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Title II — Department of Housing and Urban Development

S. 3045 · 117th Congress · Oct 21, 2021 · Lineage

II Department of Housing and Urban Development

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section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 1437f note) shall be rescinded or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the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the previous sentence, the Secretary may award up to 15 percent of the budget authority or cash recaptured and not rescinded or remitted to the Treasury to provide project owners with incentives to refinance their project at a lower interest rate.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 funds made available by this Act may be used during fiscal year 2022 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

Except as 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. 204

Section 7 of the Department of Housing and Urban Development Act (42 U.S.C. 3535) is amended by adding at the end the following new subsection:

“(u)

“(1) 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).

“(2) 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 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 an appropriations Act (unless such loans are in support of other forms of assistance provided for in 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. 205

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. 206

The Secretary 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. 207

None of the funds made available by 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. 208

Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by adding the following new subsection:

“(l) Authority to transfer project-Based assistance and debt

“(1) In general—Notwithstanding any other provision of law, subject to the conditions listed under this section, the Secretary 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.

“(2) 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 paragraph (3).

“(3) Conditions—The transfer authorized in paragraph (1) is subject to the following conditions:

“(A) Number and bedroom size of units

“(i) 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.

“(ii) 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.

“(B) The transferring project shall, as determined by the Secretary, be either physically obsolete or economically nonviable, or be reasonably expected to become economically nonviable when complying with state or Federal requirements for community integration and reduced concentration of individuals with disabilities.

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

“(D) 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.

“(E) 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.

“(F) The Secretary determines that this transfer is in the best interest of the tenants.

“(G) If either the transferring project or the receiving project or projects meets the condition specified in paragraph (4)(B)(i), any lien on the receiving project resulting from additional financing obtained by the owner shall be subordinate to any lien insured by the Federal Housing Administration 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.

“(H) If the transferring project meets the requirements of paragraph (4)(A), 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; and

“(I) The transfer does not increase the cost (as defined in section 502 of the Congressional Budget Act of 1974(2 U.S.C. 661a)) of any FHA-insured mortgage, except to the extent that appropriations are provided in advance for the amount of any such increased cost.

“(4) For purposes of this section—

“(A) the terms “low-income” and “very low-income” shall have the meanings provided in section 3 of this Act;

“(B) the term multifamily housing project means housing that meets one of the following conditions—

“(i) housing that is subject to a mortgage insured under the National Housing Act;

“(ii) 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;

“(iii) housing that is assisted under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);

“(iv) housing that is assisted under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as such section existed before the enactment of the Cranston-Gonzales National Affordable Housing Act;

“(v) housing that is assisted under section 811 of the Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 8013); or

“(vi) housing or vacant land that is subject to a use agreement;

“(C) the term project-based assistance means—

“(i) assistance provided under subsection (b) of this section;

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

“(iii) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s);

“(iv) interest reduction payments under section 236 and/or additional assistance payments under section 236(f)(2) of the National Housing Act (12 U.S.C. 1715z–1);

“(v) assistance payments made under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)); and

“(vi) assistance payments made under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2));

“(D) 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; and

“(E) 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.

“(5) Implementation—The Secretary shall implement this subsection by publishing notice in the Federal Register.”

Sec. 209

Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is amended by adding the following new subsection:

“(g) Restrictions on assistance and eligibility

“(1) No assistance shall be provided under section 8 of this Act to any individual who—

“(A) 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));

“(B) is under 24 years of age;

“(C) is not a veteran;

“(D) is unmarried;

“(E) does not have a dependent child;

“(F) is not a person with disabilities, as such term is defined in subsection (b)(3)(E) of this section and was not receiving assistance under such section 8 as of November 30, 2005;

“(G) is not a youth who left foster care at age 14 or older and is at risk of becoming homeless; and

“(H) is not otherwise individually eligible, or has parents who, individually or jointly, are not eligible, to receive assistance under section 8 of this Act.

“(2) For purposes of determining the income of a person under section 8 of this Act, 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 from an institution of higher education (as defined under section 102 of 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. 210

The funds made available for Native Alaskans under paragraph (1) under the heading “Native American Programs” 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, and only such recipients shall be eligible to apply for funds made available under paragraph (2) of such heading.

