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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2651 Reported in Senate (RS)]
<DOC>
Calendar No. 143
119th CONGRESS
1st Session
S. 2651
To increase the supply of affordable housing in America.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 1, 2025
Mr. Scott of South Carolina, from the Committee on Banking, Housing,
and Urban Affairs, reported the following original bill; which was read
twice and placed on the calendar
_______________________________________________________________________
A BILL
To increase the supply of affordable housing in America.
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 ``Renewing Opportunity in the American
Dream to Housing Act of 2025'' or the ``ROAD to Housing Act of 2025''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--IMPROVING FINANCIAL LITERACY
Sec. 101. Reforms to housing counseling and financial literacy
programs.
TITLE II--BUILDING MORE IN AMERICA
Sec. 201. Rental assistance demonstration program.
Sec. 202. Increasing housing in opportunity zones.
Sec. 203. Housing Supply Frameworks Act.
Sec. 204. Whole-Home Repairs Act.
Sec. 205. Community Investment and Prosperity Act.
Sec. 206. Build Now Act.
Sec. 207. Better Use of Intergovernmental and Local Development (BUILD)
Housing Act.
Sec. 208. Unlocking Housing Supply Through Streamlined and Modernized
Reviews Act.
Sec. 209. Innovation Fund.
Sec. 210. Accelerating Home Building Act.
Sec. 211. Build More Housing Near Transit Act.
Sec. 212. Revitalizing Empty Structures Into Desirable Environments
(RESIDE) Act.
Sec. 213. Housing Affordability 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.
Sec. 404. Helping More Families Save Act.
Sec. 405. Choice in Affordable Housing Act.
TITLE V--PROGRAM REFORM
Sec. 501. Reforming Disaster Recovery Act.
Sec. 502. HOME Investment Partnerships Reauthorization and Improvement
Act.
Sec. 503. Rural Housing Service Reform Act.
Sec. 504. New Moving to Work cohort.
Sec. 505. Reducing Homelessness Through Program Reform Act.
Sec. 506. Incentivizing local solutions to homelessness.
TITLE VI--VETERANS AND HOUSING
Sec. 601. VA Home Loan Awareness Act.
Sec. 602. Veterans Affairs Loan Informed Disclosure (VALID) Act.
Sec. 603. Housing Unhoused Disabled Veterans 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. NeighborWorks Accountability Act.
Sec. 705. Appraisal Modernization Act.
TITLE VIII--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.
TITLE I--IMPROVING FINANCIAL LITERACY
SEC. 101. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
(a) In General.--Section 106 of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x) is amended--
(1) in subsection (a)(4)(C), by striking ``adequate
distribution'' and all that follows through ``foreclosure
rates'' and inserting ``that the recipients are geographically
diverse and include organizations that serve urban or rural
areas'';
(2) in subsection (e), by adding at the end the following:
``(6) Performance review.--The Secretary--
``(A) may conduct periodic on-site reviews; and
``(B) shall conduct performance reviews of all
participating agencies that--
``(i) consists of a review of the
participating agency's compliance with all
program requirements; and
``(ii) may take into account the agency's
aggregate counselor performance under paragraph
(7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this
paragraph, the term `covered mortgage loan' means any
loan which is secured by a first or subordinate lien on
residential real property (including individual units
of condominiums and cooperatives) designed principally
for the occupancy of between 1 and 4 families that is--
``(i) insured by the Federal Housing
Administration under title II of the National
Housing Act (12 U.S.C. 1707 et seq.); or
``(ii) guaranteed under section 184 or 184A
of the Housing and Community Development Act of
1992 (12 U.S.C. 1715z-13a, 1715z-13b).
``(B) Comparison.--For each counselor employed by
an organization receiving assistance under this section
for pre-purchase housing counseling, the Secretary may
consider the performance of the counselor compared to
the default rate of all counseled borrowers of a
covered mortgage loan in comparable markets and such
other factors as the Secretary determines appropriate
to further the purposes of this section.
``(8) Certification.--If, based on the comparison required
under paragraph (7)(B), the Secretary determines that a
counselor lacks competence to provide counseling in the areas
described in subsection (e)(2) and such action will not create
a significant loss of capacity for housing counseling services
in the service area, the Secretary may--
``(A) require continued education coupled with
successful completion of a probationary period;
``(B) require retesting if the counselor continues
to demonstrate a lack of competence under paragraph
(7)(B); and
``(C) permanently suspend an individual
certification if a counselor fails to demonstrate
competence after not fewer than 2 retesting
opportunities under subparagraph (B).'';
(3) in subsection (i)--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(3) Termination of assistance.--
``(A) In general.--The Secretary may deny renewal
of covered assistance to an organization or entity
receiving covered assistance if the Secretary
determines that the organization or entity, or the
individual through which the organization or entity
provides counseling, is not in compliance with program
requirements--
``(i) based on the performance review
described in subsection (e)(6); and
``(ii) in accordance with regulations
issued by the Secretary.
``(B) Notice.--The Secretary shall give an
organization or entity receiving covered assistance not
less than 60 days prior written notice of any denial of
renewal under this paragraph, and the determination of
renewal shall not be finalized until the end of that
notice period.
``(C) Informal conference.--If requested in writing
by the organization or entity within the notice period
described in subparagraph (B), the organization or
entity shall be entitled to an informal conference with
the Deputy Assistant Secretary of Housing Counseling on
behalf of the Secretary at which the organization or
entity may present for consideration of specific
factors that the organization or entity believes were
beyond the control of the organization or entity and
that caused the failure to comply with program
requirements, such as a lack of lender or servicer
coordination or communication with housing counseling
agencies and individual counselors.''; and
(4) by adding at the end the following:
``(j) Offering Foreclosure Mitigation Counseling.--
``(1) Covered mortgage loan defined.--In this subsection,
the term `covered mortgage loan' means any loan which is
secured by a first or subordinate lien on residential real
property (including individual units of condominiums) or stock
or membership in a cooperative ownership housing corporation
designed principally for the occupancy of between 1 and 4
families that is--
``(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
``(B) guaranteed under section 184 or 184A of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z-13a, 1715z-13b);
``(C) made, guaranteed, or insured by the
Department of Veterans Affairs; or
``(D) made, guaranteed, or insured by the
Department of Agriculture.
``(2) Opportunity for borrowers.--A borrower with respect
to a covered mortgage loan who is 30 days or more delinquent on
payments for the covered mortgage loan shall be given an
opportunity to participate in available housing counseling.
``(3) Cost.--If the requirements of sections 202(a)(3) and
205(f) of the National Housing Act (12 U.S.C. 1708(a)(3),
1711(f)) are met, the fair market rate cost of counseling for
delinquent borrowers described in paragraph (2) with respect to
a covered mortgage loan described in paragraph (1)(A) shall be
paid for by the Mutual Mortgage Insurance Fund, as authorized
under section 203(r)(4) of the National Housing Act (12 U.S.C.
1709(r)(4)).''.
TITLE II--BUILDING MORE IN AMERICA
SEC. 201. RENTAL ASSISTANCE DEMONSTRATION PROGRAM.
The language under the heading ``Rental Assistance Demonstration''
in the Department of Housing and Urban Development Appropriations Act,
2012 (Public Law 112-55; 125 Stat. 673) is amended--
(1) in the second proviso, by striking ``until September
30, 2029'' and inserting ``for fiscal year 2012 and each fiscal
year thereafter'';
(2) by striking the fourth proviso;
(3) in the twentieth proviso, as so designated before the
date of enactment of this Act, by striking ``or other means:''
and inserting ``or other means, including the adoption of a
mandatory tenant lease and management plan addendum for a
property with assistance converted, if not otherwise covered by
another program, under this demonstration:''
(4) by striking the twenty-second proviso, as so designated
before the date of enactment of this Act;
(5) in the twenty-seventh, thirtieth, thirty-first, thirty-
second, thirty-third, and thirty-forth provisos, as so
designated before the date of enactment of this Act, by
striking ``Second Component'' each place the term appears and
inserting ``First Component''; and
(6) by striking ``vouchers to project-based vouchers.'' and
inserting ``vouchers to project-based vouchers: Provided
further, That the Secretary shall annually assess and publish
findings regarding the impact of the conversion of assistance
under the First Component of the demonstration with respect to
the preservation and improvement of public housing, the amount
of private sector leveraging resulting from such conversion
transactions, the prevalence of pre-conversion residents
remaining in or returning to the property following conversion,
and the effect of such conversion on tenants, including the
impact of such conversion on the rights maintained by tenants
as enumerated in regulations and other documents conferring
rights upon tenants as developed by the Secretary, and other
matters the Secretary may determine appropriate: Provided
further, That the Secretary may take remediative action or
impose civil money penalties or other administrative sanctions
for material violations of a requirement under the
demonstration: Provided further, That nothing in the matter
under this heading shall be construed to diminish, impair, or
otherwise affect the rights of property owners or tenants as
enumerated in current law and regulations: Provided further,
That all property owner rights, including those related to
ownership, management, and contractual obligations, shall
continue to apply and be respected following a Rental
Assistance Demonstration Program conversion: Provided further,
That all tenant protections and rights established in current
law and regulations shall remain fully in effect for properties
converted under the Rental Assistance Demonstration Program.''.
SEC. 202. INCREASING HOUSING IN OPPORTUNITY ZONES.
(a) Covered Grant Defined.--In this section, the term ``covered
grant'' means any competitive grant relating to the construction,
modification, rehabilitation, or preservation of housing, as determined
by the Secretary of Housing and Urban Development.
(b) Priority.--When awarding a covered grant, the Secretary of
Housing and Urban Development may give additional weight to applicants
located in, or that primarily serve, a community that has been
designated as a qualified opportunity zone under section 1400Z-1 of the
Internal Revenue Code of 1986.
SEC. 203. HOUSING SUPPLY FRAMEWORKS ACT.
(a) Findings.--Congress finds the following:
(1) The United States is facing a housing supply shortage.
This housing supply shortage has resulted in a record number of
cost-burdened households across regions and spanning the large
and small cities, towns, and coastal and rural communities of
the United States.
(2) Several factors contribute to the undersupply of
housing in the United States, particularly workforce housing,
including rising costs of construction, a shortage of labor,
supply chain disruptions, and a lack of reliable funding
sources.
(3) Regulatory barriers at the State and local levels, such
as zoning and land use regulations, also inhibit the creation
of new housing to meet local and regional housing needs.
(4) State and local governments are proactively exploring
solutions for reforming regulatory barriers, but additional
resources, data, and models can help adequately address these
challenges.
(5) While land use regulation is the responsibility of
State and local governments, there is Federal support for
necessary reforms, and there is an opportunity for the Federal
Government to provide support and assistance to State and local
governments that wish to undertake necessary reforms in a
manner that fits their communities' needs.
(6) Therefore, zoning ordinances or systems of land use
regulation that have the intent or effect of restricting
housing opportunities based on economic status or income
without interests that are substantial, legitimate,
nondiscriminatory and that outweigh the regional need for
housing are contrary to the regional and national interest.
(b) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the monthly payment is not more than 30
percent of the monthly income of the household.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary for Policy Development and
Research of the Department of Housing and Urban Development.
(3) Local zoning framework.--The term ``local zoning
framework'' means the local zoning codes and other ordinances,
procedures, and policies governing zoning and land-use at the
local level.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(5) State zoning framework.--The term ``State zoning
framework'' means the State legislation or State agency and
department procedures, or such legislation or procedures in an
insular area of the United States, enabling local planning and
zoning authorities and establishing and guiding related
policies and programs.
(c) Guidelines on State and Local Zoning Frameworks.--
(1) Establishment.--Not later than 3 years after the date
of enactment of this Act, the Assistant Secretary shall publish
documents outlining guidelines and best practices to support
production of adequate housing to meet the needs of communities
and provide housing opportunities for individuals at every
income level across communities with respect to--
(A) State zoning frameworks; and
(B) local zoning frameworks.
(2) Consultation; public comment.--During the 2-year period
beginning on the date of enactment of this Act, in developing
the guidelines and best practices required under paragraph (1),
the Assistant Secretary shall--
(A) publish draft guidelines in the Federal
Register for public comment; and
(B) establish a task force for the purpose of
providing consultation to draft guidelines published
under subparagraph (A), the members of which shall
include--
(i) planners and architects;
(ii) housing developers, including
affordable and market-rate housing developers,
manufactured housing developers, and other
business interests;
(iii) community engagement experts and
community members impacted by zoning decisions;
(iv) public housing authorities and transit
authorities;
(v) members of local zoning and planning
boards and local and regional transportation
planning organizations;
(vi) State officials responsible for
housing or land use, including members of State
zoning boards of appeals;
(vii) academic researchers; and
(viii) home builders.
(3) Contents.--The guidelines and best practices required
under paragraph (1) shall--
(A) with respect to State zoning frameworks,
outline potential models for updated State enabling
legislation or State agency and department procedures;
(B) include recommendations regarding--
(i) the reduction or elimination of parking
minimums;
(ii) the increase in maximum floor area
ratio requirements and maximum building heights
and the reduction in minimum lot sizes and set-
back requirements;
(iii) the elimination of restrictions
against accessory dwelling units;
(iv) increasing by-right uses, including
duplex, triplex, or quadplex buildings, across
cities or metropolitan areas;
(v) mechanisms, including proximity to
transit, to determine the appropriate scope for
rezoning and ensure development that does not
disproportionately burden residents of
economically distressed areas;
(vi) provisions regarding review of by-
right development proposals to streamline
review and reduce uncertainty, including--
(I) nondiscretionary, ministerial
review; and
(II) entitlement and design review
processes;
(vii) the reduction of obstacles,
regulatory or otherwise, to a range of housing
types at all levels of affordability, including
manufactured and modular housing;
(viii) State model zoning regulations for
directing local reforms, including mechanisms
to encourage adoption;
(ix) provisions to encourage transit-
oriented development, including increased
permissible units per structure and reduced
minimum lot sizes near existing or planned
public transit stations;
(x) potential reforms to strengthen the
public engagement process;
(xi) reforms to protest petition statutes;
(xii) the standardization, reduction, or
elimination of impact fees;
(xiii) cost effective and appropriate
building codes;
(xiv) models for community benefit
agreements;
(xv) mechanisms to preserve affordability,
limit disruption of low-income communities, and
prevent displacement of existing residents;
(xvi) with respect to State zoning
frameworks--
(I) State model codes for directing
local reforms, including mechanisms to
encourage adoption;
(II) a model for a State zoning
appeals process, which would--
(aa) create a process for
developers or builders
requesting a variance,
conditional use, special
permit, zoning district change,
similar discretionary permit,
or otherwise petitioning a
local zoning or planning board
for a project including a
State-defined amount of
affordable housing to appeal a
rejection to a State body or
regional body empowered by the
State; and
(bb) establish
qualifications for communities
to be exempted from the appeals
process based on their
available stock of affordable
housing; and
(III) streamlining of State
environmental review policies;
(xvii) with respect to local zoning
frameworks--
(I) the simplification and
standardization of existing zoning
codes;
(II) maximum review timelines;
(III) best practices for the
disposition of land owned by local
governments for affordable housing
development;
(IV) differentiations between best
practices for rural, suburban, and
urban communities, and communities with
different levels of density or
population distribution; and
(V) streamlining of local
environmental review policies; and
(xviii) other land use measures that
promote access to new housing opportunities
identified by the Secretary; and
(C) consider--
(i) the effects of adopting any
recommendation on eligibility for Federal
discretionary grants and tax credits for the
purpose of housing or community development;
(ii) coordination between infrastructure
investments and housing planning;
(iii) local housing needs, including ways
to set and measure housing goals and targets;
(iv) a range of affordability for rental
units, with a prioritization of units
attainable to extremely low-, low-, and
moderate-income residents;
(v) a range of affordability for
homeownership;
(vi) accountability measures;
(vii) the long-term cost to residents and
businesses if more housing is not constructed;
(viii) barriers to individuals seeking to
access affordable housing in growing
communities and communities with economic
opportunity;
(ix) with respect to State zoning
frameworks--
(I) distinctions between States
providing constitutional or statutory
home rule authority to municipalities
and States operating under the Dillon
Rule, as articulated in Hunter v.
Pittsburgh, 207 U.S. 161 (1907); and
(II) Statewide mechanisms to
preserve existing affordability over
the long term, including support for
land banks and community land trusts;
(x) public comments elicited under
paragraph (2)(A); and
(xi) other considerations, as identified by
the Secretary.
(d) Abolishment of the Regulatory Barriers Clearinghouse.--
(1) In general.--The Regulatory Barriers Clearinghouse
established pursuant to section 1205 of the Housing and
Community Development Act of 1992 (42 U.S.C. 12705d) is
abolished.
(2) Repeal.--Section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is repealed.
(e) Reporting.--
(1) Initial report.--Not later than 5 years after the date
on which the Assistant Secretary publishes the guidelines and
best practices for State and local zoning frameworks, the
Assistant Secretary shall submit to Congress a report
describing--
(A) the States that have adopted recommendations
from the guidelines and best practices, pursuant to
subsection (c);
(B) a summary of the localities that have adopted
recommendations from the guidelines and best practices,
pursuant to subsection (c);
(C) a list of States that adopted a State zoning
framework;
(D) a summary of the modifications that each State
has made in their State zoning framework;
(E) a general summary of the types of updates
localities have made to their local zoning framework;
(F) of the States that have adopted a State zoning
framework or recommendations from the guidelines and
best practices, the effect of such adoptions; and
(G) a summary of recommendations that were
routinely not adopted by States or by localities.
(2) Monitoring.--Two years after the date which the
Assistant Secretary submits to Congress the initial report
required under paragraph (1), and biennially thereafter, the
Secretary shall--
(A) publish a report that--
(i) provides the latest information
regarding the information described in
subparagraphs (A) through (G) of that
paragraph;
(ii) identifies, to the greatest extent
practicable, the adoption rates by States and
localities of each guideline and best practice
established under subsection (c);
(iii) requests and establishes a public
comment period on the guidelines and best
practices established under subsection (c) that
are routinely not adopted or adopted at
significantly lower rates by States and
localities; and
(iv) includes other relevant information
and criteria, as determined by the Secretary;
and
(B) review and consider all public feedback to the
report required under subparagraph (A) for the purpose
of improving the guidelines or best practices under
subsection (c) to further achieve the zoning goals
stated in subsection (a).
(f) GAO Report on Housing Supply.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report that investigates barriers to housing
supply, which shall include an assessment of--
(1) the current state of--
(A) the rental and homeowner housing supply
shortage;
(B) geographic patterns of that shortage;
(C) shortages in housing at various levels of
affordability; and
(D) shortages in housing appropriate for seniors,
families with children, and people with disabilities;
(2) the key drivers of the shortages described in paragraph
(1);
(3) regulatory, administrative, or procedural barriers that
exist in Federal housing programs that inhibit housing
development, and policy actions that can be taken to address
those barriers;
(4) the extent to which jurisdictions have successfully
implemented zoning or other policy reforms to increase housing
production and supply; and
(5) opportunities for increasing coordination between the
Department of Housing and Urban Development, the Federal
Housing Finance Agency, the Department of Agriculture, the
Department of the Treasury, and other agencies to address
housing supply.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section such sums as
may be necessary for each of fiscal years 2026 through 2030.
(h) Rule of Construction.--Nothing in this section may be construed
to permit the Department of Housing and Urban Development to take an
adverse action against or fail to provide otherwise offered actions or
services for any State or locality if the State or locality declines to
adopt a guideline or best practice under subsection (c).
SEC. 204. WHOLE-HOME REPAIRS ACT.
(a) Definitions.--In this section:
(1) Affordable unit.--The term ``affordable unit'' means a
unit for which the monthly rental payment is not more than 30
percent of the gross income of an individual earning at or
below 80 percent of the area median income, as defined by the
Secretary.
(2) Assisted unit.--The term ``assisted unit'' means a unit
that undergoes repair or rehabilitation work through a whole-
home repairs program administered by an implementing
organization under this section.
(3) Eligible homeowner.--The term ``eligible homeowner''
means a homeowner--
(A) with a household income that--
(i) is not more than 80 percent of the area
median income; or
(ii) meets the income eligibility
requirements for receiving assistance or
benefits under a specified program, as defined
in paragraph (11); and
(B) who is--
(i) an owner of record as evidenced by a
publicly recorded deed and occupies the home on
which repairs are to be conducted as their
principal residence;
(ii) an owner-occupant of the manufactured
home on which repairs are to be conducted; or
(iii) an owner who can demonstrate an
ownership interest in the property on which
repairs are to be conducted, including a person
who has inherited an interest in that property.
(4) Eligible landlord.--The term ``eligible landlord''
means an individual--
(A) who owns, as determined by the relevant
implementing organization, fewer than 10 eligible
rental properties, with a majority of affordable units
and not more than 50 total units, operated as primary
residences in which a majority ownership interest is
held by the individual, the spouse of the individual,
or the dependent children of the individual, or any
closely held legal entity controlled by the individual,
the spouse of the individual, or the dependent children
of the individual, either individually or collectively;
and
(B) who agrees to the provisions described in
subsection (b)(3).
(5) Eligible rental property.--The term ``eligible rental
property'' means a residential property that--
(A) is leased, or offered exclusively for lease, as
a primary residence by an eligible landlord; and
(B) includes affordable units.
(6) Forgivable loan.--The term ``forgivable loan'' means a
loan--
(A) made to an eligible landlord;
(B) that is secured by a lien recorded against a
residential property; and
(C) that may be forgiven by the implementing
organization not later than the date that is 3 years
after the completion of the repairs if the eligible
landlord has maintained compliance with the loan
agreement described in subsection (b)(3).
(7) Implementing organization.--The term ``implementing
organization''--
(A) means a unit of general local government or a
State that--
(i) will administer a whole-home repairs
program through an agency, department, or other
entity; or
(ii) enter into agreements with 1 or more
local governments, municipal authorities, other
governmental authorities, including a tribally
designated housing entity, or qualified
nonprofit organizations, to administer a whole-
home repairs program as a subrecipient; and
(B) does not include a redundant entity in a
jurisdiction already served by a grantee under
subsection (b).
(8) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(9) Qualified nonprofit.--The term ``qualified nonprofit''
means a nonprofit organization that--
(A) has received funding, as a recipient or
subrecipient, through--
(i) the Community Development Block Grant
program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.);
(ii) the HOME Investment Partnerships
program under subtitle A of title II of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12741 et seq.);
(iii) the Lead-Based Paint Hazard Reduction
grant program under section 1011 of the
Residential Lead-Based Paint Hazard Reduction
Act of 1992 (42 U.S.C. 4852) or a grant under
the Healthy Homes Initiative administered by
the Secretary pursuant to sections 501 and 502
of the Housing and Urban Development Act of
1970 (12 U.S.C. 1701z-1, 1701z-2);
(iv) the Self-Help and Assisted
Homeownership Opportunity program authorized
under section 11 of the Housing Opportunity
Program Extension Act of 1996 (42 U.S.C. 12805
note);
(v) a rural housing program under title V
of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.); or
(vi) the Neighborhood Reinvestment
Corporation established under the Neighborhood
Reinvestment Corporation Act (42 U.S.C. 8101 et
seq.);
(B) has coordinated, performed, or otherwise been
engaged in weatherization, lead remediation, or home-
repair work for not less than 2 years;
(C) has been certified by the Environmental
Protection Agency, or by a State authorized by the
Environmental Protection Agency to administer a
certification program, as--
(i) eligible to carry out activities under
the lead renovation, repair and painting
program; or
(ii) a Home Certification Organization
under the Energy Star program established by
section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a) or the
WaterSense program under section 324B of that
Act (42 U.S.C. 6294b), or recognized or
otherwise approved by the Environmental
Protection Agency as a Home Certification
Organization under either of those programs; or
(D) is a community development financial
institution, as defined in section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(11) Specified program.--For purposes of paragraph
(3)(A)(ii), the term ``specified program'' means any of the
following:
(A) The Medicaid program established under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.).
(B) The State Children's Health Insurance Program
established under title XXI of the Social Security Act
(42 U.S.C. 1397aa et seq.).
(C) The supplemental security income benefits
program established under title XVI of the Social
Security Act (42 U.S.C. 1381 et seq.).
(D) The supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
(E) The temporary assistance for needy families
program established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
(12) State.--The term ``State'' means--
(A) each State of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) any territory or possession of the United
States; and
(E) an Indian tribe.
(13) Tribally designated housing entity.--The term
``tribally designated housing entity'' has the meaning given
the term in section 4 of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4103).
(14) Whole-home repairs.--The term ``whole-home repairs''
means modifications, repairs, or updates to homeowner or
renter-occupied units to address--
(A) physical and sensory accessibility for
individuals with disabilities and older adults, such as
bathroom and kitchen modifications, installation of
grab bars and handrails, guards and guardrails, lifting
devices, ramp additions or repairs, sidewalk addition
or repair, or doorway or hallway widening;
(B) habitability and safety concerns, such as
repairs needed to ensure residential units are fit for
human habitation and free from defective conditions or
health and safety hazards; or
(C) energy and water efficiency, resilience, and
weatherization.
(b) Pilot Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a pilot
program to provide grants to implementing organizations to
administer a whole-home repairs program for eligible homeowners
and eligible landlords.
(2) Use of funds.--An implementing organization that
receives a grant under this subsection--
(A) shall provide grants to eligible homeowners to
implement whole-home repairs not covered by other
Federal home repair programs and up to a maximum amount
per unit, which maximum amount should--
(i) reflect local construction costs and
the level of repairs needed in each unit; and
(ii) be calculated and approved by the
Secretary;
(B) shall provide loans, which may be forgivable,
to eligible landlords to implement whole-home repairs
not covered by other Federal home repair programs for
individual affordable units, public and common use
areas within the property, and common structural
elements up to a maximum amount per unit, area, or
element, as applicable, which maximum amount should--
(i) reflect local construction costs; and
(ii) be calculated and approved by the
Secretary;
(C) shall evaluate, or provide assistance to
eligible homeowners and eligible landlords to evaluate,
whole-home repair program funds provided under this
subsection with Federal, State, and local home repair
programs to provide the greatest benefit to the
greatest number of eligible landlords and eligible
homeowners and avoid duplication of benefits and
redundancies;
(D) shall ensure that--
(i) all repairs funded or facilitated
through an award under this subsection have
been completed;
(ii) if repairs are not completed and the
plan for whole-home repairs is not updated to
reflect the new scope of work, that the loan or
grant is repaid on a prorated basis based on
completed work; and
(iii) any unused grant or loan balance is
returned to the implementing organization, and
is reused by the implementing organization for
a new whole-home repair grant or loan under
this subsection;
(E) may use not more than 5 percent of the awarded
funds to carry out related functions, including
workforce training for home repair professions, which
shall be related to efforts to increase the number of
home repairs performed and approved by the Secretary;
(F) may use not more than 10 percent of the awarded
funds for administrative expenses; and
(G) shall comply with Federal accessibility
requirements and standards under applicable Federal
fair housing and civil rights laws and regulations,
including section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794).
(3) Loan agreement.--In a loan agreement with an eligible
landlord under this subsection, an implementing organization
shall include provisions establishing that the eligible
landlord shall, for each eligible rental property for which a
loan is used to fund repairs under this subsection--
(A) comply with Federal accessibility requirements
and standards under applicable Federal fair housing and
civil rights laws and regulations, including section
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794);
and
(B)(i) if the landlord is renting the assisted
units available in the eligible rental property to
tenants receiving tenant-based rental assistance under
section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)), under another tenant-based rental
assistance program administered by the Secretary or the
Secretary of Agriculture, or under a tenant-based
rental subsidy provided by a State or local government,
comply with the program requirements under the relevant
tenant-based rental assistance program; or
(ii) if the eligible landlord is not renting to
tenants receiving rental-based assistance as described
in clause (i)--
(I)(aa) offer to extend the lease of
current tenants on current terms, other than
the terms described in subclause (iv) for not
less than 3 years beginning after the
completion of the repairs, unless the lease is
terminated due to failure to pay rent,
performance of an illegal act within the rental
unit, or a violation of an obligation of
tenancy that the tenants failed to correct
after notice; and
(bb) if the tenant of an assisted unit
moves out of the assisted unit at any point in
the 3-year period following the loan agreement,
maintain the unit as an affordable unit for the
remainder of the 3-year period;
(II) provide documentation verifying that
the property, upon completion of approved
renovations, has met all applicable State and
local housing and building codes;
(III) attest that the landlord has no known
serious violations of renter protections that
have resulted in fines, penalties, or judgments
during the preceding 10 years; and
(IV) cap annual rent increases for each
assisted unit at 5 percent of base rent or
inflation, whichever is lower, for not less
than 3 years beginning after the completion of
the repairs.
