119-hr4856

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4856 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4856

 To improve the safety of, affordability of, and access to housing.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 August 1, 2025

 Mr. Lawler introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
 Ways and Means, Oversight and Government Reform, Energy and Commerce, 
 and 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

_______________________________________________________________________

 A BILL

 To improve the safety of, affordability of, and access to housing.

 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 ``Revitalizing 
America's Housing Act''.

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

Sec. 1. Short title; Table of contents.
 TITLE I--PROMOTING OPPORTUNITY AND INCREASING SUPPLY

Sec. 101. Identification of regulatory barriers to affordable housing 
 in HUD annual report.

Sec. 102. Qualifying ordinary income added to special rules for 
 investments in opportunity zones.

Sec. 103. Relieving strain from shortages of transformers.

Sec. 104. Incentivizing zoning reform.

Sec. 105. Decreasing the equity penalty and incentivizing more long-
 term owners to sell homes.
 TITLE II--INCREASING ACCESS TO HOUSING AND ADDRESSING COST

Sec. 201. Expanding workforce and volunteer housing.

Sec. 202. Supporting affordability and safety for public servants.

Sec. 203. Expanding programs supporting homeownership for those serving 
 the community.

Sec. 204. Improving volunteer first responder housing.

Sec. 205. Improving access to housing for veterans.

Sec. 206. Supporting veteran families in need.

Sec. 207. Attracting private investment to build and rehabilitate 
 owner-occupied homes.

Sec. 208. Better utilizing and disposing of unused military and 
 government lands for housing.

Sec. 209. Energy conservation standards for manufactured housing.

Sec. 210. Rental assistance demonstration program.

Sec. 211. Creating incentives for small dollar loan originators.

Sec. 212. Small dollar mortgage points and fees.

Sec. 213. Removing Outdated Regulation for Manufactured Housing.
 TITLE III--SERVING THE MOST VULNERABLE; HEALTH AND SAFETY

Sec. 301. GAO study to determine proximity of housing to Superfund 
 sites.

Sec. 302. Ensuring public housing agencies inspect each dwelling unit 
 each year.

Sec. 303. Incentivizing local solutions to homelessness.

Sec. 304. Improving mold and health standards.

Sec. 305. Improving Protection from Lead Hazards.

Sec. 306. Improving housing for the elderly and disabled.
 TITLE IV--GOOD GOVERNANCE

Sec. 401. Requiring annual testimony and oversight from housing 
 regulators.

Sec. 402. Requiring annual testimony and oversight for government 
 guaranteed or insured mortgage programs.

Sec. 403. Testimony and report from United States Interagency Council 
 on Homelessness.

Sec. 404. Report detailing NYCHA compliance with and HUD oversight of 
 2019 agreement.

Sec. 405. FHA reporting requirements on safety and soundness.

Sec. 406. Combatting squatting.

Sec. 407. Reallocation of voucher funding.
 TITLE V--REGULATORY FLEXIBILITY

Sec. 501. Authorization of Moving to Work Program.

Sec. 502. Rescission of Public and Indian Housing Notice 2021-18.
 TITLE VI--IMPROVING FINANCIAL LITERACY REGARDING HOUSING

Sec. 601. Reforms to housing counseling and financial literacy 
 programs.

 TITLE I--PROMOTING OPPORTUNITY AND INCREASING SUPPLY

SEC. 101. IDENTIFICATION OF REGULATORY BARRIERS TO AFFORDABLE HOUSING 
 IN HUD ANNUAL REPORT.

 

Section 8 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3536) is amended by adding at the end the following: ``Each 
such annual report shall include an identification of significant 
regulatory barriers to affordable housing, within the meaning of such 
term as provided in the first sentence of 

section 1203 of the Housing 
and Community Development Act of 1992 (42 U.S.C. 12705b), and a 
discussion and analysis of how to reduce or remove such barriers.''.

SEC. 102. QUALIFYING ORDINARY INCOME ADDED TO SPECIAL RULES FOR 
 INVESTMENTS IN OPPORTUNITY ZONES.

    (a) In General.--

Section 1400Z-2 of the Internal Revenue Code of 
1986 is amended--

    (1) in the section heading, by striking ``capital gains 
 invested'' and inserting ``investments'',

    (2) in subsection

    (a) --
        (A) in paragraph

    (1) --
            (i) in the heading, by inserting 
 ``qualifying ordinary income and'' after 
 ``of'',
            (ii) by inserting ``qualifying ordinary 
 income and'' after ``case of'',
            (iii) by amending subparagraph
        (A) to read 
 as follows:
 ``
        (A) gross income for the taxable year shall not 
 include--
 ``
            (i) so much of such gain as does not 
 exceed the aggregate amount invested by the 
 taxpayer in a qualified opportunity fund during 
 the 180-day period beginning on the date of 
 such sale or exchange, and
 ``
            (ii) so much of such qualifying ordinary 
 income as does not exceed the aggregate amount 
 invested by the taxpayer in a qualified 
 opportunity fund during such taxable year,'', 
 and
            (iv) in subparagraph
        (B) , by inserting 
 ``qualifying ordinary income and'' after 
 ``amount of'',
        (B) in paragraph

    (2) --
            (i) in subparagraph
        (A) , by striking ``or'' 
 at the end,
            (ii) in subparagraph
        (B) , by striking the 
 period at the end and inserting ``, or'', and
            (iii) by adding at the end the following:
 ``
            (C) with respect to qualified ordinary income 
 received in a taxable year beginning after December 31, 
 2026.'', and
            (C) by adding at the end the following:
 ``

    (3) Qualifying ordinary income defined.--In this 
 subsection, the term `qualifying ordinary income' means 
 ordinary income other than income attributable to capital 
 gains.'',

    (3) in subsection

    (b) --
        (A) in the subsection heading, by inserting 
 ``Qualifying Ordinary Income and'' after ``Deferral 
 of'',
        (B) in paragraph

    (1) , by striking ``Gain'' and 
 inserting ``Qualifying ordinary income and gain'', and
            (C) in paragraph

    (2) --
            (i) in subparagraph
        (A) --
            (I) by inserting ``qualifying 
 ordinary income and'' after ``amount 
 of'', and
            (II) in clause
            (i) , by striking 
 ``of gain'', and
            (ii) in subparagraph
        (B) --
            (I) in the clause
            (ii) heading, by 
 striking ``gain'' and inserting 
 ``amount'', and
            (II) by striking ``the amount of 
 gain'' each place it appears and 
 inserting ``the amount'', and

    (4) in subsection

    (e)

    (1) , by inserting ``qualifying 
 ordinary income and'' after ``investments of''.

    (b) Effective Date.--The amendments made by this section shall 
apply to amounts invested after the date of the enactment of this Act.

SEC. 103. RELIEVING STRAIN FROM SHORTAGES OF TRANSFORMERS.

 

Section 321

    (35) of the Energy Policy and Conservation Act (42 
U.S.C. 6291

    (35) ) is amended by adding at the end the following:
 ``
            (C) Efficiency level.--The Secretary shall not 
 finalize any rule under which the efficiency level of a 
 liquid-immersed type, low voltage dry type, or medium 
 voltage dry type distribution transformer is greater 
 than trial standard level 2 (as described in table V.1 
 in the proposed rule entitled `Energy Conservation 
 Program: Energy Conservation Standards for Distribution 
 Transformers' (88 Fed. Reg. 1722 (January 11, 2023))).
 ``
            (D) Effective date for certain rules.--Any rule 
 finalized by the Secretary under which the efficiency 
 level of a liquid-immersed type, low voltage dry type, 
 or medium voltage dry-type distribution transformer is 
 trial standard level 1 or 2 (as described in table V.1 
 in the proposed rule entitled `Energy Conservation 
 Program: Energy Conservation Standards for Distribution 
 Transformers' (88 Fed. Reg. 1722 (January 11, 2023))) 
 shall not take effect until 10 years after the date on 
 which the rule is finalized.''.

SEC. 104. INCENTIVIZING ZONING REFORM.

    (a) 

=== Purpose ===
-The purpose of this section is to discourage the use 
of discriminatory land use policies and remove barriers to making 
housing more affordable in order to further the original intent of the 
Community Development Block Grant program.

    (b) Land Use Plan.--

    (1) In general.--

Section 104 of the Housing and Community 
 Development Act of 1974 (42 U.S.C. 5304) is amended by adding 
 at the end the following:
 ``

    (n) Plan To Track Discriminatory Land Use Policies.--
 ``

    (1) In general.--Prior to receipt in any fiscal year of a 
 grant from the Secretary under subsection

    (b) ,
            (d) (1) , or
            (d) (2)
        (B) of 

section 106, each recipient shall have prepared 
 and submitted, not less frequently than once during the 
 preceding 5-year period, in accordance with this subsection and 
 in such standardized form as the Secretary shall, by 
 regulation, prescribe, with respect to each land use policy 
 described in paragraph

    (2) that is applicable to the 
 jurisdiction served by the recipient, a description of--
 ``
        (A) whether the recipient has already adopted the 
 policy in the jurisdiction served by the recipient;
 ``
        (B) the plan of the recipient to implement the 
 policy in that jurisdiction; or
 ``
            (C) the ways in which adopting the policy will 
 benefit the jurisdiction.
 ``

    (2) Land use policies.--The policies described in this 
 paragraph are as follows:
 ``
        (A) Enacting high-density single-family and 
 multifamily zoning.
 ``
        (B) Expanding by-right multifamily zoned areas.
 ``
            (C) Allowing duplexes, triplexes, or fourplexes 
 in areas zoned primarily for single-family residential 
 homes.
 ``
            (D) Allowing manufactured homes in areas zoned 
 primarily for single-family residential homes.
 ``
        (E) Allowing multifamily development in retail, 
 office, and light manufacturing zones.
 ``
        (F) Allowing single-room occupancy development 
 wherever multifamily housing is allowed.
 ``
        (G) Reducing minimum lot size.
 ``
        (H) Ensuring historic preservation requirements 
 and other land use policies or requirements are 
 coordinated to encourage creation of housing in 
 historic buildings and historic districts.
 ``
            (I) Increasing the allowable floor area ratio in 
 multifamily housing areas.
 ``
        (J) Creating transit-oriented development zones.
 ``
        (K) Streamlining or shortening permitting 
 processes and timelines, including through one-stop and 
 parallel-process permitting.
 ``
            (L) Eliminating or reducing off-street parking 
 requirements.
 ``
            (M) Ensuring impact and utility investment fees 
 accurately reflect required infrastructure needs and 
 related impacts on housing affordability are otherwise 
 mitigated.
 ``
        (N) Allowing prefabricated construction.
 ``
        (O) Reducing or eliminating minimum unit square 
 footage requirements.
 ``
        (P) Allowing the conversion of office units to 
 apartments.
 ``
        (Q) Allowing the subdivision of single-family 
 homes into duplexes.
 ``
        (R) Allowing accessory dwelling units, including 
 detached accessory dwelling units, on all lots with 
 single-family homes.
 ``
        (S) Establishing density bonuses.
 ``
        (T) Eliminating or relaxing residential property 
 height limitations.
 ``
        (U) Using property tax abatements to enable 
 higher density and mixed-income communities.
 ``
            (V) Donating vacant land for affordable housing 
 development.
 ``

    (3) Effect of submission.--A submission under this 
 subsection shall not be binding with respect to the use or 
 distribution of amounts received under 

section 106.
 ``

    (4) Acceptance or nonacceptance of plan.--The acceptance 
 or nonacceptance of any plan submitted under this subsection in 
 which the information required under this subsection is 
 provided is not an endorsement or approval of the plan, 
 policies, or methodologies, or lack thereof.''.

    (2) Effective date.--The requirements under subsection

    (n) of 

section 104 of the Housing and Community Development Act of 
 1974 (42 U.S.C. 5304), as added by paragraph

    (1) , shall--
        (A) take effect on the date that is 1 year after 
 the date of enactment of this Act; and
        (B) apply to recipients of a grant under subsection

    (b) ,
            (d) (1) , or
            (d) (2)
        (B) of 

section 106 of the Housing 
 and Community Development Act of 1974 (42 U.S.C. 5306) 
 before, on, and after such date.

SEC. 105. DECREASING THE EQUITY PENALTY AND INCENTIVIZING MORE LONG-
 TERM OWNERS TO SELL HOMES.

    (a) Increase of Exclusion of Gain From Sale of Principal 
Residence.--

Section 121

    (b) of the Internal Revenue Code of 1986 is 
amended--

    (1) by striking ``$250,000'' and inserting ``$500,000'' 
 each place it appears,

    (2) by striking ``500,000'' and inserting ``$1,000,000'' 
 each place it appears,

    (3) in paragraph

    (2)
        (A) , in the heading, by striking 
 ``$500,000'' and inserting ``$1,000,000'', and

    (4) by adding at the end the following new paragraph:
 ``

    (5) Adjustment for inflation.--In the case of a taxable 
 year beginning after 2024, the $500,000 and $1,000,000 amounts 
 in paragraphs

    (1) ,

    (2) , and

    (4) shall be increased by an amount 
 equal to--
 ``
        (A) such dollar amount, multiplied by
 ``
        (B) the cost-of-living adjustment determined 
 under 

section 1

    (f)

    (3) for the calendar year in which 
 the taxable year begins, determined by substituting 
 `2023' for `2016' in subparagraph
        (A)
            (ii) thereof.
 If any increase under this clause is not a multiple of $100, 
 such increase shall be rounded to the next lowest multiple of 
 $100.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act.

