Title II — S. 2437 (Reported in 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section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 1437f note) shall be rescinded or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the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the previous sentence, the Secretary may award up to 15 percent of the budget authority or cash recaptured and not rescinded or remitted to the Treasury to provide project owners with incentives to refinance their project at a lower interest rate.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 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

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. 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

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 2024 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. 207

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. 208

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. 209

(a)

Notwithstanding any other provision of law, subject to the conditions listed under this section, for fiscal years 2024 and 2025, 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, 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.

(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 (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.

(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 (12 U.S.C. 1701q);

(D)

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;

(E)

housing that is assisted under section 811 of the Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 8013); 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 (42 U.S.C. 1437f(b));

(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 (12 U.S.C. 1701s);

(D)

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);

(E)

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

(F)

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

(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)

Research report— 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. 210

(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;

(7)

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

(8)

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 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. 211

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. 212

Notwithstanding any other provision of law, in fiscal year 2024, 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 (42 U.S.C. 1437f) or any 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 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 (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 (in this section “MAHRAA”) (42 U.S.C. 1437f note), 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 in this section, the contract and allowable rent levels on such properties shall be subject to the requirements under section 524 of MAHRAA.

Sec. 213

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. 214

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. 215

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. 216

The Secretary shall, for fiscal year 2024, 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 2024, 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. 217

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. 218

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. 219

(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 failing score under the Uniform Physical Condition Standards (UPCS) or successor standard; or

(2)

fails to certify in writing to the Secretary within 3 days that all Exigent Health and Safety deficiencies, or those deficiencies requiring correction within 24 hours, identified by the inspector at the project have been corrected.

Sec. 220

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 2024.

Sec. 221

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: Provided, That such notification shall list each grant award by State and congressional district.

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 405 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 2024 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

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. 229

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. 230

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. 231

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. 232

(a)

Funds previously made available in the Consolidated Appropriations Act, 2017 (Public Law 115–31) for the “Choice Neighborhoods Initiative” that were available for obligation through fiscal year 2019 are to remain available through fiscal year 2025 for the liquidation of valid obligations incurred in fiscal years 2017 through 2019.

(b)

Funds previously made available in the Consolidated Appropriations Act, 2018 (Public Law 115–141) for the “Choice Neighborhoods Initiative” that were available for obligation through fiscal year 2020 are to remain available through fiscal year 2026 for the liquidation of valid obligations incurred in fiscal years 2018 through 2020.

(c)

Funds previously made available in the Consolidated Appropriations Act, 2019 (Public Law 116–6) for the “Choice Neighborhoods Initiative” that were available for obligation through fiscal year 2021 are to remain available through fiscal year 2027 for the liquidation of valid obligations incurred in fiscal years 2019 through 2021.

(d)

Funds previously made available in the Further Consolidated Appropriations Act, 2020 (Public Law 116–94) for the “Choice Neighborhoods Initiative” that were available for obligation through fiscal year 2022 are to remain available through fiscal year 2028 for the liquidation of valid obligations incurred in fiscal years 2020 through 2022.

(e)

Funds previously made available in the Consolidated Appropriations Act, 2021 (Public Law 116–260) for the “Choice Neighborhoods Initiative” that were available for obligation through fiscal year 2023 are to remain available through fiscal year 2029 for the liquidation of valid obligations incurred in fiscal years 2021 through 2023.