(4) Application.--
(A) In general.--An implementing organization
desiring an award under this subsection shall submit to
the Secretary an application that includes--
(i) the geographic scope of the whole-home
repairs program to be administered by the
implementing organization, including the plan
to address need in any rural, suburban, or
urban area within a jurisdiction;
(ii) a plan for selecting subrecipients, if
applicable;
(iii) how the implementing organization
plans to execute the coordination of Federal,
State, and local home repair programs,
including programs administered by the
Department of Energy or the Department of
Agriculture, to increase efficiency and reduce
redundancy;
(iv) available data on the need for
affordable and quality housing within the
geographic scope of the whole-home repairs
program, and any plans to preserve
affordability through the term of the award;
(v) how the implementing organization plans
to process and verify applications for grants
from eligible homeowners and applications for
loans from eligible landlords; and
(vi) such other information as the
Secretary requires to determine the ability of
an applicant to carry out a program under this
subsection.
(B) Considerations.--In making awards under this
subsection, the Secretary shall--
(i) with respect to applications submitted
by States other than the District of Columbia
and the territories of the United States,
prioritize those applications with a
demonstrated plan to--
(I) make a good faith effort to
implement the pilot program in every
jurisdiction; and
(II) provide non-metropolitan
areas, or subrecipients serving non-
metropolitan areas if applicable, with
a share of total funds commensurate to
their population;
(ii) aim to select applicants so that the
awardees collectively span diverse geographies,
with an intent to understand the impact of the
pilot program under this subsection in urban,
suburban, rural, and Tribal settings; and
(iii) not disqualify implementing
organizations that were awarded grants under
the pilot program in prior application cycles.
(5) Program information.--The Secretary shall make
available to grant recipients under this subsection information
regarding existing Federal programs for which grant recipients
may coordinate or provide assistance in coordinating
applications for those programs in accordance with paragraph
(2)(C).
(6) Grant number.--In each year in which an award is made
under this subsection, the Secretary shall award assistance
to--
(A) not less than 2, and not more than 10,
implementing organizations, as application numbers and
funding permit; and
(B) not more than 1 implementing organization in
any State.
(7) Loans that are not forgiven.--If a loan made by an
implementing organization under paragraph (2)(B) is not
forgiven, the loan repayment funds shall be reused by the
implementing organization for a new whole-home repair grant or
loan under this subsection.
(8) Supplement, not supplant.--Amounts awarded under this
subsection to implementing organizations shall supplement, not
supplant, other Federal, State, and local funds made available
to those entities.
(9) Streamlining program delivery and ensuring
efficiency.--To the extent possible, in carrying out the pilot
program under this subsection, the Secretary shall--
(A) endeavor to improve efficiency of service
delivery, as well as the experience of and impact on
the taxpayer, by encouraging programmatic collaboration
and information sharing across Federal, State, and
local programs for home repair or improvement,
including programs administered by the Department of
the Agriculture; and
(B) enhance collaboration and cross-agency
streamlining efforts that reduce the burdens of
multiple income verification processes and applications
on the eligible homeowner, the eligible landlord, the
implementing organization, and the Federal Government,
including by establishing assistance application
procedures for income eligibility under this subsection
that recognize income eligibility determinations for
assistance using any of the criteria under subsection
(a)(3)(A) that have been used for assistance
applications during the 1-year period preceding the
date on which an eligible homeowner or eligible
landlord applies for assistance under this subsection.
(10) Reporting requirements.--
(A) Annual report.--An implementing organization
that receives a grant under this subsection shall
submit to the Secretary an annual report on initial
funding that includes--
(i) the number of units served, including
reporting on both homeownership and rental
units, as well as accessible units;
(ii) the average cost per unit for
modifications or repairs and the nature of
those modifications or repairs, including
reporting on accessibility and both
homeownership and rental units;
(iii) the number of applications received,
served, denied, or not completed, disaggregated
by geographic area;
(iv) the aggregated demographic data of
grant recipients, which may include data on
income range, urban, suburban, and rural
residency, age, and racial and ethnic identity;
(v) the aggregated demographic data of loan
recipients, which may include data on income
range, urban, suburban, and rural residency,
age, and racial and ethnic identity;
(vi) an affirmation that the implementation
organization has complied with the applicable
regulations, including compliance with Federal
accessibility requirements;
(vii) in the first year of receiving a
grant, and as certified in subsequent reports,
a comprehensive plan to prevent waste, fraud,
and abuse in the administration of the pilot
program, which shall include, at a minimum--
(I) a policy enacted and enforced
by the implementing organization to
monitor ongoing expenditures under this
subsection and ensure compliance with
applicable regulations;
(II) a policy enacted and enforced
by the implementing organization to
detect and deter fraudulent activity,
including fraud occurring in individual
projects and patterns of fraud by
parties involved in the expenditure of
funds under this subsection;
(III) a statement setting forth any
violations detected by the implementing
organization during the previous
calendar year, including details about
steps taken to achieve compliance and
any remedial measures; and
(IV) a certification by the chief
executive or most senior compliance
officer of the organization that the
organization maintains sufficient staff
and resources to effectively carry out
the above-mentioned policies; and
(viii) such other information as the
Secretary may require.
(B) Reporting requirement alignment.--To limit the
costs of implementing the pilot program under this
subsection, the Secretary shall endeavor, to the extent
possible, to structure reporting requirements such that
they align with the data reporting requirements in
place for funding streams that implementing
organizations are likely to use in partnership with
funding from this subsection, including the reporting
requirements under--
(i) the Community Development Block Grant
program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.);
(ii) the HOME Investment Partnerships
program under subtitle A of title II of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12741 et seq.);
(iii) the Weatherization Assistance Program
for low-income persons established under part A
of title IV of the Energy Conservation and
Production Act (42 U.S.C. 6861 et seq.); and
(iv) the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C.
4101 et seq.).
(C) Pilot program period reports.--Not less
frequently than twice during the period in which the
pilot program established under this subsection
operates, the Office of Inspector General of the
Department of Housing and Urban Development shall
complete an assessment of the implementation of
measures to ensure the fair and legitimate use of the
pilot program.
(D) Summary to congress.--The Secretary shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial
Services of the House of Representatives an annual
report providing a summary of the data provided under
subparagraphs (A) and (C) during the 1-year period
preceding the report and all data previously provided
under those subparagraphs.
(11) Funding.--The Secretary--
(A) is authorized to use up to $30,000,000 of funds
made available as provided in appropriations Acts for
programs administered by the Office of Lead Hazard
Control and Healthy Homes to carry out the pilot
program under this subsection; and
(B) shall submit to the Committee on Appropriations
and the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Appropriations and the Committee on Financial Services
of the House of Representatives a report on the
appropriations accounts from which the Secretary will
derive the funding under subparagraph (A).
(12) Environmental review.--A grant under this subsection
shall be--
(A) treated as assistance for a special project for
purposes of section 305(c) of the Multifamily Housing
Property Disposition Reform Act of 1994 (42 U.S.C.
3547); and
(B) subject to the regulations promulgated by the
Secretary to implement such section.
(13) Termination.--The pilot program established under this
subsection shall terminate on October 1, 2031.
SEC. 205. COMMUNITY INVESTMENT AND PROSPERITY ACT.
(a) Revised Statutes.--The paragraph designated as the ``Eleventh''
of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended, in the fifth sentence, by striking ``15'' each place
the term appears and inserting ``20''.
(b) Federal Reserve Act.--Section 9(23) of the Federal Reserve Act
(12 U.S.C. 338a) is amended, in the fifth sentence, by striking ``15''
each place the term appears and inserting ``20''.
SEC. 206. BUILD NOW ACT.
(a) Definitions.--In this section:
(1) Covered recipient.--The term ``covered recipient''
means a metropolitan city or urban county, as those terms are
defined in section 102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302), that receives funds under section
106.
(2) Current annual growth rate.--The term ``current annual
growth rate'', with respect to an eligible recipient and a
fiscal year, means the average annual percentage increase in
the number of housing units in the jurisdiction of the eligible
recipient, as calculated by the Secretary, during the period--
(A) beginning with the third quarter of the sixth
preceding fiscal year; and
(B) ending with the third quarter of the preceding
fiscal year.
(3) Eligible recipient.--The term ``eligible recipient''
means any covered recipient unless--
(A)(i) the median Small Area Fair Market Rent in
the jurisdiction of the covered recipient is at or
below the 60th percentile of median Small Area Fair
Market Rents in the jurisdictions of all covered
recipients; and
(ii) the median home value in the jurisdiction of
the covered recipient is below the median home value
for the United States;
(B) the annual natural rental vacancy rate in the
jurisdiction of the covered recipient is greater than
the national annual natural rental vacancy rate for the
most recent year available, as published by the Bureau
of the Census;
(C) during the 1-year period preceding the date on
which the Secretary allocates funds under section 106,
the jurisdiction of the covered recipient has been the
subject of a major disaster or emergency declaration
under section 401 or 501, respectively, of the Robert
T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5170, 5191); or
(D) the covered recipient lacks the legal authority
to enact or update zoning and permitting ordinances.
(4) Extremely high-growth recipient.--The term ``extremely
high-growth recipient'' means an eligible recipient for which
the current annual growth rate is at or above 4 percent.
(5) Housing growth improvement rate.--The term ``housing
growth improvement rate'', with respect to an eligible
recipient and a fiscal year, means the quotient of--
(A) the current annual growth rate of the eligible
recipient; and
(B) the prior annual growth rate of the eligible
recipient.
(6) Prior annual growth rate.--The term ``prior annual
growth rate'', with respect to an eligible recipient and a
fiscal year, means the average annual percentage increase in
the number of housing units in the jurisdiction of the eligible
recipient, as calculated by the Secretary, during the period--
(A) beginning with the third quarter of the 11th
preceding fiscal year; and
(B) ending with the third quarter of the sixth
preceding fiscal year.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(8) Section 106.--The term ``section 106'' means section
106 of the Housing and Community Development Act of 1974 (42
U.S.C. 5306).
(b) Adjustments to Community Development Block Grant Allocations.--
(1) In general.--In allocating amounts to an eligible
recipient under section 106 for a fiscal year, the Secretary
shall adjust the allocation based on the housing growth
improvement rate of the eligible recipient, in accordance with
paragraph (2) of this subsection.
(2) Adjustments.--
(A) Housing growth improvement rate at or above
median; extremely high-growth recipients.--
(i) In general.--If, with respect to a
fiscal year for which the allocation under
section 106 is being determined, the housing
growth improvement rate for an eligible
recipient is at or above the median housing
growth improvement rate for all eligible
recipients other than extremely high-growth
recipients, or if an eligible recipient is an
extremely high-growth recipient, the Secretary
shall allocate to the eligible recipient for
that fiscal year, in addition to the amount
that would otherwise be allocated to the
eligible recipient under section 106, a bonus
amount, as determined under clause (ii) of this
subparagraph.
(ii) Bonus amount.--For purposes of clause
(i), the bonus amount for an eligible recipient
for a fiscal year shall be equal to the product
of--
(I) the aggregate amount by which
allocations to eligible recipients are
decreased under subparagraph (B) for
that fiscal year; and
(II) the quotient of--
(aa) the number of housing
units, as of the third quarter
of the preceding fiscal year,
in the jurisdiction of the
eligible recipient, as
calculated by the Secretary;
and
(bb) the number of housing
units, as of the third quarter
of the preceding fiscal year,
in the jurisdictions of all
eligible recipients that
receive a bonus amount under
this paragraph, as calculated
by the Secretary.
(B) Housing growth improvement rate below median.--
If, with respect to a fiscal year for which the
allocation under section 106 is being determined, the
housing growth improvement rate for an eligible
recipient is below the median housing growth
improvement rate for all eligible recipients other than
high-growth outliers, the Secretary shall decrease the
amount that would otherwise be allocated to the
eligible recipient under section 106 for that fiscal
year by 10 percent.
(c) Calculation of Housing Units.--
(1) Housing and urban development requirements.--In
calculating the number of housing units in the jurisdiction of
an eligible recipient under any provision of this section, the
Secretary shall--
(A) use the Current Address Count Listing Files and
other data products, as needed, of the Bureau of the
Census tabulated from the Master Address File; and
(B) make calculations at the block level, using
boundaries that reflect the most current boundaries.
(2) Census bureau and postal service requirements.--The
Bureau of the Census and the United States Postal Service shall
provide any relevant data to the Secretary upon request to
assist the Secretary in making a calculation described in
paragraph (1).
(3) Adjustment of calculation periods.--The Secretary may
adjust the calculation periods under subparagraphs (A) and (B)
of subsection (a)(2), subparagraphs (A) and (B) of subsection
(a)(6), and items (aa) and (bb) of subsection (b)(2)(A)(ii)(II)
by not more than 2 months to achieve alignment with the data
provided by the Bureau of the Census.
(d) Annual Report on Housing Growth Improvement Rate.--Before
allocating funds under section 106 for a fiscal year, the Secretary
shall publish a report that--
(1) includes the housing growth improvement rate for each
eligible recipient; and
(2) lists, for the most recent fiscal year for which
allocations were made under section 106--
(A) the eligible recipients that received a bonus
amount under subsection (b)(2)(A); and
(B) the eligible recipients for which the
allocation under section 106 was decreased under
subsection (b)(2)(B) of this section.
(e) Notification; Implementation Dates.--
(1) Notification.--
(A) In general.--Not later than 60 days after the
date of enactment of this Act, the Secretary shall
notify each eligible recipient of the recipient's
housing growth improvement rate and whether that
housing growth improvement rate is above, at, or below
the median housing growth improvement rate for all
eligible recipients other than extremely high-growth
recipients.
(B) Guidance.--As part of the notification under
subparagraph (A), the Secretary shall share guidance,
including resources developed by the Department of
Housing and Urban Development, on best practices and
recommendations on policies to reduce regulatory
barriers to housing and increase housing supply.
(2) Implementation dates.--Subsection (b) shall take effect
beginning with the second full fiscal year after the date of
enactment of this Act and remain in effect through fiscal year
2042.
SEC. 207. BETTER USE OF INTERGOVERNMENTAL AND LOCAL DEVELOPMENT (BUILD)
HOUSING ACT.
(a) Designation of Environmental Review Procedure.--The Department
of Housing and Urban Development Act (42 U.S.C. 3531 et seq.) is
amended by inserting after section 12 (42 U.S.C. 3537a) the following:
``SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PROCEDURE.
``(a) In General.--Except as provided in subsection (b), the
Secretary may, for purposes of environmental review, decision making,
and action pursuant to the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), and other provisions of law that further the
purposes of such Act, designate the treatment of assistance
administered by the Secretary as funds for a special project for
purposes of section 305(c) of the Multifamily Housing Property
Disposition Reform Act of 1994 (42 U.S.C. 3547).
``(b) Exception.--The designation described in subsection (a) shall
not apply to assistance for which a procedure for carrying out the
responsibilities of the Secretary under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of
law that further the purposes of such Act, is otherwise specified in
law.''.
(b) Tribal Assumption of Environmental Review Obligations.--Section
305(c) of the Multifamily Housing Property Disposition Reform Act of
1994 (42 U.S.C. 3547) is amended--
(1) by striking ``State or unit of general local
government'' each place it appears and inserting ``State,
Indian tribe, or unit of general local government'';
(2) in paragraph (1)(C), in the heading, by striking
``State or unit of general local government'' and inserting
``State, indian tribe, or unit of general local government'';
and
(3) by adding at the end the following:
``(5) Definition of indian tribe.--For purposes of this
subsection, the term `Indian tribe' means a federally
recognized tribe, as defined in section 4(13)(B) of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4103(13)(B)).''.
SEC. 208. UNLOCKING HOUSING SUPPLY THROUGH STREAMLINED AND MODERNIZED
REVIEWS ACT.
(a) Definitions.--In this section:
(1) Infill project.--The term ``infill project'' means a
project that--
(A) occurs within the geographic limits of a
municipality;
(B) is adequately served by existing utilities and
public services as required under applicable law;
(C) is located on a site of previously disturbed
land of not more than 5 acres and substantially
surrounded by residential or commercial development;
(D) will repurpose a vacant or underutilized parcel
of land, or a dilapidated or abandoned structure; and
(E) will serve a residential or commercial purpose.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary shall, in accordance with
section 553 of title 5, United States Code, and section 103 of
the National Environmental Policy Act of 1969 (42 U.S.C. 4333),
expand and reclassify housing-related activities under the
necessary administrative regulations as follows:
(A) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled ``exempt
activities'' as set forth in section 58.34 of title 24,
Code of Federal Regulations, as in effect on January 1,
2025:
(i) Tenant-based rental assistance.
(ii) Supportive services, including health
care, housing services, permanent housing
placement, day care, nutritional services,
short-term payments for rent, mortgage, or
utility costs, and assistance in gaining access
to Federal Government and State and local
government benefits and services.
(iii) Operating costs, including
maintenance, security, operation, utilities,
furnishings, equipment, supplies, staff
training, and recruitment and other incidental
costs.
(iv) Economic development activities,
including equipment purchases, inventory
financing, interest subsidies, operating
expenses, and similar costs not associated with
construction or expansion of existing
operations.
(v) Activities to assist homebuyers to
purchase existing dwelling units or dwelling
units under construction, including closing
costs and down payment assistance, interest
rate buydowns, and similar activities that
result in the transfer of title.
(vi) Affordable housing pre-development
costs related to obtaining site options,
project financing, administrative costs and
fees for loan commitment, zoning approvals, and
other related activities that do not have a
physical impact.
(vii) Approval of supplemental assistance,
including insurance or guarantee, to a project
previously approved by the Secretary.
(viii) Emergency homeowner or renter
assistance for HVAC, hot water heaters, and
other necessary uses of existing utilities
required under applicable law.
(B) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled, (i) ``categorical
exclusions not subject to section 58.5'' and (ii)
``categorical exclusions not subject to the Federal
laws and authorities cited in sections 50.4'' in
section 58.35(b) and section 50.19, respectively of
title 24, Code of Federal Regulations, as in effect on
January 1, 2025, if such activities do not materially
alter environmental conditions and do not materially
exceed the original scope of the project:
(i) Acquisition, repair, improvement,
reconstruction, or rehabilitation of public
facilities and improvements (other than
buildings) if the facilities and improvements
are in place and will be retained in the same
use without change in size or capacity of more
than 20 percent, including replacement of water
or sewer lines, reconstruction of curbs and
sidewalks, and repaving of streets.
(ii) Rehabilitation of 1-to-4 unit
residential buildings, and existing housing-
related infrastructure, such as repairs or
rehabilitation of existing wells, septics, or
utility lines that connect to that housing.
(iii) New construction, development,
demolition, acquisition, or disposition on up
to 4 scattered site existing dwelling units
where there is a maximum of 4 units on any 1
site.
(iv) Acquisitions (including leasing) or
disposition of, or equity loans on an existing
structure, or acquisition (including leasing)
of vacant land if the structure or land
acquired, financed, or disposed of will be
retained for the same use.
(C) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled, (i) ``categorical
exclusions subject to section 58.5'' and (ii)
``categorical exclusions subject to the Federal laws
and authorities cited in sections 50.4'' in section
58.35(a) and section 50.20, respectively, of title 24,
Code of Federal Regulations, as in effect on January 1,
2025, if such activities do not materially alter
environmental conditions and do not materially exceed
the original scope of the project:
(i) Acquisitions of open space or
residential property, where such property will
be retained for the same use or will be
converted to open space to help residents
relocate out of an area designated as a high-
risk area by the Secretary.
(ii) Conversion of existing office
buildings into residential development, subject
to--
(I) a maximum number of units to be
determined by the Secretary; and
(II) a limitation on the change in
building size of not more than 20
percent.
(iii) New construction, development,
demolition, acquisition, or disposition on 5 to
15 dwelling units where there is a maximum of
fifteen units on any 1 site. The units can be
15 1-unit buildings or 1 15-unit building, or
any combination in between.
(iv) New construction, development,
demolition, acquisition, or disposition on 15
or more housing units developed on scattered
sites when there are not more than 15 housing
units on any 1 site, and the sites are more
than a set number of feet apart as determined
by the Secretary.
(v) Rehabilitation of buildings and
improvements in the case of a building for
residential use with 5 to 15 units, if the
density is not increased beyond 15 units and
the land use is not changed.
(vi) Infill projects consisting of new
construction, rehabilitation, or development of
residential housing units.
(vii) The voluntary acquisition of
properties--
(I) located in a--
(aa) floodway;
(bb) floodplain; or
(cc) other area, clearly
delineated by the grantee; and
(II) that have been impacted by a
predictable environmental threat to the
safety and well-being of program
beneficiaries caused or exacerbated by
a federally declared disaster.
(c) Report.--The Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives an annual report
during the 5-year period beginning on the date that is 2 years after
the date of enactment of this Act that provides a summary of findings
of reductions in review times and administrative cost reduction, with a
particular focus on the affordable housing sector, as a result of the
actions set forth in this section, and any recommendations of the
Secretary for future congressional action with respect to revising
categorical exclusions or exemptions under title 24, Code of Federal
Regulations.
SEC. 209. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that--
(A) serves--
(i) a majority of households with income
not greater than 80 percent of area median
income; and
(ii) households with income not greater
than 100 percent of area median income; or
(B) serves--
(i) a majority of households with income
not greater than 60 percent of area median
income; and
(ii) households with income not greater
than 120 percent of area median income.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a metropolitan city or urban county, as those
terms are defined in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302),
that has demonstrated an objective improvement in
housing supply growth, as determined by the Secretary,
whose methodology for determining such growth is
published in the Federal Register to allow for public
comment not less than 90 days before date on which the
notice of funding opportunity is made available; or
(B) a unit of general local government or Indian
tribe, as those terms are defined in section 102 of the
Housing and Community Development Act of 1974 (42
U.S.C. 5302), that has demonstrated an objective
improvement in housing supply growth, as determined by
the Secretary, whose methodology for determining such
improvement is published in the Federal Register to
allow for public comment not less than 90 days before
the date on which the notice of funding opportunity is
made available.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment of a Grant Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program
to award grants on a competitive basis to eligible entities
that have increased their local housing supply.
(2) List of eligible entities.--The Secretary shall make a
list of eligible entities publicly available on the website of
the Department of Housing and Urban Development.
(3) Eligible purposes.--An eligible entity receiving a
grant under this section may use funds to--
(A) carry out any of the activities described in
section 105 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305);
(B) carry out any of the activities permitted under
the Local and Regional Project Assistance Program
established under section 6702 of title 49, United
States Code;
(C) serve as matching funds under a State revolving
fund program related to a clean water or drinking water
program administered by the Environmental Protection
Agency in which the eligible entity is the grantee
under that program, unless otherwise determined by the
Secretary; and
(D) carry out initiatives of the eligible entity
that facilitate the expansion of the supply of
attainable housing and that supplement initiatives the
eligible entity has carried out, or is in the process
of carrying out, as specified in the application
submitted under paragraph (4).
(4) Application.--
(A) In general.--An eligible entity seeking a grant
under this section shall submit to the Secretary an
application that provides--
(i) a description of each purpose for which
the eligible entity will use the grant, and an
attestation that the grant will be used only
for 1 or more eligible purposes described in
paragraph (3);
(ii) data on characteristics of increased
housing supply during the 3-year period ending
on the date on which the application is
submitted, which may include whether such
housing--
(I) serves households at a range of
income levels; and
(II) has improved the quality and
affordability of housing in the
jurisdiction of the eligible entity;
(iii) a description of how each eligible
purpose described in clause (i) may address a
community need or advance an objective, or an
aspect of an objective, included in the
comprehensive housing affordability strategy
and community development plan of the eligible
entity under part 91 of title 24, Code of
Federal Regulations, or any successor
regulation (commonly referred to as a
``consolidated plan''); and
(iv) a description of how the eligible
entity has carried out, or is in the process of
carrying out, initiatives that facilitate the
expansion of the supply of housing.
(B) Initiatives.--Initiatives that meet the
criteria described in paragraph (3)(D) include--
(i) increasing by-right uses, including
duplex, triplex, quadplex, and multifamily
buildings, in areas of opportunity;
(ii) revising or eliminating off-street
parking requirements to reduce the cost of
housing production;
(iii) revising minimum lot size
requirements, floor area ratio requirements,
set-back requirements, building heights, and
bans or limits on construction to allow for
denser and more affordable development;
(iv) instituting incentives to promote
dense development;
(v) passing zoning overlays or other
ordinances that enable the development of
mixed-income housing;
(vi) streamlining regulatory requirements
and shortening processes, increasing code
enforcement and permitting capacity, reforming
zoning codes, or other initiatives that reduce
barriers to increasing housing supply and
affordability;
(vii) eliminating restrictions against
accessory dwelling units and expanding their
by-right use;
(viii) using local tax incentives or public
financing to promote development of attainable
housing;
(ix) streamlining environmental
regulations;
(x) eliminating unnecessary manufactured-
housing regulations and restrictions;
(xi) minimizing the impact of
overburdensome energy and water efficiency
standards on housing costs; and
(xii) other activities that reduce cost of
construction, as determined by the Secretary.
(5) Grants.--
(A) In general.--The Secretary shall make not fewer
than 25 grants on an annual basis (unless amounts
appropriated to provide grant amounts consistent with
subsection (b) are insufficient, in which case fewer
grants may be awarded), with strong consideration of
different geographical areas and a relatively even
spread of rural, suburban, and urban communities.
(B) Limitations on awards.--No grant awarded under
this paragraph may be--
(i) more than $10,000,000; or
(ii) less than $250,000.
(C) Priority.--When awarding grants under this
paragraph, the Secretary shall give priority to an
eligible entity that has--
(i) demonstrated the use of innovative
policies, interventions, or programs for
increasing housing supply, including adoption
of any of the frameworks developed under
section 203; and
(ii) demonstrated a marked improvement in
housing supply growth.
(c) Rules of Construction.--Nothing in this section shall be
construed--
(1) to authorize the Secretary to mandate, supersede, or
preempt any local zoning or land use policy; or
(2) to affect the requirements of section 105(c)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(c)(1)).
(d) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $200,000,000 for each of fiscal years
2027 through 2031.
(2) Adjustment.--The amount authorized to be appropriated
under paragraph (1) shall be adjusted for inflation based on
the Consumer Price Index.
SEC. 210. 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 by new or refurbished housing
that utilizes existing utilities and infrastructure.
(6) Mixed-income housing.--The term ``mixed-income
housing'' means a housing development that is comprised of
housing units that promote differing levels of affordability in
the community.
(7) Pre-reviewed designs.--The term ``pre-reviewed
designs'', also known as pattern books, means sets of
construction plans that are assessed and approved by localities
for compliance with local building and permitting standards to
streamline and expedite approval pathways for housing
construction.
(8) Rural area.--The term ``rural area'' means any area
other than a city or town that has a population of less than
50,000 inhabitants.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Authority.--The Secretary may award grants to eligible entities
to select pre-reviewed designs of covered structures of mixed-income
housing for use in the jurisdiction of the eligible entity.
(c) Considerations.--In reviewing applications submitted by
eligible entities for a grant under this section, the Secretary shall
consider--
(1) the need for affordable housing by the eligible entity;
(2) the presence of high opportunity areas in the
jurisdiction of the eligible entity;
(3) coordination between the eligible entity and a State
agency; and
(4) coordination between the eligible entity and State,
local, and regional transportation planning authorities.
(d) Set-aside for Rural Areas.--Of the amount made available in
each fiscal year for grants under this section, the Secretary shall
ensure that not less than 10 percent shall be used for grants to
eligible entities that are located in rural areas.
(e) Reports.--The Secretary shall require eligible entities
receiving grants under this section to report on--
(1) the impacts of the activities carried out using the
grant amounts in improving the production and supply of
affordable housing;
(2) the pre-reviewed designs selected using the grant
amounts in their communities;
(3) the number of permits issued for housing development
utilizing pre-reviewed designs; and
(4) the number of housing units produced in developments
utilizing the pre-reviewed designs.
(f) Availability of Information.--The Secretary shall--
(1) to the extent possible, encourage localities to make
publicly available through a website information on the pre-
reviewed designs selected and submitted to the Secretary by
eligible entities receiving grants under this section,
including information on the benefits of use of those designs;
and
(2) collect, identify, and disseminate best practices
regarding such designs and make such information publicly
available on the website of the Department of Housing and Urban
Development.
(g) Design Adoption and Repayment.--The Secretary may require an
eligible entity to return to the Secretary any grant funds received
under this section if the selected pre-reviewed designs submitted under
this section have not been adopted during the 5-year period following
receipt of the grant, unless that period is extended by the Secretary.
(h) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary such sums as are necessary to carry out this
section.
