119-hr2031

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2031 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2031

To reauthorize the HOME Investment Partnerships Program, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 11, 2025

 Mrs. Beatty (for herself, Ms. Ansari, Ms. Brown, Ms. Brownley, Mr. 
 Carbajal, Mr. Carson, Ms. Chu, Mr. Evans of Pennsylvania, Mr. Foster, 
 Ms. Garcia of Texas, Mr. Gomez, Ms. Norton, Ms. Omar, Mrs. Sykes, Ms. 
 Tlaib, Mr. Vargas, Ms. Velazquez, and Mrs. Watson Coleman) introduced 
 the following bill; which was referred to the Committee on Financial 
 Services

_______________________________________________________________________

 A BILL

To reauthorize the HOME Investment Partnerships Program, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``HOME Investment 
Partnerships Reauthorization and Improvement Act of 2025''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--REAUTHORIZATION OF AND REFORMS TO HOME INVESTMENT PARTNERSHIPS 
 PROGRAM

Sec. 101. Reauthorization of Program.

Sec. 102. Increase in Program administration resources.

Sec. 103. Modifications of participating jurisdiction qualification 
 threshold and process for reallocations.

Sec. 104. Modification of jurisdictions eligible for reallocations.
 TITLE II--REFORMS RELATING TO HOME INVESTMENT PARTNERSHIPS PROGRAM 
 ADMINISTRATION AND RULES

Sec. 201. Amendments to qualification as affordable housing.

Sec. 202. Elimination of commitment deadline.

Sec. 203. Reform of homeownership resale restrictions.

Sec. 204. Home property inspections.

Sec. 205. Revisions to strengthen enforcement and penalties for 
 noncompliance.

Sec. 206. Tenant and participant protections for small-scale affordable 
 housing.

Sec. 207. Establishment of home loan guarantee program.
 TITLE III--REFORMS RELATING TO COMMUNITY HOUSING DEVELOPMENT 
 ORGANIZATION AND NONPROFIT PARTICIPATION

Sec. 301. Modification of rules related to community housing 
 development organizations.
 TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Technical corrections.

TITLE I--REAUTHORIZATION OF AND REFORMS TO HOME INVESTMENT PARTNERSHIPS 
 PROGRAM

SEC. 101. REAUTHORIZATION OF PROGRAM.

 

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 APPROPRIATIONS.

 ``There are authorized to be appropriated to carry out this title--
 ``

    (1) $5,000,000,000 for fiscal year 2025;
 ``

    (2) $5,250,000,000 for fiscal year 2026;
 ``

    (3) $5,512,500,000 for fiscal year 2027;
 ``

    (4) $5,788,125,000 for fiscal year 2028; and
 ``

    (5) $6,077,531,250 for fiscal year 2029.''.

SEC. 102. INCREASE IN PROGRAM ADMINISTRATION RESOURCES.

 Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended--

    (1) in 

section 212
            (c) (42 U.S.C. 12742
            (c) ), by striking 
 ``10 percent'' and inserting ``15 percent''; and

    (2) in 

section 220

    (b) (42 U.S.C. 12750

    (b) )--
        (A) by striking ``Recognition.--'' and all that 
 follows through ``A contribution'' and inserting the 
 following: ``Recognition.--A contribution''; and
        (B) by striking paragraph

    (2) .

SEC. 103. MODIFICATIONS OF PARTICIPATING JURISDICTION QUALIFICATION 
 THRESHOLD AND PROCESS FOR REALLOCATIONS.

 

Section 216 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12746) is amended--

    (1) in paragraph

    (3)
        (A) --
        (A) by striking ``
        (A) Except as provided in 
 paragraph

    (10) , a jurisdiction'' and inserting the 
 following:
 ``
        (A) Eligibility threshold.--
 ``
            (i) In general.--Except as provided in 
 subparagraph
        (B) , a jurisdiction''; and
        (B) by striking ``or if the Secretary finds that'' 
 and all that follows through the end of clause
            (ii) and 
 inserting the following: ``subject to clause
            (ii) .
 ``
            (ii) Inflation adjustment to eligibility 
 threshold.--For each fiscal year after fiscal 
 year 2025, the Secretary shall adjust the 
 threshold amount in clause
            (i) for 
 inflation.'';

    (2) in paragraph

    (6) --
        (A) in the matter preceding subparagraph
        (A) , by 
 inserting ``this title, including the requirements in'' 
 after ``the requirements of''; and
        (B) by striking ``meet the requirements'' each 
 place that term appears and inserting ``meet or comply 
 with the requirements''; and

    (3) by striking paragraph

    (10) .

