Santa Rosa City Council
September 30, 2025

II
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 Representa-1
tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Renewing Opportunity 4
in the American Dream to Housing Act of 2025’’ or the 5 ‘‘ROAD to Housing Act of 2025’’. 6
SEC. 2. TABLE OF CONTENTS. 7
The table of contents for this Act is as follows: 8
Sec. 1. Short title.

Sec. 2. Table of contents.

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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 Re- views 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 (RE- SIDE) 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 Moderniza- tion 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.

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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 1
LITERACY 2
SEC. 101. REFORMS TO HOUSING COUNSELING AND FINAN-3
CIAL LITERACY PROGRAMS. 4
(a) I N GENERAL.—Section 106 of the Housing and 5
Urban Development Act of 1968 (12 U.S.C. 1701x) is 6
amended— 7
(1) in subsection (a)(4)(C), by striking ‘‘ade-8
quate distribution’’ and all that follows through 9
‘‘foreclosure rates’’ and inserting ‘‘that the recipi-10 ents are geographically diverse and include organiza-11 tions that serve urban or rural areas’’; 12
(2) in subsection (e), by adding at the end the 13
following: 14
‘‘(6) PERFORMANCE REVIEW .—The Secretary— 15
‘‘(A) may conduct periodic on-site reviews; 16
and 17
‘‘(B) shall conduct performance reviews of 18
all participating agencies that— 19
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‘‘(i) consists of a review of the partici-1
pating agency’s compliance with all pro-2
gram requirements; and 3
‘‘(ii) may take into account the agen-4
cy’s aggregate counselor performance 5
under paragraph (7)(B). 6
‘‘(7) CONSIDERATIONS.— 7
‘‘(A) C OVERED MORTGAGE LOAN DE -8
FINED.—In this paragraph, the term ‘covered 9
mortgage loan’ means any loan which is secured 10
by a first or subordinate lien on residential real 11
property (including individual units of con-12
dominiums and cooperatives) designed prin-13
cipally for the occupancy of between 1 and 4 14
families that is— 15
‘‘(i) insured by the Federal Housing 16
Administration under title II of the Na-17
tional Housing Act (12 U.S.C. 1707 et 18
seq.); or 19
‘‘(ii) guaranteed under section 184 or 20
184A of the Housing and Community De-21
velopment Act of 1992 (12 U.S.C. 1715z– 22
13a, 1715z–13b). 23
‘‘(B) C OMPARISON.—For each counselor 24
employed by an organization receiving assist-25
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ance under this section for pre-purchase hous-1
ing counseling, the Secretary may consider the 2
performance of the counselor compared to the 3
default rate of all counseled borrowers of a cov-4
ered mortgage loan in comparable markets and 5
such other factors as the Secretary determines 6
appropriate to further the purposes of this sec-7
tion. 8
‘‘(8) C ERTIFICATION.—If, based on the com-9
parison required under paragraph (7)(B), the Sec-10
retary determines that a counselor lacks competence 11
to provide counseling in the areas described in sub-12
section (e)(2) and such action will not create a sig-13 nificant loss of capacity for housing counseling serv-14 ices in the service area, the Secretary may— 15
‘‘(A) require continued education coupled 16
with successful completion of a probationary pe-17
riod; 18
‘‘(B) require retesting if the counselor con-19
tinues to demonstrate a lack of competence 20
under paragraph (7)(B); and 21
‘‘(C) permanently suspend an individual 22
certification if a counselor fails to demonstrate 23
competence after not fewer than 2 retesting op-24
portunities under subparagraph (B).’’; 25
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(3) in subsection (i)— 1
(A) by redesignating paragraph (3) as 2
paragraph (4); and 3
(B) by inserting after paragraph (2) the 4
following: 5
‘‘(3) TERMINATION OF ASSISTANCE .— 6
‘‘(A) I N GENERAL .—The Secretary may 7
deny renewal of covered assistance to an organi-8
zation or entity receiving covered assistance if 9
the Secretary determines that the organization 10
or entity, or the individual through which the 11
organization or entity provides counseling, is 12
not in compliance with program requirements— 13
‘‘(i) based on the performance review 14
described in subsection (e)(6); and 15
‘‘(ii) in accordance with regulations 16
issued by the Secretary. 17
‘‘(B) N OTICE.—The Secretary shall give 18
an organization or entity receiving covered as-19
sistance not less than 60 days prior written no-20
tice of any denial of renewal under this para-21
graph, and the determination of renewal shall 22
not be finalized until the end of that notice pe-23
riod. 24
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‘‘(C) I NFORMAL CONFERENCE .—If re-1
quested in writing by the organization or entity 2
within the notice period described in subpara-3
graph (B), the organization or entity shall be 4
entitled to an informal conference with the Dep-5
uty Assistant Secretary of Housing Counseling 6
on behalf of the Secretary at which the organi-7
zation or entity may present for consideration 8
of specific factors that the organization or enti-9
ty believes were beyond the control of the orga-10
nization or entity and that caused the failure to 11
comply with program requirements, such as a 12
lack of lender or servicer coordination or com-13
munication with housing counseling agencies 14
and individual counselors.’’; and 15
(4) by adding at the end the following: 16
‘‘(j) O FFERING FORECLOSURE MITIGATION COUN-17
SELING.— 18
‘‘(1) C OVERED MORTGAGE LOAN DEFINED .—In 19
this subsection, the term ‘covered mortgage loan’ 20
means any loan which is secured by a first or subor-21
dinate lien on residential real property (including in-22 dividual units of condominiums) or stock or member-23
ship in a cooperative ownership housing corporation 24
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designed principally for the occupancy of between 1 1
and 4 families that is— 2
‘‘(A) insured by the Federal Housing Ad-3
ministration under title II of the National 4
Housing Act (12 U.S.C. 1707 et seq.); 5
‘‘(B) guaranteed under section 184 or 6
184A of the Housing and Community Develop-7
ment Act of 1992 (12 U.S.C. 1715z–13a, 8
1715z–13b); 9
‘‘(C) made, guaranteed, or insured by the 10
Department of Veterans Affairs; or 11
‘‘(D) made, guaranteed, or insured by the 12
Department of Agriculture. 13
‘‘(2) O PPORTUNITY FOR BORROWERS .—A bor-14
rower with respect to a covered mortgage loan who 15
is 30 days or more delinquent on payments for the 16
covered mortgage loan shall be given an opportunity 17
to participate in available housing counseling. 18
‘‘(3) C OST.—If the requirements of sections 19
202(a)(3) and 205(f) of the National Housing Act 20
(12 U.S.C. 1708(a)(3), 1711(f)) are met, the fair 21
market rate cost of counseling for delinquent bor-22
rowers described in paragraph (2) with respect to a 23
covered mortgage loan described in paragraph 24
(1)(A) shall be paid for by the Mutual Mortgage In-25
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surance Fund, as authorized under section 203(r)(4) 1
of the National Housing Act (12 U.S.C. 2
1709(r)(4)).’’. 3
TITLE II—BUILDING MORE IN 4
AMERICA 5
SEC. 201. RENTAL ASSISTANCE DEMONSTRATION PRO-6
GRAM. 7
The language under the heading ‘‘R ENTAL ASSIST-8
ANCE DEMONSTRATION’’ in the Department of Housing 9
and Urban Development Appropriations Act, 2012 (Public 10 Law 112–55; 125 Stat. 673) is amended— 11
(1) in the second proviso, by striking ‘‘until 12
September 30, 2029’’ and inserting ‘‘for fiscal year 13 2012 and each fiscal year thereafter’’; 14
(2) by striking the fourth proviso; 15
(3) in the twentieth proviso, as so designated 16
before the date of enactment of this Act, by striking 17 ‘‘or other means:’’ and inserting ‘‘or other means, 18
including the adoption of a mandatory tenant lease 19
and management plan addendum for a property with 20
assistance converted, if not otherwise covered by an-21 other program, under this demonstration:’’ 22
(4) by striking the twenty-second proviso, as so 23
designated before the date of enactment of this Act; 24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 10 •S 2651 RS
(5) in the twenty-seventh, thirtieth, thirty-first, 1
thirty-second, thirty-third, and thirty-forth provisos, 2 as so designated before the date of enactment of this 3 Act, by striking ‘‘Second Component’’ each place the 4
term appears and inserting ‘‘First Component’’; and 5
(6) by striking ‘‘vouchers to project-based 6
vouchers.’’ and inserting ‘‘vouchers to project-based 7 vouchers: Provided further , That the Secretary shall 8 annually assess and publish findings regarding the 9
impact of the conversion of assistance under the 10
First Component of the demonstration with respect 11
to the preservation and improvement of public hous-12
ing, the amount of private sector leveraging result-13
ing from such conversion transactions, the preva-14
lence of pre-conversion residents remaining in or re-15 turning to the property following conversion, and the 16 effect of such conversion on tenants, including the 17
impact of such conversion on the rights maintained 18
by tenants as enumerated in regulations and other 19
documents conferring rights upon tenants as devel-20
oped by the Secretary, and other matters the Sec-21
retary may determine appropriate: Provided further , 22 That the Secretary may take remediative action or 23
impose civil money penalties or other administrative 24 sanctions for material violations of a requirement 25
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under the demonstration: Provided further , That 1
nothing in the matter under this heading shall be 2
construed to diminish, impair, or otherwise affect 3
the rights of property owners or tenants as enumer-4
ated in current law and regulations: Provided fur-5
ther, That all property owner rights, including those 6 related to ownership, management, and contractual 7
obligations, shall continue to apply and be respected 8 following a Rental Assistance Demonstration Pro-9
gram conversion: Provided further , That all tenant 10
protections and rights established in current law and 11 regulations shall remain fully in effect for properties 12 converted under the Rental Assistance Demonstra-13
tion Program.’’. 14
SEC. 202. INCREASING HOUSING IN OPPORTUNITY ZONES. 15
(a) COVERED GRANT DEFINED.—In this section, the 16
term ‘‘covered grant’’ means any competitive grant relat-17 ing to the construction, modification, rehabilitation, or 18 preservation of housing, as determined by the Secretary 19 of Housing and Urban Development. 20
(b) PRIORITY.—When awarding a covered grant, the 21
Secretary of Housing and Urban Development may give 22
additional weight to applicants located in, or that pri-23 marily serve, a community that has been designated as 24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 12 •S 2651 RS
a qualified opportunity zone under section 1400Z–1 of the 1 Internal Revenue Code of 1986. 2
SEC. 203. HOUSING SUPPLY FRAMEWORKS ACT. 3
(a) FINDINGS.—Congress finds the following: 4
(1) The United States is facing a housing sup-5
ply shortage. This housing supply shortage has re-6
sulted in a record number of cost-burdened house-7
holds across regions and spanning the large and 8
small cities, towns, and coastal and rural commu-9
nities of the United States. 10
(2) Several factors contribute to the under-11
supply of housing in the United States, particularly 12 workforce housing, including rising costs of con-13
struction, a shortage of labor, supply chain disrup-14
tions, and a lack of reliable funding sources. 15
(3) Regulatory barriers at the State and local 16
levels, such as zoning and land use regulations, also 17 inhibit the creation of new housing to meet local and 18 regional housing needs. 19
(4) State and local governments are proactively 20
exploring solutions for reforming regulatory barriers, 21 but additional resources, data, and models can help 22
adequately address these challenges. 23
(5) While land use regulation is the responsi-24
bility of State and local governments, there is Fed-25
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eral support for necessary reforms, and there is an 1
opportunity for the Federal Government to provide 2
support and assistance to State and local govern-3
ments that wish to undertake necessary reforms in 4
a manner that fits their communities’ needs. 5
(6) Therefore, zoning ordinances or systems of 6
land use regulation that have the intent or effect of 7 restricting housing opportunities based on economic 8
status or income without interests that are substan-9
tial, legitimate, nondiscriminatory and that outweigh 10 the regional need for housing are contrary to the re-11 gional and national interest. 12
(b) DEFINITIONS.—In this section: 13
(1) AFFORDABLE HOUSING .—The term ‘‘afford-14
able housing’’ means housing for which the monthly 15
payment is not more than 30 percent of the monthly 16
income of the household. 17
(2) ASSISTANT SECRETARY .—The term ‘‘Assist-18
ant Secretary’’ means the Assistant Secretary for 19
Policy Development and Research of the Depart-20
ment of Housing and Urban Development. 21
(3) L OCAL ZONING FRAMEWORK .—The term 22
‘‘local zoning framework’’ means the local zoning 23
codes and other ordinances, procedures, and policies 24 governing zoning and land-use at the local level. 25
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(4) S ECRETARY.—The term ‘‘Secretary’’ means 1
the Secretary of Housing and Urban Development. 2
(5) S TATE ZONING FRAMEWORK .—The term 3
‘‘State zoning framework’’ means the State legisla-4
tion or State agency and department procedures, or 5
such legislation or procedures in an insular area of 6
the United States, enabling local planning and zon-7
ing authorities and establishing and guiding related 8
policies and programs. 9
(c) G UIDELINES ON STATE AND LOCAL ZONING 10
FRAMEWORKS.— 11
(1) E STABLISHMENT.—Not later than 3 years 12
after the date of enactment of this Act, the Assist-13
ant Secretary shall publish documents outlining 14
guidelines and best practices to support production 15
of adequate housing to meet the needs of commu-16
nities and provide housing opportunities for individ-17 uals at every income level across communities with 18
respect to— 19
(A) State zoning frameworks; and 20
(B) local zoning frameworks. 21
(2) C ONSULTATION; PUBLIC COMMENT .—Dur-22
ing the 2-year period beginning on the date of enact-23 ment of this Act, in developing the guidelines and 24
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best practices required under paragraph (1), the As-1
sistant Secretary shall— 2
(A) publish draft guidelines in the Federal 3
Register for public comment; and 4
(B) establish a task force for the purpose 5
of providing consultation to draft guidelines 6
published under subparagraph (A), the mem-7
bers of which shall include— 8
(i) planners and architects; 9
(ii) housing developers, including af-10
fordable and market-rate housing devel-11
opers, manufactured housing developers, 12
and other business interests; 13
(iii) community engagement experts 14
and community members impacted by zon-15
ing decisions; 16
(iv) public housing authorities and 17
transit authorities; 18
(v) members of local zoning and plan-19
ning boards and local and regional trans-20
portation planning organizations; 21
(vi) State officials responsible for 22
housing or land use, including members of 23
State zoning boards of appeals; 24
(vii) academic researchers; and 25
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(viii) home builders. 1
(3) C ONTENTS.—The guidelines and best prac-2
tices required under paragraph (1) shall— 3
(A) with respect to State zoning frame-4
works, outline potential models for updated 5
State enabling legislation or State agency and 6
department procedures; 7
(B) include recommendations regarding— 8
(i) the reduction or elimination of 9
parking minimums; 10
(ii) the increase in maximum floor 11
area ratio requirements and maximum 12
building heights and the reduction in min-13
imum lot sizes and set-back requirements; 14
(iii) the elimination of restrictions 15
against accessory dwelling units; 16
(iv) increasing by-right uses, including 17
duplex, triplex, or quadplex buildings, 18
across cities or metropolitan areas; 19
(v) mechanisms, including proximity 20
to transit, to determine the appropriate 21
scope for rezoning and ensure development 22
that does not disproportionately burden 23
residents of economically distressed areas; 24
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(vi) provisions regarding review of by- 1
right development proposals to streamline 2
review and reduce uncertainty, including— 3
(I) nondiscretionary, ministerial 4
review; and 5
(II) entitlement and design re-6
view processes; 7
(vii) the reduction of obstacles, regu-8
latory or otherwise, to a range of housing 9
types at all levels of affordability, including 10
manufactured and modular housing; 11
(viii) State model zoning regulations 12
for directing local reforms, including mech-13
anisms to encourage adoption; 14
(ix) provisions to encourage transit- 15
oriented development, including increased 16
permissible units per structure and re-17
duced minimum lot sizes near existing or 18
planned public transit stations; 19
(x) potential reforms to strengthen 20
the public engagement process; 21
(xi) reforms to protest petition stat-22
utes; 23
(xii) the standardization, reduction, or 24
elimination of impact fees; 25
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(xiii) cost effective and appropriate 1
building codes; 2
(xiv) models for community benefit 3
agreements; 4
(xv) mechanisms to preserve afford-5
ability, limit disruption of low-income com-6
munities, and prevent displacement of ex-7
isting residents; 8
(xvi) with respect to State zoning 9
frameworks— 10
(I) State model codes for direct-11
ing local reforms, including mecha-12
nisms to encourage adoption; 13
(II) a model for a State zoning 14
appeals process, which would— 15
(aa) create a process for de-16
velopers or builders requesting a 17
variance, conditional use, special 18
permit, zoning district change, 19
similar discretionary permit, or 20
otherwise petitioning a local zon-21
ing or planning board for a 22
project including a State-defined 23
amount of affordable housing to 24
appeal a rejection to a State body 25
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or regional body empowered by 1
the State; and 2
(bb) establish qualifications 3
for communities to be exempted 4
from the appeals process based 5
on their available stock of afford-6
able housing; and 7
(III) streamlining of State envi-8
ronmental review policies; 9
(xvii) with respect to local zoning 10
frameworks— 11
(I) the simplification and stand-12
ardization of existing zoning codes; 13
(II) maximum review timelines; 14
(III) best practices for the dis-15
position of land owned by local gov-16
ernments for affordable housing devel-17
opment; 18
(IV) differentiations between best 19
practices for rural, suburban, and 20
urban communities, and communities 21
with different levels of density or pop-22
ulation distribution; and 23
(V) streamlining of local environ-24
mental review policies; and 25
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(xviii) other land use measures that 1
promote access to new housing opportuni-2
ties identified by the Secretary; and 3
(C) consider— 4
(i) the effects of adopting any rec-5
ommendation on eligibility for Federal dis-6
cretionary grants and tax credits for the 7
purpose of housing or community develop-8
ment; 9
(ii) coordination between infrastruc-10
ture investments and housing planning; 11
(iii) local housing needs, including 12
ways to set and measure housing goals and 13
targets; 14
(iv) a range of affordability for rental 15
units, with a prioritization of units attain-16
able to extremely low-, low-, and moderate- 17
income residents; 18
(v) a range of affordability for home-19
ownership; 20
(vi) accountability measures; 21
(vii) the long-term cost to residents 22
and businesses if more housing is not con-23
structed; 24
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(viii) barriers to individuals seeking to 1
access affordable housing in growing com-2
munities and communities with economic 3
opportunity; 4
(ix) with respect to State zoning 5
frameworks— 6
(I) distinctions between States 7
providing constitutional or statutory 8
home rule authority to municipalities 9
and States operating under the Dillon 10
Rule, as articulated in Hunter v. 11
Pittsburgh, 207 U.S. 161 (1907); and 12
(II) Statewide mechanisms to 13
preserve existing affordability over the 14
long term, including support for land 15
banks and community land trusts; 16
(x) public comments elicited under 17
paragraph (2)(A); and 18
(xi) other considerations, as identified 19
by the Secretary. 20
(d) A BOLISHMENT OF THE REGULATORY BARRIERS 21
CLEARINGHOUSE.— 22
(1) I N GENERAL .—The Regulatory Barriers 23
Clearinghouse established pursuant to section 1205 24
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of the Housing and Community Development Act of 1
1992 (42 U.S.C. 12705d) is abolished. 2
(2) REPEAL.—Section 1205 of the Housing and 3
Community Development Act of 1992 (42 U.S.C. 4
12705d) is repealed. 5
(e) REPORTING.— 6
(1) I NITIAL REPORT .—Not later than 5 years 7
after the date on which the Assistant Secretary pub-8
lishes the guidelines and best practices for State and 9 local zoning frameworks, the Assistant Secretary 10
shall submit to Congress a report describing— 11
(A) the States that have adopted rec-12
ommendations from the guidelines and best 13
practices, pursuant to subsection (c); 14
(B) a summary of the localities that have 15
adopted recommendations from the guidelines 16
and best practices, pursuant to subsection (c); 17
(C) a list of States that adopted a State 18
zoning framework; 19
(D) a summary of the modifications that 20
each State has made in their State zoning 21
framework; 22
(E) a general summary of the types of up-23
dates localities have made to their local zoning 24
framework; 25
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(F) of the States that have adopted a 1
State zoning framework or recommendations 2
from the guidelines and best practices, the ef-3
fect of such adoptions; and 4
(G) a summary of recommendations that 5
were routinely not adopted by States or by lo-6
calities. 7
(2) M ONITORING.—Two years after the date 8
which the Assistant Secretary submits to Congress 9
the initial report required under paragraph (1), and 10 biennially thereafter, the Secretary shall— 11
(A) publish a report that— 12
(i) provides the latest information re-13
garding the information described in sub-14
paragraphs (A) through (G) of that para-15
graph; 16
(ii) identifies, to the greatest extent 17
practicable, the adoption rates by States 18
and localities of each guideline and best 19
practice established under subsection (c); 20
(iii) requests and establishes a public 21
comment period on the guidelines and best 22
practices established under subsection (c) 23
that are routinely not adopted or adopted 24
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at significantly lower rates by States and 1
localities; and 2
(iv) includes other relevant informa-3
tion and criteria, as determined by the 4
Secretary; and 5
(B) review and consider all public feedback 6
to the report required under subparagraph (A) 7
for the purpose of improving the guidelines or 8
best practices under subsection (c) to further 9
achieve the zoning goals stated in subsection 10
(a). 11
(f) GAO R EPORT ON HOUSING SUPPLY.—Not later 12
than 1 year after the date of enactment of this Act, the 13 Comptroller General of the United States shall submit to 14 the Committee on Banking, Housing, and Urban Affairs 15 of the Senate and the Committee on Financial Services 16 of the House of Representatives a report that investigates 17 barriers to housing supply, which shall include an assess-18 ment of— 19
(1) the current state of— 20
(A) the rental and homeowner housing 21
supply shortage; 22
(B) geographic patterns of that shortage; 23
(C) shortages in housing at various levels 24
of affordability; and 25
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(D) shortages in housing appropriate for 1
seniors, families with children, and people with 2
disabilities; 3
(2) the key drivers of the shortages described in 4
paragraph (1); 5
(3) regulatory, administrative, or procedural 6
barriers that exist in Federal housing programs that 7
inhibit housing development, and policy actions that 8
can be taken to address those barriers; 9
(4) the extent to which jurisdictions have suc-10
cessfully implemented zoning or other policy reforms 11 to increase housing production and supply; and 12
(5) opportunities for increasing coordination be-13
tween the Department of Housing and Urban Devel-14
opment, the Federal Housing Finance Agency, the 15
Department of Agriculture, the Department of the 16
Treasury, and other agencies to address housing 17
supply. 18
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 19
authorized to be appropriated to the Secretary to carry 20 out this section such sums as may be necessary for each 21 of fiscal years 2026 through 2030. 22
(h) R ULE OF CONSTRUCTION.—Nothing in this sec-23
tion may be construed to permit the Department of Hous-24 ing and Urban Development to take an adverse action 25
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against or fail to provide otherwise offered actions or serv-1 ices for any State or locality if the State or locality de-2 clines to adopt a guideline or best practice under sub-3 section (c). 4
SEC. 204. WHOLE-HOME REPAIRS ACT. 5
(a) DEFINITIONS.—In this section: 6
(1) A FFORDABLE UNIT .—The term ‘‘affordable 7
unit’’ means a unit for which the monthly rental 8
payment is not more than 30 percent of the gross 9
income of an individual earning at or below 80 per-10
cent of the area median income, as defined by the 11
Secretary. 12
(2) A SSISTED UNIT .—The term ‘‘assisted unit’’ 13
means a unit that undergoes repair or rehabilitation 14 work through a whole-home repairs program admin-15
istered by an implementing organization under this 16
section. 17
(3) E LIGIBLE HOMEOWNER .—The term ‘‘eligi-18
ble homeowner’’ means a homeowner— 19
(A) with a household income that— 20
(i) is not more than 80 percent of the 21
area median income; or 22
(ii) meets the income eligibility re-23
quirements for receiving assistance or ben-24
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efits under a specified program, as defined 1
in paragraph (11); and 2
(B) who is— 3
(i) an owner of record as evidenced by 4
a publicly recorded deed and occupies the 5
home on which repairs are to be conducted 6
as their principal residence; 7
(ii) an owner-occupant of the manu-8
factured home on which repairs are to be 9
conducted; or 10
(iii) an owner who can demonstrate an 11
ownership interest in the property on 12
which repairs are to be conducted, includ-13
ing a person who has inherited an interest 14
in that property. 15
(4) E LIGIBLE LANDLORD .—The term ‘‘eligible 16
landlord’’ means an individual— 17
(A) who owns, as determined by the rel-18
evant implementing organization, fewer than 10 19
eligible rental properties, with a majority of af-20
fordable units and not more than 50 total units, 21
operated as primary residences in which a ma-22
jority ownership interest is held by the indi-23
vidual, the spouse of the individual, or the de-24
pendent children of the individual, or any close-25
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ly held legal entity controlled by the individual, 1
the spouse of the individual, or the dependent 2
children of the individual, either individually or 3
collectively; and 4
(B) who agrees to the provisions described 5
in subsection (b)(3). 6
(5) E LIGIBLE RENTAL PROPERTY .—The term 7
‘‘eligible rental property’’ means a residential prop-8 erty that— 9
(A) is leased, or offered exclusively for 10
lease, as a primary residence by an eligible 11
landlord; and 12
(B) includes affordable units. 13
(6) F ORGIVABLE LOAN .—The term ‘‘forgivable 14
loan’’ means a loan— 15
(A) made to an eligible landlord; 16
(B) that is secured by a lien recorded 17
against a residential property; and 18
(C) that may be forgiven by the imple-19
menting organization not later than the date 20
that is 3 years after the completion of the re-21
pairs if the eligible landlord has maintained 22
compliance with the loan agreement described 23
in subsection (b)(3). 24
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(7) I MPLEMENTING ORGANIZATION .—The term 1
‘‘implementing organization’’— 2
(A) means a unit of general local govern-3
ment or a State that— 4
(i) will administer a whole-home re-5
pairs program through an agency, depart-6
ment, or other entity; or 7
(ii) enter into agreements with 1 or 8
more local governments, municipal authori-9
ties, other governmental authorities, in-10
cluding a tribally designated housing enti-11
ty, or qualified nonprofit organizations, to 12
administer a whole-home repairs program 13
as a subrecipient; and 14
(B) does not include a redundant entity in 15
a jurisdiction already served by a grantee under 16
subsection (b). 17
(8) I NDIAN TRIBE .—The term ‘‘Indian tribe’’ 18
has the meaning given the term in section 4 of the 19
Native American Housing Assistance and Self-De-20
termination Act of 1996 (25 U.S.C. 4103). 21
(9) Q UALIFIED NONPROFIT .—The term ‘‘quali-22
fied nonprofit’’ means a nonprofit organization 23
that— 24
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(A) has received funding, as a recipient or 1
subrecipient, through— 2
(i) the Community Development Block 3
Grant program under title I of the Hous-4
ing and Community Development Act of 5
1974 (42 U.S.C. 5301 et seq.); 6
(ii) the HOME Investment Partner-7
ships program under subtitle A of title II 8
of the Cranston-Gonzalez National Afford-9
able Housing Act (42 U.S.C. 12741 et 10
seq.); 11
(iii) the Lead-Based Paint Hazard 12
Reduction grant program under section 13
1011 of the Residential Lead-Based Paint 14
Hazard Reduction Act of 1992 (42 U.S.C. 15
4852) or a grant under the Healthy 16
Homes Initiative administered by the Sec-17
retary pursuant to sections 501 and 502 of 18
the Housing and Urban Development Act 19
of 1970 (12 U.S.C. 1701z–1, 1701z–2); 20
(iv) the Self-Help and Assisted Home-21
ownership Opportunity program authorized 22
under section 11 of the Housing Oppor-23
tunity Program Extension Act of 1996 (42 24
U.S.C. 12805 note); 25
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(v) a rural housing program under 1
title V of the Housing Act of 1949 (42 2
U.S.C. 1471 et seq.); or 3
(vi) the Neighborhood Reinvestment 4
Corporation established under the Neigh-5
borhood Reinvestment Corporation Act (42 6
U.S.C. 8101 et seq.); 7
(B) has coordinated, performed, or other-8
wise been engaged in weatherization, lead reme-9
diation, or home-repair work for not less than 10
2 years; 11
(C) has been certified by the Environ-12
mental Protection Agency, or by a State au-13
thorized by the Environmental Protection Agen-14
cy to administer a certification program, as— 15
(i) eligible to carry out activities 16
under the lead renovation, repair and 17
painting program; or 18
(ii) a Home Certification Organization 19
under the Energy Star program estab-20
lished by section 324A of the Energy Pol-21
icy and Conservation Act (42 U.S.C. 22
6294a) or the WaterSense program under 23
section 324B of that Act (42 U.S.C. 24
6294b), or recognized or otherwise ap-25
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proved by the Environmental Protection 1
Agency as a Home Certification Organiza-2
tion under either of those programs; or 3
(D) is a community development financial 4
institution, as defined in section 103 of the 5
Community Development Banking and Finan-6
cial Institutions Act of 1994 (12 U.S.C. 4702). 7
(10) S ECRETARY.—The term ‘‘Secretary’’ 8
means the Secretary of Housing and Urban Develop-9
ment. 10
(11) S PECIFIED PROGRAM .—For purposes of 11
paragraph (3)(A)(ii), the term ‘‘specified program’’ 12 means any of the following: 13
(A) The Medicaid program established 14
under title XIX of the Social Security Act (42 15
U.S.C. 1396 et seq.). 16
(B) The State Children’s Health Insurance 17
Program established under title XXI of the So-18
cial Security Act (42 U.S.C. 1397aa et seq.). 19
(C) The supplemental security income ben-20
efits program established under title XVI of the 21
Social Security Act (42 U.S.C. 1381 et seq.). 22
(D) The supplemental nutrition assistance 23
program established under the Food and Nutri-24
tion Act of 2008 (7 U.S.C. 2011 et seq.). 25
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(E) The temporary assistance for needy 1
families program established under part A of 2
title IV of the Social Security Act (42 U.S.C. 3
601 et seq.). 4
(12) STATE.—The term ‘‘State’’ means— 5
(A) each State of the United States; 6
(B) the District of Columbia; 7
(C) the Commonwealth of Puerto Rico; 8
(D) any territory or possession of the 9
United States; and 10
(E) an Indian tribe. 11
(13) T RIBALLY DESIGNATED HOUSING ENTI -12
TY.—The term ‘‘tribally designated housing entity’’ 13
has the meaning given the term in section 4 of the 14
Native American Housing Assistance and Self-De-15
termination Act of 1996 (25 U.S.C. 4103). 16
(14) W HOLE-HOME REPAIRS .—The term 17
‘‘whole-home repairs’’ means modifications, repairs, 18 or updates to homeowner or renter-occupied units to 19
address— 20
(A) physical and sensory accessibility for 21
individuals with disabilities and older adults, 22
such as bathroom and kitchen modifications, in-23
stallation of grab bars and handrails, guards 24
and guardrails, lifting devices, ramp additions 25
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or repairs, sidewalk addition or repair, or door-1
way or hallway widening; 2
(B) habitability and safety concerns, such 3
as repairs needed to ensure residential units are 4
fit for human habitation and free from defective 5
conditions or health and safety hazards; or 6
(C) energy and water efficiency, resilience, 7
and weatherization. 8
(b) PILOT PROGRAM.— 9
(1) E STABLISHMENT.—Not later than 1 year 10
after the date of enactment of this Act, the Sec-11
retary shall establish a pilot program to provide 12
grants to implementing organizations to administer 13
a whole-home repairs program for eligible home-14
owners and eligible landlords. 15
(2) U SE OF FUNDS .—An implementing organi-16
zation that receives a grant under this subsection— 17
(A) shall provide grants to eligible home-18
owners to implement whole-home repairs not 19
covered by other Federal home repair programs 20
and up to a maximum amount per unit, which 21
maximum amount should— 22
(i) reflect local construction costs and 23
the level of repairs needed in each unit; 24
and 25
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(ii) be calculated and approved by the 1
Secretary; 2
(B) shall provide loans, which may be for-3
givable, to eligible landlords to implement 4
whole-home repairs not covered by other Fed-5
eral home repair programs for individual afford-6
able units, public and common use areas within 7
the property, and common structural elements 8
up to a maximum amount per unit, area, or ele-9
ment, as applicable, which maximum amount 10
should— 11
(i) reflect local construction costs; and 12
(ii) be calculated and approved by the 13
Secretary; 14
(C) shall evaluate, or provide assistance to 15
eligible homeowners and eligible landlords to 16
evaluate, whole-home repair program funds pro-17
vided under this subsection with Federal, State, 18
and local home repair programs to provide the 19
greatest benefit to the greatest number of eligi-20
ble landlords and eligible homeowners and avoid 21
duplication of benefits and redundancies; 22
(D) shall ensure that— 23
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(i) all repairs funded or facilitated 1
through an award under this subsection 2
have been completed; 3
(ii) if repairs are not completed and 4
the plan for whole-home repairs is not up-5
dated to reflect the new scope of work, 6
that the loan or grant is repaid on a pro-7
rated basis based on completed work; and 8
(iii) any unused grant or loan balance 9
is returned to the implementing organiza-10
tion, and is reused by the implementing or-11
ganization for a new whole-home repair 12
grant or loan under this subsection; 13
(E) may use not more than 5 percent of 14
the awarded funds to carry out related func-15
tions, including workforce training for home re-16
pair professions, which shall be related to ef-17
forts to increase the number of home repairs 18
performed and approved by the Secretary; 19
(F) may use not more than 10 percent of 20
the awarded funds for administrative expenses; 21
and 22
(G) shall comply with Federal accessibility 23
requirements and standards under applicable 24
Federal fair housing and civil rights laws and 25
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regulations, including section 504 of the Reha-1
bilitation Act of 1973 (29 U.S.C. 794). 2
(3) L OAN AGREEMENT .—In a loan agreement 3
with an eligible landlord under this subsection, an 4
implementing organization shall include provisions 5
establishing that the eligible landlord shall, for each 6 eligible rental property for which a loan is used to 7
fund repairs under this subsection— 8
(A) comply with Federal accessibility re-9
quirements and standards under applicable 10
Federal fair housing and civil rights laws and 11
regulations, including section 504 of the Reha-12
bilitation Act of 1973 (29 U.S.C. 794); and 13
(B)(i) if the landlord is renting the as-14
sisted units available in the eligible rental prop-15
erty to tenants receiving tenant-based rental as-16
sistance under section 8(o) of the United States 17
Housing Act of 1937 (42 U.S.C. 1437f(o)), 18
under another tenant-based rental assistance 19
program administered by the Secretary or the 20
Secretary of Agriculture, or under a tenant- 21
based rental subsidy provided by a State or 22
local government, comply with the program re-23
quirements under the relevant tenant-based 24
rental assistance program; or 25
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(ii) if the eligible landlord is not renting to 1
tenants receiving rental-based assistance as de-2
scribed in clause (i)— 3
(I)(aa) offer to extend the lease of 4
current tenants on current terms, other 5
than the terms described in subclause (iv) 6
for not less than 3 years beginning after 7
the completion of the repairs, unless the 8
lease is terminated due to failure to pay 9
rent, performance of an illegal act within 10
the rental unit, or a violation of an obliga-11
tion of tenancy that the tenants failed to 12
correct after notice; and 13
(bb) if the tenant of an assisted unit 14
moves out of the assisted unit at any point 15
in the 3-year period following the loan 16
agreement, maintain the unit as an afford-17
able unit for the remainder of the 3-year 18
period; 19
(II) provide documentation verifying 20
that the property, upon completion of ap-21
proved renovations, has met all applicable 22
State and local housing and building codes; 23
(III) attest that the landlord has no 24
known serious violations of renter protec-25
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tions that have resulted in fines, penalties, 1
or judgments during the preceding 10 2
years; and 3
(IV) cap annual rent increases for 4
each assisted unit at 5 percent of base rent 5
or inflation, whichever is lower, for not less 6
than 3 years beginning after the comple-7
tion of the repairs. 8
(4) APPLICATION.— 9
(A) I N GENERAL .—An implementing orga-10
nization desiring an award under this sub-11
section shall submit to the Secretary an applica-12
tion that includes— 13
(i) the geographic scope of the whole- 14
home repairs program to be administered 15
by the implementing organization, includ-16
ing the plan to address need in any rural, 17
suburban, or urban area within a jurisdic-18
tion; 19
(ii) a plan for selecting subrecipients, 20
if applicable; 21
(iii) how the implementing organiza-22
tion plans to execute the coordination of 23
Federal, State, and local home repair pro-24
grams, including programs administered by 25
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the Department of Energy or the Depart-1
ment of Agriculture, to increase efficiency 2
and reduce redundancy; 3
(iv) available data on the need for af-4
fordable and quality housing within the ge-5
ographic scope of the whole-home repairs 6
program, and any plans to preserve afford-7
ability through the term of the award; 8
(v) how the implementing organization 9
plans to process and verify applications for 10
grants from eligible homeowners and appli-11
cations for loans from eligible landlords; 12
and 13
(vi) such other information as the 14
Secretary requires to determine the ability 15
of an applicant to carry out a program 16
under this subsection. 17
(B) C ONSIDERATIONS.—In making awards 18
under this subsection, the Secretary shall— 19
(i) with respect to applications sub-20
mitted by States other than the District of 21
Columbia and the territories of the United 22
States, prioritize those applications with a 23
demonstrated plan to— 24
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(I) make a good faith effort to 1
implement the pilot program in every 2
jurisdiction; and 3
(II) provide non-metropolitan 4
areas, or subrecipients serving non- 5
metropolitan areas if applicable, with 6
a share of total funds commensurate 7
to their population; 8
(ii) aim to select applicants so that 9
the awardees collectively span diverse geog-10
raphies, with an intent to understand the 11
impact of the pilot program under this 12
subsection in urban, suburban, rural, and 13
Tribal settings; and 14
(iii) not disqualify implementing orga-15
nizations that were awarded grants under 16
the pilot program in prior application cy-17
cles. 18
(5) P ROGRAM INFORMATION .—The Secretary 19
shall make available to grant recipients under this 20
subsection information regarding existing Federal 21
programs for which grant recipients may coordinate 22
or provide assistance in coordinating applications for 23 those programs in accordance with paragraph 24
(2)(C). 25
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(6) GRANT NUMBER .—In each year in which an 1
award is made under this subsection, the Secretary 2
shall award assistance to— 3
(A) not less than 2, and not more than 10, 4
