Title V — Program Reform

119th Congress · Approved Jul 11, 2026 · 140 Stat. 846 · Lineage

TITLE V Program Reform

SEC. 501. Home Investment Partnerships Reauthorization and Reform Act.

(a)

Authorization.— Section 205 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows:

“SEC. 205. AUTHORIZATION OF PROGRAM.

“The HOME Investment Partnerships Program under subtitle A is hereby authorized.”

(b)

Definition of Community Housing Development Organization.— Section 104(6)(B) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704(6)(B)) is amended by striking “ significant”.

(c)

Assistance for Low-income Families.— Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended—

(1)

in section 214(2) (42 U.S.C. 12742(2)), by striking “ households that qualify as low-income families” and inserting “ families with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary”; and

(2)

in section 271(c) (42 U.S.C. 12821(c))—

(A)

in paragraph (1)(B), by striking “ low-income” and inserting “ families with a household income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families”; and

(B)

in paragraph (2)(A), by striking “ low-income families” and inserting “ families with a household income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families”.

(d)

Choices Made by Participating Jurisdictions.— Section 212(a)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)(2)) is amended to read as follows:

“(2) Limitation.—The Secretary may not restrict the choice by a participating jurisdiction of rehabilitation, substantial rehabilitation, new construction, reconstruction, acquisition, or other eligible housing uses authorized in paragraph (1) unless the restriction is explicitly authorized under section 223(2).”

(e)

Use of Amounts by Certain Jurisdictions for Infrastructure Improvements.—

(1)

In general.— Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) is amended by inserting after paragraph (3) the following:

“(4) Infrastructure improvements in nonentitlement areas.—

“(A) In general.—A participating jurisdiction may use funds provided under this subtitle for infrastructure improvements, including the installation or repair of water and sewer lines, sidewalks, roads, and utility connections if—

“(i) such participating jurisdiction does not receive assistance under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5310); and

“(ii) such improvements are directly related to, and located within or immediately adjacent to—

“(I) housing assisted under this subtitle; or

“(II) housing assisted under section 42 of the Internal Revenue Code of 1986.

“(B) Application of labor standards.—The labor standards and requirements set forth in section 110 of the Housing and Community Development Act of 1974 (42 U.S.C. 5310) shall apply to any infrastructure improvement conducted using funds provided under this subtitle.

“(C) Rule of construction.—Nothing in this paragraph may be construed to impose any requirements of the HOME Investment Partnerships program on housing that benefits from an infrastructure improvement conducted using funds provided under this subtitle but was not otherwise assisted under the HOME Investment Partnerships program.”

(2)

Rulemaking.— Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall issue rules to carry out the amendment made by paragraph (1).

(f)

Per Unit Investment Limitations.— Section 212(e)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(e)(1)) is amended by striking the second sentence.

(g)

Affordable Rental Housing Qualifications.— Section 215(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)) is amended by adding at the end the following:

“(7) Qualification exception.—Notwithstanding paragraph (1)(A), a rental unit shall be considered to qualify as affordable housing under this title if—

“(A) the unit is occupied by a tenant receiving tenant-based rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f);

“(B) the contribution of the tenant toward rent does not exceed the amount permitted under the assistance described in subparagraph (A); and

“(C) the total rent for the unit does not exceed the amount approved by the public housing agency administering the assistance described in subparagraph (A).”

(h)

Affordable Home-ownership Housing Qualifications.— Section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745) is amended—

(1)

in subsection (b)—

(A)

in paragraph (2), by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and adjusting the margins accordingly;

(B)

in paragraph (3)—

(i)

in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly; and

(ii)

by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly;

(C)

by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly;

(D)

by striking “ Housing that is for home-ownership” and inserting the following:

“(1) Qualification.—Housing that is for home-ownership”

(E)

in paragraph (1), as so designated—

(i)

in subparagraph (A), as so redesignated—

(I)

by striking “ 95 percent” and inserting “ 110 percent”; and

(II)

by inserting “ (defined as the amount borrowed by the homebuyer to purchase the home, or the estimated value after rehabilitation, which may be adjusted to account for the limits on future value imposed by the resale restriction)” after “ purchase price”;

(ii)

in subparagraph (B), as so redesignated, in the matter preceding clause (i), by striking “ whose family qualifies as a low-income family” and inserting “ with a family income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families”;

(iii)

in subparagraph (C), as so redesignated—

(I)

in clause (i)(II)—

(aa)

by striking “ low-income home-buyers” and inserting “ home-buyers with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families”; and

(bb)

by striking “ or” at the end;

(II)

in clause (ii), by striking “ and” at the end and inserting “ or”; and

(III)

by adding at the end the following:

“(iii) maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary, that preserves affordability for future eligible home-buyers and ensures compliance with the purposes of this title, including through the use of purchase options, rights of first refusal, or other preemptive rights to purchase housing;”

(iv)

in subparagraph (D), as so redesignated, by striking the period at the end and inserting “ ; and”; and

(v)

by adding at the end the following:

“(E) is subject to restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate, including with respect to the useful life of the property, to—

“(i) require that any subsequent purchase of the property be—

“(I) only by a person who meets the qualifications specified under subparagraph (B); and

“(II) at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or

“(ii) recapture the investment provided under this title in order to assist other persons in accordance with the requirements of this title, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance.”

; and

(F)

by adding at the end the following:

“(2) Purchase by community land trust or cooperative housing corporation.—Notwithstanding subparagraph (C)(i) of paragraph (1) and under terms determined by the Secretary, the Secretary may permit a participating jurisdiction to allow a community land trust, housing cooperative, or a community development corporation that used assistance provided under this subtitle for the development of housing that meets the criteria under paragraph (1), to acquire the housing—

“(A) in accordance with the terms of the preemptive purchase option, lease, covenant on the land, or other similar legal instrument of the community land trust or housing cooperative when the terms and rights in the preemptive purchase option, lease, covenant, or legal instrument are and remain subject to the requirements of this title;

“(B) when the purchase is for—

“(i) the purpose of—

“(I) entering into the chain of title;

“(II) enabling a purchase by a person who meets the qualifications specified under paragraph (1)(B) and is on a waitlist maintained by the community land trust or housing cooperative, subject to enforcement by the participating jurisdiction of all applicable requirements of this title, as determined by the Secretary;

“(III) performing necessary rehabilitation and improvements; or

“(IV) adding a subsidy to preserve affordability, which may be from Federal or non-Federal sources; or

“(ii) another purpose determined appropriate by the Secretary; and

“(C) if, within a reasonable period of time after the applicable purpose under subparagraph (B) of this paragraph is fulfilled, as determined by the Secretary, the housing is then sold to a person who meets the qualifications specified under paragraph (1)(B).”

; and

(2)

by adding at the end the following:

“(c) Qualification Exceptions for Home-ownership.—

“(1) Military members.—A participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive the income qualifications described in subsection (b)(1)(B) with respect to housing that otherwise meets the criteria described in subsection (b)(1) if the owner of the housing—

“(A) is a member of a regular component of the armed forces or a member of the National Guard on full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as those terms are defined in section 101 of title 10, United States Code); and

“(B) has received—

“(i) temporary duty orders to deploy with a military unit or military orders to deploy as an individual acting in support of a military operation, to a location that is not within a reasonable distance from the housing, as determined by the Secretary, for a period of not less than 90 days; or

“(ii) orders for a permanent change of station.

“(2) Heirs and beneficiaries of deceased owners.—Housing that meets the criteria described in subsection (b)(1)(C) prior to the death of an owner of such housing shall continue to qualify as affordable housing under this title if—

“(A) the housing is the principal residence of an heir or beneficiary of the deceased owner, as defined by the Secretary; and

“(B) the heir or beneficiary, in accordance with terms established by the Secretary, assumes the duties and obligations of the deceased owner with respect to funds provided under this title.”

(i)

Elimination of Expiration of Right to Draw Home Investment Trust Funds.— Section 218 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is amended—

(1)

by striking subsection (g); and

(2)

by redesignating subsection (h) as subsection (g).

(j)

Adjusted Recapture and Reuse of Set-aside for Community Housing Developmental Organizations.— Section 231(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12771(b)) is amended to read as follows:

“(b) Recapture and Reuse.—If any funds reserved under subsection (a) remain uninvested for a period of 24 months, the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under this title without regard to whether a community housing development organization materially participates in the use of such funds.”

(k)

Asset Recycling Information Dissemination Expansion.— Section 245(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12785(b)(2)) is amended by striking “ 95 percent” and inserting “ 110 percent”.

(l)

Environmental Review Requirements.—

(1)

In general.— Section 288 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12838) is amended by adding at the end the following:

“(e) Categorical Exemptions.—The following categories of activities carried out under this title shall be statutorily exempt from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and shall not require further review under such Act:

“(1) New construction infill housing projects.

“(2) Acquisition of real property for affordable housing purposes.

“(3) Rehabilitation projects carried out pursuant to section 212(a)(1).

“(4) New construction projects of 15 units or less.

“(f) Removing Duplicative Reviews.—

“(1) In general.—To the extent practicable and permitted by law, the Secretary shall ensure that a project that has undergone an environmental review under this section shall not be subject to a duplicative environmental review solely due to the addition, substitution, or reallocation of other sources of Federal assistance, if the scope, scale, and location of the project remain substantially unchanged.

“(2) Coordination of environmental review responsibilities.—The Secretary shall, by regulation, provide for coordination of environmental review responsibilities with other Federal agencies to streamline interagency compliance and avoid unnecessary duplication of effort under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other applicable laws.

“(3) Recognition of prior reviews by responsible entities.—A project may not be subject to an environmental review under this section if a substantially similar review has already been completed by an entity designated under section 104(g)(1) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(g)(1)) or by another entity the Secretary determines to have equivalent authority, if the scope, scale, and location of the project remain substantially unchanged.”

(2)

Rulemaking.— Not later than 1 year after the date of the enactment of this Act, the Secretary shall issue such rules as the Secretary determines necessary to carry out the amendment made by this subsection.

(3)

Applicability.— Any activity generated under this subsection would be subject to an authorization of appropriations.

(4)

Definition.— Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended by striking paragraph (25) and inserting the following:

“(25) The term ‘infill housing project’ means a residential housing project that—

“(A) is located within the geographic limits of a municipality;

“(B) is adequately served by existing utilities and public services as required under applicable law;

“(C) is located on a site of previously disturbed land of not more than 5 acres; and

“(D) is substantially surrounded by residential or commercial development, as determined by the Secretary.”

(m)

Application of Build America, Buy America Requirements for Home Investment Partnerships Program.—

(1)

In general.— Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development (in this subsection referred to as the “Secretary”) shall complete a review of the implementation of the Build America, Buy America Act (title IV of division G of Public Law 117–58; 42 U.S.C. 8301 note) with respect to the activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.).

(2)

Updated guidance.— Not later than 90 days after the review described in subsection (a) is completed, the Secretary shall issue updated guidance to clarify the application of the Build America, Buy America Act (title IV of division G of Public Law 117–58; 42 U.S.C. 8301 note) with respect to the activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.).

(3)

Report.— Not later than 270 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that describes—

(A)

the results of the review required under subsection (a); and

(B)

the guidance issued as described in subsection (b).

(n)

Application of Other Specified Statutory Requirements.— Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding at the end the following:

“SEC. 291. NONAPPLICABILITY OF CERTAIN REQUIREMENTS FOR SMALL PROJECTS.

“Notwithstanding any other provision of law, the requirements of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and any implementing regulations or guidance, shall not apply to an activity assisted under this title that involves rehabilitation, construction, or other development of housing if—

“(1) the recipient of assistance under this title is—

“(A) a State recipient pursuant to section 216; or

“(B) a participating jurisdiction that received a total allocation of less than $3,000,000 in the most recent fiscal year pursuant to section 216; and

“(2) the total number of dwelling units assisted as a part of such activity is not more than 50.”

