Restoring Communities Left Behind Act
This bill directs the Department of Housing and Urban Development to establish a competitive grant program for local partnerships to carry out neighborhood revitalization support activities in economically distressed areas. Eligible activities include
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 837 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 837
To direct the Secretary of Housing and Urban Development to establish a
grant program to help revitalize certain localities, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2023
Ms. Kaptur (for herself, Ms. Tlaib, Ms. Norton, Ms. McCollum, Mr.
Grijalva, Mrs. Beatty, Mr. Takano, Mrs. Dingell, Ms. Blunt Rochester,
Mr. Garcia of Illinois, Ms. Ross, and Ms. Bush) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To direct the Secretary of Housing and Urban Development to establish a
grant program to help revitalize certain localities, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Restoring Communities Left Behind
Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) As the Nation continues to feel the devastating
economic impacts of Coronavirus Disease 2019 (COVID-19), many
urban and rural communities are still suffering from the
effects of underwater mortgages, vacancy, abandoned properties,
blight, aging housing stock, properties with deferred
maintenance and harmful materials such as lead, asbestos, and
mold, unemployment, and population loss.
(2) While some cities and counties struggle with
disinvestment and population loss, there are also pockets of
economic distress in otherwise prosperous, growing areas.
(3) Investments targeted to these communities left behind
will be critical to ensure equitable economic recovery, job
creation, and housing and neighborhood infrastructure
revitalization.
(4) The need to revitalize neighborhoods is greater than
what can be supported with existing local tax bases.
(5) Communities continue to suffer from the impact of
governmental policies and private sector practices that forbade
or discouraged mortgage lending in neighborhoods having
significant minority populations.
(6) Many State and local governments, land banks, and
nonprofit organizations across the United States have responded
to the housing crisis by creating cost-effective strategies to
revitalize neighborhoods.
(7) 2019 data from the United States Census Bureau shows
that non-Hispanic, White households have an average net worth
of $187,300, while Black households have an average net worth
of $14,100, and Hispanic households have an average net worth
of $31,700.
(8) Housing equity is a significant portion of Black and
Hispanic households' net worth, making up nearly 59 percent of
Black households' net worth, 58 percent of Hispanic households'
net worth, and 43 percent of White households' net worth,
according to the Urban Institute's calculations from the 2020
Survey of Consumer Finances.
(9) The 2008 Great Recession and the COVID-19 Recession
have exacerbated the racial wealth gap.
(10) Funding innovative local neighborhood strategies will
allow the United States to close the racial wealth gap, ensure
equitable access to housing and economic mobility, and counter
the lasting legacy of redlining policies.
(11) Despite the strong requirement to affirmatively
furthering fair housing under the Fair Housing Act, the lack of
accountability measures implemented by the Department of
Housing and Urban Development to ensure equitable use of
housing and community development dollars in Federal programs
has allowed for the perpetuation of the legacy of redlining and
neighborhood disinvestment.
(12) It is imperative that the Federal Government make
funding available for the best local strategies to increase
homeownership and preserve home equity in impacted areas,
access to safe and affordable rental housing, economic growth,
job creation, and to build on local assets to improve
communities in ways that affirmatively further fair housing.
SEC. 3. COMPETITIVE GRANT PROGRAM.
(a) Establishment.--Not later than the expiration of the 120-day
period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall establish a program to
award competitive grants to eligible local partnerships to carry out
more than one neighborhood revitalization support activity in an
eligible locality.
(b) Criteria.--
(1) Eligible local partnership.--A local partnership is
eligible to receive a grant under the program established under
this section if it meets the following requirements:
(A) The local partnership includes a national or
local nonprofit organization with expertise in
community planning, engagement, organizing,
development, or neighborhood revitalization and at
least one of the following entities:
(i) A city or county government.
(ii) A land bank.
(iii) A fair housing enforcement
organization (as such term is defined in
section 561 of the Housing and Community
Development Act of 1987 (42 U.S.C. 3616a)).
(iv) An anchor institution.
(v) A nonprofit organization.
(vi) A State housing finance agency (as
such term is defined in section 106(h) of the
Housing and Urban Development Act of 1968 (12
U.S.C. 1701x(h))).
(vii) A community development financial
institution (as such term is defined in section
103(5) of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C.
4702(5))).
(viii) A public housing agency (as such
term is defined in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C.
1437a(b))).
(B) Such local partnership will use a grant awarded
under this section to carry out neighborhood
revitalization support activities in furtherance of a
neighborhood revitalization strategy for eligible
localities.