Sec. 211

Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by adding the following subsection:

“(m) Maintaining rental assistance programs during the disposition of multifamily property

“(1) Authority—Notwithstanding any other provision of law, in managing and disposing of any multifamily property that is owned or has a mortgage held by the Secretary, and during the process of foreclosure on any property with a contract for rental assistance payments under this section or other programs administered by the Secretary, the Secretary shall maintain any rental assistance payments under this section and other programs that are attached to any dwelling units in the property.

“(2) Cost considerations—To the extent the Secretary determines, in consultation with the tenants and the local government that such a multifamily property owned or having a mortgage held by the Secretary is not feasible for continued rental assistance payments under such section 8 or other programs, based on consideration of—

“(A) the costs of rehabilitating and operating the property and all available Federal, State, and local resources, including rent adjustments, if applicable, under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (“MAHRAA”) (42 U.S.C. 1437f note); and

“(B) 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.

“(3) Continuation of contract—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.

“(4) Post-disposition—After disposition of any multifamily property described under this subsection, the contract and allowable rent levels on such properties shall be subject to the requirements of MAHRAA.”

Sec. 212

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 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. 213

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),(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 paragraph (1) or (2) of section 9(g) 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 paragraph (1) or (2) of section 9(g).

Sec. 214

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 appropriation under the accounts “Executive Offices”, “Administrative Support Offices”, “Program Offices”, “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. 215

The Secretary shall, for fiscal year 2022, 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 opportunity (NOFO) 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 2022, the Secretary may make the NOFO available only on the Internet at the appropriate Government website or through other electronic media, as determined by the Secretary.

Sec. 216

Payment of attorney fees in program-related litigation shall be paid from the individual program office and Office of General Counsel salaries and expenses appropriations.

Sec. 217

The Secretary is authorized to transfer up to 10 percent or $5,000,000, whichever is less, of funds appropriated for any office under the headings “Administrative Support Offices” or “Program Offices” to any other such office under such headings: Provided, That no appropriation for any such office under such headings shall be increased or decreased by more than 10 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 shall provide notification to such Committees 3 business days in advance of any such transfers under this section up to 10 percent or $5,000,000, whichever is less.

Sec. 218

(a)
Any entity receiving housing assistance payments shall maintain decent, safe, and sanitary conditions, as determined by the Secretary, and comply with any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of any property covered under a housing assistance payment contract.
(b)
The Secretary shall take action under subsection (c) when a multifamily housing project with a contract under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) or a contract for similar project-based assistance—
(1)
receives a Uniform Physical Condition Standards (UPCS) score of 60 or less; or
(2)
fails to certify in writing to the Secretary within 3 days that all Exigent Health and Safety deficiencies identified by the inspector at the project have been corrected.
(c)
(1)
Within 15 days of the issuance of the Real Estate Assessment Center (“REAC”) inspection, the Secretary shall provide the owner with a Notice of Default with a specified timetable, determined by the Secretary, for correcting all deficiencies. The Secretary shall provide a copy of the Notice of Default to the tenants, the local government, any mortgagees, and any contract administrator. If the owner's appeal results in a UPCS score of 60 or above, the Secretary may withdraw the Notice of Default.
(2)
At the end of the time period for correcting all deficiencies specified in the Notice of Default, if the owner fails to fully correct such deficiencies, the Secretary may—
(A)
require immediate replacement of project management with a management agent approved by the Secretary;
(B)
impose civil money penalties, which shall be used solely for the purpose of supporting safe and sanitary conditions at applicable properties, as designated by the Secretary, with priority given to the tenants of the property affected by the penalty;
(C)
abate the section 8 contract, including partial abatement, as determined by the Secretary, until all deficiencies have been corrected;
(D)
pursue transfer of the project to an owner, approved by the Secretary under established procedures, who will be obligated to promptly make all required repairs and to accept renewal of the assistance contract if such renewal is offered;
(E)
transfer the existing section 8 contract to another project or projects and owner or owners;
(F)
pursue exclusionary sanctions, including suspensions or debarments from Federal programs;
(G)
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;
(H)
work with the owner, lender, or other related party to stabilize the property in an attempt to preserve the property through compliance, transfer of ownership, or an infusion of capital provided by a third-party that requires time to effectuate; or
(I)
take any other regulatory or contractual remedies available as deemed necessary and appropriate by the Secretary.
(d)
The Secretary shall 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 major threats to health and safety after written notice to the affected tenants. 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 contract for project-based rental assistance payments with an owner or owners of other existing housing properties, or provide other rental assistance.
(e)
The Secretary shall report semi-annually on all properties covered by this section that are assessed through the Real Estate Assessment Center and have UPCS physical inspection scores of less than 60 or have received an unsatisfactory management and occupancy review within the past 36 months. The report shall include—
(1)
identification of the enforcement actions being taken to address such conditions, including imposition of civil money penalties and termination of subsidies, and identification of properties that have such conditions multiple times;
(2)
identification of actions that the Department of Housing and Urban Development is taking to protect tenants of such identified properties; and
(3)
any administrative or legislative recommendations to further improve the living conditions at properties covered under a housing assistance payment contract.