SEC. 104. MODIFICATION OF JURISDICTIONS ELIGIBLE FOR REALLOCATIONS.

 

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

    (3)
        (A) , 
 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) in paragraph

    (3) , by striking ``Limitation.--Unless 
 otherwise specified'' and inserting the following: 
 ``Limitations.--
 ``
        (A) Removal of participating jurisdictions from 
 reallocation.--The Secretary may remove a participating 
 jurisdiction that fails to meet or comply with the 
 requirements of this title from participation in 
 reallocations of funds made available under this title.
 ``
        (B) Reallocation to same type of entity.--Unless 
 otherwise specified''.

 TITLE II--REFORMS RELATING TO HOME INVESTMENT PARTNERSHIPS PROGRAM 
 ADMINISTRATION AND RULES

SEC. 201. AMENDMENTS TO QUALIFICATION AS AFFORDABLE HOUSING.

 

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

    (1) in subsection

    (a) --
        (A) in paragraph

    (1)
        (E) , by striking all that 
 follows ``purposes of this Act,'' and inserting the 
 following: ``except--
 ``
            (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 or owner that significantly impact 
 the financial or physical condition of the 
 housing, as determined by the Secretary; and''; 
 and
        (B) by adding at the end the following:
 ``

    (7) Small-scale housing.--
 ``
        (A) === Definition. ===
-In this paragraph, the term 
 `small-scale housing' means housing with not more than 
 4 rental units.
 ``
        (B) Alternative requirements.--Small-scale 
 housing shall qualify as affordable housing under this 
 title if--
 ``
            (i) the housing bears rents that comply 
 with paragraph

    (1)
        (A) ;
 ``
            (ii) each unit is occupied by a household 
 that qualifies as a low-income family;
 ``
            (iii) the housing is not 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 such voucher;
 ``
            (iv) the housing meets the requirements 
 under paragraph

    (1)
        (E) ; and
 ``
            (v) the participating jurisdiction 
 monitors ongoing compliance of the housing with 
 requirements of this title in a manner 
 consistent with the purposes of 

section 226

    (b) , 
 as determined by the Secretary.''; and

    (2) in subsection

    (b)

    (1) , by striking ``95 percent'' and 
 inserting ``110 percent or a percentage established by the 
 Secretary through notice, whichever is greater,''.

SEC. 202. ELIMINATION OF COMMITMENT DEADLINE.

    (a) In General.--

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) .

    (b) Conforming Amendment.--

Section 218
            (c) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12748
            (c) ) is amended--

    (1) in paragraph

    (1) , by adding ``and'' at the end;

    (2) by striking paragraph

    (2) ;

    (3) by redesignating paragraph

    (3) as paragraph

    (2) ; and

    (4) in paragraph

    (2) , as so redesignated, by striking 
 ``

section 224'' and inserting ``

section 223''.

SEC. 203. REFORM OF HOMEOWNERSHIP RESALE RESTRICTIONS.

 

Section 215 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745), as amended by 

section 201, 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) by striking paragraph

    (3) ;
            (C) by redesignating paragraphs

    (1) ,

    (2) , and

    (4) as subparagraphs
        (A) ,
        (B) , and
            (D) , respectively, and 
 adjusting the margins accordingly;
            (D) by inserting after subparagraph
        (B) , as so 
 redesignated, the following:
 ``
            (C) 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'';
        (E) by striking ``Housing that is for 
 homeownership'' and inserting the following:
 ``

    (1) Qualification.--Housing that is for homeownership''; 
 and
        (F) by adding at the end the following:
 ``