 TITLE II--INCREASING ACCESS TO HOUSING AND ADDRESSING COST

SEC. 201. EXPANDING WORKFORCE AND VOLUNTEER HOUSING.

    (a) Congressional 

=== Findings ===
-The Congress finds that--

    (1) the lack of affordable housing in the United States is 
 an issue impacting millions of middle-class, working American 
 families;

    (2) many of these families earn more annually than the 
 income limits for certain Federal housing financing and 
 benefits; and

    (3) these families are often excluded from living in 
 neighborhoods near their places of work, schools, shopping, and 
 healthcare due to a lack of affordability.

    (b) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Comptroller General of the United States 
shall submit to the Congress a report that--

    (1) identifies issues with housing affordability for 
 America's middle-income homeowners and renters, including 
 identifying geographically where housing is the most 
 unaffordable for these populations;

    (2) identifies Federal housing programs, including Federal 
 tax credits, grants, credit programs, and other programs that 
 currently benefit lower-income households, which are not 
 available to middle-income households;

    (3) identifies any gaps in the inclusion of middle-income 
 households in Federal housing programs designed to promote 
 affordability;

    (4) sets forth recommendations for a definition of 
 ``workforce housing'' based on income parameters in order to 
 assist Federal agencies in including middle-income households 
 under existing Federal programs; and

    (5) analyzes how such a definition could relate to 
 incentives for workforce housing development through Federal 
 programs, policies, and other initiatives.

SEC. 202. SUPPORTING AFFORDABILITY AND SAFETY FOR PUBLIC SERVANTS.

 

Section 3

    (a) of the United States Housing Act of 1937 (42 U.S.C. 
1437a

    (a) ) is amended--

    (1) in paragraph

    (1) , by striking ``Except as provided in 
 paragraph

    (2) '' and inserting ``Except as provided in 
 paragraphs

    (2) and

    (4) ''; and

    (2) in paragraph

    (4) --
        (A) in the heading, by striking ``Occupancy by 
 police officers'' and inserting, ``Occupancy by police 
 officers, firefighters, and emergency medical 
 technicians'';
        (B) by redesignating subparagraph
            (C) as 
 subparagraph
            (D) ;
            (C) by inserting after subparagraph
        (B) the 
 following:
 ``
            (C) Rental payments.--Notwithstanding paragraph

    (1) , a family of which one or more members are a police 
 officer, firefighter, or emergency medical technician 
 shall pay as rent for a dwelling unit assisted under 
 this Act the highest of the following amounts, rounded 
 to the nearest dollar:
 ``
            (i) 15 per centum of the family's monthly 
 adjusted income; or
 ``
            (ii) 5 per centum of the family's monthly 
 income''; and
            (D) by amending subparagraph
            (D) , as so 
 redesignated, to read as follows:
 ``
            (D) === Definitions. ===
-In this paragraph:
 ``
            (i) Police officer.--The term `police 
 officer' means any person determined by a 
 public housing agency to be, during the period 
 of residence of that person in public housing, 
 employed on a full-time basis as a duly 
 licensed professional police officer by a 
 Federal, State, or local government or by any 
 agency thereof (including a public housing 
 agency having an accredited police force).
 ``
            (ii) Firefighter.--The term `firefighter' 
 means any person determined by a public housing 
 agency to be, during the period of residence of 
 that person in public housing, employed on a 
 full-time basis as a firefighter by a fire 
 department or emergency medical services 
 responder unit of the Federal Government, a 
 State, unit of general local government, or an 
 Indian tribal government.
 ``
            (iii) Emergency medical technician.--The 
 term `emergency medical technician' means any 
 person determined by a public housing agency to 
 be, during the period of residence of that 
 person in public housing, employed on a full-
 time basis as an emergency medical technician 
 by a fire department or emergency medical 
 services responder unit of the Federal 
 Government, a State, unit of general local 
 government, or an Indian tribal government.''.

SEC. 203. EXPANDING PROGRAMS SUPPORTING HOMEOWNERSHIP FOR THOSE SERVING 
 THE COMMUNITY.

    (a) Eligibility for Good Neighbors Next Door Sales Program.--
Members of the Armed Forces, firefighters, and law enforcement officers 
shall be eligible to purchase eligible properties under the Good 
Neighbor Next Door Sales Program of the Secretary of Housing and Urban 
Development, as provided under subsection

    (b) .

    (b) Eligible Properties.--Notwithstanding 

section 204 of the 
National Housing Act (12 U.S.C. 1710), part 291 of the regulations of 
the Secretary of Housing and Urban Development (24 C.F.R. part 291), or 
any other provision of law, regulation, guideline, order, or notice, in 
carrying out the Good Neighbor Next Door Sales Program for single-unit 
properties acquired by the Secretary, properties shall be made 
available for purchase under the Program by members of the Armed 
Forces, by firefighters, and by law enforcement officers without regard 
to whether or not they are located in a revitalization area.
            (c) Regulations.--The Secretary of Housing and Urban Development 
shall amend the regulations of the Secretary as necessary to carry out 
subsections

    (a) and

    (b) .

SEC. 204. IMPROVING VOLUNTEER FIRST RESPONDER HOUSING.

    (a) 

=== Definitions. ===
-In this section:

    (1) Bona fide volunteer; eligible employer; qualified 
 services.--The terms ``bona fide volunteer'', ``eligible 
 employer'', and ``qualified services'' have the meanings given 
 those terms in 

section 457

    (e) of the Internal Revenue Code of 
 1986.

    (2) Indian tribe.--The term ``Indian Tribe'' has the 
 meaning given the term ``Indian tribe'' in 

section 501

    (b) of 
 the Housing Act of 1949 (42 U.S.C. 1471

    (b) ).

    (3) Qualified volunteer first responder.--The term 
 ``qualified volunteer first responder'' means any individual 
 who--
        (A) is a bona fide volunteer performing qualified 
 services for an eligible employer;
        (B) continuously served as a volunteer for the 
 eligible employer during the 2-year period preceding 
 the date on which the individual submits a verification 
 letter under 

section 3

    (b) or 4

    (b) ;
            (C) during each of the 2 years described in 
 subparagraph
        (B) --
            (i) met the minimum requirements for active 
 membership established by the eligible 
 employer; or
            (ii) if the eligible employer did not 
 establish minimum requirements, volunteered for 
 not less than 200 hours; and
            (D) is certified as a firefighter or other first 
 responder in the State, political subdivision of a 
 State, or jurisdiction of an Indian Tribe in which the 
 individual is serving as volunteer.

    (b) Department of Agriculture Single Family Housing Guaranteed Loan 
Program.--

    (1) In general.--A qualified volunteer first responder who 
 submits to the Secretary of Agriculture (referred to in this 
 subsection as the ``Secretary'') a verification letter in 
 accordance with paragraph

    (2) shall be eligible for a deduction 
 in annual income under 

section 3555.152
            (c) of title 7, Code of 
 Federal Regulations (or any successor regulation), in the 
 amount of $18,000.

    (2) Verification letter.--To be eligible for a deduction 
 under paragraph

    (1) , a qualified volunteer first responder 
 shall submit to the Secretary a verification letter from the 
 head of the eligible employer for which the qualified volunteer 
 first responder volunteers, which shall--
        (A) include the date on which the qualified 
 volunteer first responder joined the eligible employer 
 as a volunteer;
        (B) attest to the Secretary that the qualified 
 volunteer first responder meets the requirements under 
 subparagraphs
        (B) and
            (C) of subsection

    (a)

    (3) ; and
            (C) include a copy of the certification described 
 in subsection

    (a)

    (3)
            (D) .
            (c) Good Neighbor Next Door Sales Program and Similar Programs.--

    (1) Eligibility.--A qualified volunteer first responder who 
 submits to the Secretary of Housing and Urban Development 
 (referred to in this section as the ``Secretary'') a 
 verification letter in accordance with paragraph

    (2) shall 
 qualify as a firefighter or emergency medical technician for 
 purposes of any single family property disposition program 
 carried out by the Secretary by regulation under 

section 204

    (g) of the National Housing Act (12 U.S.C. 1710

    (g) ) that offers 
 discounted home prices to firefighters or emergency medical 
 technicians.

    (2) Verification letter.--To qualify to purchase a home 
 under a single family property disposition program referred to 
 in paragraph

    (1) , a qualified first responder shall submit to 
 the Secretary a verification letter from the head of the 
 eligible employer for which the qualified volunteer first 
 responder volunteers, which shall--
        (A) include the date on which the qualified 
 volunteer first responder joined the eligible employer 
 as a volunteer;
        (B) attest to the Secretary that the qualified 
 volunteer first responder meets the requirements under 
 subparagraphs
        (B) and
            (C) of subsection

    (a)

    (3) ;
            (C) include a copy of the certification described 
 in subsection

    (a)

    (3)
            (D) ; and
            (D) include a certification from the qualified 
 volunteer first responder of the responder's good faith 
 intention to continue serving as a volunteer for the 
 eligible employer for not less than 1 year following 
 the date of closing.

SEC. 205. IMPROVING ACCESS TO HOUSING FOR VETERANS.

    (a) Service Connected Disability Compensation.--

Section 102

    (a)

    (20) of the Housing and Community Development Act of 1974 (42 U.S.C. 
5302

    (a)

    (20) ) is amended by adding at the end the following:
 ``
            (C) Service-connected disability compensation.--
 When determining whether a person is of a person of low 
 and moderate income, a person of low income, or a 
 person of moderate income under this paragraph, a 
 State, unit of general local government, or Indian 
 tribe shall exclude any service-connected disability 
 compensation received by such person from the 
 Department of Veterans Affairs.''.

    (b) Report.--The Comptroller General of the United States shall, 
not later than 1 year after the date of the enactment of this Act, 
submit to the Congress a report that--

    (1) examines how service-connected disability compensation 
 is treated for the purposes of determining eligibility for all 
 programs administered by the Secretary of Housing and Urban 
 Development and identifies any cases where service-connected 
 disability compensation is treated inconsistently across a 
 program; and

    (2) with respect to each program administered by the 
 Secretary of Housing and Urban Development, provides 
 legislative recommendations relating to how such program could 
 better serve veteran populations, and under-served communities.

SEC. 206. SUPPORTING VETERAN FAMILIES IN NEED.

 

Section 2044

    (e) of title 38, United States Code, is amended--

    (1) by redesignating subparagraphs
        (A) through
        (H) as 
 paragraphs

    (1) through

    (8) , respectively; and

    (2) by adding at the end the following new paragraph:
 ``

    (9) The amounts that are appropriated to carry out such 
 subsections for fiscal year 2026 and each fiscal year 
 thereafter.''.

SEC. 207. ATTRACTING PRIVATE INVESTMENT TO BUILD AND REHABILITATE 
 OWNER-OCCUPIED HOMES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 

section 42 the following new section:

``

SEC. 42A. NEIGHBORHOOD HOMES CREDIT.