(2) Technical assistance.--The Secretary may set aside not
more than 5 percent of amounts appropriated under paragraph (1)
in a fiscal year to provide technical assistance to grant
recipients under this section and pre-grant technical
assistance for prospective applicants.
SEC. 211. BUILD MORE HOUSING NEAR TRANSIT ACT.
Section 5309 of title 49, United States Code, is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (6) as paragraph
(7); and
(B) by inserting after paragraph (5) the following:
``(6) Pro-housing policy.--The term `pro-housing policy'--
``(A) means any adopted State or local policy that
will remove regulatory barriers to the construction or
preservation of housing units, including affordable
housing units; and
``(B) shall include any adopted State or local
policy that--
``(i) reduces or eliminates parking
minimums;
``(ii) establishes a by-right approval
process for housing under which land use
development approval is limited to determining
that the development meets objective zoning and
design standards that--
``(I) involve no subjective
judgment by a public official;
``(II) are uniformly verifiable by
reference to an external and uniform
benchmark or criterion available to
both the land use developer and the
public official prior to submission;
and
``(III) include only such standards
as are published and adopted by
ordinance or resolution by a
jurisdiction before submission of a
development application;
``(iii) reduces or eliminates minimum lot
sizes;
``(iv) eliminates or raises residential
property height limits or increases the number
of dwelling units permitted to be constructed
under a by-right approval process; or
``(v) carries out other policies as
determined by the Secretary, in consultation
with the Secretary of Housing and Urban
Development.'';
(2) in subsection (g)(2), by adding at the end the
following:
``(D) Eligibility for adjustment of rating for
project justification criteria for pro-housing
policies; considerations.--In evaluating and rating a
project as a whole for project justification under
subparagraph (A), the Secretary--
``(i) may increase 1 point on the 5-point
scale (high, medium-high, medium, medium-low,
or low) the rating of a project if the
applicant submits documented evidence of pro-
housing policies for areas accessible to
transit facilities along the project route; and
``(ii) should consider whether the pro-
housing policies documented by the applicant
will result, through new production and
preservation, in an amount of housing units,
including housing units affordable below the
area median income, that is appropriate to
expected housing demand in the project area.
``(E) Consultation.--In developing the evaluation
process that could lead to the increased rating
described in subparagraph (D)(i), the Secretary shall
consult with the Secretary of Housing and Urban
Development.'';
(3) in subsection (h)(6), by adding at the end the
following:
``(C) Eligibility for adjustment of rating for
project justification criteria for pro-housing
policies; considerations.--In evaluating and rating the
benefits of a project under subparagraph (A), the
Secretary--
``(i) may increase the rating of a project
if the applicant submits documented evidence of
pro-housing policies for areas accessible to
transit facilities along the project route; and
``(ii) should consider whether the pro-
housing policies documented by the applicant
will result, through new production and
preservation, in an amount of housing units,
including housing units affordable below the
area median income, that is appropriate to
expected housing demand in the project area.
``(D) Consultation.--In developing the evaluation
process that could lead to the increased rating
described in subparagraph (C)(i), the Secretary shall
consult with the Secretary of Housing and Urban
Development.''; and
(4) in subsection (o)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking
``and'' at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) information concerning projects for which the
applicant submitted pro-housing policies under
subsection (g)(2)(D) or subsection (h)(6) and received
an adjustment of rating for project justification.''.
SEC. 212. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE ENVIRONMENTS
(RESIDE) ACT.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that--
(A) serves households earning not more than 100
percent of the area median income, if a majority of the
housing units are affordable to households earning not
more than 80 percent of the area median income; or
(B) serves households earning not more than 120
percent of the area median income, if the majority of
the housing units are affordable to households earning
not more than 60 percent of the area median income.
(2) Converted housing unit.--The term ``converted housing
unit'' means a housing unit that is created using a covered
grant.
(3) Covered grant.--The term ``covered grant'' means a
grant awarded under the Pilot Program.
(4) Eligible entity.--The term ``eligible entity'' means a
participating jurisdiction, as defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704).
(5) HOME investment partnerships program.--The term ``HOME
Investment Partnerships Program'' means the program under
subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.).
(6) Pilot program.--The term ``Pilot Program'' means the
Blighted Building to Housing Conversion Program carried out
under subsection (b).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(8) Vacant and abandoned building.--The term ``vacant and
abandoned building'' means a property--
(A) that was constructed for use as a warehouse,
factory, mall, strip mall, or hotel, or for another
industrial or commercial use; and
(B)(i) with respect to which--
(I) a code enforcement inspection has
determined that the property is not safe; and
(II) not less than 90 days have elapsed
since the owner was notified of the
deficiencies in the property and the owner has
taken no corrective action; or
(ii) that is subject to a court-ordered
receivership or nuisance abatement related to
abandonment pursuant to State or local law or otherwise
meets the definition of an abandoned property under
State law.
(b) Grant Program.--For each of fiscal years 2027 through 2031, if
the amounts made available to carry out the HOME Investment
Partnerships Program exceed $1,350,000,000, the Secretary may use not
more than $100,000,000 of the excess amounts to carry out a pilot
program, to be known as the ``Blighted Building to Housing Conversion
Program'', under which the Secretary awards grants on a competitive
basis to eligible entities to convert vacant and abandoned buildings
into attainable housing.
(c) Amount of Grant.--
(1) In general.--For any fiscal year for which $100,000,000
is available to carry out the Pilot Program pursuant to
subsection (b), the amount of a covered grant shall be not less
than $1,000,000 and not more than $10,000,000.
(2) Fiscal years with lower funding.--For any fiscal year
for which less than $100,000,000 is available to carry out the
Pilot Program pursuant to subsection (b), the Secretary shall
seek to maximize the number of covered grants awarded.
(d) Relation to HOME Investment Partnerships Program Formula
Allocation.--A covered grant awarded to an eligible entity shall be in
addition to, and shall not affect, the formula allocation for the
eligible entity under the HOME Investment Partnerships Program.
(e) Priority.--In awarding covered grants, the Secretary shall give
priority to an eligible entity that--
(1) will use the covered grant in a community that is
experiencing economic distress;
(2) will use the covered grant in a qualified opportunity
zone (as defined in section 1400Z-1(a) of the Internal Revenue
Code of 1986);
(3) will use the covered grant to construct housing that
will serve a need identified in the comprehensive housing
affordability strategy and community development plan of the
eligible entity under part 91 of title 24, Code of Federal
Regulations, or any successor regulation (commonly referred to
as a ``consolidated plan''); or
(4) has enacted ordinances to reduce regulatory barriers to
conversion of vacant and abandoned buildings to housing, which
shall not include any alteration of an ordinance that governs
safety and habitability.
(f) Use of Funds.--An eligible entity may use a covered grant for--
(1) property acquisition;
(2) demolition;
(3) health hazard remediation;
(4) site preparation;
(5) construction, renovation, or rehabilitation; or
(6) the establishment, maintenance, or expansion of
community land trusts.
(g) Applicability of HOME Requirements.--The requirements for
rental, sale, and resale of housing under the HOME Investment
Partnerships Program shall apply to rental, sale, and resale of
converted housing units under the Pilot Program.
(h) Waiver Authority.--In administering covered grants, the
Secretary may waive, or specify alternative requirements for, any
statute or regulation that the Secretary administers in connection with
the obligation by the Secretary or the use by eligible entities of
covered grant funds (except for requirements related to fair housing,
nondiscrimination, labor standards, or the environment) if the
Secretary makes a public finding that good cause exists for the waiver
or alternative requirement.
(i) Study; Report.--Not later than 180 days after the termination
of the Pilot Program, the Secretary shall study and submit a report to
Congress on the impact of the Pilot Program on--
(1) improving the tax base of local communities;
(2) increasing access to affordable housing, especially for
elderly individuals, disabled individuals, and veterans;
(3) increasing homeownership; and
(4) removing blight.
SEC. 213. HOUSING AFFORDABILITY ACT.
(a) Multifamily Loan Limit Study.--The Commissioner of the Federal
Housing Administration, in consultation with the Secretary of the
Department of Housing and Urban Development, shall conduct a study to
assess--
(1) whether current multifamily loan limits for each
multifamily mortgage insurance program are set at appropriate
amounts, including to cover the cost of land and construction;
(2) whether the Commissioner has sufficient authority to
set loan limits for each multifamily mortgage insurance program
at appropriate amounts, including to cover the cost of land and
construction;
(3) the potential impacts of altering the calculation of
annual adjustments under section 206A of the National Housing
Act (12 U.S.C. 1712a) using the percentage change in the
Consumer Price Index for All Urban Consumers to instead use the
percentage change in the Price Deflator Index of Multifamily
Residential Units Under Construction released by the Bureau of
the Census from March of the previous year to March of the year
in which the adjustment is made, or a combination thereof,
including--
(A) the impact on the General Insurance and Special
Risk Insurance Fund;
(B) the availability of multifamily purchase and
construction lending;
(C) the impact on prices, including rental prices,
within the multifamily housing market; and
(D) the impact on housing supply.
(b) Report.--The Commissioner of the Federal Housing Administration
shall submit a report to Congress within 180 days of enactment of this
Act summarizing its findings under the study in subsection (a).
(c) Rulemaking.--The Secretary of Housing and Urban Development
may, in consultation with the Commissioner of the Federal Housing
Administration, conduct notice and comment rulemaking to increase
multifamily loan limits in a manner that would not exceed the
following:
(1) With respect to insurance under section 207 of the
National Housing Act (12 U.S.C. 1713)--
(A) for projects that do not consist of elevator-
type structures--
(i) $83,655 per family unit without a
bedroom;
(ii) $92,664 per family unit with one
bedroom;
(iii) $110,682 per family unit with two
bedrooms;
(iv) $136,422 per family unit with three
bedrooms; and
(v) $154,440 per family unit with four or
more bedrooms; and
(B) for projects that consist of elevator-type
structures--
(i) $96,525 per family unit without a
bedroom;
(ii) $108,108 per family unit with one
bedroom;
(iii) $132,561 per family unit with two
bedrooms;
(iv) $166,023 per family unit with three
bedrooms; and
(v) $187,721.50 per family unit with four
or more bedrooms.
(2) With respect to insurance under section 213 of the
National Housing Act (12 U.S.C. 1715e)--
(A) for projects that do not consist of elevator-
type structures--
(i) $90,665.50 per family unit without a
bedroom;
(ii) $104,524 per family unit with one
bedroom;
(iii) $126,060 per family unit with two
bedrooms;
(iv) $161,354.50 per family unit with three
bedrooms; and
(v) $179,757.50 per family unit with four
or more bedrooms; and
(B) for projects that consist of elevator-type
structures--
(i) $96,525 per family unit without a
bedroom;
(ii) $109,362 per family unit with one
bedroom;
(iii) $132,981 per family unit with two
bedrooms;
(iv) $172,033.50 per family unit with three
bedrooms; and
(v) $188,839 per family unit with four or
more bedrooms.
(3) With respect to insurance under section 220 of the
National Housing Act (12 U.S.C. 1715k)--
(A) for projects that do not consist of elevator-
type structures--
(i) $83,655 per family unit without a
bedroom;
(ii) $92,664 per family unit with one
bedroom;
(iii) $110,682 per family unit with two
bedrooms;
(iv) $136,422 per family unit with three
bedrooms; and
(v) $154,440 per family unit with four or
more bedrooms; and
(B) for projects that consist of elevator-type
structures--
(i) $96,525 per family unit without a
bedroom;
(ii) $108,108 per family unit with one
bedroom;
(iii) $132,561 per family unit with two
bedrooms;
(iv) $161,023 per family unit with three
bedrooms; and
(v) $187,721.50 per family unit with four
or more bedrooms.
(4) With respect to insurance under section 221 of the
National Housing Act (12 U.S.C. 1715l)--
(A) for projects that do not consist of elevator-
type structures--
(i) $83,254.50 per family unit without a
bedroom;
(ii) $94,498.50 per family unit with one
bedroom;
(iii) $114,224 per family unit with two
bedrooms;
(iv) $143,372 per family unit with three
bedrooms; and
(v) $162,461 per family unit with four or
more bedrooms; and
(B) for projects that consist of elevator-type
structures--
(i) $89,927 per family unit without a
bedroom;
(ii) $103,090 per family unit with one
bedroom;
(iii) $125,354 per family unit with two
bedrooms;
(iv) $162,162 per family unit with three
bedrooms; and
(v) $178,008.50 per family unit with four
or more bedrooms.
(5) With respect to insurance under section 231 of the
National Housing Act (12 U.S.C. 1715v)--
(A) for projects that do not consist of elevator-
type structures--
(i) $83,254.50 per family unit without a
bedroom;
(ii) $94,498.50 per family unit with one
bedroom;
(iii) $114,224 per family unit with two
bedrooms;
(iv) $143,372 per family unit with three
bedrooms; and
(v) $162,461 per family unit with four or
more bedrooms; and
(B) for projects that consist of elevator-type
structures--
(i) $89,927 per family unit without a
bedroom;
(ii) $103,090 per family unit with one
bedroom;
(iii) $125,354 per family unit with two
bedrooms;
(iv) $162,162 per family unit with three
bedrooms; and
(v) $178,008.50 per family unit with four
or more bedrooms.
(6) With respect to insurance under section 234 of the
National Housing Act (12 U.S.C. 1715y)--
(A) for projects that do not consist of elevator-
type structures--
(i) $92,505.50 per family unit without a
bedroom;
(ii) $106,658 per family unit with one
bedroom;
(iii) $128,631.50 per family unit with two
bedrooms;
(iv) $164,648 per family unit with three
bedrooms; and
(v) $183,425 per family unit with four or
more bedrooms; and
(B) for projects that consist of elevator-type
structures--
(i) $97,350 per family unit without a
bedroom;
(ii) $111,593 per family unit with one
bedroom;
(iii) $135,696 per family unit with two
bedrooms;
(iv) $175,544.50 per family unit with three
bedrooms; and
(v) $192,693.50 per family unit with four
or more bedrooms.
(d) Rule of Construction.--Nothing in this section or the amendment
made by this section shall be construed to limit the authority of the
Secretary of Housing and Urban Development to revise the statutory
exceptions for high-cost percentage and high-cost areas annual
indexing.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
SEC. 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) Manufactured Home Certifications.--Section 604 of the National
Manufactured Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5403) is amended by adding at the end the following:
``(i) Manufactured Home Certifications.--
``(1) In general.--
``(A) Initial certification.--Subject to
subparagraph (B), not later than 1 year after the date
of enactment of the Renewing Opportunity in the
American Dream to Housing Act of 2025, a State shall
submit to the Secretary an initial certification that
the laws and regulations of the State--
``(i) treat any manufactured home in parity
with a manufactured home (as defined and
regulated by the State); and
``(ii) subject a manufactured home without
a permanent chassis to the same laws and
regulations of the State as a manufactured home
built on a permanent chassis, including with
respect to financing, title, insurance,
manufacture, sale, taxes, transportation,
installation, and other areas as the Secretary
determines, after consultation with and
approval by the consensus committee, are
necessary to give effect to the purpose of this
section.
``(B) State plan submission.--Any State plan
submitted under subparagraph (C) shall contain the
required State certification under subparagraph (A)
and, if contained therein, no additional or State
certification under subparagraph (A) or paragraph (3).
``(C) Extended deadline.--With respect to a State
with a legislature that meets biennially, the deadline
for the submission of the initial certification
required under subparagraph (A) shall be 2 years after
the date of enactment of the Renewing Opportunity in
the American Dream to Housing Act of 2025.
``(D) Late certification.--
``(i) No waiver.--The Secretary may not
waive the prohibition described in paragraph
(5)(B) with respect to a certification
submitted after the deadline under subparagraph
(A) or paragraph (3) unless the Secretary
approves the late certification.
``(ii) Rule of construction.--Nothing in
this subsection shall be construed to prevent a
State from submitting the initial certification
required under subparagraph (A) after the
required deadline under that subparagraph.
``(2) Form of state certification not presented in a state
plan.--The initial certification required under paragraph
(1)(A), if not submitted with a State plan under paragraph
(1)(B), shall contain, in a form prescribed by the Secretary,
an attestation by an official that the State has taken the
steps necessary to ensure the veracity of the certification
required under paragraph (1)(A), including, as necessary, by--
``(A) amending the definition of `manufactured
home' in the laws and regulations of the State; and
``(B) directing State agencies to amend the
definition of `manufactured home' in regulations.
``(3) Annual recertification.--Not later than a date to be
determined by the Secretary each year, a State shall submit to
the Secretary an additional certification that--
``(A) confirms the accuracy of the initial
certification submitted under subparagraph (A) or (B)
of paragraph (1); and
``(B) certifies that any new laws or regulations
enacted or adopted by the State since the date of the
previous certification does not change the veracity of
the initial certification submitted under paragraph
(1)(A).
``(4) List.--The Secretary shall publish and maintain in
the Federal Register and on the website of the Department of
Housing and Urban Development a list of States that are up-to-
date with the submission of initial and subsequent
certifications required under this subsection.
``(5) Prohibition.--
``(A) Definition.--In this paragraph, the term
`covered manufactured home' means a home that is--
``(i) not considered a manufactured home
under the laws and regulations of a State
because the home is constructed without a
permanent chassis;
``(ii) considered a manufactured home under
the definition of the term in section 603; and
``(iii) constructed after the date of
enactment of the Renewing Opportunity in the
American Dream to Housing Act of 2025.
``(B) Building, installation, and sale.--If a State
does not submit a certification under paragraph (1)(A)
or (3) by the date on which those certifications are
required to be submitted--
``(i) with respect to a State in which the
State administers the installation of
manufactured homes, the State shall prohibit
the manufacture, installation, or sale of a
covered manufactured home within the State; and
``(ii) with respect to a State in which the
Secretary administers the installation of
manufactured homes, the State and the Secretary
shall prohibit the manufacture, installation,
or sale of a covered manufactured home within
the State.''.
(c) Other Federal Laws Regulating Manufactured Homes.--The
Secretary of Housing and Urban Development may coordinate with the
heads of other Federal agencies to ensure that Federal agencies treat a
manufactured home (as defined in Federal laws and regulations other
than section 603 of the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5402)) in the same manner as a
manufactured home (as defined in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5402), as amended by this Act).
(d) Assistance to States.--Section 609 of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5408)
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) model guidance to support the submission of the
certification required under section 604(i).''.
(e) Preemption.--Nothing in this section or the amendments made by
this section shall be construed as limiting the scope of Federal
preemption under section 604(d) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403(d)).
SEC. 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 meet applicable State and local building codes of the
area in which the home will be located, and that are
transported to the home building site, installed on
foundations, and completed.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) FHA Construction Financing Programs.--
(1) In general.--The Secretary shall conduct a review of
Federal Housing Administration construction financing programs
to identify barriers to the use of modular home methods.
(2) Requirements.--In conducting the review under paragraph
(1), the Secretary shall--
(A) identify and evaluate regulatory and
programmatic features that restrict participation in
construction financing programs by modular home
developers, including construction draw schedules; and
(B) identify administrative measures authorized
under section 525 of the National Housing Act (12
U.S.C. 1735f-3) to facilitate program utilization by
modular home developers.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall publish a report
that describes the results of the review conducted under
paragraph (1), which shall include a description of
programmatic and policy changes that the Secretary recommends
to reduce or eliminate identified barriers to the use of
modular home methods in Federal Housing Administration
construction financing programs.
(4) Rulemaking.--
(A) In general.--Not later than 120 days after the
date on which the Secretary publishes the report under
paragraph (3), the Secretary shall initiate a
rulemaking to examine an alternative draw schedule for
construction financing loans provided to modular and
manufactured home developers, which shall include the
ability for interested stakeholders to provide robust
public comment.
(B) Determination.--Following the period for public
comment under subparagraph (A), the Secretary shall--
(i) issue a final rule regarding an
alternative draw schedule described in
subparagraph (A); or
(ii) provide an explanation as to why the
rule shall not become final.
(c) Standardized Uniform Commercial Code for Modular Homes.--
(1) Award.--The Secretary may award a grant to study the
design and feasibility of a standardized uniform commercial
code for modular homes, which shall evaluate--
(A) the utility of a standardized coding system for
serializing and securing modules, streamlining design
and construction, and improving modular home
innovation; and
(B) a means to coordinate a standardized code with
financing incentives.
(2) Authorization of appropriations.--There is authorized
to be appropriated such funds as may be necessary to carry out
paragraph (1).
SEC. 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;
(V) in subparagraph (F), by
striking ``and'' at the end;
(VI) in subparagraph (G), by
striking the period at the end and
inserting ``; and''; and
(VII) by inserting after
subparagraph (G) the following:
``(H) such principal amount as the Secretary may prescribe
if made for the purpose of financing the construction of an
accessory dwelling unit.'';
(ii) in the matter immediately preceding
paragraph (2)--
(I) by striking ``regulation'' and
inserting ``notice'';
(II) by striking ``increase'' and
inserting ``set'';
(III) by striking ``(A)(ii), (C),
(D), and (E)'' and inserting ``(A)
through (H)'';
(IV) by inserting ``, or as
necessary to achieve the goals of the
Federal Housing Administration,
periodically reset the dollar amount
limitations in subparagraphs (A)
through (H) based on justification and
methodology set forth in advance by
regulation'' before the period at the
end; and
(V) by adjusting the margins
appropriately;
(iii) in paragraph (3), by striking
``exceeds--'' and all that follows through the
period at the end and inserting ``exceeds such
period of time as determined by the Secretary,
not to exceed 30 years.'';
(iv) by striking paragraph (9) and
inserting the following:
``(9) Annual indexing of certain dollar amount
limitations.--The Secretary shall develop or choose 1 or more
methods of indexing in order to annually set the loan limits
established in paragraph (1), based on data the Secretary
determines is appropriate for purposes of this section.''; and
(v) in paragraph (11), by striking
``lease--'' and all that follows through the
period at the end and inserting ``lease meets
the terms and conditions established by the
Secretary''.
(2) Deadline for development or choice of new index;
interim index.--
(A) Deadline for development or choice of new
index.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and
Urban Development shall develop or choose 1 or more
methods of indexing as required under section 2(b)(9)
of the National Housing Act (12 U.S.C. 1703(b)(9)), as
amended by paragraph (1) of this subsection.
(B) Interim index.--During the period beginning on
the date of enactment of this Act and ending on the
date on which the Secretary of Housing and Urban
Development develops or chooses 1 or more methods of
indexing as required under section 2(b)(9) of the
National Housing Act (12 U.S.C. 1703(b)(9)), as amended
by paragraph (1) of this subsection, the method of
indexing established by the Secretary under that
subsection before the date of enactment of this Act
shall apply.
(b) HUD Study of Off-site Construction.--
(1) Definitions.--In this subsection:
(A) Off-site construction housing.--The term ``off-
site construction housing'' includes manufactured homes
and modular homes.
(B) Manufactured home.--The term ``manufactured
home'' means any home constructed in accordance with
the construction and safety standards established under
the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
(C) Modular home.--The term ``modular home'' means
a home that is constructed in a factory in 1 or more
modules, each of which meet applicable State and local
building codes of the area in which the home will be
located, and that are transported to the home building
site, installed on foundations, and completed.
(2) Study.--The Secretary of Housing and Urban Development
shall conduct a study and submit to Congress a report on the
cost effectiveness of off-site construction housing, that
includes--
(A) an analysis of the advantages of the impact of
centralization in a factory and transportation to a
construction site on cost, precision, and materials
waste;
(B) the extent to which off-site construction
housing meets housing quality standards under the
National Standards for the Physical Inspection of Real
Estate, or other standards as the Secretary may
prescribe, compared to the extent for site-built homes,
for such standards;
(C) the expected replacement and maintenance costs
over the first 40 years of life of off-site
construction homes compared to those costs for site-
built homes; and
(D) opportunities for use beyond single-family
housing, such as applications in accessory dwelling
units, two- to four-unit housing, and large multifamily
housing.
SEC. 304. PRICE ACT.
Title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended--
(1) in section 105(a) (42 U.S.C. 5305(a)), in the matter
preceding paragraph (1), by striking ``Activities'' and
inserting ``Unless otherwise authorized under section 123,
activities''; and
(2) by adding at the end the following:
``SEC. 123. PRESERVATION AND REINVESTMENT FOR COMMUNITY ENHANCEMENT.
``(a) Definitions.--In this section:
``(1) Community development financial institution.--The
term `community development financial institution' means an
institution that has been certified as a community development
financial institution (as defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of 1994
(12 U.S.C. 4702)) by the Secretary of the Treasury.
``(2) Eligible manufactured housing community.--The term
`eligible manufactured housing community' means a manufactured
housing community that--
``(A) is affordable to low- and moderate-income
persons, as determined by the Secretary, but not more
than 120 percent of the area median income; and
``(B)(i) is owned by the residents of the
manufactured housing community through a resident-
controlled entity such as a resident-owned cooperative;
or
``(ii) will be maintained as such a community, and
remain affordable for low- and moderate-income persons,
to the maximum extent practicable and for the longest
period feasible.
``(3) Eligible recipient.--The term `eligible recipient'
means--
``(A) an eligible manufactured housing community;
``(B) a unit of general local government;
``(C) a housing authority;
``(D) a resident-owned community;
``(E) a resident-owned cooperative;
``(F) a nonprofit entity with housing expertise or
a consortia of such entities;
``(G) a community development financial
institution;
``(H) an Indian tribe;
``(I) a tribally designated housing entity;
``(J) a State; or
``(K) any other entity that is--
``(i) an owner-operator of an eligible
manufactured housing community; and
``(ii) working with an eligible
manufactured housing community.
``(4) Indian tribe.--The term `Indian tribe' has the
meaning given the term `Indian tribe' in section 4 of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103).
``(5) Manufactured housing community.--The term
`manufactured housing community' means--
``(A) any community, court, park, or other land
under unified ownership developed and accommodating or
equipped to accommodate the placement of manufactured
homes, where--
``(i) spaces within such community are or
will be primarily used for residential
occupancy;
``(ii) all homes within the community are
used for permanent occupancy; and
``(iii) a majority of such occupied spaces
within the community are occupied by
manufactured homes, which may include homes
constructed prior to enactment of the
Manufactured Home Construction and Safety
Standards; or
``(B) any community that meets the definition of
manufactured housing community used for programs
similar to the program under this section.
``(6) Resident health, safety, and accessibility
activities.--The term `resident health, safety, and
accessibility activities' means the reconstruction, repair, or
replacement of manufactured housing and manufactured housing
communities to--
``(A) protect the health and safety of residents;
``(B) address weatherization and reduce utility
costs; or
``(C) address accessibility needs for residents
with disabilities.
``(7) Tribally designated housing entity.--The term
`tribally designated housing entity' has the meaning given the
term in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4103).
``(b) Establishment.--The Secretary shall, by notice, carry out a
competitive grant program to award funds to eligible recipients to
carry out eligible projects for development of or improvements in
eligible manufactured housing communities.
``(c) Eligible Projects.--
``(1) In general.--Amounts from grants under this section
may be used for--
``(A) community infrastructure, facilities,
utilities, and other land improvements in or serving an
eligible manufactured housing community;
``(B) reconstruction or repair existing housing
within an eligible manufactured housing community;
``(C) replacement of homes within an eligible
manufactured housing community;
``(D) planning;
``(E) resident health, safety, and accessibility
activities in homes in an eligible manufactured housing
community;
``(F) land and site acquisition and infrastructure
for expansion or construction of an eligible
manufactured housing community;
``(G) resident and community services, including
relocation assistance, eviction prevention, and down
payment assistance; and
``(H) any other activity that--
``(i) is approved by the Secretary
consistent with the requirements under this
section;
``(ii) improves the overall living
conditions of an eligible manufactured housing
community, which may include the addition or
enhancement of shared spaces such as community
centers, recreational areas, or other
facilities that support resident well-being and
community engagement; and
``(iii) is necessary to protect the health
and safety of the residents of the eligible
manufactured housing community and the long-
term affordability and sustainability of the
community.
``(2) Replacement.--For purposes of subparagraphs (B) and
(C) of paragraph (1), grants under this section--
``(A) may not be used for rehabilitation or
modernization of units that were built before June 15,
1976; and
``(B) may only be used for disposition and
replacement of units described in subparagraph (A),
provided that any replacement housing complies with the
Manufactured Home Construction and Safety Standards or
is another allowed home, as determined by the
Secretary.
``(d) Priority.--In awarding grants under this section, the
Secretary shall prioritize applicants that will carry out activities
that primarily benefit low- and moderate-income residents and preserve
long-term housing affordability for residents of eligible manufactured
housing communities.
``(e) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of law or regulation that the Secretary
administers in connection with use of amounts made available under this
section other than requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a finding
that the waiver or alternative requirement is not inconsistent with the
overall purposes of this section and that the waiver or alternative
requirement is necessary to facilitate the use of amounts made
available under this section.