Sec. 233

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. 234

For fiscal year 2024, if the Secretary determines or has determined, for any prior formula grant allocation administered by the Secretary through the Offices of Public and Indian Housing, Community Planning and Development, or Housing, that a recipient received an allocation greater 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 in the next applicable formula allocation cycle by (a) offsetting each such recipient’s formula allocation (if eligible for a formula allocation in the next applicable formula allocation cycle) by the amount of any such funding error, and (b) reallocating any available balances that are attributable to the offset to the recipient or recipients that would have been allocated additional funds in the formula allocation cycle in which any such error occurred (if such recipient or recipients are eligible for a formula allocation in the next applicable formula allocation cycle) in an amount proportionate to such recipient’s eligibility under the next applicable formula allocation cycle: Provided, That all offsets and reallocations from such available balances shall be recorded against funds available for the next applicable formula allocation cycle: Provided further, That the term next applicable formula allocation cycle means the first formula allocation cycle for a program that is reasonably available for correction following such a Secretarial determination: Provided further, That if, upon request by a recipient and giving consideration to all Federal resources available to the recipient for the same grant purposes, the Secretary determines that the offset in the next applicable formula allocation cycle would critically impair the recipient’s ability to accomplish the purpose of the formula grant, the Secretary may adjust for the funding error across two or more formula allocation cycles.

Sec. 235

The Secretary may transfer from amounts made available for salaries and expenses under this title (excluding amounts made available under the heading “Office of Inspector General”) up to $500,000 from each office to the heading “Information Technology Fund” for information technology needs, including for additional development, modernization, and enhancement, to remain available until September 30, 2025: Provided, That the total amount of such transfers shall not exceed $5,000,000: Provided further, That this transfer authority shall not be used to fund information technology projects or activities that have known out-year development, modernization, or enhancement costs in excess of $500,000: Provided further, That the Secretary shall provide notification to the House and Senate Committees on Appropriations no fewer than three business days in advance of any such transfer.

Sec. 236

(a)

Funds previously made available in the Consolidated Appropriations Act, 2017 (Public Law 115–31) for “Lead Hazard Reduction” that were available for obligation through fiscal year 2018 are to remain available through fiscal year 2025 for the liquidation of valid obligations incurred in fiscal years 2017 through 2018.

(b)

Funds previously made available in the Consolidated Appropriations Act, 2018 (Public Law 115–141) for “Lead Hazard Reduction” that were available for obligation through fiscal year 2019 are to remain available through fiscal year 2026 for the liquidation of valid obligations incurred in fiscal years 2018 through 2019.

Sec. 237

The Secretary shall comply with all process requirements, including public notice and comment, when seeking to revise any annual contributions contract.

Sec. 238

(a)

Of the unobligated balances remaining from amounts made available under the heading “Lead Hazard Reduction” in title II of division L of the Consolidated Appropriations Act, 2022 (Public Law 117–103), $65,000,000 is hereby rescinded, which shall be applied to the funds remaining available for activities under paragraph (1) under such heading (excluding amounts for areas with the highest lead-based paint abatement needs).

(b)

Of the unobligated balances remaining from amounts made available under the heading “Lead Hazard Reduction” in title II of division L of the Consolidated Appropriations Act, 2022 (Public Law 117–103) and in title II of division L of the Consolidated Appropriations Act, 2023 (Public Law 117–328), $49,400,000 is hereby rescinded, which shall be applied to the funds remaining available for activities under paragraph (5) under such headings.

(c)

Of the unobligated balances remaining from amounts made available under the heading “Public Housing Fund” in title II of division L of the Consolidated Appropriations Act, 2023 (Public Law 117–328), $20,000,000 is hereby rescinded, which shall be applied to the funds remaining available for activities under paragraph (7) under such heading.

(d)

Any unobligated balances (including any unobligated balances of contract authority) as of the date of enactment of this Act included under Treasury Appropriation Fund Symbols 86 X 0129, 86 X 0148, 86 X 0197, 86 X 0314, 86 X 0315, 86 X 0324, 86 X 0402, 86 X 4058 and 86 X 8093 are hereby rescinded.

