Title II — S. 2438 (Placed on Calendar Senate)

Sec. 201

Fifty percent of the amounts of budget authority, or in lieu thereof 50 percent of the cash amounts associated with such budget authority, that are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 1437 note) shall be rescinded or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the Secretary of Housing and Urban Development for which settlement occurred after January 1, 1992, in accordance with such section. Notwithstanding the previous sentence, the Secretary may award up to 15 percent of the budget authority or cash recaptured and not rescinded or remitted to the Treasury to provide project owners with incentives to refinance their project at a lower interest rate.

Sec. 202

None of the amounts made available under this Act may be used during fiscal year 2015 to investigate or prosecute under the Fair Housing Act any otherwise lawful activity engaged in by one or more persons, including the filing or maintaining of a nonfrivolous legal action, that is engaged in solely for the purpose of achieving or preventing action by a Government official or entity, or a court of competent jurisdiction.

Sec. 203

Sections 203 and 209 of division C of Public Law 112–55 (125 Stat. 693–694) shall apply during fiscal year 2015 as if such sections were included in this title, except that during such fiscal year such sections shall be applied by substituting “fiscal year 2015” for “fiscal year 2011” and “fiscal year 2012” each place such terms appear.

Sec. 204

Except as otherwise explicitly provided in law, any grant, cooperative agreement or other assistance made pursuant to title II of this Act shall be made on a competitive basis and in accordance with section 102 of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545).

Sec. 205

Funds of the Department of Housing and Urban Development subject to the Government Corporation Control Act or section 402 of the Housing Act of 1950 shall be available, without regard to the limitations on administrative expenses, for legal services on a contract or fee basis, and for utilizing and making payment for services and facilities of the Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Financing Bank, Federal Reserve banks or any member thereof, Federal Home Loan banks, and any insured bank within the meaning of the Federal Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811–1).

Sec. 206

Unless otherwise provided for in this Act or through a reprogramming of funds, no part of any appropriation for the Department of Housing and Urban Development shall be available for any program, project or activity in excess of amounts set forth in the budget estimates submitted to Congress.

Sec. 207

Corporations and agencies of the Department of Housing and Urban Development which are subject to the Government Corporation Control Act are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accordance with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of such Act as may be necessary in carrying out the programs set forth in the budget for 2015 for such corporation or agency except as hereinafter provided: Provided, That collections of these corporations and agencies may be used for new loan or mortgage purchase commitments only to the extent expressly provided for in this Act (unless such loans are in support of other forms of assistance provided for in this or prior appropriations Acts), except that this proviso shall not apply to the mortgage insurance or guaranty operations of these corporations, or where loans or mortgage purchases are necessary to protect the financial interest of the United States Government.

Sec. 208

The Secretary of Housing and Urban Development shall provide quarterly reports to the House and Senate Committees on Appropriations regarding all uncommitted, unobligated, recaptured and excess funds in each program and activity within the jurisdiction of the Department and shall submit additional, updated budget information to these Committees upon request.

Sec. 209

The President’s formal budget request for fiscal year 2016, as well as the Department of Housing and Urban Development’s congressional budget justifications to be submitted to the Committees on Appropriations of the House of Representatives and the Senate, shall use the identical account and sub-account structure provided under this Act.

Sec. 210

A public housing agency or such other entity that administers Federal housing assistance for the Housing Authority of the county of Los Angeles, California, and the States of Alaska, Iowa, and Mississippi shall not be required to include a resident of public housing or a recipient of assistance provided under section 8 of the United States Housing Act of 1937 on the board of directors or a similar governing board of such agency or entity as required under section (2)(b) of such Act. Each public housing agency or other entity that administers Federal housing assistance under section 8 for the Housing Authority of the county of Los Angeles, California and the States of Alaska, Iowa and Mississippi that chooses not to include a resident of public housing or a recipient of section 8 assistance on the board of directors or a similar governing board shall establish an advisory board of not less than six residents of public housing or recipients of section 8 assistance to provide advice and comment to the public housing agency or other administering entity on issues related to public housing and section 8. Such advisory board shall meet not less than quarterly.

Sec. 211

No funds provided under this title may be used for an audit of the Government National Mortgage Association that makes applicable requirements under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

Sec. 212

(a)

Notwithstanding any other provision of law, subject to the conditions listed under this section, for fiscal years 2015 and 2016, the Secretary of Housing and Urban Development may authorize the transfer of some or all project-based assistance, debt held or insured by the Secretary and statutorily required low-income and very low-income use restrictions if any, associated with one or more multifamily housing project or projects to another multifamily housing project or projects.