Sec. 219

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 2022.

Sec. 220

None of the funds made available by this Act and 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. 221

None of the funds made available by this Act may be used to require or enforce the Physical Needs Assessment (PNA).

Sec. 222

None of the funds made available in this Act shall be used by the Federal Housing Administration, the Government National Mortgage Association, or the Department of Housing and Urban Development to insure, securitize, or establish a Federal guarantee of any mortgage or mortgage backed security that refinances or otherwise replaces a mortgage that has been subject to eminent domain condemnation or seizure, by a State, municipality, or any other political subdivision of a State.

Sec. 223

None of the funds made available by this Act may be used to terminate the status of a unit of general local government as a metropolitan city (as defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) with respect to grants under section 106 of such Act (42 U.S.C. 5306).

Sec. 224

Amounts made available by this Act that are appropriated, allocated, advanced on a reimbursable basis, or transferred to the Office of Policy Development and Research of the Department of Housing and Urban Development and functions thereof, for research, evaluation, or statistical purposes, and that are unexpended at the time of completion of a contract, grant, or cooperative agreement, may be deobligated and shall immediately become available and may be reobligated in that fiscal year or the subsequent fiscal year for the research, evaluation, or statistical purposes for which the amounts are made available to that Office subject to reprogramming requirements in section 234 of this Act.

Sec. 225

None of the funds provided in this Act or any other Act may be used for awards, including performance, special act, or spot, for any employee of the Department of Housing and Urban Development subject to administrative discipline (including suspension from work), in this fiscal year, but this prohibition shall not be effective prior to the effective date of any such administrative discipline or after any final decision over-turning such discipline.

Sec. 226

With respect to grant amounts awarded under the heading “Homeless Assistance Grants” for fiscal years 2015 through 2022 for the Continuum of Care (CoC) program as authorized under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act, costs paid by program income of grant recipients may count toward meeting the recipient’s matching requirements, provided the costs are eligible CoC costs that supplement the recipient's CoC program.

Sec. 227

(a)
From amounts made available under this title under the heading “Homeless Assistance Grants”, the Secretary may award 1–year transition grants to recipients of funds for activities under subtitle C of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) to transition from one Continuum of Care program component to another.
(b)
In order to be eligible to receive a transition grant, the funding recipient must have the consent of the continuum of care and meet standards determined by the Secretary.

Sec. 228

None of the funds made available by this Act may be used by the Department of Housing and Urban Development to direct a grantee to undertake specific changes to existing zoning laws as part of carrying out the final rule entitled “Affirmatively Furthering Fair Housing” (80 Fed. Reg. 42272 (July 16, 2015)) or the notice entitled “Affirmatively Furthering Fair Housing Assessment Tool” (79 Fed. Reg. 57949 (September 26, 2014)).

Sec. 229

The Promise Zone designations and Promise Zone Designation Agreements entered into pursuant to such designations, made by the Secretary in prior fiscal years, shall remain in effect in accordance with the terms and conditions of such agreements.

Sec. 230

None of the amounts made available in this Act may be used to consider Family Self-Sufficiency performance measures or performance scores in determining funding awards for programs receiving Family Self-Sufficiency program coordinator funding provided in this Act.

Sec. 231

Any public housing agency designated as a Moving to Work agency pursuant to section 239 of division L of Public Law 114–113 (42 U.S.C. 1437f note; 129 Stat. 2897) may, upon such designation, use funds (except for special purpose funding, including special purpose vouchers) previously allocated to any such public housing agency under section 8 or 9 of the United States Housing Act of 1937, including any reserve funds held by the public housing agency or funds held by the Department of Housing and Urban Development, pursuant to the authority for use of section 8 or 9 funding provided under such section and section 204 of title II of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 (Public Law 104–134; 110 Stat. 1321–28), notwithstanding the purposes for which such funds were appropriated.