 ``

    (a) Allowance of Credit.--For purposes of 

section 38, the 
neighborhood homes credit determined under this section for the taxable 
year is, with respect to each qualified residence sold by the taxpayer 
during such taxable year in an affordable sale, the lesser of--
 ``

    (1) an amount equal to--
 ``
        (A) the excess (if any) of--
 ``
            (i) the reasonable development costs paid 
 or incurred by the taxpayer with respect to 
 such qualified residence, over
 ``
            (ii) the sale price of such qualified 
 residence (reduced by any reasonable expenses 
 paid or incurred by the taxpayer in connection 
 with such sale), or
 ``
        (B) if the neighborhood homes credit agency 
 determines it is necessary to ensure financial 
 feasibility, an amount not to exceed 120 percent of the 
 amount under subparagraph
        (A) ,
 ``

    (2) 35 percent of the eligible development costs paid or 
 incurred by the taxpayer with respect to such qualified 
 residence, or
 ``

    (3) 28 percent of the national median sale price for new 
 homes (as determined pursuant to the most recent census data 
 available as of the date on which the neighborhood homes credit 
 agency makes an allocation for the qualified project).
 ``

    (b) Development Costs.--For purposes of this section--
 ``

    (1) Reasonable development costs.--
 ``
        (A) In general.--The term `reasonable development 
 costs' means amounts paid or incurred for the 
 acquisition of buildings and land, construction, 
 substantial rehabilitation, demolition of structures, 
 or environmental remediation, to the extent that the 
 neighborhood homes credit agency determines that such 
 amounts meet the standards specified pursuant to 
 subsection

    (f)

    (1)
            (C) (as of the date on which 
 construction or substantial rehabilitation is 
 substantially complete, as determined by such agency) 
 and are necessary to ensure the financial feasibility 
 of such qualified residence.
 ``
        (B) Considerations in making determination.--In 
 making the determination under subparagraph
        (A) , the 
 neighborhood homes credit agency shall consider--
 ``
            (i) the sources and uses of funds and the 
 total financing,
 ``
            (ii) any proceeds or receipts generated 
 or expected to be generated by reason of tax 
 benefits, and
 ``
            (iii) the reasonableness of the 
 developmental costs and fees.
 ``

    (2) Eligible development costs.--The term `eligible 
 development costs' means the amount which would be reasonable 
 development costs if the amounts taken into account as paid or 
 incurred for the acquisition of buildings and land did not 
 exceed 75 percent of such costs determined without regard to 
 any amount paid or incurred for the acquisition of buildings 
 and land.
 ``

    (3) Substantial rehabilitation.--The term `substantial 
 rehabilitation' means amounts paid or incurred for 
 rehabilitation of a qualified residence if such amounts exceed 
 the greater of--
 ``
        (A) $20,000, or
 ``
        (B) 20 percent of the amounts paid or incurred by 
 the taxpayer for the acquisition of buildings and land 
 with respect to such qualified residence.
 ``

    (4) Construction and rehabilitation only after allocation 
 taken into account.--
 ``
        (A) In general.--The terms `reasonable 
 development costs' and `eligible development costs' 
 shall not include any amount paid or incurred before 
 the date on which an allocation is made to the taxpayer 
 under subsection

    (e) with respect to the qualified 
 project of which the qualified residence is part unless 
 such amount is paid or incurred for the acquisition of 
 buildings or land.
 ``
        (B) Land and building acquisition costs.--Amounts 
 paid or incurred for the acquisition of buildings or 
 land shall be included under paragraph
        (A) only if paid 
 or incurred not more than 3 years before the date on 
 which the allocation referred to in subparagraph
        (A) is 
 made. If the taxpayer acquired any building or land 
 from an entity (or any related party to such entity) 
 that holds an ownership interest in the taxpayer, then 
 such entity must also have acquired such property 
 within such 3-year period, and the acquisition cost 
 included under subparagraph
        (A) with respect to the 
 taxpayer shall not exceed the amount such entity paid 
 or incurred to acquire such property.
 ``
            (c) Qualified Residence.--For purposes of this section--
 ``

    (1) In general.--The term `qualified residence' means a 
 residence that--
 ``
        (A) is real property affixed on a permanent 
 foundation,
 ``
        (B) is--
 ``
            (i) a house which is comprised of 4 or 
 fewer residential units,
 ``
            (ii) a condominium unit, or
 ``
            (iii) a house or an apartment owned by a 
 cooperative housing corporation (as defined in 
 

section 216

    (b) ),
 ``
            (C) is part of a qualified project with respect 
 to which the neighborhood homes credit agency has made 
 an allocation under subsection

    (e) , and
 ``
            (D) is located in a qualified census tract 
 (determined as of the date of such allocation).
 ``

    (2) Qualified census tract.--
 ``
        (A) In general.--The term `qualified census 
 tract' means a census tract--
 ``
            (i) which--
 ``
            (I) has a median family income 
 which does not exceed 80 percent of the 
 median family income for the applicable 
 area,
 ``
            (II) has a poverty rate that is 
 not less than 130 percent of the 
 poverty rate of the applicable area, 
 and
 ``
            (III) has a median value for 
 owner-occupied homes that does not 
 exceed the median value for owner-
 occupied homes in the applicable area,
 ``
            (ii) which--
 ``
            (I) is located in a city which 
 has a population of not less than 
 50,000 and such city has a poverty rate 
 that is not less than 150 percent of 
 the poverty rate of the applicable 
 area,
 ``
            (II) has a median family income 
 which does not exceed the median family 
 income for the applicable area, and
 ``
            (III) has a median value for 
 owner-occupied homes that does not 
 exceed 80 percent of the median value 
 for owner-occupied homes in the 
 applicable area,
 ``
            (iii) which--
 ``
            (I) is located in a 
 nonmetropolitan county,
 ``
            (II) has a median family income 
 which does not exceed the median family 
 income for the applicable area, and
 ``
            (III) has been designated by a 
 neighborhood homes credit agency under 
 this clause, or
 ``
            (iv) which is not otherwise a qualified 
 census tract and is located in a disaster area 
 (as defined in 

section 7508A
            (d) (3) ), but only 
 with respect to credits allocated in any period 
 during which the President of the United States 
 has determined that such area warrants 
 individual or individual and public assistance 
 by the Federal Government under the Robert T. 
 Stafford Disaster Relief and Emergency 
 Assistance Act.
 ``
        (B) Applicable area.--The term `applicable area' 
 means--
 ``
            (i) in the case of a metropolitan census 
 tract, the metropolitan area in which such 
 census tract is located, and
 ``
            (ii) in the case of a census tract other 
 than a census tract described in clause
            (i) , 
 the State.
 ``
            (d) Affordable Sale.--For purposes of this section--
 ``

    (1) In general.--The term `affordable sale' means a sale 
 to a qualified homeowner of a qualified residence that the 
 neighborhood homes credit agency certifies as meeting the 
 standards promulgated under subsection

    (f)

    (1)
            (D) for a price 
 that does not exceed--
 ``
        (A) in the case of any qualified residence not 
 described in subparagraph
        (B) ,
            (C) , or
            (D) , the amount 
 equal to the product of 4 multiplied by the median 
 family income for the applicable area (as determined 
 pursuant to the most recent census data available as of 
 the date of the contract for such sale),
 ``
        (B) in the case of a house comprised of 2 
 residential units, 125 percent of the amount described 
 in subparagraph
        (A) ,
 ``
            (C) in the case of a house comprised of 3 
 residential units, 150 percent of the amount described 
 in subparagraph
        (A) , or
 ``
            (D) in the case of a house comprised of 4 
 residential units, 175 percent of the amount described 
 in subparagraph
        (A) .
 ``

    (2) Qualified homeowner.--The term `qualified homeowner' 
 means, with respect to a qualified residence, an individual--
 ``
        (A) who owns and uses such qualified residence as 
 the principal residence of such individual, and
 ``
        (B) whose family income (determined as of the 
 date that a binding contract for the affordable sale of 
 such residence is entered into) is 140 percent or less 
 of the median family income for the applicable area in 
 which the qualified residence is located.
 ``

    (e) Credit Ceiling and Allocations.--
 ``

    (1) Credit limited based on allocations to qualified 
 projects.--
 ``
        (A) In general.--The credit allowed under 
 subsection

    (a) to any taxpayer for any taxable year 
 with respect to one or more qualified residences which 
 are part of the same qualified project shall not exceed 
 the excess (if any) of--
 ``
            (i) the amount allocated by the 
 neighborhood homes credit agency under this 
 paragraph to such taxpayer with respect to such 
 qualified project, over
 ``
            (ii) the aggregate amount of credit 
 allowed under subsection

    (a) to such taxpayer 
 with respect to qualified residences which are 
 a part of such qualified project for all prior 
 taxable years.
 ``
        (B) Deadline for completion.--No credit shall be 
 allowed under subsection

    (a) with respect to any 
 qualified residence unless the affordable sale of such 
 residence is during the 5-year period beginning on the 
 date of the allocation to the qualified project of 
 which such residence is a part (or, in the case of a 
 qualified residence to which subsection
            (i) applies, 
 the rehabilitation of such residence is completed 
 during such 5-year period).
 ``

    (2) Limitations on allocations to qualified projects.--
 ``
        (A) Allocations limited by state neighborhood 
 homes credit ceiling.--The aggregate amount allocated 
 to taxpayers with respect to qualified projects by the 
 neighborhood homes credit agency of any State for any 
 calendar year shall not exceed the State neighborhood 
 homes credit amount of such State for such calendar 
 year.
 ``
        (B) Set-aside for certain projects involving 
 qualified nonprofit organizations.--Rules similar to 
 the rules of 

section 42

    (h)

    (5) shall apply for purposes 
 of this section.
 ``

    (3) Determination of state neighborhood homes credit 
 ceiling.--
 ``
        (A) In general.--The State neighborhood homes 
 credit amount for a State for a calendar year is an 
 amount equal to the sum of--
 ``
            (i) the greater of--
 ``
            (I) the product of $7, multiplied 
 by the State population (determined in 
 accordance with 

section 146

    (j) ), or
 ``
            (II) $9,000,000, and
 ``
            (ii) any amount previously allocated to 
 any taxpayer with respect to any qualified 
 project by the neighborhood homes credit agency 
 of such State which can no longer be allocated 
 to any qualified residence because the 5-year 
 period described in paragraph

    (1)
        (B) expires 
 during calendar year.
 ``
        (B) 3-year carryforward of unused limitation.--
 The State neighborhood homes credit amount for a State 
 for a calendar year shall be increased by the excess 
 (if any) of the State neighborhood homes credit amount 
 for such State for the preceding calendar year over the 
 aggregate amount allocated by the neighborhood homes 
 credit agency of such State during such preceding 
 calendar year. Any amount carried forward under the 
 preceding sentence shall not be carried past the third 
 calendar year after the calendar year in which such 
 credit amount originally arose, determined on a first-
 in, first-out basis.
 ``

    (f) Responsibilities of Neighborhood Homes Credit Agencies.--
 ``

    (1) In general.--Notwithstanding subsection

    (e) , the 
 State neighborhood homes credit dollar amount shall be zero for 
 a calendar year unless the neighborhood homes credit agency of 
 the State--
 ``
        (A) allocates such amount pursuant to a qualified 
 allocation plan of the neighborhood homes credit 
 agency,
 ``
        (B) allocates not more than 20 percent of amounts 
 allocated in the previous year (or for allocations made 
 in 2025, not more than 20 percent of the neighborhood 
 homes credit ceiling for such year) to projects with 
 respect to qualified residences which--
 ``
            (i) are located in census tracts 
 described in subsection
            (c) (2)
        (A)
            (iii) ,
            (c) (2)
        (A)
            (iv) ,
            (i) (5) , or
 ``
            (ii) are not located in a qualified 
 census tract but meet the requirements of 
 subsection
            (i) (8) ,
 ``
            (C) promulgates standards with respect to 
 reasonable qualified development costs and fees,
 ``
            (D) promulgates standards with respect to 
 construction quality,
 ``
        (E) in the case of any neighborhood homes credit 
 agency which makes an allocation to a qualified project 
 which includes any qualified residence to which 
 subsection
            (i) applies, promulgates standards with 
 respect to protecting the owners of such residences, 
 including the capacity of such owners to pay 
 rehabilitation costs not covered by the credit provided 
 by this section and providing for the disclosure to 
 such owners of their rights and responsibilities with 
 respect to the rehabilitation of such residences,
 ``
        (F) submits to the Secretary (at such time and in 
 such manner as the Secretary may prescribe) an annual 
 report specifying--
 ``
            (i) the amount of the neighborhood homes 
 credits allocated to each qualified project for 
 the previous year,
 ``
            (ii) with respect to each qualified 
 residence completed in the preceding calendar 
 year--
 ``
            (I) the census tract in which 
 such qualified residence is located,
 ``
            (II) with respect to the 
 qualified project that includes such 
 qualified residence, the year in which 
 such project received an allocation 
 under this section,
 ``
            (III) whether such qualified 
 residence was new, substantially 
 rehabilitated and sold to a qualified 
 homeowner, or substantially 
 rehabilitated pursuant to subsection
            (i) ,
 ``
            (IV) the eligible development 
 costs of such qualified residence,
 ``
            (V) the amount of the 
 neighborhood homes credit with respect 
 to such qualified residence,
 ``
            (VI) the sales price of such 
 qualified residence, if applicable, and
 ``
            (VII) the family income of the 
 qualified homeowner (expressed as a 
 percentage of the applicable area 
 median family income for the location 
 of the qualified residence), and
 ``
            (iii) such other information as the 
 Secretary may require, and
 ``
        (G) makes available to the general public a 
 written explanation for any allocation of a 
 neighborhood homes credit dollar amount which is not 
 made in accordance with established priorities and 
 selection criteria of the neighborhood homes credit 
 agency.
 Subparagraph
        (B) shall be applied by substituting `40 percent' 
 for `20 percent' each place it appears in the case of any State 
 in which at least 45 percent of the State population resides 
 outside metropolitan statistical areas (within the meaning of 
 

section 143

    (k)

    (2)
        (B) ) and less than 20 percent of the census 
 tracts located in the State are described in subsection
            (c) (2)
        (A)
            (i) .
 ``

    (2) Qualified allocation plan.--For purposes of this 
 subsection, the term `qualified allocation plan' means any plan 
 which--
 ``
        (A) sets forth the selection criteria to be used 
 to prioritize qualified projects for allocations of 
 State neighborhood homes credit dollar amounts, 
 including--
 ``
            (i) the need for new or substantially 
 rehabilitated owner-occupied homes in the area 
 addressed by the project,
 ``
            (ii) the expected contribution of the 
 project to neighborhood stability and 
 revitalization, including the impact on 
 neighborhood residents,
 ``
            (iii) the capability and prior 
 performance of the project sponsor, and
 ``
            (iv) the likelihood the project will 
 result in long-term homeownership,
 ``
        (B) has been made available for public comment, 
 and
 ``
            (C) provides a procedure that the neighborhood 
 homes credit agency (or any agent or contractor of such 
 agency) shall follow for purposes of--
 ``
            (i) identifying noncompliance with any 
 provisions of this section, and
 ``
            (ii) notifying the Internal Revenue 
 Service of any such noncompliance of which the 
 agency becomes aware.
 ``