implementing organizations, as application 5
numbers and funding permit; and 6
(B) not more than 1 implementing organi-7
zation in any State. 8
(7) L OANS THAT ARE NOT FORGIVEN .—If a 9
loan made by an implementing organization under 10
paragraph (2)(B) is not forgiven, the loan repay-11
ment funds shall be reused by the implementing or-12
ganization for a new whole-home repair grant or 13
loan under this subsection. 14
(8) S UPPLEMENT, NOT SUPPLANT .—Amounts 15
awarded under this subsection to implementing orga-16
nizations shall supplement, not supplant, other Fed-17
eral, State, and local funds made available to those 18 entities. 19
(9) S TREAMLINING PROGRAM DELIVERY AND 20
ENSURING EFFICIENCY .—To the extent possible, in 21
carrying out the pilot program under this subsection, 22 the Secretary shall— 23
(A) endeavor to improve efficiency of serv-24
ice delivery, as well as the experience of and im-25
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pact on the taxpayer, by encouraging pro-1
grammatic collaboration and information shar-2
ing across Federal, State, and local programs 3
for home repair or improvement, including pro-4
grams administered by the Department of the 5
Agriculture; and 6
(B) enhance collaboration and cross-agency 7
streamlining efforts that reduce the burdens of 8
multiple income verification processes and ap-9
plications on the eligible homeowner, the eligible 10
landlord, the implementing organization, and 11
the Federal Government, including by estab-12
lishing assistance application procedures for in-13
come eligibility under this subsection that rec-14
ognize income eligibility determinations for as-15
sistance using any of the criteria under sub-16
section (a)(3)(A) that have been used for assist-17
ance applications during the 1-year period pre-18
ceding the date on which an eligible homeowner 19
or eligible landlord applies for assistance under 20
this subsection. 21
(10) REPORTING REQUIREMENTS .— 22
(A) A NNUAL REPORT .—An implementing 23
organization that receives a grant under this 24
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subsection shall submit to the Secretary an an-1
nual report on initial funding that includes— 2
(i) the number of units served, includ-3
ing reporting on both homeownership and 4
rental units, as well as accessible units; 5
(ii) the average cost per unit for 6
modifications or repairs and the nature of 7
those modifications or repairs, including 8
reporting on accessibility and both home-9
ownership and rental units; 10
(iii) the number of applications re-11
ceived, served, denied, or not completed, 12
disaggregated by geographic area; 13
(iv) the aggregated demographic data 14
of grant recipients, which may include data 15
on income range, urban, suburban, and 16
rural residency, age, and racial and ethnic 17
identity; 18
(v) the aggregated demographic data 19
of loan recipients, which may include data 20
on income range, urban, suburban, and 21
rural residency, age, and racial and ethnic 22
identity; 23
(vi) an affirmation that the implemen-24
tation organization has complied with the 25
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applicable regulations, including compli-1
ance with Federal accessibility require-2
ments; 3
(vii) in the first year of receiving a 4
grant, and as certified in subsequent re-5
ports, a comprehensive plan to prevent 6
waste, fraud, and abuse in the administra-7
tion of the pilot program, which shall in-8
clude, at a minimum— 9
(I) a policy enacted and enforced 10
by the implementing organization to 11
monitor ongoing expenditures under 12
this subsection and ensure compliance 13
with applicable regulations; 14
(II) a policy enacted and en-15
forced by the implementing organiza-16
tion to detect and deter fraudulent ac-17
tivity, including fraud occurring in in-18
dividual projects and patterns of 19
fraud by parties involved in the ex-20
penditure of funds under this sub-21
section; 22
(III) a statement setting forth 23
any violations detected by the imple-24
menting organization during the pre-25
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vious calendar year, including details 1
about steps taken to achieve compli-2
ance and any remedial measures; and 3
(IV) a certification by the chief 4
executive or most senior compliance 5
officer of the organization that the or-6
ganization maintains sufficient staff 7
and resources to effectively carry out 8
the above-mentioned policies; and 9
(viii) such other information as the 10
Secretary may require. 11
(B) R EPORTING REQUIREMENT ALIGN -12
MENT.—To limit the costs of implementing the 13
pilot program under this subsection, the Sec-14
retary shall endeavor, to the extent possible, to 15
structure reporting requirements such that they 16
align with the data reporting requirements in 17
place for funding streams that implementing or-18
ganizations are likely to use in partnership with 19
funding from this subsection, including the re-20
porting requirements under— 21
(i) the Community Development Block 22
Grant program under title I of the Hous-23
ing and Community Development Act of 24
1974 (42 U.S.C. 5301 et seq.); 25
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(ii) the HOME Investment Partner-1
ships program under subtitle A of title II 2
of the Cranston-Gonzalez National Afford-3
able Housing Act (42 U.S.C. 12741 et 4
seq.); 5
(iii) the Weatherization Assistance 6
Program for low-income persons estab-7
lished under part A of title IV of the En-8
ergy Conservation and Production Act (42 9
U.S.C. 6861 et seq.); and 10
(iv) the Native American Housing As-11
sistance and Self-Determination Act of 12
1996 (25 U.S.C. 4101 et seq.). 13
(C) P ILOT PROGRAM PERIOD REPORTS .— 14
Not less frequently than twice during the period 15
in which the pilot program established under 16
this subsection operates, the Office of Inspector 17
General of the Department of Housing and 18
Urban Development shall complete an assess-19
ment of the implementation of measures to en-20
sure the fair and legitimate use of the pilot pro-21
gram. 22
(D) S UMMARY TO CONGRESS .—The Sec-23
retary shall submit to the Committee on Bank-24
ing, Housing, and Urban Affairs of the Senate 25
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and the Committee on Financial Services of the 1
House of Representatives an annual report pro-2
viding a summary of the data provided under 3
subparagraphs (A) and (C) during the 1-year 4
period preceding the report and all data pre-5
viously provided under those subparagraphs. 6
(11) FUNDING.—The Secretary— 7
(A) is authorized to use up to $30,000,000 8
of funds made available as provided in appro-9
priations Acts for programs administered by the 10
Office of Lead Hazard Control and Healthy 11
Homes to carry out the pilot program under 12
this subsection; and 13
(B) shall submit to the Committee on Ap-14
propriations and the Committee on Banking, 15
Housing, and Urban Affairs of the Senate and 16
the Committee on Appropriations and the Com-17
mittee on Financial Services of the House of 18
Representatives a report on the appropriations 19
accounts from which the Secretary will derive 20
the funding under subparagraph (A). 21
(12) E NVIRONMENTAL REVIEW .—A grant 22
under this subsection shall be— 23
(A) treated as assistance for a special 24
project for purposes of section 305(c) of the 25
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Multifamily Housing Property Disposition Re-1
form Act of 1994 (42 U.S.C. 3547); and 2
(B) subject to the regulations promulgated 3
by the Secretary to implement such section. 4
(13) T ERMINATION.—The pilot program estab-5
lished under this subsection shall terminate on Octo-6
ber 1, 2031. 7
SEC. 205. COMMUNITY INVESTMENT AND PROSPERITY ACT. 8
(a) REVISED STATUTES.—The paragraph designated 9
as the ‘‘Eleventh’’ of section 5136 of the Revised Statutes 10 of the United States (12 U.S.C. 24) is amended, in the 11 fifth sentence, by striking ‘‘15’’ each place the term ap-12 pears and inserting ‘‘20’’. 13
(b) F EDERAL RESERVE ACT.—Section 9(23) of the 14
Federal Reserve Act (12 U.S.C. 338a) is amended, in the 15 fifth sentence, by striking ‘‘15’’ each place the term ap-16 pears and inserting ‘‘20’’. 17
SEC. 206. BUILD NOW ACT. 18
(a) DEFINITIONS.—In this section: 19
(1) C OVERED RECIPIENT .—The term ‘‘covered 20
recipient’’ means a metropolitan city or urban coun-21
ty, as those terms are defined in section 102 of the 22 Housing and Community Development Act of 1974 23
(42 U.S.C. 5302), that receives funds under section 24
106. 25
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(2) C URRENT ANNUAL GROWTH RATE .—The 1
term ‘‘current annual growth rate’’, with respect to 2
an eligible recipient and a fiscal year, means the av-3 erage annual percentage increase in the number of 4
housing units in the jurisdiction of the eligible re-5
cipient, as calculated by the Secretary, during the 6
period— 7
(A) beginning with the third quarter of the 8
sixth preceding fiscal year; and 9
(B) ending with the third quarter of the 10
preceding fiscal year. 11
(3) E LIGIBLE RECIPIENT .—The term ‘‘eligible 12
recipient’’ means any covered recipient unless— 13
(A)(i) the median Small Area Fair Market 14
Rent in the jurisdiction of the covered recipient 15
is at or below the 60th percentile of median 16
Small Area Fair Market Rents in the jurisdic-17
tions of all covered recipients; and 18
(ii) the median home value in the jurisdic-19
tion of the covered recipient is below the me-20
dian home value for the United States; 21
(B) the annual natural rental vacancy rate 22
in the jurisdiction of the covered recipient is 23
greater than the national annual natural rental 24
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vacancy rate for the most recent year available, 1
as published by the Bureau of the Census; 2
(C) during the 1-year period preceding the 3
date on which the Secretary allocates funds 4
under section 106, the jurisdiction of the cov-5
ered recipient has been the subject of a major 6
disaster or emergency declaration under section 7
401 or 501, respectively, of the Robert T. Staf-8
ford Disaster Relief and Emergency Assistance 9
Act (42 U.S.C. 5170, 5191); or 10
(D) the covered recipient lacks the legal 11
authority to enact or update zoning and permit-12
ting ordinances. 13
(4) E XTREMELY HIGH -GROWTH RECIPIENT .— 14
The term ‘‘extremely high-growth recipient’’ means 15
an eligible recipient for which the current annual 16
growth rate is at or above 4 percent. 17
(5) H OUSING GROWTH IMPROVEMENT RATE .— 18
The term ‘‘housing growth improvement rate’’, with 19
respect to an eligible recipient and a fiscal year, 20
means the quotient of— 21
(A) the current annual growth rate of the 22
eligible recipient; and 23
(B) the prior annual growth rate of the eli-24
gible recipient. 25
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(6) P RIOR ANNUAL GROWTH RATE .—The term 1
‘‘prior annual growth rate’’, with respect to an eligi-2 ble recipient and a fiscal year, means the average 3
annual percentage increase in the number of housing 4
units in the jurisdiction of the eligible recipient, as 5 calculated by the Secretary, during the period— 6
(A) beginning with the third quarter of the 7
11th preceding fiscal year; and 8
(B) ending with the third quarter of the 9
sixth preceding fiscal year. 10
(7) S ECRETARY.—The term ‘‘Secretary’’ means 11
the Secretary of Housing and Urban Development. 12
(8) S ECTION 106 .—The term ‘‘section 106’’ 13
means section 106 of the Housing and Community 14
Development Act of 1974 (42 U.S.C. 5306). 15
(b) A DJUSTMENTS TO COMMUNITY DEVELOPMENT 16
BLOCK GRANT ALLOCATIONS.— 17
(1) I N GENERAL .—In allocating amounts to an 18
eligible recipient under section 106 for a fiscal year, 19 the Secretary shall adjust the allocation based on 20
the housing growth improvement rate of the eligible 21
recipient, in accordance with paragraph (2) of this 22
subsection. 23
(2) ADJUSTMENTS.— 24
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(A) H OUSING GROWTH IMPROVEMENT 1
RATE AT OR ABOVE MEDIAN ; EXTREMELY 2
HIGH-GROWTH RECIPIENTS .— 3
(i) IN GENERAL .—If, with respect to a 4
fiscal year for which the allocation under 5
section 106 is being determined, the hous-6
ing growth improvement rate for an eligi-7
ble recipient is at or above the median 8
housing growth improvement rate for all 9
eligible recipients other than extremely 10
high-growth recipients, or if an eligible re-11
cipient is an extremely high-growth recipi-12
ent, the Secretary shall allocate to the eli-13
gible recipient for that fiscal year, in addi-14
tion to the amount that would otherwise be 15
allocated to the eligible recipient under sec-16
tion 106, a bonus amount, as determined 17
under clause (ii) of this subparagraph. 18
(ii) B ONUS AMOUNT .—For purposes 19
of clause (i), the bonus amount for an eli-20
gible recipient for a fiscal year shall be 21
equal to the product of— 22
(I) the aggregate amount by 23
which allocations to eligible recipients 24
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are decreased under subparagraph (B) 1
for that fiscal year; and 2
(II) the quotient of— 3
(aa) the number of housing 4
units, as of the third quarter of 5
the preceding fiscal year, in the 6
jurisdiction of the eligible recipi-7
ent, as calculated by the Sec-8
retary; and 9
(bb) the number of housing 10
units, as of the third quarter of 11
the preceding fiscal year, in the 12
jurisdictions of all eligible recipi-13
ents that receive a bonus amount 14
under this paragraph, as cal-15
culated by the Secretary. 16
(B) H OUSING GROWTH IMPROVEMENT 17
RATE BELOW MEDIAN .—If, with respect to a 18
fiscal year for which the allocation under sec-19
tion 106 is being determined, the housing 20
growth improvement rate for an eligible recipi-21
ent is below the median housing growth im-22
provement rate for all eligible recipients other 23
than high-growth outliers, the Secretary shall 24
decrease the amount that would otherwise be al-25
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located to the eligible recipient under section 1
106 for that fiscal year by 10 percent. 2
(c) CALCULATION OF HOUSING UNITS.— 3
(1) H OUSING AND URBAN DEVELOPMENT RE -4
QUIREMENTS.—In calculating the number of housing 5
units in the jurisdiction of an eligible recipient under 6 any provision of this section, the Secretary shall— 7
(A) use the Current Address Count Listing 8
Files and other data products, as needed, of the 9
Bureau of the Census tabulated from the Mas-10
ter Address File; and 11
(B) make calculations at the block level, 12
using boundaries that reflect the most current 13
boundaries. 14
(2) C ENSUS BUREAU AND POSTAL SERVICE RE -15
QUIREMENTS.—The Bureau of the Census and the 16
United States Postal Service shall provide any rel-17
evant data to the Secretary upon request to assist 18
the Secretary in making a calculation described in 19
paragraph (1). 20
(3) ADJUSTMENT OF CALCULATION PERIODS .— 21
The Secretary may adjust the calculation periods 22
under subparagraphs (A) and (B) of subsection 23
(a)(2), subparagraphs (A) and (B) of subsection 24
(a)(6), and items (aa) and (bb) of subsection 25
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(b)(2)(A)(ii)(II) by not more than 2 months to 1
achieve alignment with the data provided by the Bu-2
reau of the Census. 3
(d) A NNUAL REPORT ON HOUSING GROWTH IM-4
PROVEMENT RATE.—Before allocating funds under sec-5
tion 106 for a fiscal year, the Secretary shall publish a 6 report that— 7
(1) includes the housing growth improvement 8
rate for each eligible recipient; and 9
(2) lists, for the most recent fiscal year for 10
which allocations were made under section 106— 11
(A) the eligible recipients that received a 12
bonus amount under subsection (b)(2)(A); and 13
(B) the eligible recipients for which the al-14
location under section 106 was decreased under 15
subsection (b)(2)(B) of this section. 16
(e) NOTIFICATION; IMPLEMENTATION DATES.— 17
(1) NOTIFICATION.— 18
(A) I N GENERAL .—Not later than 60 days 19
after the date of enactment of this Act, the Sec-20
retary shall notify each eligible recipient of the 21
recipient’s housing growth improvement rate 22
and whether that housing growth improvement 23
rate is above, at, or below the median housing 24
growth improvement rate for all eligible recipi-25
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ents other than extremely high-growth recipi-1
ents. 2
(B) G UIDANCE.—As part of the notifica-3
tion under subparagraph (A), the Secretary 4
shall share guidance, including resources devel-5
oped by the Department of Housing and Urban 6
Development, on best practices and rec-7
ommendations on policies to reduce regulatory 8
barriers to housing and increase housing sup-9
ply. 10
(2) I MPLEMENTATION DATES .—Subsection (b) 11
shall take effect beginning with the second full fiscal 12 year after the date of enactment of this Act and re-13
main in effect through fiscal year 2042. 14
SEC. 207. BETTER USE OF INTERGOVERNMENTAL AND 15
LOCAL DEVELOPMENT (BUILD) HOUSING 16
ACT. 17
(a) D ESIGNATION OF ENVIRONMENTAL REVIEW 18
PROCEDURE.—The Department of Housing and Urban 19
Development Act (42 U.S.C. 3531 et seq.) is amended by 20 inserting after section 12 (42 U.S.C. 3537a) the following: 21 ‘‘SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PRO-22
CEDURE. 23
‘‘(a) IN GENERAL.—Except as provided in subsection 24
(b), the Secretary may, for purposes of environmental re-25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 58 •S 2651 RS
view, decision making, and action pursuant to the Na-1
tional Environmental Policy Act of 1969 (42 U.S.C. 4321 2 et seq.), and other provisions of law that further the pur-3 poses of such Act, designate the treatment of assistance 4 administered by the Secretary as funds for a special 5
project for purposes of section 305(c) of the Multifamily 6 Housing Property Disposition Reform Act of 1994 (42 7
U.S.C. 3547). 8
‘‘(b) EXCEPTION.—The designation described in sub-9
section (a) shall not apply to assistance for which a proce-10 dure for carrying out the responsibilities of the Secretary 11 under the National Environmental Policy Act of 1969 (42 12 U.S.C. 4321 et seq.), and other provisions of law that fur-13 ther the purposes of such Act, is otherwise specified in 14 law.’’. 15
(b) T RIBAL ASSUMPTION OF ENVIRONMENTAL RE-16
VIEW OBLIGATIONS.—Section 305(c) of the Multifamily 17
Housing Property Disposition Reform Act of 1994 (42 18
U.S.C. 3547) is amended— 19
(1) by striking ‘‘State or unit of general local 20
government’’ each place it appears and inserting 21
‘‘State, Indian tribe, or unit of general local govern-22 ment’’; 23
(2) in paragraph (1)(C), in the heading, by 24
striking ‘‘S TATE OR UNIT OF GENERAL LOCAL GOV -25
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ERNMENT’’ and inserting ‘‘S TATE, INDIAN TRIBE , OR 1
UNIT OF GENERAL LOCAL GOVERNMENT ’’; and 2
(3) by adding at the end the following: 3
‘‘(5) D EFINITION OF INDIAN TRIBE .—For pur-4
poses of this subsection, the term ‘Indian tribe’ 5
means a federally recognized tribe, as defined in sec-6 tion 4(13)(B) of the Native American Housing As-7
sistance and Self-Determination Act of 1996 (25 8
U.S.C. 4103(13)(B)).’’. 9
SEC. 208. UNLOCKING HOUSING SUPPLY THROUGH 10
STREAMLINED AND MODERNIZED REVIEWS 11
ACT. 12
(a) DEFINITIONS.—In this section: 13
(1) INFILL PROJECT .—The term ‘‘infill project’’ 14
means a project that— 15
(A) occurs within the geographic limits of 16
a municipality; 17
(B) is adequately served by existing utili-18
ties and public services as required under appli-19
cable law; 20
(C) is located on a site of previously dis-21
turbed land of not more than 5 acres and sub-22
stantially surrounded by residential or commer-23
cial development; 24
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(D) will repurpose a vacant or underuti-1
lized parcel of land, or a dilapidated or aban-2
doned structure; and 3
(E) will serve a residential or commercial 4
purpose. 5
(2) S ECRETARY.—The term ‘‘Secretary’’ means 6
the Secretary of Housing and Urban Development. 7
(b) NEPA S TREAMLINING FOR HUD H OUSING-RE-8
LATED ACTIVITIES.— 9
(1) I N GENERAL .—The Secretary shall, in ac-10
cordance with section 553 of title 5, United States 11
Code, and section 103 of the National Environ-12
mental Policy Act of 1969 (42 U.S.C. 4333), expand 13
and reclassify housing-related activities under the 14
necessary administrative regulations as follows: 15
(A) The following housing-related activities 16
shall be subject to regulations equivalent or 17
substantially similar to the regulations entitled 18
‘‘exempt activities’’ as set forth in section 58.34 19
of title 24, Code of Federal Regulations, as in 20
effect on January 1, 2025: 21
(i) Tenant-based rental assistance. 22
(ii) Supportive services, including 23
health care, housing services, permanent 24
housing placement, day care, nutritional 25
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services, short-term payments for rent, 1
mortgage, or utility costs, and assistance 2
in gaining access to Federal Government 3
and State and local government benefits 4
and services. 5
(iii) Operating costs, including main-6
tenance, security, operation, utilities, fur-7
nishings, equipment, supplies, staff train-8
ing, and recruitment and other incidental 9
costs. 10
(iv) Economic development activities, 11
including equipment purchases, inventory 12
financing, interest subsidies, operating ex-13
penses, and similar costs not associated 14
with construction or expansion of existing 15
operations. 16
(v) Activities to assist homebuyers to 17
purchase existing dwelling units or dwell-18
ing units under construction, including 19
closing costs and down payment assistance, 20
interest rate buydowns, and similar activi-21
ties that result in the transfer of title. 22
(vi) Affordable housing pre-develop-23
ment costs related to obtaining site op-24
tions, project financing, administrative 25
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costs and fees for loan commitment, zoning 1
approvals, and other related activities that 2
do not have a physical impact. 3
(vii) Approval of supplemental assist-4
ance, including insurance or guarantee, to 5
a project previously approved by the Sec-6
retary. 7
(viii) Emergency homeowner or renter 8
assistance for HVAC, hot water heaters, 9
and other necessary uses of existing utili-10
ties required under applicable law. 11
(B) The following housing-related activities 12
shall be subject to regulations equivalent or 13
substantially similar to the regulations entitled, 14
(i) ‘‘categorical exclusions not subject to section 15

58.5’’ and (ii) ‘‘categorical exclusions not sub-16
ject to the Federal laws and authorities cited in 17
sections 50.4’’ in section 58.35(b) and section 18

50.19, respectively of title 24, Code of Federal 19
Regulations, as in effect on January 1, 2025, if 20
such activities do not materially alter environ-21
mental conditions and do not materially exceed 22
the original scope of the project: 23
(i) Acquisition, repair, improvement, 24
reconstruction, or rehabilitation of public 25
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facilities and improvements (other than 1
buildings) if the facilities and improve-2
ments are in place and will be retained in 3
the same use without change in size or ca-4
pacity of more than 20 percent, including 5
replacement of water or sewer lines, recon-6
struction of curbs and sidewalks, and re-7
paving of streets. 8
(ii) Rehabilitation of 1-to-4 unit resi-9
dential buildings, and existing housing-re-10
lated infrastructure, such as repairs or re-11
habilitation of existing wells, septics, or 12
utility lines that connect to that housing. 13
(iii) New construction, development, 14
demolition, acquisition, or disposition on 15
up to 4 scattered site existing dwelling 16
units where there is a maximum of 4 units 17
on any 1 site. 18
(iv) Acquisitions (including leasing) or 19
disposition of, or equity loans on an exist-20
ing structure, or acquisition (including 21
leasing) of vacant land if the structure or 22
land acquired, financed, or disposed of will 23
be retained for the same use. 24
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(C) The following housing-related activities 1
shall be subject to regulations equivalent or 2
substantially similar to the regulations entitled, 3
(i) ‘‘categorical exclusions subject to section 4

58.5’’ and (ii) ‘‘categorical exclusions subject to 5
the Federal laws and authorities cited in sec-6
tions 50.4’’ in section 58.35(a) and section 7

50.20, respectively, of title 24, Code of Federal 8
Regulations, as in effect on January 1, 2025, if 9
such activities do not materially alter environ-10
mental conditions and do not materially exceed 11
the original scope of the project: 12
(i) Acquisitions of open space or resi-13
dential property, where such property will 14
be retained for the same use or will be con-15
verted to open space to help residents relo-16
cate out of an area designated as a high- 17
risk area by the Secretary. 18
(ii) Conversion of existing office build-19
ings into residential development, subject 20
to— 21
(I) a maximum number of units 22
to be determined by the Secretary; 23
and 24
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(II) a limitation on the change in 1
building size of not more than 20 per-2
cent. 3
(iii) New construction, development, 4
demolition, acquisition, or disposition on 5 5
to 15 dwelling units where there is a max-6
imum of fifteen units on any 1 site. The 7
units can be 15 1-unit buildings or 1 15- 8
unit building, or any combination in be-9
tween. 10
(iv) New construction, development, 11
demolition, acquisition, or disposition on 12
15 or more housing units developed on 13
scattered sites when there are not more 14
than 15 housing units on any 1 site, and 15
the sites are more than a set number of 16
feet apart as determined by the Secretary. 17
(v) Rehabilitation of buildings and im-18
provements in the case of a building for 19
residential use with 5 to 15 units, if the 20
density is not increased beyond 15 units 21
and the land use is not changed. 22
(vi) Infill projects consisting of new 23
construction, rehabilitation, or development 24
of residential housing units. 25
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(vii) The voluntary acquisition of 1
properties— 2
(I) located in a— 3
(aa) floodway; 4
(bb) floodplain; or 5
(cc) other area, clearly delin-6
eated by the grantee; and 7
(II) that have been impacted by a 8
predictable environmental threat to 9
the safety and well-being of program 10
beneficiaries caused or exacerbated by 11
a federally declared disaster. 12
(c) R EPORT.—The Secretary shall submit to the 13
Committee on Banking, Housing, and Urban Affairs of 14
the Senate and the Committee on Financial Services of 15 the House of Representatives an annual report during the 16 5-year period beginning on the date that is 2 years after 17 the date of enactment of this Act that provides a summary 18 of findings of reductions in review times and administra-19 tive cost reduction, with a particular focus on the afford-20 able housing sector, as a result of the actions set forth 21 in this section, and any recommendations of the Secretary 22 for future congressional action with respect to revising 23 categorical exclusions or exemptions under title 24, Code 24 of Federal Regulations. 25
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SEC. 209. INNOVATION FUND. 1
(a) DEFINITIONS.—In this section: 2
(1) A TTAINABLE HOUSING .—The term ‘‘attain-3
able housing’’ means housing that— 4
(A) serves— 5
(i) a majority of households with in-6
come not greater than 80 percent of area 7
median income; and 8
(ii) households with income not great-9
er than 100 percent of area median in-10
come; or 11
(B) serves— 12
(i) a majority of households with in-13
come not greater than 60 percent of area 14
median income; and 15
(ii) households with income not great-16
er than 120 percent of area median in-17
come. 18
(2) ELIGIBLE ENTITY .—The term ‘‘eligible enti-19
ty’’ means— 20
(A) a metropolitan city or urban county, as 21
those terms are defined in section 102 of the 22
Housing and Community Development Act of 23
1974 (42 U.S.C. 5302), that has demonstrated 24
an objective improvement in housing supply 25
growth, as determined by the Secretary, whose 26
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methodology for determining such growth is 1
published in the Federal Register to allow for 2
public comment not less than 90 days before 3
date on which the notice of funding opportunity 4
is made available; or 5
(B) a unit of general local government or 6
Indian tribe, as those terms are defined in sec-7
tion 102 of the Housing and Community Devel-8
opment Act of 1974 (42 U.S.C. 5302), that has 9
demonstrated an objective improvement in 10
housing supply growth, as determined by the 11
Secretary, whose methodology for determining 12
such improvement is published in the Federal 13
Register to allow for public comment not less 14
than 90 days before the date on which the no-15
tice of funding opportunity is made available. 16
(3) S ECRETARY.—The term ‘‘Secretary’’ means 17
the Secretary of Housing and Urban Development. 18
(b) ESTABLISHMENT OF A GRANT PROGRAM.— 19
(1) E STABLISHMENT.—Not later than 1 year 20
after the date of enactment of this Act, the Sec-21
retary shall establish a program to award grants on 22
a competitive basis to eligible entities that have in-23 creased their local housing supply. 24
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(2) L IST OF ELIGIBLE ENTITIES .—The Sec-1
retary shall make a list of eligible entities publicly 2 available on the website of the Department of Hous-3
ing and Urban Development. 4
(3) ELIGIBLE PURPOSES .—An eligible entity re-5
ceiving a grant under this section may use funds 6
to— 7
(A) carry out any of the activities de-8
scribed in section 105 of the Housing and Com-9
munity Development Act of 1974 (42 U.S.C. 10
5305); 11
(B) carry out any of the activities per-12
mitted under the Local and Regional Project 13
Assistance Program established under section 14
6702 of title 49, United States Code; 15
(C) serve as matching funds under a State 16
revolving fund program related to a clean water 17
or drinking water program administered by the 18
Environmental Protection Agency in which the 19
eligible entity is the grantee under that pro-20
gram, unless otherwise determined by the Sec-21
retary; and 22
(D) carry out initiatives of the eligible enti-23
ty that facilitate the expansion of the supply of 24
attainable housing and that supplement initia-25
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tives the eligible entity has carried out, or is in 1
the process of carrying out, as specified in the 2
application submitted under paragraph (4). 3
(4) APPLICATION.— 4
(A) I N GENERAL .—An eligible entity seek-5
ing a grant under this section shall submit to 6
the Secretary an application that provides— 7
(i) a description of each purpose for 8
which the eligible entity will use the grant, 9
and an attestation that the grant will be 10
used only for 1 or more eligible purposes 11
described in paragraph (3); 12
(ii) data on characteristics of in-13
creased housing supply during the 3-year 14
period ending on the date on which the ap-15
plication is submitted, which may include 16
whether such housing— 17
(I) serves households at a range 18
of income levels; and 19
(II) has improved the quality and 20
affordability of housing in the juris-21
diction of the eligible entity; 22
(iii) a description of how each eligible 23
purpose described in clause (i) may ad-24
dress a community need or advance an ob-25
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jective, or an aspect of an objective, in-1
cluded in the comprehensive housing af-2
fordability strategy and community devel-3
opment plan of the eligible entity under 4
part 91 of title 24, Code of Federal Regu-5
lations, or any successor regulation (com-6
monly referred to as a ‘‘consolidated 7
plan’’); and 8
(iv) a description of how the eligible 9
entity has carried out, or is in the process 10
of carrying out, initiatives that facilitate 11
the expansion of the supply of housing. 12
(B) I NITIATIVES.—Initiatives that meet 13
the criteria described in paragraph (3)(D) in-14
clude— 15
(i) increasing by-right uses, including 16
duplex, triplex, quadplex, and multifamily 17
buildings, in areas of opportunity; 18
(ii) revising or eliminating off-street 19
parking requirements to reduce the cost of 20
housing production; 21
(iii) revising minimum lot size require-22
ments, floor area ratio requirements, set- 23
back requirements, building heights, and 24
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bans or limits on construction to allow for 1
denser and more affordable development; 2
(iv) instituting incentives to promote 3
dense development; 4
(v) passing zoning overlays or other 5
ordinances that enable the development of 6
mixed-income housing; 7
(vi) streamlining regulatory require-8
ments and shortening processes, increasing 9
code enforcement and permitting capacity, 10
reforming zoning codes, or other initiatives 11
that reduce barriers to increasing housing 12
supply and affordability; 13
(vii) eliminating restrictions against 14
accessory dwelling units and expanding 15
their by-right use; 16
(viii) using local tax incentives or pub-17
lic financing to promote development of at-18
tainable housing; 19
(ix) streamlining environmental regu-20
lations; 21
(x) eliminating unnecessary manufac-22
tured-housing regulations and restrictions; 23
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(xi) minimizing the impact of over-1
burdensome energy and water efficiency 2
standards on housing costs; and 3
(xii) other activities that reduce cost 4
of construction, as determined by the Sec-5
retary. 6
(5) GRANTS.— 7
(A) I N GENERAL .—The Secretary shall 8
make not fewer than 25 grants on an annual 9
basis (unless amounts appropriated to provide 10
grant amounts consistent with subsection (b) 11
are insufficient, in which case fewer grants may 12
be awarded), with strong consideration of dif-13
ferent geographical areas and a relatively even 14
spread of rural, suburban, and urban commu-15
nities. 16
(B) L IMITATIONS ON AWARDS .—No grant 17
awarded under this paragraph may be— 18
(i) more than $10,000,000; or 19
(ii) less than $250,000. 20
(C) P RIORITY.—When awarding grants 21
under this paragraph, the Secretary shall give 22
priority to an eligible entity that has— 23
(i) demonstrated the use of innovative 24
policies, interventions, or programs for in-25
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creasing housing supply, including adop-1
tion of any of the frameworks developed 2
under section 203; and 3
(ii) demonstrated a marked improve-4
ment in housing supply growth. 5
(c) RULES OF CONSTRUCTION.—Nothing in this sec-6
tion shall be construed— 7
(1) to authorize the Secretary to mandate, su-8
persede, or preempt any local zoning or land use pol-9
icy; or 10
(2) to affect the requirements of section 11
105(c)(1) of the Cranston-Gonzalez National Afford-12
able Housing Act (42 U.S.C. 12705(c)(1)). 13
(d) AUTHORIZATION OF APPROPRIATIONS.— 14
(1) I N GENERAL .—There is authorized to be 15
appropriated to carry out this section $200,000,000 16
for each of fiscal years 2027 through 2031. 17
(2) A DJUSTMENT.—The amount authorized to 18
be appropriated under paragraph (1) shall be ad-19
justed for inflation based on the Consumer Price 20
Index. 21
SEC. 210. ACCELERATING HOME BUILDING ACT. 22
(a) DEFINITIONS.—In this section: 23
(1) AFFORDABLE HOUSING .—The term ‘‘afford-24
able housing’’ means housing for which the total 25
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monthly housing cost payment is not more than 30 1
percent of the monthly household income for a 2
household earning not more than 80 percent of the 3
area median income. 4
(2) C OVERED STRUCTURE .—The term ‘‘covered 5
structure’’ means— 6
(A) a low-rise or mid-rise structure with 7
not more than 25 dwelling units; and 8
(B) includes— 9
(i) an accessory dwelling unit; 10
(ii) infill development; 11
(iii) a duplex; 12
(iv) a triplex; 13
(v) a fourplex; 14
(vi) a cottage court; 15
(vii) a courtyard building; 16
(viii) a townhouse; 17
(ix) a multiplex; and 18
(x) any other structure with not less 19
than 2 dwelling units that the Secretary 20
considers appropriate. 21
(3) ELIGIBLE ENTITY .—The term ‘‘eligible enti-22
ty’’ means— 23
(A) a unit of general local government, as 24
defined in section 102(a) of the Housing and 25
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Community Development Act of 1974 (42 1
U.S.C. 5302(a)); 2
(B) a municipal membership organization; 3
and 4
(C) an Indian tribe, as defined in section 5
102(a) of the Housing and Community Devel-6
opment Act of 1974 (42 U.S.C. 5302(a)). 7
(4) H IGH OPPORTUNITY AREA .—The term 8
‘‘high opportunity area’’ has the meaning given the 9
term in section 1282.1 of title 12, Code of Federal 10
Regulations, or any successor regulation. 11
(5) I NFILL DEVELOPMENT .—The term ‘‘infill 12
development’’ means residential development on 13
small parcels in previously established areas for re-14 placement by new or refurbished housing that uti-15
lizes existing utilities and infrastructure. 16
(6) M IXED-INCOME HOUSING .—The term 17
‘‘mixed-income housing’’ means a housing develop-18
ment that is comprised of housing units that pro-19
mote differing levels of affordability in the commu-20
nity. 21
(7) P RE-REVIEWED DESIGNS .—The term ‘‘pre- 22
reviewed designs’’, also known as pattern books, 23
means sets of construction plans that are assessed 24
and approved by localities for compliance with local 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 77 •S 2651 RS
building and permitting standards to streamline and 1
expedite approval pathways for housing construction. 2
(8) R URAL AREA .—The term ‘‘rural area’’ 3
means any area other than a city or town that has 4
a population of less than 50,000 inhabitants. 5
(9) S ECRETARY.—The term ‘‘Secretary’’ means 6
the Secretary of Housing and Urban Development. 7
(b) A UTHORITY.—The Secretary may award grants 8
to eligible entities to select pre-reviewed designs of covered 9 structures of mixed-income housing for use in the jurisdic-10 tion of the eligible entity. 11
(c) C ONSIDERATIONS.—In reviewing applications 12
submitted by eligible entities for a grant under this sec-13 tion, the Secretary shall consider— 14
(1) the need for affordable housing by the eligi-15
ble entity; 16
(2) the presence of high opportunity areas in 17
the jurisdiction of the eligible entity; 18
(3) coordination between the eligible entity and 19
a State agency; and 20
(4) coordination between the eligible entity and 21
State, local, and regional transportation planning 22
authorities. 23
(d) S ET-ASIDE FOR RURAL AREAS.—Of the amount 24
made available in each fiscal year for grants under this 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 78 •S 2651 RS
section, the Secretary shall ensure that not less than 10 1 percent shall be used for grants to eligible entities that 2 are located in rural areas. 3
(e) R EPORTS.—The Secretary shall require eligible 4
entities receiving grants under this section to report on— 5 (1) the impacts of the activities carried out 6
using the grant amounts in improving the produc-7
tion and supply of affordable housing; 8
(2) the pre-reviewed designs selected using the 9
grant amounts in their communities; 10
(3) the number of permits issued for housing 11
development utilizing pre-reviewed designs; and 12
(4) the number of housing units produced in 13
developments utilizing the pre-reviewed designs. 14
(f) AVAILABILITY OF INFORMATION.—The Secretary 15
shall— 16
(1) to the extent possible, encourage localities 17
to make publicly available through a website infor-18
mation on the pre-reviewed designs selected and sub-19
mitted to the Secretary by eligible entities receiving 20 grants under this section, including information on 21
the benefits of use of those designs; and 22
(2) collect, identify, and disseminate best prac-23
tices regarding such designs and make such informa-24
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tion publicly available on the website of the Depart-1
ment of Housing and Urban Development. 2
(g) DESIGN ADOPTION AND REPAYMENT.—The Sec-3
retary may require an eligible entity to return to the Sec-4 retary any grant funds received under this section if the 5 selected pre-reviewed designs submitted under this section 6 have not been adopted during the 5-year period following 7 receipt of the grant, unless that period is extended by the 8 Secretary. 9
(h) AUTHORIZATION OF APPROPRIATIONS.— 10
(1) I N GENERAL .—There is authorized to be 11
appropriated to the Secretary such sums as are nec-12
essary to carry out this section. 13
(2) T ECHNICAL ASSISTANCE .—The Secretary 14
may set aside not more than 5 percent of amounts 15
appropriated under paragraph (1) in a fiscal year to 16 provide technical assistance to grant recipients 17
under this section and pre-grant technical assistance 18 for prospective applicants. 19
SEC. 211. BUILD MORE HOUSING NEAR TRANSIT ACT. 20
Section 5309 of title 49, United States Code, is 21
amended— 22
(1) in subsection (a)— 23
(A) by redesignating paragraph (6) as 24
paragraph (7); and 25
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(B) by inserting after paragraph (5) the 1
following: 2
‘‘(6) P RO-HOUSING POLICY .—The term ‘pro- 3
housing policy’— 4
‘‘(A) means any adopted State or local pol-5
icy that will remove regulatory barriers to the 6
construction or preservation of housing units, 7
including affordable housing units; and 8
‘‘(B) shall include any adopted State or 9
local policy that— 10
‘‘(i) reduces or eliminates parking 11
minimums; 12
‘‘(ii) establishes a by-right approval 13
process for housing under which land use 14
development approval is limited to deter-15
mining that the development meets objec-16
tive zoning and design standards that— 17
‘‘(I) involve no subjective judg-18
ment by a public official; 19
‘‘(II) are uniformly verifiable by 20
reference to an external and uniform 21
benchmark or criterion available to 22
both the land use developer and the 23
public official prior to submission; and 24
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‘‘(III) include only such stand-1
ards as are published and adopted by 2
ordinance or resolution by a jurisdic-3
tion before submission of a develop-4
ment application; 5
‘‘(iii) reduces or eliminates minimum 6
lot sizes; 7
‘‘(iv) eliminates or raises residential 8
