less than the
formula calculation) within 15 days of any such
appropriation.
``(7) Preliminary funding.--
``(A) In general.--To speed recovery, the Secretary
is authorized to allocate and award preliminary grants
from the Fund before making a determination under
paragraph (6)(A) if the Secretary projects, based on a
preliminary assessment of impact and distress, that a
major disaster is catastrophic and would likely qualify
for funding under the formula described in paragraph (4)
or (5).
``(B) Amount.--
``(i) Maximum.--The Secretary may award
preliminary funding under subparagraph (A) in an
amount that is not more than $5,000,000.
``(ii) <<NOTE: Regulations.>> Sliding scale.--
The Secretary shall, by regulation, establish a
sliding scale for preliminary funding awarded
under subparagraph (A) based on the size of the
preliminary assessment of impact and distress.
``(C) Use of funds.--The uses of preliminary funding
awarded under subparagraph (A) shall be limited to
eligible activities that--
``(i) in the determination of the Secretary,
will support faster recovery, improve the ability
of the grantee to assess unmet recovery needs,
plan for the prevention of improper payments, and
reduce fraud, waste, and abuse; and
``(ii) may include evaluating the interim
housing, permanent housing, and supportive service
needs of the disaster impacted community, with
special attention to vulnerable populations, such
as homeless and low- to moderate-income
households, to inform the grantee action plan
required under subsection (c).
``(D) Consideration of funding.--Preliminary funding
awarded under subparagraph (A)--
``(i) is not subject to the certification
requirements of subsection (h)(2); and
``(ii) shall not be considered when
calculating the amount of the grant used for
administrative costs, technical assistance, and
planning activities that are subject to the
requirements under subsection (f)(3).
``(E) Waiver.--To expedite the use of preliminary
funding for activities described in this paragraph, the
Secretary may waive or specify alternative requirements
to the requirements of this section in accordance with
subsection (i).
[[Page 140 STAT. 936]]
``(F) <<NOTE: Determination.>> Amended award.--
``(i) In general.--An award for preliminary
funding under subparagraph (A) may be amended to
add any subsequent amount awarded because of a
determination by the Secretary that a major
disaster is catastrophic and qualifies for
assistance under the formula.
``(ii) Applicability.--Notwithstanding
subparagraph (D), amounts provided by an amendment
under clause (i) are subject to the requirements
under subsections (f)(1) and (h)(1) and other
requirements on grant funds under this section.
``(G) Technical assistance.--Concurrent with the
allocation of any preliminary funding awarded under this
paragraph, the Secretary shall assign or provide
technical assistance to the recipient of the grant.
``(b) Interchangeability.--
``(1) In general.--The Secretary is authorized to approve
the use of grants under this section to be used interchangeably
and without limitation for the same activities in the most
impacted and distressed areas resulting from a declaration of
another catastrophic major disaster that qualifies for
assistance under the formula established under paragraph (4) or
(5) of subsection (a) or a major disaster for which the
Secretary allocated funds made available under the heading
`Community Development Fund' in any Act prior to the
establishment of the Fund.
``(2) Requirements.--The Secretary shall establish
requirements to expedite the use of grants under this section
for the purpose described in paragraph (1).
``(3) Emergency designation.--Amounts repurposed pursuant to
this subsection that were previously designated by Congress as
an emergency requirement pursuant to the Balanced Budget and
Emergency Deficit Control Act of 1985 or a concurrent resolution
on the budget are designated by the Congress as being for an
emergency requirement pursuant to section 4001(a)(1) of S. Con.
Res. 14 (117th Congress), the concurrent resolution on the
budget for fiscal year 2022, and to legislation establishing
fiscal year 2026 budget enforcement in the House of
Representatives.
``(c) Grantee Plans.--
``(1) <<NOTE: Deadline.>> Requirement.--Not later than 90
days after the date on which the Secretary announces a grant
allocation under this section, unless an extension is granted by
the Secretary, the grantee shall submit to the Secretary a plan
for approval describing--
``(A) the activities the grantee will carry out with
the grant under this section;
``(B) the criteria of the grantee for awarding
assistance and selecting activities;
``(C) how the use of the grant under this section
will address disaster relief, long-term recovery,
restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed areas;
``(D) how the use of the grant funds for mitigation
is consistent with hazard mitigation plans submitted to
the Federal Emergency Management Agency under section
[[Page 140 STAT. 937]]
322 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5165);
``(E) the estimated amount proposed to be used for
activities that will benefit persons of low and moderate
income;
``(F) how the use of grant funds will repair and
replace existing housing stock for vulnerable
populations, including low- to moderate-income
households;
``(G) how the grantee will address the priorities
described in paragraph (5);
``(H) how uses of funds are proportional to unmet
needs, as required under paragraph (6);
``(I) for State grantees that plan to distribute
grant amounts to units of general local government, a
description of the method of distribution; and
``(J) such other information as may be determined by
the Secretary in regulation.
``(2) Public consultation.--To permit public examination and
appraisal of the plan described in paragraph (1), to enhance the
public accountability of grantee, and to facilitate coordination
of activities with different levels of government, when
developing the plan or substantial amendments proposed to the
plan required under paragraph (1), a grantee shall--
``(A) publish the plan before adoption;
``(B) <<NOTE: Time period.>> provide citizens,
affected units of general local government, and other
interested parties with reasonable notice of, and
opportunity to comment on, the plan, with a public
comment period of not less than 14 days;
``(C) consider comments received before submission
to the Secretary;
``(D) follow a citizen participation plan for
disaster assistance adopted by the grantee that, at a
minimum, provides for participation of residents of the
most impacted and distressed area affected by the major
disaster that resulted in the grant under this section
and other considerations established by the Secretary;
and
``(E) undertake any consultation with interested
parties as may be determined by the Secretary in
regulation.
``(3) Approval.--The Secretary shall--
``(A) <<NOTE: Regulations. Criteria.>> by
regulation, specify criteria for the approval, partial
approval, or disapproval of a plan submitted under
paragraph (1), including approval of substantial
amendments to the plan;
``(B) <<NOTE: Review.>> review a plan submitted
under paragraph (1) upon receipt of the plan;
``(C) allow a grantee to revise and resubmit a plan
or substantial amendment to a plan under paragraph (1)
that the Secretary disapproves;
``(D) <<NOTE: Regulations. Criteria. Public
comments.>> by regulation, specify criteria for when the
grantee shall be required to provide the required
revisions to a disapproved plan or substantial amendment
under paragraph (1) for public comment prior to
resubmission of the plan or substantial amendment to the
Secretary; and
``(E) <<NOTE: Deadline.>> approve, partially
approve, or disapprove a plan or substantial amendment
under paragraph (1) not later than 60 days after the
date on which the plan or substantial amendment is
received by the Secretary.
[[Page 140 STAT. 938]]
``(4) Low- and moderate-income overall benefit.--
``(A) <<NOTE: Waiver authority.>> Use of funds.--Not
less than 70 percent of a grant made under this section
shall be used for activities that benefit persons of low
and moderate income unless the Secretary--
``(i) specifically finds that--
``(I) there is compelling need to
reduce the percentage for the grant; and
``(II) the housing needs of low- and
moderate-income persons have been
addressed; and
``(ii) issues a waiver and alternative
requirement specific to the grant pursuant to
subsection (i) to lower the percentage.
``(B) <<NOTE: Protocols.>> Regulations.--The
Secretary shall, by regulation, establish protocols that
reflect the required use of funds under subparagraph
(A), including persons with extremely and very low
incomes.
``(5) Prioritization.--The grantee shall prioritize
activities that--
``(A) assist persons with extremely low-, low-, and
moderate-incomes and other vulnerable populations to
better recover from and withstand future disasters;
``(B) address housing needs arising from a disaster,
or those needs present prior to a disaster, including
the needs of both renters and homeowners;
``(C) prolong the life of housing and
infrastructure;
``(D) use cost-effective means of preventing harm to
people and property and incorporate protective features
and redundancies; and
``(E) other measures that will assure the
continuation of critical services during future
disasters.
``(6) Proportional allocation.--For each specific disaster,
a grantee under this section shall allocate grant funds
proportional to unmet needs between housing activities for
renters and homeowners, economic revitalization, and
infrastructure unless the Secretary specifically finds that--
``(A) there is a compelling need for a
disproportional allocation among those unmet needs; and
``(B) the disproportional allocation described in
subparagraph (A) is not inconsistent with the
requirements under paragraph (4).
``(7) Disaster risk mitigation.--
``(A) Definition.--In this paragraph, the term
`hazard-prone areas'--
``(i) means areas identified by the Secretary,
in consultation with the Administrator of the
Federal Emergency Management Agency, at risk from
natural hazards that threaten property damage or
health, safety, and welfare, such as floods,
wildfires (including Wildland-Urban Interface
areas), earthquakes, lava inundation, tornados,
and high winds; and
``(ii) includes areas having special flood
hazards as identified under the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4002 et seq.) or
the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.).
``(B) Hazard-prone areas.--The Secretary, in
consultation with the Administrator of the Federal
Emergency
[[Page 140 STAT. 939]]
Management Agency, shall establish minimum construction
standards, insurance purchase requirements, and other
requirements for the use of grant funds in hazard-prone
areas.
``(C) Special flood hazards.--
``(i) In general.--For the areas described in
subparagraph (A)(ii), the insurance purchase
requirements established under subparagraph (B)
shall meet or exceed the requirements under
section 102(a) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(a)).
``(ii) Treatment as financial assistance.--All
grants under this section shall be treated as
financial assistance for purposes of section
3(a)(3) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4003(a)(3)).
``(D) Consideration of future risks.--The Secretary
may consider future risks to protecting property and
health, safety, and general welfare, and the likelihood
of those risks, when making the determination of or
modification to hazard-prone areas under this paragraph.
``(8) Relocation.--
``(A) <<NOTE: Applicability. Determination. Regulations.>>
In general.--The Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (42 U.S.C.
4601 et seq.) shall apply to activities assisted under
this section to the extent determined by the Secretary
in regulation, or as provided in waivers or alternative
requirements authorized in accordance with subsection
(i).
``(B) Policy.--Each grantee under this section shall
establish a relocation assistance policy that--
``(i) minimizes displacement and describes the
benefits available to persons displaced as a
direct result of acquisition, rehabilitation, or
demolition in connection with an activity that is
assisted by a grant under this section; and
``(ii) includes any appeal rights or other
requirements that the Secretary establishes by
regulation.
``(d) Certifications.--Any grant under this section shall be made
only if the grantee certifies to the satisfaction of the Secretary
that--
``(1) the grantee is in full compliance with the
requirements under subsection (c)(2);
``(2) for grants other than grants to Indian tribes, the
grant will be conducted and administered in conformity with the
Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.) and the Fair
Housing Act (42 U.S.C. 3601 et seq.);
``(3) <<NOTE: Analysis.>> the projected use of funds has
been developed so as to give maximum feasible priority to
activities that will benefit recipients described in subsection
(c)(4)(A) and activities described in subsection (c)(5), and may
also include activities that are designed to aid in the
prevention or elimination of slum and blight to support disaster
recovery, meet other community development needs having a
particular urgency because existing conditions pose a serious
and immediate threat to the health or welfare of the community
where other financial resources are not available to meet such
needs, and alleviate future threats to human populations,
critical natural resources,
[[Page 140 STAT. 940]]
and property that an analysis of hazards shows are likely to
result from natural disasters in the future;
``(4) the grant funds shall principally benefit persons of
low- and moderate-income as described in subsection (c)(4)(A);
``(5) <<NOTE: Time periods. Update. Review.>> for grants
other than grants to Indian tribes, within 24 months of
receiving a grant or at the time of its 3- or 5-year update,
whichever is sooner, the grantee will review and make
modifications to its non-disaster housing and community
development plans and strategies required by subsections (c) and
(m) of section 104 to reflect the disaster recovery needs
identified by the grantee and consistency with the plan under
subsection (c)(1);
``(6) <<NOTE: Fees. Assessment.>> the grantee will not
attempt to recover any capital costs of public improvements
assisted in whole or part under this section by assessing any
amount against properties owned and occupied by persons of low
and moderate income, including any fee charged or assessment
made as a condition of obtaining access to such public
improvements, unless--
``(A) funds received under this section are used to
pay the proportion of such fee or assessment that
relates to the capital costs of such public improvements
that are financed from revenue sources other than under
this chapter; or
``(B) for purposes of assessing any amount against
properties owned and occupied by persons of moderate
income, the grantee certifies to the Secretary that the
grantee lacks sufficient funds received under this
section to comply with the requirements of subparagraph
(A);
``(7) <<NOTE: Compliance. Applicability.>> the grantee will
comply with the other provisions of this title that apply to
assistance under this section and with other applicable laws;
``(8) the grantee will follow a relocation assistance policy
that includes any minimum requirements identified by the
Secretary; and
``(9) the grantee will adhere to construction standards,
insurance purchase requirements, and other requirements for
development in hazard-prone areas described in subsection
(c)(7).
``(e) Performance Reviews and Reporting.--
``(1) <<NOTE: Time period. Audits.>> In general.--The
Secretary shall, on not less frequently than an annual basis
until the closeout of a particular grant allocation, make such
reviews and audits as may be necessary or appropriate to
determine whether a grantee under this section has--
``(A) carried out activities using grant funds in a
timely manner;
``(B) met the performance targets established by
paragraph (2);
``(C) carried out activities using grant funds in
accordance with the requirements of this section, the
other provisions of this title that apply to assistance
under this section, and other applicable laws; and
``(D) a continuing capacity to carry out activities
in a timely manner.