``(f) Implementation.--
``(1) In general.--Any grant made under this section shall
be made pursuant to criteria for selection of recipients of
such grants that the Secretary shall by regulation establish
and publish together with any notification of availability of
amounts under this section.
``(2) Set aside of grant amounts.--The Secretary may set
aside amounts provided under this section for grants to Indian
tribes and tribally designated housing entities.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.''.
TITLE IV--ACCESSING THE AMERICAN DREAM
SEC. 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 the
occupancy of between 1 and 4 families; and
(B)(i) insured by the Federal Housing
Administration under title II of the National Housing
Act (12 U.S.C. 1707 et seq.);
(ii) made, guaranteed, or insured by the Department
of Veterans Affairs;
(iii) made, guaranteed, or insured by the
Department of Agriculture; or
(iv) eligible to be purchased or securitized by the
Federal Home Loan Mortgage Corporation or the Federal
National Mortgage Association.
(b) Requirement Regarding Loan Originator Compensation Practices.--
Not later than 270 days after the date of enactment of this Act, the
Director shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report on loan originator compensation
practices throughout the residential mortgage market, including the
relative frequency of loan originators being compensated--
(1) with a salary;
(2) with a commission reflecting a fixed percentage of the
amount of credit extended;
(3) with a commission based on a factor other than a fixed
percentage of the amount of credit extended;
(4) with a combination of salary and commission;
(5) on a loan volume basis;
(6) with a commission reflecting a percentage of the amount
of credit extended, for which a minimum or maximum compensation
amount is set; and
(7) by any other mechanism that the Director may find to be
a practice for compensating mortgage loan originators,
including any mechanism that provides a loan originator with
compensation in such a way that the loan originator does not
necessarily receive a lower level of compensation for
originating a small dollar mortgage than the loan originator
would receive for originating a mortgage loan that is not a
small dollar mortgage.
(c) Contents.--The report required under subsection (b) shall
include--
(1) data and other analysis regarding the effect of the
approaches to loan originator compensation described in
subsection (b) on the availability of small dollar mortgage
loans; and
(2) analysis and discussion regarding other potential
barriers to small dollar mortgage lending.
(d) Rulemaking.--Following the issuance of the report required
under subsection (b), the Director may issue regulations to clarify the
forms of compensation a lender may use to compensate a loan originator
that--
(1) are permissible pursuant to section 129B(c) of the
Truth in Lending Act (15 U.S.C. 1639b(c)); and
(2) would result in the loan originator receiving
compensation for originating a small dollar mortgage that is
not less than the compensation the loan originator would
receive for originating a mortgage loan that is not a small
dollar mortgage.
SEC. 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) Amendments.--
(1) In general.--Not later than 270 days after the date of
enactment of this Act, the Director of the Bureau of Consumer
Financial Protection, in consultation with the Secretary of
Housing and Urban Development and the Director of the Federal
Housing Finance Agency, shall evaluate the impact of the
existing thresholds under section 1026.43 of title 12, Code of
Federal Regulations, on small dollar mortgage originations.
(2) Rulemaking.--Following the evaluation required under
paragraph (1), the Director of the Bureau of Consumer Financial
Protection may initiate rulemaking to amend the limitations
with respect to points and fees under section 1026.43 of title
12, Code of Federal Regulations, or any successor regulation,
to encourage additional lending for small dollar mortgages.
SEC. 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
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, so long as the course is
approved by the Secretary or a State appraiser
certifying or licensing agency.''.
(B) Application.--Subparagraph (C) of section
202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as added by subparagraph (A), shall not
apply with respect to any certified appraiser approved
by the Federal Housing Administration to conduct
appraisals on property securing a mortgage to be
insured by the Federal Housing Administration on or
before the effective date under paragraph (3)(C).
(2) Compliance with verifiable education and competency
requirements.--On and after the effective date under paragraph
(3)(C), no appraiser may conduct an appraisal on a property
securing a mortgage to be insured by the Federal Housing
Administration unless--
(A) the appraiser is in compliance with the
requirements under subparagraphs (A) and (B) of section
202(g)(5) of such Act (12 U.S.C. 1708(g)(5)), as
amended by paragraph (1); and
(B) if the appraiser was not approved by the
Federal Housing Administration to conduct appraisals on
mortgages insured by the Federal Housing Administration
before the date on which the mortgagee letter or
guidance take effect under paragraph (3)(C), the
appraiser is in compliance with subparagraph (C) of
such section 202(g)(5).
(3) Implementation.--Not later than the 240 days after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall issue a mortgagee letter or guidance
that shall--
(A) implement the amendments made by paragraph (1);
(B) clearly set forth all of the specific
requirements under section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)), as amended by
paragraph (1), for approval to conduct appraisals on
property secured by a mortgage to be insured by the
Federal Housing Administration, which shall include--
(i) providing that, before the effective
date of the mortgagee letter or guidance,
compliance with the requirements under
subparagraphs (A), (B), and (C) of such section
202(g)(5), as amended by paragraph (1), shall
be considered to fulfill the requirements under
such subparagraphs; and
(ii) providing a method for appraisers to
demonstrate such prior compliance; and
(C) take effect not later than the date that is 180
days after the date on which the Secretary issues the
mortgagee letter or guidance.
(b) Annual Registry Fees for Appraisal Management Companies.--
Section 1109(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter
following clause (ii) of paragraph (4)(B), by adding at the end the
following: ``Subject to the approval of the Council, the Appraisal
Subcommittee may adjust fees established under clause (i) or (ii) to
carry out its functions under this Act.''.
(c) State Credentialed Trainees.--
(1) Maintenance on national registry.--Section 1103(a) of
the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 3332(a)) is amended--
(A) in paragraph (3)--
(i) by inserting ``and State credentialed
trainee appraisers'' after ``licensed
appraisers''; and
(ii) by striking ``and'' at the end;
(B) by striking paragraph (4);
(C) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively; and
(D) in paragraph (4), as so redesignated--
(i) by striking ``year. The report shall
also detail'' and inserting ``year, details'';
(ii) by striking ``provide'' and inserting
``provides''; and
(iii) by striking the period at the end and
inserting ``; and''.
(2) Annual registry fees.--
(A) In general.--Section 1109 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3338) is amended--
(i) in the section heading, by striking
``or licensed'' and inserting ``, licensed, and
credentialed trainee''; and
(ii) in subsection (a)--
(I) in paragraph (1), by inserting
``, and in the case of a State with a
supervisory or trainee program, a
roster listing individuals who have
received a State trainee credential''
after ``this title''; and
(II) by striking paragraph (2) and
inserting the following:
``(2) transmit reports on the issuance and renewal of
licenses, certifications, credentials, sanctions, and
disciplinary actions, including license, credential, and
certification revocations, on a timely basis to the national
registry of the Appraisal Subcommittee;''.
(B) Rule of construction.--Nothing in the
amendments made by subparagraph (A) shall require a
State to establish or operate a program for State
credentialed trainee appraisers, as defined in
paragraph (12) of section 1121 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989, as added by paragraph (4) of this subsection.
(3) Transactions requiring the services of a state
certified appraiser.--Section 1113 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3342) is amended--
(A) by striking ``In determining'' and inserting
``(a) In General.--In determining''; and
(B) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In performing
an appraisal under this section, a State certified appraiser may use
the assistance of a State credentialed trainee appraiser or an
unlicensed trainee appraiser, except that a State certified appraiser
assisted by a trainee shall be liable for final work.''.
(4) Definition.--Section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350)
is amended by adding at the end the following:
``(12) State credentialed trainee appraiser.--The term
`State credentialed trainee appraiser' means an individual
who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser
certifying and licensing agency.''.
(d) Grants for Workforce and Training.--Section 1109(b) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3338(b)) is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies, nonprofit organizations, and institutions
of higher education to support the carrying out of education
and training activities or other activities related to
addressing appraiser industry workforce needs, including
recruiting and retaining workforce talent, such as through
scholarship assistance and career pipeline development.''.
(e) Appraisal Subcommittee.--Section 1011 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is
amended, in the first sentence, by inserting ``the Department of
Veterans Affairs, the Rural Housing Service of the Department of
Agriculture, the Department of Housing and Urban Development,'' after
``Financial Protection,''.
SEC. 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.
``(B) Eligible entity.--The term `eligible entity'
means an entity described in subsection (c)(2).
``(C) Pilot program.--The term `pilot program'
means the pilot program established under paragraph
(2).
``(D) Welfare assistance.--The term `welfare
assistance' has the meaning given the term in section
984.103 of title 24, Code of Federal Regulations, or
any successor regulation.
``(2) Establishment.--The Secretary shall establish a pilot
program under which the Secretary shall select not more than 25
eligible entities to establish and manage escrow accounts for
not more than 5,000 covered families, in accordance with this
subsection.
``(3) Escrow accounts.--
``(A) In general.--An eligible entity selected to
participate in the pilot program--
``(i) shall establish an interest-bearing
escrow account and place into the account an
amount equal to any increase in the amount of
rent paid by each covered family in accordance
with the provisions of section 3, 8(o), or
8(y), as applicable, that is attributable to
increases in earned income by the covered
families during the participation of each
covered family in the pilot program; and
``(ii) notwithstanding any other provision
of law, may use funds it controls under section
8 or 9 for purposes of making the escrow
deposit for covered families assisted under, or
residing in units assisted under, section 8 or
9, respectively, provided such funds are offset
by the increase in the amount of rent paid by
the covered family.
``(B) Income limitation.--An eligible entity may
not escrow any amounts for any covered family whose
adjusted income exceeds 80 percent of the area median
income at the time of enrollment.
``(C) Withdrawals.--A covered family shall be able
to withdraw funds, including interest earned, from an
escrow account established by an eligible entity under
the pilot program--
``(i) after the covered family ceases to
receive welfare assistance; and
``(ii)(I) not earlier than the date that is
5 years after the date on which the eligible
entity establishes the escrow account under
this subsection;
``(II) not later than the date that is 7
years after the date on which the eligible
entity establishes the escrow account under
this subsection, if the covered family chooses
to continue to participate in the pilot program
after the date that is 5 years after the date
on which the eligible entity establishes the
escrow account;
``(III) on the date the covered family
ceases to receive housing assistance under
section 8 or 9, if such date is earlier than 5
years after the date on which the eligible
entity establishes the escrow account;
``(IV) earlier than 5 years after the date
on which the eligible entity establishes the
escrow account, if the covered family is using
the funds to advance a self-sufficiency goal as
approved by the eligible entity; or
``(V) under other circumstances in which
the Secretary determines an exemption for good
cause is warranted.
``(D) Interim recertification.--For purposes of the
pilot program, a covered family may recertify the
income of the covered family multiple times per year,
as determined by the Secretary, and not fewer than once
per year.
``(E) Contract or plan.--A covered family is not
required to complete a standard contract of
participation or an individual training and services
plan in order to participate in the pilot program.
``(4) Effect of increases in family income.--Any increase
in the earned income of a covered family during the enrollment
of the family in the pilot program may not be considered as
income or a resource for purposes of eligibility of the family
for other benefits, or amount of benefits payable to the
family, under any program administered by the Secretary.
``(5) Application.--
``(A) In general.--An eligible entity seeking to
participate in the pilot program shall submit to the
Secretary an application--
``(i) at such time, in such manner, and
containing such information as the Secretary
may require by notice; and
``(ii) that includes the number of proposed
covered families to be served by the eligible
entity under this subsection.
``(B) Geographic and entity variety.--The Secretary
shall ensure that eligible entities selected to
participate in the pilot program--
``(i) are located across various States and
in both urban and rural areas; and
``(ii) vary by size and type, including
both public housing agencies and private owners
of projects receiving project-based rental
assistance under section 8.
``(6) Notification and opt-out.--An eligible entity
participating in the pilot program shall--
``(A) notify covered families of their enrollment
in the pilot program;
``(B) provide covered families with a detailed
description of the pilot program, including how the
pilot program will impact their rent and finances;
``(C) inform covered families that the families
cannot simultaneously participate in the pilot program
and the Family Self-Sufficiency program under this
section; and
``(D) provide covered families with the ability to
elect not to participate in the pilot program--
``(i) not less than 2 weeks before the date
on which the escrow account is established
under paragraph (3); and
``(ii) at any point during the duration of
the pilot program.
``(7) Maximum rents.--During the term of participation by a
covered family in the pilot program, the amount of rent paid by
the covered family shall be calculated under the rental
provisions of section 3 or 8(o), as applicable.
``(8) Pilot program timeline.--
``(A) Awards.--Not later than 18 months after the
date of enactment of this subsection, the Secretary
shall select the eligible entities to participate in
the pilot program.
``(B) Establishment and term of accounts.--An
eligible entity selected to participate in the pilot
program shall--
``(i) not later than 6 months after
selection, establish escrow accounts under
paragraph (3) for covered families; and
``(ii) maintain those escrow accounts for
not less than 5 years, or until the date the
family ceases to receive assistance under
section 8 or 9, and, at the discretion of the
covered family, not more than 7 years after the
date on which the escrow account is
established.
``(9) Nonparticipation and housing assistance.--
``(A) In general.--Assistance under section 8 or 9
for a family that elects not to participate in the
pilot program shall not be delayed or denied by reason
of such election.
``(B) No termination.--Housing assistance may not
be terminated as a consequence of participating, or not
participating, in the pilot program under this
subsection for any period of time.
``(10) Study.--Not later than 8 years after the date the
Secretary selects eligible entities to participate in the pilot
program under this subsection, the Secretary shall conduct a
study and submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report on outcomes
for covered families under the pilot program, which shall
evaluate the effectiveness of the pilot program in assisting
families to achieve economic independence and self-sufficiency,
and the impact coaching and supportive services, or the lack
thereof, had on individual incomes.
``(11) Waivers.--To allow selected eligible entities to
effectively administer the pilot program and make the required
escrow account deposits under this subsection, the Secretary
may waive requirements under this section.
``(12) Termination.--The pilot program under this
subsection shall terminate on the date that is 10 years after
the date of enactment of this subsection.
``(13) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated to the Secretary for fiscal year 2026 such
sums as may be necessary--
``(i) for technical assistance related to
implementation of the pilot program; and
``(ii) to carry out an evaluation of the
pilot program under paragraph (10).
``(B) Availability.--Any amounts appropriated under
this subsection shall remain available until
expended.''.
SEC. 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)), as amended by section
101(a) of the Housing Opportunity Through Modernization Act of 2016
(Public Law 114-201; 130 Stat. 783), is amended by adding at the end
the following:
``(I) Satisfaction of inspection requirements
through participation in other housing programs.--
``(i) Low-income housing tax credit-
financed buildings.--A dwelling unit shall be
deemed to meet the inspection requirements
under this paragraph if--
``(I) the dwelling unit is in a
building, the acquisition,
rehabilitation, or construction of
which was financed by a person who
received a low-income housing tax
credit under section 42 of the Internal
Revenue Code of 1986 in exchange for
that financing;
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the low-income
housing tax credit program described in
subclause (I) during the preceding 12-
month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(ii) Home investment partnerships
program.--A dwelling shall be deemed to meet
the inspection requirements under this
paragraph if--
``(I) the dwelling unit is assisted
under the HOME Investment Partnerships
Program under title II of the Cranston-
Gonzalez National Affordable Housing
Act (42 U.S.C. 12721 et seq.);
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the program
described in subclause (I) during the
preceding 12-month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iii) Rural housing service.--A dwelling
unit shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is assisted
by the Rural Housing Service of the
Department of Agriculture;
``(II) the dwelling unit was
physically inspected and passed
inspection in connection with the
assistance described in subclause (I)
during the preceding 12-month period;
and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iv) Remote or video inspections.--When
complying with inspection requirements for a
housing unit located in a rural or small area
using assistance under this subtitle, the
Secretary may allow a grantee to conduct a
remote or video inspection of a unit.
``(v) Rule of construction.--Nothing in
clause (i), (ii), (iii), or (iv) shall be
construed to affect the operation of a housing
program described in, or authorized under a
provision of law described in, that clause.''.
(b) Pre-approval of Units.--Section 8(o)(8)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at
the end the following:
``(iv) Initial inspection prior to lease
agreement.--
``(I) Definition.--In this clause,
the term `new landlord' means an owner
of a dwelling unit who has not
previously entered into a housing
assistance payment contract with a
public housing agency under this
subsection for any dwelling unit.
``(II) Early inspection.--Upon the
request of a new landlord, a public
housing agency may inspect the dwelling
unit owned by the new landlord to
determine whether the unit meets the
housing quality standards under
subparagraph (B) before the unit is
selected by a tenant assisted under
this subsection.
``(III) Effect.--An inspection
conducted under subclause (II) that
determines that the dwelling unit meets
the housing quality standards under
subparagraph (B) shall satisfy this
subparagraph and subparagraph (C) if
the new landlord enters into a lease
agreement with a tenant assisted under
this subsection not later than 60 days
after the date of the inspection.
``(IV) Information when family is
selected.--When a public housing agency
selects a family to participate in the
tenant-based assistance program under
this subsection, the public housing
agency shall include in the information
provided to the family a list of
dwelling units that have been inspected
under subclause (II) and determined to
meet the housing quality standards
under subparagraph (B).''.
TITLE V--PROGRAM REFORM
SEC. 501. 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;
(E) promoting best practices in mitigation and
resilient land use planning;
(F) coordinating technical assistance, including
mitigation, resiliency, and recovery training and
information on all relevant legal and regulatory
requirements, to entities that receive disaster
recovery assistance under title I of the Housing and
Community Development Act of 1974 (42 U.S.C. 5301 et
seq.) that demonstrate capacity constraints; and
(G) supporting State, Tribal, and local governments
in developing, coordinating, and maintaining their
capacity for disaster resilience and recovery and
developing pre-disaster recovery and hazard mitigation
plans, in coordination with the Federal Emergency
Management Agency and other Federal agencies.
(2) Establishment of the office of disaster management and
resiliency.--Section 4 of the Department of Housing and Urban
Development Act (42 U.S.C. 3533) is amended by adding at the
end the following:
``(i) Office of Disaster Management and Resiliency.--
``(1) Establishment.--There is established, in the Office
of the Secretary, the Office of Disaster Management and
Resiliency.
``(2) Duties.--The Office of Disaster Management and
Resiliency shall--
``(A) be responsible for oversight and coordination
of all departmental disaster preparedness and response
responsibilities; and
``(B) coordinate with the Federal Emergency
Management Agency, the Small Business Administration,
and the Office of Community Planning and Development
and other offices of the Department in supporting
recovery and resilience activities to provide a
comprehensive approach in working with communities.''.
(c) Long-Term Disaster Recovery Fund.--
(1) Establishment.--There is established in the Treasury of
the United States an account to be known as the Long-Term
Disaster Recovery Fund.
(2) Deposits, transfers, and credit.--
(A) In general.--The Fund shall consist of amounts
appropriated, transferred, and credited to the Fund.
(B) Transfers.--The following may be transferred to
the Fund:
(i) Amounts made available through section
106(c)(4) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5306(c)(4))
as a result of actions taken under section
104(e), 111, or 124(j) of such Act.
(ii) Any unobligated balances available
until expended remaining or subsequently
recaptured from amounts appropriated for any
disaster and related purposes under the heading
``Community Development Fund'' in any Act prior
to the establishment of the Fund.
(C) Use of transferred amounts.--Amounts
transferred to the Fund shall be used for the eligible
uses described in paragraph (3).
(3) Eligible uses of fund.--
(A) In general.--Amounts in the Fund shall be
available--
(i) to provide assistance in the form of
grants under section 124 of the Housing and
Community Development Act of 1974, as added by
subsection (d); and
(ii) for activities of the Department that
support the provision of such assistance,
including necessary salaries and expenses,
information technology, and capacity building,
technical assistance, and pre-disaster
readiness.
(B) Set aside.--Of each amount appropriated for or
transferred to the Fund, 3 percent shall be made
available for activities described in subparagraph
(A)(ii), which shall be in addition to other amounts
made available for those activities.
(C) Transfer of funds.--With respect to amounts
made available for use in accordance with subparagraph
(B)--
(i) amounts may be transferred to the
account under the heading for ``Program
Offices--Salaries and Expenses--Community
Planning and Development'', or any successor
account, for the Department to carry out
activities described in paragraph (1)(B); and
(ii) amounts may be used for the activities
described in subparagraph (A)(ii) and for the
administrative costs of administering any funds
appropriated to the Department under the
heading ``Community Planning and Development--
Community Development Fund'' for any major
disaster declared under section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170) in
any Act before the establishment of the Fund.
(D) Inspector general.--
(i) In general.--Not less than one-tenth of
1 percent of each series of awards the
Secretary makes from the Fund shall be
transferred to the account under the heading
``Office of Inspector General'' for the
Department of Housing and Urban Development to
support audit activities and to investigate
grantee noncompliance with program requirements
and waste, fraud, and abuse as a result of
appropriations made available through the Fund.
(ii) Availability.--Funding under clause
(i) shall not be made available to the Office
of Inspector General until 90 days after the
date on which the grantee plan or supplemental
plan for the grantee is approved by the
Secretary under subsection (c) or (f)(3)(C) of
section 124 of the Housing and Community
Development Act of 1974, as added by subsection
(d), is approved by the Secretary.
(4) Interchangeability of prior administrative amounts.--
Any amounts appropriated in any Act prior to the establishment
of the Fund and transferred to the account under the heading
``Program Offices--Salaries and Expenses--Community Planning
and Development'', or any predecessor account, for the
Department for the costs of administering funds appropriated to
the Department under the heading ``Community Planning and
Development--Community Development Fund'' for any major
disaster declared under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170)
shall be available for the costs of administering any such
funds provided by any prior or future Act, notwithstanding the
purposes for which those amounts were appropriated and in
addition to any amount provided for the same purposes in other
appropriations Acts.
(5) Availability of amounts.--Amounts appropriated,
transferred, and credited to the Fund shall remain available
until expended.
(6) Formula allocation.--Use of amounts in the Fund for
grants shall be made by formula allocation in accordance with
the requirements of section 124(a) of the Housing and Community
Development Act of 1974, as added by subsection (d).
(7) Authorization of appropriations.--There are authorized
to be appropriated to the Fund such sums as may be necessary to
respond to current or future major disasters declared under
section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5179) for grants under
section 124 of the Housing and Community Development Act of
1974, as added by subsection (d).
(d) Establishment of CDBG Disaster Recovery Program.--Title I of
the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et
seq.), as amended by this Act, is amended--
(1) in section 102(a) (42 U.S.C. 5302(a))--
(A) in paragraph (20)--
(i) by redesignating subparagraph (B) as
subparagraph (C);
(ii) in subparagraph (C), as so
redesignated, by inserting ``or (B)'' after
``subparagraph (A)''; and
(iii) by inserting after subparagraph (A)
the following:
``(B) The term `persons of extremely low income' means
families and individuals whose income levels do not exceed
household income levels determined by the Secretary under
section 3(b)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(2)(C)), except that the Secretary may provide
alternative definitions for the Commonwealth of Puerto Rico,
Guam, the Commonwealth of the Northern Mariana Islands, the
United States Virgin Islands, and American Samoa.''; and
(B) by adding at the end the following:
``(25) The term `major disaster' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122).'';
(2) in section 106(c)(4) (42 U.S.C. 5306(c)(4))--
(A) in subparagraph (A)--
(i) by striking ``declared by the President
under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act'';
(ii) inserting ``States for use in
nonentitlement areas and to'' before
``metropolitan cities''; and
(iii) inserting ``major'' after ``affected
by the'';
(B) in subparagraph (C)--
(i) by striking ``metropolitan city or''
and inserting ``State, metropolitan city, or'';
(ii) by striking ``city or county'' and
inserting ``State, city, or county''; and
(iii) by inserting ``major'' before
``disaster'';
(C) in subparagraph (D), by striking ``metropolitan
cities and'' and inserting ``States, metropolitan
cities, and'';
(D) in subparagraph (F)--
(i) by striking ``metropolitan city or''
and inserting ``State, metropolitan city, or'';
and
(ii) by inserting ``major'' before
``disaster''; and
(E) in subparagraph (G), by striking ``metropolitan
city or'' and inserting ``State, metropolitan city,
or'';
(3) in section 122 (42 U.S.C. 5321), by striking ``disaster
under title IV of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act'' and inserting ``major disaster'';
and
(4) by adding at the end the following:
``SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY
PROGRAM.
``(a) Authorization, Formula, and Allocation.--
``(1) Authorization.--The Secretary is authorized to make
community development block grant disaster recovery grants from
the Long-Term Disaster Recovery Fund established under section
501(c) of the Renewing Opportunity in the American Dream to
Housing Act of 2025 (hereinafter referred to as the `Fund') for
necessary expenses for activities authorized under subsection
(f)(1) related to disaster relief, long-term recovery,
restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed areas resulting from a catastrophic major disaster.
``(2) Grant awards.--Grants shall be awarded under this
section to States, units of general local government, and
Indian tribes based on capacity and the concentration of
damage, as determined by the Secretary, to support the
efficient and effective administration of funds.
``(3) Section 106 allocations.--Grants under this section
shall not be considered relevant to the formula allocations
made pursuant to section 106.
``(4) Federal register notice.--
``(A) In general.--Not later than 30 days after the
date of enactment of this section, the Secretary shall
issue a notice in the Federal Register containing the
latest formula allocation methodologies used to
determine the total estimate of unmet needs related to
housing, economic revitalization, and infrastructure in
the most impacted and distressed areas resulting from a
catastrophic major disaster.
``(B) Public comment.--If the Secretary has not
already requested public comment on the formula
described in the notice required by subparagraph (A),
the Secretary shall solicit public comments on--
``(i) the methodologies described in
subparagraph (A) and seek alternative methods
for formula allocation within a similar total
amount of funding;
``(ii) the impact of formula methodologies
on rural areas and Tribal areas;
``(iii) adjustments to improve targeting to
the most serious needs;
``(iv) objective criteria for grantee
capacity and concentration of damage to inform
grantee determinations and minimum allocation
thresholds; and
``(v) research and data to inform an
additional amount to be provided for mitigation
depending on type of disaster, which shall be
up to 18 percent of the total estimate of unmet
needs.
``(5) Regulations.--
``(A) In general.--The Secretary shall, by
regulation, establish a formula to allocate assistance
from the Fund to the most impacted and distressed areas
resulting from a catastrophic major disaster.
``(B) Formula requirements.--The formula
established under subparagraph (A) shall--
``(i) set forth criteria to determine that
a major disaster is catastrophic, which
criteria shall consider the presence of a high
concentration of damaged housing or businesses
that individual, State, Tribal, and local
resources could not reasonably be expected to
address without additional Federal assistance
or other nationally encompassing data that the
Secretary determines are adequate to assess
relative impact and distress across geographic
areas;
``(ii) include a methodology for
identifying most impacted and distressed areas,
which shall consider unmet serious needs
related to housing, economic revitalization,
and infrastructure;
``(iii) include an allocation calculation
that considers the unmet serious needs
resulting from the catastrophic major disaster
and an additional amount up to 18 percent for
activities to reduce risks of loss resulting
from other natural disasters in the most
impacted and distressed area, primarily for the
benefit of low- and moderate-income persons,
with particular focus on activities that reduce
repetitive loss of property and critical
infrastructure; and
``(iv) establish objective criteria for
periodic review and updates to the formula to
reflect changes in available data.
``(C) Minimum allocation threshold.--The Secretary
shall, by regulation, establish a minimum allocation
threshold.
``(D) Interim allocation.--Until such time that the
Secretary issues final regulations under this
paragraph, the Secretary shall--
``(i) allocate assistance from the Fund
using the formula allocation methodology
published in accordance with paragraph (4); and
``(ii) include an additional amount for
mitigation of up to 18 percent of the total
estimate of unmet need.
``(6) Allocation of funds.--
``(A) In general.--The Secretary shall--
``(i) except as provided in clause (ii),
not later than 90 days after the President
declares a major disaster, use best available
data to determine whether the major disaster is
catastrophic and qualifies for assistance under
the formula described in paragraph (4) or (5),
unless data is insufficient to make this
determination; and
``(ii) if the best available data is
insufficient to make the determination required
under clause (i) within the 90-day period
described in that clause, the Secretary shall
determine whether the major disaster qualifies
when sufficient data becomes available, but in
no case shall the Secretary make the
determination later than 120 days after the
declaration of the major disaster.
``(B) Announcement of allocation.--If amounts are
available in the Fund at the time the Secretary
determines that the major disaster is catastrophic and
qualifies for assistance under the formula described in
paragraph (4) or (5), the Secretary shall immediately
announce an allocation for a grant under this section.