property height limits or increases the 9
number of dwelling units permitted to be 10
constructed under a by-right approval 11
process; or 12
‘‘(v) carries out other policies as de-13
termined by the Secretary, in consultation 14
with the Secretary of Housing and Urban 15
Development.’’; 16
(2) in subsection (g)(2), by adding at the end 17
the following: 18
‘‘(D) E LIGIBILITY FOR ADJUSTMENT OF 19
RATING FOR PROJECT JUSTIFICATION CRITERIA 20
FOR PRO -HOUSING POLICIES ; CONSIDER-21
ATIONS.—In evaluating and rating a project as 22
a whole for project justification under subpara-23
graph (A), the Secretary— 24
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‘‘(i) may increase 1 point on the 5- 1
point scale (high, medium-high, medium, 2
medium-low, or low) the rating of a project 3
if the applicant submits documented evi-4
dence of pro-housing policies for areas ac-5
cessible to transit facilities along the 6
project route; and 7
‘‘(ii) should consider whether the pro- 8
housing policies documented by the appli-9
cant will result, through new production 10
and preservation, in an amount of housing 11
units, including housing units affordable 12
below the area median income, that is ap-13
propriate to expected housing demand in 14
the project area. 15
‘‘(E) C ONSULTATION.—In developing the 16
evaluation process that could lead to the in-17
creased rating described in subparagraph 18
(D)(i), the Secretary shall consult with the Sec-19
retary of Housing and Urban Development.’’; 20
(3) in subsection (h)(6), by adding at the end 21
the following: 22
‘‘(C) E LIGIBILITY FOR ADJUSTMENT OF 23
RATING FOR PROJECT JUSTIFICATION CRITERIA 24
FOR PRO -HOUSING POLICIES ; CONSIDER-25
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ATIONS.—In evaluating and rating the benefits 1
of a project under subparagraph (A), the Sec-2
retary— 3
‘‘(i) may increase the rating of a 4
project if the applicant submits docu-5
mented evidence of pro-housing policies for 6
areas accessible to transit facilities along 7
the project route; and 8
‘‘(ii) should consider whether the pro- 9
housing policies documented by the appli-10
cant will result, through new production 11
and preservation, in an amount of housing 12
units, including housing units affordable 13
below the area median income, that is ap-14
propriate to expected housing demand in 15
the project area. 16
‘‘(D) C ONSULTATION.—In developing the 17
evaluation process that could lead to the in-18
creased rating described in subparagraph (C)(i), 19
the Secretary shall consult with the Secretary 20
of Housing and Urban Development.’’; and 21
(4) in subsection (o)— 22
(A) in paragraph (1)— 23
(i) in subparagraph (B), by striking 24
‘‘and’’ at the end; 25
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(ii) in subparagraph (C), by striking 1
the period at the end and inserting ‘‘; 2
and’’; and 3
(iii) by adding at the end the fol-4
lowing: 5
‘‘(D) information concerning projects for 6
which the applicant submitted pro-housing poli-7
cies under subsection (g)(2)(D) or subsection 8
(h)(6) and received an adjustment of rating for 9
project justification.’’. 10
SEC. 212. REVITALIZING EMPTY STRUCTURES INTO DESIR-11
ABLE ENVIRONMENTS (RESIDE) ACT. 12
(a) DEFINITIONS.—In this section: 13
(1) A TTAINABLE HOUSING .—The term ‘‘attain-14
able housing’’ means housing that— 15
(A) serves households earning not more 16
than 100 percent of the area median income, if 17
a majority of the housing units are affordable 18
to households earning not more than 80 percent 19
of the area median income; or 20
(B) serves households earning not more 21
than 120 percent of the area median income, if 22
the majority of the housing units are affordable 23
to households earning not more than 60 percent 24
of the area median income. 25
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(2) C ONVERTED HOUSING UNIT .—The term 1
‘‘converted housing unit’’ means a housing unit that 2
is created using a covered grant. 3
(3) C OVERED GRANT .—The term ‘‘covered 4
grant’’ means a grant awarded under the Pilot Pro-5
gram. 6
(4) ELIGIBLE ENTITY .—The term ‘‘eligible enti-7
ty’’ means a participating jurisdiction, as defined in 8 section 104 of the Cranston-Gonzalez National Af-9
fordable Housing Act (42 U.S.C. 12704). 10
(5) HOME INVESTMENT PARTNERSHIPS PRO -11
GRAM.—The term ‘‘HOME Investment Partnerships 12
Program’’ means the program under subtitle A of 13
title II of the Cranston-Gonzalez National Afford-14
able Housing Act (42 U.S.C. 12741 et seq.). 15
(6) P ILOT PROGRAM .—The term ‘‘Pilot Pro-16
gram’’ means the Blighted Building to Housing 17
Conversion Program carried out under subsection 18
(b). 19
(7) S ECRETARY.—The term ‘‘Secretary’’ means 20
the Secretary of Housing and Urban Development. 21
(8) V ACANT AND ABANDONED BUILDING .—The 22
term ‘‘vacant and abandoned building’’ means a 23
property— 24
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(A) that was constructed for use as a 1
warehouse, factory, mall, strip mall, or hotel, or 2
for another industrial or commercial use; and 3
(B)(i) with respect to which— 4
(I) a code enforcement inspection has 5
determined that the property is not safe; 6
and 7
(II) not less than 90 days have 8
elapsed since the owner was notified of the 9
deficiencies in the property and the owner 10
has taken no corrective action; or 11
(ii) that is subject to a court-ordered re-12
ceivership or nuisance abatement related to 13
abandonment pursuant to State or local law or 14
otherwise meets the definition of an abandoned 15
property under State law. 16
(b) GRANT PROGRAM.—For each of fiscal years 2027 17
through 2031, if the amounts made available to carry out 18 the HOME Investment Partnerships Program exceed 19
$1,350,000,000, the Secretary may use not more than 20
$100,000,000 of the excess amounts to carry out a pilot 21 program, to be known as the ‘‘Blighted Building to Hous-22 ing Conversion Program’’, under which the Secretary 23
awards grants on a competitive basis to eligible entities 24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 87 •S 2651 RS
to convert vacant and abandoned buildings into attainable 1 housing. 2
(c) AMOUNT OF GRANT.— 3
(1) I N GENERAL .—For any fiscal year for 4
which $100,000,000 is available to carry out the 5
Pilot Program pursuant to subsection (b), the 6
amount of a covered grant shall be not less than 7
$1,000,000 and not more than $10,000,000. 8
(2) F ISCAL YEARS WITH LOWER FUNDING .— 9
For any fiscal year for which less than 10
$100,000,000 is available to carry out the Pilot Pro-11 gram pursuant to subsection (b), the Secretary shall 12 seek to maximize the number of covered grants 13
awarded. 14
(d) R ELATION TO HOME I NVESTMENT PARTNER-15
SHIPS PROGRAM FORMULA ALLOCATION.—A covered 16
grant awarded to an eligible entity shall be in addition 17 to, and shall not affect, the formula allocation for the eligi-18 ble entity under the HOME Investment Partnerships Pro-19 gram. 20
(e) PRIORITY.—In awarding covered grants, the Sec-21
retary shall give priority to an eligible entity that— 22 (1) will use the covered grant in a community 23
that is experiencing economic distress; 24
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(2) will use the covered grant in a qualified op-1
portunity zone (as defined in section 1400Z–1(a) of 2
the Internal Revenue Code of 1986); 3
(3) will use the covered grant to construct hous-4
ing that will serve a need identified in the com-5
prehensive housing affordability strategy and com-6
munity development plan of the eligible entity under 7
part 91 of title 24, Code of Federal Regulations, or 8
any successor regulation (commonly referred to as a 9
‘‘consolidated plan’’); or 10
(4) has enacted ordinances to reduce regulatory 11
barriers to conversion of vacant and abandoned 12
buildings to housing, which shall not include any al-13 teration of an ordinance that governs safety and 14
habitability. 15
(f) U SE OF FUNDS.—An eligible entity may use a 16
covered grant for— 17
(1) property acquisition; 18
(2) demolition; 19
(3) health hazard remediation; 20
(4) site preparation; 21
(5) construction, renovation, or rehabilitation; 22
or 23
(6) the establishment, maintenance, or expan-24
sion of community land trusts. 25
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(g) A PPLICABILITY OF HOME R EQUIREMENTS.— 1
The requirements for rental, sale, and resale of housing 2 under the HOME Investment Partnerships Program shall 3
apply to rental, sale, and resale of converted housing units 4 under the Pilot Program. 5
(h) W AIVER AUTHORITY.—In administering covered 6
grants, the Secretary may waive, or specify alternative re-7 quirements for, any statute or regulation that the Sec-8 retary administers in connection with the obligation by the 9 Secretary or the use by eligible entities of covered grant 10 funds (except for requirements related to fair housing, 11 nondiscrimination, labor standards, or the environment) 12 if the Secretary makes a public finding that good cause 13 exists for the waiver or alternative requirement. 14
(i) STUDY; REPORT.—Not later than 180 days after 15
the termination of the Pilot Program, the Secretary shall 16 study and submit a report to Congress on the impact of 17 the Pilot Program on— 18
(1) improving the tax base of local commu-19
nities; 20
(2) increasing access to affordable housing, es-21
pecially for elderly individuals, disabled individuals, 22 and veterans; 23
(3) increasing homeownership; and 24
(4) removing blight. 25
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SEC. 213. HOUSING AFFORDABILITY ACT. 1
(a) M ULTIFAMILY LOAN LIMIT STUDY.—The Com-2
missioner of the Federal Housing Administration, in con-3 sultation with the Secretary of the Department of Housing 4 and Urban Development, shall conduct a study to assess— 5 (1) whether current multifamily loan limits for 6
each multifamily mortgage insurance program are 7
set at appropriate amounts, including to cover the 8
cost of land and construction; 9
(2) whether the Commissioner has sufficient au-10
thority to set loan limits for each multifamily mort-11 gage insurance program at appropriate amounts, in-12
cluding to cover the cost of land and construction; 13
(3) the potential impacts of altering the calcula-14
tion of annual adjustments under section 206A of 15
the National Housing Act (12 U.S.C. 1712a) using 16
the percentage change in the Consumer Price Index 17
for All Urban Consumers to instead use the percent-18
age change in the Price Deflator Index of Multi-19
family Residential Units Under Construction re-20
leased by the Bureau of the Census from March of 21
the previous year to March of the year in which the 22
adjustment is made, or a combination thereof, in-23
cluding— 24
(A) the impact on the General Insurance 25
and Special Risk Insurance Fund; 26
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(B) the availability of multifamily purchase 1
and construction lending; 2
(C) the impact on prices, including rental 3
prices, within the multifamily housing market; 4
and 5
(D) the impact on housing supply. 6
(b) R EPORT.—The Commissioner of the Federal 7
Housing Administration shall submit a report to Congress 8 within 180 days of enactment of this Act summarizing its 9 findings under the study in subsection (a). 10
(c) R ULEMAKING.—The Secretary of Housing and 11
Urban Development may, in consultation with the Com-12
missioner of the Federal Housing Administration, conduct 13 notice and comment rulemaking to increase multifamily 14 loan limits in a manner that would not exceed the fol-15 lowing: 16
(1) With respect to insurance under section 207 17
of the National Housing Act (12 U.S.C. 1713)— 18
(A) for projects that do not consist of ele-19
vator-type structures— 20
(i) $83,655 per family unit without a 21
bedroom; 22
(ii) $92,664 per family unit with one 23
bedroom; 24
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(iii) $110,682 per family unit with 1
two bedrooms; 2
(iv) $136,422 per family unit with 3
three bedrooms; and 4
(v) $154,440 per family unit with four 5
or more bedrooms; and 6
(B) for projects that consist of elevator- 7
type structures— 8
(i) $96,525 per family unit without a 9
bedroom; 10
(ii) $108,108 per family unit with one 11
bedroom; 12
(iii) $132,561 per family unit with 13
two bedrooms; 14
(iv) $166,023 per family unit with 15
three bedrooms; and 16
(v) $187,721.50 per family unit with 17
four or more bedrooms. 18
(2) With respect to insurance under section 213 19
of the National Housing Act (12 U.S.C. 1715e)— 20
(A) for projects that do not consist of ele-21
vator-type structures— 22
(i) $90,665.50 per family unit without 23
a bedroom; 24
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(ii) $104,524 per family unit with one 1
bedroom; 2
(iii) $126,060 per family unit with 3
two bedrooms; 4
(iv) $161,354.50 per family unit with 5
three bedrooms; and 6
(v) $179,757.50 per family unit with 7
four or more bedrooms; and 8
(B) for projects that consist of elevator- 9
type structures— 10
(i) $96,525 per family unit without a 11
bedroom; 12
(ii) $109,362 per family unit with one 13
bedroom; 14
(iii) $132,981 per family unit with 15
two bedrooms; 16
(iv) $172,033.50 per family unit with 17
three bedrooms; and 18
(v) $188,839 per family unit with four 19
or more bedrooms. 20
(3) With respect to insurance under section 220 21
of the National Housing Act (12 U.S.C. 1715k)— 22
(A) for projects that do not consist of ele-23
vator-type structures— 24
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(i) $83,655 per family unit without a 1
bedroom; 2
(ii) $92,664 per family unit with one 3
bedroom; 4
(iii) $110,682 per family unit with 5
two bedrooms; 6
(iv) $136,422 per family unit with 7
three bedrooms; and 8
(v) $154,440 per family unit with four 9
or more bedrooms; and 10
(B) for projects that consist of elevator- 11
type structures— 12
(i) $96,525 per family unit without a 13
bedroom; 14
(ii) $108,108 per family unit with one 15
bedroom; 16
(iii) $132,561 per family unit with 17
two bedrooms; 18
(iv) $161,023 per family unit with 19
three bedrooms; and 20
(v) $187,721.50 per family unit with 21
four or more bedrooms. 22
(4) With respect to insurance under section 221 23
of the National Housing Act (12 U.S.C. 1715l)— 24
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(A) for projects that do not consist of ele-1
vator-type structures— 2
(i) $83,254.50 per family unit without 3
a bedroom; 4
(ii) $94,498.50 per family unit with 5
one bedroom; 6
(iii) $114,224 per family unit with 7
two bedrooms; 8
(iv) $143,372 per family unit with 9
three bedrooms; and 10
(v) $162,461 per family unit with four 11
or more bedrooms; and 12
(B) for projects that consist of elevator- 13
type structures— 14
(i) $89,927 per family unit without a 15
bedroom; 16
(ii) $103,090 per family unit with one 17
bedroom; 18
(iii) $125,354 per family unit with 19
two bedrooms; 20
(iv) $162,162 per family unit with 21
three bedrooms; and 22
(v) $178,008.50 per family unit with 23
four or more bedrooms. 24
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(5) With respect to insurance under section 231 1
of the National Housing Act (12 U.S.C. 1715v)— 2
(A) for projects that do not consist of ele-3
vator-type structures— 4
(i) $83,254.50 per family unit without 5
a bedroom; 6
(ii) $94,498.50 per family unit with 7
one bedroom; 8
(iii) $114,224 per family unit with 9
two bedrooms; 10
(iv) $143,372 per family unit with 11
three bedrooms; and 12
(v) $162,461 per family unit with four 13
or more bedrooms; and 14
(B) for projects that consist of elevator- 15
type structures— 16
(i) $89,927 per family unit without a 17
bedroom; 18
(ii) $103,090 per family unit with one 19
bedroom; 20
(iii) $125,354 per family unit with 21
two bedrooms; 22
(iv) $162,162 per family unit with 23
three bedrooms; and 24
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(v) $178,008.50 per family unit with 1
four or more bedrooms. 2
(6) With respect to insurance under section 234 3
of the National Housing Act (12 U.S.C. 1715y)— 4
(A) for projects that do not consist of ele-5
vator-type structures— 6
(i) $92,505.50 per family unit without 7
a bedroom; 8
(ii) $106,658 per family unit with one 9
bedroom; 10
(iii) $128,631.50 per family unit with 11
two bedrooms; 12
(iv) $164,648 per family unit with 13
three bedrooms; and 14
(v) $183,425 per family unit with four 15
or more bedrooms; and 16
(B) for projects that consist of elevator- 17
type structures— 18
(i) $97,350 per family unit without a 19
bedroom; 20
(ii) $111,593 per family unit with one 21
bedroom; 22
(iii) $135,696 per family unit with 23
two bedrooms; 24
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(iv) $175,544.50 per family unit with 1
three bedrooms; and 2
(v) $192,693.50 per family unit with 3
four or more bedrooms. 4
(d) R ULE OF CONSTRUCTION.—Nothing in this sec-5
tion or the amendment made by this section shall be con-6 strued to limit the authority of the Secretary of Housing 7 and Urban Development to revise the statutory exceptions 8 for high-cost percentage and high-cost areas annual index-9 ing. 10
TITLE III—MANUFACTURED 11
HOUSING FOR AMERICA 12
SEC. 301. HOUSING SUPPLY EXPANSION ACT. 13
(a) I N GENERAL.—Section 603(6) of the National 14
Manufactured Housing Construction and Safety Stand-15
ards Act of 1974 (42 U.S.C. 5402(6)) is amended by 16
striking ‘‘on a permanent chassis’’ and inserting ‘‘with or 17 without a permanent chassis’’. 18
(b) M ANUFACTURED HOME CERTIFICATIONS.—Sec-19
tion 604 of the National Manufactured Housing Construc-20 tion and Safety Standards Act of 1974 (42 U.S.C. 5403) 21 is amended by adding at the end the following: 22
‘‘(i) MANUFACTURED HOME CERTIFICATIONS.— 23
‘‘(1) IN GENERAL .— 24
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‘‘(A) I NITIAL CERTIFICATION .—Subject to 1
subparagraph (B), not later than 1 year after 2
the date of enactment of the Renewing Oppor-3
tunity in the American Dream to Housing Act 4
of 2025, a State shall submit to the Secretary 5
an initial certification that the laws and regula-6
tions of the State— 7
‘‘(i) treat any manufactured home in 8
parity with a manufactured home (as de-9
fined and regulated by the State); and 10
‘‘(ii) subject a manufactured home 11
without a permanent chassis to the same 12
laws and regulations of the State as a 13
manufactured home built on a permanent 14
chassis, including with respect to financ-15
ing, title, insurance, manufacture, sale, 16
taxes, transportation, installation, and 17
other areas as the Secretary determines, 18
after consultation with and approval by the 19
consensus committee, are necessary to give 20
effect to the purpose of this section. 21
‘‘(B) S TATE PLAN SUBMISSION .—Any 22
State plan submitted under subparagraph (C) 23
shall contain the required State certification 24
under subparagraph (A) and, if contained 25
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therein, no additional or State certification 1
under subparagraph (A) or paragraph (3). 2
‘‘(C) EXTENDED DEADLINE .—With respect 3
to a State with a legislature that meets bienni-4
ally, the deadline for the submission of the ini-5
tial certification required under subparagraph 6
(A) shall be 2 years after the date of enactment 7
of the Renewing Opportunity in the American 8
Dream to Housing Act of 2025. 9
‘‘(D) LATE CERTIFICATION .— 10
‘‘(i) N O WAIVER .—The Secretary may 11
not waive the prohibition described in 12
paragraph (5)(B) with respect to a certifi-13
cation submitted after the deadline under 14
subparagraph (A) or paragraph (3) unless 15
the Secretary approves the late certifi-16
cation. 17
‘‘(ii) R ULE OF CONSTRUCTION .— 18
Nothing in this subsection shall be con-19
strued to prevent a State from submitting 20
the initial certification required under sub-21
paragraph (A) after the required deadline 22
under that subparagraph. 23
‘‘(2) FORM OF STATE CERTIFICATION NOT PRE -24
SENTED IN A STATE PLAN .—The initial certification 25
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required under paragraph (1)(A), if not submitted 1
with a State plan under paragraph (1)(B), shall con-2
tain, in a form prescribed by the Secretary, an attes-3 tation by an official that the State has taken the 4
steps necessary to ensure the veracity of the certifi-5 cation required under paragraph (1)(A), including, 6
as necessary, by— 7
‘‘(A) amending the definition of ‘manufac-8
tured home’ in the laws and regulations of the 9
State; and 10
‘‘(B) directing State agencies to amend the 11
definition of ‘manufactured home’ in regula-12
tions. 13
‘‘(3) A NNUAL RECERTIFICATION .—Not later 14
than a date to be determined by the Secretary each 15
year, a State shall submit to the Secretary an addi-16
tional certification that— 17
‘‘(A) confirms the accuracy of the initial 18
certification submitted under subparagraph (A) 19
or (B) of paragraph (1); and 20
‘‘(B) certifies that any new laws or regula-21
tions enacted or adopted by the State since the 22
date of the previous certification does not 23
change the veracity of the initial certification 24
submitted under paragraph (1)(A). 25
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‘‘(4) L IST.—The Secretary shall publish and 1
maintain in the Federal Register and on the website 2
of the Department of Housing and Urban Develop-3
ment a list of States that are up-to-date with the 4
submission of initial and subsequent certifications 5
required under this subsection. 6
‘‘(5) PROHIBITION.— 7
‘‘(A) D EFINITION.—In this paragraph, the 8
term ‘covered manufactured home’ means a 9
home that is— 10
‘‘(i) not considered a manufactured 11
home under the laws and regulations of a 12
State because the home is constructed 13
without a permanent chassis; 14
‘‘(ii) considered a manufactured home 15
under the definition of the term in section 16
603; and 17
‘‘(iii) constructed after the date of en-18
actment of the Renewing Opportunity in 19
the American Dream to Housing Act of 20
2025. 21
‘‘(B) B UILDING, INSTALLATION, AND 22
SALE.—If a State does not submit a certifi-23
cation under paragraph (1)(A) or (3) by the 24
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date on which those certifications are required 1
to be submitted— 2
‘‘(i) with respect to a State in which 3
the State administers the installation of 4
manufactured homes, the State shall pro-5
hibit the manufacture, installation, or sale 6
of a covered manufactured home within the 7
State; and 8
‘‘(ii) with respect to a State in which 9
the Secretary administers the installation 10
of manufactured homes, the State and the 11
Secretary shall prohibit the manufacture, 12
installation, or sale of a covered manufac-13
tured home within the State.’’. 14
(c) OTHER FEDERAL LAWS REGULATING MANUFAC-15
TURED HOMES.—The Secretary of Housing and Urban 16
Development may coordinate with the heads of other Fed-17 eral agencies to ensure that Federal agencies treat a man-18 ufactured home (as defined in Federal laws and regula-19 tions other than section 603 of the National Manufactured 20 Housing Construction and Safety Standards Act of 1974 21 (42 U.S.C. 5402)) in the same manner as a manufactured 22 home (as defined in section 603 of the National Manufac-23 tured Housing Construction and Safety Standards Act of 24 1974 (42 U.S.C. 5402), as amended by this Act). 25
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(d) ASSISTANCE TO STATES.—Section 609 of the Na-1
tional Manufactured Housing Construction and Safety 2
Standards Act of 1974 (42 U.S.C. 5408) is amended— 3
(1) in paragraph (1), by striking ‘‘and’’ at the 4
end; 5
(2) in paragraph (2), by striking the period at 6
the end and inserting ‘‘; and’’; and 7
(3) by adding at the end the following: 8
‘‘(3) model guidance to support the submission 9
of the certification required under section 604(i).’’. 10 (e) P REEMPTION.—Nothing in this section or the 11
amendments made by this section shall be construed as 12 limiting the scope of Federal preemption under section 13 604(d) of the National Manufactured Housing Construc-14 tion and Safety Standards Act of 1974 (42 U.S.C. 15
5403(d)). 16
SEC. 302. MODULAR HOUSING PRODUCTION ACT. 17
(a) DEFINITIONS.—In this section: 18
(1) MANUFACTURED HOME .—The term ‘‘manu-19
factured home’’ has the meaning given the term in 20
section 603 of the National Manufactured Housing 21
Construction and Safety Standards Act of 1974 (42 22
U.S.C. 5402). 23
(2) M ODULAR HOME .—The term ‘‘modular 24
home’’ means a home that is constructed in a fac-25
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tory in 1 or more modules, each of which meet appli-1
cable State and local building codes of the area in 2
which the home will be located, and that are trans-3
ported to the home building site, installed on foun-4
dations, and completed. 5
(3) S ECRETARY.—The term ‘‘Secretary’’ means 6
the Secretary of Housing and Urban Development. 7
(b) FHA C ONSTRUCTION FINANCING PROGRAMS.— 8
(1) I N GENERAL .—The Secretary shall conduct 9
a review of Federal Housing Administration con-10
struction financing programs to identify barriers to 11 the use of modular home methods. 12
(2) R EQUIREMENTS.—In conducting the review 13
under paragraph (1), the Secretary shall— 14
(A) identify and evaluate regulatory and 15
programmatic features that restrict participa-16
tion in construction financing programs by 17
modular home developers, including construc-18
tion draw schedules; and 19
(B) identify administrative measures au-20
thorized under section 525 of the National 21
Housing Act (12 U.S.C. 1735f–3) to facilitate 22
program utilization by modular home devel-23
opers. 24
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(3) R EPORT.—Not later than 1 year after the 1
date of enactment of this Act, the Secretary shall 2
publish a report that describes the results of the re-3 view conducted under paragraph (1), which shall in-4
clude a description of programmatic and policy 5
changes that the Secretary recommends to reduce or 6
eliminate identified barriers to the use of modular 7
home methods in Federal Housing Administration 8
construction financing programs. 9
(4) RULEMAKING.— 10
(A) I N GENERAL .—Not later than 120 11
days after the date on which the Secretary pub-12
lishes the report under paragraph (3), the Sec-13
retary shall initiate a rulemaking to examine an 14
alternative draw schedule for construction fi-15
nancing loans provided to modular and manu-16
factured home developers, which shall include 17
the ability for interested stakeholders to provide 18
robust public comment. 19
(B) D ETERMINATION.—Following the pe-20
riod for public comment under subparagraph 21
(A), the Secretary shall— 22
(i) issue a final rule regarding an al-23
ternative draw schedule described in sub-24
paragraph (A); or 25
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(ii) provide an explanation as to why 1
the rule shall not become final. 2
(c) S TANDARDIZED UNIFORM COMMERCIAL CODE 3
FOR MODULAR HOMES.— 4
(1) AWARD.—The Secretary may award a grant 5
to study the design and feasibility of a standardized 6 uniform commercial code for modular homes, which 7
shall evaluate— 8
(A) the utility of a standardized coding 9
system for serializing and securing modules, 10
streamlining design and construction, and im-11
proving modular home innovation; and 12
(B) a means to coordinate a standardized 13
code with financing incentives. 14
(2) A UTHORIZATION OF APPROPRIATIONS .— 15
There is authorized to be appropriated such funds as 16 may be necessary to carry out paragraph (1). 17
SEC. 303. PROPERTY IMPROVEMENT AND MANUFACTURED 18
HOUSING LOAN MODERNIZATION ACT. 19
(a) NATIONAL HOUSING ACT AMENDMENTS.— 20
(1) I N GENERAL .—Section 2 of the National 21
Housing Act (12 U.S.C. 1703) is amended— 22
(A) in subsection (a), by inserting ‘‘con-23
struction of additional or accessory dwelling 24
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units, as defined by the Secretary,’’ after ‘‘en-1
ergy conserving improvements,’’; and 2
(B) in subsection (b)— 3
(i) in paragraph (1)— 4
(I) by striking subparagraph (A) 5
and inserting the following: 6
‘‘(A) $75,000 if made for the purpose of financ-7
ing alterations, repairs and improvements upon or in 8
connection with an existing single-family structure, 9
including a manufactured home;’’; 10
(II) in subparagraph (B)— 11
(aa) by striking ‘‘$60,000’’ 12
and inserting ‘‘$150,000’’; 13
(bb) by striking ‘‘$12,000’’ 14
and inserting ‘‘$37,500’’; and 15
(cc) by striking ‘‘an apart-16
ment house or’’; 17
(III) by striking subparagraphs 18
(C) and (D) and inserting the fol-19
lowing: 20
‘‘(C)(i) $106,405 if made for the purpose of fi-21
nancing the purchase of a single-section manufac-22
tured home; and 23
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‘‘(ii) $195,322 if made for the purpose of fi-1
nancing the purchase of a multi-section manufac-2
tured home; 3
‘‘(D)(i) $149,782 if made for the purpose of fi-4
nancing the purchase of a single-section manufac-5
tured home and a suitably developed lot on which to 6
place the home; and 7
‘‘(ii) $238,699 if made for the purpose of fi-8
nancing the purchase of a multi-section manufac-9
tured home and a suitably developed lot on which to 10
place the home;’’; 11
(IV) in subparagraph (E)— 12
(aa) by striking ‘‘$23,226’’ 13
and inserting ‘‘$43,377’’; and 14
(bb) by striking the period 15
at the end and inserting a semi-16
colon; 17
(V) in subparagraph (F), by 18
striking ‘‘and’’ at the end; 19
(VI) in subparagraph (G), by 20
striking the period at the end and in-21
serting ‘‘; and’’; and 22
(VII) by inserting after subpara-23
graph (G) the following: 24
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‘‘(H) such principal amount as the Secretary 1
may prescribe if made for the purpose of financing 2
the construction of an accessory dwelling unit.’’; 3
(ii) in the matter immediately pre-4
ceding paragraph (2)— 5
(I) by striking ‘‘regulation’’ and 6
inserting ‘‘notice’’; 7
(II) by striking ‘‘increase’’ and 8
inserting ‘‘set’’; 9
(III) by striking ‘‘(A)(ii), (C), 10
(D), and (E)’’ and inserting ‘‘(A) 11
through (H)’’; 12
(IV) by inserting ‘‘, or as nec-13
essary to achieve the goals of the Fed-14
eral Housing Administration, periodi-15
cally reset the dollar amount limita-16
tions in subparagraphs (A) through 17
(H) based on justification and meth-18
odology set forth in advance by regu-19
lation’’ before the period at the end; 20
and 21
(V) by adjusting the margins ap-22
propriately; 23
(iii) in paragraph (3), by striking ‘‘ex-24
ceeds—’’ and all that follows through the 25
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period at the end and inserting ‘‘exceeds 1
such period of time as determined by the 2
Secretary, not to exceed 30 years.’’; 3
(iv) by striking paragraph (9) and in-4
serting the following: 5
‘‘(9) A NNUAL INDEXING OF CERTAIN DOLLAR 6
AMOUNT LIMITATIONS .—The Secretary shall develop 7
or choose 1 or more methods of indexing in order to 8
annually set the loan limits established in paragraph 9 (1), based on data the Secretary determines is ap-10
propriate for purposes of this section.’’; and 11
(v) in paragraph (11), by striking 12
‘‘lease—’’ and all that follows through the 13
period at the end and inserting ‘‘lease 14
meets the terms and conditions established 15
by the Secretary’’. 16
(2) D EADLINE FOR DEVELOPMENT OR CHOICE 17
OF NEW INDEX ; INTERIM INDEX .— 18
(A) D EADLINE FOR DEVELOPMENT OR 19
CHOICE OF NEW INDEX .—Not later than 1 year 20
after the date of enactment of this Act, the Sec-21
retary of Housing and Urban Development 22
shall develop or choose 1 or more methods of 23
indexing as required under section 2(b)(9) of 24
the National Housing Act (12 U.S.C. 25
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1703(b)(9)), as amended by paragraph (1) of 1
this subsection. 2
(B) I NTERIM INDEX .—During the period 3
beginning on the date of enactment of this Act 4
and ending on the date on which the Secretary 5
of Housing and Urban Development develops or 6
chooses 1 or more methods of indexing as re-7
quired under section 2(b)(9) of the National 8
Housing Act (12 U.S.C. 1703(b)(9)), as 9
amended by paragraph (1) of this subsection, 10
the method of indexing established by the Sec-11
retary under that subsection before the date of 12
enactment of this Act shall apply. 13
(b) HUD STUDY OF OFF-SITE CONSTRUCTION.— 14
(1) DEFINITIONS.—In this subsection: 15
(A) O FF-SITE CONSTRUCTION HOUSING .— 16
The term ‘‘off-site construction housing’’ in-17
cludes manufactured homes and modular 18
homes. 19
(B) M ANUFACTURED HOME .—The term 20
‘‘manufactured home’’ means any home con-21
structed in accordance with the construction 22
and safety standards established under the Na-23
tional Manufactured Housing Construction and 24
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Safety Standards Act of 1974 (42 U.S.C. 5401 1
et seq.). 2
(C) MODULAR HOME .—The term ‘‘modular 3
home’’ means a home that is constructed in a 4
factory in 1 or more modules, each of which 5
meet applicable State and local building codes 6
of the area in which the home will be located, 7
and that are transported to the home building 8
site, installed on foundations, and completed. 9
(2) S TUDY.—The Secretary of Housing and 10
Urban Development shall conduct a study and sub-11
mit to Congress a report on the cost effectiveness of 12 off-site construction housing, that includes— 13
(A) an analysis of the advantages of the 14
impact of centralization in a factory and trans-15
portation to a construction site on cost, preci-16
sion, and materials waste; 17
(B) the extent to which off-site construc-18
tion housing meets housing quality standards 19
under the National Standards for the Physical 20
Inspection of Real Estate, or other standards as 21
the Secretary may prescribe, compared to the 22
extent for site-built homes, for such standards; 23
(C) the expected replacement and mainte-24
nance costs over the first 40 years of life of off- 25
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site construction homes compared to those costs 1
for site-built homes; and 2
(D) opportunities for use beyond single- 3
family housing, such as applications in acces-4
sory dwelling units, two- to four-unit housing, 5
and large multifamily housing. 6
SEC. 304. PRICE ACT. 7
Title I of the Housing and Community Development 8
Act of 1974 (42 U.S.C. 5301 et seq.) is amended— 9
(1) in section 105(a) (42 U.S.C. 5305(a)), in 10
the matter preceding paragraph (1), by striking 11
‘‘Activities’’ and inserting ‘‘Unless otherwise author-12 ized under section 123, activities’’; and 13
(2) by adding at the end the following: 14
‘‘SEC. 123. PRESERVATION AND REINVESTMENT FOR COM-15
MUNITY ENHANCEMENT. 16
‘‘(a) DEFINITIONS.—In this section: 17
‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN -18
STITUTION.—The term ‘community development fi-19
nancial institution’ means an institution that has 20
been certified as a community development financial 21
institution (as defined in section 103 of the Riegle 22 Community Development and Regulatory Improve-23
ment Act of 1994 (12 U.S.C. 4702)) by the Sec-24
retary of the Treasury. 25
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‘‘(2) E LIGIBLE MANUFACTURED HOUSING COM -1
MUNITY.—The term ‘eligible manufactured housing 2
community’ means a manufactured housing commu-3
nity that— 4
‘‘(A) is affordable to low- and moderate-in-5
come persons, as determined by the Secretary, 6
but not more than 120 percent of the area me-7
dian income; and 8
‘‘(B)(i) is owned by the residents of the 9
manufactured housing community through a 10
resident-controlled entity such as a resident- 11
owned cooperative; or 12
‘‘(ii) will be maintained as such a commu-13
nity, and remain affordable for low- and mod-14
erate-income persons, to the maximum extent 15
practicable and for the longest period feasible. 16
‘‘(3) E LIGIBLE RECIPIENT .—The term ‘eligible 17
recipient’ means— 18
‘‘(A) an eligible manufactured housing 19
community; 20
‘‘(B) a unit of general local government; 21
‘‘(C) a housing authority; 22
‘‘(D) a resident-owned community; 23
‘‘(E) a resident-owned cooperative; 24
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‘‘(F) a nonprofit entity with housing exper-1
tise or a consortia of such entities; 2
‘‘(G) a community development financial 3
institution; 4
‘‘(H) an Indian tribe; 5
‘‘(I) a tribally designated housing entity; 6
‘‘(J) a State; or 7
‘‘(K) any other entity that is— 8
‘‘(i) an owner-operator of an eligible 9
manufactured housing community; and 10
‘‘(ii) working with an eligible manu-11
factured housing community. 12
‘‘(4) I NDIAN TRIBE .—The term ‘Indian tribe’ 13
has the meaning given the term ‘Indian tribe’ in sec-14 tion 4 of the Native American Housing Assistance 15
and Self-Determination Act of 1996 (25 U.S.C. 16
4103). 17
‘‘(5) M ANUFACTURED HOUSING COMMUNITY .— 18
The term ‘manufactured housing community’ 19
means— 20
‘‘(A) any community, court, park, or other 21
land under unified ownership developed and ac-22
commodating or equipped to accommodate the 23
placement of manufactured homes, where— 24
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‘‘(i) spaces within such community are 1
or will be primarily used for residential oc-2
cupancy; 3
‘‘(ii) all homes within the community 4
are used for permanent occupancy; and 5
‘‘(iii) a majority of such occupied 6
spaces within the community are occupied 7
by manufactured homes, which may in-8
clude homes constructed prior to enact-9
ment of the Manufactured Home Construc-10
tion and Safety Standards; or 11
‘‘(B) any community that meets the defini-12
tion of manufactured housing community used 13
for programs similar to the program under this 14
section. 15
‘‘(6) R ESIDENT HEALTH , SAFETY, AND ACCES -16
SIBILITY ACTIVITIES .—The term ‘resident health, 17
safety, and accessibility activities’ means the recon-18 struction, repair, or replacement of manufactured 19
housing and manufactured housing communities 20
to— 21
‘‘(A) protect the health and safety of resi-22
dents; 23
‘‘(B) address weatherization and reduce 24
utility costs; or 25
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‘‘(C) address accessibility needs for resi-1
dents with disabilities. 2
‘‘(7) T RIBALLY DESIGNATED HOUSING ENTI -3
TY.—The term ‘tribally designated housing entity’ 4
has the meaning given the term in section 4 of the 5
Native American Housing Assistance and Self-De-6
termination Act of 1996 (25 U.S.C. 4103). 7
‘‘(b) E STABLISHMENT.—The Secretary shall, by no-8
tice, carry out a competitive grant program to award 9
funds to eligible recipients to carry out eligible projects 10 for development of or improvements in eligible manufac-11 tured housing communities. 12
‘‘(c) ELIGIBLE PROJECTS.— 13
‘‘(1) I N GENERAL .—Amounts from grants 14
under this section may be used for— 15
‘‘(A) community infrastructure, facilities, 16
utilities, and other land improvements in or 17
serving an eligible manufactured housing com-18
munity; 19
‘‘(B) reconstruction or repair existing 20
housing within an eligible manufactured hous-21
ing community; 22
‘‘(C) replacement of homes within an eligi-23
ble manufactured housing community; 24
‘‘(D) planning; 25
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‘‘(E) resident health, safety, and accessi-1
bility activities in homes in an eligible manufac-2
tured housing community; 3
‘‘(F) land and site acquisition and infra-4
structure for expansion or construction of an el-5
igible manufactured housing community; 6
‘‘(G) resident and community services, in-7
cluding relocation assistance, eviction preven-8
tion, and down payment assistance; and 9
‘‘(H) any other activity that— 10
‘‘(i) is approved by the Secretary con-11
sistent with the requirements under this 12
section; 13
‘‘(ii) improves the overall living condi-14
tions of an eligible manufactured housing 15
community, which may include the addi-16
tion or enhancement of shared spaces such 17
as community centers, recreational areas, 18
or other facilities that support resident 19
well-being and community engagement; 20
and 21
‘‘(iii) is necessary to protect the 22
health and safety of the residents of the el-23
igible manufactured housing community 24
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and the long-term affordability and sus-1
tainability of the community. 2
‘‘(2) R EPLACEMENT.—For purposes of sub-3
paragraphs (B) and (C) of paragraph (1), grants 4
under this section— 5
‘‘(A) may not be used for rehabilitation or 6
modernization of units that were built before 7
June 15, 1976; and 8
‘‘(B) may only be used for disposition and 9
replacement of units described in subparagraph 10
(A), provided that any replacement housing 11
complies with the Manufactured Home Con-12
struction and Safety Standards or is another al-13
lowed home, as determined by the Secretary. 14
‘‘(d) PRIORITY.—In awarding grants under this sec-15
tion, the Secretary shall prioritize applicants that will 16 carry out activities that primarily benefit low- and mod-17 erate-income residents and preserve long-term housing af-18 fordability for residents of eligible manufactured housing 19 communities. 20
‘‘(e) WAIVERS.—The Secretary may waive or specify 21
alternative requirements for any provision of law or regu-22 lation that the Secretary administers in connection with 23 use of amounts made available under this section other 24 than requirements related to fair housing, nondiscrimina-25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 121
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tion, labor standards, and the environment, upon a finding 1 that the waiver or alternative requirement is not incon-2 sistent with the overall purposes of this section and that 3 the waiver or alternative requirement is necessary to facili-4 tate the use of amounts made available under this section. 5 ‘‘(f) IMPLEMENTATION.— 6
‘‘(1) IN GENERAL .—Any grant made under this 7
section shall be made pursuant to criteria for selec-8
tion of recipients of such grants that the Secretary 9
shall by regulation establish and publish together 10
with any notification of availability of amounts 11
under this section. 12
‘‘(2) S ET ASIDE OF GRANT AMOUNTS .—The 13
Secretary may set aside amounts provided under 14
this section for grants to Indian tribes and tribally 15 designated housing entities. 16
‘‘(g) A UTHORIZATION OF APPROPRIATIONS.—There 17
is authorized to be appropriated to the Secretary such 18 sums as may be necessary to carry out this section.’’. 19 TITLE IV—ACCESSING THE 20
AMERICAN DREAM 21
SEC. 401. CREATING INCENTIVES FOR SMALL DOLLAR 22
LOAN ORIGINATORS. 23
(a) DEFINITIONS.—In this section: 24
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(1) D IRECTOR.—The term ‘‘Director’’ means 1