Sec. 239

The language under the heading “Rental Assistance Demonstration” in the Department of Housing and Urban Development Appropriations Act, 2012 (title II of division C of Public Law 112–55), as most recently amended by Public Law 117–103, 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 “2030”;

(3)

by striking the fourth proviso, and 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 previous 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”: Provided further, That at properties with assistance previously converted hereunder to assistance under the heading “Project Based Rental Assistance,” which are also separately assisted under section 8(o)(13) of the Act, the Secretary may, with the consent of the public housing agency and owner, terminate such project-based subsidy contracts and immediately enter into one new 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, subject to the requirement that any residents assisted under section 8(o)(13) of the Act at the time of such termination of such project-based subsidy contract shall retain all rights accrued under section 8(o)(13)(E) of the Act under the new project-based subsidy contract and section 8(o)(13)(F)(iv) of the Act shall not apply: Provided further, That to carry out the previous proviso, the Secretary may transfer from the heading “Tenant-Based Rental Assistance” to the heading “Project-Based Rental Assistance” an amount equal to the amounts associated with such terminating contract under section 8(o)(13) of the Act:”;

(4)

in the thirteenth 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”;

(5)

after the twenty-third proviso, as reordered above, by inserting the following proviso: “Provided further, That owners of properties with a senior preservation rental assistance contract under section 811 of the American Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note), shall be eligible, subject to requirements established by the Secretary as necessary to facilitate the conversion of assistance while maintaining the affordability period and the designation of the property as serving elderly families, 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:”;

(6)

in the twenty-eighth proviso, as reordered above, by inserting “, section 811 of the American Homeownership and Economic Opportunity Act of 2000,” after “Housing Act of 1959”; and

(7)

in the thirty-third proviso, as reordered above, by striking “any section 202 project rental assistance contract or section 811 project rental assistance contract conversions” and inserting “the conversion of assistance from section 202(c)(2) of the Housing Act of 1959, section 811 of the American Homeownership and Economic Opportunity Act of 2000, or section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act”.

Sec. 240

There is hereby established in the Treasury of the United States a fund to be known as the “Department of Housing and Urban Development Nonrecurring Expenses Fund” (the Fund): Provided, That unobligated balances of expired discretionary funds appropriated for this or any succeeding fiscal year from the General Fund of the Treasury to the Department of Housing and Urban Development by this or any other Act may be transferred (not later than the end of the fifth fiscal year after the last fiscal year for which such funds are available for the purposes for which they were appropriated) into the Fund: Provided further, That amounts deposited in the Fund shall be available until expended, in addition to such other funds as may be available for such purposes, for capital needs of the Department, including facilities infrastructure and information technology infrastructure, subject to approval by the Office of Management and Budget: Provided further, That amounts in the Fund may be obligated only after the House and Senate Committees on Appropriations are notified at least 15 days in advance of the planned use of funds.

Sec. 241

Amounts made available for the Office of Housing under the heading “Program Offices” in this and prior Acts shall also be available, without additional competition, for cooperative agreements with Participating Administrative Entities that have been selected under section 513(b) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) (MAHRAA) to provide direct support, including carrying out due diligence and underwriting functions for owners and for technical assistance activities, on conditions established by the Secretary for small properties and owners converting assistance under the First Component or the Second Component under the heading “Rental Assistance Demonstration” in the Department of Housing and Urban Development Appropriations Act, 2012 (title II of division C of Public Law 112–55).

Sec. 242

Of the amounts made available for the Office of Policy Development and Research under the heading “Program Offices”, up to $3,500,000, to remain available until September 30, 2026, may be transferred to the heading “Information Technology Fund” to be available for the needs of the Chief Data Officer, in addition to amounts otherwise available, including for additional development, modernization, and enhancement: Provided, That the Secretary shall notify the House and Senate Committees on Appropriations no fewer than three business days in advance of any such transfer.