    (2) Purchase by community land trust.--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 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 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, subject to 
 enforcement by the participating 
 jurisdiction of all applicable 
 requirements of this subtitle, 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) .
 ``

    (3) Suspension or waiver of requirements for military 
 members.--A participating jurisdiction, in accordance with 
 terms established by the Secretary, may suspend or waive a 
 requirement under paragraph

    (1)
        (B) with respect to housing that 
 otherwise meets the criteria under paragraph

    (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
            (d) 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.
 ``

    (4) Suspension or waiver of requirements for heir or 
 beneficiary of deceased owner.--Notwithstanding subparagraph
            (C) of paragraph

    (1) , housing that meets the criteria under 
 that paragraph prior to the death of an owner may continue to 
 qualify as affordable housing 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.''.

SEC. 204. HOME PROPERTY INSPECTIONS.

 

Section 226

    (b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12756

    (b) ) is amended--

    (1) by striking ``Each participating jurisdiction'' and 
 inserting the following:
 ``

    (1) In general.--Each participating jurisdiction''; and

    (2) by striking ``Such review shall include'' and all that 
 follows and inserting the following:
 ``

    (2) On-site 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 on-site 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 on-site 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) .''.

SEC. 205. 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--

    (1) in the heading, by striking ``penalties for misuse of 
 funds'' and inserting ``program enforcement and penalties for 
 noncompliance'';

    (2) 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,'';

    (3) in paragraph

    (2) , by striking ``or'' at the end;

    (4) in paragraph

    (3) , by striking the period at the end and 
 inserting ``; or''; and

    (5) 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 which were not expended in accordance with this 
 title.''.

SEC. 206. TENANT AND PARTICIPANT PROTECTIONS FOR SMALL-SCALE 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) Tenant Selection for Small-Scale Housing.--Paragraphs

    (2) through

    (4) of subsection
            (d) shall not apply to the owner of small-
scale housing (as defined in 

section 215

    (a) ).''.

SEC. 207. ESTABLISHMENT OF HOME LOAN GUARANTEE PROGRAM.

 Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end 
the following:

``

SEC. 227. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS FOR ACQUISITION 
 OF PROPERTY.

 ``

    (a) Authority.--
 ``

    (1) In general.--The Secretary may, under such terms and 
 conditions as the Secretary may prescribe, guarantee and make 
 commitments to guarantee, only to such extent or in such 
 amounts as provided in appropriation Acts, the notes or 
 obligations issued by participating jurisdictions for the 
 purposes of financing the development or preservation of 
 affordable rental and homeownership housing through the 
 acquisition, new construction, reconstruction, or moderate or 
 substantial rehabilitation of affordable housing.
 ``

    (2) Eligible expenses.--When in support of the activities 
 described in paragraph

    (1) , the expenses for which the 
 Secretary may guarantee and make commitments to guarantee notes 
 or obligations under that paragraph include real property 
 acquisition, site improvement, conversion, demolition, and 
 other expenses, including financing costs and relocation 
 expenses of any displaced person, family, or business.
 ``

    (b) Limitations and Requirements.--
 ``

    (1) Eligibility.--A guarantee under this section may be 
 used to assist a participating jurisdiction in obtaining 
 financing only if the participating jurisdiction--
 ``
        (A) has made efforts to obtain such financing 
 without the use of the guarantee, as determined by the 
 Secretary; and
 ``
        (B) cannot complete such financing consistent 
 with the timely execution of the project plans without 
 the guarantee, as determined by the Secretary.
 ``

    (2) Form, denominations, maturities, and conditions.--
 Notes or other obligations guaranteed under this section shall 
 be in such form and denominations, have such maturities, and be 
 subject to such conditions as may be prescribed by regulations 
 issued by the Secretary.
 ``

    (3) Repayment period.--The Secretary may not deny a 
 guarantee under this section on the basis of the proposed 
 repayment period for the note or other obligation unless--
 ``
        (A) the period is more than 20 years; or
 ``
        (B) the Secretary determines that the period 
 causes the guarantee to constitute an unacceptable 
 financial risk.
 ``