the Director of the Bureau of Consumer Financial 2
Protection. 3
(2) S MALL DOLLAR MORTGAGE .—The term 4
‘‘small dollar mortgage’’ means a mortgage loan 5
having an original principal obligation of not more 6
than $100,000 that is— 7
(A) secured by real property designed for 8
the occupancy of between 1 and 4 families; and 9
(B)(i) insured by the Federal Housing Ad-10
ministration under title II of the National 11
Housing Act (12 U.S.C. 1707 et seq.); 12
(ii) made, guaranteed, or insured by the 13
Department of Veterans Affairs; 14
(iii) made, guaranteed, or insured by the 15
Department of Agriculture; or 16
(iv) eligible to be purchased or securitized 17
by the Federal Home Loan Mortgage Corpora-18
tion or the Federal National Mortgage Associa-19
tion. 20
(b) R EQUIREMENT REGARDING LOAN ORIGINATOR 21
COMPENSATION PRACTICES.—Not later than 270 days 22
after the date of enactment of this Act, the Director shall 23 submit to the Committee on Banking, Housing, and 24
Urban Affairs of the Senate and the Committee on Finan-25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 123
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cial Services of the House of Representatives a report on 1 loan originator compensation practices throughout the res-2 idential mortgage market, including the relative frequency 3 of loan originators being compensated— 4
(1) with a salary; 5
(2) with a commission reflecting a fixed per-6
centage of the amount of credit extended; 7
(3) with a commission based on a factor other 8
than a fixed percentage of the amount of credit ex-9
tended; 10
(4) with a combination of salary and commis-11
sion; 12
(5) on a loan volume basis; 13
(6) with a commission reflecting a percentage of 14
the amount of credit extended, for which a minimum 15
or maximum compensation amount is set; and 16
(7) by any other mechanism that the Director 17
may find to be a practice for compensating mortgage 18
loan originators, including any mechanism that pro-19
vides a loan originator with compensation in such a 20
way that the loan originator does not necessarily re-21 ceive a lower level of compensation for originating a 22 small dollar mortgage than the loan originator would 23 receive for originating a mortgage loan that is not 24
a small dollar mortgage. 25
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(c) C ONTENTS.—The report required under sub-1
section (b) shall include— 2
(1) data and other analysis regarding the effect 3
of the approaches to loan originator compensation 4
described in subsection (b) on the availability of 5
small dollar mortgage loans; and 6
(2) analysis and discussion regarding other po-7
tential barriers to small dollar mortgage lending. 8
(d) RULEMAKING.—Following the issuance of the re-9
port required under subsection (b), the Director may issue 10 regulations to clarify the forms of compensation a lender 11 may use to compensate a loan originator that— 12
(1) are permissible pursuant to section 129B(c) 13
of the Truth in Lending Act (15 U.S.C. 1639b(c)); 14
and 15
(2) would result in the loan originator receiving 16
compensation for originating a small dollar mortgage 17 that is not less than the compensation the loan origi-18 nator would receive for originating a mortgage loan 19
that is not a small dollar mortgage. 20
SEC. 402. SMALL DOLLAR MORTGAGE POINTS AND FEES. 21
(a) S MALL DOLLAR MORTGAGE DEFINED.—In this 22
section, the term ‘‘small dollar mortgage’’ means a mort-23 gage with an original principal obligation of less than 24 $100,000. 25
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(b) AMENDMENTS.— 1
(1) I N GENERAL .—Not later than 270 days 2
after the date of enactment of this Act, the Director 3 of the Bureau of Consumer Financial Protection, in 4
consultation with the Secretary of Housing and 5
Urban Development and the Director of the Federal 6
Housing Finance Agency, shall evaluate the impact 7
of the existing thresholds under section 1026.43 of 8
title 12, Code of Federal Regulations, on small dol-9
lar mortgage originations. 10
(2) RULEMAKING.—Following the evaluation re-11
quired under paragraph (1), the Director of the Bu-12
reau of Consumer Financial Protection may initiate 13
rulemaking to amend the limitations with respect to 14
points and fees under section 1026.43 of title 12, 15
Code of Federal Regulations, or any successor regu-16
lation, to encourage additional lending for small dol-17 lar mortgages. 18
SEC. 403. APPRAISAL INDUSTRY IMPROVEMENT ACT. 19
(a) APPRAISAL STANDARDS.— 20
(1) CERTIFICATION OR LICENSING .— 21
(A) I N GENERAL .—Section 202(g)(5) of 22
the National Housing Act (12 U.S.C. 23
1708(g)(5)) is amended— 24
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(i) by moving the paragraph two ems 1
to the left; and 2
(ii) by striking subparagraphs (A) and 3
(B) and inserting the following: 4
‘‘(A) be certified or licensed by the State in 5
which the property to be appraised is located, except 6 that a Federal employee who has as their primary 7
duty conducting appraisal-related activities and who 8
chooses to become a State-licensed or certified real 9
estate appraiser need only to be licensed or certified 10 in 1 State or territory to perform appraisals on 11
mortgages insured by the Federal Housing Adminis-12
tration in all States and territories; 13
‘‘(B) meet the requirements under the com-14
petency rule set forth in the Uniform Standards of 15
Professional Appraisal Practice before accepting an 16
assignment; and 17
‘‘(C) have demonstrated verifiable education in 18
the appraisal requirements established by the Fed-19
eral Housing Administration under this subsection, 20
which shall include the completion of a course or 21
seminar that educates appraisers on those appraisal 22
requirements, which shall be provided by— 23
‘‘(i) the Federal Housing Administration; 24
or 25
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‘‘(ii) a third party, so long as the course is 1
approved by the Secretary or a State appraiser 2
certifying or licensing agency.’’. 3
(B) A PPLICATION.—Subparagraph (C) of 4
section 202(g)(5) of the National Housing Act 5
(12 U.S.C. 1708(g)(5)), as added by subpara-6
graph (A), shall not apply with respect to any 7
certified appraiser approved by the Federal 8
Housing Administration to conduct appraisals 9
on property securing a mortgage to be insured 10
by the Federal Housing Administration on or 11
before the effective date under paragraph 12
(3)(C). 13
(2) COMPLIANCE WITH VERIFIABLE EDUCATION 14
AND COMPETENCY REQUIREMENTS .—On and after 15
the effective date under paragraph (3)(C), no ap-16
praiser may conduct an appraisal on a property se-17
curing a mortgage to be insured by the Federal 18
Housing Administration unless— 19
(A) the appraiser is in compliance with the 20
requirements under subparagraphs (A) and (B) 21
of section 202(g)(5) of such Act (12 U.S.C. 22
1708(g)(5)), as amended by paragraph (1); and 23
(B) if the appraiser was not approved by 24
the Federal Housing Administration to conduct 25
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appraisals on mortgages insured by the Federal 1
Housing Administration before the date on 2
which the mortgagee letter or guidance take ef-3
fect under paragraph (3)(C), the appraiser is in 4
compliance with subparagraph (C) of such sec-5
tion 202(g)(5). 6
(3) IMPLEMENTATION.—Not later than the 240 7
days after the date of enactment of this Act, the 8
Secretary of Housing and Urban Development shall 9
issue a mortgagee letter or guidance that shall— 10
(A) implement the amendments made by 11
paragraph (1); 12
(B) clearly set forth all of the specific re-13
quirements under section 202(g)(5) of the Na-14
tional Housing Act (12 U.S.C. 1708(g)(5)), as 15
amended by paragraph (1), for approval to con-16
duct appraisals on property secured by a mort-17
gage to be insured by the Federal Housing Ad-18
ministration, which shall include— 19
(i) providing that, before the effective 20
date of the mortgagee letter or guidance, 21
compliance with the requirements under 22
subparagraphs (A), (B), and (C) of such 23
section 202(g)(5), as amended by para-24
graph (1), shall be considered to fulfill the 25
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requirements under such subparagraphs; 1
and 2
(ii) providing a method for appraisers 3
to demonstrate such prior compliance; and 4
(C) take effect not later than the date that 5
is 180 days after the date on which the Sec-6
retary issues the mortgagee letter or guidance. 7
(b) A NNUAL REGISTRY FEES FOR APPRAISAL MAN-8
AGEMENT COMPANIES.—Section 1109(a) of the Financial 9
Institutions Reform, Recovery, and Enforcement Act of 10 1989 (12 U.S.C. 3338(a)) is amended, in the matter fol-11 lowing clause (ii) of paragraph (4)(B), by adding at the 12 end the following: ‘‘Subject to the approval of the Council, 13 the Appraisal Subcommittee may adjust fees established 14 under clause (i) or (ii) to carry out its functions under 15 this Act.’’. 16
(c) STATE CREDENTIALED TRAINEES.— 17
(1) M AINTENANCE ON NATIONAL REGISTRY .— 18
Section 1103(a) of the Financial Institutions Re-19
form, Recovery, and Enforcement Act of 1989 (12 20
U.S.C. 3332(a)) is amended— 21
(A) in paragraph (3)— 22
(i) by inserting ‘‘and State 23
credentialed trainee appraisers’’ after ‘‘li-24
censed appraisers’’; and 25
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(ii) by striking ‘‘and’’ at the end; 1
(B) by striking paragraph (4); 2
(C) by redesignating paragraphs (5) and 3
(6) as paragraphs (4) and (5), respectively; and 4
(D) in paragraph (4), as so redesignated— 5
(i) by striking ‘‘year. The report shall 6
also detail’’ and inserting ‘‘year, details’’; 7
(ii) by striking ‘‘provide’’ and insert-8
ing ‘‘provides’’; and 9
(iii) by striking the period at the end 10
and inserting ‘‘; and’’. 11
(2) ANNUAL REGISTRY FEES .— 12
(A) IN GENERAL .—Section 1109 of the Fi-13
nancial Institutions Reform, Recovery, and En-14
forcement Act of 1989 (12 U.S.C. 3338) is 15
amended— 16
(i) in the section heading, by striking 17
‘‘OR LICENSED ’’ and inserting ‘‘ , LI-18
CENSED, AND CREDENTIALED TRAIN -19
EE’’; and 20
(ii) in subsection (a)— 21
(I) in paragraph (1), by inserting 22
‘‘, and in the case of a State with a 23
supervisory or trainee program, a ros-24
ter listing individuals who have re-25
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ceived a State trainee credential’’ 1
after ‘‘this title’’; and 2
(II) by striking paragraph (2) 3
and inserting the following: 4
‘‘(2) transmit reports on the issuance and re-5
newal of licenses, certifications, credentials, sanc-6
tions, and disciplinary actions, including license, cre-7 dential, and certification revocations, on a timely 8
basis to the national registry of the Appraisal Sub-9
committee;’’. 10
(B) RULE OF CONSTRUCTION .—Nothing in 11
the amendments made by subparagraph (A) 12
shall require a State to establish or operate a 13
program for State credentialed trainee apprais-14
ers, as defined in paragraph (12) of section 15
1121 of the Financial Institutions Reform, Re-16
covery, and Enforcement Act of 1989, as added 17
by paragraph (4) of this subsection. 18
(3) T RANSACTIONS REQUIRING THE SERVICES 19
OF A STATE CERTIFIED APPRAISER .—Section 1113 20
of the Financial Institutions Reform, Recovery, and 21
Enforcement Act of 1989 (12 U.S.C. 3342) is 22
amended— 23
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(A) by striking ‘‘In determining’’ and in-1
serting ‘‘(a) I N GENERAL.—In determining’’; 2
and 3
(B) by adding at the end the following: 4
‘‘(b) U SE OF STATE CREDENTIALED TRAINEE AP-5
PRAISERS.—In performing an appraisal under this sec-6
tion, a State certified appraiser may use the assistance 7 of a State credentialed trainee appraiser or an unlicensed 8 trainee appraiser, except that a State certified appraiser 9 assisted by a trainee shall be liable for final work.’’. 10 (4) D EFINITION.—Section 1121 of the Finan-11
cial Institutions Reform, Recovery, and Enforcement 12
Act of 1989 (12 U.S.C. 3350) is amended by adding 13
at the end the following: 14
‘‘(12) S TATE CREDENTIALED TRAINEE AP -15
PRAISER.—The term ‘State credentialed trainee ap-16
praiser’ means an individual who— 17
‘‘(A) meets the minimum criteria estab-18
lished by the Appraiser Qualification Board for 19
a trainee appraiser credential; and 20
‘‘(B) is credentialed by a State appraiser 21
certifying and licensing agency.’’. 22
(d) GRANTS FOR WORKFORCE AND TRAINING.—Sec-23
tion 1109(b) of the Financial Institutions Reform, Recov-24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 133
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ery, and Enforcement Act of 1989 (12 U.S.C. 3338(b)) 1
is amended— 2
(1) in paragraph (5)(B), by striking ‘‘and’’ at 3
the end; 4
(2) in paragraph (6), by striking the period at 5
the end and inserting ‘‘; and’’; and 6
(3) by adding at the end the following: 7
‘‘(7) to make grants to State appraiser certi-8
fying and licensing agencies, nonprofit organizations, 9 and institutions of higher education to support the 10
carrying out of education and training activities or 11 other activities related to addressing appraiser in-12
dustry workforce needs, including recruiting and re-13
taining workforce talent, such as through scholar-14
ship assistance and career pipeline development.’’. 15
(e) A PPRAISAL SUBCOMMITTEE.—Section 1011 of 16
the Federal Financial Institutions Examination Council 17 Act of 1978 (12 U.S.C. 3310) is amended, in the first 18 sentence, by inserting ‘‘the Department of Veterans Af-19 fairs, the Rural Housing Service of the Department of Ag-20 riculture, the Department of Housing and Urban Develop-21 ment,’’ after ‘‘Financial Protection,’’. 22
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SEC. 404. HELPING MORE FAMILIES SAVE ACT. 1
Section 23 of the United States Housing Act of 1937 2
(42 U.S.C. 1437u) is amended by adding at the end the 3 following: 4
‘‘(p) ESCROW EXPANSION PILOT PROGRAM.— 5
‘‘(1) DEFINITIONS.—In this subsection: 6
‘‘(A) C OVERED FAMILY .—The term ‘cov-7
ered family’ means a family that receives assist-8
ance under section 8 or 9 of this Act and is en-9
rolled in the pilot program. 10
‘‘(B) E LIGIBLE ENTITY .—The term ‘eligi-11
ble entity’ means an entity described in sub-12
section (c)(2). 13
‘‘(C) P ILOT PROGRAM .—The term ‘pilot 14
program’ means the pilot program established 15
under paragraph (2). 16
‘‘(D) W ELFARE ASSISTANCE .—The term 17
‘welfare assistance’ has the meaning given the 18
term in section 984.103 of title 24, Code of 19
Federal Regulations, or any successor regula-20
tion. 21
‘‘(2) ESTABLISHMENT.—The Secretary shall es-22
tablish a pilot program under which the Secretary 23
shall select not more than 25 eligible entities to es-24 tablish and manage escrow accounts for not more 25
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than 5,000 covered families, in accordance with this 1
subsection. 2
‘‘(3) ESCROW ACCOUNTS .— 3
‘‘(A) I N GENERAL .—An eligible entity se-4
lected to participate in the pilot program— 5
‘‘(i) shall establish an interest-bearing 6
escrow account and place into the account 7
an amount equal to any increase in the 8
amount of rent paid by each covered family 9
in accordance with the provisions of section 10
3, 8(o), or 8(y), as applicable, that is at-11
tributable to increases in earned income by 12
the covered families during the participa-13
tion of each covered family in the pilot pro-14
gram; and 15
‘‘(ii) notwithstanding any other provi-16
sion of law, may use funds it controls 17
under section 8 or 9 for purposes of mak-18
ing the escrow deposit for covered families 19
assisted under, or residing in units assisted 20
under, section 8 or 9, respectively, pro-21
vided such funds are offset by the increase 22
in the amount of rent paid by the covered 23
family. 24
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‘‘(B) INCOME LIMITATION .—An eligible en-1
tity may not escrow any amounts for any cov-2
ered family whose adjusted income exceeds 80 3
percent of the area median income at the time 4
of enrollment. 5
‘‘(C) W ITHDRAWALS.—A covered family 6
shall be able to withdraw funds, including inter-7
est earned, from an escrow account established 8
by an eligible entity under the pilot program— 9
‘‘(i) after the covered family ceases to 10
receive welfare assistance; and 11
‘‘(ii)(I) not earlier than the date that 12
is 5 years after the date on which the eligi-13
ble entity establishes the escrow account 14
under this subsection; 15
‘‘(II) not later than the date that is 7 16
years after the date on which the eligible 17
entity establishes the escrow account under 18
this subsection, if the covered family choos-19
es to continue to participate in the pilot 20
program after the date that is 5 years 21
after the date on which the eligible entity 22
establishes the escrow account; 23
‘‘(III) on the date the covered family 24
ceases to receive housing assistance under 25
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section 8 or 9, if such date is earlier than 1
5 years after the date on which the eligible 2
entity establishes the escrow account; 3
‘‘(IV) earlier than 5 years after the 4
date on which the eligible entity establishes 5
the escrow account, if the covered family is 6
using the funds to advance a self-suffi-7
ciency goal as approved by the eligible enti-8
ty; or 9
‘‘(V) under other circumstances in 10
which the Secretary determines an exemp-11
tion for good cause is warranted. 12
‘‘(D) I NTERIM RECERTIFICATION .—For 13
purposes of the pilot program, a covered family 14
may recertify the income of the covered family 15
multiple times per year, as determined by the 16
Secretary, and not fewer than once per year. 17
‘‘(E) C ONTRACT OR PLAN .—A covered 18
family is not required to complete a standard 19
contract of participation or an individual train-20
ing and services plan in order to participate in 21
the pilot program. 22
‘‘(4) E FFECT OF INCREASES IN FAMILY IN -23
COME.—Any increase in the earned income of a cov-24
ered family during the enrollment of the family in 25
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the pilot program may not be considered as income 1
or a resource for purposes of eligibility of the family 2 for other benefits, or amount of benefits payable to 3
the family, under any program administered by the 4
Secretary. 5
‘‘(5) APPLICATION.— 6
‘‘(A) I N GENERAL .—An eligible entity 7
seeking to participate in the pilot program shall 8
submit to the Secretary an application— 9
‘‘(i) at such time, in such manner, 10
and containing such information as the 11
Secretary may require by notice; and 12
‘‘(ii) that includes the number of pro-13
posed covered families to be served by the 14
eligible entity under this subsection. 15
‘‘(B) G EOGRAPHIC AND ENTITY VARI -16
ETY.—The Secretary shall ensure that eligible 17
entities selected to participate in the pilot pro-18
gram— 19
‘‘(i) are located across various States 20
and in both urban and rural areas; and 21
‘‘(ii) vary by size and type, including 22
both public housing agencies and private 23
owners of projects receiving project-based 24
rental assistance under section 8. 25
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‘‘(6) N OTIFICATION AND OPT -OUT.—An eligible 1
entity participating in the pilot program shall— 2
‘‘(A) notify covered families of their enroll-3
ment in the pilot program; 4
‘‘(B) provide covered families with a de-5
tailed description of the pilot program, includ-6
ing how the pilot program will impact their rent 7
and finances; 8
‘‘(C) inform covered families that the fami-9
lies cannot simultaneously participate in the 10
pilot program and the Family Self-Sufficiency 11
program under this section; and 12
‘‘(D) provide covered families with the abil-13
ity to elect not to participate in the pilot pro-14
gram— 15
‘‘(i) not less than 2 weeks before the 16
date on which the escrow account is estab-17
lished under paragraph (3); and 18
‘‘(ii) at any point during the duration 19
of the pilot program. 20
‘‘(7) M AXIMUM RENTS .—During the term of 21
participation by a covered family in the pilot pro-22
gram, the amount of rent paid by the covered family 23
shall be calculated under the rental provisions of sec-24 tion 3 or 8(o), as applicable. 25
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‘‘(8) PILOT PROGRAM TIMELINE .— 1
‘‘(A) A WARDS.—Not later than 18 months 2
after the date of enactment of this subsection, 3
the Secretary shall select the eligible entities to 4
participate in the pilot program. 5
‘‘(B) E STABLISHMENT AND TERM OF AC -6
COUNTS.—An eligible entity selected to partici-7
pate in the pilot program shall— 8
‘‘(i) not later than 6 months after se-9
lection, establish escrow accounts under 10
paragraph (3) for covered families; and 11
‘‘(ii) maintain those escrow accounts 12
for not less than 5 years, or until the date 13
the family ceases to receive assistance 14
under section 8 or 9, and, at the discretion 15
of the covered family, not more than 7 16
years after the date on which the escrow 17
account is established. 18
‘‘(9) N ONPARTICIPATION AND HOUSING ASSIST -19
ANCE.— 20
‘‘(A) I N GENERAL .—Assistance under sec-21
tion 8 or 9 for a family that elects not to par-22
ticipate in the pilot program shall not be de-23
layed or denied by reason of such election. 24
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‘‘(B) N O TERMINATION .—Housing assist-1
ance may not be terminated as a consequence 2
of participating, or not participating, in the 3
pilot program under this subsection for any pe-4
riod of time. 5
‘‘(10) STUDY.—Not later than 8 years after the 6
date the Secretary selects eligible entities to partici-7 pate in the pilot program under this subsection, the 8
Secretary shall conduct a study and submit to the 9
Committee on Banking, Housing, and Urban Affairs 10
of the Senate and the Committee on Financial Serv-11
ices of the House of Representatives a report on out-12 comes for covered families under the pilot program, 13
which shall evaluate the effectiveness of the pilot 14
program in assisting families to achieve economic 15
independence and self-sufficiency, and the impact 16
coaching and supportive services, or the lack thereof, 17 had on individual incomes. 18
‘‘(11) W AIVERS.—To allow selected eligible en-19
tities to effectively administer the pilot program and 20 make the required escrow account deposits under 21
this subsection, the Secretary may waive require-22
ments under this section. 23
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‘‘(12) TERMINATION.—The pilot program under 1
this subsection shall terminate on the date that is 10 2 years after the date of enactment of this subsection. 3 ‘‘(13) AUTHORIZATION OF APPROPRIATIONS .— 4
‘‘(A) IN GENERAL .—There is authorized to 5
be appropriated to the Secretary for fiscal year 6
2026 such sums as may be necessary— 7
‘‘(i) for technical assistance related to 8
implementation of the pilot program; and 9
‘‘(ii) to carry out an evaluation of the 10
pilot program under paragraph (10). 11
‘‘(B) A VAILABILITY.—Any amounts appro-12
priated under this subsection shall remain avail-13
able until expended.’’. 14
SEC. 405. CHOICE IN AFFORDABLE HOUSING ACT. 15
(a) S ATISFACTION OF INSPECTION REQUIREMENTS 16
THROUGH PARTICIPATION IN OTHER HOUSING PRO-17
GRAMS.—Section 8(o)(8) of the United States Housing 18
Act of 1937 (42 U.S.C. 1437f(o)(8)), as amended by sec-19 tion 101(a) of the Housing Opportunity Through Mod-20
ernization Act of 2016 (Public Law 114–201; 130 Stat. 21 783), is amended by adding at the end the following: 22 ‘‘(I) S ATISFACTION OF INSPECTION RE -23
QUIREMENTS THROUGH PARTICIPATION IN 24
OTHER HOUSING PROGRAMS .— 25
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‘‘(i) L OW-INCOME HOUSING TAX 1
CREDIT-FINANCED BUILDINGS .—A dwell-2
ing unit shall be deemed to meet the in-3
spection requirements under this para-4
graph if— 5
‘‘(I) the dwelling unit is in a 6
building, the acquisition, rehabilita-7
tion, or construction of which was fi-8
nanced by a person who received a 9
low-income housing tax credit under 10
section 42 of the Internal Revenue 11
Code of 1986 in exchange for that fi-12
nancing; 13
‘‘(II) the dwelling unit was phys-14
ically inspected and passed inspection 15
as part of the low-income housing tax 16
credit program described in subclause 17
(I) during the preceding 12-month pe-18
riod; and 19
‘‘(III) the applicable public hous-20
ing agency is able to obtain the re-21
sults of the inspection described in 22
subclause (II). 23
‘‘(ii) H OME INVESTMENT PARTNER -24
SHIPS PROGRAM .—A dwelling shall be 25
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deemed to meet the inspection require-1
ments under this paragraph if— 2
‘‘(I) the dwelling unit is assisted 3
under the HOME Investment Part-4
nerships Program under title II of the 5
Cranston-Gonzalez National Afford-6
able Housing Act (42 U.S.C. 12721 et 7
seq.); 8
‘‘(II) the dwelling unit was phys-9
ically inspected and passed inspection 10
as part of the program described in 11
subclause (I) during the preceding 12- 12
month period; and 13
‘‘(III) the applicable public hous-14
ing agency is able to obtain the re-15
sults of the inspection described in 16
subclause (II). 17
‘‘(iii) R URAL HOUSING SERVICE .—A 18
dwelling unit shall be deemed to meet the 19
inspection requirements under this para-20
graph if— 21
‘‘(I) the dwelling unit is assisted 22
by the Rural Housing Service of the 23
Department of Agriculture; 24
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‘‘(II) the dwelling unit was phys-1
ically inspected and passed inspection 2
in connection with the assistance de-3
scribed in subclause (I) during the 4
preceding 12-month period; and 5
‘‘(III) the applicable public hous-6
ing agency is able to obtain the re-7
sults of the inspection described in 8
subclause (II). 9
‘‘(iv) R EMOTE OR VIDEO INSPEC -10
TIONS.—When complying with inspection 11
requirements for a housing unit located in 12
a rural or small area using assistance 13
under this subtitle, the Secretary may 14
allow a grantee to conduct a remote or 15
video inspection of a unit. 16
‘‘(v) R ULE OF CONSTRUCTION .— 17
Nothing in clause (i), (ii), (iii), or (iv) shall 18
be construed to affect the operation of a 19
housing program described in, or author-20
ized under a provision of law described in, 21
that clause.’’. 22
(b) PRE-APPROVAL OF UNITS.—Section 8(o)(8)(A) of 23
the United States Housing Act of 1937 (42 U.S.C. 24
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1437f(o)(8)(A)) is amended by adding at the end the fol-1 lowing: 2
‘‘(iv) I NITIAL INSPECTION PRIOR TO 3
LEASE AGREEMENT .— 4
‘‘(I) D EFINITION.—In this 5
clause, the term ‘new landlord’ means 6
an owner of a dwelling unit who has 7
not previously entered into a housing 8
assistance payment contract with a 9
public housing agency under this sub-10
section for any dwelling unit. 11
‘‘(II) EARLY INSPECTION .—Upon 12
the request of a new landlord, a public 13
housing agency may inspect the dwell-14
ing unit owned by the new landlord to 15
determine whether the unit meets the 16
housing quality standards under sub-17
paragraph (B) before the unit is se-18
lected by a tenant assisted under this 19
subsection. 20
‘‘(III) E FFECT.—An inspection 21
conducted under subclause (II) that 22
determines that the dwelling unit 23
meets the housing quality standards 24
under subparagraph (B) shall satisfy 25
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this subparagraph and subparagraph 1
(C) if the new landlord enters into a 2
lease agreement with a tenant assisted 3
under this subsection not later than 4
60 days after the date of the inspec-5
tion. 6
‘‘(IV) I NFORMATION WHEN FAM -7
ILY IS SELECTED .—When a public 8
housing agency selects a family to 9
participate in the tenant-based assist-10
ance program under this subsection, 11
the public housing agency shall in-12
clude in the information provided to 13
the family a list of dwelling units that 14
have been inspected under subclause 15
(II) and determined to meet the hous-16
ing quality standards under subpara-17
graph (B).’’. 18
TITLE V—PROGRAM REFORM 19
SEC. 501. REFORMING DISASTER RECOVERY ACT. 20
(a) DEFINITIONS.—In this section: 21
(1) D EPARTMENT.—The term ‘‘Department’’ 22
means the Department of Housing and Urban De-23
velopment. 24
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(2) F UND.—The term ‘‘Fund’’ means the 1
Long-Term Disaster Recovery Fund established 2
under subsection (c). 3
(3) S ECRETARY.—The term ‘‘Secretary’’ means 4
the Secretary of Housing and Urban Development. 5
(b) DUTIES OF THE DEPARTMENT OF HOUSING AND 6
URBAN DEVELOPMENT.— 7
(1) I N GENERAL .—The offices and officers of 8
the Department shall be responsible for— 9
(A) leading and coordinating the disaster- 10
related responsibilities of the Department under 11
the National Response Framework, the Na-12
tional Disaster Recovery Framework, and the 13
National Mitigation Framework; 14
(B) coordinating and administering pro-15
grams, policies, and activities of the Depart-16
ment related to disaster relief, long-term recov-17
ery, resiliency, and mitigation, including dis-18
aster recovery assistance under title I of the 19
Housing and Community Development Act of 20
1974 (42 U.S.C. 5301 et seq.); 21
(C) supporting disaster-impacted commu-22
nities as those communities specifically assess, 23
plan for, and address the housing stock and 24
housing needs in the transition from emergency 25
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shelters and interim housing to permanent 1
housing of those displaced, especially among 2
vulnerable populations and extremely low-, low- 3
, and moderate-income households; 4
(D) collaborating with the Federal Emer-5
gency Management Agency and the Small Busi-6
ness Administration and across the Department 7
to align disaster-related regulations and poli-8
cies, including incorporation of consensus-based 9
codes and standards and insurance purchase re-10
quirements, and ensuring coordination and re-11
ducing duplication among other Federal dis-12
aster recovery programs; 13
(E) promoting best practices in mitigation 14
and resilient land use planning; 15
(F) coordinating technical assistance, in-16
cluding mitigation, resiliency, and recovery 17
training and information on all relevant legal 18
and regulatory requirements, to entities that re-19
ceive disaster recovery assistance under title I 20
of the Housing and Community Development 21
Act of 1974 (42 U.S.C. 5301 et seq.) that dem-22
onstrate capacity constraints; and 23
(G) supporting State, Tribal, and local 24
governments in developing, coordinating, and 25
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maintaining their capacity for disaster resilience 1
and recovery and developing pre-disaster recov-2
ery and hazard mitigation plans, in coordina-3
tion with the Federal Emergency Management 4
Agency and other Federal agencies. 5
(2) E STABLISHMENT OF THE OFFICE OF DIS -6
ASTER MANAGEMENT AND RESILIENCY .—Section 4 7
of the Department of Housing and Urban Develop-8
ment Act (42 U.S.C. 3533) is amended by adding at 9
the end the following: 10
‘‘(i) O FFICE OF DISASTER MANAGEMENT AND RE-11
SILIENCY.— 12
‘‘(1) E STABLISHMENT.—There is established, 13
in the Office of the Secretary, the Office of Disaster 14 Management and Resiliency. 15
‘‘(2) D UTIES.—The Office of Disaster Manage-16
ment and Resiliency shall— 17
‘‘(A) be responsible for oversight and co-18
ordination of all departmental disaster pre-19
paredness and response responsibilities; and 20
‘‘(B) coordinate with the Federal Emer-21
gency Management Agency, the Small Business 22
Administration, and the Office of Community 23
Planning and Development and other offices of 24
the Department in supporting recovery and re-25
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silience activities to provide a comprehensive 1
approach in working with communities.’’. 2
(c) LONG-TERM DISASTER RECOVERY FUND.— 3
(1) E STABLISHMENT.—There is established in 4
the Treasury of the United States an account to be 5
known as the Long-Term Disaster Recovery Fund. 6
(2) DEPOSITS, TRANSFERS, AND CREDIT .— 7
(A) I N GENERAL .—The Fund shall consist 8
of amounts appropriated, transferred, and cred-9
ited to the Fund. 10
(B) T RANSFERS.—The following may be 11
transferred to the Fund: 12
(i) Amounts made available through 13
section 106(c)(4) of the Housing and Com-14
munity Development Act of 1974 (42 15
U.S.C. 5306(c)(4)) as a result of actions 16
taken under section 104(e), 111, or 124(j) 17
of such Act. 18
(ii) Any unobligated balances available 19
until expended remaining or subsequently 20
recaptured from amounts appropriated for 21
any disaster and related purposes under 22
the heading ‘‘Community Development 23
Fund’’ in any Act prior to the establish-24
ment of the Fund. 25
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(C) U SE OF TRANSFERRED AMOUNTS .— 1
Amounts transferred to the Fund shall be used 2
for the eligible uses described in paragraph (3). 3
(3) ELIGIBLE USES OF FUND .— 4
(A) I N GENERAL .—Amounts in the Fund 5
shall be available— 6
(i) to provide assistance in the form of 7
grants under section 124 of the Housing 8
and Community Development Act of 1974, 9
as added by subsection (d); and 10
(ii) for activities of the Department 11
that support the provision of such assist-12
ance, including necessary salaries and ex-13
penses, information technology, and capac-14
ity building, technical assistance, and pre- 15
disaster readiness. 16
(B) S ET ASIDE .—Of each amount appro-17
priated for or transferred to the Fund, 3 per-18
cent shall be made available for activities de-19
scribed in subparagraph (A)(ii), which shall be 20
in addition to other amounts made available for 21
those activities. 22
(C) T RANSFER OF FUNDS .—With respect 23
to amounts made available for use in accord-24
ance with subparagraph (B)— 25
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(i) amounts may be transferred to the 1
account under the heading for ‘‘Program 2
Offices—Salaries and Expenses—Commu-3
nity Planning and Development’’, or any 4
successor account, for the Department to 5
carry out activities described in paragraph 6
(1)(B); and 7
(ii) amounts may be used for the ac-8
tivities described in subparagraph (A)(ii) 9
and for the administrative costs of admin-10
istering any funds appropriated to the De-11
partment under the heading ‘‘Community 12
Planning and Development—Community 13
Development Fund’’ for any major disaster 14
declared under section 401 of the Robert 15
T. Stafford Disaster Relief and Emergency 16
Assistance Act (42 U.S.C. 5170) in any 17
Act before the establishment of the Fund. 18
(D) INSPECTOR GENERAL .— 19
(i) I N GENERAL .—Not less than one- 20
tenth of 1 percent of each series of awards 21
the Secretary makes from the Fund shall 22
be transferred to the account under the 23
heading ‘‘Office of Inspector General’’ for 24
the Department of Housing and Urban 25
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Development to support audit activities 1
and to investigate grantee noncompliance 2
with program requirements and waste, 3
fraud, and abuse as a result of appropria-4
tions made available through the Fund. 5
(ii) A VAILABILITY.—Funding under 6
clause (i) shall not be made available to 7
the Office of Inspector General until 90 8
days after the date on which the grantee 9
plan or supplemental plan for the grantee 10
is approved by the Secretary under sub-11
section (c) or (f)(3)(C) of section 124 of 12
the Housing and Community Development 13
Act of 1974, as added by subsection (d), is 14
approved by the Secretary. 15
(4) I NTERCHANGEABILITY OF PRIOR ADMINIS -16
TRATIVE AMOUNTS .—Any amounts appropriated in 17
any Act prior to the establishment of the Fund and 18
transferred to the account under the heading ‘‘Pro-19
gram Offices—Salaries and Expenses—Community 20
Planning and Development’’, or any predecessor ac-21
count, for the Department for the costs of admin-22
istering funds appropriated to the Department under 23
the heading ‘‘Community Planning and Develop-24
ment—Community Development Fund’’ for any 25
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major disaster declared under section 401 of the 1
Robert T. Stafford Disaster Relief and Emergency 2
Assistance Act (42 U.S.C. 5170) shall be available 3
for the costs of administering any such funds pro-4
vided by any prior or future Act, notwithstanding 5
the purposes for which those amounts were appro-6
priated and in addition to any amount provided for 7
the same purposes in other appropriations Acts. 8
(5) A VAILABILITY OF AMOUNTS .—Amounts ap-9
propriated, transferred, and credited to the Fund 10
shall remain available until expended. 11
(6) F ORMULA ALLOCATION .—Use of amounts 12
in the Fund for grants shall be made by formula al-13
location in accordance with the requirements of sec-14
tion 124(a) of the Housing and Community Develop-15
ment Act of 1974, as added by subsection (d). 16
(7) A UTHORIZATION OF APPROPRIATIONS .— 17
There are authorized to be appropriated to the Fund 18
such sums as may be necessary to respond to cur-19
rent or future major disasters declared under section 20 401 of the Robert T. Stafford Disaster Relief and 21
Emergency Assistance Act (42 U.S.C. 5179) for 22
grants under section 124 of the Housing and Com-23
munity Development Act of 1974, as added by sub-24
section (d). 25
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(d) E STABLISHMENT OF CDBG D ISASTER RECOV-1
ERY PROGRAM.—Title I of the Housing and Community 2
Development Act of 1974 (42 U.S.C. 5301 et seq.), as 3
amended by this Act, is amended— 4
(1) in section 102(a) (42 U.S.C. 5302(a))— 5
(A) in paragraph (20)— 6
(i) by redesignating subparagraph (B) 7
as subparagraph (C); 8
(ii) in subparagraph (C), as so redes-9
ignated, by inserting ‘‘or (B)’’ after ‘‘sub-10
paragraph (A)’’; and 11
(iii) by inserting after subparagraph 12
(A) the following: 13
‘‘(B) The term ‘persons of extremely low in-14
come’ means families and individuals whose income 15
levels do not exceed household income levels deter-16
mined by the Secretary under section 3(b)(2) of the 17
United States Housing Act of 1937 (42 U.S.C. 18
1437a(b)(2)(C)), except that the Secretary may pro-19
vide alternative definitions for the Commonwealth of 20 Puerto Rico, Guam, the Commonwealth of the 21
Northern Mariana Islands, the United States Virgin 22
Islands, and American Samoa.’’; and 23
(B) by adding at the end the following: 24
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‘‘(25) The term ‘major disaster’ has the mean-1
ing given the term in section 102 of the Robert T. 2
Stafford Disaster Relief and Emergency Assistance 3
Act (42 U.S.C. 5122).’’; 4
(2) in section 106(c)(4) (42 U.S.C. 5
5306(c)(4))— 6
(A) in subparagraph (A)— 7
(i) by striking ‘‘declared by the Presi-8
dent under the Robert T. Stafford Disaster 9
Relief and Emergency Assistance Act’’; 10
(ii) inserting ‘‘States for use in non-11
entitlement areas and to’’ before ‘‘metro-12
politan cities’’; and 13
(iii) inserting ‘‘major’’ after ‘‘affected 14
by the’’; 15
(B) in subparagraph (C)— 16
(i) by striking ‘‘metropolitan city or’’ 17
and inserting ‘‘State, metropolitan city, 18
or’’; 19
(ii) by striking ‘‘city or county’’ and 20
inserting ‘‘State, city, or county’’; and 21
(iii) by inserting ‘‘major’’ before ‘‘dis-22
aster’’; 23
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(C) in subparagraph (D), by striking ‘‘met-1
ropolitan cities and’’ and inserting ‘‘States, 2
metropolitan cities, and’’; 3
(D) in subparagraph (F)— 4
(i) by striking ‘‘metropolitan city or’’ 5
and inserting ‘‘State, metropolitan city, 6
or’’; and 7
(ii) by inserting ‘‘major’’ before ‘‘dis-8
aster’’; and 9
(E) in subparagraph (G), by striking ‘‘met-10
ropolitan city or’’ and inserting ‘‘State, metro-11
politan city, or’’; 12
(3) in section 122 (42 U.S.C. 5321), by striking 13
‘‘disaster under title IV of the Robert T. Stafford 14
Disaster Relief and Emergency Assistance Act’’ and 15
inserting ‘‘major disaster’’; and 16
(4) by adding at the end the following: 17
‘‘SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DIS-18
ASTER RECOVERY PROGRAM. 19
‘‘(a) A UTHORIZATION, F ORMULA, AND ALLOCA-20
TION.— 21
‘‘(1) A UTHORIZATION.—The Secretary is au-22
thorized to make community development block 23
grant disaster recovery grants from the Long-Term 24
Disaster Recovery Fund established under section 25
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501(c) of the Renewing Opportunity in the Amer-1
ican Dream to Housing Act of 2025 (hereinafter re-2
ferred to as the ‘Fund’) for necessary expenses for 3
activities authorized under subsection (f)(1) related 4 to disaster relief, long-term recovery, restoration of 5 housing and infrastructure, economic revitalization, 6
and mitigation in the most impacted and distressed 7
areas resulting from a catastrophic major disaster. 8
‘‘(2) GRANT AWARDS .—Grants shall be awarded 9
under this section to States, units of general local 10 government, and Indian tribes based on capacity and 11
the concentration of damage, as determined by the 12
Secretary, to support the efficient and effective ad-13 ministration of funds. 14
‘‘(3) S ECTION 106 ALLOCATIONS .—Grants 15
under this section shall not be considered relevant to 16 the formula allocations made pursuant to section 17
106. 18
‘‘(4) FEDERAL REGISTER NOTICE .— 19
‘‘(A) I N GENERAL .—Not later than 30 20
days after the date of enactment of this section, 21
the Secretary shall issue a notice in the Federal 22
Register containing the latest formula allocation 23
methodologies used to determine the total esti-24
mate of unmet needs related to housing, eco-25
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nomic revitalization, and infrastructure in the 1
most impacted and distressed areas resulting 2
from a catastrophic major disaster. 3
‘‘(B) P UBLIC COMMENT .—If the Secretary 4
has not already requested public comment on 5
the formula described in the notice required by 6
subparagraph (A), the Secretary shall solicit 7
public comments on— 8
‘‘(i) the methodologies described in 9
subparagraph (A) and seek alternative 10
methods for formula allocation within a 11
similar total amount of funding; 12
‘‘(ii) the impact of formula methodolo-13
gies on rural areas and Tribal areas; 14
‘‘(iii) adjustments to improve tar-15
geting to the most serious needs; 16
‘‘(iv) objective criteria for grantee ca-17
pacity and concentration of damage to in-18
form grantee determinations and minimum 19
allocation thresholds; and 20
‘‘(v) research and data to inform an 21
additional amount to be provided for miti-22
gation depending on type of disaster, which 23
shall be up to 18 percent of the total esti-24
mate of unmet needs. 25