(b)

Phased Transfers— Transfers of project-based assistance under this section may be done in phases to accommodate the financing and other requirements related to rehabilitating or constructing the project or projects to which the assistance is transferred, to ensure that such project or projects meet the standards under subsection (c).

(c)

The transfer authorized in subsection (a) is subject to the following conditions:

(1)

Number and bedroom size of Units—

(A)

For occupied units in the transferring project: the number of low-income and very low-income units and the configuration (i.e., bedroom size) provided by the transferring project shall be no less than when transferred to the receiving project or projects and the net dollar amount of Federal assistance provided to the transferring project shall remain the same in the receiving project or projects.

(B)

For unoccupied units in the transferring project: the Secretary may authorize a reduction in the number of dwelling units in the receiving project or projects to allow for a reconfiguration of bedroom sizes to meet current market demands, as determined by the Secretary and provided there is no increase in the project-based assistance budget authority.

(2)

The transferring project shall, as determined by the Secretary, be either physically obsolete or economically nonviable.

(3)

The receiving project or projects shall meet or exceed applicable physical standards established by the Secretary.

(4)

The owner or mortgagor of the transferring project shall notify and consult with the tenants residing in the transferring project and provide a certification of approval by all appropriate local governmental officials.

(5)

The tenants of the transferring project who remain eligible for assistance to be provided by the receiving project or projects shall not be required to vacate their units in the transferring project or projects until new units in the receiving project are available for occupancy.

(6)

The Secretary determines that this transfer is in the best interest of the tenants.

(7)

If either the transferring project or the receiving project or projects meets the condition specified in subsection (d)(2)(A), any lien on the receiving project resulting from additional financing obtained by the owner shall be subordinate to any FHA-insured mortgage lien transferred to, or placed on, such project by the Secretary, except that the Secretary may waive this requirement upon determination that such a waiver is necessary to facilitate the financing of acquisition, construction, and/or rehabilitation of the receiving project or projects.

(8)

If the transferring project meets the requirements of subsection (d)(2), the owner or mortgagor of the receiving project or projects shall execute and record either a continuation of the existing use agreement or a new use agreement for the project where, in either case, any use restrictions in such agreement are of no lesser duration than the existing use restrictions.

(9)

The transfer does not increase the cost (as defined in section 502 of the Congressional Budget Act of 1974, as amended) of any FHA-insured mortgage, except to the extent that appropriations are provided in advance for the amount of any such increased cost.

(d)

For purposes of this section—

(1)

the terms “low-income” and “very low-income” shall have the meanings provided by the statute and/or regulations governing the program under which the project is insured or assisted;

(2)

the term “multifamily housing project” means housing that meets one of the following conditions—

(A)

housing that is subject to a mortgage insured under the National Housing Act;

(B)

housing that has project-based assistance attached to the structure including projects undergoing mark to market debt restructuring under the Multifamily Assisted Housing Reform and Affordability Housing Act;

(C)

housing that is assisted under section 202 of the Housing Act of 1959, as amended by section 801 of the Cranston-Gonzales National Affordable Housing Act;

(D)

housing that is assisted under section 202 of the Housing Act of 1959, as such section existed before the enactment of the Cranston-Gonzales National Affordable Housing Act;

(E)

housing that is assisted under section 811 of the Cranston-Gonzales National Affordable Housing Act; or

(F)

housing or vacant land that is subject to a use agreement;

(3)

the term “project-based assistance” means—

(A)

assistance provided under section 8(b) of the United States Housing Act of 1937;

(B)

assistance for housing constructed or substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of such Act (as such section existed immediately before October 1, 1983);

(C)

rent supplement payments under section 101 of the Housing and Urban Development Act of 1965;

(D)

interest reduction payments under section 236 and/or additional assistance payments under section 236(f)(2) of the National Housing Act;

(E)

assistance payments made under section 202(c)(2) of the Housing Act of 1959; and

(F)

assistance payments made under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act;

(4)

the term “receiving project or projects” means the multifamily housing project or projects to which some or all of the project-based assistance, debt, and statutorily required low-income and very low-income use restrictions are to be transferred;

(5)

the term “transferring project” means the multifamily housing project which is transferring some or all of the project-based assistance, debt, and the statutorily required low-income and very low-income use restrictions to the receiving project or projects; and

(6)

the term “Secretary” means the Secretary of Housing and Urban Development.