``(2) <<NOTE: Public information.>> Performance targets.--
The Secretary shall develop and make publicly available critical
performance targets for review, which shall include spending
thresholds for each year
[[Page 140 STAT. 941]]
from the date on which funds are obligated by the Secretary to
the grantee until such time all funds have been expended.
``(3) Failure to meet targets.--
``(A) Suspension.--If a grantee under this section
fails to meet 1 or more critical performance targets
under paragraph (2), the Secretary may temporarily
suspend the grant.
``(B) Performance improvement plan.--If the
Secretary suspends a grant under subparagraph (A), the
Secretary shall provide to the grantee a performance
improvement plan with the specific requirements needed
to lift the suspension within a defined time period.
``(C) Report.--If a grantee fails to meet the
spending thresholds established under paragraph (2), the
grantee shall submit to the Secretary, the appropriate
committees of Congress, and each member of Congress who
represents a district or State of the grantee a written
report identifying technical capacity, funding, or other
Federal or State impediments affecting the ability of
the grantee to meet the spending thresholds.
``(4) Collection of information and reporting.--
``(A) Requirement to report.--A grantee under this
section shall provide to the Secretary such information
as the Secretary may determine necessary for adequate
oversight of the grant program under this section.
``(B) Public availability.--Subject to subparagraph
(D), the Secretary shall make information submitted
under subparagraph (A) available to the public and to
the Inspector General for the Department of Housing and
Urban Development.
``(C) <<NOTE: Time period. Web posting. Public
information.>> Summary status reports.--To increase
transparency and accountability of the grant program
under this section, the Secretary shall, on not less
frequently than an annual basis, post on a public facing
dashboard summary status reports for all active grants
under this section that includes--
``(i) the status of funds by activity;
``(ii) the percentages of funds allocated and
expended to benefit low- and moderate-income
communities;
``(iii) performance targets, spending
thresholds, and accomplishments; and
``(iv) <<NOTE: Determination.>> other
information the Secretary determines to be
relevant for transparency.
``(D) Considerations.--In carrying out this
paragraph, the Secretary shall take such actions as may
be necessary to ensure that personally identifiable
information regarding applicants for assistance provided
from funds made available under this section is not made
publicly available.
``(E) Research partnerships.--
``(i) In general.--The Secretary may, upon a
formal request from researchers, make
disaggregated information available to the
requestor that is specific and relevant to the
research being conducted, and for the purposes of
researching program impact and efficacy.
[[Page 140 STAT. 942]]
``(ii) Privacy protections.--In making
information available under clause (i), the
Secretary shall protect personally identifiable
information as required under section 552a of
title 5, United States Code (commonly known as the
`Privacy Act of 1974').
``(f) Eligible Activities.--
``(1) <<NOTE: Waiver authority.>> In general.--Activities
assisted under this section--
``(A) may include activities permitted under section
105 or other activities permitted by the Secretary by
waiver or alternative requirement pursuant to subsection
(i); and
``(B) shall be related to disaster relief, long-term
recovery, restoration of housing and infrastructure,
economic revitalization, and mitigation in the most
impacted and distressed areas resulting from the major
disaster for which the grant was awarded.
``(2) Prohibition.--Grant funds under this section may not
be used for costs reimbursable by, or for which funds have been
made available by, the Federal Emergency Management Agency or
the United States Army Corps of Engineers.
``(3) Administrative costs, technical assistance, and
planning.--
``(A) <<NOTE: Regulations.>> In general.--The
Secretary shall establish in regulation the maximum
grant amounts a grantee may use for administrative
costs, technical assistance, and planning activities,
taking into consideration size of grant, complexity of
recovery, and other factors as determined by the
Secretary, but not to exceed 8 percent for
administration and 20 percent in total.
``(B) Availability.--Amounts available for
administrative costs for a grant under this section
shall be available for eligible administrative costs of
the grantee for any grant made under this section,
without regard to a particular disaster.
``(C) Supplemental plan.--
``(i) In general.--Grantees may submit to the
Secretary an optional supplemental plan to the
grantee plan required under this title
specifically for administrative costs, which shall
include a description of the use of all grant
funds for administrative costs, including for any
eligible pre-award program administrative costs,
and how such uses will prepare the grantee to more
effectively and expeditiously administer funds
provided under the full plan.
``(ii) Use of funds.--If a supplemental plan
is approved under clause (i), a grantee may draw
down the aforementioned administrative funds
before the full grantee plan is approved.
``(iii) Waivers.--In carrying out this
subparagraph, the Secretary may include any
waivers or alternative requirements in accordance
with subsection (i).
``(4) <<NOTE: Regulations.>> Program income.--
Notwithstanding any other provision of law, any grantee under
this section may retain program income that is realized from
grants made by the Secretary under this section if the grantee
agrees that the grantee will utilize the program income in
accordance with the requirements for grants under this section,
except that the Secretary may--
[[Page 140 STAT. 943]]
``(A) by regulation, exclude from consideration as
program income any amounts determined to be so small
that compliance with this paragraph creates an
unreasonable administrative burden on the grantee; or
``(B) permit the grantee to transfer remaining
program income to the other grants of the grantee under
this title upon closeout of the grant.
``(5) Prohibition on use of assistance for employment
relocation activities.--
``(A) In general.--Grants under this section may not
be used to assist directly in the relocation of any
industrial or commercial plant, facility, or operation,
from one area to another area, if the relocation is
likely to result in a significant loss of employment in
the labor market area from which the relocation occurs.
``(B) Applicability.--The prohibition under
subparagraph (A) shall not apply to a business that was
operating in the disaster-declared labor market area
before the incident date of the applicable disaster and
has since moved, in whole or in part, from the affected
area to another State or to a labor market area within
the same State to continue business.
``(6) Requirements.--Grants under this section are subject
to the requirements of this section, the other provisions of
this title that apply to assistance under this section, and
other applicable laws, unless modified by waivers or alternative
requirements in accordance with subsection (i).
``(g) Environmental Review.--
``(1) Adoption.--A recipient of funds provided under this
section that uses the funds to supplement Federal assistance
provided under section 203, 402, 403, 404, 406, 407, 408(c)(4),
428, or 502 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172,
5173, 5174(c)(4), 5189f, 5192) may adopt, without review or
public comment, any environmental review, approval, or permit
performed by a Federal agency, and such adoption shall satisfy
the responsibilities of the recipient with respect to such
environmental review, approval, or permit under section
104(g)(1), so long as the actions covered by the existing
environmental review, approval, or permit and the actions
proposed for these supplemental funds are substantially the
same.
``(2) Approval of release of funds.--Notwithstanding section
104(g)(2), the Secretary or a State may, upon receipt of a
request for release of funds and certification, immediately
approve the release of funds for an activity or project to be
assisted under this section if the recipient has adopted an
environmental review, approval, or permit under paragraph (1) or
the activity or project is categorically excluded from review
under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(3) <<NOTE: Applicability.>> Units of general local
government.--The provisions of section 104(g)(4) shall apply to
assistance under this section that a State distributes to a unit
of general local government.
``(h) Financial Controls and Procedures.--
[[Page 140 STAT. 944]]
``(1) In general.--The Secretary shall develop requirements
and procedures to demonstrate that a grantee under this
section--
``(A) has adequate financial controls and
procurement processes;
``(B) has adequate procedures to detect and prevent
fraud, waste, abuse, and duplication of benefit; and
``(C) <<NOTE: Public information. Website.>>
maintains a comprehensive and publicly accessible
website.
``(2) Certification.--Before making a grant under this
section, the Secretary shall certify that the grantee has in
place proficient processes and procedures to comply with the
requirements developed under paragraph (1), as determined by the
Secretary.
``(3) Compliance before allocation.--The Secretary may
permit a State, unit of general local government, or Indian
tribe to demonstrate compliance with the requirements for
adequate financial controls developed under paragraph (1) before
a disaster occurs and before receiving an allocation for a grant
under this section.
``(4) Duplication of benefits.--
``(A) In general.--Funds made available under this
section shall be used in accordance with section 312 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5155) and such rules as may be
prescribed under such section 312.
``(B) Penalties.--In any case in which the use of
grant funds under this section results in a prohibited
duplication of benefits, the grantee shall--
``(i) <<NOTE: Applicability.>> apply an amount
equal to the identified duplication to any
allowable costs of the award consistent with an
actual, immediate cash requirement;
``(ii) remit any excess amounts to the
Secretary to be credited to the obligated,
undisbursed balance of the grant consistent with
requirements on Federal payments applicable to
such grantee; and
``(iii) if excess amounts under clause (ii)
are identified after the period of performance or
after the closeout of the award, remit such
amounts to the Secretary to be credited to the
Fund.
``(C) <<NOTE: Determination. Federal Register,
publication.>> Failure to comply.--Any grantee provided
funds under this section or from prior appropriations
Acts under the heading `Community Development Fund' for
purposes related to major disasters that fails to comply
with section 312 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5155) or
fails to satisfy penalties to resolve a duplication of
benefits shall be subject to remedies for noncompliance
under section 111, unless the Secretary publishes a
determination in the Federal Register that it is not in
the best interest of the Federal Government to pursue
remedial actions.
``(i) Waivers and Alternative Requirements.--
``(1) In general.--In administering grants under this
section, the Secretary may waive, or specify alternative
requirements for, any provision of any statute or regulation
that the Secretary administers in connection with the obligation
by the Secretary or the use by the grantee of those funds
[[Page 140 STAT. 945]]
(except for requirements related to fair housing,
nondiscrimination, labor standards, the environment, and the
requirements of this section that do not expressly authorize
modifications by waiver or alternative requirement), if the
Secretary makes a public finding that good cause exists for the
waiver or alternative requirement.
``(2) Effective date.--A waiver or alternative requirement
described in paragraph (1) shall not take effect before the date
that is 5 days after the date of publication of the waiver or
alternative requirement on the website of the Department of
Housing and Urban Development or the effective date for any
regulation published in the Federal Register.
``(3) Public notification.--The Secretary shall notify the
public of all waivers or alternative requirements described in
paragraph (1) in accordance with the requirements of section
7(q)(3) of the Department of Housing and Urban Development Act
(42 U.S.C. 3535(q)(3)).
``(j) Unused Amounts.--
``(1) Deadline to use amounts.--A grantee under this section
shall use an amount equal to the grant within 6 years beginning
on the date on which the Secretary obligates the amounts to the
grantee, as such period may be extended under paragraph (4).
``(2) Recapture.--The Secretary shall recapture and credit
to the Fund any amount that is unused by a grantee under this
section upon the earlier of--
``(A) <<NOTE: Notification.>> the date on which the
grantee notifies the Secretary that the grantee has
completed all activities identified in the disaster
grantee's plan under subsection (c); or
``(B) <<NOTE: Time period.>> the expiration of the
6-year period described in paragraph (1), as such period
may be extended under paragraph (4).
``(3) Retention of funds.--Notwithstanding paragraph (1),
the Secretary--
``(A) shall allow a grantee under this section to
retain amounts needed to close out grants; and
``(B) may allow a grantee under this section to
retain up to 10 percent of the remaining funds to
support maintenance of the minimal capacity to launch a
new program in the event of a future disaster and to
support pre-disaster long-term recovery and mitigation
planning.
``(4) Extension of period for use of funds.--The Secretary
may extend the 6-year period described in paragraph (1) by not
more than 4 years, or not more than 6 years for mitigation
activities, if--
``(A) the grantee submits to the Secretary--
``(i) <<NOTE: Records.>> written documentation
of the exigent circumstances impacting the ability
of the grantee to expend funds that could not be
anticipated; or
``(ii) a justification that such request is
necessary due to the nature and complexity of the
program and projects; and
``(B) the Secretary submits a written justification
for the extension to the Committee on Appropriations and
the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Appropriations and
[[Page 140 STAT. 946]]
the Committee on Financial Services of the House of
Representatives that specifies the period of that
extension.
``(k) Definition.--In this section, the term `Indian tribe' has the
meaning given the term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).''.
(e) <<NOTE: Deadlines.>> Regulations.--
(1) <<NOTE: Time period. Public comments.>> Proposed
rules.--Following consultation with the Federal Emergency
Management Agency, the Small Business Administration, and other
Federal agencies, not later than 6 months after the date of
enactment of this Act, the Secretary shall issue proposed rules
to carry out this section and the amendments made by this
section and shall provide a 90-day period for submission of
public comments on those proposed rules.
(2) Final rules.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall issue final
regulations to carry out section 124 of the Housing and
Community Development Act of 1974, as added by subsection (d).
(f) Coordination of Disaster Recovery Assistance, Benefits, and Data
With Other Federal Agencies.--
(1) Coordination of disaster recovery assistance.--In order
to ensure a comprehensive approach to Federal disaster relief,
long-term recovery, restoration of housing and infrastructure,
economic revitalization, and mitigation in the most impacted and
distressed areas resulting from a catastrophic major disaster,
the Secretary shall coordinate with the Federal Emergency
Management Agency, to the greatest extent practicable, in the
implementation of assistance authorized under section 124 of the
Housing and Community Development Act of 1974, as added by
subsection (d).