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‘‘(5) REGULATIONS.— 1
‘‘(A) I N GENERAL .—The Secretary shall, 2
by regulation, establish a formula to allocate as-3
sistance from the Fund to the most impacted 4
and distressed areas resulting from a cata-5
strophic major disaster. 6
‘‘(B) FORMULA REQUIREMENTS .—The for-7
mula established under subparagraph (A) 8
shall— 9
‘‘(i) set forth criteria to determine 10
that a major disaster is catastrophic, which 11
criteria shall consider the presence of a 12
high concentration of damaged housing or 13
businesses that individual, State, Tribal, 14
and local resources could not reasonably be 15
expected to address without additional 16
Federal assistance or other nationally en-17
compassing data that the Secretary deter-18
mines are adequate to assess relative im-19
pact and distress across geographic areas; 20
‘‘(ii) include a methodology for identi-21
fying most impacted and distressed areas, 22
which shall consider unmet serious needs 23
related to housing, economic revitalization, 24
and infrastructure; 25
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‘‘(iii) include an allocation calculation 1
that considers the unmet serious needs re-2
sulting from the catastrophic major dis-3
aster and an additional amount up to 18 4
percent for activities to reduce risks of loss 5
resulting from other natural disasters in 6
the most impacted and distressed area, pri-7
marily for the benefit of low- and mod-8
erate-income persons, with particular focus 9
on activities that reduce repetitive loss of 10
property and critical infrastructure; and 11
‘‘(iv) establish objective criteria for 12
periodic review and updates to the formula 13
to reflect changes in available data. 14
‘‘(C) M INIMUM ALLOCATION THRESH -15
OLD.—The Secretary shall, by regulation, es-16
tablish a minimum allocation threshold. 17
‘‘(D) I NTERIM ALLOCATION .—Until such 18
time that the Secretary issues final regulations 19
under this paragraph, the Secretary shall— 20
‘‘(i) allocate assistance from the Fund 21
using the formula allocation methodology 22
published in accordance with paragraph 23
(4); and 24
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‘‘(ii) include an additional amount for 1
mitigation of up to 18 percent of the total 2
estimate of unmet need. 3
‘‘(6) ALLOCATION OF FUNDS .— 4
‘‘(A) I N GENERAL .—The Secretary shall— 5
‘‘(i) except as provided in clause (ii), 6
not later than 90 days after the President 7
declares a major disaster, use best avail-8
able data to determine whether the major 9
disaster is catastrophic and qualifies for 10
assistance under the formula described in 11
paragraph (4) or (5), unless data is insuf-12
ficient to make this determination; and 13
‘‘(ii) if the best available data is insuf-14
ficient to make the determination required 15
under clause (i) within the 90-day period 16
described in that clause, the Secretary 17
shall determine whether the major disaster 18
qualifies when sufficient data becomes 19
available, but in no case shall the Sec-20
retary make the determination later than 21
120 days after the declaration of the major 22
disaster. 23
‘‘(B) A NNOUNCEMENT OF ALLOCATION .— 24
If amounts are available in the Fund at the 25
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time the Secretary determines that the major 1
disaster is catastrophic and qualifies for assist-2
ance under the formula described in paragraph 3
(4) or (5), the Secretary shall immediately an-4
nounce an allocation for a grant under this sec-5
tion. 6
‘‘(C) A DDITIONAL AMOUNTS .—If addi-7
tional amounts are appropriated to the Fund 8
after amounts are allocated under subpara-9
graph (B), the Secretary shall announce an al-10
location or additional allocation (if a prior allo-11
cation under subparagraph (B) was less than 12
the formula calculation) within 15 days of any 13
such appropriation. 14
‘‘(7) PRELIMINARY FUNDING .— 15
‘‘(A) IN GENERAL .—To speed recovery, the 16
Secretary is authorized to allocate and award 17
preliminary grants from the Fund before mak-18
ing a determination under paragraph (6)(A) if 19
the Secretary projects, based on a preliminary 20
assessment of impact and distress, that a major 21
disaster is catastrophic and would likely qualify 22
for funding under the formula described in 23
paragraph (4) or (5). 24
‘‘(B) AMOUNT.— 25
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‘‘(i) M AXIMUM.—The Secretary may 1
award preliminary funding under subpara-2
graph (A) in an amount that is not more 3
than $5,000,000. 4
‘‘(ii) S LIDING SCALE .—The Secretary 5
shall, by regulation, establish a sliding 6
scale for preliminary funding awarded 7
under subparagraph (A) based on the size 8
of the preliminary assessment of impact 9
and distress. 10
‘‘(C) U SE OF FUNDS .—The uses of pre-11
liminary funding awarded under subparagraph 12
(A) shall be limited to eligible activities that— 13
‘‘(i) in the determination of the Sec-14
retary, will support faster recovery, im-15
prove the ability of the grantee to assess 16
unmet recovery needs, plan for the preven-17
tion of improper payments, and reduce 18
fraud, waste, and abuse; and 19
‘‘(ii) may include evaluating the in-20
terim housing, permanent housing, and 21
supportive service needs of the disaster im-22
pacted community, with special attention 23
to vulnerable populations, such as homeless 24
and low- to moderate-income households, 25
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to inform the grantee action plan required 1
under subsection (c). 2
‘‘(D) C ONSIDERATION OF FUNDING .—Pre-3
liminary funding awarded under subparagraph 4
(A)— 5
‘‘(i) is not subject to the certification 6
requirements of subsection (h)(1); and 7
‘‘(ii) shall not be considered when cal-8
culating the amount of the grant used for 9
administrative costs, technical assistance, 10
and planning activities that are subject to 11
the requirements under subsection (f)(2). 12
‘‘(E) W AIVER.—To expedite the use of 13
preliminary funding for activities described in 14
this paragraph, the Secretary may waive or 15
specify alternative requirements to the require-16
ments of this section in accordance with sub-17
section (i). 18
‘‘(F) AMENDED AWARD .— 19
‘‘(i) IN GENERAL .—An award for pre-20
liminary funding under subparagraph (A) 21
may be amended to add any subsequent 22
amount awarded because of a determina-23
tion by the Secretary that a major disaster 24
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is catastrophic and qualifies for assistance 1
under the formula. 2
‘‘(ii) A PPLICABILITY.—Notwith-3
standing subparagraph (D), amounts pro-4
vided by an amendment under clause (i) 5
are subject to the requirements under sub-6
sections (f)(1) and (h)(1) and other re-7
quirements on grant funds under this sec-8
tion. 9
‘‘(G) T ECHNICAL ASSISTANCE .—Concur-10
rent with the allocation of any preliminary 11
funding awarded under this paragraph, the Sec-12
retary shall assign or provide technical assist-13
ance to the recipient of the grant. 14
‘‘(b) INTERCHANGEABILITY.— 15
‘‘(1) IN GENERAL .—The Secretary is authorized 16
to approve the use of grants under this section to be 17 used interchangeably and without limitation for the 18
same activities in the most impacted and distressed 19
areas resulting from a declaration of another cata-20
strophic major disaster that qualifies for assistance 21 under the formula established under paragraph (4) 22
or (5) of subsection (a) or a major disaster for 23
which the Secretary allocated funds made available 24
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under the heading ‘Community Development Fund’ 1
in any Act prior to the establishment of the Fund. 2
‘‘(2) R EQUIREMENTS.—The Secretary shall es-3
tablish requirements to expedite the use of grants 4
under this section for the purpose described in para-5
graph (1). 6
‘‘(3) E MERGENCY DESIGNATION .—Amounts 7
repurposed pursuant to this subsection that were 8
previously designated by Congress as an emergency 9
requirement pursuant to the Balanced Budget and 10
Emergency Deficit Control Act of 1985 or a concur-11
rent resolution on the budget are designated by the 12
Congress as being for an emergency requirement 13
pursuant to section 4001(a)(1) of S. Con. Res. 14 14
(117th Congress), the concurrent resolution on the 15
budget for fiscal year 2022, and to legislation estab-16 lishing fiscal year 2026 budget enforcement in the 17
House of Representatives. 18
‘‘(c) GRANTEE PLANS.— 19
‘‘(1) R EQUIREMENT.—Not later than 90 days 20
after the date on which the Secretary announces a 21
grant allocation under this section, unless an exten-22 sion is granted by the Secretary, the grantee shall 23
submit to the Secretary a plan for approval describ-24
ing— 25
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‘‘(A) the activities the grantee will carry 1
out with the grant under this section; 2
‘‘(B) the criteria of the grantee for award-3
ing assistance and selecting activities; 4
‘‘(C) how the use of the grant under this 5
section will address disaster relief, long-term re-6
covery, restoration of housing and infrastruc-7
ture, economic revitalization, and mitigation in 8
the most impacted and distressed areas; 9
‘‘(D) how the use of the grant funds for 10
mitigation is consistent with hazard mitigation 11
plans submitted to the Federal Emergency 12
Management Agency under section 322 of the 13
Robert T. Stafford Disaster Relief and Emer-14
gency Assistance Act (42 U.S.C. 5165); 15
‘‘(E) the estimated amount proposed to be 16
used for activities that will benefit persons of 17
low and moderate income; 18
‘‘(F) how the use of grant funds will repair 19
and replace existing housing stock for vulner-20
able populations, including low- to moderate-in-21
come households; 22
‘‘(G) how the grantee will address the pri-23
orities described in paragraph (5); 24
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‘‘(H) how uses of funds are proportional to 1
unmet needs, as required under paragraph (6); 2
‘‘(I) for State grantees that plan to dis-3
tribute grant amounts to units of general local 4
government, a description of the method of dis-5
tribution; and 6
‘‘(J) such other information as may be de-7
termined by the Secretary in regulation. 8
‘‘(2) P UBLIC CONSULTATION .—To permit pub-9
lic examination and appraisal of the plan described 10
in paragraph (1), to enhance the public account-11
ability of grantee, and to facilitate coordination of 12 activities with different levels of government, when 13 developing the plan or substantial amendments pro-14
posed to the plan required under paragraph (1), a 15
grantee shall— 16
‘‘(A) publish the plan before adoption; 17
‘‘(B) provide citizens, affected units of 18
general local government, and other interested 19
parties with reasonable notice of, and oppor-20
tunity to comment on, the plan, with a public 21
comment period of not less than 14 days; 22
‘‘(C) consider comments received before 23
submission to the Secretary; 24
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‘‘(D) follow a citizen participation plan for 1
disaster assistance adopted by the grantee that, 2
at a minimum, provides for participation of 3
residents of the most impacted and distressed 4
area affected by the major disaster that re-5
sulted in the grant under this section and other 6
considerations established by the Secretary; and 7
‘‘(E) undertake any consultation with in-8
terested parties as may be determined by the 9
Secretary in regulation. 10
‘‘(3) APPROVAL.—The Secretary shall— 11
‘‘(A) by regulation, specify criteria for the 12
approval, partial approval, or disapproval of a 13
plan submitted under paragraph (1), including 14
approval of substantial amendments to the 15
plan; 16
‘‘(B) review a plan submitted under para-17
graph (1) upon receipt of the plan; 18
‘‘(C) allow a grantee to revise and resub-19
mit a plan or substantial amendment to a plan 20
under paragraph (1) that the Secretary dis-21
approves; 22
‘‘(D) by regulation, specify criteria for 23
when the grantee shall be required to provide 24
the required revisions to a disapproved plan or 25
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substantial amendment under paragraph (1) for 1
public comment prior to resubmission of the 2
plan or substantial amendment to the Sec-3
retary; and 4
‘‘(E) approve, partially approve, or dis-5
approve a plan or substantial amendment under 6
paragraph (1) not later than 60 days after the 7
date on which the plan or substantial amend-8
ment is received by the Secretary. 9
‘‘(4) L OW- AND MODERATE -INCOME OVERALL 10
BENEFIT.— 11
‘‘(A) U SE OF FUNDS .—Not less than 70 12
percent of a grant made under this section shall 13
be used for activities that benefit persons of low 14
and moderate income unless the Secretary— 15
‘‘(i) specifically finds that— 16
‘‘(I) there is compelling need to 17
reduce the percentage for the grant; 18
and 19
‘‘(II) the housing needs of low- 20
and moderate-income persons have 21
been addressed; and 22
‘‘(ii) issues a waiver and alternative 23
requirement specific to the grant pursuant 24
to subsection (i) to lower the percentage. 25
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‘‘(B) R EGULATIONS.—The Secretary shall, 1
by regulation, establish protocols that reflect 2
the required use of funds under subparagraph 3
(A), including persons with extremely and very 4
low incomes. 5
‘‘(5) P RIORITIZATION.—The grantee shall 6
prioritize activities that— 7
‘‘(A) assist persons with extremely low-, 8
low-, and moderate-incomes and other vulner-9
able populations to better recover from and 10
withstand future disasters; 11
‘‘(B) address housing needs arising from a 12
disaster, or those needs present prior to a dis-13
aster, including the needs of both renters and 14
homeowners; 15
‘‘(C) prolong the life of housing and infra-16
structure; 17
‘‘(D) use cost-effective means of preventing 18
harm to people and property and incorporate 19
protective features and redundancies; and 20
‘‘(E) other measures that will assure the 21
continuation of critical services during future 22
disasters. 23
‘‘(6) P ROPORTIONAL ALLOCATION .—For each 24
specific disaster, a grantee under this section shall 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 174
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allocate grant funds proportional to unmet needs be-1
tween housing activities for renters and homeowners, 2
economic revitalization, and infrastructure unless the 3 Secretary specifically finds that— 4
‘‘(A) there is a compelling need for a dis-5
proportional allocation among those unmet 6
needs; and 7
‘‘(B) the disproportional allocation de-8
scribed in subparagraph (A) is not inconsistent 9
with the requirements under paragraph (4). 10
‘‘(7) DISASTER RISK MITIGATION .— 11
‘‘(A) D EFINITION.—In this paragraph, the 12
term ‘hazard-prone areas’— 13
‘‘(i) means areas identified by the 14
Secretary, in consultation with the Admin-15
istrator of the Federal Emergency Man-16
agement Agency, at risk from natural haz-17
ards that threaten property damage or 18
health, safety, and welfare, such as floods, 19
wildfires (including Wildland-Urban Inter-20
face areas), earthquakes, lava inundation, 21
tornados, and high winds; and 22
‘‘(ii) includes areas having special 23
flood hazards as identified under the Flood 24
Disaster Protection Act of 1973 (42 25
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•S 2651 RS
U.S.C. 4002 et seq.) or the National Flood 1
Insurance Act of 1968 (42 U.S.C. 4001 et 2
seq.). 3
‘‘(B) H AZARD-PRONE AREAS .—The Sec-4
retary, in consultation with the Administrator 5
of the Federal Emergency Management Agency, 6
shall establish minimum construction standards, 7
insurance purchase requirements, and other re-8
quirements for the use of grant funds in haz-9
ard-prone areas. 10
‘‘(C) SPECIAL FLOOD HAZARDS .— 11
‘‘(i) I N GENERAL .—For the areas de-12
scribed in subparagraph (A)(ii), the insur-13
ance purchase requirements established 14
under subparagraph (B) shall meet or ex-15
ceed the requirements under section 102(a) 16
of the Flood Disaster Protection Act of 17
1973 (42 U.S.C. 4012a(a)). 18
‘‘(ii) T REATMENT AS FINANCIAL AS -19
SISTANCE.—All grants under this section 20
shall be treated as financial assistance for 21
purposes of section 3(a)(3) of the Flood 22
Disaster Protection Act of 1973 (42 23
U.S.C. 4003(a)(3)). 24
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‘‘(D) C ONSIDERATION OF FUTURE 1
RISKS.—The Secretary may consider future 2
risks to protecting property and health, safety, 3
and general welfare, and the likelihood of those 4
risks, when making the determination of or 5
modification to hazard-prone areas under this 6
paragraph. 7
‘‘(8) RELOCATION.— 8
‘‘(A) I N GENERAL .—The Uniform Reloca-9
tion Assistance and Real Property Acquisition 10
Policies Act of 1970 (42 U.S.C. 4601 et seq.) 11
shall apply to activities assisted under this sec-12
tion to the extent determined by the Secretary 13
in regulation, or as provided in waivers or alter-14
native requirements authorized in accordance 15
with subsection (i). 16
‘‘(B) P OLICY.—Each grantee under this 17
section shall establish a relocation assistance 18
policy that— 19
‘‘(i) minimizes displacement and de-20
scribes the benefits available to persons 21
displaced as a direct result of acquisition, 22
rehabilitation, or demolition in connection 23
with an activity that is assisted by a grant 24
under this section; and 25
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‘‘(ii) includes any appeal rights or 1
other requirements that the Secretary es-2
tablishes by regulation. 3
‘‘(d) CERTIFICATIONS.—Any grant under this section 4
shall be made only if the grantee certifies to the satisfac-5 tion of the Secretary that— 6
‘‘(1) the grantee is in full compliance with the 7
requirements under subsection (c)(2); 8
‘‘(2) for grants other than grants to Indian 9
tribes, the grant will be conducted and administered 10 in conformity with the Civil Rights Act of 1964 (42 11
U.S.C. 2000a et seq.) and the Fair Housing Act (42 12
U.S.C. 3601 et seq.); 13
‘‘(3) the projected use of funds has been devel-14
oped so as to give maximum feasible priority to ac-15
tivities that will benefit recipients described in sub-16 section (c)(4)(A) and activities described in sub-17
section (c)(5), and may also include activities that 18 are designed to aid in the prevention or elimination 19 of slum and blight to support disaster recovery, meet 20 other community development needs having a par-21
ticular urgency because existing conditions pose a 22
serious and immediate threat to the health or wel-23
fare of the community where other financial re-24
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•S 2651 RS
leviate future threats to human populations, critical 1 natural resources, and property that an analysis of 2
hazards shows are likely to result from natural dis-3
asters in the future; 4
‘‘(4) the grant funds shall principally benefit 5
persons of low- and moderate-income as described in 6
subsection (c)(4)(A); 7
‘‘(5) for grants other than grants to Indian 8
tribes, within 24 months of receiving a grant or at 9
the time of its 3- or 5-year update, whichever is 10
sooner, the grantee will review and make modifica-11
tions to its non-disaster housing and community de-12
velopment plans and strategies required by sub-13
sections (c) and (m) of section 104 to reflect the dis-14 aster recovery needs identified by the grantee and 15
consistency with the plan under subsection (c)(1); 16
‘‘(6) the grantee will not attempt to recover any 17
capital costs of public improvements assisted in 18
whole or part under this section by assessing any 19
amount against properties owned and occupied by 20
persons of low and moderate income, including any 21
fee charged or assessment made as a condition of 22
obtaining access to such public improvements, un-23
less— 24
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•S 2651 RS
‘‘(A) funds received under this section are 1
used to pay the proportion of such fee or as-2
sessment that relates to the capital costs of 3
such public improvements that are financed 4
from revenue sources other than under this 5
chapter; or 6
‘‘(B) for purposes of assessing any amount 7
against properties owned and occupied by per-8
sons of moderate income, the grantee certifies 9
to the Secretary that the grantee lacks suffi-10
cient funds received under this section to com-11
ply with the requirements of subparagraph (A); 12
‘‘(7) the grantee will comply with the other pro-13
visions of this title that apply to assistance under 14 this section and with other applicable laws; 15
‘‘(8) the grantee will follow a relocation assist-16
ance policy that includes any minimum requirements 17
identified by the Secretary; and 18
‘‘(9) the grantee will adhere to construction 19
standards, insurance purchase requirements, and 20
other requirements for development in hazard-prone 21
areas described in subsection (c)(7). 22
‘‘(e) PERFORMANCE REVIEWS AND REPORTING.— 23
‘‘(1) IN GENERAL .—The Secretary shall, on not 24
less frequently than an annual basis until the close-25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 180
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out of a particular grant allocation, make such re-1
views and audits as may be necessary or appropriate 2
to determine whether a grantee under this section 3
has— 4
‘‘(A) carried out activities using grant 5
funds in a timely manner; 6
‘‘(B) met the performance targets estab-7
lished by paragraph (2); 8
‘‘(C) carried out activities using grant 9
funds in accordance with the requirements of 10
this section, the other provisions of this title 11
that apply to assistance under this section, and 12
other applicable laws; and 13
‘‘(D) a continuing capacity to carry out ac-14
tivities in a timely manner. 15
‘‘(2) P ERFORMANCE TARGETS .—The Secretary 16
shall develop and make publicly available critical 17
performance targets for review, which shall include 18
spending thresholds for each year from the date on 19
which funds are obligated by the Secretary to the 20
grantee until such time all funds have been ex-21
pended. 22
‘‘(3) FAILURE TO MEET TARGETS .— 23
‘‘(A) S USPENSION.—If a grantee under 24
this section fails to meet 1 or more critical per-25
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•S 2651 RS
formance targets under paragraph (2), the Sec-1
retary may temporarily suspend the grant. 2
‘‘(B) P ERFORMANCE IMPROVEMENT 3
PLAN.—If the Secretary suspends a grant 4
under subparagraph (A), the Secretary shall 5
provide to the grantee a performance improve-6
ment plan with the specific requirements needed 7
to lift the suspension within a defined time pe-8
riod. 9
‘‘(C) R EPORT.—If a grantee fails to meet 10
the spending thresholds established under para-11
graph (2), the grantee shall submit to the Sec-12
retary, the appropriate committees of Congress, 13
and each member of Congress who represents a 14
district or State of the grantee a written report 15
identifying technical capacity, funding, or other 16
Federal or State impediments affecting the abil-17
ity of the grantee to meet the spending thresh-18
olds. 19
‘‘(4) C OLLECTION OF INFORMATION AND RE -20
PORTING.— 21
‘‘(A) R EQUIREMENT TO REPORT .—A 22
grantee under this section shall provide to the 23
Secretary such information as the Secretary 24
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•S 2651 RS
may determine necessary for adequate oversight 1
of the grant program under this section. 2
‘‘(B) P UBLIC AVAILABILITY .—Subject to 3
subparagraph (D), the Secretary shall make in-4
formation submitted under subparagraph (A) 5
available to the public and to the Inspector 6
General for the Department of Housing and 7
Urban Development. 8
‘‘(C) S UMMARY STATUS REPORTS .—To in-9
crease transparency and accountability of the 10
grant program under this section the Secretary 11
shall, on not less frequently than an annual 12
basis, post on a public facing dashboard sum-13
mary status reports for all active grants under 14
this section that includes— 15
‘‘(i) the status of funds by activity; 16
‘‘(ii) the percentages of funds allo-17
cated and expended to benefit low- and 18
moderate-income communities; 19
‘‘(iii) performance targets, spending 20
thresholds, and accomplishments; and 21
‘‘(iv) other information the Secretary 22
determines to be relevant for transparency. 23
‘‘(D) C ONSIDERATIONS.—In carrying out 24
this paragraph, the Secretary shall take such 25
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•S 2651 RS
actions as may be necessary to ensure that per-1
sonally identifiable information regarding appli-2
cants for assistance provided from funds made 3
available under this section is not made publicly 4
available. 5
‘‘(E) RESEARCH PARTNERSHIPS .— 6
‘‘(i) I N GENERAL .—The Secretary 7
may, upon a formal request from research-8
ers, make disaggregated information avail-9
able to the requestor that is specific and 10
relevant to the research being conducted, 11
and for the purposes of researching pro-12
gram impact and efficacy. 13
‘‘(ii) P RIVACY PROTECTIONS .—In 14
making information available under clause 15
(i), the Secretary shall protect personally 16
identifiable information as required under 17
section 552a of title 5, United States Code 18
(commonly known as the ‘Privacy Act of 19
1974’). 20
‘‘(f) ELIGIBLE ACTIVITIES.— 21
‘‘(1) I N GENERAL .—Activities assisted under 22
this section— 23
‘‘(A) may include activities permitted 24
under section 105 or other activities permitted 25
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by the Secretary by waiver or alternative re-1
quirement pursuant to subsection (i); and 2
‘‘(B) shall be related to disaster relief, 3
long-term recovery, restoration of housing and 4
infrastructure, economic revitalization, and 5
mitigation in the most impacted and distressed 6
areas resulting from the major disaster for 7
which the grant was awarded. 8
‘‘(2) P ROHIBITION.—Grant funds under this 9
section may not be used for costs reimbursable by, 10
or for which funds have been made available by, the 11
Federal Emergency Management Agency, or the 12
United States Army Corps of Engineers. 13
‘‘(3) A DMINISTRATIVE COSTS , TECHNICAL AS -14
SISTANCE AND PLANNING .— 15
‘‘(A) I N GENERAL .—The Secretary shall 16
establish in regulation the maximum grant 17
amounts a grantee may use for administrative 18
costs, technical assistance and planning activi-19
ties, taking into consideration size of grant, 20
complexity of recovery, and other factors as de-21
termined by the Secretary, but not to exceed 8 22
percent for administration and 20 percent in 23
total. 24
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‘‘(B) A VAILABILITY.—Amounts available 1
for administrative costs for a grant under this 2
section shall be available for eligible administra-3
tive costs of the grantee for any grant made 4
under this section, without regard to a par-5
ticular disaster. 6
‘‘(C) SUPPLEMENTAL PLAN .— 7
‘‘(i) I N GENERAL .—Grantees may 8
submit to the Secretary an optional supple-9
mental plan to the grantee plan required 10
under this title specifically for administra-11
tive costs, which shall include a description 12
of the use of all grant funds for adminis-13
trative costs, including for any eligible pre- 14
award program administrative costs, and 15
how such uses will prepare the grantee to 16
more effectively and expeditiously admin-17
ister funds provided under the full plan. 18
‘‘(ii) U SE OF FUNDS .—If a supple-19
mental plan is approved under clause (i), a 20
grantee may draw down the aforemen-21
tioned administrative funds before the full 22
grantee plan is approved. 23
‘‘(iii) W AIVERS.—In carrying out this 24
subparagraph, the Secretary may include 25
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any waivers or alternative requirements in 1
accordance with subsection (i). 2
‘‘(4) P ROGRAM INCOME .—Notwithstanding any 3
other provision of law, any grantee under this sec-4
tion may retain program income that is realized 5
from grants made by the Secretary under this sec-6
tion if the grantee agrees that the grantee will uti-7
lize the program income in accordance with the re-8
quirements for grants under this section, except that 9 the Secretary may— 10
‘‘(A) by regulation, exclude from consider-11
ation as program income any amounts deter-12
mined to be so small that compliance with this 13
paragraph creates an unreasonable administra-14
tive burden on the grantee; or 15
‘‘(B) permit the grantee to transfer re-16
maining program income to the other grants of 17
the grantee under this title upon closeout of the 18
grant. 19
‘‘(5) PROHIBITION ON USE OF ASSISTANCE FOR 20
EMPLOYMENT RELOCATION ACTIVITIES .— 21
‘‘(A) IN GENERAL .—Grants under this sec-22
tion may not be used to assist directly in the 23
relocation of any industrial or commercial plant, 24
facility, or operation, from one area to another 25
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area, if the relocation is likely to result in a sig-1
nificant loss of employment in the labor market 2
area from which the relocation occurs. 3
‘‘(B) A PPLICABILITY.—The prohibition 4
under subparagraph (A) shall not apply to a 5
business that was operating in the disaster-de-6
clared labor market area before the incident 7
date of the applicable disaster and has since 8
moved, in whole or in part, from the affected 9
area to another State or to a labor market area 10
within the same State to continue business. 11
‘‘(6) R EQUIREMENTS.—Grants under this sec-12
tion are subject to the requirements of this section, 13 the other provisions of this title that apply to assist-14 ance under this section, and other applicable laws, 15
unless modified by waivers or alternative require-16
ments in accordance with subsection (i). 17
‘‘(g) ENVIRONMENTAL REVIEW.— 18
‘‘(1) ADOPTION.—A recipient of funds provided 19
under this section that uses the funds to supplement 20 Federal assistance provided under section 203, 402, 21
403, 404, 406, 407, 408(c)(4), 428, or 502 of the 22
Robert T. Stafford Disaster Relief and Emergency 23
Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 24
5172, 5173, 5174(c)(4), 5189f, 5192) may adopt, 25
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without review or public comment, any environ-1
mental review, approval, or permit performed by a 2
Federal agency, and such adoption shall satisfy the 3
responsibilities of the recipient with respect to such 4 environmental review, approval, or permit under sec-5
tion 104(g)(1), so long as the actions covered by the 6 existing environmental review, approval, or permit 7
and the actions proposed for these supplemental 8
funds are substantially the same. 9
‘‘(2) A PPROVAL OF RELEASE OF FUNDS .—Not-10
withstanding section 104(g)(2), the Secretary or a 11
State may, upon receipt of a request for release of 12
funds and certification, immediately approve the re-13
lease of funds for an activity or project to be as-14
sisted under this section if the recipient has adopted 15 an environmental review, approval, or permit under 16
paragraph (1) or the activity or project is categori-17 cally excluded from review under the National Envi-18
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 19
seq.). 20
‘‘(3) U NITS OF GENERAL LOCAL GOVERN -21
MENT.—The provisions of section 104(g)(4) shall 22
apply to assistance under this section that a State 23
distributes to a unit of general local government. 24
‘‘(h) FINANCIAL CONTROLS AND PROCEDURES.— 25
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‘‘(1) IN GENERAL .—The Secretary shall develop 1
requirements and procedures to demonstrate that a 2
grantee under this section— 3
‘‘(A) has adequate financial controls and 4
procurement processes; 5
‘‘(B) has adequate procedures to detect 6
and prevent fraud, waste, abuse, and duplica-7
tion of benefit; and 8
‘‘(C) maintains a comprehensive and pub-9
licly accessible website. 10
‘‘(2) C ERTIFICATION.—Before making a grant 11
under this section, the Secretary shall certify that 12 the grantee has in place proficient processes and 13
procedures to comply with the requirements devel-14
oped under paragraph (1), as determined by the 15
Secretary. 16
‘‘(3) C OMPLIANCE BEFORE ALLOCATION .—The 17
Secretary may permit a State, unit of general local 18
government, or Indian tribe to demonstrate compli-19
ance with the requirements for adequate financial 20
controls developed under paragraph (1) before a dis-21
aster occurs and before receiving an allocation for a 22 grant under this section. 23
‘‘(4) DUPLICATION OF BENEFITS .— 24
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‘‘(A) I N GENERAL .—Funds made available 1
under this section shall be used in accordance 2
with section 312 of the Robert T. Stafford Dis-3
aster Relief and Emergency Assistance Act (42 4
U.S.C. 5155), as amended by section 1210 of 5
the Disaster Recovery Reform Act of 2018 (di-6
vision D of Public Law 115–254), and such 7
rules as may be prescribed under such section 8
312. 9
‘‘(B) P ENALTIES.—In any case in which 10
the use of grant funds under this section results 11
in a prohibited duplication of benefits, the 12
grantee shall— 13
‘‘(i) apply an amount equal to the 14
identified duplication to any allowable costs 15
of the award consistent with actual, imme-16
diate cash requirement; 17
‘‘(ii) remit any excess amounts to the 18
Secretary to be credited to the obligated, 19
undisbursed balance of the grant con-20
sistent with requirements on Federal pay-21
ments applicable to such grantee; and 22
‘‘(iii) if excess amounts under clause 23
(ii) are identified after the period of per-24
formance or after the closeout of the 25
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•S 2651 RS
award, remit such amounts to the Sec-1
retary to be credited to the Fund. 2
‘‘(C) F AILURE TO COMPLY .—Any grantee 3
provided funds under this section or from prior 4
Appropriations Acts under the heading ‘Com-5
munity Development Fund’ for purposes related 6
to major disasters that fails to comply with sec-7
tion 312 of the Robert T. Stafford Disaster Re-8
lief and Emergency Assistance Act (42 U.S.C. 9
5155) or fails to satisfy penalties to resolve a 10
duplication of benefits shall be subject to rem-11
edies for noncompliance under section 111, un-12
less the Secretary publishes a determination in 13
the Federal Register that it is not in the best 14
interest of the Federal Government to pursue 15
remedial actions. 16
‘‘(i) WAIVERS AND ALTERNATIVE REQUIREMENTS.— 17
‘‘(1) I N GENERAL .—In administering grants 18
under this section, the Secretary may waive, or 19
specify alternative requirements for, any provision of 20 any statute or regulation that the Secretary admin-21
isters in connection with the obligation by the Sec-22
retary or the use by the grantee of those funds (ex-23
cept for requirements related to fair housing, non-24
discrimination, labor standards, the environment, 25
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and the requirements of this section that do not ex-1
pressly authorize modifications by waiver or alter-2
native requirement), if the Secretary makes a public 3
finding that good cause exists for the waiver or al-4
ternative requirement. 5
‘‘(2) E FFECTIVE DATE .—A waiver or alter-6
native requirement described in paragraph (1) shall 7
not take effect before the date that is 5 days after 8
the date of publication of the waiver or alternative 9
requirement on the website of the Department of 10
Housing and Urban Development or the effective 11
date for any regulation published in the Federal 12
Register. 13
‘‘(3) P UBLIC NOTIFICATION .—The Secretary 14
shall notify the public of all waivers or alternative 15 requirements described in paragraph (1) in accord-16
ance with the requirements of section 7(q)(3) of the 17 Department of Housing and Urban Development 18
Act (42 U.S.C. 3535(q)(3)). 19
‘‘(j) UNUSED AMOUNTS.— 20
‘‘(1) D EADLINE TO USE AMOUNTS .—A grantee 21
under this section shall use an amount equal to the 22
grant within 6 years beginning on the date on which 23
the Secretary obligates the amounts to the grantee, 24
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as such period may be extended under paragraph 1
(4). 2
‘‘(2) R ECAPTURE.—The Secretary shall recap-3
ture and credit to the Fund any amount that is un-4
used by a grantee under this section upon the earlier 5 of— 6
‘‘(A) the date on which the grantee notifies 7
the Secretary that the grantee has completed all 8
activities identified in the disaster grantee’s 9
plan under subsection (c); or 10
‘‘(B) the expiration of the 6-year period 11
described in paragraph (1), as such period may 12
be extended under paragraph (4). 13
‘‘(3) R ETENTION OF FUNDS .—Notwithstanding 14
paragraph (1), the Secretary— 15
‘‘(A) shall allow a grantee under this sec-16
tion to retain amounts needed to close out 17
grants; and 18
‘‘(B) may allow a grantee under this sec-19
tion to retain up to 10 percent of the remaining 20
funds to support maintenance of the minimal 21
capacity to launch a new program in the event 22
of a future disaster and to support pre-disaster 23
long-term recovery and mitigation planning. 24
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‘‘(4) E XTENSION OF PERIOD FOR USE OF 1
FUNDS.—The Secretary may extend the 6-year pe-2
riod described in paragraph (1) by not more than 4 3
years, or not more than 6 years for mitigation activi-4 ties, if— 5
‘‘(A) the grantee submits to the Sec-6
retary— 7
‘‘(i) written documentation of the exi-8
gent circumstances impacting the ability of 9
the grantee to expend funds that could not 10
be anticipated; or 11
‘‘(ii) a justification that such request 12
is necessary due to the nature and com-13
plexity of the program and projects; and 14
‘‘(B) the Secretary submits a written jus-15
tification for the extension to the Committee on 16
Appropriations and the Committee on Banking, 17
Housing, and Urban Affairs of the Senate and 18
the Committee on Appropriations and the Com-19
mittee on Financial Services of the House of 20
Representatives that specifies the period of that 21
extension. 22
‘‘(k) DEFINITION.—In this section, the term ‘Indian 23
tribe’ has the meaning given the term in section 4 of the 24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00194 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 195
•S 2651 RS
Native American Housing Assistance and Self-Determina-1 tion Act of 1996 (25 U.S.C. 4103).’’. 2
(e) REGULATIONS.— 3
(1) P ROPOSED RULES .—Following consultation 4
with the Federal Emergency Management Agency, 5
the Small Business Administration, and other Fed-6
eral agencies, not later than 6 months after the date 7 of enactment of this Act, the Secretary shall issue 8
proposed rules to carry out this Act and the amend-9
ments made by this Act and shall provide a 90-day 10
period for submission of public comments on those 11
proposed rules. 12
(2) FINAL RULES .—Not later than 1 year after 13
the date of enactment of this Act, the Secretary 14
shall issue final regulations to carry out section 124 15 of the Housing and Community Development Act of 16
1974, as added by subsection (d). 17
(f) COORDINATION OF DISASTER RECOVERY ASSIST-18
ANCE, B ENEFITS, AND DATA WITH OTHER FEDERAL 19
AGENCIES.— 20
(1) COORDINATION OF DISASTER RECOVERY AS -21
SISTANCE.—In order to ensure a comprehensive ap-22
proach to Federal disaster relief, long-term recovery, 23 restoration of housing and infrastructure, economic 24
revitalization, and mitigation in the most impacted 25
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and distressed areas resulting from a catastrophic 1
major disaster, the Secretary shall coordinate with 2
the Federal Emergency Management Agency, to the 3
greatest extent practicable, in the implementation of 4 assistance authorized under section 124 of the 5
Housing and Community Development Act of 1974, 6
as added by subsection (d). 7
(2) D ATA SHARING AGREEMENTS .—To support 8
the coordination of data to prevent duplication of 9
benefits with other Federal disaster recovery pro-10
grams while also expediting recovery and reducing 11
burden on disaster survivors, the Department shall 12
establish data sharing agreements that safeguard 13
privacy with relevant Federal agencies to ensure dis-14 aster benefits effectively and efficiently reach in-15
tended beneficiaries, while using effective means of 16 preventing harm to people and property. 17
(3) D ATA TRANSFER FROM FEMA AND SBA TO 18
HUD.—As permitted and deemed necessary for effi-19
cient program execution, and consistent with a com-20
puter matching agreement entered into under para-21
graph (6)(A), the Administrator of the Federal 22
Emergency Management Agency and the Adminis-23
trator of the Small Business Administration shall 24
provide data on disaster applicants to the Depart-25
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ment, including, when necessary, personally identifi-1
able information, disaster recovery needs, and re-2
sources determined eligible for, and amounts ex-3
pended, to the Secretary for all major disasters de-4
clared by the President pursuant to section 401 of 5
Robert T. Stafford Disaster Relief and Emergency 6
Assistance Act (42 U.S.C. 5170) for the purpose of 7
providing additional assistance to disaster survivors 8 and prevent duplication of benefits. 9
(4) D ATA TRANSFERS FROM HUD TO HUD 10
GRANTEES.—The Secretary is authorized to provide 11
to grantees under section 124 of the Housing and 12
Community Development Act of 1974, as added by 13
subsection (d), offices of the Department, technical 14 assistance providers, and lenders information that in 15 the determination of the Secretary is reasonably 16
available and appropriate to inform the provision of 17 assistance after a major disaster, including informa-18 tion provided to the Secretary by the Administrator 19
of the Federal Emergency Management Agency, the 20
Administrator of the Small Business Administration, 21
or other Federal agencies. 22
(5) DATA TRANSFERS FROM HUD GRANTEES TO 23
HUD, FEMA, AND SBA .— 24
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(A) R EPORTING.—Grantees under section 1
124 of the Housing and Community Develop-2
ment Act of 1974, as added by subsection (d), 3
shall report information requested by the Sec-4
retary on households, businesses, and other en-5
tities assisted and the type of assistance pro-6
vided. 7
(B) S HARING INFORMATION .—The Sec-8
retary shall share information collected under 9
subparagraph (A) with the Federal Emergency 10
Management Agency, the Small Business Ad-11
ministration, and other Federal agencies to sup-12
port the planning and delivery of disaster recov-13
ery and mitigation assistance and other related 14