(e)

Public Notice and Research Report—

(1)

The Secretary shall publish by notice in the Federal Register the terms and conditions, including criteria for HUD approval, of transfers pursuant to this section no later than 30 days before the effective date of such notice.

(2)

The Secretary shall conduct an evaluation of the transfer authority under this section, including the effect of such transfers on the operational efficiency, contract rents, physical and financial conditions, and long-term preservation of the affected properties.

Sec. 213

(a)

No assistance shall be provided under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) to any individual who—

(1)

is enrolled as a student at an institution of higher education (as defined under section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002));

(2)

is under 24 years of age;

(3)

is not a veteran;

(4)

is unmarried;

(5)

does not have a dependent child;

(6)

is not a person with disabilities, as such term is defined in section 3(b)(3)(E) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(E)) and was not receiving assistance under such section 8 as of November 30, 2005; and

(7)

is not otherwise individually eligible, or has parents who, individually or jointly, are not eligible, to receive assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).

(b)

For purposes of determining the eligibility of a person to receive assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), any financial assistance (in excess of amounts received for tuition and any other required fees and charges) that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except for a person over the age of 23 with dependent children.

Sec. 214

The funds made available for Native Alaskans under the heading “Native American Housing Block Grants” in title II of this Act shall be allocated to the same Native Alaskan housing block grant recipients that received funds in fiscal year 2005.

Sec. 215

Notwithstanding the limitation in the first sentence of section 255(g) of the National Housing Act (12 U.S.C. 1715z–20(g)), the Secretary of Housing and Urban Development may, until September 30, 2015, insure and enter into commitments to insure mortgages under such section 255.

Sec. 216

Notwithstanding any other provision of law, in fiscal year 2015, in managing and disposing of any multifamily property that is owned or has a mortgage held by the Secretary of Housing and Urban Development, and during the process of foreclosure on any property with a contract for rental assistance payments under section 8 of the United States Housing Act of 1937 or other Federal programs, the Secretary shall maintain any rental assistance payments under section 8 of the United States Housing Act of 1937 and other programs that are attached to any dwelling units in the property. To the extent the Secretary determines, in consultation with the tenants and the local government, that such a multifamily property owned or held by the Secretary is not feasible for continued rental assistance payments under such section 8 or other programs, based on consideration of (1) the costs of rehabilitating and operating the property and all available Federal, State, and local resources, including rent adjustments under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (“MAHRAA”) and (2) environmental conditions that cannot be remedied in a cost-effective fashion, the Secretary may, in consultation with the tenants of that property, contract for project-based rental assistance payments with an owner or owners of other existing housing properties, or provide other rental assistance. The Secretary shall also take appropriate steps to ensure that project-based contracts remain in effect prior to foreclosure, subject to the exercise of contractual abatement remedies to assist relocation of tenants for imminent major threats to health and safety after written notice to and informed consent of the affected tenants and use of other available remedies, such as partial abatements or receivership. After disposition of any multifamily property described under this section, the contract and allowable rent levels on such properties shall be subject to the requirements under section 524 of MAHRAA.

Sec. 217

Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended—

(1)

in subsection (a) by inserting “States on behalf of non-entitlement communities,” after “issued by eligible public entities,”;

(2)

by striking subsection (k) and inserting the following:

“(k) The Secretary shall monitor the use by eligible public entities and States of commitment amounts authorized in appropriation Acts for any fiscal year. If the Secretary finds that 50 percent of the annual commitment amount has been committed, the Secretary may impose a limitation on the amount of guarantees any one entity may receive in any fiscal year of $35,000,000 for units of general local government receiving grants under section 106(b) or States receiving grants under section 106(d) and $7,000,000 for units of general local government receiving grants under section 106(d); or request the enactment of legislation increasing the annual commitment authority for guarantees under this section.”

(3)

by striking subsection (m) and inserting the following new subsection:

“(m) Distribution of funds to local governments in non-entitlement areas—Any State receiving a guarantee or commitment on behalf of non-entitlement areas shall distribute all funds that are subject to such guarantee to the units of general local government in non-entitlement areas that received the commitment.”