(2) Data sharing agreements.--To support the coordination of
data to prevent duplication of benefits with other Federal
disaster recovery programs while also expediting recovery and
reducing burden on disaster survivors, the Department shall
establish data sharing agreements that safeguard privacy with
relevant Federal agencies to ensure disaster benefits
effectively and efficiently reach intended beneficiaries, while
using effective means of preventing harm to people and property.
(3) Data transfer from fema and sba to hud.--As permitted
and deemed necessary for efficient program execution, and
consistent with a computer matching agreement entered into under
paragraph (6)(A), the Administrator of the Federal Emergency
Management Agency and the Administrator of the Small Business
Administration shall provide data on disaster applicants to the
Department, including, when necessary, personally identifiable
information, disaster recovery needs, and resources determined
eligible for, and amounts expended, to the Secretary for all
major disasters declared by the President pursuant to section
401 of Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) for the purpose of providing
additional assistance to disaster survivors and prevent
duplication of benefits.
(4) Data transfers from hud to hud grantees.--The Secretary
is authorized to provide to grantees under section 124 of the
Housing and Community Development Act of 1974, as added by
subsection (d), offices of the Department, technical
[[Page 140 STAT. 947]]
assistance providers, and lenders information that in the
determination of the Secretary is reasonably available and
appropriate to inform the provision of assistance after a major
disaster, including information provided to the Secretary by the
Administrator of the Federal Emergency Management Agency, the
Administrator of the Small Business Administration, or other
Federal agencies.
(5) Data transfers from hud grantees to hud, fema, and
sba.--
(A) Reporting.--Grantees under section 124 of the
Housing and Community Development Act of 1974, as added
by subsection (d), shall report information requested by
the Secretary on households, businesses, and other
entities assisted and the type of assistance provided.
(B) Sharing information.--The Secretary shall share
information collected under subparagraph (A) with the
Federal Emergency Management Agency, the Small Business
Administration, and other Federal agencies to support
the planning and delivery of disaster recovery and
mitigation assistance and other related purposes.
(6) <<NOTE: Contracts.>> Privacy protection.--
(A) <<NOTE: Notification. Assessment.>> In
general.--The Secretary may make and receive data
transfers authorized under this subsection, including
the use and retention of that data for computer matching
programs, to inform the provision of assistance, assess
disaster recovery needs, and prevent the duplication of
benefits and other waste, fraud, and abuse, provided
that--
(i) the Secretary enters an information
sharing agreement or a computer matching
agreement, when required by section 522a of title
5, United States Code (commonly known as the
``Privacy Act of 1974''), with the Administrator
of the Federal Emergency Management Agency, the
Administrator of the Small Business
Administration, or other Federal agencies covering
the transfer of data; and
(ii) <<NOTE: Federal Register,
publication.>> the Secretary publishes intent to
disclose data in the Federal Register.
(B) Data sharing agreement.--Notwithstanding clauses
(i) and (ii) of subparagraph (A), section 552a of title
5, United States Code, or any other law, the Secretary
is authorized to share data with an entity identified in
paragraph (4), and the entity is authorized to use the
data as described in this section, if the Secretary
enters a data sharing agreement with the entity before
sharing or receiving any information under transfers
authorized by this section, which data sharing agreement
shall--
(i) in the determination of the Secretary,
include measures adequate to safeguard the privacy
and personally identifiable information of
individuals; and
(ii) include provisions that describe how the
personally identifiable information of an
individual will be adequately safeguarded and
protected, which requires consultation with the
Secretary and the head of each Federal agency the
data of which is being shared subject to the
agreement.
(g) Sunset.--The program under section 124 of the Housing and
Community Development Act of 1974, as added by subsection
[[Page 140 STAT. 948]]
(d) shall terminate on the date that is 3 years after the date of
enactment of this Act.
(h) Sense of Congress.--It is the sense of Congress that, should
Congress opt to appropriate funds for disaster recovery through a
similar successor program following the sunset date, subsection (g)
shall not preclude Congress from doing so.
(i) Application.--Grants made under section 124 of the Housing and
Community Development Act of 1974, as added by subsection (d), after the
date of enactment of this Act shall be carried out using amounts
appropriated after the date of enactment of this Act.
SEC. 505. <<NOTE: 42 USC 1437f note.>> NEW MOVING TO WORK COHORT.
(a) Definitions.--In this section:
(1) Moving to work demonstration.--The term ``Moving to Work
demonstration'' means the Moving to Work demonstration
authorized under section 204 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Authorization of Additional Public Housing Agencies.--
(1) In general.--After the completion of the initial report
required under subsection (h)(2), the Secretary may add up to an
additional 25 public housing agencies that are designated as
high performing agencies under the Public Housing Assessment
System or the Section 8 Management Assessment Program to
participate in a new cohort as part of the Moving to Work
demonstration.
(2) Name.--The new cohort authorized under paragraph (1)
shall be entitled the ``Economic Opportunity and Pathways to
Independence Cohort''.
(c) Waiver Authority.--
(1) In general.--Subject to this subsection, the authority
of the Secretary to grant waivers to agencies admitted to the
Moving to Work demonstration under this section or to designate
policy changes as part of a cohort design under this section
shall be limited to the Moving to Work waivers codified as of
January 2025 in Appendix I of the document of the Department of
Housing and Urban Development entitled ``Operations Notice for
the Expansion of the Moving to Work Demonstration Program'' (FR-
5994-N-05) published in the Federal Register on August 28, 2020,
as amended by the notice entitled ``Operations Notice for
Expansion of the Moving to Work Demonstration Program Technical
Revisions'' (FR-5994-N-06) published in the Federal Register on
March 20, 2025.
(2) Modifications.--The Secretary may not waive the safe
harbor requirements that apply to the Moving to Work waivers
described in paragraph (1) or modify those waivers in any other
way for the purposes of the new cohort under this section.
(3) Exceptions.--
(A) In general.--Under paragraph (1), the Secretary
may not grant waiver 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q,
6, 7, 9a, 9h, or 12 in the document described in
paragraph
[[Page 140 STAT. 949]]
(1), including modifications of or safe harbor
requirement waivers for such waivers.
(B) Specific wavers.--If the Secretary grants waiver
10 or 11 in the document described in paragraph (1),
resident participation in any program administered
pursuant to those waivers shall be optional for purposes
of the new cohort under this section.
(4) Policy options.--In carrying out the Moving to Work
demonstration cohort established under this section, the
Secretary may consider policy options to provide opt-out savings
or escrow accounts and report positive rental payments to
consumer reporting agencies (as defined in section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a)) with resident
consent.
(d) Funding and Use of Funds.--
(1) In general.--Public housing agencies in the cohort
authorized under this section may expend not more than 5 percent
of the amounts those public housing agencies receive in any
fiscal year for housing assistance payments under section 8(o)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o))
for purposes other than such housing assistance payments.
(2) <<NOTE: Compliance.>> Other uses.--Such other uses of
amounts described in paragraph (1) shall comply with all other
applicable requirements.
(3) Formula.--
(A) Renewal.--The amount of funding public housing
agencies receive for renewal of housing assistance
payments under section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)) shall be determined
according to the same funding formula applicable to
public housing agencies that do not participate in the
Moving to Work demonstration, except that the Secretary
shall provide public housing agencies funding to renew
any funds expended under this subsection, with an
adjustment for inflation.
(B) Administrative fees.--The amount of funding
public housing agencies receive for administrative fees
under section 8(q) of the United States Housing Act of
1937 (42 U.S.C. 1437f(q)), public housing operating
subsidies under section 9(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437g(e)), and public
housing capital funding under section 9(d) of the United
States Housing Act of 1937 (42 U.S.C. 1437g(d)) shall be
determined according to the same funding formula
applicable to public housing agencies that do not
participate in the Moving to Work demonstration.
(e) <<NOTE: Determination.>> Selection Requirements.--The Secretary
shall select public housing agencies designated under this section
through a competitive process, as determined by the Secretary, with the
following parameters:
(1) No public housing agency shall be granted this
designation under this section that administers more than 27,000
aggregate housing vouchers and public housing units.
(2) Of the public housing agencies selected under this
section, not more than 12 shall administer 1,000 or fewer
aggregate housing vouchers and public housing units, not more
than
[[Page 140 STAT. 950]]
8 shall administer between 1,001 and 6,000 aggregate housing
vouchers and public housing units, and not more than 5 shall
administer between 6,001 and 27,000 aggregate housing vouchers
and public housing units.
(3) Selection of public housing agencies under this section
shall be based on ensuring the geographic diversity of Moving to
Work demonstration public housing agencies.
(4) Within the requirements under paragraphs (1) through
(3), the Secretary shall prioritize selecting public housing
agencies that serve families with children and youth aging out
of foster care at a rate above the national average.
(f) Requirements for Selected Public Housing Agencies.--Consistent
with section 204(c)(3) of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1996 (42 U.S.C. 1437f note), public housing agencies selected for
the Moving to Work demonstration under this section shall--
(1) ensure that not less than 75 percent of the families
assisted are very low-income families, as defined in section
3(b)(2)(B) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(2)(B));
(2) establish a reasonable rent policy, which shall be
designed to encourage employment and self-sufficiency by
participating families, consistent with the purpose of the
Moving to Work demonstration, such as by excluding some or all
of a family's earned income for purposes of determining rent;
(3) continue to assist substantially the same total number
of eligible low-income families as would have been served had
the amounts not been combined;
(4) maintain a comparable mix of families (by family size)
as would have been provided had the amounts not been used under
the Moving to Work demonstration; and
(5) assure that housing assisted under the Moving to Work
demonstration meets housing quality standards established or
approved by the Secretary.
(g) Noncompliance.--
(1) <<NOTE: Determination.>> In general.--If the Secretary
finds that a public housing agency participating in the cohort
authorized under this section is not in compliance with the
requirements under this section, the Secretary shall make a
determination of noncompliance.
(2) <<NOTE: Process.>> Compliance.--Upon making a
determination under paragraph (1), the Secretary shall develop a
process to bring the public housing agency into compliance.
(3) Removal.--If a public housing agency cannot be brought
into compliance under the process developed under paragraph (2),
the Secretary shall remove the participating public housing
agency from the cohort and replace it with a similarly qualified
public housing agency currently not in the cohort chosen in the
manner described in subsection (e).
(4) Notification.--Upon removing a public housing agency
under paragraph (3), the Secretary shall immediately submit to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives--
(A) a notification of the removal; and
[[Page 140 STAT. 951]]
(B) <<NOTE: Reports.>> a report on the active steps
the Secretary is taking to replace the public housing
agency with a new public housing agency.
(h) Comprehensive Moving to Work Reporting and Oversight
Requirements.--
(1) Cohort research.--
(A) <<NOTE: Continuation. Public information. Web
posting. Time period.>> In general.--The Secretary
shall continue ongoing research investigations commenced
as part of the assessment of the cohorts established
under section 239 of the Department of Housing and Urban
Development Appropriations Act, 2016 (42 U.S.C. 1437f
note; Public Law 114-113), make public all products
completed as part of those investigations, and keep such
products online for at least 5 years.
(B) <<NOTE: Evaluation.>> Coordination.--The
Secretary shall coordinate with the advisory committee
established under section 239 of the Department of
Housing and Urban Development Appropriations Act, 2016
(42 U.S.C. 1437f note; Public Law 114-113) to establish
a research program to evaluate the outcomes and efficacy
of the following for all Moving to Work demonstration
agencies designated under the authority under such
section and this section:
(i) The waivers granted to each cohort and
whether those waivers accomplish the goals of
achieving greater cost effectiveness and
administrative capacity, incentivizing families to
become economically self-sufficient, and
increasing housing choice.
(ii) The additional flexibilities granted to
individual public housing agencies under each
cohort.
(iii) How the flexibilities described in
clause (ii) were used for local, non-traditional
activities.
(2) <<NOTE: Time period.>> Comprehensive reporting
requirement.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the Secretary
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of
the House of Representatives a report that contains the
following for each Moving to Work demonstration cohort under
section 204 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1996 (42 U.S.C. 1437f note), section 239 of the Department
of Housing and Urban Development Appropriations Act, 2016 (42
U.S.C. 1437f note; Public Law 114-113), and this section:
(A) The annual administrative plans of each Moving
to Work demonstration public housing agency.
(B) Assessments of longitudinal data, including data
on units, households, and outcomes, which shall be
evaluated to compare changes in the following trends
before and after Moving to Work demonstration
designation:
(i) Impacts on tenants based on the following,
disaggregated by the public housing program and
the housing choice voucher program:
(I) Eviction rates.
(II) Hardship policy usage.
(III) Share of rent covered by a
household.
(IV) Turnover, including the number
of household moves with or without
continued assistance.
[[Page 140 STAT. 952]]
(V) Reasons for exit from the
program.
(VI) The number and characteristics
of households served, including
households with a non-elderly family
member with a disability, households
with 3 or more minors, homelessness
status at the time of admission, and
average and median income as a percent
of area median income.
(ii) Impacts on public housing agency
operations based on the following:
(I) The number of units, broken down
by type.
(II) The size, including the number
of bedrooms per unit, accessibility,
affordability, and quality of units.
(III) The length of each waitlist
maintained and average wait times.
(IV) Changes in capital backlog
needs and surplus fund and reserve
levels.
(V) The number of public housing
units undergoing a conversion under the
rental assistance demonstration program
authorized under the Department of
Housing and Urban Development
Appropriations Act, 2012 (Public Law
112-55; 125 Stat. 673) or demolition or
disposition projects under section 18 of
the United States Housing Act of 1937
(42 U.S.C. 1437p), including the number
of units lost and the location of any
replacement housing resulting from
demolition or disposition.