purposes. 15
(6) PRIVACY PROTECTION .—The Secretary may 16
make and receive data transfers authorized under 17
this subsection, including the use and retention of 18
that data for computer matching programs, to in-19
form the provision of assistance, assess disaster re-20 covery needs, and prevent the duplication of benefits 21 and other waste, fraud, and abuse, provided that— 22
(A) the Secretary enters an information 23
sharing agreement or a computer matching 24
agreement, when required by section 522a of 25
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title 5, United States Code (commonly known 1
as the ‘‘Privacy Act of 1974’’), with the Admin-2
istrator of the Federal Emergency Management 3
Agency, the Administrator of the Small Busi-4
ness Administration, or other Federal agencies 5
covering the transfer of data; 6
(B) the Secretary publishes intent to dis-7
close data in the Federal Register; 8
(C) notwithstanding subparagraphs (A) 9
and (B), section 552a of title 5, United States 10
Code, or any other law, the Secretary is author-11
ized to share data with an entity identified in 12
paragraph (4), and the entity is authorized to 13
use the data as described in this section, if the 14
Secretary enters a data sharing agreement with 15
the entity before sharing or receiving any infor-16
mation under transfers authorized by this sec-17
tion, which data sharing agreement shall— 18
(i) in the determination of the Sec-19
retary, include measures adequate to safe-20
guard the privacy and personally identifi-21
able information of individuals; and 22
(ii) include provisions that describe 23
how the personally identifiable information 24
of an individual will be adequately safe-25
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guarded and protected, which requires con-1
sultation with the Secretary and the head 2
of each Federal agency the data of which 3
is being shared subject to the agreement. 4
SEC. 502. HOME INVESTMENT PARTNERSHIPS REAUTHOR-5
IZATION AND IMPROVEMENT ACT. 6
(a) A UTHORIZATION.—Section 205 of the Cranston- 7
Gonzalez National Affordable Housing Act (42 U.S.C. 8
12724) is amended to read as follows: 9
‘‘SEC. 205. AUTHORIZATION OF PROGRAM. 10
‘‘The HOME Investment Partnerships Program 11
under subtitle A is hereby authorized. There is authorized 12 such sums as may be necessary to carry out subtitle A.’’. 13 (b) I NCREASE IN PROGRAM ADMINISTRATION RE-14
SOURCES.—Subtitle A of title II of the Cranston-Gonzalez 15 National Affordable Housing Act (42 U.S.C. 12741 et 16
seq.) is amended— 17
(1) in section 212(c) (42 U.S.C. 12742(c)), by 18
striking ‘‘10 percent’’ and inserting ‘‘15 percent’’; 19 and 20
(2) in section 220(b) (42 U.S.C. 12750(b))— 21
(A) by striking ‘‘R ECOGNITION.—’’ and all 22
that follows through ‘‘A contribution’’ and in-23
serting the following: ‘‘R ECOGNITION.—A con-24
tribution’’; and 25
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(B) by striking paragraph (2). 1
(c) MODIFICATION OF JURISDICTIONS ELIGIBLE FOR 2
REALLOCATIONS.—Section 217(d)(3) of the Cranston- 3
Gonzalez National Affordable Housing Act (42 U.S.C. 4
12747(d)(3)) is amended by striking ‘‘L IMITATION.—Un-5 less otherwise specified’’ and inserting the following: 6 ″LIMITATIONS.— ‘‘ 7
‘‘(A) R EMOVAL OF PARTICIPATING JURIS -8
DICTIONS FROM REALLOCATION .—The Sec-9
retary may, upon a finding that such jurisdic-10
tion has failed to meet or comply with the re-11
quirements of this title, remove a participating 12
jurisdiction from participation in reallocations 13
of funds made available under this title. 14
‘‘(B) R EALLOCATION TO SAME TYPE OF 15
ENTITY.—Unless otherwise specified’’. 16
(d) A MENDMENTS TO QUALIFICATION AS AFFORD-17
ABLE HOUSING.—Section 215 of the Cranston-Gonzalez 18
National Affordable Housing Act (42 U.S.C. 12745) is 19 amended— 20
(1) in subsection (a)— 21
(A) in paragraph (1)(E), by striking all 22
that follows ‘‘purposes of this Act,’’ and insert-23
ing the following: ‘‘except upon a foreclosure by 24
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a lender (or upon other transfer in lieu of fore-1
closure) if such action— 2
‘‘(i) recognizes any contractual or 3
legal rights of public agencies, nonprofit 4
sponsors, or others to take actions that 5
would avoid termination of low-income af-6
fordability in the case of foreclosure or 7
transfer in lieu of foreclosure; and 8
‘‘(ii) is not for the purpose of avoiding 9
low-income affordability restrictions, as de-10
termined by the Secretary; and’’; and 11
(B) by adding at the end the following: 12
‘‘(7) SMALL-SCALE HOUSING .— 13
‘‘(A) D EFINITION.—In this paragraph, the 14
term ‘small-scale housing’ means housing with 15
not more than 4 rental units. 16
‘‘(B) A LTERNATIVE REQUIREMENTS .— 17
Small-scale housing shall qualify as affordable 18
housing under this title if— 19
‘‘(i) the housing bears rents that com-20
ply with paragraph (1)(A); 21
‘‘(ii) each unit is occupied by a house-22
hold that qualifies as a low-income family; 23
‘‘(iii) the housing complies with para-24
graph (1)(D); 25
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‘‘(iv) the housing meets the require-1
ments under paragraph (1)(E); and 2
‘‘(v) the participating jurisdiction 3
monitors ongoing compliance of the hous-4
ing with requirements of this title in a 5
manner consistent with the purposes of 6
section 226(b), as determined by the Sec-7
retary.’’; and 8
(2) in subsection (b)(1), by inserting ‘‘(defined 9
as the amount borrowed by the homebuyer to pur-10
chase the home, or estimated value after rehabilita-11
tion, which may be adjusted to account for the limits 12 on future value imposed by the resale restriction)’’ 13 after ‘‘purchase price’’. 14
(e) ELIMINATION OF COMMITMENT DEADLINE.— 15
(1) I N GENERAL .—Section 218 of the Cran-16
ston-Gonzalez National Affordable Housing Act (42 17
U.S.C. 12748) is amended— 18
(A) by striking subsection (g); and 19
(B) by redesignating subsection (h) as sub-20
section (g). 21
(2) C ONFORMING AMENDMENT .—Section 22
218(c) of the Cranston-Gonzalez National Affordable 23
Housing Act (42 U.S.C. 12748(c)) is amended— 24
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(A) in paragraph (1), by adding ‘‘and’’ at 1
the end; 2
(B) by striking paragraph (2); 3
(C) by redesignating paragraph (3) as 4
paragraph (2); and 5
(D) in paragraph (2), as so redesignated, 6
by striking ‘‘section 224’’ and inserting ‘‘section 7
223’’. 8
(f) REFORM OF HOMEOWNERSHIP RESALE RESTRIC-9
TIONS.—Section 215 of the Cranston-Gonzalez National 10 Affordable Housing Act (42 U.S.C. 12745), as amended 11 by this section, is amended— 12
(1) in subsection (b)— 13
(A) in paragraph (2), by redesignating 14
subparagraphs (A), (B), and (C) as clauses (i), 15
(ii), and (iii), respectively, and adjusting the 16
margins accordingly; 17
(B) by striking paragraph (3); 18
(C) by redesignating paragraphs (1), (2), 19
and (4) as subparagraphs (A), (B), and (D), re-20
spectively, and adjusting the margins accord-21
ingly; 22
(D) by inserting after subparagraph (B), 23
as so redesignated, the following: 24
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‘‘(C) is subject to restrictions that are es-1
tablished by the participating jurisdiction and 2
determined by the Secretary to be appropriate, 3
including with respect to the useful life of the 4
property, to— 5
‘‘(i) require that any subsequent pur-6
chase of the property be— 7
‘‘(I) only by a person who meets 8
the qualifications specified under sub-9
paragraph (B); and 10
‘‘(II) at a price that is deter-11
mined by a formula or method estab-12
lished by the participating jurisdiction 13
that provides the owner with a reason-14
able return on investment, which may 15
include a percentage of the cost of 16
any improvements; or 17
‘‘(ii) recapture the investment pro-18
vided under this title in order to assist 19
other persons in accordance with the re-20
quirements of this title, except where there 21
are no net proceeds or where the net pro-22
ceeds are insufficient to repay the full 23
amount of the assistance; and’’; 24
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(E) by striking ‘‘Housing that is for home-1
ownership’’ and inserting the following: 2
‘‘(1) Q UALIFICATION.—Housing that is for 3
homeownership’’; and 4
(F) by adding at the end the following: 5
‘‘(2) P URCHASE BY COMMUNITY LAND 6
TRUST.—Notwithstanding subparagraph (C)(i) of 7
paragraph (1) and under terms determined by the 8
Secretary, the Secretary may permit a participating 9
jurisdiction to allow a community land trust that 10
used assistance provided under this subtitle for the 11 development of housing that meets the criteria under 12 paragraph (1), to acquire the housing— 13
‘‘(A) in accordance with the terms of the 14
preemptive purchase option, lease, covenant on 15
the land, or other similar legal instrument of 16
the community land trust when the terms and 17
rights in the preemptive purchase option, lease, 18
covenant, or legal instrument are and remain 19
subject to the requirements of this title; 20
‘‘(B) when the purchase is for— 21
‘‘(i) the purpose of— 22
‘‘(I) entering into the chain of 23
title; 24
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‘‘(II) enabling a purchase by a 1
person who meets the qualifications 2
specified under paragraph (1)(B) and 3
is on a waitlist maintained by the 4
community land trust, subject to en-5
forcement by the participating juris-6
diction of all applicable requirements 7
of this subtitle, as determined by the 8
Secretary; 9
‘‘(III) performing necessary reha-10
bilitation and improvements; or 11
‘‘(IV) adding a subsidy to pre-12
serve affordability, which may be from 13
Federal or non-Federal sources; or 14
‘‘(ii) another purpose determined ap-15
propriate by the Secretary; and 16
‘‘(C) if, within a reasonable period of time 17
after the applicable purpose under subpara-18
graph (B) of this paragraph is fulfilled, as de-19
termined by the Secretary, the housing is then 20
sold to a person who meets the qualifications 21
specified under paragraph (1)(B). 22
‘‘(3) S USPENSION OR WAIVER OF REQUIRE -23
MENTS FOR MILITARY MEMBERS .—A participating 24
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the Secretary, may suspend or waive a requirement 1
under paragraph (1)(B) with respect to housing that 2
otherwise meets the criteria under paragraph (1) if 3
the owner of the housing— 4
‘‘(A) is a member of a regular component 5
of the armed forces or a member of the Na-6
tional Guard on full-time National Guard duty, 7
active Guard and Reserve duty, or inactive-duty 8
training (as those terms are defined in section 9
101(d) of title 10, United States Code); and 10
‘‘(B) has received— 11
‘‘(i) temporary duty orders to deploy 12
with a military unit or military orders to 13
deploy as an individual acting in support of 14
a military operation, to a location that is 15
not within a reasonable distance from the 16
housing, as determined by the Secretary, 17
for a period of not less than 90 days; or 18
‘‘(ii) orders for a permanent change of 19
station. 20
‘‘(4) S USPENSION OR WAIVER OF REQUIRE -21
MENTS FOR HEIR OR BENEFICIARY OF DECEASED 22
OWNER.—Notwithstanding subparagraph (C) of 23
paragraph (1), housing that meets the criteria under 24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00208 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 209
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that paragraph prior to the death of an owner may 1
continue to qualify as affordable housing if— 2
‘‘(A) the housing is the principal residence 3
of an heir or beneficiary of the deceased owner, 4
as defined by the Secretary; and 5
‘‘(B) the heir or beneficiary, in accordance 6
with terms established by the Secretary, as-7
sumes the duties and obligations of the de-8
ceased owner with respect to funds provided 9
under this title.’’. 10
(g) HOME PROPERTY INSPECTIONS.—Section 226(b) 11
of the Cranston-Gonzalez National Affordable Housing 12 Act (42 U.S.C. 12756(b)) is amended— 13
(1) by striking ‘‘Each participating jurisdic-14
tion’’ and inserting the following: 15
‘‘(1) IN GENERAL .—Each participating jurisdic-16
tion’’; and 17
(2) by striking ‘‘Such review shall include’’ and 18
all that follows and inserting the following: 19
‘‘(2) ON-SITE INSPECTIONS .— 20
‘‘(A) I NSPECTIONS BY UNITS OF GENERAL 21
LOCAL GOVERNMENT .—A review conducted 22
under paragraph (1) by a participating jurisdic-23
tion that is a unit of general local government 24
shall include an on-site inspection to determine 25
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compliance with housing codes and other appli-1
cable regulations. 2
‘‘(B) I NSPECTIONS BY STATES .—A review 3
conducted under paragraph (1) by a partici-4
pating jurisdiction that is a State shall include 5
an on-site inspection to determine compliance 6
with a national standard as determined by the 7
Secretary. 8
‘‘(3) INCLUSION IN PERFORMANCE REPORT AND 9
PUBLICATION.—A participating jurisdiction shall in-10
clude in the performance report of the participating 11 jurisdiction submitted to the Secretary under section 12 108(a), and make available to the public, the results 13 of each review conducted under paragraph (1).’’. 14
(h) REVISIONS TO STRENGTHEN ENFORCEMENT AND 15
PENALTIES FOR NONCOMPLIANCE.—Section 223 of the 16
Cranston-Gonzalez National Affordable Housing Act (42 17 U.S.C. 12753) is amended— 18
(1) in the heading, by striking ‘‘ PENALTIES 19
FOR MISUSE OF FUNDS ’’ and inserting ‘‘ PRO-20
GRAM ENFORCEMENT AND PENALTIES FOR 21
NONCOMPLIANCE’’; 22
(2) in the matter preceding paragraph (1), by 23
inserting after ‘‘any provision of this subtitle’’ the 24 following: ‘‘, including any provision applicable 25
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throughout the period required by section 1
215(a)(1)(E) and applicable regulations,’’; 2
(3) in paragraph (2), by striking ‘‘or’’ at the 3
end; 4
(4) in paragraph (3), by striking the period at 5
the end and inserting ‘‘; or’’; and 6
(5) by adding at the end the following: 7
‘‘(4) reduce payments to the participating juris-8
diction under this subtitle by an amount equal to the 9 amount of such payments which were not expended 10
in accordance with this title.’’. 11
(i) T ENANT AND PARTICIPANT PROTECTIONS FOR 12
SMALL-SCALE AFFORDABLE HOUSING.—Section 225 of 13
the Cranston-Gonzalez National Affordable Housing Act 14 (42 U.S.C. 12755) is amended by adding at the end the 15 following: 16
‘‘(e) T ENANT SELECTION FOR SMALL-SCALE HOUS-17
ING.—Paragraphs (2) through (4) of subsection (d) shall 18 not apply to the owner of small-scale housing (as defined 19 in section 215(a)(7)).’’. 20
(j) M ODIFICATION OF RULES RELATED TO COMMU-21
NITY HOUSING DEVELOPMENT ORGANIZATIONS.— 22
(1) D EFINITIONS OF COMMUNITY HOUSING DE -23
VELOPMENT ORGANIZATION AND COMMUNITY LAND 24
TRUST.— 25
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(A) I N GENERAL .—Section 104 of the 1
Cranston-Gonzalez National Affordable Hous-2
ing Act (42 U.S.C. 12704) is amended— 3
(i) in paragraph (6)(B)— 4
(I) by striking ‘‘significant’’; and 5
(II) by striking ‘‘and otherwise’’ 6
and inserting ‘‘or as otherwise deter-7
mined acceptable by the Secretary’’; 8
and 9
(ii) by adding at the end the fol-10
lowing: 11
‘‘(26) The term ‘community land trust’ means 12
a nonprofit entity or a State or local government or 13 instrumentality thereof that— 14
‘‘(A) is not managed by, or an affiliate of, 15
a for-profit organization; 16
‘‘(B) has as a primary purpose acquiring, 17
developing, or holding land to provide housing 18
that is permanently affordable to low- and mod-19
erate-income persons, and monitors properties 20
to ensure affordability is preserved; 21
‘‘(C) provides housing described in sub-22
paragraph (B) using a ground lease, deed cov-23
enant, or other similar legally enforceable meas-24
ure, as determined by the Secretary, that— 25
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‘‘(i) keeps the housing affordable to 1
low- and moderate-income persons for not 2
less than 30 years; and 3
‘‘(ii) enables low- and moderate-in-4
come persons to rent or purchase the hous-5
ing for homeownership; and 6
‘‘(D) maintains preemptive purchase op-7
tions to purchase the property so the housing 8
remains affordable to low-and moderate-income 9
persons.’’. 10
(B) E LIMINATION OF EXISTING DEFINI -11
TION OF COMMUNITY LAND TRUST .—Section 12
233 of the Cranston-Gonzalez National Afford-13
able Housing Act (42 U.S.C. 12773) is amend-14
ed by striking subsection (f). 15
(2) S ET-ASIDE FOR COMMUNITY HOUSING DE -16
VELOPMENT ORGANIZATIONS .—Section 231 of the 17
Cranston-Gonzalez National Affordable Housing Act 18
(42 U.S.C. 12771) is amended— 19
(A) in subsection (a), by striking ‘‘to be 20
developed, sponsored, or owned by community 21
housing development organizations’’ and insert-22
ing ‘‘when a community housing development 23
organization materially participates in the own-24
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•S 2651 RS
ership or development of such housing, as de-1
termined by the Secretary’’; 2
(B) by striking subsection (b) and insert-3
ing the following: 4
‘‘(b) R ECAPTURE AND REUSE.—If any funds re-5
served under subsection (a) remain uninvested for a period 6 of 24 months, then the Secretary shall make such funds 7 available to the participating jurisdiction for any eligible 8 activities under this title without regard to whether a com-9 munity housing development organization materially par-10 ticipates in the use of the funds.’’; and 11
(C) by striking subsection (c). 12
(k) T ECHNICAL CORRECTIONS.—The Cranston-Gon-13
zalez National Affordable Housing Act (42 U.S.C. 12701 14 et seq.) is amended— 15
(1) in section 104 (42 U.S.C. 12704)— 16
(A) by redesignating paragraph (23) (re-17
lating to the definition of the term ‘‘to dem-18
onstrate to the Secretary’’) as paragraph (22); 19
and 20
(B) by redesignating paragraph (24) (re-21
lating to the definition of the term ‘‘insular 22
area’’, as added by section 2(2) of Public Law 23
102–230) as paragraph (23); 24
(2) in section 105(b) (42 U.S.C. 12705(b))— 25
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(A) in paragraph (7), by striking ‘‘Stewart 1
B. McKinney Homeless Assistance Act’’ and in-2
serting ‘‘McKinney-Vento Homeless Assistance 3
Act’’; and 4
(B) in paragraph (8), by striking ‘‘sub-5
paragraphs’’ and inserting ‘‘paragraphs’’; 6
(3) in section 106 (42 U.S.C. 12706), by strik-7
ing ‘‘Stewart B. McKinney Homeless Assistance 8
Act’’ and inserting ‘‘McKinney-Vento Homeless As-9
sistance Act’’; 10
(4) in section 108(a)(1) (42 U.S.C. 11
12708(a)(1)), by striking ‘‘section 105(b)(15)’’ and 12 inserting ‘‘section 105(b)(18)’’; 13
(5) in section 212 (42 U.S.C. 12742)— 14
(A) in subsection (a)— 15
(i) in paragraph (3)(A)(ii), by insert-16
ing ‘‘United States’’ before ‘‘Housing Act’’; 17
and 18
(ii) by redesignating paragraph (5) as 19
paragraph (4); 20
(B) in subsection (d)(5), by inserting 21
‘‘United States’’ before ‘‘Housing Act’’; and 22
(C) in subsection (e)(1)— 23
(i) by striking ‘‘section 221(d)(3)(ii)’’ 24
and inserting ‘‘section 221(d)(4)’’; and 25
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(ii) by striking ‘‘not to exceed 140 1
percent’’ and inserting ‘‘as determined by 2
the Secretary’’; 3
(6) in section 215(a)(6)(B) (42 U.S.C. 20 4
12745(a)(6)(B)), by striking ‘‘grand children’’ and 5
inserting ‘‘grandchildren’’; 6
(7) in section 217 (42 U.S.C. 12747)— 7
(A) in subsection (a)— 8
(i) in paragraph (1), by striking ‘‘(3)’’ 9
and inserting ‘‘(2)’’; 10
(ii) by striking paragraph (3), as 11
added by section 211(a)(2)(D) of the 12
Housing and Community Development Act 13
of 1992 (Public Law 102–550; 106 Stat. 14
3756); and 15
(iii) by redesignating the remaining 16
paragraph (3), as added by the matter 17
under the heading ‘‘ HOME INVESTMENT 18
PARTNERSHIPS PROGRAM ’’ under the head-19
ing ‘‘H OUSING PROGRAMS’’ in title II of 20
the Departments of Veterans Affairs and 21
Housing and Urban Development, and 22
Independent Agencies Appropriations Act, 23
1993 (Public Law 102–389; 106 Stat. 24
1581), as paragraph (2); and 25
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(B) in subsection (b)— 1
(i) in paragraph (1)— 2
(I) in the first sentence of sub-3
paragraph (A)— 4
(aa) by striking ‘‘in regula-5
tion’’ and inserting ‘‘, by regula-6
tion,’’; and 7
(bb) by striking ‘‘eligible ju-8
risdiction’’ and inserting ‘‘eligible 9
jurisdictions’’; and 10
(II) in subparagraph (F)— 11
(aa) in the first sentence— 12
(AA) in clause (i), by 13
striking ‘‘Subcommittee on 14
Housing and Urban Affairs’’ 15
and inserting ‘‘Sub-16
committee on Housing, 17
Transportation, and Com-18
munity Development’’; and 19
(BB) in clause (ii), by 20
striking ‘‘Subcommittee on 21
Housing and Community 22
Development of the Com-23
mittee on Banking, Finance 24
and Urban Affairs’’ and in-25
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serting ‘‘Subcommittee on 1
Housing and Insurance of 2
the Committee on Financial 3
Services’’; and 4
(bb) in the second sentence, 5
by striking ‘‘the Committee on 6
Banking, Finance and Urban Af-7
fairs of the House of Representa-8
tives’’ and inserting ‘‘the Com-9
mittee on Financial Services of 10
the House of Representatives’’; 11
(ii) in paragraph (2)(B), by striking 12
‘‘$500,000’’ each place that term appears 13
and inserting ‘‘$750,000’’; 14
(iii) in paragraph (3)— 15
(I) by striking ‘‘$500,000’’ each 16
place that term appears and inserting 17
‘‘$750,000’’; and 18
(II) by striking ‘‘, except as pro-19
vided in paragraph (4)’’; and 20
(iv) by striking paragraph (4); 21
(8) in section 220(c) (42 U.S.C. 12750(c))— 22
(A) in paragraph (3), by striking ‘‘Sec-23
retary’’ and all that follows and inserting ‘‘Sec-24
retary;’’; 25
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(B) in paragraph (4), by striking ‘‘under 1
this title’’ and all that follows and inserting 2
‘‘under this title;’’; and 3
(C) by redesignating paragraphs (6), (7), 4
and (8) as paragraphs (5), (6), and (7), respec-5
tively; 6
(9) in section 225(d)(4)(B) (42 U.S.C. 7
12755(d)(4)(B)), by striking ‘‘for’’ the first place 8
that term appears; and 9
(10) in section 283 (42 U.S.C. 12833)— 10
(A) in subsection (a), by striking ‘‘Bank-11
ing, Finance and Urban Affairs’’ and inserting 12
‘‘Financial Services’’; and 13
(B) in subsection (b), by striking ‘‘General 14
Accounting Office’’ each place that term ap-15
pears and inserting ‘‘Government Account-16
ability Office’’. 17
SEC. 503. RURAL HOUSING SERVICE REFORM ACT. 18
(a) A PPLICATION OF MULTIFAMILY MORTGAGE 19
FORECLOSURE PROCEDURES TO MULTIFAMILY MORT-20
GAGES HELD BY THE SECRETARY OF AGRICULTURE AND 21
PRESERVATION OF THE RENTAL ASSISTANCE CONTRACT 22
UPON FORECLOSURE.— 23
(1) M ULTIFAMILY MORTGAGE PROCEDURES .— 24
Section 363(2) of the Multifamily Mortgage Fore-25
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closure Act of 1981 (12 U.S.C. 3702(2)) is amend-1
ed— 2
(A) in subparagraph (D), by striking 3
‘‘and’’ at the end; 4
(B) in subparagraph (E), by striking the 5
period at the end and inserting ‘‘; or’’; and 6
(C) by adding at the end the following: 7
‘‘(F) section 514, 515, or 538 of the Hous-8
ing Act of 1949 (42 U.S.C. 1484, 1485, 9
1490p).’’. 10
(2) P RESERVATION OF CONTRACT .—Section 11
521(d) of the Housing Act of 1949 (42 U.S.C. 12
1490a(d)) is amended by adding at the end the fol-13
lowing: 14
‘‘(3) Notwithstanding any other provision of law in 15
managing and disposing of any multifamily property that 16 is owned or has a mortgage held by the Secretary, and 17 during the process of foreclosure on any property with a 18 contract for rental assistance under this section— 19
‘‘(A) the Secretary shall maintain any rental as-20
sistance payments that are attached to any dwelling 21
units in the property; and 22
‘‘(B) the rental assistance contract may be used 23
to provide further assistance to existing projects 24
under 514, 515, or 516.’’. 25
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(b) S TUDY ON RURAL HOUSING LOANS FOR HOUS-1
ING FOR LOW- AND MODERATE-INCOME FAMILIES.—Not 2
later than 6 months after the date of enactment of this 3 Act, the Secretary of Agriculture shall conduct a study 4 and submit to Congress a publicly available report on the 5 loan program under section 521 of the Housing Act of 6
1949 (42 U.S.C. 1490a), including— 7
(1) the total amount provided by the Secretary 8
in subsidies under such section 521 to borrowers 9
with loans made pursuant to section 502 of such Act 10
(42 U.S.C. 1472); 11
(2) how much of the subsidies described in 12
paragraph (1) are being recaptured; and 13
(3) the amount of time and costs associated 14
with recapturing those subsidies. 15
(c) A UTHORIZATION OF APPROPRIATIONS FOR 16
STAFFING AND IT UPGRADES.—There is authorized to be 17
appropriated to the Secretary of Agriculture for each of 18 fiscal years 2026 through 2030 such sums as may be nec-19 essary for increased staffing needs and information tech-20 nology upgrades to support all Rural Housing Service pro-21 grams. 22
(d) FUNDING FOR TECHNICAL IMPROVEMENTS.— 23
(1) A UTHORIZATION OF APPROPRIATIONS .— 24
There is authorized to be appropriated to the Sec-25
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retary of Agriculture such sums as may be necessary 1
for fiscal year 2026 for improvements to the tech-2
nology of the Rural Housing Service of the Depart-3
ment of Agriculture used to process and manage 4
housing loans. 5
(2) AVAILABILITY.—Amounts appropriated pur-6
suant to paragraph (1) shall remain available until 7
the date that is 5 years after the date of the appro-8
priation. 9
(3) T IMELINE.—The Secretary of Agriculture 10
shall make the improvements described in paragraph 11
(1) during the 5-year period beginning on the date 12
on which amounts are appropriated under paragraph 13
(1). 14
(e) P ERMANENT ESTABLISHMENT OF HOUSING 15
PRESERVATION AND REVITALIZATION PROGRAM.—Title 16
V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) 17 is amended by adding at the end the following: 18
‘‘SEC. 545. HOUSING PRESERVATION AND REVITALIZATION 19
PROGRAM. 20
‘‘(a) E STABLISHMENT.—The Secretary shall carry 21
out a program under this section for the preservation and 22 revitalization of multifamily rental housing projects fi-23 nanced under section 514, 515, or 516. 24
‘‘(b) NOTICE OF MATURING LOANS.— 25
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‘‘(1) T O OWNERS .—On an annual basis, the 1
Secretary shall provide written notice to each owner 2
of a property financed under section 514, 515, or 3
516 that will mature within the 4-year period begin-4
ning upon the provision of the notice, setting forth 5
the options and financial incentives that are avail-6
able to facilitate the extension of the loan term or 7
the option to decouple a rental assistance contract 8
pursuant to subsection (f). 9
‘‘(2) TO TENANTS .— 10
‘‘(A) I N GENERAL .—On an annual basis, 11
for each property financed under section 514, 12
515, or 516, not later than the date that is 2 13
years before the date that the loan will mature, 14
the Secretary shall provide written notice to 15
each household residing in the property that in-16
forms them of— 17
‘‘(i) the date of the loan maturity; 18
‘‘(ii) the possible actions that may 19
happen with respect to the property upon 20
that maturity; and 21
‘‘(iii) how to protect their right to re-22
side in federally assisted housing, or how 23
to secure housing voucher, after that ma-24
turity. 25
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‘‘(B) LANGUAGE.—Notice under this para-1
graph shall be provided in plain English and 2
shall be translated to other languages in the 3
case of any property located in an area in which 4
a significant number of residents speak such 5
other languages. 6
‘‘(c) L OAN RESTRUCTURING.—Under the program 7
under this section, in any circumstance in which the Sec-8 retary proposes a restructuring to an owner or an owner 9 proposes a restructuring to the Secretary, the Secretary 10 may restructure such existing housing loans, as the Sec-11 retary considers appropriate, for the purpose of ensuring 12 that those projects have sufficient resources to preserve 13 the projects to provide safe and affordable housing for low- 14 income residents and farm laborers, by— 15
‘‘(1) reducing or eliminating interest; 16
‘‘(2) deferring loan payments; 17
‘‘(3) subordinating, reducing, or reamortizing 18
loan debt; 19
‘‘(4) providing other financial assistance, in-20
cluding advances, payments, and incentives (includ-21
ing the ability of owners to obtain reasonable re-22
turns on investment) required by the Secretary; and 23
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‘‘(5) permanently removing a portion of the 1
housing units from income restrictions when sus-2
tained vacancies have occurred. 3
‘‘(d) RENEWAL OF RENTAL ASSISTANCE.— 4
‘‘(1) I N GENERAL .—When the Secretary pro-5
poses to restructure a loan or agrees to the proposal 6 of an owner to restructure a loan pursuant to sub-7
section (c), the Secretary shall offer to renew the 8
rental assistance contract under section 521(a)(2) 9
for a term that is the shorter of 20 years and the 10
term of the restructured loan, subject to annual ap-11
propriations, provided that the owner agrees to bring 12 the property up to such standards that will ensure 13
maintenance of the property as decent, safe, and 14
sanitary housing for the full term of the rental as-15
sistance contract. 16
‘‘(2) A DDITIONAL RENTAL ASSISTANCE .—With 17
respect to a project described in paragraph (1), if 18
rental assistance is not available for all households 19 in the project for which the loan is being restruc-20
tured pursuant to subsection (c), the Secretary may 21
extend such additional rental assistance to unas-22
sisted households at that project as is necessary to 23 make the project safe and affordable to low-income 24
households. 25
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‘‘(e) RESTRICTIVE USE AGREEMENTS.— 1
‘‘(1) R EQUIREMENT.—As part of the preserva-2
tion and revitalization agreement for a project, the 3
Secretary shall obtain a restrictive use agreement 4
that is recorded and obligates the owner to operate 5
the project in accordance with this title. 6
‘‘(2) TERM.— 7
‘‘(A) N O EXTENSION OF RENTAL ASSIST -8
ANCE CONTRACT .—Except when the Secretary 9
enters into a 20-year extension of the rental as-10
sistance contract for a project, the term of the 11
restrictive use agreement for the project shall 12
be consistent with the term of the restructured 13
loan for the project. 14
‘‘(B) E XTENSION OF RENTAL ASSISTANCE 15
CONTRACT.—If the Secretary enters into a 20- 16
year extension of the rental assistance contract 17
for a project, the term of the restrictive use 18
agreement for the project shall be for the longer 19
of— 20
‘‘(i) 20 years; or 21
‘‘(ii) the remaining term of the loan 22
for that project. 23
‘‘(C) T ERMINATION.—The Secretary may 24
terminate the 20-year use restrictive use agree-25
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ment for a project before the end of the term 1
of the agreement if the 20-year rental assist-2
ance contract for the project with the owner is 3
terminated at any time for reasons outside the 4
control of the owner. 5
‘‘(f) DECOUPLING OF RENTAL ASSISTANCE.— 6
‘‘(1) R ENEWAL OF RENTAL ASSISTANCE CON -7
TRACT.—If the Secretary determines that a loan ma-8
turing during the 4-year period beginning upon the 9
provision of the notice required under subsection 10
(b)(1) for a project cannot reasonably be restruc-11
tured in accordance with subsection (c) because it is 12 not financially feasible or the owner does not agree 13 with the proposed restructuring, and the project was 14 operating with rental assistance under section 521 15
and the recipient is a borrower under section 514 or 16 515, the Secretary may renew the rental assistance 17
contract, notwithstanding any requirement under 18
section 521 that the recipient be a current borrower 19 under section 514 or 515, for a term of 20 years, 20
subject to annual appropriations. 21
‘‘(2) A DDITIONAL RENTAL ASSISTANCE .—With 22
respect to a project described in paragraph (1), if 23
rental assistance is not available for all households 24 in the project for which the loan is being restruc-25
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tured pursuant to subsection (c), the Secretary may 1
extend such additional rental assistance to unas-2
sisted households at that project as is necessary to 3
make the project safe and affordable to low-income 4
households. 5
‘‘(3) RENTS.— 6
‘‘(A) I N GENERAL .—Any agreement to ex-7
tend the term of the rental assistance contract 8
under section 521 for a project shall obligate 9
the owner to continue to maintain the project 10
as decent, safe, and sanitary housing and to op-11
erate the development as affordable housing in 12
a manner that meets the goals of this title. 13
‘‘(B) R ENT AMOUNTS .—Subject to sub-14
paragraph (C), in setting rents, the Secretary— 15
‘‘(i) shall determine the maximum ini-16
tial rent based on current fair market 17
rents established under section 8 of the 18
United States Housing Act of 1937 (42 19
U.S.C. 1437f); and 20
‘‘(ii) may annually adjust the rent de-21
termined under clause (i) by the operating 22
cost adjustment factor as provided under 23
section 524 of the Multifamily Assisted 24
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Housing Reform and Affordability Act of 1
1997 (42 U.S.C. 1437f note). 2
‘‘(C) HIGHER RENT .— 3
‘‘(i) IN GENERAL .—Subparagraph (B) 4
shall not apply if the Secretary determines 5
that the budget-based needs of a project 6
require a higher rent than the rent de-7
scribed in subparagraph (B). 8
‘‘(ii) RENT.—If the Secretary makes a 9
positive determination under clause (i), the 10
Secretary may approve a budget-based rent 11
level for the project. 12
‘‘(4) C ONDITIONS FOR APPROVAL .—Before the 13
approval of a rental assistance contract authorized 14
under this section, the Secretary shall require, 15
through an annual notice in the Federal Register, 16
the owner to submit to the Secretary a plan that 17
identifies financing sources and a timetable for ren-18 ovations and improvements determined to be nec-19
essary by the Secretary to maintain and preserve the 20 project. 21
‘‘(g) MULTIFAMILY HOUSING TRANSFER TECHNICAL 22
ASSISTANCE.—Under the program under this section, the 23 Secretary may provide grants to qualified nonprofit orga-24 nizations and public housing agencies to provide technical 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 230
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assistance, including financial and legal services, to bor-1 rowers under loans under this title for multifamily housing 2 to facilitate the acquisition or preservation of such multi-3 family housing properties in areas where the Secretary de-4 termines there is a risk of loss of affordable housing. 5 ‘‘(h) ADMINISTRATIVE EXPENSES.—Of any amounts 6
made available for the program under this section for any 7 fiscal year, the Secretary may use not more than 8
$1,000,000 for administrative expenses for carrying out 9 such program. 10
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 11
authorized to be appropriated for the program under this 12 section such sums as may be necessary for each of fiscal 13 years 2026 through 2030. 14
‘‘(j) RULEMAKING.— 15
‘‘(1) I N GENERAL .—Not later than 180 days 16
after the date of enactment of the Renewing Oppor-17
tunity in the American Dream to Housing Act of 18
2025, the Secretary shall— 19
‘‘(A) publish an advance notice of proposed 20
rulemaking; and 21
‘‘(B) consult with appropriate stake-22
holders. 23
‘‘(2) I NTERIM FINAL RULE .—Not later than 1 24
year after the date of enactment of the Renewing 25
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Opportunity in the American Dream to Housing Act 1
of 2025, the Secretary shall publish an interim final 2 rule to carry out this section.’’. 3
(f) R ENTAL ASSISTANCE CONTRACT AUTHORITY.— 4
Section 521(d) of the Housing Act of 1949 (42 U.S.C. 5
1490a(d)), as amended by this section, is amended— 6
(1) in paragraph (1)— 7
(A) by redesignating subparagraphs (B) 8
and (C) as subparagraphs (C) and (D), respec-9
tively; 10
(B) by inserting after subparagraph (A) 11
the following: 12
‘‘(B) upon request of an owner of a project fi-13
nanced under section 514 or 515, the Secretary is 14
authorized to enter into renewal of such agreements 15
for a period of 20 years or the term of the loan, 16
whichever is shorter, subject to amounts made avail-17
able in appropriations Acts;’’; 18
(C) in subparagraph (C), as so redesig-19
nated, by striking ‘‘subparagraph (A)’’ and in-20
serting ‘‘subparagraphs (A) and (B)’’; and 21
(D) in subparagraph (D), as so redesig-22
nated, by striking ‘‘subparagraphs (A) and 23
(B)’’ and inserting ‘‘subparagraphs (A), (B), 24
and (C)’’; 25
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(2) in paragraph (2), by striking ‘‘shall’’ and 1
inserting ‘‘may’’; and 2
(3) by adding at the end the following: 3
‘‘(4) In the case of any rental assistance contract au-4 thority that becomes available because of the termination 5 of assistance on behalf of an assisted family— 6
‘‘(A) at the option of the owner of the rental 7
project, the Secretary shall provide the owner a pe-8
riod of not more than 6 months before unused as-9
sistance is made available pursuant to subparagraph 10
(B) during which the owner may use such assistance 11
authority to provide assistance on behalf of an eligi-12 ble unassisted family that— 13
‘‘(i) is residing in the same rental project 14
in which the assisted family resided before the 15
termination; or 16
‘‘(ii) newly occupies a dwelling unit in the 17
rental project during that 6-month period; and 18
‘‘(B) except for assistance used as provided in 19
subparagraph (A), the Secretary shall use such re-20
maining authority to provide assistance on behalf of 21 eligible families residing in other rental projects 22
originally financed under section 514, 515, or 516.’’. 23 (g) M ODIFICATIONS TO LOANS AND GRANTS FOR 24
MINOR IMPROVEMENTS TO FARM HOUSING AND BUILD-25
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INGS; INCOME ELIGIBILITY.—Section 504(a) of the Hous-1
ing Act of 1949 (42 U.S.C. 1474(a)) is amended— 2
(1) in the first sentence, by inserting ‘‘and may 3
make a loan to an eligible low-income applicant’’ 4
after ‘‘applicant’’; 5
(2) by inserting ‘‘Not less than 60 percent of 6
loan funds made available under this section shall be 7 reserved and made available for very low-income ap-8
plicants.’’ after the first sentence; and 9
(3) by striking ‘‘$7,500’’ and inserting 10
‘‘$15,000’’. 11
(h) R URAL COMMUNITY DEVELOPMENT INITIA-12
TIVE.—Subtitle E of the Consolidated Farm and Rural 13
Development Act (7 U.S.C. 2009 et seq.) is amended by 14 adding at the end the following: 15
‘‘SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIA-16
TIVE. 17
‘‘(a) DEFINITIONS.—In this section: 18
‘‘(1) E LIGIBLE ENTITY .—The term ‘eligible en-19
tity’ means— 20
‘‘(A) a private, nonprofit community-based 21
housing or community development organiza-22
tion; 23
‘‘(B) a rural community; or 24
‘‘(C) a federally recognized Indian tribe. 25
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‘‘(2) E LIGIBLE INTERMEDIARY .—The term ‘eli-1
gible intermediary’ means a qualified— 2
‘‘(A) private, nonprofit organization; or 3
‘‘(B) public organization. 4
‘‘(b) E STABLISHMENT.—The Secretary shall estab-5
lish a Rural Community Development Initiative, under 6
which the Secretary shall provide grants to eligible inter-7 mediaries to carry out programs to provide financial and 8 technical assistance to eligible entities to develop the ca-9 pacity and ability of eligible entities to carry out projects 10 to improve housing, community facilities, and community 11 and economic development projects in rural areas. 12
‘‘(c) A MOUNT OF GRANTS.—The amount of a grant 13
provided to an eligible intermediary under this section 14 shall be not more than $250,000. 15
‘‘(d) MATCHING FUNDS.— 16
‘‘(1) IN GENERAL .—An eligible intermediary re-17
ceiving a grant under this section shall provide 18
matching funds from other sources, including Fed-19
eral funds for related activities, in an amount not 20
less than the amount of the grant. 21
‘‘(2) W AIVER.—The Secretary may waive para-22
graph (1) with respect to a project that would be 23
carried out in a persistently poor rural region, as de-24 termined by the Secretary.’’. 25
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(i) A NNUAL REPORT ON RURAL HOUSING PRO-1
GRAMS.—Title V of the Housing Act of 1949 (42 U.S.C. 2
1471 et seq.), as amended by this section, is amended by 3 adding at the end the following: 4
‘‘SEC. 546. ANNUAL REPORT. 5
‘‘(a) I N GENERAL.—The Secretary shall submit to 6
the appropriate committees of Congress and publish on 7 the website of the Department of Agriculture an annual 8 report on rural housing programs carried out under this 9 title, which shall include significant details on the health 10 of Rural Housing Service programs, including— 11
‘‘(1) raw data sortable by programs and by re-12
gion regarding loan performance; 13
‘‘(2) the housing stock of those programs, in-14
cluding information on why properties end participa-15
tion in those programs, such as for maturation, pre-16
payment, foreclosure, or other servicing issues; and 17 ‘‘(3) risk ratings for properties assisted under 18
those programs. 19
‘‘(b) P ROTECTION OF INFORMATION.—The data in-20
cluded in each report required under subsection (a) may 21 be aggregated or anonymized to protect participant finan-22 cial or personal information.’’. 23
(j) GAO R EPORT ON RURAL HOUSING SERVICE 24
TECHNOLOGY.—Not later than 1 year after the date of 25
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enactment of this Act, the Comptroller General of the 1 United States shall submit to Congress a report that in-2 cludes— 3
(1) an analysis of how the outdated technology 4
used by the Rural Housing Service impacts partici-5
pants in the programs of the Rural Housing Service; 6
(2) an estimate of the amount of funding that 7
is needed to modernize the technology used by the 8
Rural Housing Service; and 9
(3) an estimate of the number and type of new 10
employees the Rural Housing Service needs to mod-11
ernize the technology used by the Rural Housing 12
Service. 13
(k) ADJUSTMENT TO RURAL DEVELOPMENT VOUCH-14
ER AMOUNT.— 15
(1) I N GENERAL .—Not later than 2 years after 16
the date of enactment of this Act, the Secretary of 17
Agriculture shall issue regulations to establish a 18
process for adjusting the voucher amount provided 19
under section 542 of the Housing Act of 1949 (42 20