    (4) Aggregate principal amount.--Notwithstanding any 
 other provision of law and subject only to the absence of 
 qualified applicants or proposed activities and to the 
 authority provided in this section, to the extent approved or 
 provided in appropriation Acts, the Secretary shall enter into 
 commitments to guarantee notes and obligations under this 
 section with an aggregate principal amount of not more than--
 ``
        (A) $2,000,000,000 for fiscal year 2025; and
 ``
        (B) for each subsequent fiscal year, an amount 
 that is increased for inflation as determined by the 
 Secretary.
 ``
            (c) Prerequisites.--The Secretary may not make a guarantee or 
commitment to guarantee with respect to any note or other obligation 
if--
 ``

    (1) the total outstanding notes or obligations of the 
 issuer guaranteed under this section would thereby exceed an 
 amount equal to 5 times the most recent allocation for the 
 issuer under this title; or
 ``

    (2) the Secretary determines that the guarantee 
 constitutes an unacceptable risk.
 ``
            (d) Payment of Principal, Interest, and Costs.--Notwithstanding 
any other provision of this Act, a participating jurisdiction allocated 
funds under this Act may use the funds (including program income 
derived therefrom) for the payment of principal and interest due 
(including such servicing, underwriting, or other costs as may be 
specified in regulations of the Secretary), and any associated fee to 
be paid in accordance with subsection

    (j) , on a note or other 
obligation guaranteed under this section.
 ``

    (e) Repayment Contract; Security; Pledge by Participating 
Jurisdiction.--To assure the repayment of a note or other obligation 
guaranteed under this section and related charges incurred under this 
section, and as a condition of receiving such a guarantee, the 
Secretary shall require the issuer of the note or other obligation to--
 ``

    (1) enter into a contract, in a form acceptable to the 
 Secretary, for repayment of the note or other obligation;
 ``

    (2) pledge as security the proceeds of any grant for 
 which the issuer may become eligible under this Act; and
 ``

    (3) furnish, at the discretion of the Secretary, such 
 other security as may be determined appropriate by the 
 Secretary in making the guarantee, including increments in 
 local tax receipts generated by the activities assisted under 
 this Act or proceeds from the sale of land or rehabilitated 
 property.
 ``

    (f) Pledged Grants for Repayments.--The Secretary may, 
notwithstanding any other provision of this Act, apply the proceeds of 
a grant pledged by a participating jurisdiction under subsection

    (e)

    (2) to any repayment due the United States as a result of the guarantee 
under this section of a note or other obligation issued by the 
participating jurisdiction.
 ``

    (g) Full Faith and Credit of United States; Conclusiveness and 
Validity of Guarantee.--
 ``

    (1) Full faith and credit of united states pledged for 
 payment.--The full faith and credit of the United States is 
 pledged to the payment of a note or other obligation guaranteed 
 under this section.
 ``

    (2) Conclusiveness and validity of guarantee.--
 ``
        (A) Conclusiveness.--A guarantee made by the 
 Secretary under this section shall be conclusive 
 evidence of the eligibility of the obligation for the 
 guarantee with respect to principal and interest.
 ``
        (B) Validity.--The validity of a guarantee made 
 by the Secretary under this section shall be 
 incontestable in the hands of a holder of the 
 guaranteed obligation.
 ``

    (3) Limitation on percentage.--A guarantee made under 
 this section shall guarantee repayment of 100 percent of the 
 unpaid principal and interest due on the notes or other 
 obligations guaranteed.
 ``

    (h) Limit on Outstanding Obligations; Monitoring Use of 
Guarantees.--
 ``

    (1) Limit on outstanding obligations.--The total amount 
 of outstanding obligations guaranteed on a cumulative basis by 
 the Secretary under this section may not at any time exceed the 
 greater of--
 ``
        (A) $4,500,000,000; or
 ``
        (B) such higher amount as may be authorized to be 
 appropriated to carry out this section for a fiscal 
 year.
 ``

    (2) Monitoring use of guarantees.--
 ``
        (A) In general.--The Secretary shall monitor the 
 use of guarantees under this section by participating 
 jurisdictions.
 ``
        (B) Actions to ensure sufficient authority.--If 
 the Secretary finds under subparagraph
        (A) that 50 
 percent of the aggregate guarantee authority under 
 paragraph