(VI) The share of project-based
vouchers compared to tenant-based
vouchers.
(VII) The following annual housing
choice voucher data:
(aa) Voucher unit
utilization rates.
(bb) Voucher budget
utilization rates.
(cc) Annualized voucher
success rate.
(dd) Demographic composition
of households issued vouchers
compared to utilized vouchers.
(ee) Average time to lease-
up.
(ff) Average cost per
voucher.
(gg) Average cost per
landlord incentive.
(hh) Ratio of the proportion
of voucher households living in
concentrated low-income areas to
the proportion of renter-
occupied units in concentrated
low-income areas.
(ii) Characteristics of
census tracts where voucher
recipients reside.
(VIII) How the public housing agency
met each of the statutory requirements
in section 204(c)(3) of the Departments
of Veterans Affairs and Housing and
Urban Development, and Independent
Agencies Appropriations Act, 1996 (42
U.S.C. 1437f note).
(iii) Impacts on public housing staffing and
capacity, including the average public housing
agency operating, administrative, and housing
assistance payment expenditures per household per
month.
[[Page 140 STAT. 953]]
(C) Legislative recommendations for flexibilities
that could be expanded to all public housing agencies
and how each flexibility enhances housing choice,
affordability, and administrative capacity and
efficiency for public housing agencies.
(3) Public availability.--
(A) <<NOTE: Web posting. Time period.>> In
general.--The Secretary shall maintain all reports
submitted pursuant to this section in a manner that is
publicly available, accessible, and searchable on the
website of the Department of Housing and Urban
Development for not less than 5 years.
(B) Other information.--
(i) In general.--The Secretary shall make the
annual plan of the Moving to Work demonstration,
the Section 8 administrative plan, and the
admission and continued occupancy policy for each
year publicly available in 1 location on the
website of the Department of Housing and Urban
Development for not less than 5 years.
(ii) Database.--The Secretary may establish a
searchable database on the website of the
Department of Housing and Urban Development to
track the types of flexibilities into which Moving
to Work demonstration public housing agencies have
opted or for which a waiver was approved by the
Secretary, disaggregated by the year such
flexibilities were adopted or approved.
TITLE VI--VETERANS AND HOUSING
SEC. 601. <<NOTE: Deadlines.>> MILITARY SERVICE QUESTION.
(a) In General.--Subpart A of part 2 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541
et seq.) is amended by adding at the end the following:
``SEC. 1329. <<NOTE: Regulations. 12 USC 4549.>> UNIFORM
RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall, by regulation or order, require each
enterprise to include a disclosure below the military service question,
which shall be above the signature line, on the form known as the
Uniform Residential Loan Application stating, `If yes, you may qualify
for a VA Home Loan. Consult your lender regarding eligibility.'.''.
(b) <<NOTE: Reports.>> GAO Study.--Not later than 18 months after
the date of enactment of this Act, the Comptroller General of the United
States shall conduct a study and submit to Congress a report on whether
or not less than 80 percent of lenders using the Uniform Residential
Loan Application have included on that form the disclaimer required
under section 1329 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992, as added by subsection (a).
SEC. 602. HOUSING UNHOUSED DISABLED VETERANS ACT.
(a) Exclusion of Certain Disability Benefits.--Section 3(b)(4)(B) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is
amended--
(1) by redesignating clauses (iv) and (v) as clauses (vi)
and (vii), respectively; and
[[Page 140 STAT. 954]]
(2) by inserting after clause (iii) the following:
``(iv) for the purpose of determining income
eligibility with respect to the supported housing
program under section 8(o)(19), any disability
benefits received under chapter 11 or chapter 15
of title 38, United States Code, received by a
veteran, except that this exclusion shall not
apply to the income in the definition of adjusted
income;
``(v) for the purpose of determining income
eligibility with respect to any household
receiving rental assistance under the supported
housing program under section 8(o)(19) as it
relates to eligibility for other types of housing
assistance, any disability benefits received under
chapter 11 or chapter 15 of title 38, United
States Code, received by a veteran, but such
amounts shall not be excluded from income when
determining adjusted income;''.
(b) <<NOTE: 42 USC 1437a note.>> Treatment of Certain Disability
Benefits.--
(1) In general.--When determining the eligibility of a
veteran to rent a residential dwelling unit constructed on
Department property on or after the date of enactment of this
Act, for which assistance is provided as part of a housing
assistance program administered by the Secretary, the Secretary
shall exclude from income any disability benefits received under
chapter 11 or chapter 15 of title 38, United States Code by such
person.
(2) Definitions.--In this subsection:
(A) Department property.--The term ``Department
property'' has the meaning given the term in section 901
of title 38, United States Code.
(B) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
SEC. 603. VETERANS AFFAIRS LOAN INFORMED DISCLOSURE (VALID) ACT.
(a) FHA Informed Consumer Choice Disclosure.--
(1) Inclusion of information relating to va loans.--
Subparagraph (A) of section 203(f)(2) of the National Housing
Act (12 U.S.C. 1709(f)(2)(A)) is amended--
(A) by striking ``ratio in'' and inserting ``ratio--
``(i) in''; and
(B) by adding at the end the following:
``(ii) in connection with a loan guaranteed or
insured under chapter 37 of title 38, United
States Code, assuming prevailing interest rates;
and''.
(2) <<NOTE: 12 USC 1709 note.>> Rule of construction.--
Nothing in the amendments made by paragraph (1) shall be
construed to require an original lender to determine whether a
prospective borrower is eligible for any loan included in the
notice required under section 203(f) of the National Housing Act
(12 U.S.C. 1709(f)).
(b) <<NOTE: Deadlines.>> Military Service Question.--
(1) In general.--Subpart A of part 2 of subtitle A of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4541 et seq.), as amended by section 601(a)
of this Act, is amended by adding at the end the following:
[[Page 140 STAT. 955]]
``SEC. <<NOTE: 12 USC 4550.>> 1330. UNIFORM RESIDENTIAL LOAN
APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall require each enterprise to--
``(1) include a military service question on the form known
as the Uniform Residential Loan Application to include selection
options of `Yes', `No', and ``Prefer Not To Answer''; and
``(2) position the question described in paragraph (1) above
the signature line of the Uniform Residential Loan
Application.''.
(2) <<NOTE: 12 USC 4550 note.>> Rulemaking.--Not later than
6 months after the date of enactment of this Act, the Director
of the Federal Housing Finance Agency shall issue a rule to
carry out the amendment made by this section.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
SEC. 701. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING
REGULATORS.
Section 7 of the Department of Housing and Urban Development Act (42
U.S.C. 3535) is amended by adding at the end the following:
``(u) Annual Testimony.--The Secretary shall appear before the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives at an
annual hearing and present testimony regarding the operations of the
Department during the preceding year, including--
``(1) the current programs and operations of the Department;
``(2) the physical condition of all public housing and other
housing assisted by the Department;
``(3) the financial health of the mortgage insurance funds
of the Federal Housing Agency;
``(4) oversight by the Department of grantees and
subgrantees for purposes of preventing waste, fraud, and abuse;
``(5) the progress made by the Federal Government in ending
the affordable housing and homelessness crises;
``(6) the capacity of the Department to deliver on its
statutory mission; and
``(7) other ongoing activities of the Department, as
appropriate.''.
SEC. 702. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.
Section 202(a) of the National Housing Act (12 U.S.C. 1708(a)) is
amended by adding at the end the following:
``(8) Other required reporting.--The Secretary shall--
``(A) submit to Congress monthly reports on the
capital ratio required under section 205(f)(2); and
``(B) <<NOTE: Notification.>> notify Congress as
soon as practicable after the Fund falls below the
capital ratio required under section 205(f)(2).''.
[[Page 140 STAT. 956]]
SEC. 703. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS
OVERSIGHT.
Section 203(a) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11313(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``Homeless Emergency Assistance and
Rapid Transition to Housing Act of 2009'' and inserting
``21st Century ROAD to Housing Act''; and
(B) by striking ``update such plan annually'' and
inserting ``submit to the President and Congress a
report every year thereafter that includes--
``(A) the status of completion of the plan; and
``(B) any modifications that were made to the plan
and the reasons for those modifications;'';
(2) by redesignating paragraphs (10) through (13) as
paragraphs (11) through (14), respectively;
(3) by redesignating the second paragraph (9) (relating to
collecting and disseminating information) as paragraph (10);
(4) in paragraph (13), as so redesignated, by striking
``and'' at the end;
(5) in paragraph (14), as so redesignated, by striking the
period at the end and inserting ``; and''; and
(6) by adding at the end the following:
``(15) testify annually before Congress, if requested.''.
SEC. 704. APPRAISAL MODERNIZATION ACT.
(a) <<NOTE: 15 USC 1639h note.>> Reconsideration of Value.--
(1) Federally backed mortgage loan defined.--In this
subsection, the term ``federally backed mortgage loan'' has the
meaning given the term in section 4022 of the CARES Act (15
U.S.C. 9056).
(2) Requirement.--The Secretary of Agriculture, the
Secretary of Veterans Affairs, the Commissioner of the Federal
Housing Administration, and the Director of the Federal Housing
Finance Agency shall each implement and maintain requirements
that creditors of a federally backed mortgage loan have a review
and resolution procedure for a consumer-initiated
reconsideration of value or subsequent appraisal in connection
with a consumer credit transaction secured by a consumer's
principal dwelling.
(b) Public Appraisal Database.--
(1) Covered agencies defined.--In this subsection, the term
``covered agencies'' means--
(A) the Federal Housing Finance Agency, on behalf of
the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation;
(B) the Department of Housing and Urban Development,
including the Federal Housing Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) <<NOTE: Assessment.>> Feasibility report.--Not later
than 240 days after the date of enactment of this Act, the
Comptroller General of the United States shall submit to
Congress a public report assessing the feasibility of creating a
publicly available appraisal database that consists of a
searchable and downloadable appraisal-level public use file that
consolidates
[[Page 140 STAT. 957]]
appraisal data held or aggregated by covered agencies,
including--
(A) the costs and benefits associated with
establishing and maintaining the public database;
(B) the benefits and risks associated with the
Federal Housing Finance Agency or the Bureau of Consumer
Financial Protection being responsible for the public
database and whether there is another Federal agency
best suited for implementing and administering such
database;
(C) any safety and soundness, antitrust, or consumer
privacy-related risks associated with making certain
appraisal data factors publicly available, including
whether--
(i) there are any existing legal requirements,
including under the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2801 et seq.) and section 552
of title 5, United States Code (commonly known as
the ``Freedom of Information Act''), or additional
actions Federal agencies could take to mitigate
such risks, such as modifying or aggregating data
or eliminating personally identifiable
information; and
(ii) there are any data factors that, if made
public, may violate conduct, ethics, or other
professional standards as they relate to
appraisals and appraisal or valuation
professionals;
(D) the feasibility of consolidating or matching
appraisal data held by covered agencies with
corresponding data that are required and made public
under the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data
factors may pose unfair business advantages within the
valuation industry;
(F) the feasibility of including all valuation data
held by covered agencies, including data produced by
automated valuation models;
(G) the feasibility and benefits of making the full
appraisal dataset, including any modified fields,
available to--
(i) Federal agencies, including for purposes
related to enforcement and supervision
responsibilities;
(ii) relevant State licensing, supervision,
and enforcement agencies and State attorneys
general;
(iii) approved researchers, including
academics and nonprofit organizations that, in
connection with their mission, work to ensure the
fairness and consistency of home valuations,
including appraisals; and
(iv) any other entities identified by the
Comptroller General as having a compelling use for
disaggregated data;
(H) what appraisal data are already available in the
public domain; and
(I) <<NOTE: Time period.>> the feasibility of
incorporating legacy data held by covered agencies
during the period beginning on January 1, 2017, and
ending on the date of enactment of this Act, and whether
there are specific data points not easily consolidated
or matched, as described in subparagraph (D), with more
recent data.
[[Page 140 STAT. 958]]
(3) Purpose.--The database described in paragraph (2) shall
be used to provide the public, the Federal Government, and State
governments with residential real estate appraisal data to help
determine whether financial institutions, appraisal management
companies, appraisers, valuation technologies, such as automated
valuation models, and other valuation professionals are
effectively serving the entire housing market.
(4) Consultation.--As part of the information used in the
report required under paragraph (2), the Comptroller General of
the United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and
enforcement agencies and State attorneys general;
(C) appraisers and other home valuation industry
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) <<NOTE: Determination.>> any other relevant
stakeholders as determined by the Comptroller General.
(5) Hearing.--Upon the completion of the report under
paragraph (2), the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of
the House of Representatives shall each hold a hearing on the
findings of the report and the feasibility of establishing a
public appraisal-level appraisal database.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
SEC. 801. HUD-USDA-VA INTERAGENCY COORDINATION ACT.
(a) <<NOTE: 42 USC 3535 note.>> Memorandum of Understanding.--The
Secretary of Housing and Urban Development, the Secretary of
Agriculture, and the Secretary of Veterans Affairs shall establish a
memorandum of understanding, or other appropriate interagency agreement,
to share relevant housing-related research and market data that
facilitate evidence-based policymaking.