(o)

Reallocation Not Available for Certain Jurisdictions.— Section 217(d) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(d)) is amended—

(1)

in paragraph (1), by striking the second sentence and inserting the following: “ Subject to paragraph (4), jurisdictions eligible for such reallocations shall include participating jurisdictions and jurisdictions meeting the requirements of this title, including the requirements in paragraphs (3), (4), and (5) of section 216.”; and

(2)

by adding at the end the following:

“(4) Reallocation not available for certain jurisdictions.—The Secretary may decline to make a reallocation available to a jurisdiction eligible for such reallocation if such jurisdiction has failed to meet or comply with any requirement under this title.”

(p)

Amendments to Qualification as Affordable Housing.— Section 215(a)(1)(E) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)) is amended by striking “ except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; and” and inserting the following:

“(i) upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action—

“(I) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and

“(II) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; or

“(ii) where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and”

(q)

Tenant and Participant Protections for Affordable Housing.— Section 225 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12755) is amended by adding at the end the following:

“(e) Exception.—Paragraphs (2), (3), and (4) of subsection (d) shall not apply to housing under this section that meets the following criteria:

“(1) The housing is affordable housing with not more than 4 dwelling units, each of which is made available for rental.

“(2) Each dwelling unit in the housing bears rent in an amount that complies with the requirements described in paragraph (1)(A).

“(3) Each dwelling unit in the housing is accompanied by a low-income family.

“(4) No dwelling in the housing is refused for leasing to a holder of a voucher under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the status of the prospective tenant as a holder of that voucher.

“(5) The housing complies with the requirement described in paragraph (1)(E).

“(6) The participating jurisdiction in which the housing is located monitors the compliance of the housing with the requirements of this title in a manner consistent with the purposes of section 226(b), as determined by the Secretary.”

(r)

Revision of Definition of Community Land Trust.— Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704), as amended by subsection (l)(4), is amended by adding at the end the following:

“(26) The term ‘community land trust’ means a nonprofit entity, a State, a unit of local government, or an instrumentality of a State or unit of local government that—

“(A) is not managed by, or an affiliate of, a for profit organization;

“(B) has as a primary purpose of acquiring, developing, or holding land to provide housing that is permanently affordable to low- and moderate-income persons;

“(C) monitors properties to ensure affordability is preserved;

“(D) provides housing that is permanently affordable to low- and moderate-income persons using a ground lease, deed covenant, or other similar legally enforceable measure, determined acceptable by the Secretary, that—

“(i) keeps housing affordable to low- and moderate-income persons for not less than 30 years; and

“(ii) enables low- and moderate-income persons to rent or purchase the housing for home-ownership; and

“(E) maintains preemptive purchase options to purchase the property if such purchase would allow the housing to remain affordable to low-and moderate-income persons.”

(s)

Set-aside for Community Housing Development Organizations.— Section 231(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12771(a)) is amended, in the first sentence, by striking “ to be developed, sponsored, or owned by community housing development organizations” and inserting “ when a community housing development organization materially participates in the ownership or development of that housing, as determined by the Secretary”.

(t)

Administrative Reforms.—

(1)

Increase in program administration resources.— Section 220(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12750(b)) is amended—

(A)

by striking paragraph (2);

(B)

by striking “ Recognition.—” and all that follows through “ A contribution” and inserting “ Recognition.—A contribution”; and

(C)

by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and adjusting the margins accordingly.

(2)

Modification of jurisdictions eligible for reallocations.— Section 217(d)(3) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(d)(3)) is amended—

(A)

in the paragraph heading, by striking “ Limitation” and inserting “ Limitations”; and

(B)

by striking “ Unless otherwise specified” and inserting the following:

“(A) Removal of participating jurisdictions from reallocation.—The Secretary may, upon a finding that the participating jurisdiction has failed to meet or comply with the requirements of this title, remove a participating jurisdiction from participation in reallocations of funds made available under this title.

“(B) Reallocation to same type of entity.—Unless otherwise specified”

(3)

Home property inspections.— Section 226(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12756(b)) is amended—

(A)

by striking “ Each participating jurisdiction” and inserting the following:

“(1) In general.—Each participating jurisdiction”

; and

(B)

by striking “ Such review shall include” and all that follows and inserting the following:

“(2) Onsite inspections.—

“(A) Inspections by units of general local government.—A review conducted under paragraph (1) by a participating jurisdiction that is a unit of general local government shall include an onsite inspection to determine compliance with housing codes and other applicable regulations.

“(B) Inspections by states.—A review conducted under paragraph (1) by a participating jurisdiction that is a State shall include an onsite inspection to determine compliance with a national standard as determined by the Secretary.

“(3) Inclusion in performance report and publication.—A participating jurisdiction shall include in the performance report of the participating jurisdiction submitted to the Secretary under section 108(a), and make available to the public, the results of each review conducted under paragraph (1).”

(4)

Revisions to strengthen enforcement and penalties for noncompliance.— Section 223 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12753) is amended—

(A)

in the section heading, by striking “ penalties for misuse of funds” and inserting “ program enforcement and penalties for noncompliance”;

(B)

in the matter preceding paragraph (1), by inserting after “ any provision of this subtitle” the following: “ , including any provision applicable throughout the period required by section 215(a)(1)(E) and applicable regulations,”;

(C)

in paragraph (2), by striking “ or” at the end;

(D)

in paragraph (3), by striking the period at the end and inserting “ ; or”; and

(E)

by adding at the end the following:

“(4) reduce payments to the participating jurisdiction under this subtitle by an amount equal to the amount of such payments that were not expended by the participating jurisdiction in accordance with this title.”

(u)

Minimum Allocations.— Section 217(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747 (b)) is amended—

(1)

in paragraph (2), by striking “ $500,000” each place that term appears and inserting “ $750,000”;

(2)

in paragraph (3)—

(A)

by striking “ jurisdictions that are allocated an amount of $500,000 or more” and inserting “ jurisdictions that are allocated an amount of $750,000 or more”;

(B)

by striking “ that are allocated an amount less than $500,000” and inserting “ that are allocated an amount less than $500,000 before the date of enactment of the 21st Century ROAD to Housing Act or less than $750,000 on or after the date of enactment of the 21st Century ROAD to Housing Act”; and

(C)

by striking “ , except as provided in paragraph (4)”; and

(3)

by striking paragraph (4).

(v)

Technical and Conforming Amendments.— The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended—

(1)

by striking “ Stewart B. McKinney Homeless Assistance Act” each place that term appears and inserting “ McKinney-Vento Homeless Assistance Act”;

(2)

by striking “ Committee on Banking, Finance and Urban Affairs” each place that term appears and inserting “ Committee on Financial Services”;

(3)

in the table of contents in section 1(b) (Public Law 101–625; 104 Stat. 4079)—

(A)

by striking the item relating to section 205 and inserting the following:

“Sec. 205. Authorization of program.”;

(B)

by striking the item relating to section 223 and inserting the following:

“Sec. 223. Program enforcement and penalties for noncompliance.”; and

(C)

by inserting after the item relating to section 290 the following:

“Sec. 291. Nonapplicability of certain requirements for small projects.”;

(4)

in section 104 (42 U.S.C. 12704)—

(A)

by redesignating paragraph (23) (relating to the definition of the term “to demonstrate to the Secretary”) as paragraph (22); and

(B)

by redesignating paragraph (24) (relating to the definition of the term “insular area”, as added by section 2(2) of Public Law 102–230) as paragraph (23);

(5)

in section 105(b)(8) (42 U.S.C. 12705(b)(8)), by striking “ subparagraphs” and inserting “ paragraphs”;

(6)

in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by striking “ section 105(b)(15)” and inserting “ section 105(b)(18)”;

(7)

in section 212 (42 U.S.C. 12742)—

(A)

in subsection (a)(3)(A)(ii), by inserting “ United States” before “ Housing Act”;

(B)

in subsection (d)(5), by inserting “ United States” before “ Housing Act”; and

(C)

in subsection (e)(1)—

(i)

by striking “ section 221(d)(3)(ii)” and inserting “ section 221(d)(4)”; and

(ii)

by striking “ not to exceed 140 percent” and inserting “ as determined by the Secretary”;

(8)

in section 215(a)(6)(B) (42 U.S.C. 12745(a)(6)(B)), by striking “ grand children” and inserting “ grandchildren”;

(9)

in section 217 (42 U.S.C. 12747)—

(A)

in subsection (a)—

(i)

in paragraph (1), by striking “ (3)” and inserting “ (2)”;

(ii)

by striking paragraph (3), as added by section 211(a)(2)(D) of the Housing and Community Development Act of 1992 (Public Law 102–550; 106 Stat. 3756); and

(iii)

by redesignating the remaining paragraph (3), as added by the matter under the heading “home investment partnerships program” under the heading “ Housing Programs” in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1993 (Public Law 102–389; 106 Stat. 1581), as paragraph (2); and

(B)

in subsection (b)(1)—

(i)

in subparagraph (A), in the first sentence—

(I)

by striking “ in regulation” and inserting “ , by regulation,”; and

(II)

by striking “ eligible jurisdiction” and inserting “ eligible jurisdictions”; and

(ii)

in subparagraph (F), in the first sentence—

(I)

in clause (i), by striking “ Subcommittee on Housing and Urban Affairs” and inserting “ Subcommittee on Housing, Transportation, and Community Development”; and

(II)

in clause (ii), by striking “ Subcommittee on Housing and Community Development of the Committee on Banking, Finance and Urban Affairs” and inserting “ Subcommittee on Housing and Insurance of the Committee on Financial Services”;

(10)

in section 220(c) (42 U.S.C. 12750(c))—

(A)

in paragraph (3), by striking “ Secretary” and all that follows and inserting “ Secretary;”;

(B)

in paragraph (4), by striking “ under this title” and all that follows and inserting “ under this title;”; and

(C)

by redesignating paragraphs (6), (7), and (8) as paragraphs (5), (6), and (7), respectively;

(11)

in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by striking “ for” the first place that term appears; and

(12)

in section 233 (42 U.S.C. 12773)—

(A)

in subsection (b)(6), by striking “ to community land trusts (as such term is defined in subsection (f))” and inserting “ to community land trusts (as such term is defined in section 104)”; and

(B)

by striking subsection (f).

SEC. 502. Rural Housing Service Reform Act.

(a)

Application of Multifamily Mortgage Foreclosure Procedures to Multifamily Mortgages Held by the Secretary of Agriculture and Preservation of the Rental Assistance Contract Upon Foreclosure.—

(1)

Multifamily mortgage procedures.— Section 363(2)(F) of the Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C. 3702(2)) is amended—

(A)

by striking “ or 515” and inserting “ 515, or 538”; and

(B)

by inserting “ , 1490p–2” after “ 1485”.

(2)

Preservation of contract.— Section 521(d) of the Housing Act of 1949 (42 U.S.C. 1490a(d)) is amended by adding at the end the following:

“(3) 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 under this section—

“(A) the Secretary shall maintain any rental assistance payments that are attached to any dwelling units in the property; and

“(B) the rental assistance contract may be used to provide further assistance to existing projects under 514, 515, or 516.”

(b)

Study on Rural Housing Loans for Housing for Low- and Moderate-income Families.— Not later than 6 months after the date of enactment of this Act, the Secretary of Agriculture shall conduct a study and submit to Congress a publicly available report on the loan program under section 521 of the Housing Act of 1949 (42 U.S.C. 1490a), including—

(1)

the total amount provided by the Secretary in subsidies under such section 521 to borrowers with loans made pursuant to section 502 of such Act (42 U.S.C. 1472);

(2)

how much of the subsidies described in paragraph (1) are being recaptured; and

(3)

the amount of time and costs associated with recapturing those subsidies.

(c)

Staffing and Information Technology Upgrades.— Utilizing funds appropriated for such purposes, the Secretary of Agriculture may increase staffing capacity and upgrade information technology to support all Rural Housing Service programs.