    (1) has been committed, the Secretary may--
 ``
            (i) provide that a unit of general local 
 government that receives a grant under 

section 211 may not receive more than $35,000,000 in 
 guarantees under this section; or
 ``
            (ii) submit to Congress a request for the 
 enactment of legislation increasing the amount 
 of the aggregate guarantee authority.
 ``
            (i) Purchase of Guaranteed Obligations by Federal Financing 
Bank.--The Federal Financing Bank may not purchase a note or other 
obligation guaranteed under this section.
 ``

    (j) Imposition of Fee or Charge.--The Secretary shall collect 
fees from borrowers to result in a credit subsidy cost of zero for 
guaranteeing notes or other obligations under this section.
 ``

    (k) Guarantee of Obligations Backed by Loans.--
 ``

    (1) Authority.--The Secretary may, upon such terms and 
 conditions as the Secretary considers appropriate, guarantee 
 the timely payment of the principal of and interest on such 
 trust certificates or other obligations as may be--
 ``
        (A) offered by the Secretary or by any other 
 offeror approved for purposes of this subsection by the 
 Secretary; and
 ``
        (B) based on and backed by a trust or pool 
 composed of notes or other obligations guaranteed or 
 eligible for guarantee by the Secretary under this 
 section.
 ``

    (2) Full faith and credit.--To the same extent as 
 provided in subsection

    (g) , the full faith and credit of the 
 United States is pledged to the payment of all amounts that may 
 be required to be paid under any guarantee made by the 
 Secretary under this subsection.
 ``

    (3) Subrogation.--If the Secretary pays a claim under a 
 guarantee made under this section, the Secretary shall be 
 subrogated for all the rights of the holder of the guaranteed 
 certificate or obligation with respect to the certificate or 
 obligation.
 ``

    (4) Effect of other laws.--No State or local law, and no 
 Federal law, shall preclude or limit the exercise by the 
 Secretary of--
 ``
        (A) the power to contract with respect to public 
 offerings and other sales of notes, trust certificates, 
 and other obligations guaranteed under this section 
 upon such terms and conditions as the Secretary 
 determines appropriate;
 ``
        (B) the right to enforce any contract described 
 in subparagraph
        (A) by any means determined appropriate 
 by the Secretary; or
 ``
            (C) any ownership rights of the Secretary, as 
 applicable, in notes, certificates, or other 
 obligations guaranteed under this section, or 
 constituting the trust or pool against which trust 
 certificates, or other obligations guaranteed under 
 this section, are offered.''.

 TITLE III--REFORMS RELATING TO COMMUNITY HOUSING DEVELOPMENT 
 ORGANIZATION AND NONPROFIT PARTICIPATION

SEC. 301. MODIFICATION OF RULES RELATED TO COMMUNITY HOUSING 
 DEVELOPMENT ORGANIZATIONS.

    (a) Definitions of Community Housing Development Organization and 
Community Land Trust.--

    (1) In general.--

Section 104 of the Cranston-Gonzalez 
 National Affordable Housing Act (42 U.S.C. 12704) is amended--
        (A) in paragraph

    (6)
        (B) --
            (i) by striking ``significant''; and
            (ii) by striking ``and otherwise'' and 
 inserting ``or as otherwise determined 
 acceptable by the Secretary''; and
        (B) by adding at the end the following:
 ``

    (26) The term `community land trust' means a nonprofit 
 entity or a State or local government or instrumentality 
 thereof that--
 ``
        (A) is not sponsored by a for-profit 
 organization;
 ``
        (B) has as a primary purpose the provision and 
 maintenance of housing that provides long-term 
 affordability for low- and moderate-income persons;
 ``
            (C) provides housing described in subparagraph
        (B) using a ground lease, deed covenant, or other 
 similar legally enforceable measure, as determined by 
 the Secretary, that--
 ``
            (i) keeps the housing affordable to low- 
 and moderate-income persons for not less than 
 30 years; and
 ``
            (ii) enables low- and moderate-income 
 persons to purchase the housing for 
 homeownership; and
 ``
            (D) maintains preemptive purchase options to 
 purchase the property so the housing remains affordable 
 to low-and moderate-income persons.''.