    (g) Repayment.--
 ``

    (1) In general.--
 ``
        (A) Sold during 5-year period.--If a qualified 
 residence is sold during the 5-year period beginning 
 immediately after the affordable sale of such qualified 
 residence referred to in subsection

    (a) , the seller 
 shall transfer an amount equal to the repayment amount 
 to the relevant neighborhood homes credit agency.
 ``
        (B) Use of repayments.--A neighborhood homes 
 credit agency shall use any amount received pursuant to 
 subparagraph
        (A) only for purposes of qualified 
 projects.
 ``

    (2) Repayment amount.--For purposes of paragraph

    (1)
        (A) --
 ``
        (A) In general.--The repayment amount is an 
 amount equal to the applicable percentage of the gain 
 from the sale to which the repayment relates.
 ``
        (B) Applicable percentage.--For purposes of 
 subparagraph
        (A) , the applicable percentage is 50 
 percent, reduced by 10 percentage points for each year 
 of the 5-year period referred to in paragraph

    (1)
        (A) which ends before the date of such sale.
 ``

    (3) Lien for repayment amount.--A neighborhood homes 
 credit agency receiving an allocation under this section shall 
 place a lien on each qualified residence that is built or 
 rehabilitated as part of a qualified project for an amount such 
 agency deems necessary to ensure potential repayment pursuant 
 to paragraph

    (1)
        (A) .
 ``

    (4) Waiver.--
 ``
        (A) In general.--The neighborhood homes credit 
 agency may waive the repayment required under paragraph

    (1)
        (A) if the agency determines that making a repayment 
 would constitute a hardship to the seller.
 ``
        (B) Hardship.--For purposes of subparagraph
        (A) , 
 with respect to the seller, a hardship may include--
 ``
            (i) divorce,
 ``
            (ii) disability,
 ``
            (iii) illness, or
 ``
            (iv) any other hardship identified by the 
 neighborhood homes credit agency for purposes 
 of this paragraph.
 ``

    (h) Other Definitions and Special Rules.--For purposes of this 
section--
 ``

    (1) Neighborhood homes credit agency.--The term 
 `neighborhood homes credit agency' means the agency designated 
 by the governor of a State as the neighborhood homes credit 
 agency of the State.
 ``

    (2) Qualified project.--The term `qualified project' 
 means a project that a neighborhood homes credit agency 
 certifies will build or substantially rehabilitate one or more 
 qualified residences.
 ``

    (3) Determinations of family income.--Rules similar to 
 the rules of 

section 143

    (f)

    (2) shall apply for purposes of this 
 section.
 ``

    (4) Possessions treated as states.--The term `State' 
 includes the District of Columbia and the possessions of the 
 United States.
 ``

    (5) Special rules related to condominiums and cooperative 
 housing corporations.--
 ``
        (A) Determination of development costs.--In the 
 case of a qualified residence described in clause
            (ii) or
            (iii) of subsection
            (c) (1)
        (A) , the reasonable 
 development costs and eligible development costs of 
 such qualified residence shall be an amount equal to 
 such costs, respectively, of the entire condominium or 
 cooperative housing property in which such qualified 
 residence is located, multiplied by a fraction--
 ``
            (i) the numerator of which is the total 
 floor space of such qualified residence, and
 ``
            (ii) the denominator of which is the 
 total floor space of all residences within such 
 property.
 ``
        (B) Tenant-stockholders of cooperative housing 
 corporations treated as owners.--In the case of a 
 cooperative housing corporation (as such term is 
 defined in 

section 216

    (b) ), a tenant-stockholder shall 
 be treated as owning the house or apartment which such 
 person is entitled to occupy.
 ``

    (6) Related party sales not treated as affordable 
 sales.--
 ``
        (A) In general.--A sale between related persons 
 shall not be treated as an affordable sale.
 ``
        (B) Related persons.--For purposes of this 
 paragraph, a person (in this subparagraph referred to 
 as the `related person') is related to any person if 
 the related person bears a relationship to such person 
 specified in 

section 267

    (b) or 707

    (b)

    (1) , or the 
 related person and such person are engaged in trades or 
 businesses under common control (within the meaning of 
 subsections

    (a) and

    (b) of 

section 52). For purposes of 
 the preceding sentence, in applying 

section 267

    (b) or 
 707

    (b)

    (1) , `10 percent' shall be substituted for `50 
 percent'.
 ``

    (7) Inflation adjustment.--
 ``
        (A) In general.--In the case of a calendar year 
 after 2025, the dollar amounts in subsections

    (b)

    (3)
        (A) ,

    (e)

    (3)
        (A)
            (i) 
            (I) ,

    (e)

    (3)
        (A)
            (i) 
            (II) , and
            (i) (2)
            (C) shall each be increased by an amount equal 
 to--
 ``
            (i) such dollar amount, multiplied by
 ``
            (ii) the cost-of-living adjustment 
 determined under 

section 1

    (f)

    (3) for such 
 calendar year by substituting `calendar year 
 2022' for `calendar year 2016' in subparagraph
        (A)
            (ii) thereof.
 ``
        (B) Rounding.--
 ``
            (i) In the case of the dollar amounts in 
 subsections

    (b)

    (3)
        (A) and
            (i) (2)
            (C) , any 
 increase under paragraph

    (1) which is not a 
 multiple of $1,000 shall be rounded to the 
 nearest multiple of $1,000.
 ``
            (ii) In the case of the dollar amount in 
 subsection

    (e)

    (3)
        (A)
            (i) 
            (I) , any increase under 
 paragraph

    (1) which is not a multiple of $0.01 
 shall be rounded to the nearest multiple of 
 $0.01.
 ``
            (iii) In the case of the dollar amount in 
 subsection

    (e)

    (3)
        (A)
            (i) 
            (II) , any increase under 
 paragraph

    (1) which is not a multiple of 
 $100,000 shall be rounded to the nearest 
 multiple of $100,000.
 ``

    (8) Report.--
 ``
        (A) In general.--The Secretary shall annually 
 issue a report, to be made available to the public, 
 which contains the information submitted pursuant to 
 subsection

    (f)

    (1)
        (F) .
 ``
        (B) De-identification.--The Secretary shall 
 ensure that any information made public pursuant to 
 subparagraph
        (A) excludes any information that would 
 allow for the identification of qualified homeowners.
 ``

    (9) List of qualified census tracts.--The Secretary of 
 Housing and Urban Development shall, for each year, make 
 publicly available a list of qualified census tracts under--
 ``
        (A) on a combined basis, clauses
            (i) and
            (ii) of 
 subsection
            (c) (2)
        (A) ,
 ``
        (B) clause
            (iii) of such subsection, and
 ``
            (C) subsection
            (i) (5)
        (A) .
 ``

    (10) Denial of deductions if converted to rental 
 housing.--If, during the 5-year period beginning immediately 
 after the affordable sale of a qualified residence referred to 
 in subsection

    (a) , an individual who owns a qualified residence 
 (whether or not such individual was the purchaser in such 
 affordable sale) fails to use such qualified residence as such 
 individual's principal residence for any period of time, no 
 deduction shall be allowed for expenses paid or incurred by 
 such individual with respect to renting, during such period of 
 time, such qualified residence.
 ``
            (i) Application of Credit With Respect to Owner-Occupied 
Rehabilitations.--
 ``

    (1) In general.--In the case of a qualified 
 rehabilitation by the taxpayer of any qualified residence which 
 is owned (as of the date that the written binding contract 
 referred to in paragraph

    (3) is entered into) by a specified 
 homeowner, the rules of paragraphs

    (2) through

    (7) shall apply.
 ``

    (2) Alternative credit determination.--In the case of any 
 qualified residence described in paragraph

    (1) , the 
 neighborhood homes credit determined under subsection

    (a) with 
 respect to such residence shall (in lieu of any credit 
 otherwise determined under subsection

    (a) with respect to such 
 residence) be allowed in the taxable year during which the 
 qualified rehabilitation is completed (as determined by the 
 neighborhood homes credit agency) and shall be equal to the 
 least of--
 ``
        (A) the excess (if any) of--
 ``
            (i) the amounts paid or incurred by the 
 taxpayer for the qualified rehabilitation of 
 the qualified residence to the extent that such 
 amounts are certified by the neighborhood homes 
 credit agency (at the time of the completion of 
 such rehabilitation) as meeting the standards 
 specified pursuant to subsection

    (f)

    (1)
            (C) , 
 over
 ``
            (ii) any amounts paid to such taxpayer 
 for such rehabilitation,
 ``
        (B) 50 percent of the amounts described in 
 subparagraph
        (A)
            (i) , or
 ``
            (C) $50,000.
 ``

    (3) Qualified rehabilitation.--
 ``
        (A) In general.--For purposes of this subsection, 
 the term `qualified rehabilitation' means a 
 rehabilitation or reconstruction performed pursuant to 
 a written binding contract between the taxpayer and the 
 specified homeowner if the amount paid or incurred by 
 the taxpayer in the performance of such rehabilitation 
 or reconstruction exceeds the dollar amount in effect 
 under subsection

    (b)

    (3)
        (A) .
 ``
        (B) Application of limitation to expenses paid or 
 incurred after allocation.--A rule similar to the rule 
 of section

    (b)

    (4) shall apply for purposes of this 
 subsection.
 ``

    (4) Specified homeowner.--For purposes of this 
 subsection, the term `qualified homeowner' means, with respect 
 to a qualified residence, an individual--
 ``
        (A) who owns and uses such qualified residence as 
 the principal residence of such individual as of the 
 date that the written binding contract referred to in 
 paragraph

    (3) is entered into, and
 ``
        (B) whose family income (determined as of such 
 date) does not exceed the median family income for the 
 applicable area (with respect to the census tract in 
 which the qualified residence is located).
 ``

    (5) Additional census tracts in which owner-occupied 
 residences may be located.--In the case of any qualified 
 residence described in paragraph

    (1) , the term `qualified 
 census tract' includes any census tract which--
 ``
        (A) meets the requirements of subsection
            (c) (2)
        (A)
            (i) without regard to subclause
            (III) thereof, 
 and
 ``
        (B) is designated by the neighborhood homes 
 credit agency for purposes of this paragraph.
 ``

    (6) Modification of repayment requirement.--In the case 
 of any qualified residence described in paragraph

    (1) , 
 subsection

    (g) shall be applied by beginning the 5-year period 
 otherwise described therein on the date on which the qualified 
 homeowner acquired such residence.
 ``

    (7) Related parties.--Paragraph

    (1) shall not apply if 
 the taxpayer is the owner of the qualified residence described 
 in paragraph

    (1) or is related (within the meaning of 
 subsection

    (h)

    (6)
        (B) ) to such owner.
 ``

    (8) Pyrrhotite remediation.--The requirement of 
 subsection
            (c) (1)
            (C) shall not apply to a qualified 
 rehabilitation under this subsection of a qualified residence 
 that is documented by an engineer's report and core testing to 
 have a foundation that is adversely impacted by pyrrhotite or 
 other iron sulfide minerals.
 ``

    (j) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section, including regulations that prevent avoidance of the rules, and 
abuse of the purposes, of this section.''.

    (b) Credit Allowed as Part of General Business Credit.--

Section 38

    (b) of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph

    (37) , by striking the period at the 
end of paragraph

    (38) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
 ``

    (39) the neighborhood homes credit determined under 
 

section 42A

    (a) .''.
            (c) Credit Allowed Against Alternative Minimum Tax.--

Section 38
            (c) (4)
        (B) of the Internal Revenue Code of 1986 is amended by 
redesignating clauses
            (iv) through
            (xii) as clauses
            (v) through
            (xiii) , 
respectively, and by inserting after clause
            (iii) the following new 
clause:
 ``
            (iv) the credit determined under 

section 42A,''.
            (d) Basis Adjustments.--

    (1) Energy efficient home improvement credit.--

Section 25C

    (g) of the Internal Revenue Code of 1986 is amended by 
 adding after the first sentence the following new sentence: 
 ``This subsection shall not apply for purposes of determining 
 the eligible development costs or adjusted basis of any 
 building under 

section 42A.''.

    (2) Residential clean energy credit.--

Section 25D

    (f) of 
 such Code is amended by adding after the first sentence the 
 following new sentence: ``This subsection shall not apply for 
 purposes of determining the eligible development costs or 
 adjusted basis of any building under 

section 42A.''.

    (3) New energy efficient home credit.--

Section 45L

    (e) of 
 such Code is amended by inserting ``or for purposes of 
 determining the eligible development costs or adjusted basis of 
 any building under 

section 42A'' after ``

section 42''.

    (e) Exclusion From Gross Income.--Part III of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 is amended by inserting 
before 

section 140 the following new section:

``

SEC. 139J. STATE ENERGY SUBSIDIES FOR QUALIFIED RESIDENCES.