(d)

Technical Improvements.—

(1)

Authorization of appropriations.— Utilizing funds appropriated for such purposes, the Secretary of Agriculture may make improvements to the technology of the Rural Housing Service of the Department of Agriculture used to process and manage housing loans.

(2)

Availability.— Amounts appropriated pursuant to paragraph (1) shall remain available until the date that is 5 years after the date of the appropriation.

(3)

Timeline.— The Secretary of Agriculture shall make the improvements described in paragraph (1) during the 5-year period beginning on the date on which amounts are appropriated under paragraph (1).

(e)

Permanent Establishment of Housing Preservation and Revitalization Program.— Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended by adding at the end the following:

“SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.

“(a) Establishment.—The Secretary shall carry out a program under this section for the preservation and revitalization of multifamily rental housing projects financed under section 514, 515, or 516.

“(b) Notice of Maturing Loans.—

“(1) To owners.—On an annual basis, the Secretary shall provide written notice to each owner of a property financed under section 514, 515, or 516 that will mature within the 4-year period beginning upon the provision of the notice, setting forth the options and financial incentives that are available to facilitate the extension of the loan term or the option to decouple a rental assistance contract pursuant to subsection (f).

“(2) To tenants.—

“(A) In general.—On an annual basis, for each property financed under section 514, 515, or 516, not later than the date that is 2 years before the date that the loan will mature, the Secretary shall provide written notice to each household residing in the property that informs them of—

“(i) the date of the loan maturity;

“(ii) the possible actions that may happen with respect to the property upon that maturity; and

“(iii) how to protect their right to reside in federally assisted housing, or how to secure housing voucher, after that maturity.

“(B) Language.—Notice under this paragraph shall be provided in plain English and shall be translated to other languages in the case of any property located in an area in which a significant number of residents speak such other languages.

“(c) Loan Restructuring.—Under the program under this section, in any circumstance in which the Secretary proposes a restructuring to an owner or an owner proposes a restructuring to the Secretary, the Secretary may restructure such existing housing loans, as the Secretary considers appropriate, for the purpose of ensuring that those projects have sufficient resources to preserve the projects to provide safe and affordable housing for low-income residents and farm laborers, by—

“(1) reducing or eliminating interest;

“(2) deferring loan payments;

“(3) subordinating, reducing, or reamortizing loan debt;

“(4) providing other financial assistance, including advances, payments, and incentives (including the ability of owners to obtain reasonable returns on investment) required by the Secretary; and

“(5) permanently removing a portion of the housing units from income restrictions when sustained vacancies have occurred.

“(d) Renewal of Rental Assistance.—

“(1) In general.—When the Secretary proposes to restructure a loan or agrees to the proposal of an owner to restructure a loan pursuant to subsection (c), the Secretary shall offer to renew the rental assistance contract under section 521(a)(2) for a term that is the shorter of 20 years and the term of the restructured loan, subject to annual appropriations, provided that the owner agrees to bring the property up to such standards that will ensure maintenance of the property as decent, safe, and sanitary housing for the full term of the rental assistance contract.

“(2) Additional rental assistance.—With respect to a project described in paragraph (1), if rental assistance is not available for all households in the project for which the loan is being restructured pursuant to subsection (c), the Secretary may extend such additional rental assistance to unassisted households at that project as is necessary to make the project safe and affordable to low-income households.

“(e) Restrictive Use Agreements.—

“(1) Requirement.—As part of the preservation and revitalization agreement for a project, the Secretary shall obtain a restrictive use agreement that is recorded and obligates the owner to operate the project in accordance with this title.

“(2) Term.—

“(A) No extension of rental assistance contract.—Except when the Secretary enters into a 20-year extension of the rental assistance contract for a project, the term of the restrictive use agreement for the project shall be consistent with the term of the restructured loan for the project.

“(B) Extension of rental assistance contract.—If the Secretary enters into a 20-year extension of the rental assistance contract for a project, the term of the restrictive use agreement for the project shall be for the longer of—

“(i) 20 years; or

“(ii) the remaining term of the loan for that project.

“(C) Termination.—The Secretary may terminate the 20-year restrictive use agreement for a project before the end of the term of the agreement if the 20-year rental assistance contract for the project with the owner is terminated at any time for reasons outside the control of the owner.

“(f) Decoupling of Rental Assistance.—

“(1) Renewal of rental assistance contract.—If the Secretary determines that a loan maturing during the 4-year period beginning upon the provision of the notice required under subsection (b)(1) for a project cannot reasonably be restructured in accordance with subsection (c) because it is not financially feasible or the owner does not agree with the proposed restructuring, and the project was operating with rental assistance under section 521 and the recipient is a borrower under section 514 or 515, the Secretary may renew the rental assistance contract, notwithstanding any requirement under section 521 that the recipient be a current borrower under section 514 or 515, for a term of 20 years, subject to annual appropriations.

“(3) Rents.—

“(A) In general.—Any agreement to extend the term of the rental assistance contract under section 521 for a project shall obligate the owner to continue to maintain the project as decent, safe, and sanitary housing and to operate the development as affordable housing in a manner that meets the goals of this title.

“(B) Rent amounts.—Subject to subparagraph (C), in setting rents, the Secretary—

“(i) shall determine the maximum initial rent based on current fair market rents established under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f); and

“(ii) may annually adjust the rent determined under clause (i) by the operating cost adjustment factor as provided under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note).

“(C) Higher rent.—

“(i) In general.—Subparagraph (B) shall not apply if the Secretary determines that the budget-based needs of a project require a higher rent than the rent described in subparagraph (B).

“(ii) Rent.—If the Secretary makes a positive determination under clause (i), the Secretary may approve a budget-based rent level for the project.

“(4) Conditions for approval.—Before the approval of a rental assistance contract authorized under this section, the Secretary shall require, through an annual notice in the Federal Register, the owner to submit to the Secretary a plan that identifies financing sources and a timetable for renovations and improvements determined to be necessary by the Secretary to maintain and preserve the project.

“(g) Multifamily Housing Transfer Technical Assistance.—Under the program under this section, the Secretary may provide grants to qualified nonprofit organizations, housing cooperative corporations, and public housing agencies to provide technical assistance, including financial and legal services, to borrowers under loans under this title for multifamily housing to facilitate the acquisition or preservation of such multifamily housing properties in areas where the Secretary determines there is a risk of loss of affordable housing.

“(h) Administrative Expenses.—Of any amounts made available for the program under this section for any fiscal year, the Secretary may use not more than $1,000,000 for administrative expenses for carrying out such program.

“(i) Rulemaking.—

“(1) In general.—Not later than 180 days after the date of enactment of the 21st Century ROAD to Housing Act, the Secretary shall—

“(A) publish an advance notice of proposed rulemaking; and

“(B) consult with appropriate stakeholders.

“(2) Interim final rule.—Not later than 1 year after the date of enactment of the 21st Century ROAD to Housing Act, the Secretary shall publish an interim final rule to carry out this section.”

(f)

Rental Assistance Contract Authority.— Section 521(d) of the Housing Act of 1949 (42 U.S.C. 1490a(d)), as amended by this section, is amended—

(1)

in paragraph (1)—

(A)

by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively;

(B)

by inserting after subparagraph (A) the following:

“(B) upon request of an owner of a project financed under section 514 or 515, the Secretary is authorized to enter into renewal of such agreements for a period of 20 years or the term of the loan, whichever is shorter, subject to amounts made available in appropriations Acts;”

(C)

in subparagraph (C), as so redesignated, by striking “ subparagraph (A)” and inserting “ subparagraphs (A) and (B)”; and

(D)

in subparagraph (D), as so redesignated, by striking “ subparagraphs (A) and (B)” and inserting “ subparagraphs (A), (B), and (C)”;

(2)

in paragraph (2), by striking “ shall” and inserting “ may”; and

(3)

by adding at the end the following:

“(4) In the case of any rental assistance contract authority that becomes available because of the termination of assistance on behalf of an assisted family—

“(A) at the option of the owner of the rental project, the Secretary shall provide the owner a period of not more than 6 months before unused assistance is made available pursuant to subparagraph (B) during which the owner may use such authority to provide assistance on behalf of an eligible unassisted family that—

“(i) is residing in the same rental project in which the assisted family resided before the termination; or

“(ii) newly occupies a dwelling unit in the rental project during that 6-month period; and

“(B) except for assistance used as provided in subparagraph (A), the Secretary shall use such remaining authority to provide assistance on behalf of eligible families residing in other rental projects originally financed under section 514, 515, or 516.”

(g)

Modifications to Loans and Grants for Minor Improvements to Farm Housing and Buildings; Income Eligibility.— Section 504(a) of the Housing Act of 1949 (42 U.S.C. 1474(a)) is amended—

(1)

in the first sentence, by inserting “ and may make a loan to an eligible low-income applicant” after “ applicant”; and

(2)

by striking “ $7,500” and inserting “ $15,000”.

(h)

Rural Community Development Initiative.— Subtitle E of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009 et seq.) is amended by adding at the end the following:

“SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

“(a) Definitions.—In this section:

“(1) Eligible entity.—The term ‘eligible entity’ means—

“(A) a private, nonprofit community-based housing or community development organization;

“(B) a rural community; or

“(C) a federally recognized Indian tribe.

“(2) Eligible intermediary.—The term ‘eligible intermediary’ means a qualified—

“(A) private, nonprofit organization; or

“(B) public organization.

“(b) Establishment.—The Secretary shall establish a Rural Community Development Initiative, under which the Secretary shall provide grants, subject to the availability of appropriations, to eligible intermediaries to carry out programs to provide financial and technical assistance to eligible entities to develop the capacity and ability of eligible entities to carry out projects to improve housing, community facilities, and community and economic development projects in rural areas.

“(c) Amount of Grants.—The amount of a grant provided to an eligible intermediary under this section shall be not more than $500,000.

“(d) Matching Funds.—

“(1) In general.—An eligible intermediary receiving a grant under this section shall provide matching funds from other sources, including Federal funds for related activities, in an amount not less than the amount of the grant.

“(2) Waiver.—The Secretary may waive paragraph (1) with respect to a project that would be carried out in a persistently poor rural region, as determined by the Secretary.”

(i)

Annual Report on Rural Housing Programs.— Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.), as amended by this section, is amended by adding at the end the following:

“SEC. 546. ANNUAL REPORT.

“(a) In General.—The Secretary shall submit to the appropriate committees of Congress and publish on the website of the Department of Agriculture an annual report on rural housing programs carried out under this title, which shall include significant details on the health of Rural Housing Service programs, including—

“(1) raw data sortable by programs and by region regarding loan performance;

“(2) the housing stock of those programs, including information on why properties end participation in those programs, such as for maturation, prepayment, foreclosure, or other servicing issues; and

“(3) risk ratings for properties assisted under those programs.

“(b) Protection of Information.—The data included in each report required under subsection (a) may be aggregated or anonymized to protect participant financial or personal information.”

(j)

GAO Report on Rural Housing Service Technology.— Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that includes—

(1)

an analysis of how the outdated technology used by the Rural Housing Service impacts participants in the programs of the Rural Housing Service;

(2)

an estimate of the amount of funding that is needed to modernize the technology used by the Rural Housing Service; and

(3)

an estimate of the number and type of new employees the Rural Housing Service needs to modernize the technology used by the Rural Housing Service.

(k)

Adjustment to Rural Development Voucher Amount.—

(1)

In general.— Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture shall issue regulations to establish a process for adjusting the voucher amount provided under section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) after the issuance of the voucher following an interim or annual review of the amount of the voucher.

(2)

Interim review.— The interim review described in paragraph (1) shall, at the request of a tenant, allow for a recalculation of the voucher amount when the tenant experiences a reduction in income, change in family composition, or change in rental rate.

(3)

Annual review.—

(A)

In general.— The annual review described in paragraph (1) shall require tenants to annually recertify the family composition of the household and that the family income of the household does not exceed 80 percent of the area median income at a time determined by the Secretary of Agriculture.

