1. Short title
This Act may be cited as the “Foreclosure Restitution Act of 2014”.
Foreclosure Restitution Act of 2014
A BILL
To provide amounts from the recent settlement between the Department of Justice and Bank of America for assistance under the Neighborhood Stabilization Program.
2. Use of settlement amounts
Neighborhood stabilization assistance— From any amounts received by the Treasury as a civil monetary penalty pursuant to the settlement agreement specified in subsection (e), $5,000,000,000 is hereby appropriated, to remain available until expended, for use only for providing assistance under title III of division B of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note) to units of general local government (as such term is defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)), subject to subsections (b), (c), and (d).
Allocation and distribution— The amounts appropriated by subsection (a) shall be—
allocated to units of general local government based on a funding formula established by the Secretary of Housing and Urban Development that is based upon the number and percentage of home foreclosures in each such unit; and
distributed according to such funding formula not later than 30 days after the establishment of such formula.
Inapplicable provisions of NSP— The following provisions of title III of division B of the Housing and Economic Recovery Act of 2008 shall not apply to the assistance provided with amounts appropriated by subsection (a):
Subsection (b) of section 2301 (42 U.S.C. 5301 note; relating to allocation of appropriated amounts).
Subparagraphs (B) and (C) of section 2301(c)(2) (42 U.S.C. 5301 note; relating to priority).
Paragraph (3) of section 2301(c) (42 U.S.C. 5301 note; relating to exception for certain States).
Section 2302 (42 U.S.C. 5301 note; relating to nationwide distribution of resources).
Eligible uses— Notwithstanding subsection (a) and paragraphs (1) and (4) of subsection (c) of section 2301 of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note), amounts appropriated by subsection (a) of this section may be used by units of general local government to assist in providing affordable housing or to mitigate indirect costs relating to foreclosures on residential mortgages.
Settlement agreement— The settlement agreement specified in this subsection is the settlement agreement entered into August 2014 between the United States acting through the United States Department of Justice, along with the States of California, Delaware, Illinois, Maryland, and New York, and the Commonwealth of Kentucky, acting through their respective Attorneys General, and Bank of America Corporation, Bank of America, N.A., and Banc of America Mortgage Securities, as well as their current and former subsidiaries and affiliates.