Sec. 218

Public housing agencies that own and operate 400 or fewer public housing units may elect to be exempt from any asset management requirement imposed by the Secretary of Housing and Urban Development in connection with the operating fund rule: Provided, That an agency seeking a discontinuance of a reduction of subsidy under the operating fund formula shall not be exempt from asset management requirements.

Sec. 219

With respect to the use of amounts provided in this Act and in future Acts for the operation, capital improvement and management of public housing as authorized by sections 9(d) and 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(d) and (e)), the Secretary shall not impose any requirement or guideline relating to asset management that restricts or limits in any way the use of capital funds for central office costs pursuant to section 9(g)(1) or 9(g)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437g(g)(1), (2)): Provided, That a public housing agency may not use capital funds authorized under section 9(d) for activities that are eligible under section 9(e) for assistance with amounts from the operating fund in excess of the amounts permitted under section 9(g)(1) or 9(g)(2), unless otherwise specified under this title.

Sec. 220

No official or employee of the Department of Housing and Urban Development shall be designated as an allotment holder unless the Office of the Chief Financial Officer has determined that such allotment holder has implemented an adequate system of funds control and has received training in funds control procedures and directives. The Chief Financial Officer shall ensure that there is a trained allotment holder for each HUD sub-office under the accounts “Executive Offices” and “Administrative Support Offices,” as well as each account receiving appropriations for “Program Office Salaries and Expenses”, “Government National Mortgage Association—Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account”, and “Office of Inspector General” within the Department of Housing and Urban Development.

Sec. 221

The Secretary of Housing and Urban Development shall report annually to the House and Senate Committees on Appropriations on the status of all section 8 project-based housing, including the number of all project-based units by region as well as an analysis of all federally subsidized housing being refinanced under the Mark-to-Market program. The Secretary shall identify all existing units maintained by region as section 8 project-based units, all project-based units that have opted out or have otherwise been eliminated, and the reasons these units opted out or otherwise were lost as section 8 project-based units.

Sec. 222

The Secretary of the Department of Housing and Urban Development shall, for fiscal year 2015 and subsequent fiscal years, notify the public through the Federal Register and other means, as determined appropriate, of the issuance of a notice of the availability of assistance or notice of funding availability (NOFA) for any program or discretionary fund administered by the Secretary that is to be competitively awarded. Notwithstanding any other provision of law, for fiscal year 2015 and subsequent fiscal years, the Secretary may make the NOFA available only on the Internet at the appropriate Government Web site or through other electronic media, as determined by the Secretary.

Sec. 223

Payment of attorney fees in program-related litigation must be paid from the individual program office and Office of General Counsel personnel funding. The annual budget submissions for program offices and Office of General Counsel personnel funding must include program-related litigation costs for attorney fees as a separate line item request.

Sec. 224

The Secretary of the Department of Housing and Urban Development is authorized to transfer up to 5 percent or $5,000,000, whichever is less, of the funds appropriated for any office funded under the heading “Administrative Support Offices” to any other office funded under such heading: Provided, That no appropriation for any office funded under the heading “Administrative Support Offices” shall be increased or decreased by more than 5 percent or $5,000,000, whichever is less, without prior written approval of the House and Senate Committees on Appropriations: Provided further, That the Secretary is authorized to transfer up to 5 percent or $5,000,000, whichever is less, of the funds appropriated for any account funded under the general heading “Program Office Salaries and Expenses” to any other account funded under such heading: Provided further, That no appropriation for any account funded under the general heading “Program Office Salaries and Expenses” shall be increased or decreased by more than 5 percent or $5,000,000, whichever is less, without prior written approval of the House and Senate Committees on Appropriations: Provided further, That the Secretary may transfer funds made available for salaries and expenses between any office funded under the heading “Administrative Support Offices” and any account funded under the general heading “Program Office Salaries and Expenses”, but only with the prior written approval of the House and Senate Committees on Appropriations.

Sec. 225

The Disaster Housing Assistance Programs, administered by the Department of Housing and Urban Development, shall be considered a “program of the Department of Housing and Urban Development” under section 904 of the McKinney Act for the purpose of income verifications and matching.

Sec. 226

(a)

The Secretary of Housing and Urban Development shall take the required actions under subsection (b) when a multifamily housing project with a section 8 contract or contract for similar project-based assistance:

(1)

receives a Real Estate Assessment Center (REAC) score of 30 or less; or

(2)

receives a REAC score between 31 and 59 and:

(A)

fails to certify in writing to HUD within 60 days that all deficiencies have been corrected; or

(B)

receives consecutive scores of less than 60 on REAC inspections.