Sec. 243

For fiscal year 2024, the costs of any rent incentives as authorized pursuant to waivers or alternative requirements of the Jobs-Plus initiative as described under the heading “Self-Sufficiency Programs” shall not be charged against the competitive grant amounts made available under such heading: Provided, That the amount of any forgone increases in tenant rent payments due to the implementation of such rent incentives shall be factored into the public housing agency’s general operating fund eligibility pursuant to the formula under the heading “Public Housing Fund”: Provided further, That the amount of any foregone increases in tenant rent payments due to the implementation of such rent incentives implemented on behalf of residents of a project with assistance converted from public housing to project-based rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) or assistance under section 8(o)(13) of such Act under the heading “Rental Assistance Demonstration” in the Department of Housing and Urban Development Appropriations Act, 2012 (title II of division C of Public Law 112–55), as amended (42 U.S.C. 1437f note) shall be factored into (A) housing assistance payments made pursuant to project-based subsidy contracts provided under the heading “Project-Based Rental Assistance”; and (B) housing assistance payments made by public housing agencies pursuant to project-based assistance contracts under section 8(o)(13) of such Act, with these costs being renewed under the heading “Tenant-Based Rental Assistance”.

Sec. 244

(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 this and prior Acts and under section 231 of the Department of Housing and Urban Development Appropriations Act, 2020 (42 U.S.C. 11364a)—

(1)

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—

(A)

on or off reservation or trust lands for awards made to Indian tribes or tribally designated housing entities; or

(B)

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);

(2)

Indian tribes and tribally designated housing entities shall also be eligible to administer permanent housing rental assistance under section 423(g) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11383(g)).

(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)).

Sec. 245

(a)

Section 184(a) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a(a)) is amended to read as follows:

“(a) Authority—To provide access to sources of private financing to Indian families, Indian housing authorities, and Indian tribes, who otherwise could not acquire housing financing because of the unique legal status of Indian lands and the unique nature of tribal economies; and to expand homeownership opportunities to Indian families, Indian housing authorities and Indian tribes on fee simple lands, the Secretary may guarantee not to exceed 100 percent of the unpaid principal and interest due on any loan eligible under subsection (b) made to an Indian family, Indian housing authority, or Indian tribe on trust land and fee simple land.”

(b)

Section 184(b)(2) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a(b)(2)) is amended to read as follows:

“(2) Eligible housing—The loan shall be used to construct, acquire, refinance, or rehabilitate 1- to 4-family dwellings that are standard housing.”

(c)

Section 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13b) is amended—

(1)

in subsection (b), by inserting “, and to expand homeownership opportunities to Native Hawaiian families who are eligible to receive a homestead under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108) on fee simple lands in the State of Hawaii” after “markets”; and

(2)

in subsection (c), by striking paragraph (2) and inserting the following:

“(2) Eligible housing—The loan shall be used to construct, acquire, refinance, or rehabilitate 1- to 4-family dwellings that are standard housing.”

Sec. 246

(a)

Section 184(b)(5)(A) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a(b)(5)(A)) is amended to read as follows:

“(5) Terms—The loan shall—

“(A) be made for a term not exceeding 30 years, except as determined by the Secretary, when there is a loan modification under subsection (h)(1)(B), the loan shall not exceed 40 years;”

(b)

Section 184A(c)(5)(A) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13b(c)(5)(A)) is amended to read as follows:

“(5) Terms—The loan shall—

“(A) be made for a term not exceeding 30 years; except, as determined by the Secretary, when there is a loan modification under subsection (i)(1)(B) the term of the loan shall not exceed 40 years;”

Sec. 247

Section 105 of the Housing and Community Development Act of 1974 (42 U.S.C. 5305) is amended by adding at the end the following new subsection:

“(j) Special activities by indian tribes—Indian tribes receiving grants under section 5306(a)(1) of this title (section 106(a)(1) of this Act) shall be authorized to carry out activities described in subsection (a)(15) directly.”

Sec. 248

Section 184A(c) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13b(c)) is amended by adding at the end the following new paragraph:

“(6) Prohibition on pace priming—Notwithstanding any other provision of law, no property with a loan guaranteed under this section shall be subject 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, subject to such terms and conditions as the Secretary may prescribe. Any new residential 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 borrower resulting from the PACE transaction, including all costs incurred by any holder of a guaranteed loan or the Secretary in obtaining good and marketable title.”