(b) Interagency Report.--
(1) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall jointly submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report containing--
(A) a description of opportunities for increased
collaboration between the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the
Secretary of Veterans Affairs to reduce inefficiencies
in housing programs;
(B) a list of Federal laws (including regulations)
that adversely affect the availability and affordability
of new construction of assisted housing and single-
family and multifamily residential housing subject to
mortgages insured under title II of the National Housing
Act (12 U.S.C. 1707 et seq.), insured, guaranteed, or
made by the Secretary of Agriculture under title V of
the Housing Act
[[Page 140 STAT. 959]]
of 1949 (42 U.S.C. 1471 et seq.), or insured,
guaranteed, or made by the Secretary of Veterans Affairs
under chapter 37 of title 38, United States Code; and
(C) recommendations for Congress regarding the
Federal laws (including regulations) described in
subparagraph (B).
(2) <<NOTE: Federal Register, publication. Public
comments. Time period.>> Publication.--The report required under
paragraph (1) shall, prior to submission under this subsection,
be published in the Federal Register and open for comment for a
period of 30 days.
SEC. 802. STREAMLINING RURAL HOUSING ACT.
(a) <<NOTE: Memorandums. Evaluations.>> In General.--Not later than
180 days after the date of enactment of this Act, the Secretary of
Housing and Urban Development and the Secretary of Agriculture shall
enter into a memorandum of understanding to--
(1) evaluate categorical exclusions under the environmental
review process for housing projects funded by amounts from the
Department of Housing and Urban Development and the Department
of Agriculture;
(2) <<NOTE: Process.>> develop a process to designate a
lead agency and streamline adoption of Environmental Impact
Statements and Environmental Assessments approved by the other
Department to construct housing projects funded by both
agencies;
(3) <<NOTE: Compliance.>> maintain compliance with
environmental regulations under part 58 of title 24, Code of
Federal Regulations, as in effect on January 1, 2025, except as
required to amend, add, or remove categorical exclusions
identified under section 58.35 of title 24, Code of Federal
Regulations, through standard rulemaking procedures; and
(4) evaluate the feasibility of a joint physical inspection
process for housing projects funded by amounts from the
Department of Housing and Urban Development and the Department
of Agriculture.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Housing and Urban Development and the
Secretary of Agriculture shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that includes
recommendations for legislative, regulatory, or administrative actions--
(1) to improve the efficiency and effectiveness of housing
projects funded by amounts from the Department of Housing and
Urban Development and the Department of Agriculture; and
(2) that do not materially, with respect to residents of
housing projects described in paragraph (1)--
(A) reduce the safety of those residents;
(B) shift long-term costs onto those residents; or
(C) undermine the environmental standards of those
residents.
SEC. 803. IMPROVING SELF-SUFFICIENCY OF FAMILIES IN HUD-SUBSIDIZED
HOUSING.
(a) In General.--
(1) Study.--Subject to subsection (b), the Secretary of
Housing and Urban Development shall conduct a study on the
implementation of work requirements implemented prior
[[Page 140 STAT. 960]]
to the date of enactment of this Act by public housing agencies
described in paragraph (4) participating in the Moving to Work
demonstration authorized under section 204 of the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f
note).
(2) Scope.--The study required under paragraph (1) shall--
(A) consider the short-, medium-, and long-term
benefits and challenges of work requirements on public
housing agencies described in paragraph (4) and on
program participants who are subject to such
requirements, including the effects work requirements
have on homelessness rates, poverty rates, asset
building, earnings growth, job attainment and retention,
and public housing agencies' administrative capacity;
and
(B) include quantitative and qualitative evidence,
including interviews with program participants described
in subparagraph (A) and their respective resident
councils.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report on the initial findings of the study
required under paragraph (1).
(4) Public housing agencies described.--The public housing
agencies described in this paragraph are public housing agencies
that, as part of an application to participate in the
demonstration authorized under section 204 of the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f
note), submit a proposal identifying work requirements as an
innovative proposal.
(b) Determination.--The requirement under subsection (a) shall apply
if the Secretary of Housing and Urban Development determines that--
(1) there are a sufficient number of public housing agencies
described in subsection (a)(4) such that the Secretary of
Housing and Urban Development can rigorously evaluate the impact
of the implementation of work requirements described in that
subsection; and
(2) the study would not negatively impact low-income
families receiving assistance through a public housing agency
described in subsection (a)(4).
SEC. 804. GAO STUDIES.
(a) Workforce Housing Study.--
(1) Middle-income household defined.--In this subsection,
the term ``middle-income household'' means a household with an
income above 80 percent but that does not exceed 120 percent of
the median family income of the area, as determined by the
Secretary of Housing and Urban Development with adjustments for
smaller and larger families.
(2) Study.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study and submit to Congress a report
that--
(A) identifies obstacles middle-income households
face when looking to secure affordable housing;
[[Page 140 STAT. 961]]
(B) identifies geographic areas where housing is the
most unaffordable and unavailable for middle-income
households;
(C) includes a list of Federal housing programs,
including Federal tax credits, grants, and loan
programs, that are not available to middle-income
households due to their income status, including Federal
housing programs designed to promote affordability;
(D) recommends income and other parameters to
establish a clear and consistent Federal definition for
the term ``workforce housing'' for use when describing
the segment of housing that could be made available to
those middle-income households in Federal housing
programs if funding commensurate with the additional
eligibility were to be made available; and
(E) analyzes how to modify or newly develop new
Federal housing programs and incentives to include
``workforce housing'' if funding commensurate with the
additional eligibility were to be made available.
(b) Housing for Elderly or Disabled.--Not later than 1 year after
the date of enactment of this Act, the Comptroller General of the United
States shall carry out a study and submit to Congress a report that
identifies options to remove barriers and improve housing for persons
who are elderly or disabled, including any potential impacts of
providing capital advances for--
(1) the program for supportive housing for the elderly under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); and
(2) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013).
(c) Proximity of Housing to Superfund Sites.--Not later than 1 year
after the date of enactment of this Act, the Comptroller General of the
United States shall carry out a study and submit to Congress a report
that identifies how many residential dwelling units, and how many
dwelling units that are a part of public housing (as defined in section
3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))), are
located less than 1 mile from a site that is included on the National
Priorities List established pursuant to section 105 of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9605).
(d) Residential Heirs Property.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General of the United
States shall carry out a study and submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that--
(1) establishes a comprehensive definition of residential
heirs property, or family land inherited without a will or legal
documentation of ownership;
(2) examines the occurrence of and consequences to owners of
residential heirs property, and provides an estimate regarding
the number of current residential heirs properties;
(3) describes the objectives and requirements of the Uniform
Partition of Heirs Property Act as approved by the National
Conference of Commissioners on Uniform State Laws in 2010;
[[Page 140 STAT. 962]]
(4) details the various resources that may be available to
the owners of residential heirs properties, including housing
counseling, legal services, and financial assistance to resolve
residential heirs property title issues from the Federal
Government, nonprofit organizations, and institutions of higher
education; and
(5) makes recommendations with respect to how to reduce the
number of residential heirs properties, including--
(A) by incentivizing States and other jurisdictions
which enact or adopt the Uniform Partition of Heirs
Property Act or similar such reforms;
(B) by awarding grants to States and other
jurisdictions to assist residents of those States and
jurisdictions to establish and document property
ownership rights or settle a decedent's estate;
(C) by awarding grants to entities that--
(i) provide housing counseling, legal
assistance, and financial assistance to home-
owners and their heirs relating to title clearing
and home retention efforts of heirs' property; and
(ii) target services to low- and moderate-
income persons or provide services in
neighborhoods that have a high concentration of
low- and moderate-income persons; and
(D) by conducting other activities that assist
individuals to clear title with respect to heirs'
property and with general estate planning.
SEC. 805. <<NOTE: Deadlines. 42 USC 1437 note.>> IMPROVING PUBLIC
HOUSING AGENCY ACCOUNTABILITY.
(a) Definitions.--In this section:
(1) Covered public housing agency.--The term ``covered
public housing agency'' means a public housing agency (as
defined in section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b))) for which an administrative or judicial
receiver or Federal monitor was appointed.
(2) Inspector general.--The term ``Inspector General'' means
the Inspector General of the Department of Housing and Urban
Development.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Required Notice.--The Secretary shall require each covered
public housing agency to provide a notice each year to the Secretary
that--
(1) indicates that if a receiver or Federal monitor remains
appointed for the covered public housing agency as of October 1
of the calendar year to which the notice relates;
(2) provides the date on which the receiver or Federal
monitor was first appointed and the projected date, if known,
the appointment of the receiver or Federal monitor will be
terminated; and
(3) identifies the current receiver or Federal monitor
appointed to oversee the public housing agency.
(c) Federal Monitor and Receiver Transparency.--
(1) <<NOTE: Assessment.>> In general.--Notwithstanding any
other provision of law, not later than October 1 of each year,
each receiver or Federal monitor that is currently appointed to
oversee a covered
[[Page 140 STAT. 963]]
public housing agency shall provide to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate a
written assessment that--
(A) describes the management and oversight
activities of the receiver or Federal monitor for the
covered public housing agency;
(B) identifies the significant factors that led to
the appointment of the receiver or Federal monitor for
the covered public housing agency;
(C) identifies the factors that remain unresolved at
the covered public housing agency that have led to the
continued oversight of the receiver or Federal monitor;
and
(D) <<NOTE: Timeline.>> includes a timeline
developed by the receiver or Federal monitor that
projects when the factors identified under subparagraphs
(B) and (C) will be resolved.
(2) Additional information.--In addition to the written
assessment required in paragraph (1), upon written request by
the Committee on Banking, Housing, and Urban Affairs of the
Senate or the Committee on Financial Services of the House of
Representatives, each receiver or Federal monitor appointed to
oversee a covered public housing agency shall promptly furnish
additional or supplemental information requested by the
Committee on Banking, Housing, and Urban Affairs of the Senate
or the Committee on Financial Services of the House of
Representatives with respect to the covered public housing
agency that such receiver or Federal monitor is appointed to
oversee, including presenting testimony upon request.
(d) <<NOTE: Public information. Web posting. Contracts.>> Disclosure
Required.--The Secretary shall, not later than 1 year after the date of
enactment of this Act, require each covered public housing agency to
publicly disclose, on the website of the covered public housing agency,
with respect to each contract entered into by such covered public
housing agency in the preceding year, the following information:
(1) All material information about the contract, including
the goods and service provided.
(2) The identity of the vendor selected to receive the
contract.
(3) The date of the solicitation of the contract.
(4) The relevant information pertaining to the bids and
quotes solicited for the contract.
(5) The name of the official who solicited the contract.
(e) <<NOTE: Analysis.>> Inspector General Review.--Not later than
180 days after receiving a written request from the Committee on
Financial Services of the House of Representatives or the Committee on
Banking, Housing, and Urban Affairs of the Senate, the Inspector General
shall provide to the requesting committee an analysis of--
(1) the status of any covered public housing agency's
compliance with any agreements entered into between the covered
public housing agency and the Department of Housing and Urban
Development, including specific areas of deficiency and progress
toward compliance;
(2) a review of actions taken by the receiver or Federal
monitor appointed to oversee a covered public housing agency and
any private sector housing development partners pursuant
[[Page 140 STAT. 964]]
to such agreement, including any gaps in oversight by the
receiver or Federal monitor;
(3) an assessment of the physical conditions of housing
provided by the covered public housing agency, including the
status of the covered public housing agency's compliance with
relevant health and safety requirements;
(4) an examination of any allegations of waste, fraud, abuse
or violations of Federal law committed by employees or
contractors of the covered public housing agency;
(5) any additional pertinent information, as determined
necessary and appropriate by the inspector general; and
(6) any recommendations of the inspector general that relate
to how to improve the compliance of the covered public housing
agency with any agreements entered into with the Department of
Housing and Urban Development or enhance the oversight of the
receiver or Federal monitor over such covered public housing
agency.
TITLE IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
SEC. 901. COMMUNITY BANK DEPOSIT ACCESS.
(a) In General.--Section 29 of the Federal Deposit Insurance Act (12
U.S.C. 1831f) is amended by adding at the end the following:
``(j) Limited Exception for Custodial Deposits.--
``(1) In general.--Custodial deposits of an eligible
institution shall not be considered to be funds obtained,
directly or indirectly, by or through a deposit broker to the
extent that the total amount of such custodial deposits does not
exceed an amount equal to 20 percent of the total liabilities of
the eligible institution.
``(2) Definitions.--In this subsection:
``(A) Custodial deposit.--The term `custodial
deposit' means a deposit that is not deposited at an
insured depository institution in return for fees paid
by the insured depository institution pursuant to an
agreement with a third party and that would otherwise be
considered to be obtained, directly or indirectly, by or
through a deposit broker, if the deposit is deposited at
1 or more insured depository institutions, for the
purpose of providing or maintaining deposit insurance
for the benefit of a third party, by or through any of
the following, each acting in a formal custodial or
fiduciary capacity for the benefit of a third party:
``(i) An insured depository institution
serving as agent, trustee, or custodian.
``(ii) A trust entity controlled by an insured
depository institution serving as agent, trustee,
or custodian.
``(iii) A State-chartered trust company
serving as agent, trustee, or custodian.
``(iv) A plan administrator or investment
advisor, acting in a formal custodial or fiduciary
capacity for the benefit of a plan.