(B)

Considerations.— If a tenant does not recertify the family composition and family income of the household within the time frame required under subparagraph (A), the Secretary of Agriculture—

(i)

shall consider whether extenuating circumstances caused the delay in recertification; and

(ii)

may alter associated consequences for the failure to recertify based on those circumstances.

(C)

Effective date.— Following the annual review of a voucher under paragraph (1), the updated voucher amount shall be effective on the 1st day of the month following the expiration of the voucher.

(4)

Deadline.— The process established under paragraph (1) shall require the Secretary of Agriculture to review and update the voucher amount described in paragraph (1) for a tenant not later than 60 days before the end of the voucher term.

(l)

Eligibility for Rural Housing Vouchers.— Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended by adding at the end the following:

“(c) Eligibility of Households in Sections 514, 515, and 516 Projects.—The Secretary may provide rural housing vouchers under this section for any low-income household (including those not receiving rental assistance) residing for a term longer than the remaining term of their lease that is in effect on the date of prepayment, foreclosure, or mortgage maturity, in a property financed with a loan under section 514 or 515 or a grant under section 516 that has—

“(1) been prepaid with or without restrictions imposed by the Secretary pursuant to section 502(c)(5)(G)(ii)(I);

“(2) been foreclosed; or

“(3) matured after September 30, 2005.”

(m)

Amount of Voucher Assistance.— Notwithstanding any other provision of law, in the case of any rural housing voucher provided pursuant to section 542 of the Housing Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance payment for the household on whose behalf the assistance is provided shall be determined as provided in subsection (a) of such section 542, including providing for interim and annual review of the voucher amount in the event of a change in household composition or income or rental rate.

(n)

Transfer of Multifamily Rural Housing Projects.— Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended—

(1)

in subsection (h), by adding at the end the following:

“(3) Transfer to nonprofit organizations.—A nonprofit or public body purchaser, including a limited partnership with a general partner with the principal purpose of providing affordable housing, may purchase a property for which a loan is made or insured under this section that has received a market value appraisal, without addressing rehabilitation needs at the time of purchase, if the purchaser—

“(A) makes a commitment to address rehabilitation needs during ownership and long-term use restrictions on the property; and

“(B) at the time of purchase, accepts long-term use restrictions on the property.”

; and

(2)

in subsection (w)(1), in the first sentence in the matter preceding subparagraph (A), by striking “ 9 percent” and inserting “ 25 percent”.

(o)

Extension of Loan Term.—

(1)

In general.— Section 502(a)(2) of the Housing Act of 1949 (42 U.S.C. 1472(a)(2)) is amended—

(A)

by inserting “ (A)” before “ The Secretary”;

(B)

in subparagraph (A), as so designated, by striking “ paragraph” and inserting “ subparagraph”; and

(C)

by adding at the end the following:

“(B) The Secretary may refinance or modify the period of any loan, including any refinanced loan, made under this section in accordance with terms and conditions as the Secretary shall prescribe, but in no event shall the total term of the loan from the date of the refinance or modification exceed 40 years.”

(2)

Application.— The amendment made under paragraph (1) shall apply with respect to loans made under section 502 of the Housing Act of 1949 (42 U.S.C. 1472) before, on, or after the date of enactment of this Act.

(p)

Release of Liability for Section 502 Guaranteed Borrower Upon Assumption of Original Loan by New Borrower.— Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended—

(1)

by striking paragraph (10) and inserting the following:

“(10) Transfer and assumption.—Upon the transfer of property for which a guaranteed loan under this subsection was made, and the assumption of the guaranteed loan by an approved eligible borrower, the original borrower of a guaranteed loan under this subsection shall be relieved of liability with respect to the loan.”

(2)

by redesignating paragraph (16) as paragraph (17); and

(3)

by inserting after paragraph (15) the following:

“(16) Fee.—

“(A) In general.—The mortgagee may charge an assuming borrower a reasonable and customary processing fee for an assumption request made under this subsection.

“(B) Maximum fee.—The Secretary shall set a maximum allowable fee described in subparagraph (A), which may be indexed for inflation.”

(q)

Department of Agriculture Loan Restrictions.—

(1)

Definitions.— In this subsection, the terms “State” and “tribal organization” have the meanings given those terms in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n).

(2)

Revision.— The Secretary of Agriculture shall revise section 3555.102(c) of title 7, Code of Federal Regulations, to exclude from the restriction under that section—

(A)

a home-based business that is a licensed, registered, or regulated child care provider under State law or by a tribal organization; and

(B)

an applicant that has applied to become a licensed, registered, or regulated child care provider under State law or by a tribal organization.

(r)

Loan Guarantees.— Section 502(h)(4) of the Housing Act of 1949 (42 U.S.C. 1472(h)(4)) is amended—

(1)

by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and adjusting the margins accordingly;

(2)

by striking “ Loans may be guaranteed” and inserting the following:

“(A) Definition.—In this paragraph, the term ‘accessory dwelling unit’ means a single, habitable living unit—

“(i) with means of separate ingress and egress;

“(ii) that is usually subordinate in size;

“(iii) that can be added to, created within, or detached from a primary 1-unit, single-family dwelling; and

“(iv) in combination with a primary 1-unit, single-family dwelling, constitutes a single interest in real estate.

“(B) Single-family requirement.—Loans may be guaranteed”

; and

(3)

by adding at the end the following:

“(C) Rule of construction.—Nothing in this paragraph shall be construed to prohibit the leasing of an accessory dwelling unit or the use of rental income derived from such a lease to qualify for a loan guaranteed under this subsection—

“(i) after the date of enactment of the 21st Century ROAD to Housing Act; and

“(ii) if the property that is the subject of the loan was constructed before the date of enactment of the 21st Century ROAD to Housing Act.”

(s)

Application Review.—

(1)

Sense of congress.— It is the sense of Congress, not later than 90 days after the date on which the Secretary of Agriculture receives an application for a loan, grant, or combined loan and grant under section 502 or 504 of the Housing Act of 1949 (42 U.S.C. 1472, 1474), the Secretary of Agriculture should—

(A)

review the application;

(B)

complete the underwriting;

(C)

make a determination of eligibility with respect to the application; and

(D)

notify the applicant of determination.

(2)

Report.—

(A)

In general.— Not later than 90 days after the date of enactment of this Act, and annually thereafter until the date described in subparagraph (B), the Secretary of Agriculture shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report—

(i)

detailing the timeliness of eligibility determinations and final determinations with respect to applications under sections 502 and 504 of the Housing Act of 1949 (42 U.S.C. 1472, 1474), including justifications for any eligibility determinations taking longer than 90 days; and

(ii)

that includes recommendations to shorten the timeline for notifications of eligibility determinations described in clause (i) to not more than 90 days.

(B)

Date described.— The date described in this subparagraph is the date on which, during the preceding 5-year period, the Secretary of Agriculture provides each eligibility determination described in subparagraph (A) during the 90-day period beginning on the date on which each application is received.

SEC. 503. Incentivizing Local Solutions to Homelessness.

Section 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11373) is amended by adding at the end the following:

“(f) Funding Cap Waiver Authority.—

“(1) In general.—Notwithstanding any other provision of law or regulation, a recipient may request a waiver to the expenditure limit established pursuant to section 415(b) for amounts provided for each of fiscal years 2027 through 2030.

“(2) Waiver request.—

“(A) In general.—A recipient seeking a waiver described in paragraph (1) shall submit to the Secretary a waiver request that includes not more than the following:

“(i) A demonstration of local needs and circumstances that necessitate a waiver.

“(ii) A detailed plan for how the recipient intends to use funds.

“(iii) A justification for how the proposed use of funds supports the most recent Consolidated Plan submitted by the recipient.

“(iv) Any public input solicited under subparagraph (B)(ii).

“(B) Notification.—Each recipient shall—

“(i) notify all subrecipients and local Continuums of Care that serve the recipient’s geographic area of the availability of waivers under this subsection; and

“(ii) prior to the submission of a waiver request under subparagraph (A), solicit public input regarding the potential need for and proposed uses of such waiver.

“(C) Approval; publication.—The Secretary shall—

“(i) make all waiver requests submitted under subparagraph (A) publicly available on the website of the Department of Housing and Urban Development;

“(ii) not later than 60 days after the date on which the Secretary receives a waiver request under subparagraph (A), approve or deny the request; and

“(iii) deny any waiver request submitted under subparagraph (A) by a recipient that relocates or threaten to relocate individuals or their property without providing emergency shelter, rapid rehousing, transitional housing, permanent supportive housing, or other permanent housing options.

“(3) Revocation.—

“(A) In general.—A waiver approved under this subsection shall remain in effect for the duration of the period of performance of fiscal year 2027 through 2030 grants, unless the recipient notifies the Secretary in writing that the recipient wishes to revoke the waiver.

“(B) Notification.—If a recipient intends to revoke a waiver under subparagraph (A), the recipient shall—

“(i) solicit input from subrecipients regarding the revocation before submitting the revocation; and

“(ii) provide subrecipients with a summary of the input and the justification for the revocation in its submittal prior to notifying the Secretary in writing.

“(C) Publication.—The Secretary shall publish any revocation of a waiver under subparagraph (A) and the justification of the recipient for the waiver on the website of the Department of Housing and Urban Development.”

SEC. 504. Reforming Disaster Recovery Act.

(a)

Definitions.— In this section:

(1)

Department.— The term “Department” means the Department of Housing and Urban Development.

(2)

Fund.— The term “Fund” means the Long-Term Disaster Recovery Fund established under subsection (c).

(3)

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

(b)

Duties of the Department of Housing and Urban Development.—

(1)

In general.— The offices and officers of the Department shall be responsible for—

(A)

leading and coordinating the disaster-related responsibilities of the Department under the National Response Framework, the National Disaster Recovery Framework, and the National Mitigation Framework;

(B)

coordinating and administering programs, policies, and activities of the Department related to disaster relief, long-term recovery, resiliency, and mitigation, including disaster recovery assistance under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.);

(C)

supporting disaster-impacted communities as those communities specifically assess, plan for, and address the housing stock and housing needs in the transition from emergency shelters and interim housing to permanent housing of those displaced, especially among vulnerable populations and extremely low-, low-, and moderate-income households;

(D)

collaborating with the Federal Emergency Management Agency and the Small Business Administration and across the Department to align disaster-related regulations and policies, including incorporation of consensus-based codes and standards and insurance purchase requirements, and ensuring coordination and reducing duplication among other Federal disaster recovery programs;

(E)

promoting best practices in mitigation and resilient land use planning;

(F)

coordinating technical assistance, including mitigation, resiliency, and recovery training and information on all relevant legal and regulatory requirements, to entities that receive disaster recovery assistance under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) that demonstrate capacity constraints; and

(G)

supporting State, Tribal, and local governments in developing, coordinating, and maintaining their capacity for disaster resilience and recovery and developing pre-disaster recovery and hazard mitigation plans, in coordination with the Federal Emergency Management Agency and other Federal agencies.

(2)

Establishment of the office of disaster management and resiliency.— Section 4 of the Department of Housing and Urban Development Act (42 U.S.C. 3533) is amended by adding at the end the following:

“(i) Office of Disaster Management and Resiliency.—

“(1) Establishment.—There is established the Office of Disaster Management and Resiliency.

“(2) Duties.—The Office of Disaster Management and Resiliency shall—

“(A) be responsible for oversight and coordination of all departmental disaster preparedness and response responsibilities; and

“(B) coordinate with the Federal Emergency Management Agency, the Small Business Administration, and other offices of the Department in supporting recovery and resilience activities to provide a comprehensive approach in working with communities.”

(c)

Long-Term Disaster Recovery Fund.—

(1)

Establishment.— There is established in the Treasury of the United States an account to be known as the “Long-Term Disaster Recovery Fund”.

(2)

Deposits, transfers, and credit.—

(A)

In general.— The Fund shall consist of amounts appropriated, transferred, and credited to the Fund.