(b)

The Secretary shall take the following required actions as authorized under subsection (a)—

(1)

The Secretary shall notify the owner and provide an opportunity for response within 30 days. If the violations remain, the Secretary shall develop a Compliance, Disposition and Enforcement Plan within 60 days, with a specified timetable for correcting all deficiencies. The Secretary shall provide notice of the Plan to the owner, tenants, the local government, any mortgagees, and any contract administrator.

(2)

At the end of the term of the Compliance, Disposition and Enforcement Plan, if the owner fails to fully comply with such plan, the Secretary may require immediate replacement of project management with a management agent approved by the Secretary, and shall take one or more of the following actions, and provide additional notice of those actions to the owner and the parties specified above:

(A)

impose civil money penalties;

(B)

abate the section 8 contract, including partial abatement, as determined by the Secretary, until all deficiencies have been corrected;

(C)

pursue transfer of the project to an owner, approved by the Secretary under established procedures, which will be obligated to promptly make all required repairs and to accept renewal of the assistance contract as long as such renewal is offered; or

(D)

seek judicial appointment of a receiver to manage the property and cure all project deficiencies or seek a judicial order of specific performance requiring the owner to cure all project deficiencies.

(c)

The Secretary shall also take appropriate steps to ensure that project-based contracts remain in effect, subject to the exercise of contractual abatement remedies to assist relocation of tenants for imminent major threats to health and safety after written notice to and informed consent of the affected tenants and use of other remedies set forth above. To the extent the Secretary determines, in consultation with the tenants and the local government, that the property is not feasible for continued rental assistance payments under such section 8 or other programs, based on consideration of (1) the costs of rehabilitating and operating the property and all available Federal, State, and local resources, including rent adjustments under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (“MAHRAA”) and (2) environmental conditions that cannot be remedied in a cost-effective fashion, the Secretary may, in consultation with the tenants of that property, contract for project-based rental assistance payments with an owner or owners of other existing housing properties, or provide other rental assistance. The Secretary shall report semi-annually on all properties covered by this section that are assessed through the Real Estate Assessment Center and have physical inspection scores of less than 30 or have consecutive physical inspection scores of less than 60. The report shall include:

(1)

The enforcement actions being taken to address such conditions, including imposition of civil money penalties and termination of subsidies, and identify properties that have such conditions multiple times; and

(2)

Actions that the Department of Housing and Urban Development is taking to protect tenants of such identified properties.

Sec. 227

None of the funds made available by this Act, or any other Act, for purposes authorized under section 8 (only with respect to the tenant-based rental assistance program) and section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), may be used by any public housing agency for any amount of salary, including bonuses, for the chief executive officer of which, or any other official or employee of which, that exceeds the annual rate of basic pay payable for a position at level IV of the Executive Schedule at any time during any public housing agency fiscal year 2015.

Sec. 228

Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) is amended—

(1)

in subsection (m)(1), by striking “fiscal year” and all that follows through the period at the end and inserting “fiscal year 2015.”; and

(2)

in subsection (o), by striking “September” and all that follows through the period at the end and inserting “September 30, 2015.”.

Sec. 229

Of the amounts made available for salaries and expenses under all accounts under this title (except for the Office of Inspector General account), a total of up to $10,000,000 may be transferred to and merged with amounts made available in the “Information Technology Fund” account under this title.

Sec. 230

None of the funds in this Act may be available for the doctoral dissertation research grant program at the Department of Housing and Urban Development.

Sec. 231

The language under the heading Rental Assistance Demonstration in the Department of Housing and Urban Development Appropriations Act, 2012 (Public Law 112–55), is amended—

(1)

by striking “(except for funds allocated under such section for single room occupancy dwellings as authorized by title IV of the McKinney-Vento Homeless Assistance Act)” in both places it appears;

(2)

in the second proviso, by striking “2015” and inserting “2018”;

(3)

in the third proviso, after “associated with such conversion”, by inserting “in excess of amounts made available under this heading”;

(4)

in the fourth proviso, by striking “60,000” and inserting “185,000”;

(5)

in the penultimate proviso, by—

(A)

striking “December 31, 2014” and inserting “2016”;