``(B) Eligible institution.--The term `eligible
institution' means an insured depository institution
that accepts custodial deposits, if the insured
depository institution has
[[Page 140 STAT. 965]]
less than $10,000,000,000 in total assets as reported on
the consolidated report of condition and income as
reported quarterly to the appropriate Federal banking
agency and--
``(i)(I) when most recently examined under
section 10(d) was assigned a composite rating of
1, 2, or 3 under the Uniform Financial
Institutions Rating System (or an equivalent
rating under a comparable rating system); and
``(II) is well capitalized; or
``(ii) has obtained a waiver pursuant to
subsection (c).
``(C) Plan.--The term `plan' has the meaning given
the term in section 3 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002).
``(D) Plan administrator.--The term `plan
administrator' has the meaning given the term
`administrator' in section 3 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002).
``(E) Well capitalized.--The term `well capitalized'
has the meaning given the term in section 38(b).''.
(b) Interest Rate Restriction.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is
further amended by adding at the end the following:
``(k) Restriction on Interest Rate Paid on Certain Custodial
Deposits.--
``(1) Definitions.--In this subsection--
``(A) the terms `custodial deposit', `eligible
institution', and `well capitalized' have the meanings
given those terms in subsection (j); and
``(B) the term `covered insured depository
institution' means an insured depository institution
that while acting as an eligible institution under
subsection (j), accepts custodial deposits while not
well capitalized.
``(2) Prohibition.--A covered insured depository institution
may not pay a rate of interest on custodial deposits that are
accepted while not well capitalized that, at the time the funds
or custodial deposits are accepted, significantly exceeds the
limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of
interest referred to in paragraph (2) shall be not greater
than--
``(A) the rate paid on deposits of similar maturity
in the normal market area of the covered insured
depository institution for deposits accepted in the
normal market area of the covered insured depository
institution; or
``(B) the national rate paid on deposits of
comparable maturity, as established by the Corporation,
for deposits accepted outside the normal market area of
the covered insured depository institution.''.
SEC. 902. KEEPING DEPOSITS LOCAL.
(a) Amount of Reciprocal Deposits That Are Not Considered to Be
Funds Obtained by or Through a Deposit Broker.--Section 29(i) of the
Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by
striking paragraph (1) and inserting the following:
[[Page 140 STAT. 966]]
``(1) In general.--The sum of the following amounts of
reciprocal deposits of an agent institution shall not be
considered to be funds obtained, directly or indirectly, by or
through a deposit broker:
``(A) An amount equal to 50 percent of the portion
of the total liabilities of the agent institution that
is less than or equal to $1,000,000,000.
``(B) An amount equal to 40 percent of the portion,
if any, of the total liabilities of the agent
institution that is greater than $1,000,000,000, but
less than or equal to $10,000,000,000.
``(C) An amount equal to 30 percent of the portion,
if any, of the total liabilities of the agent
institution that is greater than $10,000,000,000, but
less than or equal to $96,333,333,333.''.
(b) Definition of Agent Institution.--Section 29(i)(2)(A)(i)(I) of
the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is
amended by striking ``was found to have a composite condition of
outstanding or good'' and inserting ``was assigned a CAMELS rating of 1,
2, or 3 under the Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system)''.
(c) Reciprocal Deposits Study.--
(1) In general.--The Federal Deposit Insurance Corporation,
in consultation with the Board of Governors of the Federal
Reserve System, shall carry out a study on reciprocal deposits.
(2) Contents.--The study required under paragraph (1) shall
include--
(A) an analysis of how reciprocal deposits have
performed since 2018, which shall include--
(i) the use of quantitative and qualitative
data;
(ii) a breakdown of the usage of reciprocal
deposits by size of insured depository
institution;
(iii) the usage of reciprocal deposits during
periods of stress; and
(iv) an analysis, to the extent practicable,
of end-user depositors, such as municipalities,
businesses, and nonprofit organizations, that
drive demand for reciprocal products;
(B) an analysis, to the extent practicable, of how
reciprocal deposits compare to other deposit
arrangements; and
(C) an analysis of the benefits and potential risks
of reciprocal deposits.
(3) Report.--Not later than 6 months after the date of
enactment of this Act, the Federal Deposit Insurance Corporation
shall issue a report to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate containing all findings
and determinations made in carrying out the study required under
paragraph (1).
SEC. 903. TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)) is amended--
(1) in paragraph (4)(A), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''; and
[[Page 140 STAT. 967]]
(2) in paragraph (10), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''.
SEC. 904. CREDIT UNION BOARD MODERNIZATION.
Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is
amended--
(1) by striking ``monthly'' each place such term appears;
(2) in the matter preceding paragraph (1), by striking ``The
board of directors'' and inserting the following:
``(a) In General.--The board of directors'';
(3) in subsection (a) (as so designated), by striking
``shall meet at least once a month and''; and
(4) by adding at the end the following:
``(b) Meetings.--The board of directors of a Federal credit union
shall meet as follows:
``(1) With respect to a de novo Federal credit union, not
less frequently than monthly during each of the first five years
of the existence of such Federal credit union.
``(2) <<NOTE: Time periods.>> Not less than six times
annually, with at least one meeting held during each fiscal
quarter, with respect to a Federal credit union--
``(A) with a composite rating of either 1 or 2 under
the Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system); and
``(B) with a capability of management rating under
such composite rating of either 1 or 2.
``(3) Not less frequently than once a month, with respect to
a Federal credit union--
``(A) with a composite rating of either 3, 4, or 5
under the Uniform Financial Institutions Rating System
(or an equivalent rating under a comparable rating
system); or
``(B) with a capability of management rating under
such composite rating of either 3, 4, or 5.''.
SEC. 905. SYSTEMIC RISK AUTHORITY TRANSPARENCY.
(a) GAO Review.--Section 13(c)(4)(G)(iv) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as
follows:
``(iv) GAO review.--
``(I) <<NOTE: Reports.>> In
general.--The Comptroller General of the
United States shall, not later than 60
days after a determination is made under
clause (i), and again 180 days
thereafter, review and report to the
Congress on the determination under
clause (i), including--
``(aa) the basis for the
determination;
``(bb) the purpose for which
any action was taken pursuant to
such clause;
``(cc) the likely effect of
the determination and such
action on the incentives and
conduct of insured depository
institutions and uninsured
depositors;
``(dd) any mismanagement by
the executives and board of the
insured depository institution
that contributed to the failure
of the insured depository
institution;
``(ee) a review of the
compensation practices of the
insured depository institution;
[[Page 140 STAT. 968]]
``(ff) any supervisory or
regulatory shortcomings with
respect to the appropriate
Federal banking agency of the
insured depository institution;
``(gg) any actions taken by
the Federal banking regulators,
Financial Stability Oversight
Council, Department of the
Treasury, and other relevant
financial regulators in relation
to the failure of the insured
depository institution; and
``(hh) any additional
relevant entities or activities
that may have contributed to the
failure of the insured
depository institution,
including with respect to
auditing, accounting, credit
rating agencies, investment bank
underwriters, and emergency
liquidity options such as loans
from the Federal reserve banks
or advances through the Federal
Home Loan Bank system.
``(II) Rule of construction.--
Nothing in this clause or a report
issued pursuant to this clause may be
construed to limit the authority of a
Federal agency to enforce violations of
Federal statutes, rules, or orders.''.
(b) Appropriate Federal Banking Agency Report.--Section 13(c) of the
Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by adding
at the end the following:
``(12) Appropriate federal banking agency report.--
``(A) In general.--The appropriate Federal banking
agency of an insured depository institution about which
a determination is made under paragraph (4)(G)(i) shall,
not later than 90 days after the date of such
determination, and again 210 days thereafter, submit a
report to the Congress that discloses the following:
``(i) <<NOTE: Time period.>> Subject to such
redactions as the appropriate Federal banking
agency determines appropriate to protect
personally identifiable information about
customers and other financial institutions (as
such term is defined under section 11(e)(9)(D))--
``(I) all reports of examination and
inspection that relate to the failed
insured depository institution in the
previous 3-year period;
``(II) all formal communications of
a material supervisory determination
conveyed to the failed insured
depository institution in the previous
3-year period; and
``(III) any additional exam reports
and correspondence that the appropriate
Federal banking agency determines may be
relevant to the failure of the insured
depository institution.
``(ii) An examination of any mismanagement by
the executives and board of the insured depository
institution that contributed to the failure of the
insured depository institution.
``(iii) Any supervisory or regulatory
shortcomings by such appropriate Federal banking
agency with respect to the insured depository
institution.
[[Page 140 STAT. 969]]
``(iv) Any dynamics that the appropriate
Federal banking agency determines may have
contributed to the failure of the insured
depository institution.
``(v) Any supervisory, regulatory, or
legislative recommendations such appropriate
Federal banking agency may have to improve the
safety and soundness of similarly situated insured
depository institutions, the banking system, and
financial stability.
``(B) Protection of sensitive information.--
``(i) Effect on privilege.--The provision of
any information by a Federal banking agency under
this paragraph may not be construed as--
``(I) waiving, destroying, or
otherwise affecting any privilege
applicable to the information; or
``(II) waiving any exemption
applicable to the information under
section 552 of title 5, United States
Code (commonly known as the `Freedom of
Information Act').
``(ii) <<NOTE: Determinations.>>
Transparency.--
``(I) <<NOTE: Publication.>> In
general.--A Federal banking agency shall
publish materials contained in a report
required under subparagraph (A) to the
fullest extent possible to promote
transparency.
``(II) Consultation on omitting
materials.--If a Federal banking agency
determines particular materials
described under subclause (I) should not
be published, the Federal banking agency
shall consult with the chair and ranking
member of the Committee on Financial
Services of the House of Representatives
and the chair and ranking member of the
Committee on Banking, Housing, and Urban
Affairs of the Senate.
``(III) Omitting materials.--If,
after the consultation required under
subclause (II), the Federal banking
agency determines there is a substantial
public interest in not publishing such
materials, the Federal banking agency
shall provide those materials to the
Committee on Financial Services of the
House of Representatives and the
Committee on Banking, Housing, and Urban
Affairs of the Senate with a written
explanation describing the reasons for
not publishing those materials.
``(iii) <<NOTE: Definition.>> Privilege.--For
purposes of this subparagraph, the term
`privilege' includes any work-product, attorney-
client, or other privilege recognized under
Federal or State law.
``(C) Report extension.--A Federal banking agency
may extend a deadline described under subparagraph (A)
for an additional 60 days, if the Federal banking
agency--
``(i) faces ongoing circumstances that require
the Federal banking agency to prioritize
activities to promote stability of the United
States banking system; and
``(ii) <<NOTE: Notification.>> notifies the
Congress of such extension and the reasons for
such extension.
[[Page 140 STAT. 970]]
``(D) Consolidated reports.--A Federal banking
agency may consolidate multiple reports required under
this paragraph so long as the individual reports being
consolidated all meet the timing requirements under this
paragraph.
``(E) Rule of construction.--Nothing in this
paragraph or reports or materials provided pursuant to
this paragraph may be construed to limit the authority
of a Federal agency to enforce violations of Federal
statutes, rules, or orders.''.
SEC. 906. ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL FINANCIAL
INSTITUTIONS.
Section 308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended by adding at
the end the following new subsection:
``(d) Financial Agent Mentor-protege Program.--
``(1) <<NOTE: Guidance. Regulations.>> In general.--The
Secretary shall establish a program to be known as the
`Financial Agent Mentor-Protege Program' (in this subsection
referred to as the `Program') under which a financial agent
designated by the Secretary or a large financial institution may
serve as a mentor, under guidance or regulations prescribed by
the Secretary, to a small financial institution to allow such
small financial institution--
``(A) to be prepared to perform as a financial
agent; or
``(B) to improve capacity to provide services to the
customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events to
promote the participation of financial agents, large financial
institutions, and small financial institutions in the Program at
least once a year.
``(3) <<NOTE: Guidance. Regulations.>> Exclusion.--The
Secretary shall issue guidance or regulations to establish a
process under which a financial agent, large financial
institution, or small financial institution may be excluded from
participation in the Program.
``(4) Report.--The Secretary shall report to Congress
information pertaining to the Program, including--
``(A) the number of financial agents, large
financial institutions, and small financial institutions
participating in such Program; and
``(B) the number of outreach events described in
paragraph (2) held during the year covered by such
report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent'
means any national banking association designated by the
Secretary to be employed as a financial agent of the
Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity regulated by the
Comptroller of the Currency, the Board of Governors of
the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit Union
Administration that has total consolidated assets
greater than or equal to $50,000,000,000.
``(C) Rural depository institution.--The term `rural
depository institution' means a depository institution
(as
[[Page 140 STAT. 971]]
defined in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813))--
``(i) with total consolidated assets of less
than $10,000,000,000; and
``(ii) located in a rural area, as defined
under section 1026.35(b)(2)(iv)(A) of title 12,
Code of Federal Regulations.
``(D) Secretary.--The term `Secretary' means the
Secretary of the Treasury.
``(E) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the Comptroller
of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit
Union Administration that has total consolidated
assets less than or equal to $2,000,000,000;
``(ii) a minority depository institution; or
``(iii) a rural depository institution.''.
SEC. 907. <<NOTE: 12 USC 1811 note.>> AMERICAN ACCESS TO BANKING.
(a) Streamlining Application Process and Review of Capital Raising
by De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall--
(A) for the purpose of streamlining the process of
applying to become a de novo regulated institution,
conduct a review of any application forms related to
such process;
(B) to the extent practicable, gather information
needed from applicants seeking to become a de novo
regulated institution from other Federal Government
agencies or public sources to minimize information
requests of such applicants; and
(C) in consultation with the Securities and Exchange
Commission, review how de novo regulated institutions
raise capital while maintaining investor protections,
including the impact of--
(i) general capital raising restrictions; and
(ii) capital raising restrictions related to
individuals who are not accredited investors.