Sec. 232

None of the amounts made available by this Act may be used to prohibit any public housing agency under receivership or the direction of a Federal monitor from applying for, receiving, or using funds made available under the heading “Public Housing Fund” for competitive grants to evaluate and reduce lead-based paint hazards in this Act or that remain available and not awarded from prior Acts, or be used to prohibit a public housing agency from using such funds to carry out any required work pursuant to a settlement agreement, consent decree, voluntary agreement, or similar document for a violation of the Lead Safe Housing or Lead Disclosure Rules.

Sec. 233

None of the funds made available by this title may be used to issue rules or guidance in contravention of section 1210 of Public Law 115–254 (132 Stat. 3442) or section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155).

Sec. 234

Except as otherwise provided in this Act, none of the funds provided in this title, provided by previous appropriations Acts to the Department of Housing and Urban Development that remain available for obligation or expenditure in fiscal year 2022, or provided from any accounts in the Treasury derived by the collection of fees and available to the Department of Housing and Urban Development, shall be available for obligation or expenditure through a reprogramming of funds that—
(1)
For Program and Information Technology funds—
(A)
initiates or creates a new program, project, or activity;
(B)
eliminates a program, project, or activity;
(C)
increases funds for any program, project, or activity for which funds have been denied or restricted by the Congress;
(D)
proposes to use funds directed for a specific activity by either the House or Senate Committees on Appropriations for a different purpose;
(E)
augments existing programs, projects, or activities in excess of $5,000,000 or 10 percent, whichever is less; or
(F)
reduces existing programs, projects, or activities by $5,000,000 or 10 percent whichever is less;
(2)
For Salaries and Expenses funds—
(A)
assigns personnel or hires to support the creation of a new program, project, or activity not previously included in the President's budget;
(B)
increases the personnel or other resources for any program, project, or activity for which funds have been denied or restricted by the Congress;
(C)
relocates or closes an office; or
(D)
creates, reorganizes or restructures an office, division, branch, board or administration, which shall include the transfer of any function from one organizational unit to another organizational unit; unless prior written notification is provided to, and approval is received from the House and Senate Committees on Appropriations.

Sec. 235

Not later than 60 days after the date of enactment of this Act, the Department of Housing and Urban Development shall submit a report to the Committees on Appropriations of the Senate and of the House of Representatives to establish the baseline for application of reprogramming and transfer authorities for the current fiscal year: Provided, That the report shall include—
(1)
a table for each appropriation with a separate column to display the prior year enacted level, the President's budget request, adjustments made by Congress, adjustments due to enacted rescissions, if appropriate, and the fiscal year enacted level;
(2)
for program and information technology funds, a delineation in the table for each appropriation and its respective prior year enacted level by program, project, and activity as detailed in this Act, the explanatory statement accompanying this Act, accompanying reports of the House and Senate Committees on Appropriations, or the budget appendix for the respective appropriation, whichever is more detailed, and shall apply to all items for which a dollar amount is specified and to all programs for which new budget authority is provided;
(3)
for salaries and expenses funds, an organizational chart for each office that includes detail to the branch level, and clearly identifies those “organizational units” to which paragraph (2) shall be applied; and
(4)
an identification of items of special congressional interest.