``(C) Additional amounts.--If additional amounts
are appropriated to the Fund after amounts are
allocated under subparagraph (B), the Secretary shall
announce an allocation or additional allocation (if a
prior allocation under subparagraph (B) was less than
the formula calculation) within 15 days of any such
appropriation.
``(7) Preliminary funding.--
``(A) In general.--To speed recovery, the Secretary
is authorized to allocate and award preliminary grants
from the Fund before making a determination under
paragraph (6)(A) if the Secretary projects, based on a
preliminary assessment of impact and distress, that a
major disaster is catastrophic and would likely qualify
for funding under the formula described in paragraph
(4) or (5).
``(B) Amount.--
``(i) Maximum.--The Secretary may award
preliminary funding under subparagraph (A) in
an amount that is not more than $5,000,000.
``(ii) Sliding scale.--The Secretary shall,
by regulation, establish a sliding scale for
preliminary funding awarded under subparagraph
(A) based on the size of the preliminary
assessment of impact and distress.
``(C) Use of funds.--The uses of preliminary
funding awarded under subparagraph (A) shall be limited
to eligible activities that--
``(i) in the determination of the
Secretary, will support faster recovery,
improve the ability of the grantee to assess
unmet recovery needs, plan for the prevention
of improper payments, and reduce fraud, waste,
and abuse; and
``(ii) may include evaluating the interim
housing, permanent housing, and supportive
service needs of the disaster impacted
community, with special attention to vulnerable
populations, such as homeless and low- to
moderate-income households, to inform the
grantee action plan required under subsection
(c).
``(D) Consideration of funding.--Preliminary
funding awarded under subparagraph (A)--
``(i) is not subject to the certification
requirements of subsection (h)(1); and
``(ii) shall not be considered when
calculating the amount of the grant used for
administrative costs, technical assistance, and
planning activities that are subject to the
requirements under subsection (f)(2).
``(E) Waiver.--To expedite the use of preliminary
funding for activities described in this paragraph, the
Secretary may waive or specify alternative requirements
to the requirements of this section in accordance with
subsection (i).
``(F) Amended award.--
``(i) In general.--An award for preliminary
funding under subparagraph (A) may be amended
to add any subsequent amount awarded because of
a determination by the Secretary that a major
disaster is catastrophic and qualifies for
assistance under the formula.
``(ii) Applicability.--Notwithstanding
subparagraph (D), amounts provided by an
amendment under clause (i) are subject to the
requirements under subsections (f)(1) and
(h)(1) and other requirements on grant funds
under this section.
``(G) Technical assistance.--Concurrent with the
allocation of any preliminary funding awarded under
this paragraph, the Secretary shall assign or provide
technical assistance to the recipient of the grant.
``(b) Interchangeability.--
``(1) In general.--The Secretary is authorized to approve
the use of grants under this section to be used interchangeably
and without limitation for the same activities in the most
impacted and distressed areas resulting from a declaration of
another catastrophic major disaster that qualifies for
assistance under the formula established under paragraph (4) or
(5) of subsection (a) or a major disaster for which the
Secretary allocated funds made available under the heading
`Community Development Fund' in any Act prior to the
establishment of the Fund.
``(2) Requirements.--The Secretary shall establish
requirements to expedite the use of grants under this section
for the purpose described in paragraph (1).
``(3) Emergency designation.--Amounts repurposed pursuant
to this subsection that were previously designated by Congress
as an emergency requirement pursuant to the Balanced Budget and
Emergency Deficit Control Act of 1985 or a concurrent
resolution on the budget are designated by the Congress as
being for an emergency requirement pursuant to section
4001(a)(1) of S. Con. Res. 14 (117th Congress), the concurrent
resolution on the budget for fiscal year 2022, and to
legislation establishing fiscal year 2026 budget enforcement in
the House of Representatives.
``(c) Grantee Plans.--
``(1) Requirement.--Not later than 90 days after the date
on which the Secretary announces a grant allocation under this
section, unless an extension is granted by the Secretary, the
grantee shall submit to the Secretary a plan for approval
describing--
``(A) the activities the grantee will carry out
with the grant under this section;
``(B) the criteria of the grantee for awarding
assistance and selecting activities;
``(C) how the use of the grant under this section
will address disaster relief, long-term recovery,
restoration of housing and infrastructure, economic
revitalization, and mitigation in the most impacted and
distressed areas;
``(D) how the use of the grant funds for mitigation
is consistent with hazard mitigation plans submitted to
the Federal Emergency Management Agency under section
322 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5165);
``(E) the estimated amount proposed to be used for
activities that will benefit persons of low and
moderate income;
``(F) how the use of grant funds will repair and
replace existing housing stock for vulnerable
populations, including low- to moderate-income
households;
``(G) how the grantee will address the priorities
described in paragraph (5);
``(H) how uses of funds are proportional to unmet
needs, as required under paragraph (6);
``(I) for State grantees that plan to distribute
grant amounts to units of general local government, a
description of the method of distribution; and
``(J) such other information as may be determined
by the Secretary in regulation.
``(2) Public consultation.--To permit public examination
and appraisal of the plan described in paragraph (1), to
enhance the public accountability of grantee, and to facilitate
coordination of activities with different levels of government,
when developing the plan or substantial amendments proposed to
the plan required under paragraph (1), a grantee shall--
``(A) publish the plan before adoption;
``(B) provide citizens, affected units of general
local government, and other interested parties with
reasonable notice of, and opportunity to comment on,
the plan, with a public comment period of not less than
14 days;
``(C) consider comments received before submission
to the Secretary;
``(D) follow a citizen participation plan for
disaster assistance adopted by the grantee that, at a
minimum, provides for participation of residents of the
most impacted and distressed area affected by the major
disaster that resulted in the grant under this section
and other considerations established by the Secretary;
and
``(E) undertake any consultation with interested
parties as may be determined by the Secretary in
regulation.
``(3) Approval.--The Secretary shall--
``(A) by regulation, specify criteria for the
approval, partial approval, or disapproval of a plan
submitted under paragraph (1), including approval of
substantial amendments to the plan;
``(B) review a plan submitted under paragraph (1)
upon receipt of the plan;
``(C) allow a grantee to revise and resubmit a plan
or substantial amendment to a plan under paragraph (1)
that the Secretary disapproves;
``(D) by regulation, specify criteria for when the
grantee shall be required to provide the required
revisions to a disapproved plan or substantial
amendment under paragraph (1) for public comment prior
to resubmission of the plan or substantial amendment to
the Secretary; and
``(E) approve, partially approve, or disapprove a
plan or substantial amendment under paragraph (1) not
later than 60 days after the date on which the plan or
substantial amendment is received by the Secretary.
``(4) Low- and moderate-income overall benefit.--
``(A) Use of funds.--Not less than 70 percent of a
grant made under this section shall be used for
activities that benefit persons of low and moderate
income unless the Secretary--
``(i) specifically finds that--
``(I) there is compelling need to
reduce the percentage for the grant;
and
``(II) the housing needs of low-
and moderate-income persons have been
addressed; and
``(ii) issues a waiver and alternative
requirement specific to the grant pursuant to
subsection (i) to lower the percentage.
``(B) Regulations.--The Secretary shall, by
regulation, establish protocols that reflect the
required use of funds under subparagraph (A), including
persons with extremely and very low incomes.
``(5) Prioritization.--The grantee shall prioritize
activities that--
``(A) assist persons with extremely low-, low-, and
moderate-incomes and other vulnerable populations to
better recover from and withstand future disasters;
``(B) address housing needs arising from a
disaster, or those needs present prior to a disaster,
including the needs of both renters and homeowners;
``(C) prolong the life of housing and
infrastructure;
``(D) use cost-effective means of preventing harm
to people and property and incorporate protective
features and redundancies; and
``(E) other measures that will assure the
continuation of critical services during future
disasters.
``(6) Proportional allocation.--For each specific disaster,
a grantee under this section shall allocate grant funds
proportional to unmet needs between housing activities for
renters and homeowners, economic revitalization, and
infrastructure unless the Secretary specifically finds that--
``(A) there is a compelling need for a
disproportional allocation among those unmet needs; and
``(B) the disproportional allocation described in
subparagraph (A) is not inconsistent with the
requirements under paragraph (4).
``(7) Disaster risk mitigation.--
``(A) Definition.--In this paragraph, the term
`hazard-prone areas'--
``(i) means areas identified by the
Secretary, in consultation with the
Administrator of the Federal Emergency
Management Agency, at risk from natural hazards
that threaten property damage or health,
safety, and welfare, such as floods, wildfires
(including Wildland-Urban Interface areas),
earthquakes, lava inundation, tornados, and
high winds; and
``(ii) includes areas having special flood
hazards as identified under the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4002 et seq.)
or the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.).
``(B) Hazard-prone areas.--The Secretary, in
consultation with the Administrator of the Federal
Emergency Management Agency, shall establish minimum
construction standards, insurance purchase
requirements, and other requirements for the use of
grant funds in hazard-prone areas.
``(C) Special flood hazards.--
``(i) In general.--For the areas described
in subparagraph (A)(ii), the insurance purchase
requirements established under subparagraph (B)
shall meet or exceed the requirements under
section 102(a) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(a)).
``(ii) Treatment as financial assistance.--
All grants under this section shall be treated
as financial assistance for purposes of section
3(a)(3) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4003(a)(3)).
``(D) Consideration of future risks.--The Secretary
may consider future risks to protecting property and
health, safety, and general welfare, and the likelihood
of those risks, when making the determination of or
modification to hazard-prone areas under this
paragraph.
``(8) Relocation.--
``(A) In general.--The Uniform Relocation
Assistance and Real Property Acquisition Policies Act
of 1970 (42 U.S.C. 4601 et seq.) shall apply to
activities assisted under this section to the extent
determined by the Secretary in regulation, or as
provided in waivers or alternative requirements
authorized in accordance with subsection (i).
``(B) Policy.--Each grantee under this section
shall establish a relocation assistance policy that--
``(i) minimizes displacement and describes
the benefits available to persons displaced as
a direct result of acquisition, rehabilitation,
or demolition in connection with an activity
that is assisted by a grant under this section;
and
``(ii) includes any appeal rights or other
requirements that the Secretary establishes by
regulation.
``(d) Certifications.--Any grant under this section shall be made
only if the grantee certifies to the satisfaction of the Secretary
that--
``(1) the grantee is in full compliance with the
requirements under subsection (c)(2);
``(2) for grants other than grants to Indian tribes, the
grant will be conducted and administered in conformity with the
Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.) and the Fair
Housing Act (42 U.S.C. 3601 et seq.);
``(3) the projected use of funds has been developed so as
to give maximum feasible priority to activities that will
benefit recipients described in subsection (c)(4)(A) and
activities described in subsection (c)(5), and may also include
activities that are designed to aid in the prevention or
elimination of slum and blight to support disaster recovery,
meet other community development needs having a particular
urgency because existing conditions pose a serious and
immediate threat to the health or welfare of the community
where other financial resources are not available to meet such
needs, and alleviate future threats to human populations,
critical natural resources, and property that an analysis of
hazards shows are likely to result from natural disasters in
the future;
``(4) the grant funds shall principally benefit persons of
low- and moderate-income as described in subsection (c)(4)(A);
``(5) for grants other than grants to Indian tribes, within
24 months of receiving a grant or at the time of its 3- or 5-
year update, whichever is sooner, the grantee will review and
make modifications to its non-disaster housing and community
development plans and strategies required by subsections (c)
and (m) of section 104 to reflect the disaster recovery needs
identified by the grantee and consistency with the plan under
subsection (c)(1);
``(6) the grantee will not attempt to recover any capital
costs of public improvements assisted in whole or part under
this section by assessing any amount against properties owned
and occupied by persons of low and moderate income, including
any fee charged or assessment made as a condition of obtaining
access to such public improvements, unless--
``(A) funds received under this section are used to
pay the proportion of such fee or assessment that
relates to the capital costs of such public
improvements that are financed from revenue sources
other than under this chapter; or
``(B) for purposes of assessing any amount against
properties owned and occupied by persons of moderate
income, the grantee certifies to the Secretary that the
grantee lacks sufficient funds received under this
section to comply with the requirements of subparagraph
(A);
``(7) the grantee will comply with the other provisions of
this title that apply to assistance under this section and with
other applicable laws;
``(8) the grantee will follow a relocation assistance
policy that includes any minimum requirements identified by the
Secretary; and
``(9) the grantee will adhere to construction standards,
insurance purchase requirements, and other requirements for
development in hazard-prone areas described in subsection
(c)(7).
``(e) Performance Reviews and Reporting.--
``(1) In general.--The Secretary shall, on not less
frequently than an annual basis until the closeout of a
particular grant allocation, make such reviews and audits as
may be necessary or appropriate to determine whether a grantee
under this section has--
``(A) carried out activities using grant funds in a
timely manner;
``(B) met the performance targets established by
paragraph (2);
``(C) carried out activities using grant funds in
accordance with the requirements of this section, the
other provisions of this title that apply to assistance
under this section, and other applicable laws; and
``(D) a continuing capacity to carry out activities
in a timely manner.
``(2) Performance targets.--The Secretary shall develop and
make publicly available critical performance targets for
review, which shall include spending thresholds for each year
from the date on which funds are obligated by the Secretary to
the grantee until such time all funds have been expended.
``(3) Failure to meet targets.--
``(A) Suspension.--If a grantee under this section
fails to meet 1 or more critical performance targets
under paragraph (2), the Secretary may temporarily
suspend the grant.
``(B) Performance improvement plan.--If the
Secretary suspends a grant under subparagraph (A), the
Secretary shall provide to the grantee a performance
improvement plan with the specific requirements needed
to lift the suspension within a defined time period.
``(C) Report.--If a grantee fails to meet the
spending thresholds established under paragraph (2),
the grantee shall submit to the Secretary, the
appropriate committees of Congress, and each member of
Congress who represents a district or State of the
grantee a written report identifying technical
capacity, funding, or other Federal or State
impediments affecting the ability of the grantee to
meet the spending thresholds.
``(4) Collection of information and reporting.--
``(A) Requirement to report.--A grantee under this
section shall provide to the Secretary such information
as the Secretary may determine necessary for adequate
oversight of the grant program under this section.
``(B) Public availability.--Subject to subparagraph
(D), the Secretary shall make information submitted
under subparagraph (A) available to the public and to
the Inspector General for the Department of Housing and
Urban Development.
``(C) Summary status reports.--To increase
transparency and accountability of the grant program
under this section the Secretary shall, on not less
frequently than an annual basis, post on a public
facing dashboard summary status reports for all active
grants under this section that includes--
``(i) the status of funds by activity;
``(ii) the percentages of funds allocated
and expended to benefit low- and moderate-
income communities;
``(iii) performance targets, spending
thresholds, and accomplishments; and
``(iv) other information the Secretary
determines to be relevant for transparency.
``(D) Considerations.--In carrying out this
paragraph, the Secretary shall take such actions as may
be necessary to ensure that personally identifiable
information regarding applicants for assistance
provided from funds made available under this section
is not made publicly available.
``(E) Research partnerships.--
``(i) In general.--The Secretary may, upon
a formal request from researchers, make
disaggregated information available to the
requestor that is specific and relevant to the
research being conducted, and for the purposes
of researching program impact and efficacy.
``(ii) Privacy protections.--In making
information available under clause (i), the
Secretary shall protect personally identifiable
information as required under section 552a of
title 5, United States Code (commonly known as
the `Privacy Act of 1974').
``(f) Eligible Activities.--
``(1) In general.--Activities assisted under this section--
``(A) may include activities permitted under
section 105 or other activities permitted by the
Secretary by waiver or alternative requirement pursuant
to subsection (i); and
``(B) shall be related to disaster relief, long-
term recovery, restoration of housing and
infrastructure, economic revitalization, and mitigation
in the most impacted and distressed areas resulting
from the major disaster for which the grant was
awarded.
``(2) Prohibition.--Grant funds under this section may not
be used for costs reimbursable by, or for which funds have been
made available by, the Federal Emergency Management Agency, or
the United States Army Corps of Engineers.
``(3) Administrative costs, technical assistance and
planning.--
``(A) In general.--The Secretary shall establish in
regulation the maximum grant amounts a grantee may use
for administrative costs, technical assistance and
planning activities, taking into consideration size of
grant, complexity of recovery, and other factors as
determined by the Secretary, but not to exceed 8
percent for administration and 20 percent in total.
``(B) Availability.--Amounts available for
administrative costs for a grant under this section
shall be available for eligible administrative costs of
the grantee for any grant made under this section,
without regard to a particular disaster.
``(C) Supplemental plan.--
``(i) In general.--Grantees may submit to
the Secretary an optional supplemental plan to
the grantee plan required under this title
specifically for administrative costs, which
shall include a description of the use of all
grant funds for administrative costs, including
for any eligible pre-award program
administrative costs, and how such uses will
prepare the grantee to more effectively and
expeditiously administer funds provided under
the full plan.
``(ii) Use of funds.--If a supplemental
plan is approved under clause (i), a grantee
may draw down the aforementioned administrative
funds before the full grantee plan is approved.
``(iii) Waivers.--In carrying out this
subparagraph, the Secretary may include any
waivers or alternative requirements in
accordance with subsection (i).
``(4) Program income.--Notwithstanding any other provision
of law, any grantee under this section may retain program
income that is realized from grants made by the Secretary under
this section if the grantee agrees that the grantee will
utilize the program income in accordance with the requirements
for grants under this section, except that the Secretary may--
``(A) by regulation, exclude from consideration as
program income any amounts determined to be so small
that compliance with this paragraph creates an
unreasonable administrative burden on the grantee; or
``(B) permit the grantee to transfer remaining
program income to the other grants of the grantee under
this title upon closeout of the grant.
``(5) Prohibition on use of assistance for employment
relocation activities.--
``(A) In general.--Grants under this section may
not be used to assist directly in the relocation of any
industrial or commercial plant, facility, or operation,
from one area to another area, if the relocation is
likely to result in a significant loss of employment in
the labor market area from which the relocation occurs.
``(B) Applicability.--The prohibition under
subparagraph (A) shall not apply to a business that was
operating in the disaster-declared labor market area
before the incident date of the applicable disaster and
has since moved, in whole or in part, from the affected
area to another State or to a labor market area within
the same State to continue business.
``(6) Requirements.--Grants under this section are subject
to the requirements of this section, the other provisions of
this title that apply to assistance under this section, and
other applicable laws, unless modified by waivers or
alternative requirements in accordance with subsection (i).
``(g) Environmental Review.--
``(1) Adoption.--A recipient of funds provided under this
section that uses the funds to supplement Federal assistance
provided under section 203, 402, 403, 404, 406, 407, 408(c)(4),
428, or 502 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172,
5173, 5174(c)(4), 5189f, 5192) may adopt, without review or
public comment, any environmental review, approval, or permit
performed by a Federal agency, and such adoption shall satisfy
the responsibilities of the recipient with respect to such
environmental review, approval, or permit under section
104(g)(1), so long as the actions covered by the existing
environmental review, approval, or permit and the actions
proposed for these supplemental funds are substantially the
same.
``(2) Approval of release of funds.--Notwithstanding
section 104(g)(2), the Secretary or a State may, upon receipt
of a request for release of funds and certification,
immediately approve the release of funds for an activity or
project to be assisted under this section if the recipient has
adopted an environmental review, approval, or permit under
paragraph (1) or the activity or project is categorically
excluded from review under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.).
``(3) Units of general local government.--The provisions of
section 104(g)(4) shall apply to assistance under this section
that a State distributes to a unit of general local government.
``(h) Financial Controls and Procedures.--
``(1) In general.--The Secretary shall develop requirements
and procedures to demonstrate that a grantee under this
section--
``(A) has adequate financial controls and
procurement processes;
``(B) has adequate procedures to detect and prevent
fraud, waste, abuse, and duplication of benefit; and
``(C) maintains a comprehensive and publicly
accessible website.
``(2) Certification.--Before making a grant under this
section, the Secretary shall certify that the grantee has in
place proficient processes and procedures to comply with the
requirements developed under paragraph (1), as determined by
the Secretary.
``(3) Compliance before allocation.--The Secretary may
permit a State, unit of general local government, or Indian
tribe to demonstrate compliance with the requirements for
adequate financial controls developed under paragraph (1)
before a disaster occurs and before receiving an allocation for
a grant under this section.
``(4) Duplication of benefits.--
``(A) In general.--Funds made available under this
section shall be used in accordance with section 312 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5155), as amended by section
1210 of the Disaster Recovery Reform Act of 2018
(division D of Public Law 115-254), and such rules as
may be prescribed under such section 312.
``(B) Penalties.--In any case in which the use of
grant funds under this section results in a prohibited
duplication of benefits, the grantee shall--
``(i) apply an amount equal to the
identified duplication to any allowable costs
of the award consistent with actual, immediate
cash requirement;
``(ii) remit any excess amounts to the
Secretary to be credited to the obligated,
undisbursed balance of the grant consistent
with requirements on Federal payments
applicable to such grantee; and
``(iii) if excess amounts under clause (ii)
are identified after the period of performance
or after the closeout of the award, remit such
amounts to the Secretary to be credited to the
Fund.
``(C) Failure to comply.--Any grantee provided
funds under this section or from prior Appropriations
Acts under the heading `Community Development Fund' for
purposes related to major disasters that fails to
comply with section 312 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5155) or fails to satisfy penalties to resolve a
duplication of benefits shall be subject to remedies
for noncompliance under section 111, unless the
Secretary publishes a determination in the Federal
Register that it is not in the best interest of the
Federal Government to pursue remedial actions.
``(i) Waivers and Alternative Requirements.--
``(1) In general.--In administering grants under this
section, the Secretary may waive, or specify alternative
requirements for, any provision of any statute or regulation
that the Secretary administers in connection with the
obligation by the Secretary or the use by the grantee of those
funds (except for requirements related to fair housing,
nondiscrimination, labor standards, the environment, and the
requirements of this section that do not expressly authorize
modifications by waiver or alternative requirement), if the
Secretary makes a public finding that good cause exists for the
waiver or alternative requirement.
``(2) Effective date.--A waiver or alternative requirement
described in paragraph (1) shall not take effect before the
date that is 5 days after the date of publication of the waiver
or alternative requirement on the website of the Department of
Housing and Urban Development or the effective date for any
regulation published in the Federal Register.
``(3) Public notification.--The Secretary shall notify the
public of all waivers or alternative requirements described in
paragraph (1) in accordance with the requirements of section
7(q)(3) of the Department of Housing and Urban Development Act
(42 U.S.C. 3535(q)(3)).
``(j) Unused Amounts.--
``(1) Deadline to use amounts.--A grantee under this
section shall use an amount equal to the grant within 6 years
beginning on the date on which the Secretary obligates the
amounts to the grantee, as such period may be extended under
paragraph (4).
``(2) Recapture.--The Secretary shall recapture and credit
to the Fund any amount that is unused by a grantee under this
section upon the earlier of--
``(A) the date on which the grantee notifies the
Secretary that the grantee has completed all activities
identified in the disaster grantee's plan under
subsection (c); or
``(B) the expiration of the 6-year period described
in paragraph (1), as such period may be extended under
paragraph (4).
``(3) Retention of funds.--Notwithstanding paragraph (1),
the Secretary--
``(A) shall allow a grantee under this section to
retain amounts needed to close out grants; and
``(B) may allow a grantee under this section to
retain up to 10 percent of the remaining funds to
support maintenance of the minimal capacity to launch a
new program in the event of a future disaster and to
support pre-disaster long-term recovery and mitigation
planning.
``(4) Extension of period for use of funds.--The Secretary
may extend the 6-year period described in paragraph (1) by not
more than 4 years, or not more than 6 years for mitigation
activities, if--
``(A) the grantee submits to the Secretary--
``(i) written documentation of the exigent
circumstances impacting the ability of the
grantee to expend funds that could not be
anticipated; or
``(ii) a justification that such request is
necessary due to the nature and complexity of
the program and projects; and
``(B) the Secretary submits a written justification
for the extension to the Committee on Appropriations
and the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Appropriations and the Committee on Financial Services
of the House of Representatives that specifies the
period of that extension.
``(k) Definition.--In this section, the term `Indian tribe' has the
meaning given the term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).''.
(e) Regulations.--
(1) Proposed rules.--Following consultation with the
Federal Emergency Management Agency, the Small Business
Administration, and other Federal agencies, not later than 6
months after the date of enactment of this Act, the Secretary
shall issue proposed rules to carry out this Act and the
amendments made by this Act and shall provide a 90-day period
for submission of public comments on those proposed rules.
(2) Final rules.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall issue final
regulations to carry out section 124 of the Housing and
Community Development Act of 1974, as added by subsection (d).
(f) Coordination of Disaster Recovery Assistance, Benefits, and
Data With Other Federal Agencies.--
(1) Coordination of disaster recovery assistance.--In order
to ensure a comprehensive approach to Federal disaster relief,
long-term recovery, restoration of housing and infrastructure,
economic revitalization, and mitigation in the most impacted
and distressed areas resulting from a catastrophic major
disaster, the Secretary shall coordinate with the Federal
Emergency Management Agency, to the greatest extent
practicable, in the implementation of assistance authorized
under section 124 of the Housing and Community Development Act
of 1974, as added by subsection (d).
(2) Data sharing agreements.--To support the coordination
of data to prevent duplication of benefits with other Federal
disaster recovery programs while also expediting recovery and
reducing burden on disaster survivors, the Department shall
establish data sharing agreements that safeguard privacy with
relevant Federal agencies to ensure disaster benefits
effectively and efficiently reach intended beneficiaries, while
using effective means of preventing harm to people and
property.
(3) Data transfer from fema and sba to hud.--As permitted
and deemed necessary for efficient program execution, and
consistent with a computer matching agreement entered into
under paragraph (6)(A), the Administrator of the Federal
Emergency Management Agency and the Administrator of the Small
Business Administration shall provide data on disaster
applicants to the Department, including, when necessary,
personally identifiable information, disaster recovery needs,
and resources determined eligible for, and amounts expended, to
the Secretary for all major disasters declared by the President
pursuant to section 401 of Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170) for the purpose
of providing additional assistance to disaster survivors and
prevent duplication of benefits.
(4) Data transfers from hud to hud grantees.--The Secretary
is authorized to provide to grantees under section 124 of the
Housing and Community Development Act of 1974, as added by
subsection (d), offices of the Department, technical assistance
providers, and lenders information that in the determination of
the Secretary is reasonably available and appropriate to inform
the provision of assistance after a major disaster, including
information provided to the Secretary by the Administrator of
the Federal Emergency Management Agency, the Administrator of
the Small Business Administration, or other Federal agencies.
(5) Data transfers from hud grantees to hud, fema, and
sba.--
(A) Reporting.--Grantees under section 124 of the
Housing and Community Development Act of 1974, as added
by subsection (d), shall report information requested
by the Secretary on households, businesses, and other
entities assisted and the type of assistance provided.
(B) Sharing information.--The Secretary shall share
information collected under subparagraph (A) with the
Federal Emergency Management Agency, the Small Business
Administration, and other Federal agencies to support
the planning and delivery of disaster recovery and
mitigation assistance and other related purposes.
(6) Privacy protection.--The Secretary may make and receive
data transfers authorized under this subsection, including the
use and retention of that data for computer matching programs,
to inform the provision of assistance, assess disaster recovery
needs, and prevent the duplication of benefits and other waste,
fraud, and abuse, provided that--
(A) the Secretary enters an information sharing
agreement or a computer matching agreement, when
required by section 522a of title 5, United States Code
(commonly known as the ``Privacy Act of 1974''), with
the Administrator of the Federal Emergency Management
Agency, the Administrator of the Small Business
Administration, or other Federal agencies covering the
transfer of data;
(B) the Secretary publishes intent to disclose data
in the Federal Register;
(C) notwithstanding subparagraphs (A) and (B),
section 552a of title 5, United States Code, or any
other law, the Secretary is authorized to share data
with an entity identified in paragraph (4), and the
entity is authorized to use the data as described in
this section, if the Secretary enters a data sharing
agreement with the entity before sharing or receiving
any information under transfers authorized by this
section, which data sharing agreement shall--
(i) in the determination of the Secretary,
include measures adequate to safeguard the
privacy and personally identifiable information
of individuals; and
(ii) include provisions that describe how
the personally identifiable information of an
individual will be adequately safeguarded and
protected, which requires consultation with the
Secretary and the head of each Federal agency
the data of which is being shared subject to
the agreement.
SEC. 502. HOME INVESTMENT PARTNERSHIPS REAUTHORIZATION AND IMPROVEMENT
ACT.
(a) Authorization.--Section 205 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows:
``SEC. 205. AUTHORIZATION OF PROGRAM.