    (2) Elimination of existing definition of community land 
 trust.--

Section 233 of the Cranston-Gonzalez National 
 Affordable Housing Act (42 U.S.C. 12773) is amended by striking 
 subsection

    (f) .

    (b) Set-Aside for Community Housing Development Organizations.--

Section 231 of the Cranston-Gonzalez national Affordable Housing Act 
(42 U.S.C. 12771) is amended--

    (1) in subsection

    (a) , 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 such housing, as determined by the 
 Secretary'';

    (2) by striking subsection

    (b) and inserting the following:
 ``

    (b) Recapture and Reuse.--If any funds reserved under subsection

    (a) remain uninvested for a period of 24 months, then 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 the funds.''; and

    (3) by striking subsection
            (c) .

 TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. TECHNICAL CORRECTIONS.

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

    (1) 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) ;

    (2) in 

section 105

    (b) (42 U.S.C. 12705

    (b) )--
        (A) in paragraph

    (7) , by striking ``Stewart B. 
 McKinney Homeless Assistance Act'' and inserting 
 ``McKinney-Vento Homeless Assistance Act''; and
        (B) in paragraph

    (8) , by striking ``subparagraphs'' 
 and inserting ``paragraphs'';

    (3) in 

section 106 (42 U.S.C. 12706), by striking ``Stewart 
 B. McKinney Homeless Assistance Act'' and inserting ``McKinney-
 Vento Homeless Assistance Act'';

    (4) in 

section 108

    (a)

    (1) (42 U.S.C. 12708

    (a)

    (1) ), by 
 striking ``

section 105

    (b)

    (15) '' and inserting ``

section 105

    (b)

    (18) '';

    (5) in 

section 212 (42 U.S.C. 12742)--
        (A) in subsection

    (a) --
            (i) in paragraph

    (3)
        (A)
            (ii) , by inserting 
 ``United States'' before ``Housing Act''; and
            (ii) by redesignating paragraph

    (5) as 
 paragraph

    (4) ;
        (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'';

    (6) in 

section 215

    (a)

    (6)
        (B) (42 U.S.C. 20 12745

    (a)

    (6)
        (B) ), 
 by striking ``grand children'' and inserting ``grandchildren'';

    (7) 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) --
            (i) in paragraph

    (1) --
            (I) in the first sentence of 
 subparagraph
        (A) --

    (aa) by striking ``in 
 regulation'' and inserting ``, 
 by regulation,''; and

    (bb) by striking ``eligible 
 jurisdiction'' and inserting 
 ``eligible jurisdictions''; and
            (II) in subparagraph
        (F) --

    (aa) in the first 
 sentence--

    (AA) in clause
            (i) , 
 by striking 
 ``Subcommittee on 
 Housing and Urban 
 Affairs'' and inserting 
 ``Subcommittee on 
 Housing, 
 Transportation, and 
 Community 
 Development''; and

    (BB) 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''; 
 and

    (bb) in the second 
 sentence, by striking ``the 
 Committee on Banking, Finance 
 and Urban Affairs of the House 
 of Representatives'' and 
 inserting ``the Committee on 
 Financial Services of the House 
 of Representatives'';
            (ii) in paragraph

    (2)
        (B) , by striking 
 ``$500,000'' each place that term appears and 
 inserting ``$750,000'';
            (iii) in paragraph

    (3) --
            (I) by striking ``$500,000'' each 
 place that term appears and inserting 
 ``$750,000''; and
            (II) by striking ``, except as 
 provided in paragraph

    (4) ''; and
            (iv) by striking paragraph

    (4) ;

    (8) 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;

    (9) in 

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

    (10) in 

section 283 (42 U.S.C. 12833)--
        (A) in subsection

    (a) , by striking ``Banking, 
 Finance and Urban Affairs'' and inserting ``Financial 
 Services''; and
        (B) in subsection

    (b) , by striking ``General 
 Accounting Office'' each place that term appears and 
 inserting ``Government Accountability Office''.
 <all>