Sec. 236

The language under the heading “Rental Assistance Demonstration” in the Department of Housing and Urban Development Appropriations Act, 2012 (Public Law 112–55), as most recently amended by Public Law 115–141, is further amended—
(1)
in the initial undesignated matter, by striking “and “Public Housing Operating Fund”” and inserting “, “Public Housing Operating Fund”, and “Public Housing Fund””;
(2)
in the second proviso, by striking “2024” and inserting “2028”;
(3)
in the fourth proviso by striking “455,000” and inserting “500,000”;
(4)
after the fourth proviso, by inserting the following new provisos: “ Provided further, That at properties with assistance under section 9 of the Act requesting to partially convert such assistance, and where an event under section 18 of the Act occurs that results in the eligibility for tenant protection vouchers under section 8(o) of the Act, the Secretary may convert the tenant protection voucher assistance to assistance under a project-based subsidy contract under section 8 of the Act, which shall be eligible for renewal under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, or assistance under section 8(o)(13) of the Act, so long as the property meets any additional requirements established by the Secretary to facilitate conversion: Provided further, That to facilitate the conversion of assistance under the preceding proviso, the Secretary may transfer an amount equal to the total amount that would have been allocated for tenant protection voucher assistance for properties that have requested such conversions from amounts made available for tenant protection voucher assistance under the heading “Tenant-Based Rental Assistance” to the heading “Project-Based Rental Assistance”:”;
(5)
in the twelfth proviso, as reordered above, by
(A)
inserting ““Public Housing Fund”, “Self-Sufficiency Programs”, “Family Self-Sufficiency”” following ““Public Housing Operating Fund”,”; and
(B)
inserting “or the ongoing availability of services for residents” after “effective conversion of assistance under the demonstration”;
(6)
after the nineteenth proviso, as reordered above, by inserting the following new proviso: “ Provided further, That conversions of assistance under the following provisos herein shall be considered as the “Second Component” and shall be authorized for fiscal year 2012 and thereafter:”;
(7)
by striking the twenty-first proviso, as reordered above, and inserting the following four provisos: “ Provided further, That owners of properties assisted under section 101 of the Housing and Urban Development Act of 1965, section 236(f)(2) of the National Housing Act, or section 8(e)(2) of the United States Housing Act of 1937, for which an event after October 1, 2006 has caused or results in the termination of rental assistance or affordability restrictions and the issuance of tenant protection vouchers under section 8(o) of the Act shall be eligible, subject to requirements established by the Secretary, for conversion of assistance available for such vouchers or assistance contracts to assistance under a long term project-based subsidy contract under section 8 of the Act: Provided further, That owners of properties with a project rental assistance contract under section 202(c)(2) of the Housing Act of 1959 shall be eligible, subject to requirements established by the Secretary, including but not limited to the subordination, restructuring, or both, of any capital advance documentation, including any note, mortgage, use agreement or other agreements, evidencing or securing a capital advance previously provided by the Secretary under section 202(c)(1) of the Housing Act of 1959 as necessary to facilitate the conversion of assistance while maintaining the affordability period and the designation of the property as serving elderly persons, and tenant consultation procedures, for conversion of assistance available for such assistance contracts to assistance under a long term project-based subsidy contract under section 8 of the Act: Provided further, That owners of properties with a project rental assistance contract under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act, shall be eligible, subject to requirements established by the Secretary, including but not limited to the subordination, restructuring, or both, of any capital advance documentation, including any note, mortgage, use agreement or other agreements, evidencing or securing a capital advance previously provided by the Secretary under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act as necessary to facilitate the conversion of assistance while maintaining the affordability period and the designation of the property as serving persons with disabilities, and tenant consultation procedures, for conversion of assistance contracts to assistance under a long term project-based subsidy contract under section 8 of the Act: Provided further, That long term project-based subsidy contracts under section 8 of the Act which are established under this Second Component 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 section 8(o)(13) of the Act, to which the limitation under subsection (B) of section 8(o)(13) of the Act shall not apply and for which the Secretary may waive or alter the provisions of subparagraphs (C) and (D) of section 8(o)(13) of the Act:”;
(8)
after the twenty-fifth proviso, as reordered above, by inserting the following new proviso: “ Provided further, That the Secretary may waive or alter the requirements of section 8(c)(1)(A) of the Act for contracts provided to properties converting assistance from section 202(c)(2) of the Housing Act of 1959 or section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act as necessary to ensure the ongoing provision and coordination of services or to avoid a reduction in project subsidy:”; and
(9)
in the thirty-first proviso, as reordered above, by—
(A)
striking “heading “Housing for the Elderly”” and inserting “headings “Housing for the Elderly” and “Housing for Persons with Disabilities””; and
(B)
inserting “or section 811 project rental assistance contract” after “section 202 project rental assistance contract”.

Sec. 237

In this fiscal year, if the Secretary determines or has determined that, in any prior formula allocation administered by the Secretary under any account under the headings “Public and Indian Housing”, “Community Planning and Development” and “Housing Programs” under this title, a recipient received an allocation larger than the amount such recipient should have received for a formula allocation cycle pursuant to applicable statutes and regulations, the Secretary may adjust for any such funding error from available balances in the next feasible formula allocation cycle by (a) offsetting each such recipient’s formula allocation (if eligible for a formula allocation in such subsequent cycle) by the amount of any such funding error; and (b) re-allocating the offset amount to the recipient or recipients that would have been allocated the funds in the cycle in which any such error occurred (if eligible for a formula allocation under such subsequent cycle) in an amount proportionate to such subsequent cycle’s formula amount or formula component amount: Provided, That all offsets and reallocations from such available balances shall be recognized in the fiscal year of such adjustments instead of the fiscal year of any error, notwithstanding any inconsistent fiscal year accounting or other requirements: Provided further, That if, upon request by a recipient and giving consideration to all Federal resources available to the recipient for that purpose, the Secretary determines that the offset in such subsequent formula allocation would critically impair the recipient’s ability to accomplish the purpose of the grant, the Secretary may adjust for the funding error in two or more formula cycles and reallocate such offset amounts in accordance with (b) in the matter preceding the first proviso.