(2) <<NOTE: Time periods. Public information. Web
posting.>> Report.--Not later than 1 year after the date of
enactment of this Act, and annually for 5 years thereafter, each
of the Federal financial institutions regulatory agencies shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate and publish on a public website of such
agency a report that contains--
(A) a description of the actions taken by such
agency pursuant to paragraph (1); and
(B) as appropriate, any administrative or
legislative recommendations with respect to the purpose
described in paragraph (1)(C).
(b) Improving Communication With De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall, at the request of an applicant to
become a de novo regulated institution, designate an employee
[[Page 140 STAT. 972]]
of the agency as a caseworker, who may perform such duty in
addition to the other duties of the employee.
(2) Caseworker duties.--Each caseworker described in
paragraph (1) shall, to the maximum extent practicable--
(A) meet with the lead organizers applying to become
a de novo regulated institution to provide a tutorial
with respect to the application process; and
(B) be the primary point of contact of the
respective Federal financial institutions regulatory
agency for such organizers during the application
process.
(3) New caseworker.--Each agency described in paragraph (1)
may designate a new caseworker, as appropriate, to support
continuity based on staffing and responsibilities assigned to
the current caseworker.
(c) De Novo Mentor-protege Partnerships.--
(1) <<NOTE: List.>> In general.--At the request of an
institution that seeks to become a de novo regulated
institution, each of the Federal financial institutions
regulatory agencies shall, to the maximum extent practicable,
provide a list to such institution of similar types of
institutions that--
(A) were recently approved to become a de novo
regulated institution; and
(B) are interested in volunteering to serve as a
mentor to provide advice about the de novo application
process.
(2) <<NOTE: Deadline. Public information.>> Mentorship
information.--Not later than 1 year after the date of enactment
of this Act, each of the Federal financial institutions
regulatory agencies shall provide public information and
directions on how an institution may request a mentor or serve
as a mentor as described in paragraph (1).
(d) State and Stakeholder Engagement Plan.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall develop a plan to--
(A) regularly consult with State regulators to
promote cooperation between State and Federal banking
and credit union agencies in the creation of de novo
regulated institutions, including responding to any
State regulator that requests assistance on how a State-
chartered financial institution can request Federal
insurance;
(B) regularly consult with stakeholders, including
applicants to become de novo regulated institutions and
recently approved regulated institutions, to inform any
reforms that may support the creation of de novo
regulated institutions, including rural institutions,
community development financial institutions, and
minority depository institutions; and
(C) provide guidance, training material, and regular
workshops to assist any interested parties to understand
such agencies' processes.
(2) Submission to congress.--
(A) <<NOTE: Deadline. Time period.>> In general.--
Not later than 2 years after the date of enactment of
this Act, and every 5 years thereafter, each of the
Federal financial institutions regulatory agencies shall
submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate the respective
plan of such agency described in paragraph (1).
[[Page 140 STAT. 973]]
(B) Public comment.--With respect to developing the
plan described in paragraph (1), each of the Federal
financial institutions regulatory agencies shall--
(i) provide an opportunity for public
comments; and
(ii) take such public comments into
consideration.
(e) Definitions.--
(1) In general.--In this section:
(A) Federal banking agency.--The term ``Federal
banking agency'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(B) Federal financial institutions regulatory
agencies.--The term ``Federal financial institutions
regulatory agencies'' has the meaning given the term in
section 1003 of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3302).
(C) Regulated institution.--The term ``regulated
institution'' means--
(i) with respect to a Federal banking agency,
a depository institution (as such term is defined
in section 3 of the Federal Deposit Insurance Act
(12 U.S.C. 1813)) for which the Federal banking
agency is the appropriate Federal banking agency
(as such term is defined in such section 3); and
(ii) with respect to the National Credit Union
Administration, an insured credit union (as such
term is defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752)).
(D) State.--The term ``State'' means each of the
several States, the District of Columbia, and each
territory of the United States.
(E) State regulator.--The term ``State regulator''
means--
(i) with respect to a Federal banking agency,
a State banking regulator; and
(ii) with respect to the National Credit Union
Administration, the State regulatory agency having
jurisdiction over a State credit union (as such
term is defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752)).
(2) Rule of construction.--For purposes of this section, the
process of applying to become a de novo regulated institution
shall include the process of applying for Federal deposit
insurance, Federal share insurance, or membership in the Federal
Reserve System.
SEC. <<NOTE: 12 USC 1811 note.>> 908. PROMOTING NEW BANK
FORMATION.
(a) <<NOTE: Regulations. Time period.>> Pilot Phase-in of Capital
Standards.--The Federal banking agencies may issue rules that provide
for a 2-year phase-in period for a qualifying community bank or its
depository institution holding company to meet any Federal capital
requirements that would otherwise be applicable to the qualifying
community bank or its depository institution holding company, beginning
on--
(1) the date on which the qualifying community bank became
an insured depository institution; or
[[Page 140 STAT. 974]]
(2) in the case of its depository institution holding
company, the date on which the qualifying community bank of the
depository institution holding company became an insured
depository institution.
(b) <<NOTE: Time periods.>> Pilot Changes to Business Plans.--
(1) In general.--During the 2-year period beginning on the
date on which a qualifying community bank became an insured
depository institution, the qualifying community bank or its
depository institution holding company may request to deviate
from a business plan that has been approved by the appropriate
Federal banking agency by submitting a request to such agency
pursuant to this section.
(2) Review of changes.--The appropriate Federal banking
agency shall, not later than the end of the 180-day period
beginning on the receipt of a request under paragraph (1)--
(A) approve, conditionally approve, or deny such
request; and
(B) notify the applicant of such decision and, if
the agency denies the request--
(i) provide the applicant with the reason for
such denial; and
(ii) suggest changes to the request that, if
adopted, would allow the agency to approve such
request.
(3) Result of failure to act.--If the appropriate Federal
banking agency fails to approve or deny a request within the 90-
day period required under paragraph (2), such request shall be
deemed to be approved.
(c) Pilot Program Study.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on the impact of the pilot program carried out
pursuant to subsections (a) and (b) of this section on the
formation of de novo insured depository institutions, including
such institutions which are rural depository institutions,
community development financial institutions, and minority
depository institutions, taking into account safety and
soundness, promoting competition, and expanding access to
affordable financial products and services to underserved
communities.
(2) Report to congress.--Not later than December 31, 2031,
the Federal banking agencies shall, jointly, issue a report to
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing all findings and determinations
made in carrying out the study required under paragraph (1).
(d) Study on De Novo Insured Depository Institutions.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on--
(A) <<NOTE: Time period.>> the principal causes for
the low number of de novo insured depository
institutions in the 10-year period ending on the date of
enactment of this subsection;
(B) ways to promote more de novo insured depository
institutions in areas currently underserved by insured
depository institutions; and
(C) ways to ensure de novo depository institutions,
including institutions which are rural depository
institutions, community development financial
institutions, and
[[Page 140 STAT. 975]]
minority depository institutions, can utilize the
Community Bank Leverage Ratio.
(2) <<NOTE: Time period.>> Report to congress.--Not later
than the end of the 1-year period beginning on the date of
enactment of this Act, the Federal banking agencies shall,
jointly, issue a report to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate containing all findings
and determinations made in carrying out the study required under
paragraph (1).
(e) Definitions.--In this section:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given the
term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(2) Depository institution.--The term ``depository
institution'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(3) Depository institution holding company.--The term
``depository institution holding company'' has the meaning given
the term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(4) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(5) Insured depository institution.--The term ``insured
depository institution'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(6) Qualifying community bank.--The term ``qualifying
community bank'' means a depository institution that--
(A) including its holding company and all of its
subsidiaries and affiliates, has total combined assets
of less than $10,000,000,000; and
(B) became an insured depository institution between
January 1, 2026, and December 31, 2028.
SEC. 909. RURAL DEPOSITORIES REVITALIZATION STUDY.
(a) Study.--The Federal banking agencies shall, jointly, carry out a
study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of depository institutions in the
United States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the Federal banking agencies that
limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo depository
institutions in rural areas.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Federal banking agencies shall, jointly, issue a report to
Congress containing all findings and determinations made in carrying out
the study required under subsection (a).
(c) Study on Rural Credit Unions.--The National Credit Union
Administration shall carry out a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of credit unions in the United
States that primarily serve rural areas; and
[[Page 140 STAT. 976]]
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the National Credit Union Administration
that limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo credit unions in
rural areas.
(d) Report on Rural Credit Unions.--Not later than 1 year after the
date of enactment of this Act, the National Credit Union Administration
shall issue a report to Congress containing all findings and
determinations made in carrying out the study required under subsection
(c).
(e) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given that term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Federal banking agencies.--The term ``Federal banking
agencies'' means the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, and the Federal Deposit
Insurance Corporation.
(3) Rural.--With respect to an area, the term ``rural'' has
the meaning given that term in section 1026.35(b)(2)(iv)(A) of
title 12, Code of Federal Regulations.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
SEC. <<NOTE: 42 USC 19521.>> 1001. HOMES ARE FOR PEOPLE, NOT
CORPORATIONS.
(a) Definitions.--In this section:
(1) Consumer reporting agency.--The term ``consumer
reporting agency'' has the meaning given the term in section 603
of the Fair Credit Reporting Act (15 U.S.C. 1681a)).
(2) Excepted purchase.--The term ``excepted purchase'' means
any purchase of a single-family home that is--
(A) newly constructed, renovated, or a rental
conversion for sale by a large institutional investor
and not as a residence rented pending sale;
(B) pursuant to a build-to-rent program where the
large institutional investor purchases, constructs, or
constructs and retains a newly constructed single-family
homes to be managed as a rental property, whether as
part of a community made up exclusively of renter-
occupied single-family homes or as part of a community
made up of single-family homes that are both owner- and
renter-occupied;
(C) pursuant to a renovate-to-rent program that--
(i) substantially rehabilitates single-family
homes that do not meet structural or core system
elements of local building codes; and
(ii) makes improvements in an aggregate dollar
amount of not less than 15 percent of the purchase
price of the single-family home;
(D) pursuant to a homeownership program that--
(i) requires rental payments and any other
fees that are not greater than those collected by
the large institutional investor on other
similarly situated single-family homes not covered
by the eligible homeownership program;
[[Page 140 STAT. 977]]
(ii) is subject to a contract between the
large institutional investor and renter that shall
be considered a consumer credit transaction
secured by a dwelling or real property;
(iii) provides for positive reporting of
rental payments to consumer reporting agencies for
any renter, who shall be informed of and opts into
such reporting; and
(iv) requires contribution of meaningful
financial support from the large institutional
investor, including price concessions, for the
purchase of the single-family home by the renter;
(E) pursuant to a program to boost homeownership
that--
(i) provides for positive reporting of rental
payments to consumer reporting agencies for any
renter, who shall be informed of and opts into
such reporting;
(ii) provides for the right of first refusal
and a 30-day ``first look'' period; and
(iii) may entail the meaningful financial
support from the large institutional investor,
including price concessions, for the purchase of a
single-family home by the renter (whether it is
the home the renter occupies or another home);
(F) in connection with the satisfaction of debts
previously contracted in good faith and where the large
institutional investor has the right to repossess the
single-family home under such contract;
(G) undertaken by a mortgage servicer, lender, or
other entity that has a legal right to a single-family
home, for the purpose of loss mitigation or compliance
with servicing or investor obligations, and not as a
long-term investment strategy, and is solely as a result
of--
(i) a foreclosure;
(ii) a deed-in-lieu of foreclosure;
(iii) enforcement of a mortgage, deed of
trust, or other security interest; or
(iv) operation of law following borrower
default;
(H) purchased from another large institutional
investor that either owned the single-family home on the
date of enactment of this Act or purchased the single-
family home in compliance with this section;
(I) purchased from an investor not covered under
this section, so long as the purchase occurred not more
than 2 years after the effective date under subsection
(f);
(J) newly constructed, renovated, or a rental
conversion that is intended and operated for occupancy
as part of a community for households with 1 or more
members aged 55 years or older, and satisfies
visitability standards established by the Secretary of
Housing and Urban Development; or
(K) purchased through a single purchase or
combination or series of purchases described in
subparagraphs (A) through (J).
(3) Large institutional investor.--
(A) In general.--The term ``large institutional
investor''--
[[Page 140 STAT. 978]]
(i) means an investment fund, corporation,
general or limited partnership, limited liability
company, joint venture, association, or other for-
profit entity that is a legal entity structured in
a manner that is not aforementioned that--
(I) is engaged, in whole or in part,
in the business of investing in, owning,
renting, managing, or holding single-
family homes; and
(II) alone or in concert with 1 or
more other entities, beginning after the
date of enactment of this Act, directly
or indirectly has investment control of
not less than 350 single-family homes in
the aggregate, not including any single-
family home purchased in an excepted
purchase made after the date of
enactment of this Act; and
(ii) does not include any local, State,
Tribal, or Federal government entity or
instrumentality thereof.