(2) Eligible locality.--For the purposes of this section,
an eligible locality is a geographic area or areas at the
neighborhood or county level that meet at least four of the
following objective criteria of economic distress:
(A) Dwelling unit sales prices are lower than the
cost to acquire and rehabilitate, or build, a new
dwelling unit.
(B) High proportions of residential and commercial
properties are vacant due to foreclosure, eviction,
abandonment, or other causes.
(C) Low rates of homeownership.
(D) Racial disparities in homeownership rates.
(E) High rates of poverty.
(F) High rates of unemployment and underemployment.
(G) Population loss.
(H) Lack of private sector lending on fair and
competitive terms for individuals to purchase homes or
start small businesses.
(I) Other indicators of economic distress, such as
the lack of housing affordability, stemming from long-
standing government policies and private sector
practices that prevented mortgage lending in some
communities, such as redlining.
The Secretary shall establish thresholds for the criteria of
economic distress under this paragraph.
(3) Neighborhood revitalization support activities.--For
purposes of this section, neighborhood revitalization support
activities are the following:
(A) Providing assistance to existing residents
experiencing economic distress or at risk of
displacement with homeowner rehabilitation assistance,
weatherization, improved housing accessibility and
livability for seniors and persons with disabilities,
energy efficiency improvements, refinancing, housing
counseling certified by the Secretary, including loss
mitigation counseling, property tax relief, clearing
and obtaining formal title, addressing outstanding
housing-related expenses, or other activities that the
Secretary determines are appropriate.
(B) Purchasing non-performing mortgages to assist
existing homeowners and advance neighborhood stability.
(C) Supporting the purchase and redevelopment of
vacant, abandoned, or distressed properties to create
affordable rental housing, homeownership or shared
equity homeownership opportunities, mixed-use
properties, or commercial properties. Properties
supported with assistance under this subparagraph may
be converted between rental and homeownership,
including shared equity homeownership, upon termination
of the lease or transfer of the property during the
relevant period of affordability to ensure local
community needs are met, properties do not sit vacant,
and affordability is preserved.
(D) Providing pre-purchase counseling through
housing counselors certified by the Secretary for
neighborhood revitalization support activities that
provide homeownership opportunities.
(E) Providing down payment assistance to
prospective homebuyers.
(F) Establishing and operating community land
trusts to provide affordable rental and homeownership
opportunities, including shared equity homeownership
opportunities.
(G) Demolishing abandoned or distressed structures,
but only if such activity is part of a strategy that
incorporates rehabilitation or new construction and
efforts to increase affordable housing and
homeownership, except that not more than 10 percent of
any grant made under this section may be used for
activities under this subparagraph unless the Secretary
determines that such use is to replace units in an
effort to increase affordable housing or homeownership.
(H) Establishing or operating land banks to
maintain, acquire, redevelop, or sell properties that
are abandoned or distressed. Preference among
applications proposing activities under this
subparagraph shall be given to applications that
promote distribution of properties for affordable
housing and small businesses.
(I) Improving parks, sidewalks, street lighting,
and other neighborhood improvements that impact quality
of life in the targeted neighborhoods, except that not
more than 5 percent of any grant made under this
section may be used for activities under this
subparagraph.
(J) In connection with any other eligible activity
under this paragraph, working with resident leaders and
community groups to undertake community planning,
outreach, and neighborhood engagement, consistent with
the goals of increasing homeownership, stabilizing
neighborhoods, reducing vacancy rates, creating jobs,
increasing or stabilizing residential and commercial
property values, and meeting other neighborhood needs,
except that not more than 10 percent of any grant made
under this section may be used for activities under
this subparagraph.
(4) Affordability terms.--
(A) Rental units.--In the case of property assisted
pursuant to paragraph (3) containing any dwelling units
that are made available for rental--
(i) such units shall be available for
rental only by a household having an income
that does not exceed 60 percent of the median
income for the area in which such unit is
located;
(ii) such units shall remain affordable for
at least 30 years;
(iii) such property may be a mixed-use
property; and
(iv) such unit shall be maintained in
habitable condition, as defined by the locality
in which the property is located.
(B) Homeownership units.--In the case of property
assisted pursuant to paragraph (3) consisting of a
dwelling unit, or containing any dwelling units, made
available for homeownership, such unit or units--
(i) shall be available for purchase only by
a household having an income that does not
exceed 120 percent of the median income for the
area in which such unit is located;
(ii) if made available through a shared
equity homeownership program, shall remain
affordable for at least 30 years; and
(iii) if not made available through a
shared equity homeownership program--
(I) shall remain affordable for a
period of years as determined by the
partnership, which shall not be shorter
than 5 years from the sale of the unit;
and
(II) shall be subject to resale or
recapture provisions that--
(aa) are established by the
partnership to ensure that the
affordability term may be met
or funds may be redeployed for
neighborhood revitalization
support activities;
(bb) may be waived in cases
of hardship or market
depreciation; and
(cc) provide that, in the
case of a resale, the
partnership may maintain
preemptive purchase options in
order to sell the property to
another income qualified
purchaser.