``The HOME Investment Partnerships Program under subtitle A is
hereby authorized. There is authorized such sums as may be necessary to
carry out subtitle A.''.
(b) Increase in Program Administration Resources.--Subtitle A of
title II of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12741 et seq.) is amended--
(1) in section 212(c) (42 U.S.C. 12742(c)), by striking
``10 percent'' and inserting ``15 percent''; and
(2) in section 220(b) (42 U.S.C. 12750(b))--
(A) by striking ``Recognition.--'' and all that
follows through ``A contribution'' and inserting the
following: ``Recognition.--A contribution''; and
(B) by striking paragraph (2).
(c) Modification of Jurisdictions Eligible for Reallocations.--
Section 217(d)(3) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12747(d)(3)) is amended by striking ``Limitation.--
Unless otherwise specified'' and inserting the following:
"Limitations.-- ``
``(A) Removal of participating jurisdictions from
reallocation.--The Secretary may, upon a finding that
such jurisdiction has failed to meet or comply with the
requirements of this title, remove a participating
jurisdiction from participation in reallocations of
funds made available under this title.
``(B) Reallocation to same type of entity.--Unless
otherwise specified''.
(d) Amendments to Qualification as Affordable Housing.--Section 215
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(E), by striking all that
follows ``purposes of this Act,'' and inserting the
following: ``except upon a foreclosure by a lender (or
upon other transfer in lieu of foreclosure) if such
action--
``(i) recognizes any contractual or legal
rights of public agencies, nonprofit sponsors,
or others to take actions that would avoid
termination of low-income affordability in the
case of foreclosure or transfer in lieu of
foreclosure; and
``(ii) is not for the purpose of avoiding
low-income affordability restrictions, as
determined by the Secretary; and''; and
(B) by adding at the end the following:
``(7) Small-scale housing.--
``(A) Definition.--In this paragraph, the term
`small-scale housing' means housing with not more than
4 rental units.
``(B) Alternative requirements.--Small-scale
housing shall qualify as affordable housing under this
title if--
``(i) the housing bears rents that comply
with paragraph (1)(A);
``(ii) each unit is occupied by a household
that qualifies as a low-income family;
``(iii) the housing complies with paragraph
(1)(D);
``(iv) the housing meets the requirements
under paragraph (1)(E); and
``(v) the participating jurisdiction
monitors ongoing compliance of the housing with
requirements of this title in a manner
consistent with the purposes of section 226(b),
as determined by the Secretary.''; and
(2) in subsection (b)(1), by inserting ``(defined as the
amount borrowed by the homebuyer to purchase the home, or
estimated value after rehabilitation, which may be adjusted to
account for the limits on future value imposed by the resale
restriction)'' after ``purchase price''.
(e) Elimination of Commitment Deadline.--
(1) In general.--Section 218 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12748) is amended--
(A) by striking subsection (g); and
(B) by redesignating subsection (h) as subsection
(g).
(2) Conforming amendment.--Section 218(c) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12748(c))
is amended--
(A) in paragraph (1), by adding ``and'' at the end;
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph
(2); and
(D) in paragraph (2), as so redesignated, by
striking ``section 224'' and inserting ``section 223''.
(f) Reform of Homeownership Resale Restrictions.--Section 215 of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745), as amended by this section, is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating
subparagraphs (A), (B), and (C) as clauses (i), (ii),
and (iii), respectively, and adjusting the margins
accordingly;
(B) by striking paragraph (3);
(C) by redesignating paragraphs (1), (2), and (4)
as subparagraphs (A), (B), and (D), respectively, and
adjusting the margins accordingly;
(D) by inserting after subparagraph (B), as so
redesignated, the following:
``(C) is subject to restrictions that are
established by the participating jurisdiction and
determined by the Secretary to be appropriate,
including with respect to the useful life of the
property, to--
``(i) require that any subsequent purchase
of the property be--
``(I) only by a person who meets
the qualifications specified under
subparagraph (B); and
``(II) at a price that is
determined by a formula or method
established by the participating
jurisdiction that provides the owner
with a reasonable return on investment,
which may include a percentage of the
cost of any improvements; or
``(ii) recapture the investment provided
under this title in order to assist other
persons in accordance with the requirements of
this title, except where there are no net
proceeds or where the net proceeds are
insufficient to repay the full amount of the
assistance; and'';
(E) by striking ``Housing that is for
homeownership'' and inserting the following:
``(1) Qualification.--Housing that is for homeownership'';
and
(F) by adding at the end the following:
``(2) Purchase by community land trust.--Notwithstanding
subparagraph (C)(i) of paragraph (1) and under terms determined
by the Secretary, the Secretary may permit a participating
jurisdiction to allow a community land trust that used
assistance provided under this subtitle for the development of
housing that meets the criteria under paragraph (1), to acquire
the housing--
``(A) in accordance with the terms of the
preemptive purchase option, lease, covenant on the
land, or other similar legal instrument of the
community land trust when the terms and rights in the
preemptive purchase option, lease, covenant, or legal
instrument are and remain subject to the requirements
of this title;
``(B) when the purchase is for--
``(i) the purpose of--
``(I) entering into the chain of
title;
``(II) enabling a purchase by a
person who meets the qualifications
specified under paragraph (1)(B) and is
on a waitlist maintained by the
community land trust, subject to
enforcement by the participating
jurisdiction of all applicable
requirements of this subtitle, as
determined by the Secretary;
``(III) performing necessary
rehabilitation and improvements; or
``(IV) adding a subsidy to preserve
affordability, which may be from
Federal or non-Federal sources; or
``(ii) another purpose determined
appropriate by the Secretary; and
``(C) if, within a reasonable period of time after
the applicable purpose under subparagraph (B) of this
paragraph is fulfilled, as determined by the Secretary,
the housing is then sold to a person who meets the
qualifications specified under paragraph (1)(B).
``(3) Suspension or waiver of requirements for military
members.--A participating jurisdiction, in accordance with
terms established by the Secretary, may suspend or waive a
requirement under paragraph (1)(B) with respect to housing that
otherwise meets the criteria under paragraph (1) if the owner
of the housing--
``(A) is a member of a regular component of the
armed forces or a member of the National Guard on full-
time National Guard duty, active Guard and Reserve
duty, or inactive-duty training (as those terms are
defined in section 101(d) of title 10, United States
Code); and
``(B) has received--
``(i) temporary duty orders to deploy with
a military unit or military orders to deploy as
an individual acting in support of a military
operation, to a location that is not within a
reasonable distance from the housing, as
determined by the Secretary, for a period of
not less than 90 days; or
``(ii) orders for a permanent change of
station.
``(4) Suspension or waiver of requirements for heir or
beneficiary of deceased owner.--Notwithstanding subparagraph
(C) of paragraph (1), housing that meets the criteria under
that paragraph prior to the death of an owner may continue to
qualify as affordable housing if--
``(A) the housing is the principal residence of an
heir or beneficiary of the deceased owner, as defined
by the Secretary; and
``(B) the heir or beneficiary, in accordance with
terms established by the Secretary, assumes the duties
and obligations of the deceased owner with respect to
funds provided under this title.''.
(g) Home Property Inspections.--Section 226(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12756(b)) is
amended--
(1) by striking ``Each participating jurisdiction'' and
inserting the following:
``(1) In general.--Each participating jurisdiction''; and
(2) by striking ``Such review shall include'' and all that
follows and inserting the following:
``(2) On-site inspections.--
``(A) Inspections by units of general local
government.--A review conducted under paragraph (1) by
a participating jurisdiction that is a unit of general
local government shall include an on-site inspection to
determine compliance with housing codes and other
applicable regulations.
``(B) Inspections by states.--A review conducted
under paragraph (1) by a participating jurisdiction
that is a State shall include an on-site inspection to
determine compliance with a national standard as
determined by the Secretary.
``(3) Inclusion in performance report and publication.--A
participating jurisdiction shall include in the performance
report of the participating jurisdiction submitted to the
Secretary under section 108(a), and make available to the
public, the results of each review conducted under paragraph
(1).''.
(h) Revisions to Strengthen Enforcement and Penalties for
Noncompliance.--Section 223 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12753) is amended--
(1) in the heading, by striking ``penalties for misuse of
funds'' and inserting ``program enforcement and penalties for
noncompliance'';
(2) in the matter preceding paragraph (1), by inserting
after ``any provision of this subtitle'' the following: ``,
including any provision applicable throughout the period
required by section 215(a)(1)(E) and applicable regulations,'';
(3) in paragraph (2), by striking ``or'' at the end;
(4) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(5) by adding at the end the following:
``(4) reduce payments to the participating jurisdiction
under this subtitle by an amount equal to the amount of such
payments which were not expended in accordance with this
title.''.
(i) Tenant and Participant Protections for Small-scale Affordable
Housing.--Section 225 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12755) is amended by adding at the end the
following:
``(e) Tenant Selection for Small-scale Housing.--Paragraphs (2)
through (4) of subsection (d) shall not apply to the owner of small-
scale housing (as defined in section 215(a)(7)).''.
(j) Modification of Rules Related to Community Housing Development
Organizations.--
(1) Definitions of community housing development
organization and community land trust.--
(A) In general.--Section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704) is amended--
(i) in paragraph (6)(B)--
(I) by striking ``significant'';
and
(II) by striking ``and otherwise''
and inserting ``or as otherwise
determined acceptable by the
Secretary''; and
(ii) by adding at the end the following:
``(26) The term `community land trust' means a nonprofit
entity or a State or local government or instrumentality
thereof that--
``(A) is not managed by, or an affiliate of, a for-
profit organization;
``(B) has as a primary purpose acquiring,
developing, or holding land to provide housing that is
permanently affordable to low- and moderate-income
persons, and monitors properties to ensure
affordability is preserved;
``(C) provides housing described in subparagraph
(B) using a ground lease, deed covenant, or other
similar legally enforceable measure, as determined by
the Secretary, that--
``(i) keeps the housing affordable to low-
and moderate-income persons for not less than
30 years; and
``(ii) enables low- and moderate-income
persons to rent or purchase the housing for
homeownership; and
``(D) maintains preemptive purchase options to
purchase the property so the housing remains affordable
to low-and moderate-income persons.''.
(B) Elimination of existing definition of community
land trust.--Section 233 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12773) is
amended by striking subsection (f).
(2) Set-aside for community housing development
organizations.--Section 231 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12771) is amended--
(A) in subsection (a), by striking ``to be
developed, sponsored, or owned by community housing
development organizations'' and inserting ``when a
community housing development organization materially
participates in the ownership or development of such
housing, as determined by the Secretary'';
(B) by striking subsection (b) and inserting the
following:
``(b) Recapture and Reuse.--If any funds reserved under subsection
(a) remain uninvested for a period of 24 months, then the Secretary
shall make such funds available to the participating jurisdiction for
any eligible activities under this title without regard to whether a
community housing development organization materially participates in
the use of the funds.''; and
(C) by striking subsection (c).
(k) Technical Corrections.--The Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) in section 104 (42 U.S.C. 12704)--
(A) by redesignating paragraph (23) (relating to
the definition of the term ``to demonstrate to the
Secretary'') as paragraph (22); and
(B) by redesignating paragraph (24) (relating to
the definition of the term ``insular area'', as added
by section 2(2) of Public Law 102-230) as paragraph
(23);
(2) in section 105(b) (42 U.S.C. 12705(b))--
(A) in paragraph (7), by striking ``Stewart B.
McKinney Homeless Assistance Act'' and inserting
``McKinney-Vento Homeless Assistance Act''; and
(B) in paragraph (8), by striking ``subparagraphs''
and inserting ``paragraphs'';
(3) in section 106 (42 U.S.C. 12706), by striking ``Stewart
B. McKinney Homeless Assistance Act'' and inserting ``McKinney-
Vento Homeless Assistance Act'';
(4) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by
striking ``section 105(b)(15)'' and inserting ``section
105(b)(18)'';
(5) in section 212 (42 U.S.C. 12742)--
(A) in subsection (a)--
(i) in paragraph (3)(A)(ii), by inserting
``United States'' before ``Housing Act''; and
(ii) by redesignating paragraph (5) as
paragraph (4);
(B) in subsection (d)(5), by inserting ``United
States'' before ``Housing Act''; and
(C) in subsection (e)(1)--
(i) by striking ``section 221(d)(3)(ii)''
and inserting ``section 221(d)(4)''; and
(ii) by striking ``not to exceed 140
percent'' and inserting ``as determined by the
Secretary'';
(6) in section 215(a)(6)(B) (42 U.S.C. 20 12745(a)(6)(B)),
by striking ``grand children'' and inserting ``grandchildren'';
(7) in section 217 (42 U.S.C. 12747)--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(3)''
and inserting ``(2)'';
(ii) by striking paragraph (3), as added by
section 211(a)(2)(D) of the Housing and
Community Development Act of 1992 (Public Law
102-550; 106 Stat. 3756); and
(iii) by redesignating the remaining
paragraph (3), as added by the matter under the
heading ``home investment partnerships
program'' under the heading ``Housing
Programs'' in title II of the Departments of
Veterans Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1993 (Public Law 102-389;
106 Stat. 1581), as paragraph (2); and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in the first sentence of
subparagraph (A)--
(aa) by striking ``in
regulation'' and inserting ``,
by regulation,''; and
(bb) by striking ``eligible
jurisdiction'' and inserting
``eligible jurisdictions''; and
(II) in subparagraph (F)--
(aa) in the first
sentence--
(AA) in clause (i),
by striking
``Subcommittee on
Housing and Urban
Affairs'' and inserting
``Subcommittee on
Housing,
Transportation, and
Community
Development''; and
(BB) in clause
(ii), by striking
``Subcommittee on
Housing and Community
Development of the
Committee on Banking,
Finance and Urban
Affairs'' and inserting
``Subcommittee on
Housing and Insurance
of the Committee on
Financial Services'';
and
(bb) in the second
sentence, by striking ``the
Committee on Banking, Finance
and Urban Affairs of the House
of Representatives'' and
inserting ``the Committee on
Financial Services of the House
of Representatives'';
(ii) in paragraph (2)(B), by striking
``$500,000'' each place that term appears and
inserting ``$750,000'';
(iii) in paragraph (3)--
(I) by striking ``$500,000'' each
place that term appears and inserting
``$750,000''; and
(II) by striking ``, except as
provided in paragraph (4)''; and
(iv) by striking paragraph (4);
(8) in section 220(c) (42 U.S.C. 12750(c))--
(A) in paragraph (3), by striking ``Secretary'' and
all that follows and inserting ``Secretary;'';
(B) in paragraph (4), by striking ``under this
title'' and all that follows and inserting ``under this
title;''; and
(C) by redesignating paragraphs (6), (7), and (8)
as paragraphs (5), (6), and (7), respectively;
(9) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by
striking ``for'' the first place that term appears; and
(10) in section 283 (42 U.S.C. 12833)--
(A) in subsection (a), by striking ``Banking,
Finance and Urban Affairs'' and inserting ``Financial
Services''; and
(B) in subsection (b), by striking ``General
Accounting Office'' each place that term appears and
inserting ``Government Accountability Office''.
SEC. 503. RURAL HOUSING SERVICE REFORM ACT.
(a) Application of Multifamily Mortgage Foreclosure Procedures to
Multifamily Mortgages Held by the Secretary of Agriculture and
Preservation of the Rental Assistance Contract Upon Foreclosure.--
(1) Multifamily mortgage procedures.--Section 363(2) of the
Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C.
3702(2)) is amended--
(A) in subparagraph (D), by striking ``and'' at the
end;
(B) in subparagraph (E), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(F) section 514, 515, or 538 of the Housing Act
of 1949 (42 U.S.C. 1484, 1485, 1490p).''.
(2) Preservation of contract.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)) is amended by adding
at the end the following:
``(3) Notwithstanding any other provision of law in managing and
disposing of any multifamily property that is owned or has a mortgage
held by the Secretary, and during the process of foreclosure on any
property with a contract for rental assistance under this section--
``(A) the Secretary shall maintain any rental assistance
payments that are attached to any dwelling units in the
property; and
``(B) the rental assistance contract may be used to provide
further assistance to existing projects under 514, 515, or
516.''.
(b) Study on Rural Housing Loans for Housing for Low- and Moderate-
income Families.--Not later than 6 months after the date of enactment
of this Act, the Secretary of Agriculture shall conduct a study and
submit to Congress a publicly available report on the loan program
under section 521 of the Housing Act of 1949 (42 U.S.C. 1490a),
including--
(1) the total amount provided by the Secretary in subsidies
under such section 521 to borrowers with loans made pursuant to
section 502 of such Act (42 U.S.C. 1472);
(2) how much of the subsidies described in paragraph (1)
are being recaptured; and
(3) the amount of time and costs associated with
recapturing those subsidies.
(c) Authorization of Appropriations for Staffing and IT Upgrades.--
There is authorized to be appropriated to the Secretary of Agriculture
for each of fiscal years 2026 through 2030 such sums as may be
necessary for increased staffing needs and information technology
upgrades to support all Rural Housing Service programs.
(d) Funding for Technical Improvements.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of Agriculture such sums as
may be necessary for fiscal year 2026 for improvements to the
technology of the Rural Housing Service of the Department of
Agriculture used to process and manage housing loans.
(2) Availability.--Amounts appropriated pursuant to
paragraph (1) shall remain available until the date that is 5
years after the date of the appropriation.
(3) Timeline.--The Secretary of Agriculture shall make the
improvements described in paragraph (1) during the 5-year
period beginning on the date on which amounts are appropriated
under paragraph (1).
(e) Permanent Establishment of Housing Preservation and
Revitalization Program.--Title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.) is amended by adding at the end the following:
``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 514, 515, or 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed
under section 514, 515, or 516 that will mature within the 4-
year period beginning upon the provision of the notice, setting
forth the options and financial incentives that are available
to facilitate the extension of the loan term or the option to
decouple a rental assistance contract pursuant to subsection
(f).
``(2) To tenants.--
``(A) In general.--On an annual basis, for each
property financed under section 514, 515, or 516, not
later than the date that is 2 years before the date
that the loan will mature, the Secretary shall provide
written notice to each household residing in the
property that informs them of--
``(i) the date of the loan maturity;
``(ii) the possible actions that may happen
with respect to the property upon that
maturity; and
``(iii) how to protect their right to
reside in federally assisted housing, or how to
secure housing voucher, after that maturity.
``(B) Language.--Notice under this paragraph shall
be provided in plain English and shall be translated to
other languages in the case of any property located in
an area in which a significant number of residents
speak such other languages.
``(c) Loan Restructuring.--Under the program under this section, in
any circumstance in which the Secretary proposes a restructuring to an
owner or an owner proposes a restructuring to the Secretary, the
Secretary may restructure such existing housing loans, as the Secretary
considers appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required by
the Secretary; and
``(5) permanently removing a portion of the housing units
from income restrictions when sustained vacancies have
occurred.
``(d) Renewal of Rental Assistance.--
``(1) In general.--When the Secretary proposes to
restructure a loan or agrees to the proposal of an owner to
restructure a loan pursuant to subsection (c), the Secretary
shall offer to renew the rental assistance contract under
section 521(a)(2) for a term that is the shorter of 20 years
and the term of the restructured loan, subject to annual
appropriations, provided that the owner agrees to bring the
property up to such standards that will ensure maintenance of
the property as decent, safe, and sanitary housing for the full
term of the rental assistance contract.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is not
available for all households in the project for which the loan
is being restructured pursuant to subsection (c), the Secretary
may extend such additional rental assistance to unassisted
households at that project as is necessary to make the project
safe and affordable to low-income households.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall
obtain a restrictive use agreement that is recorded and
obligates the owner to operate the project in accordance with
this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--
Except when the Secretary enters into a 20-year
extension of the rental assistance contract for a
project, the term of the restrictive use agreement for
the project shall be consistent with the term of the
restructured loan for the project.
``(B) Extension of rental assistance contract.--If
the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of
the restrictive use agreement for the project shall be
for the longer of--
``(i) 20 years; or
``(ii) the remaining term of the loan for
that project.
``(C) Termination.--The Secretary may terminate the
20-year use restrictive use agreement for a project
before the end of the term of the agreement if the 20-
year rental assistance contract for the project with
the owner is terminated at any time for reasons outside
the control of the owner.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the
Secretary determines that a loan maturing during the 4-year
period beginning upon the provision of the notice required
under subsection (b)(1) for a project cannot reasonably be
restructured in accordance with subsection (c) because it is
not financially feasible or the owner does not agree with the
proposed restructuring, and the project was operating with
rental assistance under section 521 and the recipient is a
borrower under section 514 or 515, the Secretary may renew the
rental assistance contract, notwithstanding any requirement
under section 521 that the recipient be a current borrower
under section 514 or 515, for a term of 20 years, subject to
annual appropriations.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is not
available for all households in the project for which the loan
is being restructured pursuant to subsection (c), the Secretary
may extend such additional rental assistance to unassisted
households at that project as is necessary to make the project
safe and affordable to low-income households.
``(3) Rents.--
``(A) In general.--Any agreement to extend the term
of the rental assistance contract under section 521 for
a project shall obligate the owner to continue to
maintain the project as decent, safe, and sanitary
housing and to operate the development as affordable
housing in a manner that meets the goals of this title.
``(B) Rent amounts.--Subject to subparagraph (C),
in setting rents, the Secretary--
``(i) shall determine the maximum initial
rent based on current fair market rents
established under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f);
and
``(ii) may annually adjust the rent
determined under clause (i) by the operating
cost adjustment factor as provided under
section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C.
1437f note).
``(C) Higher rent.--
``(i) In general.--Subparagraph (B) shall
not apply if the Secretary determines that the
budget-based needs of a project require a
higher rent than the rent described in
subparagraph (B).
``(ii) Rent.--If the Secretary makes a
positive determination under clause (i), the
Secretary may approve a budget-based rent level
for the project.
``(4) Conditions for approval.--Before the approval of a
rental assistance contract authorized under this section, the
Secretary shall require, through an annual notice in the
Federal Register, the owner to submit to the Secretary a plan
that identifies financing sources and a timetable for
renovations and improvements determined to be necessary by the
Secretary to maintain and preserve the project.
``(g) Multifamily Housing Transfer Technical Assistance.--Under the
program under this section, the Secretary may provide grants to
qualified nonprofit organizations and public housing agencies to
provide technical assistance, including financial and legal services,
to borrowers under loans under this title for multifamily housing to
facilitate the acquisition or preservation of such multifamily housing
properties in areas where the Secretary determines there is a risk of
loss of affordable housing.
``(h) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
``(i) Authorization of Appropriations.--There is authorized to be
appropriated for the program under this section such sums as may be
necessary for each of fiscal years 2026 through 2030.
``(j) Rulemaking.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Renewing Opportunity in the American Dream
to Housing Act of 2025, the Secretary shall--
``(A) publish an advance notice of proposed
rulemaking; and
``(B) consult with appropriate stakeholders.
``(2) Interim final rule.--Not later than 1 year after the
date of enactment of the Renewing Opportunity in the American
Dream to Housing Act of 2025, the Secretary shall publish an
interim final rule to carry out this section.''.
(f) Rental Assistance Contract Authority.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)), as amended by this section,
is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the
following:
``(B) upon request of an owner of a project financed under
section 514 or 515, the Secretary is authorized to enter into
renewal of such agreements for a period of 20 years or the term
of the loan, whichever is shorter, subject to amounts made
available in appropriations Acts;'';
(C) in subparagraph (C), as so redesignated, by
striking ``subparagraph (A)'' and inserting
``subparagraphs (A) and (B)''; and
(D) in subparagraph (D), as so redesignated, by
striking ``subparagraphs (A) and (B)'' and inserting
``subparagraphs (A), (B), and (C)'';
(2) in paragraph (2), by striking ``shall'' and inserting
``may''; and
(3) by adding at the end the following:
``(4) In the case of any rental assistance contract authority that
becomes available because of the termination of assistance on behalf of
an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of not more than 6
months before unused assistance is made available pursuant to
subparagraph (B) during which the owner may use such assistance
authority to provide assistance on behalf of an eligible
unassisted family that--
``(i) is residing in the same rental project in
which the assisted family resided before the
termination; or
``(ii) newly occupies a dwelling unit in the rental
project during that 6-month period; and
``(B) except for assistance used as provided in
subparagraph (A), the Secretary shall use such remaining
authority to provide assistance on behalf of eligible families
residing in other rental projects originally financed under
section 514, 515, or 516.''.
(g) Modifications to Loans and Grants for Minor Improvements to
Farm Housing and Buildings; Income Eligibility.--Section 504(a) of the
Housing Act of 1949 (42 U.S.C. 1474(a)) is amended--
(1) in the first sentence, by inserting ``and may make a
loan to an eligible low-income applicant'' after ``applicant'';
(2) by inserting ``Not less than 60 percent of loan funds
made available under this section shall be reserved and made
available for very low-income applicants.'' after the first
sentence; and
(3) by striking ``$7,500'' and inserting ``$15,000''.
(h) Rural Community Development Initiative.--Subtitle E of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009 et seq.) is
amended by adding at the end the following:
``SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a private, nonprofit community-based housing
or community development organization;
``(B) a rural community; or
``(C) a federally recognized Indian tribe.
``(2) Eligible intermediary.--The term `eligible
intermediary' means a qualified--
``(A) private, nonprofit organization; or
``(B) public organization.
``(b) Establishment.--The Secretary shall establish a Rural
Community Development Initiative, under which the Secretary shall
provide grants to eligible intermediaries to carry out programs to
provide financial and technical assistance to eligible entities to
develop the capacity and ability of eligible entities to carry out
projects to improve housing, community facilities, and community and
economic development projects in rural areas.
``(c) Amount of Grants.--The amount of a grant provided to an
eligible intermediary under this section shall be not more than
$250,000.
``(d) Matching Funds.--
``(1) In general.--An eligible intermediary receiving a
grant under this section shall provide matching funds from
other sources, including Federal funds for related activities,
in an amount not less than the amount of the grant.
``(2) Waiver.--The Secretary may waive paragraph (1) with
respect to a project that would be carried out in a
persistently poor rural region, as determined by the
Secretary.''.
(i) Annual Report on Rural Housing Programs.--Title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.), as amended by this
section, is amended by adding at the end the following:
``SEC. 546. ANNUAL REPORT.
``(a) In General.--The Secretary shall submit to the appropriate
committees of Congress and publish on the website of the Department of
Agriculture an annual report on rural housing programs carried out
under this title, which shall include significant details on the health
of Rural Housing Service programs, including--
``(1) raw data sortable by programs and by region regarding
loan performance;
``(2) the housing stock of those programs, including
information on why properties end participation in those
programs, such as for maturation, prepayment, foreclosure, or
other servicing issues; and
``(3) risk ratings for properties assisted under those
programs.
``(b) Protection of Information.--The data included in each report
required under subsection (a) may be aggregated or anonymized to
protect participant financial or personal information.''.
(j) GAO Report on Rural Housing Service Technology.--Not later than
1 year after the date of enactment of this Act, the Comptroller General
of the United States shall submit to Congress a report that includes--
(1) an analysis of how the outdated technology used by the
Rural Housing Service impacts participants in the programs of
the Rural Housing Service;
(2) an estimate of the amount of funding that is needed to
modernize the technology used by the Rural Housing Service; and
(3) an estimate of the number and type of new employees the
Rural Housing Service needs to modernize the technology used by
the Rural Housing Service.
(k) Adjustment to Rural Development Voucher Amount.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Agriculture shall issue
regulations to establish a process for adjusting the voucher
amount provided under section 542 of the Housing Act of 1949
(42 U.S.C. 1490r) after the issuance of the voucher following
an interim or annual review of the amount of the voucher.
(2) Interim review.--The interim review described in
paragraph (1) shall, at the request of a tenant, allow for a
recalculation of the voucher amount when the tenant experiences
a reduction in income, change in family composition, or change
in rental rate.
(3) Annual review.--
(A) In general.--The annual review described in
paragraph (1) shall require tenants to annually
recertify the family composition of the household and
that the family income of the household does not exceed
80 percent of the area median income at a time
determined by the Secretary of Agriculture.
(B) Considerations.--If a tenant does not recertify
the family composition and family income of the
household within the time frame required under
subparagraph (A), the Secretary of Agriculture--
(i) shall consider whether extenuating
circumstances caused the delay in
recertification; and
(ii) may alter associated consequences for
the failure to recertify based on those
circumstances.
(C) Effective date.--Following the annual review of
a voucher under paragraph (1), the updated voucher
amount shall be effective on the 1st day of the month
following the expiration of the voucher.
(4) Deadline.--The process established under paragraph (1)
shall require the Secretary of Agriculture to review and update
the voucher amount described in paragraph (1) for a tenant not
later than 60 days before the end of the voucher term.