 ``

    (a) Exclusion From Gross Income.--Gross income shall not include 
the value of any subsidy provided to a taxpayer (whether directly or 
indirectly) by any State energy office (as defined in 

section 124

    (a) of 
the Energy Policy Act of 2005 (42 U.S.C. 15821

    (a) )) for purposes of any 
energy improvements made to a qualified residence (as defined in 

section 42A
            (c) (1) ).''.

    (f) Conforming Amendments.--

    (1) Subsections
            (i) (3)
            (C) ,
            (i) (6)
        (B)
            (i) , and

    (k)

    (1) of 
 

section 469 of the Internal Revenue Code of 1986 are each 
 amended by inserting ``or 42A'' after ``

section 42''.

    (2) The table of sections for subpart D of part IV of 
 subchapter A of chapter 1 of such Code is amended by inserting 
 after the item relating to 

section 42 the following new item:

``

Sec. 42A. Neighborhood homes credit.''.

    (3) The table of sections for part III of subchapter B of 
 chapter 1 of such Code is amended by inserting before the item 
 relating to 

section 140 the following new item:

``

Sec. 139J. State energy subsidies for qualified residences.''.

    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 208. BETTER UTILIZING AND DISPOSING OF UNUSED MILITARY AND 
 GOVERNMENT LANDS FOR HOUSING.

    (a) In General.--A State or unit of local government may submit a 
petition to a Federal agency requesting to use unused property owned by 
such Federal agency for the construction of affordable housing.

    (b) Submission to PBRB.--Any Federal agency that receives a 
petition under subsection

    (a) shall submit a copy of such petition to 
the Public Buildings Reform Board.
            (c) Determination.--A Federal agency that receives a petition under 
subsection

    (a) shall, not less that 60 days after receiving such 
petition determine whether the property is excess.
            (d) Justification Required.--If a Federal agency determines under 
subsection
            (c) that a property is not excess such Federal agency shall 
submit to the Office of Management and Budget a statement that 
justifies why such property is not excess.

    (e) Donation by GSA.--If a Federal agency determines a property to 
be excess under subsection

    (b) , the General Services Administration may 
donate such property to the State or unit of local government that 
submitted the petition under subsection

    (a) .

SEC. 209. ENERGY CONSERVATION STANDARDS FOR MANUFACTURED HOUSING.

 The Secretary of Energy may not, by rule or otherwise, establish 
energy conservation standards for manufactured housing.

SEC. 210. RENTAL ASSISTANCE DEMONSTRATION PROGRAM.

 The matter under the heading ``Rental Assistance Demonstration'' in 
the Department of Housing and Urban Development Appropriations Act, 
2012 (Public Law 112-55), is amended--

    (1) by striking the second proviso; and

    (2) by striking the fourth proviso.

SEC. 211. CREATING INCENTIVES FOR SMALL DOLLAR LOAN ORIGINATORS.

    (a) Small Dollar Mortgage Defined.--In this section, the term 
``small dollar mortgage'' means a mortgage loan that--

    (1) has an original principal obligation of not more than 
 $70,000;

    (2) is secured by real property designed for the occupancy 
 of 1 to 4 families; and

    (3) is--
        (A) insured by the Federal Housing Administration 
 under title II of the National Housing Act (12 U.S.C. 
 1707 et seq.);
        (B) made, guaranteed, or insured by the Department 
 of Veterans Affairs;
            (C) made, guaranteed, or insured by the Department 
 of Agriculture; or
            (D) eligible to be purchased or securitized by the 
 Federal Home Loan Mortgage Corporation or the Federal 
 National Mortgage Association.

    (b) Requirement To Update Regulations.--Not later than 270 days 
after the date of enactment of this Act, the Director of the Bureau of 
Consumer Financial Protection shall issue regulations to update part 
1026 of title 12, Code of Federal Regulations (commonly referred to as 
``Regulation Z'') to allow for salaried originators of residential 
mortgage loans that only originate small dollar mortgages.

SEC. 212. SMALL DOLLAR MORTGAGE POINTS AND FEES.

    (a) 

=== Definition. ===
-In this section, the term ``small dollar 
mortgage'' means a mortgage with an original principal obligation of 
less than $70,000.

    (b) Amendments Required.--Not later than 180 days after the date of 
enactment of this Act, the Director of the Bureau of Consumer Financial 
Protection, in consultation with the Secretary of Housing and Urban 
Development and the Director of the Federal Housing Finance Agency, 
shall amend the limitations with respect to points and fees under 

section 1026.32 of title 12, Code of Federal Regulations, or any 
successor regulation, to encourage additional lending for small dollar 
mortgages.

SEC. 213. REMOVING OUTDATED REGULATION FOR MANUFACTURED HOUSING.

    (a) In General.--

Section 603

    (6) of the National Manufactured 
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 
5402

    (6) ) is amended by striking ``built on a permanent chassis and''.

    (b) Implementation.--Not later than 90 days after the date of the 
enactment of this Act, the consensus committee established under 

section 604

    (a)

    (3) of the National Manufactured Housing Construction and 
Safety Standards Act of 1974 (42 U.S.C. 5403

    (a)

    (3) ) shall meet to 
develop and recommend to the Secretary of Housing and Urban Development 
such revisions to the Federal manufactured home construction and safety 
standards, and related regulations, as are necessary to implement the 
amendment made by subsection

    (a) of this section. Such revised 
standards shall be considered by the Secretary for adoption pursuant to 
the process set forth in 

section 604 of such Act.

 TITLE III--SERVING THE MOST VULNERABLE; HEALTH AND SAFETY

SEC. 301. GAO STUDY TO DETERMINE PROXIMITY OF HOUSING TO SUPERFUND 
 SITES.

    (a) Study.--The Comptroller General of the United States shall 
carry out a study to identify how many residential dwelling units, and 
how many dwelling units in public housing (as such term is defined in 

section 3

    (b) of the United States Housing Act of 1937 (42 U.S.C. 
1437a
        (B) )), are located within one mile of a site that is included on 
the National Priorities List pursuant to 

section 105 of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9605).

    (b) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Congress identifying, for each 
site referred to in subsection

    (a) , how many residential dwelling 
units, and how many dwelling units in public housing, are located 
within one mile of such site.

SEC. 302. ENSURING PUBLIC HOUSING AGENCIES INSPECT EACH DWELLING UNIT 
 EACH YEAR.

 The Secretary of Housing and Urban Development and the Comptroller 
General of the United States shall, not later than 1 year after the 
date of the enactment of this section, conduct a study and submit a 
report to the Congress that identifies:

    (1) how many inspections required to be conducted by the 
 Secretary of Housing and Urban Development in the 1-year period 
 are incomplete; and

    (2) how many inspectors are needed to ensure that all 
 inspections required to be conducted by the Secretary of 
 Housing and Urban Development can be completed each year.

SEC. 303. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.

    (a) Continuum of Care Program.--

Section 428 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 1186b) is amended by adding at the 
end the following:
 ``

    (f) Incentives for Reducing Homelesness.--
 ``

    (1) In general.--From the amounts made available to carry 
 out this subtitle for a fiscal year, the Secretary may use not 
 more than 10 percent of the amounts made available to carry out 
 this subtitle for incentives described in paragraph

    (2) .
 ``

    (2) Incentives.--The Secretary may provide bonuses or 
 other incentives to a geographic area under this subtitle if, 
 during a fiscal year, the Secretary determines that an entity 
 receiving funds under this subtitle has demonstrably and 
 measurably improved housing outcomes for homeless individuals 
 in the geographic area.''.

    (b) Emergency Solutions Grants Program.--

Section 413 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11372a) is amended by 
adding at the end the following:
 ``
            (c) Incentives for Reducing Homelesness.--
 ``

    (1) In general.--From the amounts made available to carry 
 out this subtitle for a fiscal year, the Secretary may use not 
 more than 10 percent of the amounts made available to carry out 
 this subtitle for incentives described in paragraph

    (2) .
 ``

    (2) Incentives.--The Secretary may provide bonuses or 
 other incentives to a geographic area under this subtitle if, 
 during a fiscal year, the Secretary determines that an entity 
 receiving funds under this subtitle has demonstrably and 
 measurably improved housing outcomes for homeless individuals 
 in the geographic area.''.

SEC. 304. IMPROVING MOLD AND HEALTH STANDARDS.

    (a) 

=== Definitions. ===
-In this section:

    (1) Indoor residential mold.--The term ``indoor residential 
 mold'' means any form of multicellular fungi in indoor 
 environments, including cladosporium, penicillium, alternaria, 
 aspergillus, fusarium, trichoderma, memnoniella, mucor, 
 stachybotrys chartarum, streptomyces, and epicoccumoften found 
 in water-damaged indoor environments and building materials.

    (2) Residential mold inspection.--The term ``residential 
 mold inspection'' means an inspection, by a certified or 
 licensed mold inspector or other indoor environmental 
 professional, including through the Real Estate Assessment 
 Center, of real property that is designed to discover--
        (A) indoor mold growth in residential properties;
        (B) conditions that facilitate indoor residential 
 mold growth; or
            (C) indicia of conditions that are likely to 
 facilitate indoor residential mold growth.

    (3) Toxigenic mold.--The term ``toxigenic mold'' means any 
 indoor mold growth that may be capable of producing a toxin or 
 toxic compound, including mycotoxins and mVOCs, that can cause 
 pulmonary, respiratory, neurological, gastrointestinal, or 
 dermatological illnesses, or other major adverse health 
 impacts, as jointly determined by the Director of the National 
 Institutes of Health, the Secretary of Housing and Urban 
 Development, the Administrator of the Environmental Protection 
 Agency, and the Director of the Centers for Disease Control and 
 Prevention.

    (b) Interagency Research on Health Impacts of Indoor Residential 
Mold.--

    (1) Research.--
        (A) In general.--As soon as practicable after the 
 date of enactment of this Act, the Director of the 
 National Institute of Environmental Health Sciences at 
 the National Institutes of Health, in conjunction with 
 the Secretary of Housing and Urban Development, the 
 Director of the Centers for Disease Control and 
 Prevention, the Administrator of the Environmental 
 Protection Agency, the Secretary of Energy, the 
 Secretary of Health and Human Services, the President 
 of the National Academy of Sciences, and the Chair of 
 the board of directors of the National Institute of 
 Building Sciences shall jointly conduct a comprehensive 
 study of the health effects of indoor residential mold 
 growth, using the most up-to-date scientific peer-
 reviewed medical literature.
        (B) Contents.--The study conducted under 
 subparagraph
        (A) shall ascertain, among other things--
            (i) detailed information about harmful or 
 toxigenic mold, as well as any toxin or toxic 
 compound such mold can produce;
            (ii) the most accurate research-based 
 methods of detecting harmful or toxigenic mold;
            (iii) potential dangers of prolonged or 
 chronic exposure to indoor residential mold 
 growth;
            (iv) the hazards involved with inadequate 
 residential mold inspections and improper 
 indoor residential mold remediation;
            (v) the estimated current public health 
 burden of new or exacerbated physical illness 
 resulting from exposure to indoor residential 
 mold, including its disproportionate impact on 
 vulnerable communities, including children and 
 seniors;
            (vi) improved understanding of the 
 different health symptomology that can result 
 from exposure to mold in indoor residential 
 environments;
            (vii) ongoing surveillance of the 
 prevalence of idiopathic pulmonary hemorrhage

    (AIPH) in infants; and
            (viii) longitudinal studies on the effects 
 of indoor old exposure in early childhood on 
 the development of asthma and other respiratory 
 illnesses.
            (C) Availability.--Not later than the expiration of 
 the 3-year period beginning on the date of the 
 enactment of this Act, the results of the study 
 conducted under subparagraph
        (A) shall be submitted to 
 Congress and the President and made available to the 
 general public.
            (c) Mapping.--

    (1) In general.--Not later than one year after the date of 
 the enactment of this Act, the Secretary of Housing and Urban 
 Development shall, using the previous two years of inspection 
 data, establish a geographic information system mapping tool 
 that identifies areas which are impacted by a known presence of 
 indoor residential mold.

    (2) Required inclusions.--The Secretary shall include, as 
 part of the mapping tool--
        (A) inspection documentation;
        (B) management and occupancy reviews;
            (C) transfers of budget authority for contracts 
 under 

section 8 of the United States Housing Act of 
 1937 (42 U.S.C. 1437f); and
            (D) any additional information, as required by the 
 Secretary.

    (3) Updates.--The Secretary shall update the mapping tool 
 with the latest inspection data not less often than once per 
 year.
            (d) Public Information and Education Campaign.--

    (1) Requirement.--The Administrator of the Environmental 
 Protection Agency, the Secretary of Housing and Urban 
 Development, and the heads of any other relevant Federal 
 agencies, as determined by such Administrator and Secretary, 
 shall jointly develop and carry out a public information and 
 education campaign regarding indoor air quality and related 
 issues that provides information required under this section on 
 a recurring and annual basis through public outreach. The 
 campaign shall commence within 1 year after the date of the 
 enactment of this Act.

    (2) Topics.--The information and education campaign shall 
 include information on the dangers and prevention of indoor 
 residential moisture and mold, volatile organic compounds, 
 dust, smoking, pollution, indoor origins of smoke, including 
 cooking, and any other health risks, as determined by such 
 Administrator and Secretary.