If a property converts between rental and homeownership or
shared equity homeownership, the affordability terms of the new
tenure type shall be utilized upon occupancy.
(c) Applications.--
(1) In general.--To apply to receive a grant under this
section, an eligible local partnership shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Grant recipient priority selection criteria.--The
Secretary shall prioritize awarding grants based on the
following criteria:
(A) The severity of the locality's indicators of
distress under subsection (b)(2).
(B) The extent to which the activities proposed
will--
(i) in the case of rental housing, benefit
households having incomes not exceeding 30
percent of the median income for the area; and
(ii) in the case of homeownership housing,
including shared equity homeownership, benefit
households having incomes not exceeding 80
percent of the median income for the area.
(C) Whether the activities proposed will promote
affordable homeownership and the extent to which such
affordability terms will be preserved.
(D) The extent to which an eligible partnership
that includes a public housing agency will use housing
choice vouchers to support homeownership for households
at or below 60 percent of area median income.
(E) The demonstrated capacity of an eligible local
partnership to execute the proposed eligible
neighborhood revitalization support activities.
(F) The demonstrated community planning, outreach,
and engagement practices of an eligible local
partnership.
(G) The depth and breadth of the community
partnership supporting the application.
(H) The extent to which existing residents are
assisted to prevent displacement.
(I) The extent to which the proposed neighborhood
revitalization support activities would help close the
racial wealth gap by increasing minority homeownership,
ensuring equitable access to housing and economic
opportunity, and countering the ongoing legacy of
redlining policies.
(J) The extent to which development of new units
are water and energy efficient.
(K) The feasibility of the proposed neighborhood
revitalization support activities considering local
market conditions.
(L) The extent to which an application demonstrates
comprehensive community planning efforts and additional
funds in hand or committed for activities in the
geographic area that are not directly related to the
provision of affordable housing, such as support for
small, minority, and women-owned business activity in
commercial zones in the targeted neighborhoods.
(3) Geographical diversity.--The Secretary shall seek to
make grants under this section for local partnerships serving
geographically diverse areas of economic distress as defined in
subsection (b)(2), including metropolitan and underserved rural
areas.
(d) Operation Costs.--Up to 15 percent of the amount of each grant
under this section may be used by the recipient for administrative and
organizational support costs.
(e) Technical Assistance and Capacity Building.--The Secretary may
reserve up to 1 percent of any funds appropriated to carry out this
section for technical assistance activities which support grantees
under this program and 1 percent of funds from each grant awarded shall
be used to develop grantee capacity to meet the requirements under
paragraphs (1) and (2) of subsection (g).
(f) Fair Housing Protections.--Funds provided under the program
under this section may not be used to deny housing opportunities based
on the criminal or eviction history, source of income, or veteran
status of any member of a household.
(g) Accountability of Recipients.--
(1) Requirements.--The Secretary shall--
(A) require each grantee under this section to
develop and maintain a system to ensure that each
recipient of assistance uses such amounts in accordance
with this section, the regulations issued under this
section, and any requirements or conditions under which
such amounts were provided; and
(B) establish minimum requirements for agreements
between the grantee and the Secretary, regarding
assistance from grants under this section, which shall
include--
(i) appropriate periodic financial and
project reporting, record retention, and audit
requirements for the duration of the grant to
the recipient to ensure compliance with the
limitations and requirements of this section
and the regulations under this section; and
(ii) any other requirements that the
Secretary determines are necessary to ensure
appropriate grant administration and
compliance.
(2) Publicly available information.--The Secretary shall
make information regarding the results of assistance provided
with amounts from grants under this section publicly available,
which shall include at least the following information:
(A) A list of recipients of grants awarded under
this section and the amount of each such grant.
(B) A description of each neighborhood
revitalization support activity carried out by each
such recipient and the impacts associated with each
such activity, including the change in the rate of
minority and first-time homeownership.
(C) The total number of housing units acquired,
redeveloped, or produced using grant amounts under this
section.
(D) The total number of housing units for rent,
ownership, and shared equity homeownership assisted
with grant amounts under this section and the number of
bedrooms in each such unit.
(E) The percentage of housing units assisted with
grant amounts under this section that are affordable to
low-, very low-, and extremely low-income households.