Sec. 249

Section 184(b) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a(b)) is amended by adding at the end the following new paragraph:

“(6) Prohibition on pace priming—Notwithstanding any other provision of law, no property with a loan guaranteed under this section, shall be subject 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, subject to such terms and conditions as the Secretary may prescribe. Any new residential 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 borrower resulting from the PACE transaction, including all costs incurred by any holder of a guaranteed loan or the Secretary in obtaining good and marketable title.”

Sec. 250

Title V of the National Housing Act (12 U.S.C. 1731a et seq.) is amended by adding at the end the following new section:

“543. Prohibition on pace priming

“Notwithstanding any other provision of law, including section 208 of this Act, no 1 to 4 unit property with a mortgage insured, guaranteed, made, or held by the Secretary after the date of enactment of this section, shall be subject 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, subject to such terms and conditions as the Secretary may prescribe. Any new 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.”

Sec. 251

Notwithstanding section 3(b)(6) of the United States Housing Act of 1937 (the Act) and chapter 63 of title 31, United States Code, amounts made available to the Secretary in this or any prior Act under the headings “Project-Based Rental Assistance” or “Housing Certificate Fund” for performance-based contract administrators to carry out section 8 of the Act (42 U.S.C. 1437f), as implemented by the Secretary in chapter VIII of title 24, Code of Federal Regulations, may be awarded through a Notice of Funding Opportunity (NOFO) not subject to procurement laws or regulations: Provided, That such awards shall be deemed for all purposes to be cooperative agreements: Provided further, That for purposes of such NOFO, eligible applicants are public housing agencies as defined by section 3(b)(6)(A) of the Act and nonprofits of such agencies when operating outside of the State or territory in which such agency is established, notwithstanding any provisions of such section 8(b) to the contrary: Provided further, That the Secretary shall award one cooperative agreement for each State or territory, except that the Secretary may award more than one agreement for a State or territory if the population of such State or territory exceeds 35,000,000: Provided further, That any cooperative agreements issued by the Secretary shall, at minimum, assign the rights and responsibilities as provided in section 8 of the Act: Provided further, That the Secretary shall assign such rights and responsibilities to the furthest extent possible to ensure effective and efficient program oversight and monitoring: Provided further, That when selecting a performance-based contract administrator, the Secretary shall provide a preference to applicants that have demonstrated experience with properties receiving project-based assistance, experience in multifamily housing preservation, addressing the concerns of low-income tenants, making assistance payments to owners, and performing the other functions assigned to a public housing agency under section 8(b) of the Act: Provided further, That if no qualified applicant applies under NOFO, the Secretary may utilize a procurement contract subject to all procurement laws and regulations to assist in carrying out section 8 of the Act: Provided further, That the Secretary shall provide for incentive-based fees as part of such awards.

Sec. 252

Section 239 of division L of the Consolidated Appropriations Act, 2016 is amended by striking “2028” and inserting “2043”.

Sec. 253

For fiscal years 2024 and 2025, the Secretary may issue a 2-year notification of funding opportunity, including any alternative procedures or requirements as may be necessary to allocate future appropriations in the second year, for the award of amounts made available for the Continuum of Care program under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.), notwithstanding any conflict with the requirements of the Continuum of Care program.

Sec. 254

The Secretary may, upon a finding that a waiver or alternative requirement is necessary for the effective delivery and administration of funds made available for new incremental voucher assistance or renewals for the Mainstream program and the family unification program (including the Foster Youth to Independence program) in this and prior Acts, waive or specify alternative requirements, other than requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards, and the environment, for—

(1)

section 8(o)(6)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(6)(A)) and regulatory provisions related to the administration of waiting lists, local preferences, and the initial term and extensions of tenant-based vouchers; and

(2)

section 8(x)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437f(x)(2)) regarding the timing of referral of youth leaving foster care.

Title II — Department of Housing and Urban Development

II Department of Housing and Urban Development