(B)

striking “and agreement of the administering public housing agency”; and

(C)

inserting “a long-term project-based subsidy contract under section 8 of the Act, which shall have a term of no less than 20 years, with rent adjustments only by an operating cost factor established by the Secretary, which shall be eligible for renewal under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), or, subject to agreement of the administering public housing agency, to assistance under” following “vouchers to assistance under”;

(6)

by inserting the following provisos before the final proviso: “Provided further, That amounts made available under the heading “Rental Housing Assistance” during the period of conversion under the previous proviso, which may extend beyond fiscal year 2016 as necessary to allow processing of all timely applications, shall be available for project-based subsidy contracts entered into pursuant to the previous proviso: Provided further, That amounts, including contract authority, recaptured from contracts following a conversion under the previous two provisos are hereby rescinded and an amount of additional new budget authority, equivalent to the amount rescinded is hereby appropriated, to remain available until expended for such conversions: Provided further, That the Secretary may transfer amounts made available under the heading “Rental Housing Assistance”, amounts made available for tenant protection vouchers under the heading “Tenant-Based Rental Assistance” and specifically associated with any such conversions, and amounts made available under the previous proviso as needed to the account under the “Project-Based Rental Assistance” heading to facilitate conversion under the three previous provisos and any increase in cost for “Project-Based Rental Assistance” associated with such conversion shall be equal to amounts so transferred:”; and

(7)

in the final proviso, by—

(A)

striking “with respect to the previous proviso” and inserting “with respect to the previous four provisos”; and

(B)

striking “impact of the previous proviso” and inserting “impact of the fiscal year 2012 and 2013 conversion of tenant protection vouchers to assistance under section 8(o)(13) of the Act”.

Sec. 232

None of the funds in this Act provided to the Department of Housing and Urban Development may be used to make a grant award unless the Secretary notifies the House and Senate Committees on Appropriations not less than 3 full business days before any project, State, locality, housing authority, tribe, nonprofit organization, or other entity selected to receive a grant award is announced by the Department or its offices.

Sec. 233

Section 579 of the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) of 1997 (42 U.S.C. 1437f note) is amended by striking “October 1, 2015” each place it appears and inserting in lieu thereof “October 1, 2018”.

Sec. 234

Section 9 of the United States Housing Act or 1937 (42 U.S.C. 1437g) is amended by—

(a)

Inserting at the end of subjection (j)—

“(7) Treatment of Replacement Reserve—The requirements of this subsection shall not apply to funds held in replacement reserves established in subsection (9)(n).”

(b)

Inserting at the end of subsection (m)—

“(n) Establishment of replacement reserves

“(1) In general—Public Housing authorities shall be permitted to establish a Replacement Reserve to fund any of the capital activities listed in subparagraph (d)(1).

“(2) Source and amount of funds for replacement reserve—At any time, a public housing authority may deposit funds from that agency’s Capital Fund into a Replacement Reserve subject to the following:

“(A) At the discretion of the Secretary, PHAs may be allowed to transfer and hold in a Replacement Reserve, funds originating from additional sources.

“(B) No minimum transfer of funds to a Replacement Reserve shall be required.

“(C) At any time, a public housing authority may not hold in a Replacement Reserve more than the amount the public housing authority has determined necessary to satisfy the anticipated capital needs of properties in its portfolio assisted under 42 U.S.C. 1437g as outlined in its Capital Fund 5 Year Action Plan, or a comparable plan, as determined by the Secretary.

“(D) The Secretary may establish by regulation a maximum replacement reserve level or levels that are below amounts determined under subparagraph (C), which may be based upon the size of the portfolio assisted under 42 U.S.C. 1437g or other factors.

“(3) In first establishing a replacement reserve, the Secretary may allow public housing agencies to transfer more than 20 percent of its operating funds into its replacement reserve.

“(4) Expenditure—Funds in a Replacement Reserve may be used for purposes authorized by subparagraph (d)(1) and contained in its Capital Fund 5 Year Action Plan.

“(5) Management and report—The Secretary shall establish appropriate accounting and reporting requirements to ensure that public housing agencies are spending funding on eligible projects and that funding in the reserve is connected to capital needs.”

Sec. 235

Section 9(g)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437g(g)) is amended by—

(1)

inserting “(A)” immediately after the paragraph designation;

(2)

by striking the period and inserting the following at the end: “; and”; and

(3)

insert the following new paragraph:

“(B) Flexibility for operating fund amounts—Of any amounts appropriated for fiscal year 2015 or any fiscal year thereafter that are allocated for fiscal year 2015 or any fiscal year thereafter from the Operating Fund for any public housing agency, the agency may use not more than 20 percent for activities that are eligible under subsection (d) for assistance with amounts from the Capital Fund, but only if the public housing plan for the agency provides for such use.”