(l) Eligibility for Rural Housing Vouchers.--Section 542 of the
Housing Act of 1949 (42 U.S.C. 1490r) is amended by adding at the end
the following:
``(c) Eligibility of Households in Sections 514, 515, and 516
Projects.--The Secretary may provide rural housing vouchers under this
section for any low-income household (including those not receiving
rental assistance) residing for a term longer than the remaining term
of their lease that is in effect on the date of prepayment,
foreclosure, or mortgage maturity, in a property financed with a loan
under section 514 or 515 or a grant under section 516 that has--
``(1) been prepaid with or without restrictions imposed by
the Secretary pursuant to section 502(c)(5)(G)(ii)(I);
``(2) been foreclosed; or
``(3) matured after September 30, 2005.''.
(m) Amount of Voucher Assistance.--Notwithstanding any other
provision of law, in the case of any rural housing voucher provided
pursuant to section 542 of the Housing Act of 1949 (42 U.S.C. 1490r),
the amount of the monthly assistance payment for the household on whose
behalf the assistance is provided shall be determined as provided in
subsection (a) of such section 542, including providing for interim and
annual review of the voucher amount in the event of a change in
household composition or income or rental rate.
(n) Transfer of Multifamily Rural Housing Projects.--Section 515 of
the Housing Act of 1949 (42 U.S.C. 1485) is amended--
(1) in subsection (h), by adding at the end the following:
``(3) Transfer to nonprofit organizations.--A nonprofit or
public body purchaser, including a limited partnership with a
general partner with the principal purpose of providing
affordable housing, may purchase a property for which a loan is
made or insured under this section that has received a market
value appraisal, without addressing rehabilitation needs at the
time of purchase, if the purchaser--
``(A) makes a commitment to address rehabilitation
needs during ownership and long-term use restrictions
on the property; and
``(B) at the time of purchase, accepts long-term
use restrictions on the property.''; and
(2) in subsection (w)(1), in the first sentence in the
matter preceding subparagraph (A), by striking ``9 percent''
and inserting ``25 percent''.
(o) Extension of Loan Term.--
(1) In general.--Section 502(a)(2) of the Housing Act of
1949 (42 U.S.C. 1472(a)(2)) is amended--
(A) by inserting ``(A)'' before ``The Secretary'';
(B) in subparagraph (A), as so designated, by
striking ``paragraph'' and inserting ``subparagraph'';
and
(C) by adding at the end the following:
``(B) The Secretary may refinance or modify the period of
any loan, including any refinanced loan, made under this
section in accordance with terms and conditions as the
Secretary shall prescribe, but in no event shall the total term
of the loan from the date of the refinance or modification
exceed 40 years.''.
(2) Application.--The amendment made under paragraph (1)
shall apply with respect to loans made under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472) before, on, or after the
date of enactment of this Act.
(p) Release of Liability for Section 502 Guaranteed Borrower Upon
Assumption of Original Loan by New Borrower.--Section 502(h)(10) of the
Housing Act of 1949 (42 U.S.C. 1472(h)(10)) is amended to read as
follows:
``(10) Transfer and assumption.--Upon the transfer of
property for which a guaranteed loan under this subsection was
made and the assumption of the guaranteed loan by an approved
eligible borrower, the original borrower of a guaranteed loan
under this subsection shall be relieved of liability with
respect to the loan.''.
(q) Department of Agriculture Loan Restrictions.--
(1) Definitions.--In this subsection, the terms ``State''
and ``Tribal organization'' have the meanings given those terms
in section 658P of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n).
(2) Revision.--The Secretary of Agriculture shall revise
section 3555.102(c) of title 7, Code of Federal Regulations, to
exclude from the restriction under that section--
(A) a home-based business that is a licensed,
registered, or regulated child care provider under
State law or by a Tribal organization; and
(B) an applicant that has applied to become a
licensed, registered or regulated child care provider
under State law or by a Tribal organization.
(r) Loan Guarantees.--Section 502(h)(4) of the Housing Act of 1949
(42 U.S.C. 1472(h)(4)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(2) by striking ``Loans may be guaranteed'' and inserting
the following:
``(A) Definition.--In this paragraph, the term
`accessory dwelling unit' means a single, habitable
living unit--
``(i) with means of separate ingress and
egress;
``(ii) that is usually subordinate in size;
``(iii) that can be added to, created
within, or detached from a primary 1-unit,
single-family dwelling; and
``(iv) in combination with a primary 1-
unit, single family dwelling, constitutes a
single interest in real estate.
``(B) Single family requirement.--Loans may be
guaranteed''; and
(3) by adding at the end the following:
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to prohibit the leasing of
an accessory dwelling unit or the use of rental income
derived from such a lease to qualify for a loan
guaranteed under this subsection--
``(i) after the date of enactment of the
Renewing Opportunity in the American Dream to
Housing Act of 2025; and
``(ii) if the property that is the subject
of the loan was constructed before the date of
enactment of the Renewing Opportunity in the
American Dream to Housing Act of 2025.''.
(s) Application Review.--
(1) Sense of congress.--It is the sense of Congress, not
later than 90 days after the date on which the Secretary of
Agriculture receives an application for a loan, grant, or
combined loan and grant under section 502 or 504 of the Housing
Act of 1949 (42 U.S.C. 1472, 1474), the Secretary of
Agriculture should--
(A) review the application;
(B) complete the underwriting;
(C) make a determination of eligibility with
respect to the application; and
(D) notify the applicant of determination.
(2) Report.--
(A) In general.--Not later than 90 days after the
date of enactment of this Act, and annually thereafter
until the date described in subparagraph (B), the
Secretary of Agriculture shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report--
(i) detailing the timeliness of eligibility
determinations and final determinations with
respect to applications under sections 502 and
504 of the Housing Act of 1949 (42 U.S.C. 1472,
1474), including justifications for any
eligibility determinations taking longer than
90 days; and
(ii) that includes recommendations to
shorten the timeline for notifications of
eligibility determinations described in clause
(i) to not more than 90 days.
(B) Date described.--The date described in this
subparagraph is the date on which, during the preceding
5-year period, the Secretary of Agriculture provides
each eligibility determination described in
subparagraph (A) during the 90-day period beginning on
the date on which each application is received.
SEC. 504. NEW MOVING TO WORK COHORT.
(a) Definitions.--In this section:
(1) Moving to work demonstration.--The term ``Moving to
Work demonstration'' means the Moving to Work demonstration
authorized under section 204 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Authorization of Additional Public Housing Agencies.--
(1) In general.--After the completion of the initial report
required under subsection (h)(2), the Secretary may add up to
an additional 25 public housing agencies that are designated as
high performing agencies under the Public Housing Assessment
System or the Section 8 Management Assessment Program to
participate in a new cohort as part of the Moving to Work
demonstration.
(2) Name.--The new cohort authorized under paragraph (1)
shall be entitled the ``Economic Opportunity and Pathways to
Independence Cohort''.
(c) Waiver Authority.--
(1) In general.--Subject to paragraph (2), the authority of
the Secretary to grant waivers to agencies admitted to the
Moving to Work demonstration under this section or to designate
policy changes as part of a cohort design under this section
shall be limited to the waivers codified as of January 2025 in
Appendix I of the document of the Department of Housing and
Urban Development entitled ``Operations Notice for the
Expansion of the Moving to Work Demonstration Program'' (FR-
5994-N-05) published in the Federal Register on August 28,
2020, as amended by the notice entitled ``Operations Notice for
Expansion of the Moving to Work Demonstration Program Technical
Revisions'' (FR-5994-N-06) published in the Federal Register on
March 20, 2025.
(2) Exceptions.--Under paragraph (1), the Secretary may not
grant waivers 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q, 6, 7, 9a, 9h,
or 12 in the document described in paragraph (1), including
modifications of or safe harbor requirement waivers for such
waivers.
(3) Policy options.--In carrying out the Moving to Work
demonstration cohort established under this section, the
Secretary may consider policy options to provide opt-out
savings or escrow accounts and report positive rental payments
to consumer reporting agencies (as defined in section 603 of
the Fair Credit Reporting Act (15 U.S.C. 1681a)) with resident
consent.
(d) Funding and Use of Funds.--
(1) In general.--Public housing agencies in the cohort
authorized under this section may expend not more than 5
percent of the amounts those public housing agencies receive in
any fiscal year for housing assistance payments under section
8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) for purposes other than such housing assistance
payments.
(2) Other uses.--Such other uses of amounts described in
paragraph (1) shall comply with all other applicable
requirements.
(3) Formula.--
(A) Renewal.--The amount of funding public housing
agencies receive for renewal of housing assistance
payments under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) shall be
determined according to the same funding formula
applicable to public housing agencies that do not
participate in the Moving to Work demonstration, except
that the Secretary shall provide public housing
agencies funding to renew any funds expended under this
subsection, with an adjustment for inflation.
(B) Administrative fees.--The amount of funding
public housing agencies receive for administrative fees
under section 8(q) of the United States Housing Act of
1937 (42 U.S.C. 1437f(q)), public housing operating
subsidies under section 9(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437g(e)), and public
housing capital funding under section 9(d) of the
United States Housing Act of 1937 (42 U.S.C. 1437g(d))
shall be determined according to the same funding
formula applicable to public housing agencies that do
not participate in the Moving to Work demonstration.
(e) Selection Requirements.--The Secretary shall select public
housing agencies designated under this section through a competitive
process, as determined by the Secretary, with the following parameters:
(1) No public housing agency shall be granted this
designation under this section that administers more than
27,000 aggregate housing vouchers and public housing units.
(2) Of the public housing agencies selected under this
section, not more than 10 shall administer 1,000 or fewer
aggregate housing vouchers and public housing units, not more
than 6 shall administer between 1,001 and 6,000 aggregate
housing vouchers and public housing units, and not more than 4
shall administer between 6,001 and 27,000 aggregate housing
vouchers and public housing units.
(3) Selection of public housing agencies under this section
shall be based on ensuring the geographic diversity of Moving
to Work demonstration public housing agencies.
(4) Within the requirements under paragraphs (1) through
(3), the Secretary shall prioritize selecting public housing
agencies that serve families with children and youth aging out
of foster care at a rate above the national average.
(f) Requirements for Selected Public Housing Agencies.--Consistent
with section 204(c)(3) of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1996 (42 U.S.C. 1437f note), public housing agencies selected for
the Moving to Work demonstration under this section shall--
(1) ensure that not less than 75 percent of the families
assisted are very low-income families, as defined in section
3(b)(2)(B) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(2)(B));
(2) establish a reasonable rent policy, which shall be
designed to encourage employment and self-sufficiency by
participating families, consistent with the purpose of the
Moving to Work demonstration, such as by excluding some or all
of a family's earned income for purposes of determining rent;
(3) continue to assist substantially the same total number
of eligible low-income families as would have been served had
the amounts not been combined;
(4) maintain a comparable mix of families (by family size)
as would have been provided had the amounts not been used under
the Moving to Work demonstration; and
(5) assure that housing assisted under the Moving to Work
demonstration meets housing quality standards established or
approved by the Secretary.
(g) Noncompliance.--
(1) In general.--If the Secretary finds that a public
housing agency participating in the cohort authorized under
this section is not in compliance with the requirements under
this section, the Secretary shall make a determination of
noncompliance.
(2) Compliance.--Upon making a determination under
paragraph (1), the Secretary shall develop a process to bring
the public housing agency into compliance.
(3) Removal.--If a public housing agency cannot be brought
into compliance under the process developed under paragraph
(2), the Secretary shall remove the participating public
housing agency from the cohort and replace it with a similarly
qualified public housing agency currently not in the cohort
chosen in the manner described in subsection (e).
(4) Notification.--Upon removing a public housing agency
under paragraph (3), the Secretary shall immediately submit to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives--
(A) a notification of the removal; and
(B) a report on the active steps the Secretary is
taking to replace the public housing agency with a new
public housing agency.
(h) Comprehensive Moving to Work Reporting and Oversight
Requirements.--
(1) Cohort research.--
(A) In general.--The Secretary shall continue
ongoing research investigations commenced as part of
the assessment of the cohorts established under section
239 of the Department of Housing and Urban Development
Appropriations Act, 2016 (42 U.S.C. 1437f note; Public
Law 114-113), make public all products completed as
part of those investigations, and keep such products
online for at least 5 years.
(B) Coordination.--The Secretary shall coordinate
with the advisory committee established under section
239 of the Department of Housing and Urban Development
Appropriations Act, 2016 (42 U.S.C. 1437f note; Public
Law 114-113) to establish a research program to
evaluate the outcomes and efficacy of the following for
all Moving to Work demonstration agencies designated
under the authority under such section and this
section:
(i) The waivers granted to each cohort and
whether those waivers accomplish the goals of
achieving greater cost effectiveness and
administrative capacity, incentivizing families
to become economically self-sufficient, and
increasing housing choice.
(ii) The additional flexibilities granted
to individual public housing agencies under
each cohort.
(iii) How the flexibilities described in
clause (ii) were used for local, non-
traditional activities.
(2) Comprehensive reporting requirement.--Not later than
180 days after the date of enactment of this Act, and annually
thereafter, the Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report that contains the following for each Moving to Work
demonstration cohort under section 204 of the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f
note), section 239 of the Department of Housing and Urban
Development Appropriations Act, 2016 (42 U.S.C. 1437f note;
Public Law 114-113), and this section:
(A) The annual administrative plans of each Moving
to Work demonstration public housing agency.
(B) Assessments of longitudinal data, including
data on units, households, and outcomes, which shall be
evaluated to compare changes in the following trends
before and after Moving to Work demonstration
designation:
(i) Impacts on tenants based on the
following, disaggregated by the public housing
program and the housing choice voucher program:
(I) Eviction rates.
(II) Hardship policy usage.
(III) Share of rent covered by a
household.
(IV) Turnover, including the number
of household moves with or without
continued assistance.
(V) Reasons for exit from the
program.
(VI) The number and characteristics
of households served, including
households with a non-elderly family
member with a disability, 3 or more
minors, homelessness status at the time
of admission, and average and median
income as a percent of area median
income.
(ii) Impacts on public housing agency
operations based on the following:
(I) The number of units, broken
down by type.
(II) The size, including the number
of bedrooms per unit, accessibility,
affordability, and quality of units.
(III) The length of each waitlist
maintained and average wait times.
(IV) Changes in capital backlog
needs and surplus fund and reserve
levels.
(V) The number of public housing
units undergoing a conversion under the
rental assistance demonstration program
authorized under the Department of
Housing and Urban Development
Appropriations Act, 2012 (Public Law
112-55; 125 Stat. 673) or demolition or
disposition projects under section 18
of the United States Housing Act of
1937 (42 U.S.C. 1437p), including the
number of units lost and the location
of any replacement housing resulting
from demolition or disposition.
(VI) The share of project-based
vouchers compared to tenant-based
vouchers.
(VII) The following annual housing
choice voucher data:
(aa) Voucher unit
utilization rates.
(bb) Voucher budget
utilization rates.
(cc) Annualized voucher
success rate.
(dd) Demographic
composition of households
issued vouchers compared to
utilized vouchers.
(ee) Average time to lease-
up.
(ff) Average cost per
voucher.
(gg) Average cost per
landlord incentive.
(hh) Ratio of the
proportion of voucher
households living in
concentrated low-income areas
to the proportion of renter-
occupied units in concentrated
low-income areas.
(ii) Characteristics of
census tracts where voucher
recipients reside.
(VIII) How the public housing
agency met each of the statutory
requirements in section 204(c)(3) of
the Departments of Veterans Affairs and
Housing and Urban Development, and
Independent Agencies Appropriations
Act, 1996 (42 U.S.C. 1437f note).
(iii) Impacts on public housing staffing
and capacity, including the average public
housing agency operating, administrative, and
housing assistance payment expenditures per
household per month.
(C) Legislative recommendations for flexibilities
that could be expanded to all public housing agencies
and how each flexibility enhances housing choice,
affordability, and administrative capacity and
efficiency for public housing agencies.
(3) Public availability.--
(A) In general.--The Secretary shall maintain all
reports submitted pursuant to this section in a manner
that is publicly available, accessible, and searchable
on the website of the Department of Housing and Urban
Development for not less than 5 years.
(B) Other information.--
(i) In general.--Annually, the Secretary
shall make the annual plan of the Moving to
Work demonstration, the Section 8
administrative plan, and the admission and
continued occupancy policy publicly available
in 1 location on the website of the Department
of Housing and Urban Development for not less
than 5 years.
(ii) Database.--The Secretary may establish
a searchable database on the website of the
Department of Housing and Urban Development to
track the types of flexibilities into which
Moving to Work demonstration public housing
agencies have opted or for which a waiver was
approved by the Secretary, disaggregated by
year such flexibilities were adopted or
approved.
SEC. 505. REDUCING HOMELESSNESS THROUGH PROGRAM REFORM ACT.
(a) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(B) the Committee on Financial Services of the
House of Representatives.
(2) At risk of homelessness.--The term ``at risk of
homelessness'' has the meaning given the term in section 401 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).
(3) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(4) Homeless.--The term ``homeless'' has the meaning given
the term in section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302).
(5) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(6) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of Housing and Urban Development.
(b) Administrative Costs for the Emergency Solutions Grants
Program.--Section 418 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11378) is amended by striking ``7.5 percent'' and inserting ``10
percent''.
(c) Amendments to the Continuum of Care Program.--
(1) In general.--Subtitle C of title IV of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) is
amended--
(A) in section 402(g) (42 U.S.C. 11360a(g))--
(i) by redesignating paragraph (2) as
paragraph (3); and
(ii) by inserting after paragraph (1) the
following:
``(2) Time limit on designation.--The Secretary--
``(A) shall accept applications for designation as
a unified funding agency annually or biennially, which
designation shall be effective for not more than 2
years; and
``(B) may, on an annual or biennial basis, renew
any designation under subparagraph (A).'';
(B) in section 422 (42 U.S.C. 11382)--
(i) in subsection (b)--
(I) by striking ``The Secretary''
and inserting the following:
``(1) In general.--Except as provided in paragraph (2), the
Secretary''; and
(II) by adding at the end the
following:
``(2) 2-year notification.--Subject to the availability of
appropriations, the Secretary may issue a notification of
funding availability for grants awarded under this subtitle
that provides funding for 2 successive fiscal years, which
shall--
``(A) award funds for the second year of projects,
including adjustments under subsection (f), unless the
project is underperforming, as determined by the
collaborative applicant, and the collaborative
applicant applies to replace the project with a new
project; and
``(B) include--
``(i) the method for applying for and
awarding projects to replace underperforming
projects in year 2;
``(ii) the method for applying for and
awarding renewals of expiring grants for
projects that were not eligible for renewal in
the first fiscal year;
``(iii) the method for allocating any
amounts in the second fiscal year that are in
excess of the amount needed to fund the second
fiscal year of all grants awarded in the first
fiscal year;
``(iv) the method of applying for and
awarding grants, which are 1-year transition
grants awarded by the Secretary to project
sponsors for activities under this subtitle to
transition from 1 eligible activity to another
eligible activity if the recipient--
``(I) has the consent of the
continuum of care; and
``(II) meets standards determined
by the Secretary;
``(C) announce by notice the award of second fiscal
year funding and awards for new and renewal projects;
and
``(D) identify the process by which the Secretary
may approve replacement of a collaborative applicant
that is not a unified funding agency to receive the
award in the second fiscal year.'';
(ii) in subsection (c)(2)--
(I) by striking ``(A) In general.--
Except as provided in subparagraph (B),
the Secretary'' and inserting ``The
Secretary''; and
(II) by striking subparagraph (B);
and
(iii) in subsection (e), by striking ``1
year'' and inserting ``2 years'';
(C) in section 423(a) (42 U.S.C. 11383)--
(i) in paragraph (4), in the third
sentence--
(I) by striking ``, at the
discretion of the applicant and the
project sponsor,''; and
(II) by inserting ``not more than''
before ``15 years'';
(ii) in paragraph (7), in the matter
preceding subparagraph (A), by inserting
``payment of not more than 6 months of arrears
for rent and utility expenses,'' after ``moving
costs,''; and
(iii) in paragraph (10), by striking ``3
percent'' and inserting ``the greater of either
$70,000 or 5 percent'';
(D) in section 425 (42 U.S.C. 11385), by adding at
the end the following:
``(f) Adjustment of Costs.--Not later than 1 year after the date of
enactment of this subsection, and on a biennial basis thereafter, the
Comptroller General of the United States--
``(1) shall study the hiring, retention, and compensation
levels of the workforce providing the services described in
subsection (c), including executive directors, case managers,
and frontline staff, and examine whether low compensation is
undermining program effectiveness;
``(2) shall submit to the appropriate congressional
committees a report on any findings, and to the Secretary any
recommendations, as the Comptroller General considers
appropriate regarding funding levels for the cost of the
supportive services and the staffing to provide the services
described in subsection (c); and
``(3) in carrying out the study under paragraph (1), may
reference the Consumer Price Index or other similar surveys.'';
(E) in section 426 (42 U.S.C. 11386), by adding at
the end the following:
``(h) Inspections.--When complying with inspection requirements for
a housing unit provided to a homeless individual or family using
assistance under this subtitle, the Secretary may allow a grantee to--
``(1) conduct a pre-inspection not more than 60 days before
leasing the unit;
``(2) if the unit is located in a rural or small area,
conduct a remote or video inspection of a unit; and
``(3) allow the unit to be leased prior to completion of an
inspection if the unit passed an alternative Federal inspection
within the preceding 12-month period, so long as the unit is
inspected not later than 15 days after the start of the
lease.''; and
(F) in section 430 (42 U.S.C. 11386d), by adding at
the end the following:
``(d) Costs Paid by Program Income.--With respect to grant amounts
awarded under this subtitle, costs paid by the program income of a
grant recipient may count toward the contributions required under
subsection (a) if the costs--
``(1) are eligible expenses under this subtitle;
``(2) meet standards determined by the Secretary; and
``(3) supplement activities carried out by the recipient
under this subtitle.''.
(2) Other modifications.--
(A) Definitions.--In this paragraph--
(i) the terms ``collaborative applicant''
and ``eligible entity'' have the meanings given
those terms in section 401 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C.
11360); and
(ii) the terms ``Indian tribe'' and
``tribally designated housing entity'' have the
meanings given those terms in section 4 of the
Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103).
(B) Nonapplication of civil rights laws.--With
respect to the funds made available for the Continuum
of Care program authorized under subtitle C of title IV
of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11381 et seq.) under the heading ``Homeless
Assistance Grants'' in the Department of Housing and
Urban Development Appropriations Act, 2021 (Public Law
116-260) and under section 231 of the Department of
Housing and Urban Development Appropriations Act, 2020
(42 U.S.C. 11364a), title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.) and title VIII of the
Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.) shall
not apply to applications by or awards for projects to
be carried out--
(i) on or off reservation or trust lands
for awards made to Indian tribes or tribally
designated housing entities; or
(ii) on reservation or trust lands for
awards made to eligible entities.
(C) Certification.--With respect to funds made
available for the Continuum of Care program authorized
under subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11381 et seq.) under
the heading ``Homeless Assistance Grants'' under
section 231 of the Department of Housing and Urban
Development Appropriations Act, 2020 (42 U.S.C.
11364a)--
(i) applications for projects to be carried
out on reservations or trust land shall contain
a certification of consistency with an approved
Indian housing plan developed under section 102
of the Native American Housing Assistance and
Self-Determination Act (25 U.S.C. 4112),
notwithstanding section 106 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12706) and section 403 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C.
11361);
(ii) Indian tribes and tribally designated
housing entities that are recipients of awards
for projects on reservations or trust land
shall certify that they are following an
approved housing plan developed under section
102 of the Native American Housing Assistance
and Self-Determination Act (25 U.S.C. 4112);
and
(iii) a collaborative applicant for a
Continuum of Care whose geographic area
includes only reservation and trust land is not
required to meet the requirement in section
402(f)(2) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360a(f)(2)).
(d) Amendments to the Housing Choice Voucher Program.--Section
8(o)(5) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(5)) is amended by adding at the end the following:
``(C) Exceptions.--Notwithstanding subparagraph
(A)--
``(i) a public housing agency may accept a
third party income calculation and verification
of family income for purposes of this
subsection if--
``(I) the calculation and
verification was completed for
determination of income eligibility for
a Federal program or service during the
preceding 12-month period; and
``(II) there has been no change in
income or family composition since the
calculation and verification under
clause (i); and
``(ii) when using prior year income under
section 3(a)(7)(B), a public housing agency
shall use the income of the family as
determined by the agency or owner for the prior
calendar year or another 12-month period ending
during the preceding 12 months, taking into
consideration any redetermination of income
between the start of such prior calendar year
or other 12-month period and the date of the
annual review.'';
(e) Improving Coordination Between Health Care Systems and
Supportive Services.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Health and Human Services and
the Secretary shall seek to enter into an agreement with the National
Academies of Sciences, Engineering, and Medicine to conduct and submit
to the appropriate congressional committees an evidence-based,
nonpartisan analysis that--
(1) reviews the research on linkages between access to
affordable health care and homelessness and analyzes the effect
of greater coordination and partnerships between health care
organizations, mental health and substance use disorder and
substance use disorder service providers, and housing service
providers, including possible cost-savings from providing
greater access to health services, recovery housing, or
housing-related supportive services for individuals
experiencing chronic homelessness and other types of
homelessness; and
(2) includes policy and program recommendations for
improving access to health care and housing, health care and
housing outcomes, possible cost-savings and efficiencies, and
best practices.
(f) Demonstration Authority.--
(1) In general.--Subtitle A of title IV of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11360 et seq.) is
amended by adding at the end the following:
``SEC. 409. DEMONSTRATION AUTHORITY.
``(a) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
``(B) the Committee on Financial Services of the
House of Representatives.
``(2) Health care organization.--The term `health care
organization' means an entity providing medical or mental and
behavioral health care, including--
``(A) a hospital (as defined in section 1861(e) of
the Social Security Act (42 U.S.C. 1395x(e)));
``(B) a Federally-qualified health center (as
defined in section 1905(l)(2) of the Social Security
Act (42 U.S.C. 1396d(l)(2))) or another community
health center eligible to receive a grant under section
330 of the Public Health Service Act (42 U.S.C. 254b);
and
``(C) a licensed or certified provider of evidence-
based substance use disorder services or mental health
services providing such services pursuant to funding
under a block grant for substance use prevention,
treatment, and recovery services or a block grant for
community mental health services under subpart II or
subpart I, respectively, of part B of title XIX of the
Public Health Service Act (42 U.S.C. 300x et seq.).
``(3) Housing provider.--The term `housing provider' means
an entity, including a grant recipient under subtitle B or C of
this title, a public housing agency (as defined in section 3 of
the United States Housing Act of 1937 (42 U.S.C. 1437a)), or a
federally funded organization or a nonprofit organization, that
administers a program to provide housing services to
individuals experiencing or at risk of homelessness, including
rapid re-housing, transitional housing, housing choice
vouchers, and housing-related supportive services.
``(b) Authority.--The Secretary may establish demonstration
projects or partnerships that involve collaboration between housing
providers and healthcare organizations to provide housing-related
supportive services, including--
``(1) assistance in coordinating data systems in a manner
that is compliant with the Health Insurance Portability and
Accountability Act (Public Law 104-191); and
``(2) projects or partnerships that are aimed at serving
individuals--
``(A) who are homeless, chronically homeless, or at
risk of homelessness; and
``(B) with--
``(i) a high-use of emergency services or
emergency departments;
``(ii) chronic disabilities, including
physical health or mental health conditions;
``(iii) substance use disorders;
``(iv) serious mental illness; or
``(v) other severe service needs.
``(c) Report.--Not later than 2 years after the date of enactment
of this Act, and every 4 years thereafter, the Secretary shall submit
to the appropriate congressional committees a report on each
demonstration project or partnership established under this section.''.
(2) Technical and conforming amendment.--The table of
contents in section 101(b) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11301 note) is amended by inserting
after the item relating to section 408 the following:
``Sec. 409. Demonstration authority.''.
(g) Streamlining Coordinated Entry.--
(1) Audit by the comptroller general.--Not later than 1
year after the date of enactment of this Act, the Comptroller
General of the United States shall--
(A) conduct a multi-community evaluation of the
operations of coordinated assessment systems by the
Continuum of Care Program under subtitle C of title IV
of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11381 et seq.) program to examine the
efficiency, accuracy, and outcomes of those operations;
and
(B) submit to the appropriate congressional
committees on any findings and to the Secretary on any
recommendations, as the Comptroller General considers
appropriate, for a more effective and efficient
coordinated entry process.