(B)

Transfers.— The following may be transferred to the Fund:

(i)

Amounts made available through section 106(c)(4) of the Housing and Community Development Act of 1974 (42 U.S.C. 5306(c)(4)) as a result of actions taken under section 104(e), 111, or 124(j) of such Act.

(ii)

Any unobligated balances available until expended remaining or subsequently recaptured from amounts appropriated for any disaster and related purposes under the heading “Community Development Fund” in any Act prior to the establishment of the Fund.

(C)

Use of transferred amounts.— Amounts transferred to the Fund shall be used for the eligible uses described in paragraph (3).

(3)

Eligible uses of fund.—

(A)

In general.— Amounts in the Fund shall be available—

(i)

to provide assistance in the form of grants under section 124 of the Housing and Community Development Act of 1974, as added by subsection (d); and

(ii)

for activities of the Department that support the provision of such assistance, including necessary salaries and expenses, information technology, and capacity building, technical assistance, and pre-disaster readiness.

(B)

Set-aside.— Of each amount appropriated for or transferred to the Fund, 3 percent shall be made available for activities described in subparagraph (A)(ii), which shall be in addition to other amounts made available for those activities.

(C)

Transfer of funds.— With respect to amounts made available for use in accordance with subparagraph (B)—

(i)

amounts may be transferred to the account under the heading for “Program Offices—Salaries and Expenses—Community Planning and Development”, or any successor account, for the Department to carry out activities described in subparagraph(B); and

(ii)

amounts may be used for the activities described in subparagraph (A)(ii) and for the administrative costs of administering any funds appropriated to the Department under the heading “Community Planning and Development—Community Development Fund” for any major disaster declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) in any Act before the establishment of the Fund.

(D)

Inspector general.—

(i)

In general.— Not less than one-tenth of 1 percent of each series of awards the Secretary makes from the Fund shall be transferred to the account under the heading “Office of Inspector General” for the Department of Housing and Urban Development to support audit activities and to investigate grantee noncompliance with program requirements and waste, fraud, and abuse as a result of appropriations made available through the Fund.

(ii)

Availability.— Funding under clause (i) shall not be made available to the Office of Inspector General until 90 days after the date on which the grantee plan or supplemental plan for the grantee is approved by the Secretary under subsection (c) or (f)(3)(C) of section 124 of the Housing and Community Development Act of 1974, as added by subsection (d), is approved by the Secretary.

(4)

Interchangeability of prior administrative amounts.— Any amounts appropriated in any Act prior to the establishment of the Fund and transferred to the account under the heading “Program Offices—Salaries and Expenses—Community Planning and Development”, or any predecessor account, for the Department for the costs of administering funds appropriated to the Department under the heading “Community Planning and Development—Community Development Fund” for any major disaster declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) shall be available for the costs of administering any such funds provided by any prior or future Act, notwithstanding the purposes for which those amounts were appropriated and in addition to any amount provided for the same purposes in other appropriations Acts.

(5)

Availability of amounts.— Amounts appropriated, transferred, and credited to the Fund shall remain available until expended.

(6)

Formula allocation.— Use of amounts in the Fund for grants shall be made by formula allocation in accordance with the requirements of section 124(a) of the Housing and Community Development Act of 1974, as added by subsection (d).

(d)

Establishment of CDBG Disaster Recovery Program.— Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), as amended by this Act, is amended—

(1)

in section 102(a) (42 U.S.C. 5302(a))—

(A)

in paragraph (20)—

(i)

by redesignating subparagraph (B) as subparagraph (C);

(ii)

in subparagraph (C), as so redesignated, by inserting “ or (B)” after “ subparagraph (A)”; and

(iii)

by inserting after subparagraph (A) the following:

“(B) The term ‘persons of extremely low income’ means families and individuals whose income levels do not exceed household income levels determined by the Secretary under section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(C)), except that the Secretary may provide alternative definitions for the Commonwealth of Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, and American Samoa.”

; and

(B)

by adding at the end the following:

“(25) The term ‘major disaster’ has the meaning given the term in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).”

(2)

in section 106(c)(4) (42 U.S.C. 5306(c)(4))—

(A)

in subparagraph (A)—

(i)

by striking “ declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act”;

(ii)

by inserting “ States for use in nonentitlement areas and to” before “ metropolitan cities”; and

(iii)

by inserting “ major” after “ affected by the”;

(B)

in subparagraph (C)—

(i)

by striking “ metropolitan city or” and inserting “ State, metropolitan city, or”;

(ii)

by striking “ city or county” and inserting “ State, city, or county”; and

(iii)

by inserting “ major” before “ disaster”;

(C)

in subparagraph (D), by striking “ metropolitan cities and” and inserting “ States, metropolitan cities, and”;

(D)

in subparagraph (F)—

(i)

by striking “ metropolitan city or” and inserting “ State, metropolitan city, or”; and

(ii)

by inserting “ major” before “ disaster”; and

(E)

in subparagraph (G), by striking “ metropolitan city or” and inserting “ State, metropolitan city, or”;

(3)

in section 122 (42 U.S.C. 5321), by striking “ disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act” and inserting “ major disaster”; and

(4)

by adding at the end the following:

“SEC. 124. COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY PROGRAM.

“(a) Authorization, Formula, and Allocation.—

“(1) Authorization.—The Secretary is authorized to make community development block grant disaster recovery grants from the Long-Term Disaster Recovery Fund established under section 504(c) of the 21st Century ROAD to Housing Act (in this section referred to as the ‘Fund’) for necessary expenses for activities authorized under subsection (f)(1) related to disaster relief, long-term recovery, restoration of housing and infrastructure, economic revitalization, and mitigation in the most impacted and distressed areas resulting from a catastrophic major disaster.

“(2) Grant awards.—Grants shall be awarded under this section to States, units of general local government, and Indian tribes based on capacity and the concentration of damage, as determined by the Secretary, to support the efficient and effective administration of funds.

“(3) Section 106 allocations.—Grants under this section shall not be considered relevant to the formula allocations made pursuant to section 106.

“(4) Federal register notice.—

“(A) In general.—Not later than 30 days after the date of enactment of this section, the Secretary shall issue a notice in the Federal Register containing the latest formula allocation methodologies used to determine the total estimate of unmet needs related to housing, economic revitalization, and infrastructure in the most impacted and distressed areas resulting from a catastrophic major disaster.

“(B) Public comment.—If the Secretary has not already requested public comment on the formula described in the notice required by subparagraph (A), the Secretary shall solicit public comments on—

“(i) the methodologies described in subparagraph (A) and seek alternative methods for formula allocation within a similar total amount of funding;

“(ii) the impact of formula methodologies on rural areas and Tribal areas;

“(iii) adjustments to improve targeting to the most serious needs;

“(iv) objective criteria for grantee capacity and concentration of damage to inform grantee determinations and minimum allocation thresholds; and

“(v) research and data to inform an additional amount to be provided for mitigation depending on type of disaster, which shall be up to 18 percent of the total estimate of unmet needs.

“(5) Regulations.—

“(A) In general.—The Secretary shall, by regulation, establish a formula to allocate assistance from the Fund to the most impacted and distressed areas resulting from a catastrophic major disaster.

“(B) Formula requirements.—The formula established under subparagraph (A) shall—

“(i) set forth criteria to determine that a major disaster is catastrophic, which criteria shall consider the presence of a high concentration of damaged housing or businesses that individual, State, Tribal, and local resources could not reasonably be expected to address without additional Federal assistance or other nationally encompassing data that the Secretary determines are adequate to assess relative impact and distress across geographic areas;

“(ii) include a methodology for identifying most impacted and distressed areas, which shall consider unmet serious needs related to housing, economic revitalization, and infrastructure;

“(iii) include an allocation calculation that considers the unmet serious needs resulting from the catastrophic major disaster and an additional amount up to 18 percent for activities to reduce risks of loss resulting from other natural disasters in the most impacted and distressed area, primarily for the benefit of low- and moderate-income persons, with particular focus on activities that reduce repetitive loss of property and critical infrastructure; and

“(iv) establish objective criteria for periodic review and updates to the formula to reflect changes in available data.

“(C) Minimum allocation threshold.—The Secretary shall, by regulation, establish a minimum allocation threshold.

“(D) Interim allocation.—Until such time that the Secretary issues final regulations under this paragraph, the Secretary shall—

“(i) allocate assistance from the Fund using the formula allocation methodology published in accordance with paragraph (4); and

“(ii) include an additional amount for mitigation of up to 18 percent of the total estimate of unmet need.

“(6) Allocation of funds.—

“(A) In general.—The Secretary shall—

“(i) except as provided in clause (ii), not later than 90 days after the President declares a major disaster, use best available data to determine whether the major disaster is catastrophic and qualifies for assistance under the formula described in paragraph (4) or (5), unless data is insufficient to make this determination; and

“(ii) if the best available data is insufficient to make the determination required under clause (i) within the 90-day period described in that clause, determine whether the major disaster qualifies when sufficient data becomes available, but in no case shall the Secretary make the determination later than 120 days after the declaration of the major disaster.

“(B) Announcement of allocation.—If amounts are available in the Fund at the time the Secretary determines that the major disaster is catastrophic and qualifies for assistance under the formula described in paragraph (4) or (5), the Secretary shall immediately announce an allocation for a grant under this section.

“(C) Additional amounts.—If additional amounts are appropriated to the Fund after amounts are allocated under subparagraph (B), the Secretary shall announce an allocation or additional allocation (if a prior allocation under subparagraph (B) was less than the formula calculation) within 15 days of any such appropriation.

“(7) Preliminary funding.—

“(A) In general.—To speed recovery, the Secretary is authorized to allocate and award preliminary grants from the Fund before making a determination under paragraph (6)(A) if the Secretary projects, based on a preliminary assessment of impact and distress, that a major disaster is catastrophic and would likely qualify for funding under the formula described in paragraph (4) or (5).

“(B) Amount.—

“(i) Maximum.—The Secretary may award preliminary funding under subparagraph (A) in an amount that is not more than $5,000,000.

“(ii) Sliding scale.—The Secretary shall, by regulation, establish a sliding scale for preliminary funding awarded under subparagraph (A) based on the size of the preliminary assessment of impact and distress.

“(C) Use of funds.—The uses of preliminary funding awarded under subparagraph (A) shall be limited to eligible activities that—

“(i) in the determination of the Secretary, will support faster recovery, improve the ability of the grantee to assess unmet recovery needs, plan for the prevention of improper payments, and reduce fraud, waste, and abuse; and

“(ii) may include evaluating the interim housing, permanent housing, and supportive service needs of the disaster impacted community, with special attention to vulnerable populations, such as homeless and low- to moderate-income households, to inform the grantee action plan required under subsection (c).

“(D) Consideration of funding.—Preliminary funding awarded under subparagraph (A)—

“(i) is not subject to the certification requirements of subsection (h)(2); and

“(ii) shall not be considered when calculating the amount of the grant used for administrative costs, technical assistance, and planning activities that are subject to the requirements under subsection (f)(3).

“(E) Waiver.—To expedite the use of preliminary funding for activities described in this paragraph, the Secretary may waive or specify alternative requirements to the requirements of this section in accordance with subsection (i).

“(F) Amended award.—

“(i) In general.—An award for preliminary funding under subparagraph (A) may be amended to add any subsequent amount awarded because of a determination by the Secretary that a major disaster is catastrophic and qualifies for assistance under the formula.

“(ii) Applicability.—Notwithstanding subparagraph (D), amounts provided by an amendment under clause (i) are subject to the requirements under subsections (f)(1) and (h)(1) and other requirements on grant funds under this section.

“(G) Technical assistance.—Concurrent with the allocation of any preliminary funding awarded under this paragraph, the Secretary shall assign or provide technical assistance to the recipient of the grant.

“(b) Interchangeability.—

“(1) In general.—The Secretary is authorized to approve the use of grants under this section to be used interchangeably and without limitation for the same activities in the most impacted and distressed areas resulting from a declaration of another catastrophic major disaster that qualifies for assistance under the formula established under paragraph (4) or (5) of subsection (a) or a major disaster for which the Secretary allocated funds made available under the heading ‘Community Development Fund’ in any Act prior to the establishment of the Fund.

