Healthy at Home Act of 2023
A BILL
To combat toxic indoor mold, and for other purposes.
Sec. 2 Definitions
Sec. 3 Interagency research on health impacts of indoor residential mold
Sec. 4 Health, safety, and habitability standards and model standards
Sec. 5 Mapping
Sec. 6 Housing stock quality requirements
“(w) Standards for physical condition and management of housing receiving assistance payments
“(1) Standards—Any entity receiving housing assistance payments under this section 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 insured or non-insured property covered under a housing assistance payment contract for project-based assistance.
“(2) Remediation—The Secretary shall take action under paragraph (3) when a multifamily housing project with a housing assistance payment contract under this section or a contract with the Department of Housing and Urban Development for similar project-based assistance—
“(A) receives a failing score on a physical inspection by the Department; or
“(B) fails to certify in writing to the Secretary within 3 days that all severe health or safety deficiencies identified at the project by the inspector have been corrected.
“(3) Notice of default
“(A) Issuance—Within 15 days of the issuance of the Real Estate Assessment Center inspection, the Secretary shall provide the owner with a notice of default that shall include a specified timetable, determined by the Secretary, for correcting all deficiencies.
“(B) Copies—The Secretary shall provide a copy of the notice of default to the tenants of the property, the local government for the jurisdiction within which the property is located, any mortgagees, and any contract administrator.
“(C) Appeal; withdrawal—If the owner appeals the notice of default and the appeal results in a passing Uniform Physical Condition Standards score for the property, the Secretary may withdraw the notice of default.
“(4) Enforcement—If the owner fails to fully correct all deficiencies identified in the notice of default by the end of the time period for correcting such deficiencies specified in the notice, the Secretary shall, in consultation with the tenant organization, one or more of the following actions, and provide additional notice of those actions to the owner and the parties specified in paragraph (3)(B) to improve property conditions and preserve housing assistance:
“(A) Take any regulatory or contractual remedies available as deemed necessary and appropriate by the Secretary to improve property conditions, protect tenants from displacement and harm, and preserve the housing assistance.
“(B) Require immediate replacement of the project management with a management agent approved by the Secretary.
“(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, in consultation with the tenant organization, under established procedures, who shall be obligated to promptly make all required repairs and to accept renewal of the assistance contract if such renewal is offered, in conjunction with the appropriate public housing agency or other local entity.
“(E) Transfer the existing section 8 contract to another project or projects and owner or owners who have demonstrated financial and organizational capacity to rehabilitate the project, in consultation with tenants and the appropriate public housing agency.
“(F) Pursue exclusionary sanctions, including suspensions or debarments from Federal programs.
“(G) Relocate tenants while providing the same level of housing assistance.
“(H) 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.
“(I) Cooperate with receivership efforts by State or local governments or lenders which aim to improve the property conditions and preserve the project-based housing assistance.
“(J) Work with the owner, lender, tenants, 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 or other resources.
“(5) Prohibition on rent increases—Effective upon the expiration of the 12-month period beginning on the date of the enactment of this subsection, the Secretary shall prohibit any increases in rents for dwelling units in the property until the owner fully corrects all deficiencies identified in the notice of default or demonstrates an ability to financially address conditions by—
“(A) providing a rehabilitation plan, developed in consultation with the tenants and approved by the Secretary; and
“(B) separately demonstrating a written and enforceable commitment by the tenants and the Secretary that any increases will address the conditions of the property.