(2) Assessments.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall--
(A) evaluate the coordinated assessment processes
under the Continuum of Care Program under subtitle C of
title IV of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11381 et seq.), which shall include--
(i) a request for information from
continuums of care about coordinated entry
tools, processes, barriers, documentation
barriers, and necessary guidance;
(ii) incorporation of findings from
relevant reports and demonstrations of the
Department, including the report described in
paragraph (1); and
(iii) consultation with organizations with
expertise in providing health care to people
experiencing homelessness on best practices in
assessment tools for prioritizing resources and
characterizing chronic homelessness and people
experiencing homelessness with high-service
needs;
(B) issue an updated notice, which shall include
guidance--
(i) on effective assessment processes that
remove barriers, streamline access, allow for
coordination with public housing agencies,
include trauma-informed data collection
practices, improve accuracy, address needs for
underserved groups, and successfully rehouse
homeless individuals;
(ii) that includes all key populations and
subpopulations, including consideration for
age, family status, health status, or other
factors, access points, prioritization, and
programs and systems serving individuals
experiencing homelessness; and
(iii) that allows for local flexibility and
tailoring based on the needs and resources
within the specific community; and
(C) establish a timely, periodic procedure to
request feedback on coordinated assessment and update
the guidance, which may include conducting a request
for information not less frequently than once every 5
years.
(h) Improving Targeted Data Collection, Funding, and
Coordination.--The Secretary shall--
(1) issue not less than 1 request for information on--
(A) improving data collection, including through
the use of the Homeless Management Information System
or other data systems;
(B) coordination and use of data between housing
and homelessness providers and physical, mental, and
behavioral health organizations, substance use
treatment providers, and the Department of Veterans
Affairs for implementation of programs to provide
services for people experiencing or at risk of
homelessness, including the chronically homeless; and
(C) the potential benefits and risks of using
artificial intelligence models for the purpose of
improving program coordination and effectiveness and
assessing the effectiveness of interventions to house
individuals experiencing or at risk of homelessness,
including by sub-populations;
(2) consider providing incentives to improve data
collection, enhance the use of the Homeless Management
Information System, implement community information exchanges,
and strengthen the coordination of data from physical, mental,
and behavioral health organizations with housing and
homelessness providers, in order to target resources for
housing, outreach, homelessness prevention, and housing-related
supportive services for homeless individuals, or chronically
homeless individuals; and
(3) coordinate with the Secretary of the Department of
Veterans Affairs to improve coordination between data systems
for vouchers provided under section 8(o)(19) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), the
Homeless Management Information System, and any other
applicable homeless program supported by the Department of
Veterans Affairs.
(i) Rule of Construction.-- Nothing in this section or the
amendments made by this section shall be construed to limit the
authority of the Secretary to provide flexibility under housing laws in
effect as of the date of enactment of this Act. The flexibilities and
waivers authorized under this section and the amendments made by this
section shall not replace or result in the termination of other
flexibilities and waivers that the Secretary is authorized to exercise.
SEC. 506. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.
Section 414 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11373) is amended by adding at the end the following:
``(f) Funding Cap Waiver Authority.--
``(1) In general.--Notwithstanding any other provision of
law or regulation, a recipient may request a waiver of the
spending cap established pursuant to section 415(b) for amounts
provided between fiscal years 2026 through 2029.
``(2) Waiver request.--
``(A) In general.--A recipient seeking a waiver
described in paragraph (1) shall submit to the
Secretary a waiver request that includes not more than
the following:
``(i) A demonstration of local needs and
circumstances that necessitate a waiver.
``(ii) A detailed plan for how the
recipient intends to use funds.
``(iii) A justification for how the
proposed use of funds supports the most recent
Consolidated Annual Performance and Evaluation
Report of the recipient.
``(iv) Any public input solicited under
subparagraph (B)(ii).
``(B) Notification.--Each recipient shall--
``(i) notify all subrecipients, including
local continuums of care, of the availability
of waivers under this subsection; and
``(ii) prior to the submission of a waiver
request under subparagraph (A)), solicit public
input regarding the potential need for and
proposed uses of such waiver.
``(C) Approval; publication.--The Secretary shall--
``(i) make all waiver requests submitted
under subparagraph (A) publicly available on
the website of the Department of Housing and
Urban Development;
``(ii) not later than 60 days after the
date on which the Secretary receives a waiver
request under subparagraph (A), approve or deny
the request; and
``(iii) deny any waiver submitted under
subparagraph (A) by a recipient that relocates
or threaten to relocates individuals or their
property without providing emergency shelter,
rapid rehousing, transitional housing,
permanent supportive housing, or other
permanent housing options.
``(3) Revocation.--
``(A) In general.--A waiver approved under this
subsection shall remain in effect for each of fiscal
years 2026 through 2029 unless the recipient notifies
the Secretary in writing that the recipient wishes to
revoke the waiver.
``(B) Notification.--If a recipient revokes a
waiver under subparagraph (A), the recipient shall
solicit input from subrecipients regarding the
revocation and provide a justification for the
revocation.
``(C) Publication.--The Secretary shall publish any
revocation of a waiver under subparagraph (A) and the
justification of the recipient for the waiver on the
website of the Department of Housing and Urban
Development.''.
TITLE VI--VETERANS AND HOUSING
SEC. 601. VA HOME LOAN AWARENESS ACT.
(a) In General.--Subpart A of part 2 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541
et seq.) is amended by adding at the end the following:
``SEC. 1329. UNIFORM RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall, by regulation or order, require each
enterprise to include a disclaimer below the military service question
on the form known as the Uniform Residential Loan Application stating,
`If yes, you may qualify for a VA Home Loan. Consult your lender
regarding eligibility.'.''.
(b) GAO Study.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General of the United States
shall conduct a study and submit to Congress a report on whether not
less than 80 percent of lenders using the Uniform Residential Loan
Application have included on that form the disclaimer required under
section 1329 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, as added by subsection (a).
SEC. 602. VETERANS AFFAIRS LOAN INFORMED DISCLOSURE (VALID) ACT.
(a) FHA Informed Consumer Choice Disclosure.--
(1) Inclusion of information relating to va loans.--
Subparagraph (A) of section 203(f)(2) of the National Housing
Act (12 U.S.C. 1709(f)(2)(A)) is amended--
(A) by inserting ``(i)'' after ``loan-to-value
ratio''; and
(B) by inserting before the semicolon the
following: ``, and (ii) in connection with a loan
guaranteed or insured under chapter 37 of title 38,
United States Code, assuming prevailing interest
rates''.
(2) Rule of construction.--Nothing in the amendments made
by paragraph (1) shall be construed to require an original
lender to determine whether a prospective borrower is eligible
for any loan included in the notice required under section
203(f) of the National Housing Act (12 U.S.C. 1709(f)).
(b) Military Service Question.--
(1) In general.--Subpart A of part 2 of subtitle A of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4541 et seq.), as amended by section 601(a)
of this Act, is amended by adding at the end the following:
``SEC. 1330. UNIFORM RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall require each enterprise to--
``(1) include a military service question on the form known
as the Uniform Residential Loan Application; and
``(2) position the question described in paragraph (1)
above the signature line of the Uniform Residential Loan
Application.''.
(2) Rulemaking.--Not later than 6 months after the date of
enactment of this Act, the Director of the Federal Housing
Finance Agency shall issue a rule to carry out the amendment
made by this section.
SEC. 603. HOUSING UNHOUSED DISABLED VETERANS ACT.
(a) Exclusion of Certain Disability Benefits.--Section 3(b)(4)(B)
of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is
amended--
(1) by redesignating clauses (iv) and (v) as clauses (vi)
and (vii), respectively; and
(2) by inserting after clause (iii) the following:
``(iv) for the purpose of determining
income eligibility with respect to the
supported housing program under section
8(o)(19), any disability benefits received
under chapter 11 or chapter 15 of title 38,
United States Code, received by a veteran,
except that this exclusion shall not apply to
the income in the definition of adjusted
income;
``(v) for the purpose of determining income
eligibility with respect to any household
receiving rental assistance under the supported
housing program under section 8(o)(19) as it
relates to eligibility for other types of
housing assistance, any disability benefits
received under chapter 11 or chapter 15 of
title 38, United States Code, received by a
veteran, except that this exclusion shall not
apply to income in the definition of adjusted
income;''.
(b) Treatment of Certain Disability Benefits.--
(1) In general.--When determining the eligibility of a
veteran to rent a residential dwelling unit constructed on
Department property on or after the date of the enactment of
this Act, for which assistance is provided as part of a housing
assistance program administered by the Secretary, the Secretary
shall exclude from income any disability benefits received
under chapter 11 or chapter 15 of title 38, United States Code
by such person.
(2) Definitions.--In this subsection:
(A) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(B) Department property.--The term ``Department
property'' has the meaning given the term in section
901 of title 38, United States Code.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
SEC. 701. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING
REGULATORS.
(a) HUD Programs.--The Department of Housing and Urban Development
Act (42 U.S.C. 3531 et seq.) is amended by adding at the end the
following:
``SEC. 15. ANNUAL TESTIMONY.
``The Secretary shall, on an annual basis, testify before the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the
status of all programs carried out by the Department, at the request of
the relevant committee.''.
(b) Government Guaranteed or Insured Mortgages.--On an annual
basis, the following individuals shall testify before the appropriate
committees of Congress with respect to mortgage loans made, guaranteed,
or insured by the Federal Government:
(1) The President of the Government National Mortgage
Association.
(2) The Federal Housing Commissioner.
(3) The Administrator of the Rural Housing Service.
(4) The Executive Director of the Loan Guaranty Service of
the Department of Veterans Affairs.
(5) The Director of the Federal Housing Finance Agency.
(c) Mortgagee Review Board.--Section 202(c)(8) of the National
Housing Act (12 U.S.C. 1708(c)(8)) is amended--
(1) by striking ``, in consultation with the Federal
Housing Administration Advisory Board,''; and
(2) by inserting ``and to Congress'' after ``the
Secretary''.
SEC. 702. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.
(a) Monthly Reporting on Mutual Mortgage Insurance Fund Capital
Ratio.--Section 202(a) of the National Housing Act (12 U.S.C. 1708(a))
is amended by adding at the end the following:
``(8) Other required reporting.--The Secretary shall--
``(A) submit to Congress monthly reports on the
capital ratio required under section 205(f)(2); and
``(B) notify Congress as soon as practicable after
the Fund falls below the capital ratio required under
section 205(f)(2).''.
(b) Annual Independent Actuarial Study.--Section 202(a)(4) of the
National Housing Act (12 U.S.C. 1708(a)(4)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(A) Definition.--In this paragraph, the term
`first-time homebuyer' means a borrower for whom no
consumer report (as defined in section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a)) indicates that
the borrower has or had a loan with a consumer purpose
that is secured by a 1- to 4-unit residential real
property.
``(B) Study and report.--The Secretary''; and
(2) in subparagraph (B), as so designated, by striking
``also'' and inserting ``detail how many loans were originated
in each census tract to first-time homebuyers, as well as''.
(c) Annual Report.--Section 203(w)(2) of the National Housing Act
(12 U.S.C. 1709(w)(2)) is amended by inserting ``and first-time
homebuyers (as defined in section 202(a)(4)(A))'' after ``minority
borrowers''.
(d) GAO Study on Sustainable Homeownership.--Not later than 180
days after the date of enactment of this Act, the Comptroller General
of the United States shall conduct a study and submit to Congress a
report on--
(1) the value for the Federal Housing Administration of
defining what is sustainable homeownership in a way that
considers borrower default, refinancing of a mortgage that is
not insured by the Federal Housing Administration, the
Department of Veterans Affairs, or Rural Housing Service,
paying off a mortgage loan and transitioning back to renting,
and other factors that demonstrate whether insurance provided
under title II of the National Housing Act (12 U.S.C. 1707 et
seq.) has successfully served a borrower, including for first-
time homebuyers for whom no consumer report (as defined in
section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a))
indicates that the borrower has or had a loan with a consumer
purpose that is secured by a 1- to 4-unit residential real
property; and
(2) the feasibility of the Federal Housing Administration
developing a scorecard using the metrics described in paragraph
(1) to measure borrower performance and reporting the scorecard
data to Congress.
SEC. 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
``Renewing Opportunity in the American Dream to Housing
Act''; and
(B) by striking ``update such plan annually'' and
inserting the following: "submit to the President and
Congress a report every year thereafter that includes--
``
``(A) the status of completion of the plan; and
``(B) any modifications that were made to the plan
and the reasons for those modifications;'';
(2) by redesignating paragraphs (10) through (13) as
paragraphs (11) through (14), respectively;
(3) by redesignating the second paragraph (9) (relating to
collecting and disseminating information) as paragraph (10);
(4) in paragraph (13), as so redesignated, by striking
``and'' at the end;
(5) in paragraph (14), as so redesignated, by striking the
period at the end and inserting ``; and
(6) by adding at the end the following:
``(15) testify annually before Congress.''.
SEC. 704. NEIGHBORWORKS ACCOUNTABILITY ACT.
(a) In General.--Section 415(a)(1)(A) of title 5, United States
Code, is amended by inserting ``the Neighborhood Reinvestment
Corporation,'' after ``the Postal Regulatory Commission,''.
(b) Duties and Audits.--The Neighborhood Reinvestment Corporation
Act (42 U.S.C. 8101 et seq.) is amended--
(1) in section 606 (42 U.S.C. 8105), by adding at the end
the following:
``(e)(1) There is authorized to be appropriated to the Office of
Inspector General of the corporation established under section 415 of
title 5, United States Code, such sums as may be necessary to carry out
this Act.
``(2) There shall not be transferred to the Office of Inspector
General of the corporation any program operating responsibilities of
the corporation, including the organizational assessments work and
grantee oversight function of the corporation.''.
(c) Independent Audit.--Section 607 of the Neighborhood
Reinvestment Corporation Act (42 U.S.C. 8106) is amended by striking
subsection (b) and inserting following:
``(b)(1) The accounts of the corporation shall be audited annually
by an independent external auditor.
``(2) Notwithstanding any other audit work performed by the Office
of Inspector General of the corporation, the audits required under
paragraph (1) shall be conducted in accordance with generally accepted
auditing standards by independent certified public accountants who are
certified by a regulatory authority of the jurisdiction in which the
audit is undertaken.''.
SEC. 705. APPRAISAL MODERNIZATION ACT.
(a) Reconsideration of Value.--
(1) In general.--Section 129E of the Truth In Lending Act
(15 U.S.C. 1639e) is amended--
(A) by redesignating subsections (j) and (k) as
subsections (k) and (l), respectively; and
(B) by inserting after subsection (i) the
following:
``(j) Consumer Right to Reconsideration of Value or Subsequent
Appraisal.--
``(1) Definitions.--In this section:
``(A) Unacceptable appraisal practice.--The term
`unacceptable appraisal practice' means an appraisal
report that--
``(i) uses unsupported or subjective terms
to assess or rate the property without
providing a foundation for analysis and
contextual information;
``(ii) uses inaccurate or incomplete data
about the subject property, the neighborhood,
the market area, or any comparable property;
``(iii) includes references, statements or
comparisons about crime rates or crime
statistics, whether objective or subjective;
``(iv) relies in the appraisal analysis on
comparable properties that were not personally
inspected by the appraiser when required by the
appraisal's scope of work;
``(v) relies in the appraisal analysis on
inappropriate comparable properties;
``(vi) fails to use comparable properties
that are more similar, or nearer, to the
subject property without adequate explanation;
``(vii) uses comparable property data
provided by any interested party to the
transaction without verification by a
disinterested party;
``(viii) uses inappropriate adjustments for
differences between the subject property and
the comparable properties that do not reflect
the market's reaction to such differences; or
``(ix) fails to make proper adjustments,
including time adjustments for differences
between the subject property and the comparable
properties when necessary.
``(B) Unsupported.--The term `unsupported' means,
with respect to an appraisal report or an appraiser's
opinion of value, that the appraisal report or the
opinion of value is not supported by relevant evidence
and logic.
``(2) Review.--In connection with a consumer credit
transaction secured by a consumer's principal dwelling, a
creditor shall have a review and resolution procedure for a
consumer-initiated reconsideration of value or subsequent
appraisal that complies with the following requirements:
``(A) The creditor shall complete its own appraisal
review before delivering the appraisal to the consumer.
``(B) The creditor shall have policies and
procedures that provide the consumer with a process to
submit 1 request for a reconsideration of value and
subsequent appraisal prior to the loan closing or
within 60 calendar days of denial of a credit
application if the consumer believes the appraisal
report may be unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination.
``(C) At the time of application and upon delivery
of the appraisal report to the consumer, the creditor
shall provide a written disclosure to the consumer
describing the process for requesting a reconsideration
of value or subsequent appraisal, which written
disclosure shall include a standardized format for the
consumer to submit the request for a reconsideration of
value, including--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the
appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of why the consumer
believes the appraisal report may be
unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination;
``(vii) any additional information, data,
including not more than 5 alternative
comparable properties and the related data
sources that the consumer would like the
appraiser to consider; and
``(viii) an explanation of why the new
information, data, or comparable properties
support the reconsideration of value.
``(D) The creditor shall obtain the necessary
information from the consumer if the consumer's request
for reconsideration of value or subsequent appraisal is
unclear or requires more information.
``(E) The creditor shall have a standardized format
to communicate the reconsideration of value to the
appraiser, which format shall include--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the
appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of any area of the
appraisal report that may be unsupported, may
be deficient due to an unacceptable appraisal
practice, or may reflect discrimination;
``(vii) any additional information, data,
including not more than 5 alternative
comparable properties and the related data
sources that the consumer would like the
appraiser to consider;
``(viii) an explanation of why the new
information, data, or comparable properties
support the reconsideration of value;
``(ix) a definition of turn-time
expectations for the appraiser to communicate
the reconsideration of value results back to
the creditor;
``(x) instructions for delivering the
reconsideration of value response as part of a
revised appraisal report that includes
commentary on conclusions regardless of the
outcome; and
``(xi) a reference for appraisers on how to
correct minor appraisal issues or non-material
errors not related to the reconsideration of
value process.
``(3) Subsequent appraisal and referral.--
``(A) In general.--If the creditor identifies
material deficiencies in the appraisal report that are
not corrected or addressed by the appraiser upon
request of the creditor, including through a consumer-
initiated reconsideration of value, or if there is
evidence of unsupported or unacceptable appraisal
practices, the creditor shall--
``(i) at the request of the consumer, order
a subsequent appraisal at the creditor's own
expense; and
``(ii) forward the appraisal report and the
creditor's summary of findings to the
appropriate appraisal licensing agency or
regulatory board.
``(B) Discrimination.--If the creditor has reason
to believe that an appraisal report reflects
discrimination, the creditor shall--
``(i) order a subsequent appraisal, at the
creditor's own expense;
``(ii) forward the appraisal report and the
creditor's summary of findings to the
appropriate local, State, or Federal
enforcement agency; and
``(iii) upon a final determination of
discrimination by the appropriate local, State,
or Federal enforcement agency, receive a
reimbursement from the appraiser covering the
cost of the subsequent appraisal ordered by the
creditor.
``(C) Definition.--
``(i) In general.--Except as provided in
clause (ii), in this paragraph, the term
`reason to believe' means that the creditor has
reviewed the applicable law and available
evidence and determined that a potential
violation of Federal or state
antidiscrimination law exists. The available
evidence may include the appraisal report, loan
files, written communications, credible
observations by persons with direct knowledge,
statistical analysis, and the appraiser's
response to the request for a reconsideration
of value.
``(ii) Exception.--The term `reason to
believe' does not mean that there is a final
legal determination of discrimination.
``(4) Document retention.--The creditor shall retain all
documentation and written communications related to the request
for reconsideration of value or subsequent appraisal in the
loan file during the 7-year period beginning on the date on
which the consumer submitted the credit application.
``(5) Rule of construction.--This subsection is consistent
with the exceptions to the appraiser independence requirements
found in subsection (c). Nothing in this subsection shall be
construed to require a creditor to submit a reconsideration of
value to the original appraiser before ordering a subsequent
appraisal from a subsequent appraiser.''.
(2) Rules and interpretative guidelines.--Section 129E(g)
of the Truth in Lending Act (15 U.S.C. 1639e(g)) is amended--
(A) in paragraph (1), by striking ``paragraph (2),
the Board'' and inserting ``paragraphs (2) and (3), the
Bureau''; and
(B) by adding at the end the following:
``(3) Final rule.--Not later than 1 year after the date of
enactment of this paragraph, the Federal Housing Finance Agency
shall issue a final rule after notice and comment and issue
such guidance as may be necessary to carry out and enforce
subsection (j).''.
(b) Public Appraisal Database.----
(1) Covered agencies defined.--The term ``covered
agencies'' means--
(A) the Federal Housing Finance Agency, on behalf
of the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation;
(B) the Department of Housing and Urban
Development, including the Federal Housing
Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) Feasibility report.--No later than 240 days after the
date of enactment of this Act, the Comptroller General of the
United States shall issue a public report to Congress assessing
the feasibility of creating a publicly available appraisal
database that consists of a searchable and downloadable
appraisal-level public use file that consolidates appraisal
data held or aggregated by covered agencies, which shall
include--
(A) the costs and benefits associated with
establishing and maintaining the public database;
(B) the benefits and risks associated with either
the Federal Housing Finance Agency or the Bureau of
Consumer Financial Protection being responsible for the
public database and whether there is another Federal
agency best suited for implementing and administering
such database;
(C) any safety and soundness, antitrust, or
consumer privacy-related risks associated with making
certain appraisal data factors publicly available,
including whether-
(i) there are any existing legal
requirements, including under the Home Mortgage
Disclosure Act of 1974 (12 U.S.C. 2801 et seq.)
and section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information
Act''), or additional actions Federal agencies
could take to mitigate such risks, such as
modifying or aggregating data, or eliminating
personally identifiable information; and
(ii) there are any data factors that, if
made public, may violate conduct, ethics, or
other professional standards as they relate to
appraisals and appraisal or valuation
professionals;
(D) the feasibility of consolidating or matching
appraisal data held by covered agencies with
corresponding data that is required and made public
under the Home Mortgage Disclosure Act of 1974 (12
U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data
factors may pose unfair business advantages within the
valuation industry;
(F) the feasibility of including all valuation data
held by covered agencies, including data produced by
automated valuation models;
(G) the feasibility and benefits of making the full
appraisal dataset, including any modified fields,
available to--
(i) Federal agencies, including for
purposes related to enforcement and supervision
responsibilities;
(ii) relevant State licensing, supervision,
and enforcement agencies and State attorneys
general;
(iii) approved researchers, including
academics and nonprofit organizations that, in
connection with their mission, work to ensure
the fairness and consistency of home
valuations, including appraisals; and
(iv) any other entities identified by the
Comptroller General as having a compelling use
for disaggregated data;
(H) what appraisal data is already available in the
public domain; and
(I) the feasibility of incorporating legacy data
held by covered agencies during the period beginning on
January 1, 2017 and ending on the date of enactment of
this Act, and whether there are specific data points
not easily consolidated or matched, as described in
subparagraph (D), with more recent data.
(3) Purpose.--The database described in paragraph (2) shall
be used to provide the public, the Federal Government, and
State governments with residential real estate appraisal data
to help determine whether financial institutions, appraisal
management companies, appraisers, valuation technologies, such
as automated valuation models, and other valuation
professionals are serving the housing market in a manner that
is efficient and consistent for all mortgage loan applicants,
borrowers, and communities.
(4) Consultation.--As part of the information used in the
report required under paragraph (2), the Comptroller General of
the United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and
enforcement agencies and State attorneys general;
(C) appraisers and other home valuation industry
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) any other relevant stakeholders as determined
by the Comptroller General.
(5) Hearing.--Upon the completion of the report under
paragraph (2), the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives shall each hold a hearing on
the findings of the report and the feasibility of establishing
a public appraisal-level appraisal database.
TITLE VIII--COORDINATION, STUDIES, AND REPORTING
SEC. 801. HUD-USDA-VA INTERAGENCY COORDINATION ACT.
(a) Memorandum of Understanding.--The Secretary of Housing and
Urban Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall establish a memorandum of understanding, or
other appropriate interagency agreement, to share relevant housing-
related research and market data that facilitates evidence-based
policymaking.
(b) Interagency Report.--
(1) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall jointly submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Finance of the House of Representatives a report
containing--
(A) a description of opportunities for increased
collaboration between the Secretary of Housing and
Urban Development, the Secretary of Agriculture, and
the Secretary of Veterans Affairs to reduce
inefficiencies in housing programs;
(B) a list of Federal laws and regulations that
adversely affect the availability and affordability of
new construction of assisted housing and single family
and multifamily residential housing subject to
mortgages insured under title II of the National
Housing Act (12 U.S.C. 1707 et seq.), insured,
guaranteed, or made by the Secretary of Agriculture
under title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.), or insured, guaranteed, or made by the
Secretary of Veterans Affairs under chapter 37 of title
38, United States Code; and
(C) recommendations for Congress regarding the
Federal laws and regulations described in subparagraph
(B).
(2) Publication.--The report required under paragraph (1)
shall, prior to submission under that subsection, be published
in the Federal Register and open for comment for a period of 30
days.
SEC. 802. STREAMLINING RURAL HOUSING ACT.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development
and the Secretary of Agriculture shall enter into a memorandum of
understanding to--
(1) evaluate categorical exclusions under the environmental
review process for housing projects funded by amounts from the
Department of the Housing and Urban Development and the
Department of Agriculture;
(2) develop a process to designate a lead agency and
streamline adoption of Environmental Impact Statements and
Environmental Assessments approved by the other Department to
construct housing projects funded by both agencies;
(3) maintain compliance with environmental regulations
under part 58 of title 24, Code of Federal Regulations, as in
effect on January 1, 2025, except as required to amend, add, or
remove categorical exclusions identified under sections 58.35
of title 24, Code of Federal Regulations, through standard
rulemaking procedures; and
(4) evaluate the feasibility of a joint physical inspection
process for housing projects funded by amounts from the
Department of the Housing and Urban Development and the
Department of Agriculture.
(b) Advisory Working Group.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development and the Secretary of Agriculture shall establish an
advisory working group for the purpose of consulting on the
memorandum of understanding entered into under subsection (a).
(2) Members.--The advisory working group established under
paragraph (1) shall consist of representatives of--
(A) affordable housing nonprofit organizations;
(B) State housing agencies;
(C) nonprofit and for-profit home builders and
housing developers;
(D) property management companies;
(E) public housing agencies;
(F) residents in housing assisted by the Department
of Housing and Urban Development or the Department of
Agriculture and representatives of those residents; and
(G) housing contract administrators.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Housing and Urban Development and the
Secretary of Agriculture shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that includes
recommendations for legislative, regulatory, or administrative
actions--
(1) to improve the efficiency and effectiveness of housing
projects funded by amounts from the Department of the Housing
and Urban Development and the Department of Agriculture; and
(2) that do not materially, with respect to residents of
housing projects described in paragraph (1)--
(A) reduce the safety of those residents;
(B) shift long-term costs onto those residents; or
(C) undermine the environmental standards of those
residents.
SEC. 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 to the
date of enactment of this Act by public housing agencies
described in paragraph (4) participating in the Moving to Work
demonstration authorized under section 204 of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f
note).
(2) Scope.--The study required under paragraph (1) shall--
(A) consider the short-, medium-, and long-term
benefits and challenges of work requirements on public
housing agencies described in paragraph (4) and on
program participants who are subject to such
requirements, including the effects work requirements
have on homelessness rates, poverty rates, asset
building, earnings growth, job attainment and
retention, and public housing agencies' administrative
capacity; and
(B) include quantitative and qualitative evidence,
including interviews with program participants
described in subparagraph (A) and their respective
resident councils.
(3) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall report the initial
findings of the study required under paragraph (1) to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives.
(4) Public housing agencies described.--The public housing
agencies described in this paragraph are public housing
agencies that, as part of an application to participate in the
program under section 204 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note),
submit a proposal identifying work requirements as an
innovative proposal.
(b) Determination.--The requirement under subsection (a) shall
apply if the Secretary of Housing and Urban Development determines
that--
(1) there are a sufficient number of public housing
agencies described in subsection (a)(4) such that the Secretary
of Housing and Urban Development can rigorously evaluate the
impact of the implementation of work requirements described in
that subsection; and
(2) the study would not negatively impact low-income
families receiving assistance through a public housing agency
described in subsection (a)(4).
Calendar No. 143
119th CONGRESS
1st Session
S. 2651
_______________________________________________________________________
A BILL
To increase the supply of affordable housing in America.
_______________________________________________________________________
August 1, 2025
Read twice and placed on the calendar
Introduced in Senate
Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Scott SC. Without written report.
Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Scott SC. Without written report.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 143.
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