Sec. 238

(a)
Funds previously made available in chapter 9 of title X of the Disaster Relief Appropriations Act, 2013 (Public Law 113–2, division A; 127 Stat. 36) under the heading “Department of Housing and Urban Development—Community Planning and Development—Community Development Fund” that were available for obligation through fiscal year 2017 are to remain available through fiscal year 2025 for the liquidation of valid obligations incurred in fiscal years 2013 through 2017.
(b)
Emergency— Amounts repurposed pursuant to this section that were previously designated by the Congress as an emergency requirement pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 are designated by the Congress as an emergency requirement pursuant to section 4001(a)(1) and section 4001(b) of S. Con. Res. 14 (117th Congress), the concurrent resolution on the budget for fiscal year 2022 and to section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985.

Sec. 239

Any obligated balances from amounts made available for project-based vouchers under the heading “Permanent Supportive Housing” in chapter 6 of title III of Public Law 110–252 may be used for tenant-based rental assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).

Sec. 240

Notwithstanding any other provision of law, including section 208 of the National Housing Act (12 U.S.C. 1714 (Taxation Provisions)), as of the enactment of this provision, no 1 to 4 unit property with a mortgage insured, guaranteed, made, or held by the Secretary of Housing and Urban Development shall be subject as priming lien securing repayment of to a new residential Property Assessed Clean Energy (PACE or R-PACE) loan or equivalent financing without the PACE loan or equivalent financing provider obtaining prior written consent from the Secretary of HUD, subject to such terms and conditions as the Secretary may prescribe: Provided, That any new residential Property Assessed Clean Energy (PACE or R-PACE) loan or equivalent financing that is entered into by a PACE Provider absent such consent shall be deemed void ab initio and the PACE Provider shall bear all costs associated with the transactions with no recourse against the homeowner resulting from the PACE transaction, including all costs incurred by any holder of an insured or guaranteed mortgage or the Secretary in obtaining good and marketable title: Provided further, That any Property Assessed Clean Energy (PACE or R-PACE) assessments will not have a lien priority above a lien for any mortgage insured, guaranteed, made, or held by the Secretary of Housing and Urban Development.

Sec. 241

(a)
With respect to the funds made available for the Continuum of Care program authorized under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) under the heading “Homeless Assistance Grants” in the Department of Housing and Urban Development Appropriations Act, 2021 (Public Law 116–260), under section 231 of the Department of Housing and Urban Development Appropriations Act, 2020 (42 U.S.C. 11364a), or in this title, Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.) shall not apply to applications by or awards for projects to be carried out—
(1)
on or off reservation or trust lands for awards made to Indian tribes or tribally designated housing entities; or
(2)
on reservation or trust lands for awards made to eligible entities as defined in section 401 of the McKinney-Vento Homeless-Assistance Act (42 U.S.C. 11360).
(b)
With respect to funds made available for the Continuum of Care program authorized under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) under the heading “Homeless Assistance Grants” in this title or under section 231 of the Department of Housing and Urban Development Appropriations Act, 2020 (42 U.S.C. 11364a)—
(1)
applications for projects to be carried out on reservations or trust land shall contain a certification of consistency with an approved Indian housing plan developed under section 102 of the Native American Housing Assistance and Self-Determination Act (NAHASDA) (25 U.S.C. 4112), notwithstanding section 106 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12706) and section 403 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361);
(2)
Indian tribes and tribally designated housing entities that are recipients of awards for projects on reservations or trust land shall certify that they are following an approved housing plan developed under section 102 of NAHASDA (25 U.S.C. 4112); and
(3)
a collaborative applicant for a Continuum of Care whose geographic area includes only reservation and trust land is not required to meet the requirement in section 402(f)(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360a(f)(2)).