“(2) Requirements.—The Secretary shall establish requirements to expedite the use of grants under this section for the purpose described in paragraph (1).

“(3) Emergency designation.—Amounts repurposed pursuant to this subsection that were previously designated by Congress as an emergency requirement pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 or a concurrent resolution on the budget are designated by the Congress as being for an emergency requirement pursuant to section 4001(a)(1) of S. Con. Res. 14 (117th Congress), the concurrent resolution on the budget for fiscal year 2022, and to legislation establishing fiscal year 2026 budget enforcement in the House of Representatives.

“(c) Grantee Plans.—

“(1) Requirement.—Not later than 90 days after the date on which the Secretary announces a grant allocation under this section, unless an extension is granted by the Secretary, the grantee shall submit to the Secretary a plan for approval describing—

“(A) the activities the grantee will carry out with the grant under this section;

“(B) the criteria of the grantee for awarding assistance and selecting activities;

“(C) how the use of the grant under this section will address disaster relief, long-term recovery, restoration of housing and infrastructure, economic revitalization, and mitigation in the most impacted and distressed areas;

“(D) how the use of the grant funds for mitigation is consistent with hazard mitigation plans submitted to the Federal Emergency Management Agency under section 322 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5165);

“(E) the estimated amount proposed to be used for activities that will benefit persons of low and moderate income;

“(F) how the use of grant funds will repair and replace existing housing stock for vulnerable populations, including low- to moderate-income households;

“(G) how the grantee will address the priorities described in paragraph (5);

“(H) how uses of funds are proportional to unmet needs, as required under paragraph (6);

“(I) for State grantees that plan to distribute grant amounts to units of general local government, a description of the method of distribution; and

“(J) such other information as may be determined by the Secretary in regulation.

“(2) Public consultation.—To permit public examination and appraisal of the plan described in paragraph (1), to enhance the public accountability of grantee, and to facilitate coordination of activities with different levels of government, when developing the plan or substantial amendments proposed to the plan required under paragraph (1), a grantee shall—

“(A) publish the plan before adoption;

“(B) provide citizens, affected units of general local government, and other interested parties with reasonable notice of, and opportunity to comment on, the plan, with a public comment period of not less than 14 days;

“(C) consider comments received before submission to the Secretary;

“(D) follow a citizen participation plan for disaster assistance adopted by the grantee that, at a minimum, provides for participation of residents of the most impacted and distressed area affected by the major disaster that resulted in the grant under this section and other considerations established by the Secretary; and

“(E) undertake any consultation with interested parties as may be determined by the Secretary in regulation.

“(3) Approval.—The Secretary shall—

“(A) by regulation, specify criteria for the approval, partial approval, or disapproval of a plan submitted under paragraph (1), including approval of substantial amendments to the plan;

“(B) review a plan submitted under paragraph (1) upon receipt of the plan;

“(C) allow a grantee to revise and resubmit a plan or substantial amendment to a plan under paragraph (1) that the Secretary disapproves;

“(D) by regulation, specify criteria for when the grantee shall be required to provide the required revisions to a disapproved plan or substantial amendment under paragraph (1) for public comment prior to resubmission of the plan or substantial amendment to the Secretary; and

“(E) approve, partially approve, or disapprove a plan or substantial amendment under paragraph (1) not later than 60 days after the date on which the plan or substantial amendment is received by the Secretary.

“(4) Low- and moderate-income overall benefit.—

“(A) Use of funds.—Not less than 70 percent of a grant made under this section shall be used for activities that benefit persons of low and moderate income unless the Secretary—

“(i) specifically finds that—

“(I) there is compelling need to reduce the percentage for the grant; and

“(II) the housing needs of low- and moderate-income persons have been addressed; and

“(ii) issues a waiver and alternative requirement specific to the grant pursuant to subsection (i) to lower the percentage.

“(B) Regulations.—The Secretary shall, by regulation, establish protocols that reflect the required use of funds under subparagraph (A), including persons with extremely and very low incomes.

“(5) Prioritization.—The grantee shall prioritize activities that—

“(A) assist persons with extremely low-, low-, and moderate-incomes and other vulnerable populations to better recover from and withstand future disasters;

“(B) address housing needs arising from a disaster, or those needs present prior to a disaster, including the needs of both renters and homeowners;

“(C) prolong the life of housing and infrastructure;

“(D) use cost-effective means of preventing harm to people and property and incorporate protective features and redundancies; and

“(E) other measures that will assure the continuation of critical services during future disasters.

“(6) Proportional allocation.—For each specific disaster, a grantee under this section shall allocate grant funds proportional to unmet needs between housing activities for renters and homeowners, economic revitalization, and infrastructure unless the Secretary specifically finds that—

“(A) there is a compelling need for a disproportional allocation among those unmet needs; and

“(B) the disproportional allocation described in subparagraph (A) is not inconsistent with the requirements under paragraph (4).

“(7) Disaster risk mitigation.—

“(A) Definition.—In this paragraph, the term ‘hazard-prone areas’—

“(i) means areas identified by the Secretary, in consultation with the Administrator of the Federal Emergency Management Agency, at risk from natural hazards that threaten property damage or health, safety, and welfare, such as floods, wildfires (including Wildland-Urban Interface areas), earthquakes, lava inundation, tornados, and high winds; and

“(ii) includes areas having special flood hazards as identified under the Flood Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) or the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

“(B) Hazard-prone areas.—The Secretary, in consultation with the Administrator of the Federal Emergency Management Agency, shall establish minimum construction standards, insurance purchase requirements, and other requirements for the use of grant funds in hazard-prone areas.

“(C) Special flood hazards.—

“(i) In general.—For the areas described in subparagraph (A)(ii), the insurance purchase requirements established under subparagraph (B) shall meet or exceed the requirements under section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(a)).

“(ii) Treatment as financial assistance.—All grants under this section shall be treated as financial assistance for purposes of section 3(a)(3) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a)(3)).

“(D) Consideration of future risks.—The Secretary may consider future risks to protecting property and health, safety, and general welfare, and the likelihood of those risks, when making the determination of or modification to hazard-prone areas under this paragraph.

“(8) Relocation.—

“(A) In general.—The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to activities assisted under this section to the extent determined by the Secretary in regulation, or as provided in waivers or alternative requirements authorized in accordance with subsection (i).

“(B) Policy.—Each grantee under this section shall establish a relocation assistance policy that—

“(i) minimizes displacement and describes the benefits available to persons displaced as a direct result of acquisition, rehabilitation, or demolition in connection with an activity that is assisted by a grant under this section; and

“(ii) includes any appeal rights or other requirements that the Secretary establishes by regulation.

“(d) Certifications.—Any grant under this section shall be made only if the grantee certifies to the satisfaction of the Secretary that—

“(1) the grantee is in full compliance with the requirements under subsection (c)(2);

“(2) for grants other than grants to Indian tribes, the grant will be conducted and administered in conformity with the Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.) and the Fair Housing Act (42 U.S.C. 3601 et seq.);

“(3) the projected use of funds has been developed so as to give maximum feasible priority to activities that will benefit recipients described in subsection (c)(4)(A) and activities described in subsection (c)(5), and may also include activities that are designed to aid in the prevention or elimination of slum and blight to support disaster recovery, meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs, and alleviate future threats to human populations, critical natural resources, and property that an analysis of hazards shows are likely to result from natural disasters in the future;

“(4) the grant funds shall principally benefit persons of low- and moderate-income as described in subsection (c)(4)(A);

“(5) for grants other than grants to Indian tribes, within 24 months of receiving a grant or at the time of its 3- or 5-year update, whichever is sooner, the grantee will review and make modifications to its non-disaster housing and community development plans and strategies required by subsections (c) and (m) of section 104 to reflect the disaster recovery needs identified by the grantee and consistency with the plan under subsection (c)(1);

“(6) the grantee will not attempt to recover any capital costs of public improvements assisted in whole or part under this section by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements, unless—

“(A) funds received under this section are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than under this chapter; or

“(B) for purposes of assessing any amount against properties owned and occupied by persons of moderate income, the grantee certifies to the Secretary that the grantee lacks sufficient funds received under this section to comply with the requirements of subparagraph (A);

“(7) the grantee will comply with the other provisions of this title that apply to assistance under this section and with other applicable laws;

“(8) the grantee will follow a relocation assistance policy that includes any minimum requirements identified by the Secretary; and

“(9) the grantee will adhere to construction standards, insurance purchase requirements, and other requirements for development in hazard-prone areas described in subsection (c)(7).

“(e) Performance Reviews and Reporting.—

“(1) In general.—The Secretary shall, on not less frequently than an annual basis until the closeout of a particular grant allocation, make such reviews and audits as may be necessary or appropriate to determine whether a grantee under this section has—

“(A) carried out activities using grant funds in a timely manner;

“(B) met the performance targets established by paragraph (2);

“(C) carried out activities using grant funds in accordance with the requirements of this section, the other provisions of this title that apply to assistance under this section, and other applicable laws; and

“(D) a continuing capacity to carry out activities in a timely manner.

“(2) Performance targets.—The Secretary shall develop and make publicly available critical performance targets for review, which shall include spending thresholds for each year from the date on which funds are obligated by the Secretary to the grantee until such time all funds have been expended.

“(3) Failure to meet targets.—

“(A) Suspension.—If a grantee under this section fails to meet 1 or more critical performance targets under paragraph (2), the Secretary may temporarily suspend the grant.

“(B) Performance improvement plan.—If the Secretary suspends a grant under subparagraph (A), the Secretary shall provide to the grantee a performance improvement plan with the specific requirements needed to lift the suspension within a defined time period.

“(C) Report.—If a grantee fails to meet the spending thresholds established under paragraph (2), the grantee shall submit to the Secretary, the appropriate committees of Congress, and each member of Congress who represents a district or State of the grantee a written report identifying technical capacity, funding, or other Federal or State impediments affecting the ability of the grantee to meet the spending thresholds.

“(4) Collection of information and reporting.—

“(A) Requirement to report.—A grantee under this section shall provide to the Secretary such information as the Secretary may determine necessary for adequate oversight of the grant program under this section.

“(B) Public availability.—Subject to subparagraph (D), the Secretary shall make information submitted under subparagraph (A) available to the public and to the Inspector General for the Department of Housing and Urban Development.

“(C) Summary status reports.—To increase transparency and accountability of the grant program under this section, the Secretary shall, on not less frequently than an annual basis, post on a public facing dashboard summary status reports for all active grants under this section that includes—

“(i) the status of funds by activity;

“(ii) the percentages of funds allocated and expended to benefit low- and moderate-income communities;

“(iii) performance targets, spending thresholds, and accomplishments; and

“(iv) other information the Secretary determines to be relevant for transparency.

“(D) Considerations.—In carrying out this paragraph, the Secretary shall take such actions as may be necessary to ensure that personally identifiable information regarding applicants for assistance provided from funds made available under this section is not made publicly available.

“(E) Research partnerships.—

“(i) In general.—The Secretary may, upon a formal request from researchers, make disaggregated information available to the requestor that is specific and relevant to the research being conducted, and for the purposes of researching program impact and efficacy.

“(ii) Privacy protections.—In making information available under clause (i), the Secretary shall protect personally identifiable information as required under section 552a of title 5, United States Code (commonly known as the ‘Privacy Act of 1974’).

“(f) Eligible Activities.—

“(1) In general.—Activities assisted under this section—

“(A) may include activities permitted under section 105 or other activities permitted by the Secretary by waiver or alternative requirement pursuant to subsection (i); and

“(B) shall be related to disaster relief, long-term recovery, restoration of housing and infrastructure, economic revitalization, and mitigation in the most impacted and distressed areas resulting from the major disaster for which the grant was awarded.

“(2) Prohibition.—Grant funds under this section may not be used for costs reimbursable by, or for which funds have been made available by, the Federal Emergency Management Agency or the United States Army Corps of Engineers.