U.S.C. 1490r) after the issuance of the voucher fol-21
lowing an interim or annual review of the amount of 22
the voucher. 23
(2) I NTERIM REVIEW .—The interim review de-24
scribed in paragraph (1) shall, at the request of a 25
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tenant, allow for a recalculation of the voucher 1
amount when the tenant experiences a reduction in 2
income, change in family composition, or change in 3
rental rate. 4
(3) ANNUAL REVIEW .— 5
(A) I N GENERAL .—The annual review de-6
scribed in paragraph (1) shall require tenants 7
to annually recertify the family composition of 8
the household and that the family income of the 9
household does not exceed 80 percent of the 10
area median income at a time determined by 11
the Secretary of Agriculture. 12
(B) C ONSIDERATIONS.—If a tenant does 13
not recertify the family composition and family 14
income of the household within the time frame 15
required under subparagraph (A), the Secretary 16
of Agriculture— 17
(i) shall consider whether extenuating 18
circumstances caused the delay in recertifi-19
cation; and 20
(ii) may alter associated consequences 21
for the failure to recertify based on those 22
circumstances. 23
(C) E FFECTIVE DATE .—Following the an-24
nual review of a voucher under paragraph (1), 25
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the updated voucher amount shall be effective 1
on the 1st day of the month following the expi-2
ration of the voucher. 3
(4) D EADLINE.—The process established under 4
paragraph (1) shall require the Secretary of Agri-5
culture to review and update the voucher amount de-6
scribed in paragraph (1) for a tenant not later than 7
60 days before the end of the voucher term. 8
(l) ELIGIBILITY FOR RURAL HOUSING VOUCHERS.— 9
Section 542 of the Housing Act of 1949 (42 U.S.C. 10
1490r) is amended by adding at the end the following: 11 ‘‘(c) E LIGIBILITY OF HOUSEHOLDS IN SECTIONS 12
514, 515, AND 516 PROJECTS.—The Secretary may pro-13
vide rural housing vouchers under this section for any low- 14 income household (including those not receiving rental as-15 sistance) residing for a term longer than the remaining 16 term of their lease that is in effect on the date of prepay-17 ment, foreclosure, or mortgage maturity, in a property fi-18 nanced with a loan under section 514 or 515 or a grant 19 under section 516 that has— 20
‘‘(1) been prepaid with or without restrictions 21
imposed by the Secretary pursuant to section 22
502(c)(5)(G)(ii)(I); 23
‘‘(2) been foreclosed; or 24
‘‘(3) matured after September 30, 2005.’’. 25
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(m) A MOUNT OF VOUCHER ASSISTANCE.—Notwith-1
standing any other provision of law, in the case of any 2 rural housing voucher provided pursuant to section 542 3 of the Housing Act of 1949 (42 U.S.C. 1490r), the 4
amount of the monthly assistance payment for the house-5 hold on whose behalf the assistance is provided shall be 6 determined as provided in subsection (a) of such section 7 542, including providing for interim and annual review of 8 the voucher amount in the event of a change in household 9 composition or income or rental rate. 10
(n) T RANSFER OF MULTIFAMILY RURAL HOUSING 11
PROJECTS.—Section 515 of the Housing Act of 1949 (42 12 U.S.C. 1485) is amended— 13
(1) in subsection (h), by adding at the end the 14
following: 15
‘‘(3) T RANSFER TO NONPROFIT ORGANIZA -16
TIONS.—A nonprofit or public body purchaser, in-17
cluding a limited partnership with a general partner 18 with the principal purpose of providing affordable 19
housing, may purchase a property for which a loan 20
is made or insured under this section that has re-21
ceived a market value appraisal, without addressing 22
rehabilitation needs at the time of purchase, if the 23 purchaser— 24
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‘‘(A) makes a commitment to address re-1
habilitation needs during ownership and long- 2
term use restrictions on the property; and 3
‘‘(B) at the time of purchase, accepts long- 4
term use restrictions on the property.’’; and 5
(2) in subsection (w)(1), in the first sentence in 6
the matter preceding subparagraph (A), by striking 7
‘‘9 percent’’ and inserting ‘‘25 percent’’. 8
(o) EXTENSION OF LOAN TERM.— 9
(1) I N GENERAL .—Section 502(a)(2) of the 10
Housing Act of 1949 (42 U.S.C. 1472(a)(2)) is 11
amended— 12
(A) by inserting ‘‘(A)’’ before ‘‘The Sec-13
retary’’; 14
(B) in subparagraph (A), as so designated, 15
by striking ‘‘paragraph’’ and inserting ‘‘sub-16
paragraph’’; and 17
(C) by adding at the end the following: 18
‘‘(B) The Secretary may refinance or modify 19
the period of any loan, including any refinanced 20
loan, made under this section in accordance with 21
terms and conditions as the Secretary shall pre-22
scribe, but in no event shall the total term of the 23
loan from the date of the refinance or modification 24
exceed 40 years.’’. 25
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(2) A PPLICATION.—The amendment made 1
under paragraph (1) shall apply with respect to 2
loans made under section 502 of the Housing Act of 3
1949 (42 U.S.C. 1472) before, on, or after the date 4
of enactment of this Act. 5
(p) RELEASE OF LIABILITY FOR SECTION 502 GUAR-6
ANTEED BORROWER UPON ASSUMPTION OF ORIGINAL 7
LOAN BY NEW BORROWER.—Section 502(h)(10) of the 8
Housing Act of 1949 (42 U.S.C. 1472(h)(10)) is amended 9 to read as follows: 10
‘‘(10) T RANSFER AND ASSUMPTION .—Upon the 11
transfer of property for which a guaranteed loan 12
under this subsection was made and the assumption 13
of the guaranteed loan by an approved eligible bor-14
rower, the original borrower of a guaranteed loan 15
under this subsection shall be relieved of liability 16 with respect to the loan.’’. 17
(q) DEPARTMENT OF AGRICULTURE LOAN RESTRIC-18
TIONS.— 19
(1) D EFINITIONS.—In this subsection, the 20
terms ‘‘State’’ and ‘‘Tribal organization’’ have the 21 meanings given those terms in section 658P of the 22
Child Care and Development Block Grant Act of 23
1990 (42 U.S.C. 9858n). 24
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(2) R EVISION.—The Secretary of Agriculture 1
shall revise section 3555.102(c) of title 7, Code of 2
Federal Regulations, to exclude from the restriction 3
under that section— 4
(A) a home-based business that is a li-5
censed, registered, or regulated child care pro-6
vider under State law or by a Tribal organiza-7
tion; and 8
(B) an applicant that has applied to be-9
come a licensed, registered or regulated child 10
care provider under State law or by a Tribal or-11
ganization. 12
(r) L OAN GUARANTEES.—Section 502(h)(4) of the 13
Housing Act of 1949 (42 U.S.C. 1472(h)(4)) is amend-14
ed— 15
(1) by redesignating subparagraphs (A), (B), 16
and (C) as clauses (i), (ii), and (iii), respectively; 17 (2) by striking ‘‘Loans may be guaranteed’’ and 18
inserting the following: 19
‘‘(A) D EFINITION.—In this paragraph, the 20
term ‘accessory dwelling unit’ means a single, 21
habitable living unit— 22
‘‘(i) with means of separate ingress 23
and egress; 24
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‘‘(ii) that is usually subordinate in 1
size; 2
‘‘(iii) that can be added to, created 3
within, or detached from a primary 1-unit, 4
single-family dwelling; and 5
‘‘(iv) in combination with a primary 6
1-unit, single family dwelling, constitutes a 7
single interest in real estate. 8
‘‘(B) S INGLE FAMILY REQUIREMENT .— 9
Loans may be guaranteed’’; and 10
(3) by adding at the end the following: 11
‘‘(C) R ULE OF CONSTRUCTION .—Nothing 12
in this paragraph shall be construed to prohibit 13
the leasing of an accessory dwelling unit or the 14
use of rental income derived from such a lease 15
to qualify for a loan guaranteed under this sub-16
section— 17
‘‘(i) after the date of enactment of the 18
Renewing Opportunity in the American 19
Dream to Housing Act of 2025; and 20
‘‘(ii) if the property that is the subject 21
of the loan was constructed before the date 22
of enactment of the Renewing Opportunity 23
in the American Dream to Housing Act of 24
2025.’’. 25
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(s) APPLICATION REVIEW.— 1
(1) S ENSE OF CONGRESS .—It is the sense of 2
Congress, not later than 90 days after the date on 3
which the Secretary of Agriculture receives an appli-4
cation for a loan, grant, or combined loan and grant 5
under section 502 or 504 of the Housing Act of 6
1949 (42 U.S.C. 1472, 1474), the Secretary of Agri-7
culture should— 8
(A) review the application; 9
(B) complete the underwriting; 10
(C) make a determination of eligibility with 11
respect to the application; and 12
(D) notify the applicant of determination. 13
(2) REPORT.— 14
(A) I N GENERAL .—Not later than 90 days 15
after the date of enactment of this Act, and an-16
nually thereafter until the date described in 17
subparagraph (B), the Secretary of Agriculture 18
shall submit to the Committee on Banking, 19
Housing, and Urban Affairs of the Senate and 20
the Committee on Financial Services of the 21
House of Representatives a report— 22
(i) detailing the timeliness of eligi-23
bility determinations and final determina-24
tions with respect to applications under 25
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sections 502 and 504 of the Housing Act 1
of 1949 (42 U.S.C. 1472, 1474), including 2
justifications for any eligibility determina-3
tions taking longer than 90 days; and 4
(ii) that includes recommendations to 5
shorten the timeline for notifications of eli-6
gibility determinations described in clause 7
(i) to not more than 90 days. 8
(B) D ATE DESCRIBED .—The date de-9
scribed in this subparagraph is the date on 10
which, during the preceding 5-year period, the 11
Secretary of Agriculture provides each eligibility 12
determination described in subparagraph (A) 13
during the 90-day period beginning on the date 14
on which each application is received. 15
SEC. 504. NEW MOVING TO WORK COHORT. 16
(a) DEFINITIONS.—In this section: 17
(1) M OVING TO WORK DEMONSTRATION .—The 18
term ‘‘Moving to Work demonstration’’ means the 19
Moving to Work demonstration authorized under 20
section 204 of the Departments of Veterans Affairs 21
and Housing and Urban Development, and Inde-22
pendent Agencies Appropriations Act, 1996 (42 23
U.S.C. 1437f note). 24
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(2) S ECRETARY.—The term ‘‘Secretary’’ means 1
the Secretary of Housing and Urban Development. 2
(b) AUTHORIZATION OF ADDITIONAL PUBLIC HOUS-3
ING AGENCIES.— 4
(1) I N GENERAL .—After the completion of the 5
initial report required under subsection (h)(2), the 6
Secretary may add up to an additional 25 public 7
housing agencies that are designated as high per-8
forming agencies under the Public Housing Assess-9
ment System or the Section 8 Management Assess-10
ment Program to participate in a new cohort as part 11
of the Moving to Work demonstration. 12
(2) N AME.—The new cohort authorized under 13
paragraph (1) shall be entitled the ‘‘Economic Op-14
portunity and Pathways to Independence Cohort’’. 15
(c) WAIVER AUTHORITY.— 16
(1) I N GENERAL .—Subject to paragraph (2), 17
the authority of the Secretary to grant waivers to 18
agencies admitted to the Moving to Work dem-19
onstration under this section or to designate policy 20 changes as part of a cohort design under this section 21 shall be limited to the waivers codified as of January 22 2025 in Appendix I of the document of the Depart-23
ment of Housing and Urban Development entitled 24
‘‘Operations Notice for the Expansion of the Moving 25
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to Work Demonstration Program’’ (FR–5994–N– 1
05) published in the Federal Register on August 28, 2
2020, as amended by the notice entitled ‘‘Operations 3
Notice for Expansion of the Moving to Work Dem-4
onstration Program Technical Revisions’’ (FR– 5
5994–N–06) published in the Federal Register on 6
March 20, 2025. 7
(2) E XCEPTIONS.—Under paragraph (1), the 8
Secretary may not grant waivers 1c, 1d, 1e, 1f, 1k, 9
1l, 1o, 1p, 1q, 6, 7, 9a, 9h, or 12 in the document 10
described in paragraph (1), including modifications 11
of or safe harbor requirement waivers for such waiv-12
ers. 13
(3) P OLICY OPTIONS .—In carrying out the 14
Moving to Work demonstration cohort established 15
under this section, the Secretary may consider policy 16 options to provide opt-out savings or escrow ac-17
counts and report positive rental payments to con-18
sumer reporting agencies (as defined in section 603 19
of the Fair Credit Reporting Act (15 U.S.C. 1681a)) 20
with resident consent. 21
(d) FUNDING AND USE OF FUNDS.— 22
(1) I N GENERAL .—Public housing agencies in 23
the cohort authorized under this section may expend 24
not more than 5 percent of the amounts those public 25
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housing agencies receive in any fiscal year for hous-1
ing assistance payments under section 8(o) of the 2
United States Housing Act of 1937 (42 U.S.C. 3
1437f(o)) for purposes other than such housing as-4
sistance payments. 5
(2) OTHER USES .—Such other uses of amounts 6
described in paragraph (1) shall comply with all 7
other applicable requirements. 8
(3) FORMULA.— 9
(A) R ENEWAL.—The amount of funding 10
public housing agencies receive for renewal of 11
housing assistance payments under section 8(o) 12
of the United States Housing Act of 1937 (42 13
U.S.C. 1437f(o)) shall be determined according 14
to the same funding formula applicable to pub-15
lic housing agencies that do not participate in 16
the Moving to Work demonstration, except that 17
the Secretary shall provide public housing agen-18
cies funding to renew any funds expended 19
under this subsection, with an adjustment for 20
inflation. 21
(B) A DMINISTRATIVE FEES .—The amount 22
of funding public housing agencies receive for 23
administrative fees under section 8(q) of the 24
United States Housing Act of 1937 (42 U.S.C. 25
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1437f(q)), public housing operating subsidies 1
under section 9(e) of the United States Hous-2
ing Act of 1937 (42 U.S.C. 1437g(e)), and pub-3
lic housing capital funding under section 9(d) of 4
the United States Housing Act of 1937 (42 5
U.S.C. 1437g(d)) shall be determined according 6
to the same funding formula applicable to pub-7
lic housing agencies that do not participate in 8
the Moving to Work demonstration. 9
(e) S ELECTION REQUIREMENTS.—The Secretary 10
shall select public housing agencies designated under this 11 section through a competitive process, as determined by 12 the Secretary, with the following parameters: 13
(1) No public housing agency shall be granted 14
this designation under this section that administers 15 more than 27,000 aggregate housing vouchers and 16
public housing units. 17
(2) Of the public housing agencies selected 18
under this section, not more than 10 shall admin-19
ister 1,000 or fewer aggregate housing vouchers and 20
public housing units, not more than 6 shall admin-21
ister between 1,001 and 6,000 aggregate housing 22
vouchers and public housing units, and not more 23
than 4 shall administer between 6,001 and 27,000 24
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aggregate housing vouchers and public housing 1
units. 2
(3) Selection of public housing agencies under 3
this section shall be based on ensuring the geo-4
graphic diversity of Moving to Work demonstration 5
public housing agencies. 6
(4) Within the requirements under paragraphs 7
(1) through (3), the Secretary shall prioritize select-8 ing public housing agencies that serve families with 9
children and youth aging out of foster care at a rate 10 above the national average. 11
(f) R EQUIREMENTS FOR SELECTED PUBLIC HOUS-12
ING AGENCIES.—Consistent with section 204(c)(3) of the 13 Departments of Veterans Affairs and Housing and Urban 14 Development, and Independent Agencies Appropriations 15 Act, 1996 (42 U.S.C. 1437f note), public housing agencies 16 selected for the Moving to Work demonstration under this 17 section shall— 18
(1) ensure that not less than 75 percent of the 19
families assisted are very low-income families, as de-20 fined in section 3(b)(2)(B) of the United States 21
Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(B)); 22
(2) establish a reasonable rent policy, which 23
shall be designed to encourage employment and self- 24
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the purpose of the Moving to Work demonstration, 1
such as by excluding some or all of a family’s earned 2 income for purposes of determining rent; 3
(3) continue to assist substantially the same 4
total number of eligible low-income families as would 5 have been served had the amounts not been com-6
bined; 7
(4) maintain a comparable mix of families (by 8
family size) as would have been provided had the 9
amounts not been used under the Moving to Work 10
demonstration; and 11
(5) assure that housing assisted under the Mov-12
ing to Work demonstration meets housing quality 13
standards established or approved by the Secretary. 14
(g) NONCOMPLIANCE.— 15
(1) IN GENERAL .—If the Secretary finds that a 16
public housing agency participating in the cohort au-17 thorized under this section is not in compliance with 18 the requirements under this section, the Secretary 19
shall make a determination of noncompliance. 20
(2) C OMPLIANCE.—Upon making a determina-21
tion under paragraph (1), the Secretary shall de-22
velop a process to bring the public housing agency 23
into compliance. 24
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(3) REMOVAL.—If a public housing agency can-1
not be brought into compliance under the process 2
developed under paragraph (2), the Secretary shall 3
remove the participating public housing agency from 4
the cohort and replace it with a similarly qualified 5
public housing agency currently not in the cohort 6
chosen in the manner described in subsection (e). 7
(4) N OTIFICATION.—Upon removing a public 8
housing agency under paragraph (3), the Secretary 9
shall immediately submit to the Committee on Bank-10
ing, Housing, and Urban Affairs of the Senate and 11
the Committee on Financial Services of the House of 12
Representatives— 13
(A) a notification of the removal; and 14
(B) a report on the active steps the Sec-15
retary is taking to replace the public housing 16
agency with a new public housing agency. 17
(h) COMPREHENSIVE MOVING TO WORK REPORTING 18
AND OVERSIGHT REQUIREMENTS.— 19
(1) COHORT RESEARCH .— 20
(A) I N GENERAL .—The Secretary shall 21
continue ongoing research investigations com-22
menced as part of the assessment of the cohorts 23
established under section 239 of the Depart-24
ment of Housing and Urban Development Ap-25
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propriations Act, 2016 (42 U.S.C. 1437f note; 1
Public Law 114–113), make public all products 2
completed as part of those investigations, and 3
keep such products online for at least 5 years. 4
(B) C OORDINATION.—The Secretary shall 5
coordinate with the advisory committee estab-6
lished under section 239 of the Department of 7
Housing and Urban Development Appropria-8
tions Act, 2016 (42 U.S.C. 1437f note; Public 9
Law 114–113) to establish a research program 10
to evaluate the outcomes and efficacy of the fol-11
lowing for all Moving to Work demonstration 12
agencies designated under the authority under 13
such section and this section: 14
(i) The waivers granted to each cohort 15
and whether those waivers accomplish the 16
goals of achieving greater cost effectiveness 17
and administrative capacity, incentivizing 18
families to become economically self-suffi-19
cient, and increasing housing choice. 20
(ii) The additional flexibilities granted 21
to individual public housing agencies under 22
each cohort. 23
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(iii) How the flexibilities described in 1
clause (ii) were used for local, non-tradi-2
tional activities. 3
(2) C OMPREHENSIVE REPORTING REQUIRE -4
MENT.—Not later than 180 days after the date of 5
enactment of this Act, and annually thereafter, the 6
Secretary shall submit to the Committee on Bank-7
ing, Housing, and Urban Affairs of the Senate and 8
the Committee on Financial Services of the House of 9
Representatives a report that contains the following 10 for each Moving to Work demonstration cohort 11
under section 204 of the Departments of Veterans 12
Affairs and Housing and Urban Development, and 13
Independent Agencies Appropriations Act, 1996 (42 14
U.S.C. 1437f note), section 239 of the Department 15
of Housing and Urban Development Appropriations 16
Act, 2016 (42 U.S.C. 1437f note; Public Law 114– 17
113), and this section: 18
(A) The annual administrative plans of 19
each Moving to Work demonstration public 20
housing agency. 21
(B) Assessments of longitudinal data, in-22
cluding data on units, households, and out-23
comes, which shall be evaluated to compare 24
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changes in the following trends before and after 1
Moving to Work demonstration designation: 2
(i) Impacts on tenants based on the 3
following, disaggregated by the public 4
housing program and the housing choice 5
voucher program: 6
(I) Eviction rates. 7
(II) Hardship policy usage. 8
(III) Share of rent covered by a 9
household. 10
(IV) Turnover, including the 11
number of household moves with or 12
without continued assistance. 13
(V) Reasons for exit from the 14
program. 15
(VI) The number and character-16
istics of households served, including 17
households with a non-elderly family 18
member with a disability, 3 or more 19
minors, homelessness status at the 20
time of admission, and average and 21
median income as a percent of area 22
median income. 23
(ii) Impacts on public housing agency 24
operations based on the following: 25
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(I) The number of units, broken 1
down by type. 2
(II) The size, including the num-3
ber of bedrooms per unit, accessibility, 4
affordability, and quality of units. 5
(III) The length of each waitlist 6
maintained and average wait times. 7
(IV) Changes in capital backlog 8
needs and surplus fund and reserve 9
levels. 10
(V) The number of public hous-11
ing units undergoing a conversion 12
under the rental assistance dem-13
onstration program authorized under 14
the Department of Housing and 15
Urban Development Appropriations 16
Act, 2012 (Public Law 112–55; 125 17
Stat. 673) or demolition or disposition 18
projects under section 18 of the 19
United States Housing Act of 1937 20
(42 U.S.C. 1437p), including the 21
number of units lost and the location 22
of any replacement housing resulting 23
from demolition or disposition. 24
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(VI) The share of project-based 1
vouchers compared to tenant-based 2
vouchers. 3
(VII) The following annual hous-4
ing choice voucher data: 5
(aa) Voucher unit utilization 6
rates. 7
(bb) Voucher budget utiliza-8
tion rates. 9
(cc) Annualized voucher suc-10
cess rate. 11
(dd) Demographic composi-12
tion of households issued vouch-13
ers compared to utilized vouch-14
ers. 15
(ee) Average time to lease- 16
up. 17
(ff) Average cost per vouch-18
er. 19
(gg) Average cost per land-20
lord incentive. 21
(hh) Ratio of the proportion 22
of voucher households living in 23
concentrated low-income areas to 24
the proportion of renter-occupied 25
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units in concentrated low-income 1
areas. 2
(ii) Characteristics of census 3
tracts where voucher recipients 4
reside. 5
(VIII) How the public housing 6
agency met each of the statutory re-7
quirements in section 204(c)(3) of the 8
Departments of Veterans Affairs and 9
Housing and Urban Development, and 10
Independent Agencies Appropriations 11
Act, 1996 (42 U.S.C. 1437f note). 12
(iii) Impacts on public housing staff-13
ing and capacity, including the average 14
public housing agency operating, adminis-15
trative, and housing assistance payment 16
expenditures per household per month. 17
(C) Legislative recommendations for flexi-18
bilities that could be expanded to all public 19
housing agencies and how each flexibility en-20
hances housing choice, affordability, and admin-21
istrative capacity and efficiency for public hous-22
ing agencies. 23
(3) PUBLIC AVAILABILITY .— 24
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(A) I N GENERAL .—The Secretary shall 1
maintain all reports submitted pursuant to this 2
section in a manner that is publicly available, 3
accessible, and searchable on the website of the 4
Department of Housing and Urban Develop-5
ment for not less than 5 years. 6
(B) OTHER INFORMATION .— 7
(i) I N GENERAL .—Annually, the Sec-8
retary shall make the annual plan of the 9
Moving to Work demonstration, the Sec-10
tion 8 administrative plan, and the admis-11
sion and continued occupancy policy pub-12
licly available in 1 location on the website 13
of the Department of Housing and Urban 14
Development for not less than 5 years. 15
(ii) D ATABASE.—The Secretary may 16
establish a searchable database on the 17
website of the Department of Housing and 18
Urban Development to track the types of 19
flexibilities into which Moving to Work 20
demonstration public housing agencies 21
have opted or for which a waiver was ap-22
proved by the Secretary, disaggregated by 23
year such flexibilities were adopted or ap-24
proved. 25
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SEC. 505. REDUCING HOMELESSNESS THROUGH PROGRAM 1
REFORM ACT. 2
(a) DEFINITIONS.—In this section: 3
(1) A PPROPRIATE CONGRESSIONAL COMMIT -4
TEES.—The term ‘‘appropriate congressional com-5
mittees’’ means— 6
(A) the Committee on Banking, Housing, 7
and Urban Affairs of the Senate; and 8
(B) the Committee on Financial Services 9
of the House of Representatives. 10
(2) A T RISK OF HOMELESSNESS .—The term 11
‘‘at risk of homelessness’’ has the meaning given the 12 term in section 401 of the McKinney-Vento Home-13
less Assistance Act (42 U.S.C. 11360). 14
(3) D EPARTMENT.—The term ‘‘Department’’ 15
means the Department of Housing and Urban De-16
velopment. 17
(4) H OMELESS.—The term ‘‘homeless’’ has the 18
meaning given the term in section 103 of the 19
McKinney-Vento Homeless Assistance Act (42 20
U.S.C. 11302). 21
(5) P UBLIC HOUSING AGENCY .—The term 22
‘‘public housing agency’’ has the meaning given the 23
term in section 3(b) of the United States Housing 24
Act of 1937 (42 U.S.C. 1437a(b)). 25
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(6) SECRETARY.—The term ‘‘Secretary’’, except 1
as otherwise provided, means the Secretary of Hous-2
ing and Urban Development. 3
(b) A DMINISTRATIVE COSTS FOR THE EMERGENCY 4
SOLUTIONS GRANTS PROGRAM.—Section 418 of the 5
McKinney-Vento Homeless Assistance Act (42 U.S.C. 6
11378) is amended by striking ‘‘7.5 percent’’ and insert-7 ing ‘‘10 percent’’. 8
(c) A MENDMENTS TO THE CONTINUUM OF CARE 9
PROGRAM.— 10
(1) I N GENERAL .—Subtitle C of title IV of the 11
McKinney-Vento Homeless Assistance Act (42 12
U.S.C. 11381 et seq.) is amended— 13
(A) in section 402(g) (42 U.S.C. 14
11360a(g))— 15
(i) by redesignating paragraph (2) as 16
paragraph (3); and 17
(ii) by inserting after paragraph (1) 18
the following: 19
‘‘(2) T IME LIMIT ON DESIGNATION .—The Sec-20
retary— 21
‘‘(A) shall accept applications for designa-22
tion as a unified funding agency annually or bi-23
ennially, which designation shall be effective for 24
not more than 2 years; and 25
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‘‘(B) may, on an annual or biennial basis, 1
renew any designation under subparagraph 2
(A).’’; 3
(B) in section 422 (42 U.S.C. 11382)— 4
(i) in subsection (b)— 5
(I) by striking ‘‘The Secretary’’ 6
and inserting the following: 7
‘‘(1) IN GENERAL .—Except as provided in para-8
graph (2), the Secretary’’; and 9
(II) by adding at the end the fol-10
lowing: 11
‘‘(2) 2- YEAR NOTIFICATION .—Subject to the 12
availability of appropriations, the Secretary may 13
issue a notification of funding availability for grants 14 awarded under this subtitle that provides funding 15
for 2 successive fiscal years, which shall— 16
‘‘(A) award funds for the second year of 17
projects, including adjustments under sub-18
section (f), unless the project is underper-19
forming, as determined by the collaborative ap-20
plicant, and the collaborative applicant applies 21
to replace the project with a new project; and 22
‘‘(B) include— 23
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‘‘(i) the method for applying for and 1
awarding projects to replace underper-2
forming projects in year 2; 3
‘‘(ii) the method for applying for and 4
awarding renewals of expiring grants for 5
projects that were not eligible for renewal 6
in the first fiscal year; 7
‘‘(iii) the method for allocating any 8
amounts in the second fiscal year that are 9
in excess of the amount needed to fund the 10
second fiscal year of all grants awarded in 11
the first fiscal year; 12
‘‘(iv) the method of applying for and 13
awarding grants, which are 1-year transi-14
tion grants awarded by the Secretary to 15
project sponsors for activities under this 16
subtitle to transition from 1 eligible activ-17
ity to another eligible activity if the recipi-18
ent— 19
‘‘(I) has the consent of the con-20
tinuum of care; and 21
‘‘(II) meets standards determined 22
by the Secretary; 23
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‘‘(C) announce by notice the award of sec-1
ond fiscal year funding and awards for new and 2
renewal projects; and 3
‘‘(D) identify the process by which the Sec-4
retary may approve replacement of a collabo-5
rative applicant that is not a unified funding 6
agency to receive the award in the second fiscal 7
year.’’; 8
(ii) in subsection (c)(2)— 9
(I) by striking ‘‘(A) I N GEN -10
ERAL.—Except as provided in sub-11
paragraph (B), the Secretary’’ and in-12
serting ‘‘The Secretary’’; and 13
(II) by striking subparagraph 14
(B); and 15
(iii) in subsection (e), by striking ‘‘1 16
year’’ and inserting ‘‘2 years’’; 17
(C) in section 423(a) (42 U.S.C. 11383)— 18
(i) in paragraph (4), in the third sen-19
tence— 20
(I) by striking ‘‘, at the discre-21
tion of the applicant and the project 22
sponsor,’’; and 23
(II) by inserting ‘‘not more than’’ 24
before ‘‘15 years’’; 25
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(ii) in paragraph (7), in the matter 1
preceding subparagraph (A), by inserting 2
‘‘payment of not more than 6 months of 3
arrears for rent and utility expenses,’’ 4
after ‘‘moving costs,’’; and 5
(iii) in paragraph (10), by striking ‘‘3 6
percent’’ and inserting ‘‘the greater of ei-7
ther $70,000 or 5 percent’’; 8
(D) in section 425 (42 U.S.C. 11385), by 9
adding at the end the following: 10
‘‘(f) ADJUSTMENT OF COSTS.—Not later than 1 year 11
after the date of enactment of this subsection, and on a 12 biennial basis thereafter, the Comptroller General of the 13 United States— 14
‘‘(1) shall study the hiring, retention, and com-15
pensation levels of the workforce providing the serv-16 ices described in subsection (c), including executive 17 directors, case managers, and frontline staff, and ex-18 amine whether low compensation is undermining 19
program effectiveness; 20
‘‘(2) shall submit to the appropriate congres-21
sional committees a report on any findings, and to 22
the Secretary any recommendations, as the Comp-23
troller General considers appropriate regarding fund-24 ing levels for the cost of the supportive services and 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00265 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 266
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the staffing to provide the services described in sub-1 section (c); and 2
‘‘(3) in carrying out the study under paragraph 3
(1), may reference the Consumer Price Index or 4
other similar surveys.’’; 5
(E) in section 426 (42 U.S.C. 11386), by 6
adding at the end the following: 7
‘‘(h) INSPECTIONS.—When complying with inspection 8
requirements for a housing unit provided to a homeless 9 individual or family using assistance under this subtitle, 10 the Secretary may allow a grantee to— 11
‘‘(1) conduct a pre-inspection not more than 60 12
days before leasing the unit; 13
‘‘(2) if the unit is located in a rural or small 14
area, conduct a remote or video inspection of a unit; 15 and 16
‘‘(3) allow the unit to be leased prior to comple-17
tion of an inspection if the unit passed an alter-18
native Federal inspection within the preceding 12- 19
month period, so long as the unit is inspected not 20
later than 15 days after the start of the lease.’’; and 21 (F) in section 430 (42 U.S.C. 11386d), by 22
adding at the end the following: 23
‘‘(d) C OSTS PAID BY PROGRAM INCOME.—With re-24
spect to grant amounts awarded under this subtitle, costs 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00266 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 267
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paid by the program income of a grant recipient may 1
count toward the contributions required under subsection 2 (a) if the costs— 3
‘‘(1) are eligible expenses under this subtitle; 4
‘‘(2) meet standards determined by the Sec-5
retary; and 6
‘‘(3) supplement activities carried out by the re-7
cipient under this subtitle.’’. 8
(2) OTHER MODIFICATIONS .— 9
(A) DEFINITIONS.—In this paragraph— 10
(i) the terms ‘‘collaborative applicant’’ 11
and ‘‘eligible entity’’ have the meanings 12
given those terms in section 401 of the 13
McKinney-Vento Homeless Assistance Act 14
(42 U.S.C. 11360); and 15
(ii) the terms ‘‘Indian tribe’’ and 16
‘‘tribally designated housing entity’’ have 17
the meanings given those terms in section 18
4 of the Native American Housing Assist-19
ance and Self-Determination Act of 1996 20
(25 U.S.C. 4103). 21
(B) N ONAPPLICATION OF CIVIL RIGHTS 22
LAWS.—With respect to the funds made avail-23
able for the Continuum of Care program au-24
thorized under subtitle C of title IV of the 25
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McKinney-Vento Homeless Assistance Act (42 1
U.S.C. 11381 et seq.) under the heading 2
‘‘Homeless Assistance Grants’’ in the Depart-3
ment of Housing and Urban Development Ap-4
propriations Act, 2021 (Public Law 116–260) 5
and under section 231 of the Department of 6
Housing and Urban Development Appropria-7
tions Act, 2020 (42 U.S.C. 11364a), title VI of 8
the Civil Rights Act of 1964 (42 U.S.C. 2000d 9
et seq.) and title VIII of the Civil Rights Act 10
of 1968 (42 U.S.C. 3601 et seq.) shall not 11
apply to applications by or awards for projects 12
to be carried out— 13
(i) on or off reservation or trust lands 14
for awards made to Indian tribes or trib-15
ally designated housing entities; or 16
(ii) on reservation or trust lands for 17
awards made to eligible entities. 18
(C) C ERTIFICATION.—With respect to 19
funds made available for the Continuum of 20
Care program authorized under subtitle C of 21
title IV of the McKinney-Vento Homeless As-22
sistance Act (42 U.S.C. 11381 et seq.) under 23
the heading ‘‘Homeless Assistance Grants’’ 24
under section 231 of the Department of Hous-25
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ing and Urban Development Appropriations 1
Act, 2020 (42 U.S.C. 11364a)— 2
(i) applications for projects to be car-3
ried out on reservations or trust land shall 4
contain a certification of consistency with 5
an approved Indian housing plan developed 6
under section 102 of the Native American 7
Housing Assistance and Self-Determina-8
tion Act (25 U.S.C. 4112), notwith-9
standing section 106 of the Cranston-Gon-10
zalez National Affordable Housing Act (42 11
U.S.C. 12706) and section 403 of the 12
McKinney-Vento Homeless Assistance Act 13
(42 U.S.C. 11361); 14
(ii) Indian tribes and tribally des-15
ignated housing entities that are recipients 16
of awards for projects on reservations or 17
trust land shall certify that they are fol-18
lowing an approved housing plan developed 19
under section 102 of the Native American 20
Housing Assistance and Self-Determina-21
tion Act (25 U.S.C. 4112); and 22
(iii) a collaborative applicant for a 23
Continuum of Care whose geographic area 24
includes only reservation and trust land is 25
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not required to meet the requirement in 1
section 402(f)(2) of the McKinney-Vento 2
Homeless Assistance Act (42 U.S.C. 3
11360a(f)(2)). 4
(d) AMENDMENTS TO THE HOUSING CHOICE VOUCH-5
ER PROGRAM.—Section 8(o)(5) of the United States 6
Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended 7 by adding at the end the following: 8
‘‘(C) E XCEPTIONS.—Notwithstanding sub-9
paragraph (A)— 10
‘‘(i) a public housing agency may ac-11
cept a third party income calculation and 12
verification of family income for purposes 13
of this subsection if— 14
‘‘(I) the calculation and 15
verification was completed for deter-16
mination of income eligibility for a 17
Federal program or service during the 18
preceding 12-month period; and 19
‘‘(II) there has been no change in 20
income or family composition since 21
the calculation and verification under 22
clause (i); and 23
‘‘(ii) when using prior year income 24
under section 3(a)(7)(B), a public housing 25
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agency shall use the income of the family 1
as determined by the agency or owner for 2
the prior calendar year or another 12- 3
month period ending during the preceding 4
12 months, taking into consideration any 5
redetermination of income between the 6
start of such prior calendar year or other 7
12-month period and the date of the an-8
nual review.’’; 9
(e) I MPROVING COORDINATION BETWEEN HEALTH 10
CARE SYSTEMS AND SUPPORTIVE SERVICES.—Not later 11
than 180 days after the date of enactment of this Act, 12 the Secretary of Health and Human Services and the Sec-13 retary shall seek to enter into an agreement with the Na-14 tional Academies of Sciences, Engineering, and Medicine 15 to conduct and submit to the appropriate congressional 16 committees an evidence-based, nonpartisan analysis 17
that— 18
(1) reviews the research on linkages between ac-19
cess to affordable health care and homelessness and 20
analyzes the effect of greater coordination and part-21 nerships between health care organizations, mental 22
health and substance use disorder and substance use 23
disorder service providers, and housing service pro-24
viders, including possible cost-savings from providing 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00271 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 272
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greater access to health services, recovery housing, 1
or housing-related supportive services for individuals 2 experiencing chronic homelessness and other types of 3
homelessness; and 4
(2) includes policy and program recommenda-5
tions for improving access to health care and hous-6
ing, health care and housing outcomes, possible cost- 7 savings and efficiencies, and best practices. 8
(f) DEMONSTRATION AUTHORITY.— 9
(1) I N GENERAL .—Subtitle A of title IV of the 10
McKinney-Vento Homeless Assistance Act (42 11
U.S.C. 11360 et seq.) is amended by adding at the 12
end the following: 13
‘‘SEC. 409. DEMONSTRATION AUTHORITY. 14
‘‘(a) DEFINITIONS.—In this section: 15
‘‘(1) A PPROPRIATE CONGRESSIONAL COMMIT -16
TEES.—The term ‘appropriate congressional com-17
mittees’ means— 18
‘‘(A) the Committee on Banking, Housing, 19
and Urban Affairs of the Senate; and 20
‘‘(B) the Committee on Financial Services 21
of the House of Representatives. 22
‘‘(2) H EALTH CARE ORGANIZATION .—The term 23
‘health care organization’ means an entity providing 24 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00272 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 273
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medical or mental and behavioral health care, in-1
cluding— 2
‘‘(A) a hospital (as defined in section 3
1861(e) of the Social Security Act (42 U.S.C. 4
1395x(e))); 5
‘‘(B) a Federally-qualified health center 6
(as defined in section 1905(l)(2) of the Social 7
Security Act (42 U.S.C. 1396d(l)(2))) or an-8
other community health center eligible to re-9
ceive a grant under section 330 of the Public 10
Health Service Act (42 U.S.C. 254b); and 11
‘‘(C) a licensed or certified provider of evi-12
dence-based substance use disorder services or 13
mental health services providing such services 14
pursuant to funding under a block grant for 15
substance use prevention, treatment, and recov-16
ery services or a block grant for community 17
mental health services under subpart II or sub-18
part I, respectively, of part B of title XIX of 19
the Public Health Service Act (42 U.S.C. 300x 20
et seq.). 21
‘‘(3) H OUSING PROVIDER .—The term ‘housing 22
provider’ means an entity, including a grant recipi-23
ent under subtitle B or C of this title, a public hous-24 ing agency (as defined in section 3 of the United 25
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States Housing Act of 1937 (42 U.S.C. 1437a)), or 1
a federally funded organization or a nonprofit orga-2
nization, that administers a program to provide 3
housing services to individuals experiencing or at 4
risk of homelessness, including rapid re-housing, 5
transitional housing, housing choice vouchers, and 6
housing-related supportive services. 7
‘‘(b) A UTHORITY.—The Secretary may establish 8
demonstration projects or partnerships that involve col-9 laboration between housing providers and healthcare orga-10 nizations to provide housing-related supportive services, 11 including— 12
‘‘(1) assistance in coordinating data systems in 13
a manner that is compliant with the Health Insur-14
ance Portability and Accountability Act (Public Law 15
104–191); and 16
‘‘(2) projects or partnerships that are aimed at 17
serving individuals— 18
‘‘(A) who are homeless, chronically home-19
less, or at risk of homelessness; and 20
‘‘(B) with— 21
‘‘(i) a high-use of emergency services 22
or emergency departments; 23
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‘‘(ii) chronic disabilities, including 1
physical health or mental health condi-2
tions; 3
‘‘(iii) substance use disorders; 4
‘‘(iv) serious mental illness; or 5
‘‘(v) other severe service needs. 6
‘‘(c) REPORT.—Not later than 2 years after the date 7
of enactment of this Act, and every 4 years thereafter, 8 the Secretary shall submit to the appropriate congres-9 sional committees a report on each demonstration project 10 or partnership established under this section.’’. 11
(2) T ECHNICAL AND CONFORMING AMEND -12
MENT.—The table of contents in section 101(b) of 13
the McKinney-Vento Homeless Assistance Act (42 14
U.S.C. 11301 note) is amended by inserting after 15
the item relating to section 408 the following: 16
‘‘Sec. 409. Demonstration authority.’’.