    (3) Indoor residential mold information.--The information 
 and education campaign shall include, at minimum, the following 
 information regarding indoor residential mold:
        (A) The conditions that facilitate indoor 
 residential moisture and mold growth.
        (B) Guidelines for inspecting indoor residential 
 mold growth.
            (C) Guidelines for remediating indoor residential 
 mold growth.
            (D) The dangers and health risks of exposure to 
 indoor residential mold growth.
        (E) The importance of ventilation and methods to 
 prevent moisture accumulation in indoor residential 
 environments.
        (F) Any other information as determined appropriate 
 by the heads of the agencies referred to in paragraph

    (1) .

    (4) Modes of communication.--
        (A) In general.--The public information and 
 education campaign shall provide education and 
 information through modes of communication that are 
 commonly utilized and able to be easily consumed by 
 relevant individuals or organizations, which shall 
 include communication through advertisements on public 
 transit in all 50 States and in territories and 
 possessions of the United States, and distribution of 
 the pamphlet developed pursuant to paragraph

    (9) as 
 required under such paragraph.
        (B) Availability.--All education and information 
 that is part of the information and education campaign 
 shall be made publicly available on the websites of the 
 Environmental Protection Agency, the Department of 
 Housing and Urban Development, and any other applicable 
 Federal agencies.

    (5) Targeted groups.--The public information and education 
 campaign shall be designed to reach tenants, tenant 
 organizations working directly with tenants in project-based 
 rental assistance and other types of federally-assisted 
 housing, resident groups, landlords, health professionals, the 
 general public, homeowners, prospective homeowners, the real 
 estate industry, the home construction and renovation 
 industries, the health, property and casualty, and life 
 insurance industries, technical and vocational schools and 
 colleges, and other academic institutions.

    (6) Information specific to health professions.--The public 
 information and education campaign shall include information 
 about warning signs of mold and other indoor air exposure 
 pollutants and shall include education for health professions 
 on mold-related illness, including for health professions who 
 work with vulnerable populations and children in school or 
 daycare settings.

    (7) Coordination.--In developing and carrying out the 
 public information and education campaign, the heads of the 
 agencies referred to in paragraph

    (1) may coordinate with the 
 Ad Council.

    (8) Language.--All information provided under the public 
 information and education campaign--
        (A) shall be provided in at least two languages, as 
 determined by the Secretary, based on the most common 
 languages spoken in the neighborhood, tribe, 
 municipality, State, or region, and may be provided in 
 additional languages based on the most common languages 
 spoken in the neighborhood, tribe, municipality, State, 
 or region, as determined by the Secretary; and
        (B) shall be provided in language that is at a 
 sixth grade reading level and is easy to understand.

    (9) Pamphlet.--
        (A) Requirement.--The Secretary of Housing and 
 Urban Development, in consultation with the Director of 
 the National Institutes of Health, the Administrator of 
 the Environmental Protection Agency, and the heads of 
 any other agencies the Secretary considers appropriate, 
 shall develop, publish, and revise, not less frequently 
 than every 5 years, a pamphlet regarding indoor 
 residential mold hazards.
        (B) Content.--The pamphlet required under this 
 subsection shall--
            (i) contain information regarding the 
 health risks associated with exposure to indoor 
 residential mold growth;
            (ii) provide information on the hazards of 
 indoor residential mold growth in federally-
 assisted and federally-owned housing;
            (iii) describe the risks of indoor 
 residential mold exposure for persons residing 
 in a dwelling with toxigenic mold;
            (iv) provide information on approved 
 methods for evaluating and reducing indoor 
 residential mold growth and their effectiveness 
 in identifying, reducing, eliminating, or 
 preventing indoor residential mold growth;
            (v) provide advice on how to obtain a list 
 of persons certified to inspect or remediate 
 indoor residential mold growth in the area in 
 which the pamphlet is to be used;
            (vi) include a statement that a risk 
 assessment or inspection for indoor residential 
 mold growth is recommended prior to the 
 purchase, lease, or renovation of target 
 housing;
            (vii) include a statement that certain 
 State and local laws impose additional 
 requirements related to indoor residential mold 
 growth in housing and provide a listing of 
 Federal, State, and local agencies in each 
 State, including address, telephone number, and 
 electronic mail address, if available, that can 
 provide information about applicable laws and 
 available governmental and private assistance 
 and financing;
            (viii) provide information considered by 
 the Administrator of the Environmental 
 Protection Agency to be appropriate or 
 necessary to promote awareness of the hazards 
 posed by indoor residential mold;
            (ix) include information on indoor air 
 quality safety generally, including best 
 practices when cooking, taking a shower or 
 bath, and smoking cessation;
            (x) be publicly available on the websites 
 of the Department of Housing and Urban 
 Development, the Environmental Protection 
 Agency, and other applicable Federal agencies; 
 and
            (xi) include any other information 
 considered by the Administrator of the 
 Environmental Protection Agency to be 
 appropriate or necessary.

    (10) Authorization of appropriations.--There is authorized 
 to be appropriated such sums as may be necessary to carry out 
 this subsection.

    (e) GAO Study on Health and Safety Concerns in Federally-Assisted 
Housing.--Not later than the expiration of the 3-year period beginning 
on the date of the enactment of this Act, the Comptroller General of 
the United States shall submit a report to the Congress analyzing and 
assessing the communication, as applicable, between public housing 
agencies, landlords, and tenants over resolving problems with the 
health, safety, or other issues of dwelling units that are federally 
subsidized and inspected through subpart G of part 5 of title 24, Code 
of Federal Regulations, landlord responsiveness regarding such issues, 
opportunities for improvement in such communications, and how tenants 
understand their rights and how they are responded to when issues 
arise, including protocols for responding to tenant complaints and 
tenant understanding of such processes. The report shall include 
recommendations for how to improve such communications and the physical 
quality of the housing stock for which such assistance is provided.

SEC. 305. IMPROVING PROTECTION FROM LEAD HAZARDS.

    (a) 

=== Definitions. ===
-In this section--

    (1) the term ``covered housing'' means a dwelling unit 
 receiving project-based rental assistance or tenant-based 
 rental assistance under 

section 8 of the United States Housing 
 Act of 1937 (42 U.S.C. 1437f); and

    (2) the term ``Department'' means the Department of Housing 
 and Urban Development.

    (b) Annual Risk Assessment and Report.--Not later than 1 year after 
the date of enactment of this Act, and every year thereafter, the 
Deputy Assistant Secretary for the Office of Multifamily Housing 
Programs of the Department, in collaboration with the Office of Lead 
Hazard Control and Healthy Homes of the Department, shall--

    (1) conduct a risk assessment of covered housing to 
 identify properties with the greatest risk of exposing children 
 under the age of 6 years old to lead hazards, including lead-
 based paint and lead service lines;

    (2) develop an action plan relating to remediation, 
 control, and safeguards to address lead hazards, including 
 lead-based paint and lead-service lines, in covered housing 
 identified in the risk assessment conducted under paragraph

    (1) , with priority given to those properties with children 
 under the age of 6 years old; and

    (3) submit to Congress a report on properties with covered 
 housing that have lead-based paint or lead service lines, 
 including the number of children under the age of 6 years old 
 living at these properties.
            (c) Uniform Physical Condition Standard Inspections.--In conducting 
uniform physical condition inspections in accordance with part 5 of 
title 24, Code of Federal Regulations, or any successor regulation, the 
Secretary shall include lead-based paint and lead service lines in the 
graded scoring as an exigent health and safety deficiency to ensure 
that--

    (1) lead-based paint and lead service lines are tracked at 
 each applicable property; and

    (2) the owners of those properties are held accountable for 
 remediating deficiencies.

SEC. 306. IMPROVING HOUSING FOR THE ELDERLY AND DISABLED.

 The Comptroller General of the United States shall, not later than 
1 year after the date of the enactment of this section, conduct a study 
that identifies options to remove barriers and improve housing for 
persons who are elderly or disabled, including any potential impacts of 
providing capital advances for--

    (1) the program for supportive housing for the elderly 
 under 

section 202 of the Housing Act of 1959; and

    (2) the program for supportive housing for persons with 
 disabilities under 

section 811 of the Cranston-Gonzalez 
 National Affordable Housing Act.

 TITLE IV--GOOD GOVERNANCE

SEC. 401. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING 
 REGULATORS.

    (a) Testimony by Secretary.--

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

    (u) Annual Testimony.--The Secretary shall appear before the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate at an 
annual hearing and present testimony regarding the operations of the 
Department during the preceding year, including regarding the following 
topics:
 ``

    (1) The physical condition of all public housing and 
 other housing assisted by the Department.
 ``

    (2) The financial health of the mortgage insurance funds 
 of the FHA.
 ``

    (3) Oversight by the Department of grantees and sub-
 grantees engaging in waste, fraud, and abuse.
 ``

    (4) Ongoing activities of the Department, as 
 appropriate.''.

    (b) Testimony by Inspector General.--Not later than October 1 of 
each year, the Inspector General of the Department of Housing and Urban 
Development shall appear before the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate and present testimony on the Office of 
Inspector General's--

    (1) efforts to detect and prevent fraud, waste, and abuse;

    (2) ability to conduct and supervise audits, 
 investigations, and reviews;

    (3) actions to identify opportunities for the programs of 
 the Department of Housing and Urban Development to progress and 
 succeed; and

    (4) ongoing activities regarding any such additional work, 
 as appropriate.

SEC. 402. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FOR GOVERNMENT 
 GUARANTEED OR INSURED MORTGAGE PROGRAMS.

 On an annual basis, the following individuals shall testify before 
the Committee on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Representatives on 
mortgage loans guaranteed or insured by the Federal Government:

    (1) The President of the Government National Mortgage 
 Association.

    (2) The Federal Housing Commissioner.

    (3) The Administrator of the Rural Housing Service.

SEC. 403. TESTIMONY AND REPORT FROM UNITED STATES INTERAGENCY COUNCIL 
 ON HOMELESSNESS.

 

Section 203

    (a) of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11313

    (a) ) is amended--

    (1) in paragraph

    (1) --
        (A) by striking ``Homeless Emergency Assistance and 
 Rapid Transition to Housing Act of 2009'' and inserting 
 ``Revitalizing America's Housing Act''; and
        (B) by striking ``update such plan annually'' and 
 inserting the following: ``submit to the President and 
 Congress a report every year thereafter that includes--
 ``
        (A) the status of completion of the plan;
 ``
        (B) any modifications that were made to the plan 
 and the reasons for those modifications; and
 ``
            (C) an estimate of when homelessness will be 
 ended;'';

    (2) by redesignating paragraphs

    (10) through

    (13) as 
 paragraphs

    (11) through

    (14) , respectively;

    (3) by redesignating the second paragraph

    (9) (relating to 
 collecting and disseminating information) as paragraph

    (10) ;

    (4) in paragraph

    (13) , as so redesignated, by striking 
 ``and'' at the end;

    (5) in paragraph

    (14) , as so redesignated, by striking the 
 period at the end and inserting ``; and''; and

    (6) by adding at the end the following:
 ``

    (15) testify annually before Congress.''.

SEC. 404. REPORT DETAILING NYCHA COMPLIANCE WITH AND HUD OVERSIGHT OF 
 2019 AGREEMENT.

    (a) Congressional 

=== Findings ===
-The Congress finds that--

    (1) the New York City Housing Authority (in this section 
 referred to as the ``Authority'') is the largest housing 
 authority in the United States, providing housing for over 
 520,000 residents in over 177,000 apartments in the City of New 
 York (in this section referred to as the ``City'');

    (2) the Authority is a public housing agency that receives 
 Federal financial assistance from the Department of Housing and 
 Urban Development (in this section referred to as the 
 ``Department'') to administer its public housing program;

    (3) the Authority is required to, among other things, 
 provide decent, safe, and sanitary housing for the public 
 housing residents of the City and comply with Federal law 
 protecting children from the hazards of lead poisoning;

    (4) on June 11, 2018, the United States filed a complaint 
 in the United States District Court for the Southern District 
 of New York (in this section referred to as the ``Complaint''); 
 which set forth the findings of the United States 
 investigation, alleging, among other things, that the Authority 
 had--
        (A) routinely failed to comply with lead-based 
 paint safety regulations;
        (B) failed to provide decent, safe, and sanitary 
 housing, including with respect to the provision of 
 heat and elevators and the control and treatment of 
 mold and pests; and
            (C) repeatedly misled the Department through false 
 statements and deceptive practices;

    (5) in a Consent Decree executed June 11, 2018, the 
 Authority made admissions regarding, among other things, 
 deficiencies in physical conditions with respect to lead, mold, 
 heating, elevators and pests and made untrue statements to the 
 Department regarding the conditions of the Authority's 
 properties and practices with regard to Public Housing 
 Assessment System inspections;

    (6) based on the Authority's misconduct as detailed in the 
 Complaint, on January 31, 2019, the Secretary of Housing and 
 Urban Development (in this section referred to as the 
 ``Secretary'') declared that the Authority is in substantial 
 default within the meaning of 

section 6

    (j)

    (3)
        (A) of the United 
 States Housing Act of 1937 (42 U.S.C. 1437d

    (j)

    (3)
        (A) );

    (7) the Department did not take possession of the Authority 
 or appoint a receiver, but instead entered into a voluntary 
 agreement between the Authority, the Department, and the City 
 on January 31, 2019, under which the Authority agreed to remedy 
 noted deficiencies subject to the oversight of a Monitor 
 appointed by the City;

    (8) as of the date of the enactment of this Act, the 
 Authority has still fully not complied with the agreement, 
 including the remedying of deficiencies or compliance with its 
 obligations under Federal law;

    (9) the Department and the United States Attorney's Office 
 for the Southern District of New York have sought to extend the 
 term of a Monitor over the Authority for an additional five 
 years beginning in 2024;

    (10) the residents of housing provided by the Authority 
 should not be required to wait five additional years for the 
 Authority to provide decent, safe, and sanitary housing 
 conditions, as is the Authority's most basic and necessary 
 function under the law; and

    (11) the Congress believes that it must provide additional 
 oversight over the Authority, the Department, the City, and the 
 Monitor in order to compel the Authority to fix the appalling 
 conditions and other issues that lead to a declaration of 
 substantial default under 

section 6

    (j)

    (3)
        (A) of the United 
 States Housing Act of 1937.