(F) The number of such housing units located in
areas where the percentage of households in a racial or
ethnic minority group--
(i) is at least 20 percentage points higher
than the percentage of the population of that
minority group for the Metropolitan Statistical
Area;
(ii) is at least 20 percentage points
higher than the percentage of the population of
all minorities for the Metropolitan Statistical
Area; and
(iii) exceeds 50 percent of the population.
(G) Any other information that the Secretary of
Housing and Urban Development determines necessary to
ensure that housing outcomes and grant administration
and compliance align with the purposes of this Act.
(h) In General.--Not later than 2 years after grants under this
section are first awarded and again 3 years thereafter, the Secretary
shall submit to the appropriate congressional committees, and make
publicly available online, a report that--
(1) evaluates the impact of the program established under
this section;
(2) describes demographic changes in the eligible
localities served by grantees of grants under this section,
including changes in income, race, and ethnicity, property
values, and unemployment rates;
(3) identifies the number of housing units assisted with
grant amounts under this section located in high- and low-
poverty census tracts;
(4) identifies the number of accessible units created and
modified with grant amounts under this section and where such
units are located using the most granular location measurement
that is feasible such as at the Census block group level; and
(5) identifies where housing units assisted with grant
amounts are located in relation to community assets, including
high-performing schools and public transportation options.
(i) Definitions.--In this section:
(1) Anchor institution.--The term ``anchor institution''
means a school, a library, a healthcare provider, a community
college or other institution of higher education, or another
community support organization or entity.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the following:
(A) The Committees on Financial Services and
Appropriations of the House of Representatives.
(B) The Committees on Banking, Housing, and Urban
Affairs and Appropriations of the Senate.
(3) Community land trust.--The term ``community land
trust''' means a nonprofit organization or State or local
governments or instrumentalities that--
(A) use a ground lease or deed covenant with an
affordability period of at least 30 years or more to--
(i) make rental and homeownership units
affordable to households; and
(ii) stipulate a preemptive option to
purchase the affordable rentals or
homeownership units so that the affordability
of the units is preserved for successive
income-eligible households; and
(B) monitor properties to ensure affordability is
preserved.
(4) Land bank.--The term ``land bank'' means a government
entity, agency, or program, or a special purpose nonprofit
entity formed by one or more units of government in accordance
with State or local land bank enabling law, that has been
designated by one or more State or local governments to
acquire, steward, and dispose of vacant, abandoned, or other
problem properties in accordance with locally determined
priorities and goals.
(5) Neighborhood revitalization support activity.--The term
``neighborhood revitalization support activity'' means an
activity described in subsection (b)(3).
(6) Non-performing mortgage.--The term ``non-performing''
mortgage means a residential mortgage loan that is 90 days or
more delinquent.
(7) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 (26
U.S.C. 501(c)(3)) and is exempt from taxation under section
501(a) of such Code.
(8) Shared equity homeownership program.--
(A) In general.--The term ``shared equity
homeownership program'' means affordable homeownership
preservation through a resale restriction program
administered by a community land trust, other nonprofit
organization, or State or local government or
instrumentalities.
(B) Affordability requirements.--Any such program
under subparagraph (A) shall--
(i) provide affordable homeownership
opportunities to households; and
(ii) utilize a ground lease, deed
restriction, subordinate loan, or similar legal
mechanism that includes provisions ensuring
that the program shall--
(I) maintain the home as affordable
for subsequent very low-, low-, or
moderate-income families for an
affordability term of at least 30 years
after recordation;
(II) apply a resale formula that
limits the homeowner's proceeds upon
resale; and
(III) provide the program
administrator or such administrator's
assignee a preemptive option to
purchase the homeownership unit from
the homeowner at resale.
(j) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $5,000,000,000 for each of fiscal years
2024 through 2034.
(2) Set aside.--The Secretary shall award at least
$500,000,000 of any amounts appropriated pursuant to this
subsection to eligible local partnerships that will provide
neighborhood revitalization support activities to localities
outside of a Metropolitan Statistical Area, as designated by
the Office of Management and Budget. The priority under
subsection (c)(2)(I) (relating to matching funds) shall not
apply to amounts awarded under this paragraph.
(3) NOFA.--The Secretary shall issue a Notice of Funding
Availability for grants under this section not later than the
expiration of the 180-day period beginning upon the date of the
enactment of this Act.
SEC. 4. SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM.
There is authorized to be appropriated for grants under section 11
of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C.
12805 note) $250,000,000 for fiscal year 2024, which shall remain
available until September 30, 2034.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR H698)
Referred to the House Committee on Financial Services.
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