“(3) Administrative costs, technical assistance, and planning.—

“(A) In general.—The Secretary shall establish in regulation the maximum grant amounts a grantee may use for administrative costs, technical assistance, and planning activities, taking into consideration size of grant, complexity of recovery, and other factors as determined by the Secretary, but not to exceed 8 percent for administration and 20 percent in total.

“(B) Availability.—Amounts available for administrative costs for a grant under this section shall be available for eligible administrative costs of the grantee for any grant made under this section, without regard to a particular disaster.

“(C) Supplemental plan.—

“(i) In general.—Grantees may submit to the Secretary an optional supplemental plan to the grantee plan required under this title specifically for administrative costs, which shall include a description of the use of all grant funds for administrative costs, including for any eligible pre-award program administrative costs, and how such uses will prepare the grantee to more effectively and expeditiously administer funds provided under the full plan.

“(ii) Use of funds.—If a supplemental plan is approved under clause (i), a grantee may draw down the aforementioned administrative funds before the full grantee plan is approved.

“(iii) Waivers.—In carrying out this subparagraph, the Secretary may include any waivers or alternative requirements in accordance with subsection (i).

“(4) Program income.—Notwithstanding any other provision of law, any grantee under this section may retain program income that is realized from grants made by the Secretary under this section if the grantee agrees that the grantee will utilize the program income in accordance with the requirements for grants under this section, except that the Secretary may—

“(A) by regulation, exclude from consideration as program income any amounts determined to be so small that compliance with this paragraph creates an unreasonable administrative burden on the grantee; or

“(B) permit the grantee to transfer remaining program income to the other grants of the grantee under this title upon closeout of the grant.

“(5) Prohibition on use of assistance for employment relocation activities.—

“(A) In general.—Grants under this section may not be used to assist directly in the relocation of any industrial or commercial plant, facility, or operation, from one area to another area, if the relocation is likely to result in a significant loss of employment in the labor market area from which the relocation occurs.

“(B) Applicability.—The prohibition under subparagraph (A) shall not apply to a business that was operating in the disaster-declared labor market area before the incident date of the applicable disaster and has since moved, in whole or in part, from the affected area to another State or to a labor market area within the same State to continue business.

“(6) Requirements.—Grants under this section are subject to the requirements of this section, the other provisions of this title that apply to assistance under this section, and other applicable laws, unless modified by waivers or alternative requirements in accordance with subsection (i).

“(g) Environmental Review.—

“(1) Adoption.—A recipient of funds provided under this section that uses the funds to supplement Federal assistance provided under section 203, 402, 403, 404, 406, 407, 408(c)(4), 428, or 502 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 5170c, 5172, 5173, 5174(c)(4), 5189f, 5192) may adopt, without review or public comment, any environmental review, approval, or permit performed by a Federal agency, and such adoption shall satisfy the responsibilities of the recipient with respect to such environmental review, approval, or permit under section 104(g)(1), so long as the actions covered by the existing environmental review, approval, or permit and the actions proposed for these supplemental funds are substantially the same.

“(2) Approval of release of funds.—Notwithstanding section 104(g)(2), the Secretary or a State may, upon receipt of a request for release of funds and certification, immediately approve the release of funds for an activity or project to be assisted under this section if the recipient has adopted an environmental review, approval, or permit under paragraph (1) or the activity or project is categorically excluded from review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

“(3) Units of general local government.—The provisions of section 104(g)(4) shall apply to assistance under this section that a State distributes to a unit of general local government.

“(h) Financial Controls and Procedures.—

“(1) In general.—The Secretary shall develop requirements and procedures to demonstrate that a grantee under this section—

“(A) has adequate financial controls and procurement processes;

“(B) has adequate procedures to detect and prevent fraud, waste, abuse, and duplication of benefit; and

“(C) maintains a comprehensive and publicly accessible website.

“(2) Certification.—Before making a grant under this section, the Secretary shall certify that the grantee has in place proficient processes and procedures to comply with the requirements developed under paragraph (1), as determined by the Secretary.

“(3) Compliance before allocation.—The Secretary may permit a State, unit of general local government, or Indian tribe to demonstrate compliance with the requirements for adequate financial controls developed under paragraph (1) before a disaster occurs and before receiving an allocation for a grant under this section.

“(4) Duplication of benefits.—

“(A) In general.—Funds made available under this section shall be used in accordance with section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155) and such rules as may be prescribed under such section 312.

“(B) Penalties.—In any case in which the use of grant funds under this section results in a prohibited duplication of benefits, the grantee shall—

“(i) apply an amount equal to the identified duplication to any allowable costs of the award consistent with an actual, immediate cash requirement;

“(ii) remit any excess amounts to the Secretary to be credited to the obligated, undisbursed balance of the grant consistent with requirements on Federal payments applicable to such grantee; and

“(iii) if excess amounts under clause (ii) are identified after the period of performance or after the closeout of the award, remit such amounts to the Secretary to be credited to the Fund.

“(C) Failure to comply.—Any grantee provided funds under this section or from prior appropriations Acts under the heading ‘Community Development Fund’ for purposes related to major disasters that fails to comply with section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155) or fails to satisfy penalties to resolve a duplication of benefits shall be subject to remedies for noncompliance under section 111, unless the Secretary publishes a determination in the Federal Register that it is not in the best interest of the Federal Government to pursue remedial actions.

“(i) Waivers and Alternative Requirements.—

“(1) In general.—In administering grants under this section, the Secretary may waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the grantee of those funds (except for requirements related to fair housing, nondiscrimination, labor standards, the environment, and the requirements of this section that do not expressly authorize modifications by waiver or alternative requirement), if the Secretary makes a public finding that good cause exists for the waiver or alternative requirement.

“(2) Effective date.—A waiver or alternative requirement described in paragraph (1) shall not take effect before the date that is 5 days after the date of publication of the waiver or alternative requirement on the website of the Department of Housing and Urban Development or the effective date for any regulation published in the Federal Register.

“(3) Public notification.—The Secretary shall notify the public of all waivers or alternative requirements described in paragraph (1) in accordance with the requirements of section 7(q)(3) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(q)(3)).

“(j) Unused Amounts.—

“(1) Deadline to use amounts.—A grantee under this section shall use an amount equal to the grant within 6 years beginning on the date on which the Secretary obligates the amounts to the grantee, as such period may be extended under paragraph (4).

“(2) Recapture.—The Secretary shall recapture and credit to the Fund any amount that is unused by a grantee under this section upon the earlier of—

“(A) the date on which the grantee notifies the Secretary that the grantee has completed all activities identified in the disaster grantee’s plan under subsection (c); or

“(B) the expiration of the 6-year period described in paragraph (1), as such period may be extended under paragraph (4).

“(3) Retention of funds.—Notwithstanding paragraph (1), the Secretary—

“(A) shall allow a grantee under this section to retain amounts needed to close out grants; and

“(B) may allow a grantee under this section to retain up to 10 percent of the remaining funds to support maintenance of the minimal capacity to launch a new program in the event of a future disaster and to support pre-disaster long-term recovery and mitigation planning.

“(4) Extension of period for use of funds.—The Secretary may extend the 6-year period described in paragraph (1) by not more than 4 years, or not more than 6 years for mitigation activities, if—

“(A) the grantee submits to the Secretary—

“(i) written documentation of the exigent circumstances impacting the ability of the grantee to expend funds that could not be anticipated; or

“(ii) a justification that such request is necessary due to the nature and complexity of the program and projects; and

“(B) the Secretary submits a written justification for the extension to the Committee on Appropriations and the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Appropriations and the Committee on Financial Services of the House of Representatives that specifies the period of that extension.

“(k) Definition.—In this section, the term ‘Indian tribe’ has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).”

(e)

Regulations.—

(1)

Proposed rules.— Following consultation with the Federal Emergency Management Agency, the Small Business Administration, and other Federal agencies, not later than 6 months after the date of enactment of this Act, the Secretary shall issue proposed rules to carry out this section and the amendments made by this section and shall provide a 90-day period for submission of public comments on those proposed rules.

(2)

Final rules.— Not later than 1 year after the date of enactment of this Act, the Secretary shall issue final regulations to carry out section 124 of the Housing and Community Development Act of 1974, as added by subsection (d).

(f)

Coordination of Disaster Recovery Assistance, Benefits, and Data With Other Federal Agencies.—

(1)

Coordination of disaster recovery assistance.— In order to ensure a comprehensive approach to Federal disaster relief, long-term recovery, restoration of housing and infrastructure, economic revitalization, and mitigation in the most impacted and distressed areas resulting from a catastrophic major disaster, the Secretary shall coordinate with the Federal Emergency Management Agency, to the greatest extent practicable, in the implementation of assistance authorized under section 124 of the Housing and Community Development Act of 1974, as added by subsection (d).

(2)

Data sharing agreements.— To support the coordination of data to prevent duplication of benefits with other Federal disaster recovery programs while also expediting recovery and reducing burden on disaster survivors, the Department shall establish data sharing agreements that safeguard privacy with relevant Federal agencies to ensure disaster benefits effectively and efficiently reach intended beneficiaries, while using effective means of preventing harm to people and property.

(3)

Data transfer from fema and sba to hud.— As permitted and deemed necessary for efficient program execution, and consistent with a computer matching agreement entered into under paragraph (6)(A), the Administrator of the Federal Emergency Management Agency and the Administrator of the Small Business Administration shall provide data on disaster applicants to the Department, including, when necessary, personally identifiable information, disaster recovery needs, and resources determined eligible for, and amounts expended, to the Secretary for all major disasters declared by the President pursuant to section 401 of Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) for the purpose of providing additional assistance to disaster survivors and prevent duplication of benefits.

(4)

Data transfers from hud to hud grantees.— The Secretary is authorized to provide to grantees under section 124 of the Housing and Community Development Act of 1974, as added by subsection (d), offices of the Department, technical assistance providers, and lenders information that in the determination of the Secretary is reasonably available and appropriate to inform the provision of assistance after a major disaster, including information provided to the Secretary by the Administrator of the Federal Emergency Management Agency, the Administrator of the Small Business Administration, or other Federal agencies.

(5)

Data transfers from hud grantees to hud, fema, and sba.—

(A)

Reporting.— Grantees under section 124 of the Housing and Community Development Act of 1974, as added by subsection (d), shall report information requested by the Secretary on households, businesses, and other entities assisted and the type of assistance provided.

(B)

Sharing information.— The Secretary shall share information collected under subparagraph (A) with the Federal Emergency Management Agency, the Small Business Administration, and other Federal agencies to support the planning and delivery of disaster recovery and mitigation assistance and other related purposes.

(6)

Privacy protection.—

(A)

In general.— The Secretary may make and receive data transfers authorized under this subsection, including the use and retention of that data for computer matching programs, to inform the provision of assistance, assess disaster recovery needs, and prevent the duplication of benefits and other waste, fraud, and abuse, provided that—

(i)

the Secretary enters an information sharing agreement or a computer matching agreement, when required by section 522a of title 5, United States Code (commonly known as the “Privacy Act of 1974”), with the Administrator of the Federal Emergency Management Agency, the Administrator of the Small Business Administration, or other Federal agencies covering the transfer of data; and

(ii)

the Secretary publishes intent to disclose data in the Federal Register.

(B)

Data sharing agreement.— Notwithstanding clauses (i) and (ii) of subparagraph (A), section 552a of title 5, United States Code, or any other law, the Secretary is authorized to share data with an entity identified in paragraph (4), and the entity is authorized to use the data as described in this section, if the Secretary enters a data sharing agreement with the entity before sharing or receiving any information under transfers authorized by this section, which data sharing agreement shall—

(i)

in the determination of the Secretary, include measures adequate to safeguard the privacy and personally identifiable information of individuals; and

(ii)

include provisions that describe how the personally identifiable information of an individual will be adequately safeguarded and protected, which requires consultation with the Secretary and the head of each Federal agency the data of which is being shared subject to the agreement.