    (b) Investigation and Report to Congress.--

    (1) Investigation.--The Inspector General of the Department 
 of Housing and Urban Development shall conduct an investigation 
 of the Authority, which shall include at a minimum--
        (A) determining the status of the New York City 
 Housing Authority's compliance with the agreement 
 entered into between the Authority, the Department, and 
 the City on January 31, 2019, including specific areas 
 of deficiency and progress towards compliance;
        (B) conducting a review of actions taken by the 
 Monitor over the Authority pursuant to such Agreement, 
 including any gaps in oversight by the Monitor;
            (C) conducting a survey of the physical conditions 
 of housing provided by the Authority for the City's 
 residents;
            (D) conducting an examination of any waste, fraud, 
 abuse and violations of Federal law committed by 
 employees or contractors of the Authority; and
        (E) identifying other priority issues and areas, as 
 deemed necessary and appropriate by the Inspector 
 General.

    (2) Report.--Not later than the expiration of the 180-day 
 period beginning on the date of the enactment of this Act, the 
 Inspector General shall provide 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 
 setting forth the findings of its investigation, a summary of 
 actions the Department may take to compel the Authority to 
 remedy deficiencies, and any other recommendations of the 
 Inspector General.

SEC. 405. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.

    (a) Monthly Reporting on Mutual Mortgage Insurance Fund Capital 
Ratio.--

Section 202

    (a) of the National Housing Act (12 U.S.C. 1708

    (a) ) 
is amended by adding at the end the following:
 ``

    (8) Other required reporting.--The Secretary shall--
 ``
        (A) submit to Congress monthly reports on the 
 capital ratio required under 

section 205

    (f)

    (2) ; and
 ``
        (B) notify Congress as soon as practicable after 
 the Fund falls below the capital ratio required under 
 

section 205

    (f)

    (2) .''.

    (b) First-Time Homebuyers.--

    (1) === Definitions. ===
-In this section--
        (A) the terms ``consumer report'' has the meaning 
 given the term in 

section 603 of the Fair Credit 
 Reporting Act (15 U.S.C. 1681a); and
        (B) the term ``Federally backed mortgage loan'' has 
 the meaning given the term in 

section 4022 of the CARES 
 Act (15 U.S.C. 9056).

    (2) Definition of first-time homebuyer.--For purposes of 
 qualifying for a Federally backed mortgage loan for which a 
 consumer report is furnished to a creditor by a consumer 
 reporting agency described in 

section 603

    (p) of the Fair Credit 
 Reporting Act (15 U.S.C. 1681a

    (p) ), a first-time homebuyer 
 shall be defined as a borrower whose consumer report does not 
 indicate that the borrower has or had a loan with a consumer 
 purpose that is secured by a 1- to 4-unit residential real 
 property.
            (c) GAO Study on Sustainable Homeownership.--Not later than 180 
days after the date of enactment of this Act, the Comptroller General 
of the United States shall conduct a study and submit to Congress a 
report on--

    (1) the value for the Federal Housing Administration of 
 defining what is sustainable homeownership in way that 
 considers borrower default, refinancing to a non-insured 
 mortgage product, paying off a mortgage loan and transitioning 
 back to renting, and other factors that demonstrate whether 
 insurance provided under title II of the National Housing Act 
 (12 U.S.C. 1707 et seq.) has successfully served a borrower, 
 including for first-time homebuyers as defined in subsection

    (b)

    (2) ; and

    (2) the feasibility of the Federal Housing Administration 
 developing a scorecard using the metrics described in paragraph

    (1) to measure borrower performance and reporting the scorecard 
 data to Congress.

SEC. 406. COMBATTING SQUATTING.

    (a) Congressional 

=== Findings ===
-The Congress finds that--

    (1) unlawfully entering a property without the permission 
 of the property owner and residing in that property for 
 consecutive days without the permission of the property owner 
 and without the payment of rent or a rental contract agreed to 
 by the property owner can be defined as ``squatting'' and 
 should not confer any special status as a tenant or lawful 
 occupant of the property;

    (2) local law enforcement should take actions to 
 expeditiously remove from a property any persons or persons 
 engaging in squatting and should prosecute such actions as 
 prescribed by local law;

    (3) Federal Government benefits, including loans, loan 
 guarantees, subsidies, and tax credits, should not be used to 
 reinforce, condone, or otherwise incentivize squatting; and

    (4) real estate collateral securing a government or 
 government-sponsored enterprise loan, or subject to a loan 
 guarantee, mortgage insurance or other Federal mortgage support 
 program must be protected from persons engaging in squatting as 
 it creates undue risks for the value of such property.

    (b) Prohibition on CDBG Funding.--

Section 104 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5304) is amended by adding 
at the end the following:
 ``

    (n) Withholding of Funds for Jurisdictions That Permit 
Squatting.--
 ``

    (1) Prohibition.--The Secretary shall, by regulation--
 ``
        (A) prohibit the allocation and provision of 
 funds under this title for any unit of general local 
 government that permits squatting or confers special 
 status for rights of tenancy for a person or persons 
 engaging in the practice of squatting; and
 ``
        (B) provide for--
 ``
            (i) units of general local government to 
 take corrective actions to remedy the 
 applicability of the prohibition under 
 subparagraph
        (A) to such unit of general local 
 government; and
 ``
            (ii) certification by the Secretary upon 
 a determination that such actions taken by a 
 unit of general local government are sufficient 
 for the unit of general local government to 
 receive funds under this title.
 ``

    (2) Public notice.--The Secretary shall make publicly 
 available for each fiscal year a list of all units of general 
 local government that are prohibited by paragraph

    (1) from 
 receiving funds under this title and the justification for 
 inclusion in the list of each such unit of general local 
 government.
 ``

    (3) Squatting.--For purposes of this subsection, the term 
 `squatting' means the practice of entering a property without 
 the permission of the property owner and residing in that 
 property for 14 or more consecutive days without the permission 
 of the property owner and without the payment of rent or a 
 rental contract agreed to by the property owner.''.
            (c) Prohibition on Federal Mortgage Support.--

    (1) Prohibition.--No Federal support may be provided for 
 any loan that is secured by a first or subordinate lien on 
 residential real property (including individual units of 
 condominiums and cooperatives) and designed principally for the 
 occupancy of from 1- to 4-families if the property securing 
 such loan is located in a unit of general local government that 
 is, at such time, prohibited from receiving funds under title I 
 of the Housing and Community Development Act of 1974 by 

section 104

    (n)

    (1)
        (A) of such Act.

    (2) Regulations.--The heads of the covered agencies shall 
 jointly develop, by regulations issued not later than 90 days 
 after the date of the enactment of this Act, guidelines for 
 such covered agencies to carry out this subsection.

    (3) === Definitions. ===
-For purposes of this subsection, the 
 following definitions shall apply:
        (A) Covered agency.--The term ``covered agency'' 
 means--
            (i) the Department of Housing and Urban 
 Development;
            (ii) the Federal Housing Finance Agency;
            (iii) the Department of Veterans Affairs; 
 and
            (iv) the Department of Agriculture.
        (B) Federal support.--The term ``Federal support'' 
 means, with respect to a loan--
            (i) insurance of the loan by the Federal 
 Housing Administration under title II of the 
 National Housing Act (12 U.S.C. 1707 et seq.);
            (ii) insurance of the loan under 

section 255 of the National Housing Act (12 U.S.C. 
 1715z-20);
            (iii) guarantee of the loan under 

section 184 or 184A of the Housing and Community 
 Development Act of 1992 (12 U.S.C. 1715z-13a, 
 1715z-13b);
            (iv) guarantee or insurance of the loan by 
 the Department of Veterans Affairs;
            (v) guarantee or insurance of the loan by 
 the Department of Agriculture;
            (vi) making of the loan by the Department 
 of Agriculture; or
            (vii) purchase or securitization of the 
 loan by the Federal Home Loan Mortgage 
 Corporation or the Federal National Mortgage 
 Association.
            (C) Squatting.--The term ``squatting'' means the 
 practice of entering a property without the permission 
 of the property owner and residing in that property for 
 14 or more consecutive days without the permission of 
 the property owner and without the payment of rent or a 
 rental contract agreed to by the property owner.

SEC. 407. REALLOCATION OF VOUCHER FUNDING.

 

Section 8

    (o) of the United States Housing Act of 1937 is amended by 
adding at the end the following:
 ``

    (24) Reallocation of amounts.--The Secretary shall, at 
 the end of each fiscal year--
 ``
        (A) recapture from each public housing agency any 
 amounts provided to such public housing agency for 
 tenant-based assistance under paragraph

    (1)
        (A) that 
 such public housing agency did not obligate during such 
 fiscal year; and
 ``
        (B) provide amounts recaptured under subparagrah
        (A) to public housing agencies that used all of the 
 amounts provided to them for tenant-based assistance 
 under paragraph

    (1)
        (A) .''.

 TITLE V--REGULATORY FLEXIBILITY

SEC. 501. AUTHORIZATION OF MOVING TO WORK PROGRAM.

    (a) Program Reforms.--

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) is amended--

    (1) in the section heading, by striking ``demonstration'' 
 and inserting ``program'';

    (2) by striking subsection

    (a) and inserting the following:
 ``

    (a) 

=== Purposes ===
-The purposes of the program under this section are 
as follows:
 ``

    (1) Economic independence.--To develop measures to 
 promote economic independence for families with children whose 
 head of household is working, seeking work, or preparing for 
 work, for able-bodied individuals, and for persons with 
 disabilities who are able to work on a limited basis, to obtain 
 employment and become economically independent, by 
 participating in job training, educational programs, or other 
 supportive services and programs that assist in meeting such 
 goal.
 ``

    (2) Flexibility and cost-effectiveness.--To give public 
 housing agencies and the Secretary of Housing and Urban 
 Development the flexibility to design and implement various 
 approaches for providing and administering housing assistance 
 that reduce cost and achieve greater cost effectiveness in 
 Federal expenditures.
 ``

    (3) Housing choice.--To increase housing choices for low-
 income families.'';

    (3) in subsection

    (b) --
        (A) by striking ``

    (b) Program Authority.--The 
 Secretary'' and inserting the following:
 ``

    (b) Program Authority.--
 ``

    (1) In general.--The Secretary'';
        (B) in the first sentence, by striking ``conduct a 
 demonstration program'' and all that follows through 
 ``Indian housing program and'' and inserting ``carry 
 out a program under this section under which public 
 housing agencies administering the public housing 
 program or'';
            (C) by inserting after the first sentence the 
 following: ``There shall be no limitation on the number 
 of public housing agencies that may participate in the 
 program under this section.'';
            (D) by striking ``The Secretary shall'' and all 
 that follows through ``demonstration.'' and inserting 
 the following:
 ``

    (2) Identification of replicable models.--The Secretary 
 shall provide training and technical assistance under the 
 program and conduct detailed evaluations of various agencies to 
 identify replicable program models promoting the purposes of 
 the program.'';
        (E) by striking ``Under the demonstration'' and 
 inserting the following:
 ``

    (3) Combination of assistance.--Under the program under 
 this section''; and
        (F) by striking ``operating assistance provided 
 under 

section 9 of the United States Housing Act of 
 1937, modernization assistance provided under 

section 14'' and inserting ``amounts provided to the agency 
 from the Operating Fund under 

section 9

    (e) of the 
 United States Housing Act of 1937, amounts provided to 
 the agency from the Capital Fund under 

section 9
            (d) '';

    (4) in subsection
            (c) --
        (A) in the matter preceding paragraph

    (1) , by 
 striking ``demonstration'' and inserting ``program 
 under this section'';
        (B) in paragraph