Sec. 236

(a)

Subsection (b) of section 225 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12755) is amended by adding at the end the following new sentence: “Such 30-day waiting period is not required if the grounds for the termination or refusal to renew involve a direct threat to the safety of the tenants or employees of the housing, or an imminent and serious threat to the property (and the termination or refusal to renew is in accordance with the requirements of State or local law).”.

(b)

Section 104(6) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended by adding at the end of the undesignated matter after subparagraph (D) the following sentence: “In the case of an organization funded by the State under title II of this Act, the organization may serve all counties within the State.”.

Sec. 237

(a)

Establishment— The Secretary of Housing and Urban Development (referred to in this section as the “Secretary”) shall establish a demonstration program under which, during the period beginning on the date of enactment of this Act, and ending on September 30, 2017, the Secretary may enter into budget-neutral, performance-based agreements that result in a reduction in energy or water costs with such entities as the Secretary determines to be appropriate under which the entities shall carry out projects for energy or water conservation improvements at not more than 20,000 residential units in multifamily buildings participating in—

(1)

the project-based rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), other than assistance provided under section 8(o) of that Act;

(2)

the supportive housing for the elderly program under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or

(3)

the supportive housing for persons with disabilities program under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)).

(b)

Requirements—

(1)

Payments contingent on savings—

(A)

In general— The Secretary shall provide to an entity a payment under an agreement under this section only during applicable years for which an energy or water cost savings is achieved with respect to the applicable multifamily portfolio of properties, as determined by the Secretary, in accordance with subparagraph (B).

(B)

Payment methodology—

(i)

In general— Each agreement under this section shall include a pay-for-success provision—

(I)

that will serve as a payment threshold for the term of the agreement; and

(II)

pursuant to which the Department of Housing and Urban Development shall share a percentage of the savings at a level determined by the Secretary that is sufficient to cover the administrative costs of carrying out this section.

(ii)

Limitations— A payment made by the Secretary under an agreement under this section shall—

(I)

be contingent on documented utility savings; and

(II)

not exceed the utility savings achieved by the date of the payment, and not previously paid, as a result of the improvements made under the agreement.

(C)

Third party verification— Savings payments made by the Secretary under this section shall be based on a measurement and verification protocol that includes at least—

(i)

establishment of a weather-normalized and occupancy-normalized utility consumption baseline established preretrofit;

(ii)

annual third party confirmation of actual utility consumption and cost for owner-paid utilities;

(iii)

annual third party validation of the tenant utility allowances in effect during the applicable year and vacancy rates for each unit type; and

(iv)

annual third party determination of savings to the Secretary.

(2)

Term— The term of an agreement under this section shall be not longer than 12 years.

(3)

Entity eligibility— The Secretary shall—

(A)

establish a competitive process for entering into agreements under this section; and

(B)

enter into such agreements only with entities that demonstrate significant experience relating to—

(i)

financing and operating properties receiving assistance under a program described in subsection (a);

(ii)

oversight of energy and water conservation programs, including oversight of contractors; and

(iii)

raising capital for energy and water conservation improvements from charitable organizations or private investors.

(4)

Geographical diversity— Each agreement entered into under this section shall provide for the inclusion of properties with the greatest feasible regional and State variance.

(c)

Plan and Reports—

(1)

Plan— Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committees on Appropriations of the House of Representatives and the Senate a detailed plan for the implementation of this section.

(2)

Reports— Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary shall—

(A)

conduct an evaluation of the program under this section; and

(B)

submit to Congress a report describing each evaluation conducted under subparagraph (A).

(d)

Funding— For each fiscal year during which an agreement under this section is in effect, the Secretary may use to carry out this section any funds appropriated to the Secretary for the renewal of contracts under a program described in subsection (a).

Sec. 238

Section 11 of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended—

(1)

in subsection (b)(1) after “new dwellings” insert “or the rehabilitation of existing dwellings”;

(2)

in subsection (b)(2) after “new” insert “or rehabilitated”;

(3)

in subsection (d)(1) after “dwellings” insert “or rehabilitating existing dwellings to make them decent, safe and sanitary”;

(4)

in subsection (d)(2) by inserting at the end the following new subparagraph:

“(C) Planning, administration, and management—Planning, administration, and management of grant programs and activities, provided that such expenses do not exceed 20 percent of any grant made under this section.”