(B) Rule of construction.--For purposes of this
paragraph, an entity has direct or indirect investment
control over a single-family home if the entity--
(i) owns, or has primary authority or
fiduciary responsibility to make material
investment or management decisions relating to,
the single-family home;
(ii) is, or directly or indirectly controls,
the general partner or managing member of the
entity that owns the single-family home;
(iii) is or controls the investment manager,
management company, or investment advisor of the
entity that owns the single-family home;
(iv) owns or controls more than 25 percent of
any class of equity interests of the entity that
owns the single-family home, unless such entity is
a passive investor; or
(v) otherwise controls the entity that owns
the single-family home.
(4) Purchase.--The term ``purchase'' includes any purchase,
transfer, or other acquisition of a single family home,
including through mergers, acquisitions, construction,
foreclosures, or bulk purchases, whether or not for cash
consideration.
(5) Single-family home.--The term ``single-family home''--
(A) means a structure that contains 2 or fewer
dwelling units that are each intended for residential
occupancy by a single household; and
(B) does not include a manufactured home, as defined
in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C.
5402).
(b) Prohibition on Purchases by Large Institutional Investors.--
(1) <<NOTE: Contracts.>> In general.--No large institutional
investor may purchase, or enter into a contract to directly or
indirectly purchase, any single-family home.
(2) Exceptions.--The prohibition under paragraph (1) shall
not apply to--
(A) any excepted purchase; or
[[Page 140 STAT. 979]]
(B) any purchase of a single-family home in
connection with a restructuring or other reorganization
of ownership of single-family homes that were owned or
purchased on or before the date of enactment of this
Act.
(3) Rule of construction.--Nothing in this section may be
construed to--
(A) require any large institutional investor to
divest or otherwise sell any single-family home
purchased before the date of enactment of this Act; or
(B) prevent the filing of a petition, or otherwise
affect any bankruptcy proceeding, under title 11, United
States Code.
(4) Implementation.--
(A) <<NOTE: Regulations.>> In general.--In
consultation with the Secretary of Housing and Urban
Development, the Director of Federal Housing Finance
Agency, and the Chair of the Securities and Exchange
Commission, the Secretary of the Treasury may issue
regulations in accordance with the notice and comment
rulemaking procedures under section 553 of title 5,
United States Code, to carry out the purposes of this
section, including regulations to--
(i) minimize market disruptions upon
identifying a risk of material negative impact on
the housing market, including an impact on the
ability of market participants to dispose of
single-family homes in an orderly fashion; and
(ii) mitigate, to the extent possible,
negative impacts on consumers and communities.
(B) Rule of construction.--For the avoidance of
doubt, no regulation issued under subparagraph (A) may
amend the definitions of the terms defined under
subsection (a), including to--
(i) alter the scope of excepted purchases in a
manner that would undermine the goal of expanding
the number of single-family homes available to
individual households for purchase;
(ii) alter any type of excepted purchase in a
manner that would undermine the goal of expanding
the number of single-family homes available to
individual households for purchase;
(iii) add any category of large institutional
investor as an eligible class if not determined by
this section; or
(iv) alter the quantitative threshold in the
definition of ``large institutional investor''.
(c) Renter Outreach Resource Established.--
(1) <<NOTE: Deadline. Public information. Website.>> In
general.--The Secretary of Housing and Urban Development (in
this subsection referred to as the ``Secretary'') shall, not
later than 180 days after the date of enactment of this Act,
establish a renter outreach resource that consists of a toll-
free telephone number and a public website designed to assist
renters of residential properties owned by a large institutional
investor in--
(A) <<NOTE: Notification.>> notifying Federal
agencies about disputes relating to the rental of such
properties, including disputes about potential
violations of Federal law;
[[Page 140 STAT. 980]]
(B) sharing information about such disputes with
other Federal agencies, including other Federal agencies
that manage similar disputes;
(C) monitoring such disputes; and
(D) resolving such disputes, to the extent
practicable.
(2) Response to outreach.--
(A) <<NOTE: Procedures.>> In general.--The
Secretary shall establish reasonable procedures to--
(i) promptly respond, in writing where
appropriate, to a renter who provides information
to the Secretary about a dispute using the renter
outreach resource established under paragraph (1);
and
(ii) document such responses.
(B) Contents.--Responses provided under subparagraph
(A) shall include, where appropriate, information
about--
(i) steps that have been taken by the
Secretary or another Federal agency in response to
the information about the dispute provided by the
renter, including determining the appropriate
large institutional investor involved as described
in paragraph (3);
(ii) any responses received by the Secretary
or another Federal agency from the large
institutional investor related to such dispute;
and
(iii) any outcome of the dispute, to the
extent practicable.
(3) Investigation of potential violations of federal law.--
(A) In general.--The Secretary shall promptly
process and investigate any information relating to a
dispute received through the renter outreach resource
established under paragraph (1) about a potential
violation of Federal law that is received from a renter
of a residential property owned by a large institutional
investor through the renter outreach resource
established under paragraph (1), including--
(i) requesting information from a large
institutional investor;
(ii) determining the appropriate large
institutional investor involved in the dispute;
and
(iii) sharing information about such potential
violation of Federal law with any relevant Federal
agencies, as the Secretary may determine
appropriate.
(B) Responses to requests for information.--Upon
request for information made pursuant to subparagraph
(A), the Secretary shall provide a large institutional
investor the opportunity to respond, including regarding
whether such large institutional investor currently owns
the property described in such request for information.
(4) Information for appropriate state authority.--When the
Secretary receives information about a potential violation of
State law or about a dispute received through the renter
outreach resource, from a renter of a residential property owned
by a large institutional investor through the renter outreach
resource established under paragraph (1), the Secretary shall,
at a minimum, provide the renter with contact
[[Page 140 STAT. 981]]
information for the appropriate, State-specific, State authority
authorized to process and investigate such information.
(5) Notice about renter outreach resource.--Each large
institutional investor shall--
(A) <<NOTE: Time period.>> provide to each renter
of a residential property owned by such investor at the
time such renter first occupies such home and annually
thereafter--
(i) written notice about the renter outreach
resource established under paragraph (1); and
(ii) <<NOTE: Deadline.>> the name, phone
number, and email address of the person or entity
responsible for receiving and addressing renter
disputes for the large institutional investor, and
update the name, phone number, and email address
within 30 days if such information changes prior
to the subsequent time at which such notice is
required to be provided; and
(B) <<NOTE: Web posting.>> prominently feature
information about the renter outreach resource
established under paragraph (1) on a public website of
such investor that is accessible by such renter.
(6) Annual report to the congress.--
(A) In general.--The Secretary shall, not later than
March 31 of each year, submit to the Congress a public
report which analyzes and aggregates the information
received or obtained pursuant to this subsection during
the prior year that includes--
(i) information about the types and the number
of disputes received about potential violations of
Federal law;
(ii) information about the types and the
number of disputes received about potential
violations of State law;
(iii) where practicable, information about the
resolution of such disputes; and
(iv) information provided to the Secretary of
Housing and Urban Development under paragraph (8).
(B) Anonymization of data.--Any data included in a
report that is submitted under this paragraph shall be
aggregated or anonymized so as to protect any individual
dispute or personally identifiable information received
through the renter outreach resource.
(7) <<NOTE: Compliance.>> Protection of personal
information.--In complying with the requirements of this
subsection, the Secretary shall take such measures as the
Secretary determines are necessary to provide for the protection
of personally identifiable information received through the
renter outreach resource in a manner that conforms with existing
standards for protection of the confidentiality of personally
identifiable information.
(8) <<NOTE: Deadlines.>> Annual notification.--Not later
than 180 days after the date of the enactment of this Act, and
not later than December 31st of each year thereafter, each
person or entity that satisfies the definition of a large
institutional investor, as such term is defined in subsection
(a), shall--
(A) notify the Secretary each year whether such
owner is a large institutional investor as defined in
subsection (a); and
[[Page 140 STAT. 982]]
(B) in such notification, identify how many single-
family homes such large institutional investor has
direct or indirect investment control of as of the date
of the submission of such notice, and the city and State
where each such single-family home is located, unless
such large institutional investor owns 10 or fewer
single-family homes in such city.
(d) Enforcement.--
(1) Civil penalties.--The Secretary of the Treasury, or the
Attorney General at the request of the Secretary of the
Treasury, may bring an action against a large institutional
investor that violates subsection (b) for a civil penalty in an
amount that is not more than $1,000,000 per violation, or 3
times the purchase price of the property involved, whichever is
greater.
(2) Transfer to hud for homeownership expansion
activities.--For fiscal <<NOTE: Time periods.>> year 2027 and
each fiscal year thereafter, to the extent and in the amounts
provided in advance in appropriations Acts, civil penalties
assessed under this section shall be transferred to and
available to the Secretary of Housing and Urban Development to
provide additional funding for the HOME Investment Partnerships
program under subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12741 et seq.), to be
allocated in accordance with the formula under that program, for
new construction, acquisition, and rehabilitation of single-
family homes and to provide assistance grants to first-time
homebuyers, which may be for downpayments, closing costs, and
interest rate buydowns.
(e) Studies on Large Institutional Investors.--
(1) Gao report.--Not later than 2 years after the date on
which the prohibition under subsection (b)(1) takes effect, and
again not later than 10 years after that date, the Comptroller
General of the United States shall submit to the Committee on
Banking, Housing and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report on--
(A) the impact of the ownership by large
institutional investors of single-family homes on
housing availability and affordability for renters and
homebuyers; and
(B) the effectiveness of this section in reducing
demand by large institutional investors for single-
family homes and expanding homeownership for renters and
homebuyers.
(2) Hud report.--Not later than 2 years after the date on
which the prohibition under subsection (b)(1) takes effect, and
again not later than 10 years after that date, the Secretary of
the Housing and Urban Development, in consultation with the
Secretary of the Treasury, the Administrator of the Rural
Housing Service, the Executive Director of the Loan Guaranty
Service of the Department of Veterans Affairs, the Chair of
Securities and Exchange Commission, and the Director of the
Federal Housing Finance Agency, shall submit to the Committee on
Banking, Housing and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report on--
(A) whether there should be adjustments to the
definition of the term ``large institutional investor'';
[[Page 140 STAT. 983]]
(B) the financial impact of this section on large
institutional investors, renters, and homebuyers; and
(C) any legislative recommendations regarding ways
to improve the authorities provided under this section
to increase the supply and affordability of single-
family homes for purchase by individual homebuyers.
(3) Sense of congress.--It is the sense of Congress that--
(A) this section is intended to expand the number of
single-family homes available to individuals for
purchase and is aimed at preserving and expanding the
supply of single-family homes available to individuals;
and
(B) any further study on the effectiveness of this
section and any legislative recommendations therefrom
should consider this sense of Congress.
(f) Effective Date.--The requirements and prohibitions under
subsections (b) and (d) of this section--
(1) shall take effect on the date that is 180 days after the
date of enactment of this Act; and
(2) are repealed on the date that is 15 years after the
effective date under paragraph (1).
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
SEC. 1101. CENTRAL BANK DIGITAL CURRENCY.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by
inserting after section 16 (12 U.S.C. 411 et seq.) the following:
``SEC. 16A. <<NOTE: 12 USC 423.>> CENTRAL BANK DIGITAL CURRENCY.
``(a) Definitions.--In this section:
``(1) Central bank digital currency.--The term `central bank
digital currency' means a digital asset that--
``(A) is denominated in United States dollars;
``(B) is a United States currency;
``(C) is a direct liability of the Federal Reserve
System; and
``(D) is widely available to the general public.
``(2) Digital asset.--The term `digital asset' has the
meaning given the term in section 2 of the GENIUS Act (12 U.S.C.
5901).
``(b) Prohibition.--Except as provided in subsection (c), the Board
of Governors of the Federal Reserve System or a Federal reserve bank may
not issue or create a central bank digital currency or any digital asset
that is substantially similar to a central bank digital currency
directly or indirectly through a financial institution or other
intermediary.
``(c) Exception.--Subsection (b) shall not prohibit any dollar-
denominated currency that is open, permissionless, and private, and
fully preserves the privacy protections of United States coins and
physical currency.
``(d) Sunset.--This provisions of this section shall cease to be
effective on December 31, 2030.
``(e) Rule of Construction.--Nothing in this section shall be
construed to allow the Board of Governors of the Federal Reserve System
to issue a central bank digital currency or any digital
[[Page 140 STAT. 984]]
asset that is substantially similar to a central bank digital currency
directly or indirectly absent authorization by an Act of Congress.''.
TITLE XII--MISCELLANEOUS
SEC. 1201. <<NOTE: 42 USC 19531.>> SEVERABILITY.
If any provision of this Act, or the application thereof to any
person or circumstance, is held invalid, the remainder of the Act, and
the application of such provisions to other persons or circumstances,
shall not be affected thereby.
SEC. 1202. NO ADDITIONAL FUNDS AUTHORIZED.
No additional funds are authorized to be appropriated to carry out
the requirements of this Act or any amendment made by this Act.
[Note by the Office of the Federal Register: The foregoing Act, having
been presented to the President of the United States on Monday, June 29,
2026, and not having been returned by him to the House of Congress in
which it originated within the time prescribed by the Constitution of
the United States, has become law without his signature on July 11,
2026.]
LEGISLATIVE HISTORY--H.R. 6644:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 119-457, Pt. 1 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 172 (2026):
Feb. 9, considered and passed House.
Mar. 4, 5, 10-12, considered and passed Senate, amended.
May 20, House concurred in Senate amendment with an
amendment pursuant to H. Res. 1299.
June 16, 18, 22, Senate considered and concurred in House
amendment with an amendment.
June 23, House concurred in Senate amendment.
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