(g)

Sunset.— The program under section 124 of the Housing and Community Development Act of 1974, as added by subsection (d) shall terminate on the date that is 3 years after the date of enactment of this Act.

(h)

Sense of Congress.— It is the sense of Congress that, should Congress opt to appropriate funds for disaster recovery through a similar successor program following the sunset date, subsection (g) shall not preclude Congress from doing so.

(i)

Application.— Grants made under section 124 of the Housing and Community Development Act of 1974, as added by subsection (d), after the date of enactment of this Act shall be carried out using amounts appropriated after the date of enactment of this Act.

SEC. 505. New Moving to Work Cohort.

(a)

Definitions.— In this section:

(1)

Moving to work demonstration.— The term “Moving to Work demonstration” means the Moving to Work demonstration authorized under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).

(2)

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

(b)

Authorization of Additional Public Housing Agencies.—

(1)

In general.— After the completion of the initial report required under subsection (h)(2), the Secretary may add up to an additional 25 public housing agencies that are designated as high performing agencies under the Public Housing Assessment System or the Section 8 Management Assessment Program to participate in a new cohort as part of the Moving to Work demonstration.

(2)

Name.— The new cohort authorized under paragraph (1) shall be entitled the “Economic Opportunity and Pathways to Independence Cohort”.

(c)

Waiver Authority.—

(1)

In general.— Subject to this subsection, the authority of the Secretary to grant waivers to agencies admitted to the Moving to Work demonstration under this section or to designate policy changes as part of a cohort design under this section shall be limited to the Moving to Work waivers codified as of January 2025 in Appendix I of the document of the Department of Housing and Urban Development entitled “Operations Notice for the Expansion of the Moving to Work Demonstration Program” (FR–5994–N–05) published in the Federal Register on August 28, 2020, as amended by the notice entitled “Operations Notice for Expansion of the Moving to Work Demonstration Program Technical Revisions” (FR–5994–N–06) published in the Federal Register on March 20, 2025.

(2)

Modifications.— The Secretary may not waive the safe harbor requirements that apply to the Moving to Work waivers described in paragraph (1) or modify those waivers in any other way for the purposes of the new cohort under this section.

(3)

Exceptions.—

(A)

In general.— Under paragraph (1), the Secretary may not grant waiver 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q, 6, 7, 9a, 9h, or 12 in the document described in paragraph (1), including modifications of or safe harbor requirement waivers for such waivers.

(B)

Specific wavers.— If the Secretary grants waiver 10 or 11 in the document described in paragraph (1), resident participation in any program administered pursuant to those waivers shall be optional for purposes of the new cohort under this section.

(4)

Policy options.— In carrying out the Moving to Work demonstration cohort established under this section, the Secretary may consider policy options to provide opt-out savings or escrow accounts and report positive rental payments to consumer reporting agencies (as defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)) with resident consent.

(d)

Funding and Use of Funds.—

(1)

In general.— Public housing agencies in the cohort authorized under this section may expend not more than 5 percent of the amounts those public housing agencies receive in any fiscal year for housing assistance payments under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) for purposes other than such housing assistance payments.

(2)

Other uses.— Such other uses of amounts described in paragraph (1) shall comply with all other applicable requirements.

(3)

Formula.—

(A)

Renewal.— The amount of funding public housing agencies receive for renewal of housing assistance payments under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) shall be determined according to the same funding formula applicable to public housing agencies that do not participate in the Moving to Work demonstration, except that the Secretary shall provide public housing agencies funding to renew any funds expended under this subsection, with an adjustment for inflation.

(B)

Administrative fees.— The amount of funding public housing agencies receive for administrative fees under section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 1437f(q)), public housing operating subsidies under section 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)), and public housing capital funding under section 9(d) of the United States Housing Act of 1937 (42 U.S.C. 1437g(d)) shall be determined according to the same funding formula applicable to public housing agencies that do not participate in the Moving to Work demonstration.

(e)

Selection Requirements.— The Secretary shall select public housing agencies designated under this section through a competitive process, as determined by the Secretary, with the following parameters:

(1)

No public housing agency shall be granted this designation under this section that administers more than 27,000 aggregate housing vouchers and public housing units.

(2)

Of the public housing agencies selected under this section, not more than 12 shall administer 1,000 or fewer aggregate housing vouchers and public housing units, not more than 8 shall administer between 1,001 and 6,000 aggregate housing vouchers and public housing units, and not more than 5 shall administer between 6,001 and 27,000 aggregate housing vouchers and public housing units.

(3)

Selection of public housing agencies under this section shall be based on ensuring the geographic diversity of Moving to Work demonstration public housing agencies.

(4)

Within the requirements under paragraphs (1) through (3), the Secretary shall prioritize selecting public housing agencies that serve families with children and youth aging out of foster care at a rate above the national average.

(f)

Requirements for Selected Public Housing Agencies.— Consistent with section 204(c)(3) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note), public housing agencies selected for the Moving to Work demonstration under this section shall—

(1)

ensure that not less than 75 percent of the families assisted are very low-income families, as defined in section 3(b)(2)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(B));

(2)

establish a reasonable rent policy, which shall be designed to encourage employment and self-sufficiency by participating families, consistent with the purpose of the Moving to Work demonstration, such as by excluding some or all of a family’s earned income for purposes of determining rent;

(3)

continue to assist substantially the same total number of eligible low-income families as would have been served had the amounts not been combined;

(4)

maintain a comparable mix of families (by family size) as would have been provided had the amounts not been used under the Moving to Work demonstration; and

(5)

assure that housing assisted under the Moving to Work demonstration meets housing quality standards established or approved by the Secretary.

(g)

Noncompliance.—

(1)

In general.— If the Secretary finds that a public housing agency participating in the cohort authorized under this section is not in compliance with the requirements under this section, the Secretary shall make a determination of noncompliance.

(2)

Compliance.— Upon making a determination under paragraph (1), the Secretary shall develop a process to bring the public housing agency into compliance.

(3)

Removal.— If a public housing agency cannot be brought into compliance under the process developed under paragraph (2), the Secretary shall remove the participating public housing agency from the cohort and replace it with a similarly qualified public housing agency currently not in the cohort chosen in the manner described in subsection (e).

(4)

Notification.— Upon removing a public housing agency under paragraph (3), the Secretary shall immediately submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives—

(A)

a notification of the removal; and

(B)

a report on the active steps the Secretary is taking to replace the public housing agency with a new public housing agency.

(h)

Comprehensive Moving to Work Reporting and Oversight Requirements.—

(1)

Cohort research.—

(A)

In general.— The Secretary shall continue ongoing research investigations commenced as part of the assessment of the cohorts established under section 239 of the Department of Housing and Urban Development Appropriations Act, 2016 (42 U.S.C. 1437f note; Public Law 114–113), make public all products completed as part of those investigations, and keep such products online for at least 5 years.

(B)

Coordination.— The Secretary shall coordinate with the advisory committee established under section 239 of the Department of Housing and Urban Development Appropriations Act, 2016 (42 U.S.C. 1437f note; Public Law 114–113) to establish a research program to evaluate the outcomes and efficacy of the following for all Moving to Work demonstration agencies designated under the authority under such section and this section:

(i)

The waivers granted to each cohort and whether those waivers accomplish the goals of achieving greater cost effectiveness and administrative capacity, incentivizing families to become economically self-sufficient, and increasing housing choice.

(ii)

The additional flexibilities granted to individual public housing agencies under each cohort.

(iii)

How the flexibilities described in clause (ii) were used for local, non-traditional activities.

(2)

Comprehensive reporting requirement.— Not later than 180 days after the date of enactment of this Act, and annually thereafter, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains the following for each Moving to Work demonstration cohort under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note), section 239 of the Department of Housing and Urban Development Appropriations Act, 2016 (42 U.S.C. 1437f note; Public Law 114–113), and this section:

(A)

The annual administrative plans of each Moving to Work demonstration public housing agency.

(B)

Assessments of longitudinal data, including data on units, households, and outcomes, which shall be evaluated to compare changes in the following trends before and after Moving to Work demonstration designation:

(i)

Impacts on tenants based on the following, disaggregated by the public housing program and the housing choice voucher program:

(I)

Eviction rates.

(II)

Hardship policy usage.

(III)

Share of rent covered by a household.

(IV)

Turnover, including the number of household moves with or without continued assistance.

(V)

Reasons for exit from the program.

(VI)

The number and characteristics of households served, including households with a non-elderly family member with a disability, households with 3 or more minors, homelessness status at the time of admission, and average and median income as a percent of area median income.

(ii)

Impacts on public housing agency operations based on the following:

(I)

The number of units, broken down by type.

(II)

The size, including the number of bedrooms per unit, accessibility, affordability, and quality of units.

(III)

The length of each waitlist maintained and average wait times.

(IV)

Changes in capital backlog needs and surplus fund and reserve levels.

(V)

The number of public housing units undergoing a conversion under the rental assistance demonstration program authorized under the Department of Housing and Urban Development Appropriations Act, 2012 (Public Law 112–55; 125 Stat. 673) or demolition or disposition projects under section 18 of the United States Housing Act of 1937 (42 U.S.C. 1437p), including the number of units lost and the location of any replacement housing resulting from demolition or disposition.

(VI)

The share of project-based vouchers compared to tenant-based vouchers.

(VII)

The following annual housing choice voucher data:

(aa)

Voucher unit utilization rates.

(bb)

Voucher budget utilization rates.

(cc)

Annualized voucher success rate.

(dd)

Demographic composition of households issued vouchers compared to utilized vouchers.

(ee)

Average time to lease-up.

(ff)

Average cost per voucher.

(gg)

Average cost per landlord incentive.

(hh)

Ratio of the proportion of voucher households living in concentrated low-income areas to the proportion of renter-occupied units in concentrated low-income areas.

(ii)

Characteristics of census tracts where voucher recipients reside.

(VIII)

How the public housing agency met each of the statutory requirements in section 204(c)(3) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).

(iii)

Impacts on public housing staffing and capacity, including the average public housing agency operating, administrative, and housing assistance payment expenditures per household per month.

(C)

Legislative recommendations for flexibilities that could be expanded to all public housing agencies and how each flexibility enhances housing choice, affordability, and administrative capacity and efficiency for public housing agencies.

(3)

Public availability.—

(A)

In general.— The Secretary shall maintain all reports submitted pursuant to this section in a manner that is publicly available, accessible, and searchable on the website of the Department of Housing and Urban Development for not less than 5 years.

(B)

Other information.—

(i)

In general.— The Secretary shall make the annual plan of the Moving to Work demonstration, the Section 8 administrative plan, and the admission and continued occupancy policy for each year publicly available in 1 location on the website of the Department of Housing and Urban Development for not less than 5 years.

(ii)

Database.— The Secretary may establish a searchable database on the website of the Department of Housing and Urban Development to track the types of flexibilities into which Moving to Work demonstration public housing agencies have opted or for which a waiver was approved by the Secretary, disaggregated by the year such flexibilities were adopted or approved.

Lineage

Jul 11, 2026reading now Pub. L. 119–101 Enacted
Jul 11, 2026 H.R. 6644 · Enrolled Bill Congress
Jun 22, 2026 H.R. 6644 · Bill Text House
May 20, 2026 H.R. 6644 · Engrossed Amendment House House
Mar 12, 2026 H.R. 6644 · Engrossed Amendment Senate Senate
Feb 11, 2026 H.R. 6644 · Placed on Calendar Senate Senate Received
Feb 9, 2026 H.R. 6644 · Engrossed in House House
Dec 11, 2025 H.R. 6644 · Reported in House House Mr. Hill of Arkansas (for himself, Ms. Waters, Mr. Flood, and Mr. Cleaver) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
Dec 11, 2025 H.R. 6644 · Introduced in House House Mr. Hill of Arkansas (for himself, Ms. Waters, Mr. Flood, and Mr. Cleaver) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

Title V — Program Reform