(5)

in subsection (i)(5) by—

(A)

striking “24” and inserting “36”; and

(B)

striking “except that” and all that follows through “such grant amounts”;

(6)

in subsection (j) by—

(A)

inserting after the heading “(1) Redistribution of funds.—”;

(B)

striking “24” and inserting “36”;

(C)

striking “(or, in the case” and all that follows through “within 36 months)”; and

(D)

inserting at the end the following new paragraph:

“(2) Deadline for completion and conveyance—The Secretary shall establish a deadline (which may be extended for good cause as determined by the Secretary) by which time all units that have been assisted with grant funds under this section must be completed and conveyed.”

(7)

by striking subsection (q).

Sec. 239

Section 184(h)(1)(B) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a(h)(1)(B)) is amended by inserting after the first sentence the following: “Exhausting all reasonable possibilities of collection by the holder of the guarantee shall include a good faith consideration of loan modification as well as meeting standards for servicing loans in default, as determined by the Secretary.”.

Sec. 240

Section 202 of the National Housing Act (12 U.S.C. 1708) is amended by adding at the end the following new subsection:

“(i) Administration—Notwithstanding any provision of law, and in addition to any other fees charged in connection with the provision of insurance under this title, in each fiscal year the Secretary may charge and collect a fee not to exceed 4 basis points of the original principal balance of mortgages originated by the mortgagee that were insured under this title during the previous fiscal year. Such fee collected from each mortgagee shall be used as offsetting collections for part of the administrative contract expenses funding and any necessary salaries and expenses funding provided under the Mutual Mortgage Insurance Program Account under this title. The Secretary may establish the amount of such fee through regulations, notice, Mortgagee Letter, or other administrative issuance.”

Sec. 241

Paragraph (1) of section 8(c) of the United States Housing Act of 1937 (42 U.S.C. 1437) is amended—

(1)

by inserting “(A)” after the paragraph designation;

(2)

by striking the fourth, seventh, eighth, and ninth sentences; and

(3)

by adding at the end the following:

“(B) Publication of fair market rentals—Not less than annually:

“(i) The Secretary shall publish a notice in the Federal Register that proposed fair market rentals for an area have been published on the site of the Department on the Internet and in any other manner specified by the Secretary. Such notice shall describe proposed material changes in the methodology for estimating fair market rentals and shall provide reasonable time for public comment.

“(ii) The Secretary shall publish a notice in the Federal Register that final fair market rentals have been published on the site of the Department on the internet and in any other manner specified by the Secretary. Such notice shall include the final decisions regarding proposed substantial methodological changes for estimating fair market rentals and responses to public comments.”

Sec. 242

Of the unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under the heading “Brownfields Redevelopment”, $2,913,000 is hereby permanently rescinded: Provided, That of the unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under the heading “Rural Housing and Economic Development”, $2,300,000 is hereby permanently rescinded: Provided further, That all unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under the heading “Drug Elimination Grants for Low Income Housing” are hereby permanently rescinded: Provided further, That all unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development for Youthbuild program activities authorized by subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act are hereby permanently rescinded.

Sec. 243

Such sums as may be necessary to implement the Homeowners Armed With Knowledge pilot shall be absorbed within the levels appropriated in this act.

Sec. 244

Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended by adding at the end the following new subsection:

“(j) Financial assistance—For purposes of this section, the Secretary may enter into multiyear agreements as is appropriate, subject to the availability of annual appropriations.”

Sec. 245

Section 526 (12 U.S.C. 1735f–4) of the National Housing Act is amended by inserting at the end of subsection (b)—

“(c) The Secretary may establish an exception to any minimum property standard established under this section in order to address alternative water systems, including cisterns, which meet requirements of State and local building codes that ensure health and safety standards.”

Sec. 246

Notwithstanding section 106(c)(4) of the Housing and Community Development Act of 1974, the Secretary additionally shall provide assistance pursuant to such section to any State for use by any nonentitlement area of any such State in which there was a major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in 2014: Provided, That the Secretary shall issue a notice with respect to any such assistance for States within 45 days of enactment of this Act.

Title II — Department of housing and urban development

II Department of housing and urban development