“(6) Infeasible properties—The Secretary shall take appropriate steps to ensure that project-based contracts for rental assistance remain in effect, subject to the exercise of contractual abatement remedies to assist relocation of tenants for major threats to health and safety, taken after written notice to the affected tenants. To the extent the Secretary determines, in consultation with the tenants and the local government, that a property 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 under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), and
“(B) environmental conditions that cannot be remedied in a cost-effective fashion,
“(7) Reporting
“(A) In general—The Secretary shall submit a report to the Committees on Financial Services of the House of Representatives and Banking, Housing, and Urban Affairs of the Senate semi-annually identifying all properties covered by this subsection that received a failing physical inspection score or have received an unsatisfactory management and occupancy review during the 36-month period ending upon submission of such report. Each such report shall include—
“(i) identification of the enforcement actions being taken to address such conditions leading to such score at each such property, including imposition of civil money penalties and termination of subsidies, and identification of properties that have such conditions multiple times;
“(ii) identification of actions that the Department of Housing and Urban Development is taking to protect tenants of such identified properties; and
“(iii) any recommendations for administrative or legislative actions to further improve the living conditions at such properties.
“(B) Timing—The first report required under subparagraph (A) shall be submitted not later than 30 days after the date of the enactment of this subsection, and the second report shall be submitted within 180 days of the submission of the first report.”
Sec. 7 Construction requirements for public housing and certain other federally-assisted construction
Sec. 8 Preservation grants for properties receiving section 8 project-based rental assistance
Sec. 9 Public information and education campaign
Sec. 10 Empowering tenants
Sec. 11 Healthy Homes incentive for requiring indoor residential mold and other hazard disclosure
Sec. 12 Uniform physical inspection sampling
Sec. 13 Denial of depreciation deduction for properties with failed NSPIRE inspections
“(i) Disallowance of depreciation deduction for property which fails national standards for the physical inspection of real estate
“(1) In general—Except as provided in paragraph (2), no depreciation deduction shall be allowed under this section (and no depreciation or amortization deduction shall be allowed under any other provision of this subtitle) to the taxpayer for the taxable year with respect to any property described in section 168(e)(2)(A)(i) which fails an NSPIRE inspection during the taxable year.
“(2) Exceptions
“(A) In general—No deduction shall be denied under paragraph (1) in the case of a health or safety violation which causes a property to fail an NSPIRE inspection if either—
“(i) such violation is cured within 90 days of the date of a failed inspection, or
“(ii) the inspector finds sufficient evidence that such violation was caused by the tenant and not by the owner or management of the property.
“(B) Extension of time to cure—The Secretary of Health and Human Services may provide 30-day extensions of the 90-day period described in subparagraph (A)(i) on a case-by-case basis and communicate such extensions to the Secretary of the Treasury.
“(3) NSPIRE inspection—The term “NSPIRE inspection” means any housing inspection required under the National Standards for the Physical Inspection of Real Estate of the Real Estate Assessment Center of the Department of Housing and Urban Development.
“(4) Increased duration for disallowance in the case of multiple failed inspections—In the case of a property which fails two consecutive NSPIRE inspections, paragraph (1) shall be applied by substituting “for the taxable year, and for the immediately succeeding taxable year,” for “for the taxable year”.
“(5) Disallowed depreciation amounts may not be taken in future year—The depreciation deduction allowed with respect to the property described in paragraph (1) with respect to any future taxable year shall be determined without regard to the amount denied for any year for which such deduction was denied.
“(6) Basis adjustments—If, but for this subsection, a depreciation or amortization deduction would be allowable to the taxpayer with respect to any property—
“(A) the taxpayer’s basis in such property shall be reduced by any depreciation or amortization deductions disallowed under this subsection, and
“(B) the basis of the remainder interest in such property shall be increased by the amount of such disallowed deductions.
“(7) Regulations and guidance
“(A) In general—The Secretary, after consultation with the Secretary of Housing and Urban Development, shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection.
“(B) HUD Secretary—Not later than one year after the date of the enactment of this subsection, the Secretary of Housing and Urban Development shall prescribe regulations to establish a mechanism for providing information to the Secretary detailing which properties have failed an NSPIRE inspection during the taxable year and which properties have received extensions of time to cure. In creating this mechanism, the Secretary of Housing and Urban Development shall ensure that the Secretary of the Treasury receives information about failing properties at least once per calendar quarter.”