(g) STREAMLINING COORDINATED ENTRY.— 17
(1) A UDIT BY THE COMPTROLLER GENERAL .— 18
Not later than 1 year after the date of enactment 19
of this Act, the Comptroller General of the United 20
States shall— 21
(A) conduct a multi-community evaluation 22
of the operations of coordinated assessment sys-23
tems by the Continuum of Care Program under 24
subtitle C of title IV of the McKinney-Vento 25
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Homeless Assistance Act (42 U.S.C. 11381 et 1
seq.) program to examine the efficiency, accu-2
racy, and outcomes of those operations; and 3
(B) submit to the appropriate congres-4
sional committees on any findings and to the 5
Secretary on any recommendations, as the 6
Comptroller General considers appropriate, for 7
a more effective and efficient coordinated entry 8
process. 9
(2) A SSESSMENTS.—Not later than 2 years 10
after the date of enactment of this Act, the Sec-11
retary shall— 12
(A) evaluate the coordinated assessment 13
processes under the Continuum of Care Pro-14
gram under subtitle C of title IV of the McKin-15
ney-Vento Homeless Assistance Act (42 U.S.C. 16
11381 et seq.), which shall include— 17
(i) a request for information from 18
continuums of care about coordinated 19
entry tools, processes, barriers, documenta-20
tion barriers, and necessary guidance; 21
(ii) incorporation of findings from rel-22
evant reports and demonstrations of the 23
Department, including the report described 24
in paragraph (1); and 25
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(iii) consultation with organizations 1
with expertise in providing health care to 2
people experiencing homelessness on best 3
practices in assessment tools for 4
prioritizing resources and characterizing 5
chronic homelessness and people experi-6
encing homelessness with high-service 7
needs; 8
(B) issue an updated notice, which shall 9
include guidance— 10
(i) on effective assessment processes 11
that remove barriers, streamline access, 12
allow for coordination with public housing 13
agencies, include trauma-informed data 14
collection practices, improve accuracy, ad-15
dress needs for underserved groups, and 16
successfully rehouse homeless individuals; 17
(ii) that includes all key populations 18
and subpopulations, including consider-19
ation for age, family status, health status, 20
or other factors, access points, 21
prioritization, and programs and systems 22
serving individuals experiencing homeless-23
ness; and 24
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(iii) that allows for local flexibility and 1
tailoring based on the needs and resources 2
within the specific community; and 3
(C) establish a timely, periodic procedure 4
to request feedback on coordinated assessment 5
and update the guidance, which may include 6
conducting a request for information not less 7
frequently than once every 5 years. 8
(h) I MPROVING TARGETED DATA COLLECTION, 9
FUNDING, AND COORDINATION.—The Secretary shall— 10
(1) issue not less than 1 request for informa-11
tion on— 12
(A) improving data collection, including 13
through the use of the Homeless Management 14
Information System or other data systems; 15
(B) coordination and use of data between 16
housing and homelessness providers and phys-17
ical, mental, and behavioral health organiza-18
tions, substance use treatment providers, and 19
the Department of Veterans Affairs for imple-20
mentation of programs to provide services for 21
people experiencing or at risk of homelessness, 22
including the chronically homeless; and 23
(C) the potential benefits and risks of 24
using artificial intelligence models for the pur-25
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pose of improving program coordination and ef-1
fectiveness and assessing the effectiveness of 2
interventions to house individuals experiencing 3
or at risk of homelessness, including by sub- 4
populations; 5
(2) consider providing incentives to improve 6
data collection, enhance the use of the Homeless 7
Management Information System, implement com-8
munity information exchanges, and strengthen the 9
coordination of data from physical, mental, and be-10
havioral health organizations with housing and 11
homelessness providers, in order to target resources 12 for housing, outreach, homelessness prevention, and 13
housing-related supportive services for homeless indi-14 viduals, or chronically homeless individuals; and 15
(3) coordinate with the Secretary of the Depart-16
ment of Veterans Affairs to improve coordination be-17
tween data systems for vouchers provided under sec-18
tion 8(o)(19) of the United States Housing Act of 19
1937 (42 U.S.C. 1437f(o)(19)), the Homeless Man-20
agement Information System, and any other applica-21
ble homeless program supported by the Department 22
of Veterans Affairs. 23
(i) RULE OF CONSTRUCTION.— Nothing in this sec-24
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strued to limit the authority of the Secretary to provide 1 flexibility under housing laws in effect as of the date of 2 enactment of this Act. The flexibilities and waivers author-3 ized under this section and the amendments made by this 4 section shall not replace or result in the termination of 5 other flexibilities and waivers that the Secretary is author-6 ized to exercise. 7
SEC. 506. INCENTIVIZING LOCAL SOLUTIONS TO HOME-8
LESSNESS. 9
Section 414 of the McKinney-Vento Homeless Assist-10
ance Act (42 U.S.C. 11373) is amended by adding at the 11 end the following: 12
‘‘(f) FUNDING CAP WAIVER AUTHORITY.— 13
‘‘(1) I N GENERAL .—Notwithstanding any other 14
provision of law or regulation, a recipient may re-15
quest a waiver of the spending cap established pur-16
suant to section 415(b) for amounts provided be-17
tween fiscal years 2026 through 2029. 18
‘‘(2) WAIVER REQUEST .— 19
‘‘(A) I N GENERAL .—A recipient seeking a 20
waiver described in paragraph (1) shall submit 21
to the Secretary a waiver request that includes 22
not more than the following: 23
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‘‘(i) A demonstration of local needs 1
and circumstances that necessitate a waiv-2
er. 3
‘‘(ii) A detailed plan for how the re-4
cipient intends to use funds. 5
‘‘(iii) A justification for how the pro-6
posed use of funds supports the most re-7
cent Consolidated Annual Performance and 8
Evaluation Report of the recipient. 9
‘‘(iv) Any public input solicited under 10
subparagraph (B)(ii). 11
‘‘(B) N OTIFICATION.—Each recipient 12
shall— 13
‘‘(i) notify all subrecipients, including 14
local continuums of care, of the availability 15
of waivers under this subsection; and 16
‘‘(ii) prior to the submission of a 17
waiver request under subparagraph (A)), 18
solicit public input regarding the potential 19
need for and proposed uses of such waiver. 20
‘‘(C) A PPROVAL; PUBLICATION.—The Sec-21
retary shall— 22
‘‘(i) make all waiver requests sub-23
mitted under subparagraph (A) publicly 24
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available on the website of the Department 1
of Housing and Urban Development; 2
‘‘(ii) not later than 60 days after the 3
date on which the Secretary receives a 4
waiver request under subparagraph (A), 5
approve or deny the request; and 6
‘‘(iii) deny any waiver submitted 7
under subparagraph (A) by a recipient 8
that relocates or threaten to relocates indi-9
viduals or their property without providing 10
emergency shelter, rapid rehousing, transi-11
tional housing, permanent supportive hous-12
ing, or other permanent housing options. 13
‘‘(3) REVOCATION.— 14
‘‘(A) I N GENERAL .—A waiver approved 15
under this subsection shall remain in effect for 16
each of fiscal years 2026 through 2029 unless 17
the recipient notifies the Secretary in writing 18
that the recipient wishes to revoke the waiver. 19
‘‘(B) N OTIFICATION.—If a recipient re-20
vokes a waiver under subparagraph (A), the re-21
cipient shall solicit input from subrecipients re-22
garding the revocation and provide a justifica-23
tion for the revocation. 24
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‘‘(C) P UBLICATION.—The Secretary shall 1
publish any revocation of a waiver under sub-2
paragraph (A) and the justification of the re-3
cipient for the waiver on the website of the De-4
partment of Housing and Urban Develop-5
ment.’’. 6
TITLE VI—VETERANS AND 7
HOUSING 8
SEC. 601. VA HOME LOAN AWARENESS ACT. 9
(a) I N GENERAL.—Subpart A of part 2 of the Fed-10
eral Housing Enterprises Financial Safety and Soundness 11 Act of 1992 (12 U.S.C. 4541 et seq.) is amended by add-12 ing at the end the following: 13
‘‘SEC. 1329. UNIFORM RESIDENTIAL LOAN APPLICATION. 14
‘‘Not later than 6 months after the date of enactment 15 of this section, the Director shall, by regulation or order, 16 require each enterprise to include a disclaimer below the 17 military service question on the form known as the Uni-18 form Residential Loan Application stating, ‘If yes, you 19 may qualify for a VA Home Loan. Consult your lender 20
regarding eligibility.’.’’. 21
(b) GAO S TUDY.—Not later than 18 months after 22
the date of enactment of this Act, the Comptroller General 23 of the United States shall conduct a study and submit to 24 Congress a report on whether not less than 80 percent 25 VerDate Sep 11 2014 01:41 Aug 02, 2025 Jkt 059200 PO 00000 Frm 00283 Fmt 6652 Sfmt 6201 E:\BILLS\S2651.RS S2651ssavage on LAPJG3WLY3PROD with BILLS 284
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of lenders using the Uniform Residential Loan Application 1 have included on that form the disclaimer required under 2 section 1329 of the Federal Housing Enterprises Finan-3 cial Safety and Soundness Act of 1992, as added by sub-4 section (a). 5
SEC. 602. VETERANS AFFAIRS LOAN INFORMED DISCLO-6
SURE (VALID) ACT. 7
(a) FHA I NFORMED CONSUMER CHOICE DISCLO-8
SURE.— 9
(1) I NCLUSION OF INFORMATION RELATING TO 10
VA LOANS .—Subparagraph (A) of section 203(f)(2) 11
of the National Housing Act (12 U.S.C. 12
1709(f)(2)(A)) is amended— 13
(A) by inserting ‘‘(i)’’ after ‘‘loan-to-value 14
ratio’’; and 15
(B) by inserting before the semicolon the 16
following: ‘‘, and (ii) in connection with a loan 17
guaranteed or insured under chapter 37 of title 18
38, United States Code, assuming prevailing in-19
terest rates’’. 20
(2) R ULE OF CONSTRUCTION .—Nothing in the 21
amendments made by paragraph (1) shall be con-22
strued to require an original lender to determine 23
whether a prospective borrower is eligible for any 24
loan included in the notice required under section 25
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203(f) of the National Housing Act (12 U.S.C. 1
1709(f)). 2
(b) MILITARY SERVICE QUESTION.— 3
(1) I N GENERAL .—Subpart A of part 2 of sub-4
title A of the Federal Housing Enterprises Financial 5
Safety and Soundness Act of 1992 (12 U.S.C. 4541 6
et seq.), as amended by section 601(a) of this Act, 7
is amended by adding at the end the following: 8
‘‘SEC. 1330. UNIFORM RESIDENTIAL LOAN APPLICATION. 9
‘‘Not later than 6 months after the date of enactment 10 of this section, the Director shall require each enterprise 11 to— 12
‘‘(1) include a military service question on the 13
form known as the Uniform Residential Loan Appli-14
cation; and 15
‘‘(2) position the question described in para-16
graph (1) above the signature line of the Uniform 17
Residential Loan Application.’’. 18
(2) R ULEMAKING.—Not later than 6 months 19
after the date of enactment of this Act, the Director 20 of the Federal Housing Finance Agency shall issue 21
a rule to carry out the amendment made by this sec-22
tion. 23
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SEC. 603. HOUSING UNHOUSED DISABLED VETERANS ACT. 1
(a) E XCLUSION OF CERTAIN DISABILITY BENE-2
FITS.—Section 3(b)(4)(B) of the United States Housing 3 Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is amended— 4
(1) by redesignating clauses (iv) and (v) as 5
clauses (vi) and (vii), respectively; and 6
(2) by inserting after clause (iii) the following: 7
‘‘(iv) for the purpose of determining 8
income eligibility with respect to the sup-9
ported housing program under section 10
8(o)(19), any disability benefits received 11
under chapter 11 or chapter 15 of title 38, 12
United States Code, received by a veteran, 13
except that this exclusion shall not apply 14
to the income in the definition of adjusted 15
income; 16
‘‘(v) for the purpose of determining 17
income eligibility with respect to any 18
household receiving rental assistance under 19
the supported housing program under sec-20
tion 8(o)(19) as it relates to eligibility for 21
other types of housing assistance, any dis-22
ability benefits received under chapter 11 23
or chapter 15 of title 38, United States 24
Code, received by a veteran, except that 25
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this exclusion shall not apply to income in 1
the definition of adjusted income;’’. 2
(b) T REATMENT OF CERTAIN DISABILITY BENE-3
FITS.— 4
(1) I N GENERAL .—When determining the eligi-5
bility of a veteran to rent a residential dwelling unit 6 constructed on Department property on or after the 7
date of the enactment of this Act, for which assist-8
ance is provided as part of a housing assistance pro-9
gram administered by the Secretary, the Secretary 10
shall exclude from income any disability benefits re-11 ceived under chapter 11 or chapter 15 of title 38, 12
United States Code by such person. 13
(2) DEFINITIONS.—In this subsection: 14
(A) S ECRETARY.—The term ‘‘Secretary’’ 15
means the Secretary of Housing and Urban De-16
velopment. 17
(B) D EPARTMENT PROPERTY .—The term 18
‘‘Department property’’ has the meaning given 19
the term in section 901 of title 38, United 20
States Code. 21
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TITLE VII—OVERSIGHT AND 1
ACCOUNTABILITY 2
SEC. 701. REQUIRING ANNUAL TESTIMONY AND OVER-3
SIGHT FROM HOUSING REGULATORS. 4
(a) HUD P ROGRAMS.—The Department of Housing 5
and Urban Development Act (42 U.S.C. 3531 et seq.) is 6 amended by adding at the end the following: 7
‘‘SEC. 15. ANNUAL TESTIMONY. 8
‘‘The Secretary shall, on an annual basis, testify be-9 fore the Committee on Banking, Housing, and Urban Af-10 fairs of the Senate and the Committee on Financial Serv-11 ices of the House of Representatives on the status of all 12 programs carried out by the Department, at the request 13 of the relevant committee.’’. 14
(b) GOVERNMENT GUARANTEED OR INSURED MORT-15
GAGES.—On an annual basis, the following individuals 16 shall testify before the appropriate committees of Congress 17 with respect to mortgage loans made, guaranteed, or in-18 sured by the Federal Government: 19
(1) The President of the Government National 20
Mortgage Association. 21
(2) The Federal Housing Commissioner. 22
(3) The Administrator of the Rural Housing 23
Service. 24
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(4) The Executive Director of the Loan Guar-1
anty Service of the Department of Veterans Affairs. 2
(5) The Director of the Federal Housing Fi-3
nance Agency. 4
(c) MORTGAGEE REVIEW BOARD.—Section 202(c)(8) 5
of the National Housing Act (12 U.S.C. 1708(c)(8)) is 6 amended— 7
(1) by striking ‘‘, in consultation with the Fed-8
eral Housing Administration Advisory Board,’’; and 9
(2) by inserting ‘‘and to Congress’’ after ‘‘the 10
Secretary’’. 11
SEC. 702. FHA REPORTING REQUIREMENTS ON SAFETY 12
AND SOUNDNESS. 13
(a) M ONTHLY REPORTING ON MUTUAL MORTGAGE 14
INSURANCE FUND CAPITAL RATIO.—Section 202(a) of 15
the National Housing Act (12 U.S.C. 1708(a)) is amended 16 by adding at the end the following: 17
‘‘(8) O THER REQUIRED REPORTING .—The Sec-18
retary shall— 19
‘‘(A) submit to Congress monthly reports 20
on the capital ratio required under section 21
205(f)(2); and 22
‘‘(B) notify Congress as soon as prac-23
ticable after the Fund falls below the capital 24
ratio required under section 205(f)(2).’’. 25
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(b) A NNUAL INDEPENDENT ACTUARIAL STUDY.— 1
Section 202(a)(4) of the National Housing Act (12 U.S.C. 2 1708(a)(4)) is amended— 3
(1) by striking ‘‘The Secretary’’ and inserting 4
the following: 5
‘‘(A) D EFINITION.—In this paragraph, the 6
term ‘first-time homebuyer’ means a borrower 7
for whom no consumer report (as defined in 8
section 603 of the Fair Credit Reporting Act 9
(15 U.S.C. 1681a)) indicates that the borrower 10
has or had a loan with a consumer purpose that 11
is secured by a 1- to 4-unit residential real 12
property. 13
‘‘(B) S TUDY AND REPORT .—The Sec-14
retary’’; and 15
(2) in subparagraph (B), as so designated, by 16
striking ‘‘also’’ and inserting ‘‘detail how many loans 17 were originated in each census tract to first-time 18
homebuyers, as well as’’. 19
(c) ANNUAL REPORT.—Section 203(w)(2) of the Na-20
tional Housing Act (12 U.S.C. 1709(w)(2)) is amended 21 by inserting ‘‘and first-time homebuyers (as defined in sec-22 tion 202(a)(4)(A))’’ after ‘‘minority borrowers’’. 23
(d) GAO S TUDY ON SUSTAINABLE HOMEOWNER-24
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ment of this Act, the Comptroller General of the United 1 States shall conduct a study and submit to Congress a 2 report on— 3
(1) the value for the Federal Housing Adminis-4
tration of defining what is sustainable homeowner-5
ship in a way that considers borrower default, refi-6
nancing of a mortgage that is not insured by the 7
Federal Housing Administration, the Department of 8
Veterans Affairs, or Rural Housing Service, paying 9
off a mortgage loan and transitioning back to rent-10
ing, and other factors that demonstrate whether in-11
surance provided under title II of the National 12
Housing Act (12 U.S.C. 1707 et seq.) has success-13
fully served a borrower, including for first-time 14
homebuyers for whom no consumer report (as de-15
fined in section 603 of the Fair Credit Reporting 16
Act (15 U.S.C. 1681a)) indicates that the borrower 17
has or had a loan with a consumer purpose that is 18
secured by a 1- to 4-unit residential real property; 19 and 20
(2) the feasibility of the Federal Housing Ad-21
ministration developing a scorecard using the 22
metrics described in paragraph (1) to measure bor-23
rower performance and reporting the scorecard data 24
to Congress. 25
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SEC. 703. UNITED STATES INTERAGENCY COUNCIL ON 1
HOMELESSNESS OVERSIGHT. 2
Section 203(a) of the McKinney-Vento Homeless As-3
sistance Act (42 U.S.C. 11313(a)) is amended— 4
(1) in paragraph (1)— 5
(A) by striking ‘‘Homeless Emergency As-6
sistance and Rapid Transition to Housing Act 7
of 2009’’ and inserting ‘‘Renewing Opportunity 8
in the American Dream to Housing Act’’; and 9
(B) by striking ‘‘update such plan annu-10
ally’’ and inserting the following: ″submit to the 11
President and Congress a report every year 12
thereafter that includes— ‘‘ 13
‘‘(A) the status of completion of the plan; 14
and 15
‘‘(B) any modifications that were made to 16
the plan and the reasons for those modifica-17
tions;’’; 18
(2) by redesignating paragraphs (10) through 19
(13) as paragraphs (11) through (14), respectively; 20
(3) by redesignating the second paragraph (9) 21
(relating to collecting and disseminating informa-22
tion) as paragraph (10); 23
(4) in paragraph (13), as so redesignated, by 24
striking ‘‘and’’ at the end; 25
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(5) in paragraph (14), as so redesignated, by 1
striking the period at the end and inserting ‘‘; and 2
(6) by adding at the end the following: 3
‘‘(15) testify annually before Congress.’’. 4
SEC. 704. NEIGHBORWORKS ACCOUNTABILITY ACT. 5
(a) I N GENERAL.—Section 415(a)(1)(A) of title 5, 6
United States Code, is amended by inserting ‘‘the Neigh-7 borhood Reinvestment Corporation,’’ after ‘‘the Postal 8 Regulatory Commission,’’. 9
(b) D UTIES AND AUDITS.—The Neighborhood Rein-10
vestment Corporation Act (42 U.S.C. 8101 et seq.) is 11 amended— 12
(1) in section 606 (42 U.S.C. 8105), by adding 13
at the end the following: 14
‘‘(e)(1) There is authorized to be appropriated to the 15 Office of Inspector General of the corporation established 16 under section 415 of title 5, United States Code, such 17 sums as may be necessary to carry out this Act. 18
‘‘(2) There shall not be transferred to the Office of 19 Inspector General of the corporation any program oper-20 ating responsibilities of the corporation, including the or-21 ganizational assessments work and grantee oversight func-22 tion of the corporation.’’. 23
(c) I NDEPENDENT AUDIT.—Section 607 of the 24
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8106) is amended by striking subsection (b) and inserting 1 following: 2
‘‘(b)(1) The accounts of the corporation shall be au-3
dited annually by an independent external auditor. 4
‘‘(2) Notwithstanding any other audit work per-5
formed by the Office of Inspector General of the corpora-6 tion, the audits required under paragraph (1) shall be con-7 ducted in accordance with generally accepted auditing 8 standards by independent certified public accountants who 9 are certified by a regulatory authority of the jurisdiction 10 in which the audit is undertaken.’’. 11
SEC. 705. APPRAISAL MODERNIZATION ACT. 12
(a) RECONSIDERATION OF VALUE.— 13
(1) I N GENERAL .—Section 129E of the Truth 14
In Lending Act (15 U.S.C. 1639e) is amended— 15
(A) by redesignating subsections (j) and 16
(k) as subsections (k) and (l), respectively; and 17
(B) by inserting after subsection (i) the 18
following: 19
‘‘(j) C ONSUMER RIGHT TO RECONSIDERATION OF 20
VALUE OR SUBSEQUENT APPRAISAL.— 21
‘‘(1) DEFINITIONS.—In this section: 22
‘‘(A) U NACCEPTABLE APPRAISAL PRAC -23
TICE.—The term ‘unacceptable appraisal prac-24
tice’ means an appraisal report that— 25
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‘‘(i) uses unsupported or subjective 1
terms to assess or rate the property with-2
out providing a foundation for analysis and 3
contextual information; 4
‘‘(ii) uses inaccurate or incomplete 5
data about the subject property, the neigh-6
borhood, the market area, or any com-7
parable property; 8
‘‘(iii) includes references, statements 9
or comparisons about crime rates or crime 10
statistics, whether objective or subjective; 11
‘‘(iv) relies in the appraisal analysis 12
on comparable properties that were not 13
personally inspected by the appraiser when 14
required by the appraisal’s scope of work; 15
‘‘(v) relies in the appraisal analysis on 16
inappropriate comparable properties; 17
‘‘(vi) fails to use comparable prop-18
erties that are more similar, or nearer, to 19
the subject property without adequate ex-20
planation; 21
‘‘(vii) uses comparable property data 22
provided by any interested party to the 23
transaction without verification by a disin-24
terested party; 25
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‘‘(viii) uses inappropriate adjustments 1
for differences between the subject prop-2
erty and the comparable properties that do 3
not reflect the market’s reaction to such 4
differences; or 5
‘‘(ix) fails to make proper adjust-6
ments, including time adjustments for dif-7
ferences between the subject property and 8
the comparable properties when necessary. 9
‘‘(B) U NSUPPORTED.—The term ‘unsup-10
ported’ means, with respect to an appraisal re-11
port or an appraiser’s opinion of value, that the 12
appraisal report or the opinion of value is not 13
supported by relevant evidence and logic. 14
‘‘(2) R EVIEW.—In connection with a consumer 15
credit transaction secured by a consumer’s principal 16 dwelling, a creditor shall have a review and resolu-17
tion procedure for a consumer-initiated reconsider-18
ation of value or subsequent appraisal that complies 19 with the following requirements: 20
‘‘(A) The creditor shall complete its own 21
appraisal review before delivering the appraisal 22
to the consumer. 23
‘‘(B) The creditor shall have policies and 24
procedures that provide the consumer with a 25
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process to submit 1 request for a reconsider-1
ation of value and subsequent appraisal prior to 2
the loan closing or within 60 calendar days of 3
denial of a credit application if the consumer 4
believes the appraisal report may be unsup-5
ported, may be deficient due to an unacceptable 6
appraisal practice, or may reflect discrimina-7
tion. 8
‘‘(C) At the time of application and upon 9
delivery of the appraisal report to the con-10
sumer, the creditor shall provide a written dis-11
closure to the consumer describing the process 12
for requesting a reconsideration of value or sub-13
sequent appraisal, which written disclosure shall 14
include a standardized format for the consumer 15
to submit the request for a reconsideration of 16
value, including— 17
‘‘(i) the name of the borrower; 18
‘‘(ii) the property address; 19
‘‘(iii) the effective date of the ap-20
praisal; 21
‘‘(iv) the appraiser’s name; 22
‘‘(v) the date of the request; 23
‘‘(vi) a description of why the con-24
sumer believes the appraisal report may be 25
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unsupported, may be deficient due to an 1
unacceptable appraisal practice, or may re-2
flect discrimination; 3
‘‘(vii) any additional information, 4
data, including not more than 5 alternative 5
comparable properties and the related data 6
sources that the consumer would like the 7
appraiser to consider; and 8
‘‘(viii) an explanation of why the new 9
information, data, or comparable prop-10
erties support the reconsideration of value. 11
‘‘(D) The creditor shall obtain the nec-12
essary information from the consumer if the 13
consumer’s request for reconsideration of value 14
or subsequent appraisal is unclear or requires 15
more information. 16
‘‘(E) The creditor shall have a standard-17
ized format to communicate the reconsideration 18
of value to the appraiser, which format shall in-19
clude— 20
‘‘(i) the name of the borrower; 21
‘‘(ii) the property address; 22
‘‘(iii) the effective date of the ap-23
praisal; 24
‘‘(iv) the appraiser’s name; 25
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‘‘(v) the date of the request; 1
‘‘(vi) a description of any area of the 2
appraisal report that may be unsupported, 3
may be deficient due to an unacceptable 4
appraisal practice, or may reflect discrimi-5
nation; 6
‘‘(vii) any additional information, 7
data, including not more than 5 alternative 8
comparable properties and the related data 9
sources that the consumer would like the 10
appraiser to consider; 11
‘‘(viii) an explanation of why the new 12
information, data, or comparable prop-13
erties support the reconsideration of value; 14
‘‘(ix) a definition of turn-time expecta-15
tions for the appraiser to communicate the 16
reconsideration of value results back to the 17
creditor; 18
‘‘(x) instructions for delivering the re-19
consideration of value response as part of 20
a revised appraisal report that includes 21
commentary on conclusions regardless of 22
the outcome; and 23
‘‘(xi) a reference for appraisers on 24
how to correct minor appraisal issues or 25
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non-material errors not related to the re-1
consideration of value process. 2
‘‘(3) S UBSEQUENT APPRAISAL AND REFER -3
RAL.— 4
‘‘(A) I N GENERAL .—If the creditor identi-5
fies material deficiencies in the appraisal report 6
that are not corrected or addressed by the ap-7
praiser upon request of the creditor, including 8
through a consumer-initiated reconsideration of 9
value, or if there is evidence of unsupported or 10
unacceptable appraisal practices, the creditor 11
shall— 12
‘‘(i) at the request of the consumer, 13
order a subsequent appraisal at the credi-14
tor’s own expense; and 15
‘‘(ii) forward the appraisal report and 16
the creditor’s summary of findings to the 17
appropriate appraisal licensing agency or 18
regulatory board. 19
‘‘(B) D ISCRIMINATION.—If the creditor 20
has reason to believe that an appraisal report 21
reflects discrimination, the creditor shall— 22
‘‘(i) order a subsequent appraisal, at 23
the creditor’s own expense; 24
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‘‘(ii) forward the appraisal report and 1
the creditor’s summary of findings to the 2
appropriate local, State, or Federal en-3
forcement agency; and 4
‘‘(iii) upon a final determination of 5
discrimination by the appropriate local, 6
State, or Federal enforcement agency, re-7
ceive a reimbursement from the appraiser 8
covering the cost of the subsequent ap-9
praisal ordered by the creditor. 10
‘‘(C) DEFINITION.— 11
‘‘(i) I N GENERAL .—Except as pro-12
vided in clause (ii), in this paragraph, the 13
term ‘reason to believe’ means that the 14
creditor has reviewed the applicable law 15
and available evidence and determined that 16
a potential violation of Federal or state 17
antidiscrimination law exists. The available 18
evidence may include the appraisal report, 19
loan files, written communications, credible 20
observations by persons with direct knowl-21
edge, statistical analysis, and the apprais-22
er’s response to the request for a reconsid-23
eration of value. 24
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‘‘(ii) E XCEPTION.—The term ‘reason 1
to believe’ does not mean that there is a 2
final legal determination of discrimination. 3
‘‘(4) D OCUMENT RETENTION .—The creditor 4
shall retain all documentation and written commu-5
nications related to the request for reconsideration 6
of value or subsequent appraisal in the loan file dur-7 ing the 7-year period beginning on the date on which 8
the consumer submitted the credit application. 9
‘‘(5) R ULE OF CONSTRUCTION .—This sub-10
section is consistent with the exceptions to the ap-11
praiser independence requirements found in sub-12
section (c). Nothing in this subsection shall be con-13 strued to require a creditor to submit a reconsider-14
ation of value to the original appraiser before order-15 ing a subsequent appraisal from a subsequent ap-16
praiser.’’. 17
(2) R ULES AND INTERPRETATIVE GUIDE -18
LINES.—Section 129E(g) of the Truth in Lending 19
Act (15 U.S.C. 1639e(g)) is amended— 20
(A) in paragraph (1), by striking ‘‘para-21
graph (2), the Board’’ and inserting ‘‘para-22
graphs (2) and (3), the Bureau’’; and 23
(B) by adding at the end the following: 24
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‘‘(3) FINAL RULE .—Not later than 1 year after 1
the date of enactment of this paragraph, the Federal 2
Housing Finance Agency shall issue a final rule 3
after notice and comment and issue such guidance 4
as may be necessary to carry out and enforce sub-5
section (j).’’. 6
(b) PUBLIC APPRAISAL DATABASE.—— 7
(1) C OVERED AGENCIES DEFINED .—The term 8
‘‘covered agencies’’ means— 9
(A) the Federal Housing Finance Agency, 10
on behalf of the Federal National Mortgage As-11
sociation and the Federal Home Loan Mortgage 12
Corporation; 13
(B) the Department of Housing and 14
Urban Development, including the Federal 15
Housing Administration; 16
(C) the Department of Agriculture; and 17
(D) the Department of Veterans Affairs. 18
(2) F EASIBILITY REPORT .—No later than 240 19
days after the date of enactment of this Act, the 20
Comptroller General of the United States shall issue 21 a public report to Congress assessing the feasibility 22 of creating a publicly available appraisal database 23
that consists of a searchable and downloadable ap-24
praisal-level public use file that consolidates ap-25
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praisal data held or aggregated by covered agencies, 1
which shall include— 2
(A) the costs and benefits associated with 3
establishing and maintaining the public data-4
base; 5
(B) the benefits and risks associated with 6
either the Federal Housing Finance Agency or 7
the Bureau of Consumer Financial Protection 8
being responsible for the public database and 9
whether there is another Federal agency best 10
suited for implementing and administering such 11
database; 12
(C) any safety and soundness, antitrust, or 13
consumer privacy-related risks associated with 14
making certain appraisal data factors publicly 15
available, including whether– 16
(i) there are any existing legal re-17
quirements, including under the Home 18
Mortgage Disclosure Act of 1974 (12 19
U.S.C. 2801 et seq.) and section 552 of 20
title 5, United States Code (commonly 21
known as the ‘‘Freedom of Information 22
Act’’), or additional actions Federal agen-23
cies could take to mitigate such risks, such 24
as modifying or aggregating data, or elimi-25
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nating personally identifiable information; 1
and 2
(ii) there are any data factors that, if 3
made public, may violate conduct, ethics, 4
or other professional standards as they re-5
late to appraisals and appraisal or valu-6
ation professionals; 7
(D) the feasibility of consolidating or 8
matching appraisal data held by covered agen-9
cies with corresponding data that is required 10
and made public under the Home Mortgage 11
Disclosure Act of 1974 (12 U.S.C. 2801 et 12
seq.); 13
(E) whether the publication of any ap-14
praisal data factors may pose unfair business 15
advantages within the valuation industry; 16
(F) the feasibility of including all valuation 17
data held by covered agencies, including data 18
produced by automated valuation models; 19
(G) the feasibility and benefits of making 20
the full appraisal dataset, including any modi-21
fied fields, available to— 22
(i) Federal agencies, including for 23
purposes related to enforcement and super-24
vision responsibilities; 25
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(ii) relevant State licensing, super-1
vision, and enforcement agencies and State 2
attorneys general; 3
(iii) approved researchers, including 4
academics and nonprofit organizations 5
that, in connection with their mission, 6
work to ensure the fairness and consist-7
ency of home valuations, including apprais-8
als; and 9
(iv) any other entities identified by 10
the Comptroller General as having a com-11
pelling use for disaggregated data; 12
(H) what appraisal data is already avail-13
able in the public domain; and 14
(I) the feasibility of incorporating legacy 15
data held by covered agencies during the period 16
beginning on January 1, 2017 and ending on 17
the date of enactment of this Act, and whether 18
there are specific data points not easily consoli-19
dated or matched, as described in subparagraph 20
(D), with more recent data. 21
(3) PURPOSE.—The database described in para-22
graph (2) shall be used to provide the public, the 23
Federal Government, and State governments with 24
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mine whether financial institutions, appraisal man-1
agement companies, appraisers, valuation tech-2
nologies, such as automated valuation models, and 3
other valuation professionals are serving the housing 4 market in a manner that is efficient and consistent 5
for all mortgage loan applicants, borrowers, and 6
communities. 7
(4) C ONSULTATION.—As part of the informa-8
tion used in the report required under paragraph 9
(2), the Comptroller General of the United States 10
shall conduct interviews with— 11
(A) relevant Federal agencies; 12
(B) relevant State licensing, supervision, 13
and enforcement agencies and State attorneys 14
general; 15
(C) appraisers and other home valuation 16
industry professionals; 17
(D) mortgage lending institutions; 18
(E) fair housing and fair lending experts; 19
and 20
(F) any other relevant stakeholders as de-21
termined by the Comptroller General. 22
(5) H EARING.—Upon the completion of the re-23
port under paragraph (2), the Committee on Bank-24
ing, Housing, and Urban Affairs of the Senate and 25
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•S 2651 RS
the Committee on Financial Services of the House of 1
Representatives shall each hold a hearing on the 2
findings of the report and the feasibility of estab-3
lishing a public appraisal-level appraisal database. 4
TITLE VIII—COORDINATION, 5
STUDIES, AND REPORTING 6
SEC. 801. HUD-USDA-VA INTERAGENCY COORDINATION 7
ACT. 8
(a) M EMORANDUM OF UNDERSTANDING.—The Sec-9
retary of Housing and Urban Development, the Secretary 10 of Agriculture, and the Secretary of Veterans Affairs shall 11 establish a memorandum of understanding, or other ap-12 propriate interagency agreement, to share relevant hous-13 ing-related research and market data that facilitates evi-14 dence-based policymaking. 15
(b) INTERAGENCY REPORT.— 16
(1) R EPORT.—Not later than 180 days after 17
the date of enactment of this Act, the Secretary of 18
Housing and Urban Development, the Secretary of 19
Agriculture, and the Secretary of Veterans Affairs 20
shall jointly submit to the Committee on Banking, 21
Housing, and Urban Affairs of the Senate and the 22
Committee on Finance of the House of Representa-23
tives a report containing— 24
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(A) a description of opportunities for in-1
creased collaboration between the Secretary of 2
Housing and Urban Development, the Secretary 3
of Agriculture, and the Secretary of Veterans 4
Affairs to reduce inefficiencies in housing pro-5
grams; 6
(B) a list of Federal laws and regulations 7
that adversely affect the availability and afford-8
ability of new construction of assisted housing 9
and single family and multifamily residential 10
housing subject to mortgages insured under 11
title II of the National Housing Act (12 U.S.C. 12
1707 et seq.), insured, guaranteed, or made by 13
the Secretary of Agriculture under title V of the 14
Housing Act of 1949 (42 U.S.C. 1471 et seq.), 15
or insured, guaranteed, or made by the Sec-16
retary of Veterans Affairs under chapter 37 of 17
title 38, United States Code; and 18
(C) recommendations for Congress regard-19
ing the Federal laws and regulations described 20
in subparagraph (B). 21
(2) P UBLICATION.—The report required under 22
paragraph (1) shall, prior to submission under that 23
subsection, be published in the Federal Register and 24 open for comment for a period of 30 days. 25
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SEC. 802. STREAMLINING RURAL HOUSING ACT. 1
(a) IN GENERAL.—Not later than 180 days after the 2
date of enactment of this Act, the Secretary of Housing 3 and Urban Development and the Secretary of Agriculture 4 shall enter into a memorandum of understanding to— 5
(1) evaluate categorical exclusions under the en-6
vironmental review process for housing projects 7
funded by amounts from the Department of the 8
Housing and Urban Development and the Depart-9
ment of Agriculture; 10
(2) develop a process to designate a lead agency 11
and streamline adoption of Environmental Impact 12
Statements and Environmental Assessments ap-13
proved by the other Department to construct hous-14
ing projects funded by both agencies; 15
(3) maintain compliance with environmental 16
regulations under part 58 of title 24, Code of Fed-17
eral Regulations, as in effect on January 1, 2025, 18
except as required to amend, add, or remove cat-19
egorical exclusions identified under sections 58.35 of 20 title 24, Code of Federal Regulations, through 21
standard rulemaking procedures; and 22
(4) evaluate the feasibility of a joint physical in-23
spection process for housing projects funded by 24
amounts from the Department of the Housing and 25
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Urban Development and the Department of Agri-1
culture. 2
(b) ADVISORY WORKING GROUP.— 3
(1) I N GENERAL .—Not later than 180 days 4
after the date of enactment of this Act, the Sec-5
retary of Housing and Urban Development and the 6
Secretary of Agriculture shall establish an advisory 7
working group for the purpose of consulting on the 8
memorandum of understanding entered into under 9
subsection (a). 10
(2) M EMBERS.—The advisory working group 11
established under paragraph (1) shall consist of rep-12 resentatives of— 13
(A) affordable housing nonprofit organiza-14
tions; 15
(B) State housing agencies; 16
(C) nonprofit and for-profit home builders 17
and housing developers; 18
(D) property management companies; 19
(E) public housing agencies; 20
(F) residents in housing assisted by the 21
Department of Housing and Urban Develop-22
ment or the Department of Agriculture and 23
representatives of those residents; and 24
(G) housing contract administrators. 25
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(c) R EPORT.—Not later than 1 year after the date 1
of enactment of this Act, the Secretary of Housing and 2 Urban Development and the Secretary of Agriculture shall 3 submit to the Committee on Banking, Housing, and 4
Urban Affairs of the Senate and the Committee on Finan-5 cial Services of the House of Representatives a report that 6 includes recommendations for legislative, regulatory, or 7 administrative actions— 8
(1) to improve the efficiency and effectiveness 9
of housing projects funded by amounts from the De-10
partment of the Housing and Urban Development 11
and the Department of Agriculture; and 12
(2) that do not materially, with respect to resi-13
dents of housing projects described in paragraph 14
(1)— 15
(A) reduce the safety of those residents; 16
(B) shift long-term costs onto those resi-17
dents; or 18
(C) undermine the environmental stand-19
ards of those residents. 20
SEC. 803. IMPROVING SELF-SUFFICIENCY OF FAMILIES IN 21
HUD-SUBSIDIZED HOUSING. 22
(a) IN GENERAL.— 23
(1) STUDY.—Subject to subsection (b), the Sec-24
retary of Housing and Urban Development shall 25
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conduct a study on the implementation of work re-1
quirements implemented prior to the date of enact-2
ment of this Act by public housing agencies de-3
scribed in paragraph (4) participating in the Moving 4
to Work demonstration authorized under section 204 5
of the Departments of Veterans Affairs and Housing 6
and Urban Development, and Independent Agencies 7
Appropriations Act, 1996 (42 U.S.C. 1437f note). 8
(2) S COPE.—The study required under para-9
graph (1) shall— 10
(A) consider the short-, medium-, and 11
long-term benefits and challenges of work re-12
quirements on public housing agencies described 13
in paragraph (4) and on program participants 14
who are subject to such requirements, including 15
the effects work requirements have on home-16
lessness rates, poverty rates, asset building, 17
earnings growth, job attainment and retention, 18
and public housing agencies’ administrative ca-19
pacity; and 20
(B) include quantitative and qualitative 21
evidence, including interviews with program 22
participants described in subparagraph (A) and 23
their respective resident councils. 24
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(3) R EPORT.—Not later than 180 days after 1
the date of enactment of this Act, the Secretary 2
shall report the initial findings of the study required 3 under paragraph (1) to the Committee on Banking, 4
Housing, and Urban Affairs of the Senate and the 5
Committee on Financial Services of the House of 6
Representatives. 7
(4) P UBLIC HOUSING AGENCIES DESCRIBED .— 8
The public housing agencies described in this para-9
graph are public housing agencies that, as part of an 10 application to participate in the program under sec-11
tion 204 of the Departments of Veterans Affairs and 12
Housing and Urban Development, and Independent 13
Agencies Appropriations Act, 1996 (42 U.S.C. 1437f 14
note), submit a proposal identifying work require-15
ments as an innovative proposal. 16
(b) D ETERMINATION.—The requirement under sub-17
section (a) shall apply if the Secretary of Housing and 18 Urban Development determines that— 19
(1) there are a sufficient number of public 20
housing agencies described in subsection (a)(4) such 21 that the Secretary of Housing and Urban Develop-22
ment can rigorously evaluate the impact of the im-23
plementation of work requirements described in that 24
subsection; and 25
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(2) the study would not negatively impact low- 1
income families receiving assistance through a public 2 housing agency described in subsection (a)(4). 3
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119THCONGRESS
1STSESSION S. 2651
A BILL
To increase the supply of affordable housing in
America.

AUGUST1, 2025
Read twice and placed on the calendar
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