    (1) , by striking ``9, and 14'' and 
 inserting ``9
            (d) , and 9

    (e) '';
            (C) in paragraph

    (3) --
            (i) in subparagraph
        (A) , by striking 
 ``demonstration'';
            (ii) in subparagraph
        (B) --
            (I) by striking ``self-
 sufficiency'' and inserting ``economic 
 independence''; and
            (II) by striking ``purpose of this 
 demonstration'' and inserting ``purpose 
 of the program under subsection

    (a)

    (1) '';
            (iii) in subparagraph
            (D) , by striking 
 ``demonstration'' and inserting ``program under 
 this section;'';
            (iv) in subparagraph
        (E) , by striking 
 ``demonstration program'' and inserting 
 ``program under this section'';
            (v) by redesignating subparagraphs
        (A) ,
        (B) ,
            (C) ,
            (D) , and
        (E) as subparagraphs
        (B) ,
            (C) ,
            (D) ,
        (G) , and
        (H) , respectively;
            (vi) by inserting before subparagraph
        (B) , 
 as so redesignated, the following:
 ``
        (A) actions to be taken under the proposed 
 program to achieve the purposes of the program under 
 paragraphs

    (1) ,

    (2) , and

    (3) of subsection

    (a) ;''; and
            (vii) by inserting after subparagraph
            (D) , 
 as so redesignated, the following:
 ``
        (E) hardship exceptions consistent with the 
 purposes under subsection

    (a) under which tenants may 
 be temporarily exempted from compliance with the 
 program operated by the agency in the event of 
 extenuating circumstances preventing such compliance 
 and a process that provides tenants with recourse to a 
 speedy determination regarding such an exception and 
 makes available the contents and results of such a 
 determination available to the public and the board of 
 directors or other governing body on request of the 
 tenant concerned or the director or other head official 
 of the agency;
 ``
        (F) providing assisted families and participants 
 in the program operated by the agency with an informal 
 administrative hearing or grievance process, prior to 
 any eviction or termination of assistance, which 
 process shall make the content and determination of the 
 hearing available to the public and the board of 
 directors or other governing body on request of the 
 tenant concerned or the director or other head official 
 of the agency;''; and
            (D) in paragraph

    (4) , by striking ``demonstration'' 
 and inserting ``proposed program'';

    (5) in subsection
            (d) --
        (A) by striking ``
            (d) Selection.--In selecting 
 among applications, the Secretary shall take into 
 account the'' and inserting the following:
 ``
            (d) Applications for Participation.--
 ``

    (1) Submission; standards for participation.--The 
 Secretary shall provide for public housing agencies to submit 
 applications for participation in the program under this 
 section and shall establish, and make public, standards and 
 requirements for participation that further the purposes of 
 this program set forth in subsection

    (a) , which shall--
 ``
        (A) provide that all public housing agencies not 
 designated as troubled pursuant to part 902 or subpart 
 B of part 985, Code of Federal Regulations, at any time 
 during the most recent 2 fiscal years are invited to 
 submit applications for consideration;
 ``
        (B) provide that participation of a public 
 housing agency, upon approval, shall be for a period 
 not shorter than 10 years;
 ``
            (C) include a common set of budget metrics for 
 use under the program that allow for comparison of the 
 performance of different public housing agencies under 
 the program;
 ``
            (D) require that each public housing agency 
 include in its application--
 ``
            (i) a list of innovative proposals to be 
 carried out under the program that are designed 
 to reduce the cost of, and increase the cost-
 efficiency of, housing provided in connection 
 with the program and metrics to assess the 
 progress of the agency toward such goals; and
 ``
            (ii) a list of innovative manners in 
 which the public housing agency will use the 
 authorities under the program to assist 
 families, goals regarding such activities to 
 accomplish on an annual basis, and metrics to 
 assess the progress of the agency toward such 
 goals; and
 ``
        (E) include a plan for using, to the greatest 
 extent feasible, electronic data-matching for income 
 verification services.
 ``

    (2) Determination and notification.--
 ``
        (A) Review and determination.--Upon receipt of an 
 application for participation in the program under this 
 section, the Secretary shall provide for review such 
 application by a selection panel comprised of Federal 
 officials and employees and established by the 
 Secretary for such purpose. Based on such review, such 
 selection panel shall make a determination of whether 
 to approve such agency for participation in the program 
 under this section, based on the criteria under 
 paragraph

    (4) .
 ``
        (B) Notification.--Upon making a determination 
 pursuant to subparagraph
        (A) , the selection panel shall 
 notify the public housing agency, the Secretary, and 
 the governments for any counties and municipalities in 
 which the jurisdiction of the public housing agency is 
 located of such determination. In the case of 
 disapproval of an application, such notice shall 
 include a statement specifying the reasons for such 
 disapproval.
 ``

    (3) Transition.--
 ``
        (A) Numerical limitation.--
 ``
            (i) In general.--The Secretary shall 
 review and process such applications as to 
 enable the transition of not less than 25 
 public housing agencies per year to the program 
 under this section (subject to approvable 
 applications), until such time as there are not 
 25 public housing agencies whose applications 
 merit approval.
 ``
            (ii) Reserved spots for small and rural 
 phas.--Of the applications of public housing 
 agencies approved in each year pursuant to 
 clause
            (i) , not less than 10 shall be 
 applications of public housing agencies that 
 administer, in the aggregate, fewer than 6,000 
 vouchers for rental assistance under 

section 8 
 of the United States Housing Act of 1937 (42 
 U.S.C. 1437f) and public housing dwelling 
 units, except that if for any year the 
 Secretary receives fewer than 10 applications 
 by public housing agencies described in this 
 clause that merit approval, the requirement 
 under this clause shall apply for such year 
 only to the extent of the number of such 
 approvable applications received.
 ``
            (iii) Treatment of new mtw agencies.--Any 
 agency that is newly transitioned under this 
 subparagraph to participation in the program as 
 in effect pursuant to the amendments made by 
 this Act shall count toward fulfillment of the 
 numerical limitation in clause
            (i) , 
 notwithstanding the authority under 

section 239 
 of the Transportation, Housing and Urban 
 Development, and Related Agencies 
 Appropriations Act, 2016 (division L of Public 
 Law 114-113) or any other provision of law 
 other than this section authorizing 
 participation of new agencies.
 ``
        (B) Contract revisions.--The Secretary shall, 
 from time to time and in consultation with public 
 housing agencies, amend contracts for participation by 
 agencies in the program under this section as may be 
 necessary, based on experiences of agencies that have 
 participated in the program, to correct mistakes and 
 better achieve the goals of this program set forth in 
 subsection

    (a) .
 ``
            (C) Renewal of certification.--
 ``
            (i) In general.--The Secretary shall 
 provide that upon expiration of a contract for 
 participation by a public housing agency in the 
 program under this section, to continue 
 participating in the program the agency shall 
 be required to recertify with the Secretary for 
 such renewed participation. The standards and 
 requirements applicable to applications for 
 initial participation in the program shall also 
 apply to applications for renewed participation 
 in the program.
 ``
            (ii) Treatment of numerical limitation.--
 An agency approved for continued participation 
 in the program pursuant to recertification 
 under this subparagraph shall not count toward 
 fulfillment of the numerical limitation in 
 subparagraph
        (A)
            (i) .
 ``

    (4) Criteria.--The Secretary shall establish criteria for 
 approval of applications of public housing agencies for 
 participation in the program under this section, which shall 
 provide for approval of applications that are reasonably 
 designed to carry out the purposes of the program under 
 subsection

    (a) . Such criteria shall take into consideration the 
 capacity and'';
        (B) by striking ``each'' and inserting ``the'';
            (C) by striking ``a program under the 
 demonstration'' and inserting ``the proposed program in 
 the application''; and
            (D) by striking ``an agency'' and inserting ``the 
 agency'';

    (6) in subsection

    (e) --
        (A) in paragraph

    (1) , by striking ``this 
 demonstration'' and inserting ``the program under this 
 section''; and
        (B) in paragraph

    (2) , by striking ``demonstration'' 
 and inserting ``program under this section'';

    (7) in subsection

    (f) , by striking ``

section 9, or pursuant 
 to 

section 14 by a public housing agency participating in the 
 demonstration under this part'' and inserting ``of the United 
 States Housing Act of 1937, or provided from the Operating Fund 
 under 

section 9

    (e) or from the Capital Fund under 

section 9
            (d) of such Act, by a public housing agency participating in the 
 program under this section'';

    (8) in subsection

    (g) --
        (A) in paragraph

    (1) , by inserting ``, including 
 performance in achieving each of the purposes of the 
 program specified in subsection

    (a) '';
        (B) in paragraph

    (2) --
            (i) in the first sentence--
            (I) by inserting ``, and including 
 such content, as shall be'' before 
 ``specified by the Secretary''; and
            (II) by inserting ``, but not less 
 often than annually'' before the period 
 at the end; and
            (ii) by striking subparagraph
            (C) and 
 inserting the following:
 ``
            (C) describe and analyze the effects of the 
 program of the agency and the assisted activities under 
 such program in addressing and achieving the objectives 
 of the program under this section and each of the 
 purposes specified in subsection

    (a) , including the 
 effects of the program on--
 ``
            (i) the number of new families the agency 
 has been able to assist from the waiting lists 
 for housing assistance that is administered by 
 the agency, including vouchers for rental 
 assistance under 

section 8

    (o) of the United 
 States Housing Act of 1937 (42 U.S.C. 1437f

    (o) ) 
 and dwelling units in public housing and in 
 housing assisted with project-based 

section 8 
 assistance, as a result of the flexibility of 
 funds and achievement of economic independence;
 ``
            (ii) the cost and annual change, per 
 family participating in the program, of 
 providing housing assistance referred to in 
 clause
            (i) that is administered by the agency;
 ``
            (iii) any cost savings and additional 
 housing resulting from the program;
 ``
            (iv) the household incomes, and changes 
 in such incomes, of members of families 
 participating in the program who are not exempt 
 from work requirements; and
 ``
            (v) such other factors as the Secretary 
 considers appropriate.'';
            (C) by redesignating paragraphs

    (3) and

    (4) as 
 paragraphs

    (5) and

    (6) ; and
            (D) by inserting after paragraph

    (2) the following 
 new paragraphs:
 ``

    (3) Annual budget plan.--
 ``
        (A) Requirement.--Each agency shall submit 
 annually to the Secretary, together with the report 
 under paragraph

    (2) , a budget plan for the program of 
 the agency for the upcoming year and shall make such 
 budget plan publicly available.
 ``
        (B) Form and metrics.--Each annual budget plan 
 shall be set forth in a standard form, prescribed by 
 the Secretary and shall utilize a common budget metric 
 that allows for comparison of the budget plans of all 
 public housing agencies participating in the program.
 ``
            (C) Content.--Each annual budget plan shall 
 include such content as the Secretary shall specify, 
 which shall include--
 ``
            (i) a description and explanation of all 
 new rules and policy changes adopted by the 
 agency in accordance with this section and the 
 program under this section and, with respect to 
 such new rules and policy changes--
 ``
            (I) a description of the effect 
 such rules and changes will have on the 
 operation of the agency as compared to 
 the preceding year and as compared to 
 the operations of the agency other than 
 under the program under this section;
 ``
            (II) a description of the extent 
 to which such rules and changes helped 
 to achieve the annual goals identified 
 in the public housing agency's 
 application pursuant to subsection
            (d) (1)
        (E) and, in the case of any such 
 goals not achieved, a description of 
 the extent to which such goals were not 
 achieved and the reasons for such 
 failure; and
 ``
            (III) whether the adoption of 
 such new rules and policy changes 
 required an adjustment in the annual 
 goals identified in the public housing 
 agency's application pursuant to 
 subsection
            (d) (1) ;
 ``
            (ii) a plan for all capital assets and 
 anticipated construction and rehabilitation 
 activities of the public housing agency in the 
 upcoming year and a description of whether and 
 how such activities are authorized and assisted 
 under the program under this section; and
 ``
            (iii) assurances satisfactory to the 
 Secretary that such plan will conform with all 
 applicable provisions of the Civil Rights Act 
 of 1964 (42 U.S.C. 2000d et seq.), the Fair 
 Housing Act (42 U.S.C. 3601 et seq.), the 
 Rehabilitation Act of 1973 (29 U.S.C. 701 et 
 seq.), and the Americans with Disabilities Act 
 of 1990 (42 U.S.C. 12101 et seq.).
 ``

    (4) Public and resident participation.--
 ``
        (A) Notification of residents.--Each public 
 housing agency shall annually hold a meeting to notify 
 all assisted families participating in the program of 
 the public housing agency of the contents of the report 
 under paragraph

    (2) for such year and budget plan under 
 paragraph

    (3) for such year and impacts on such 
 assisted families. Any public housing agency that 
 assists, in the aggregate, more than 50,000 families or 
 assists families in multiple counties shall hold as 
 many meetings as necessary to provide each assisted 
 family a good-faith opportunity to attend such a 
 meeting.
 ``
        (B) Public comment.--Each annual report under 
 paragraph

    (2) and annual plan under paragraph

    (3) shall--
 ``
            (i) be made available for inspection and 
 public comment 30 days before the meeting 
 required by subparagraph
        (A) regarding such 
 plan or report; and
 ``
            (ii) be approved in a public meeting of 
 the board of directors or other governing body 
 of the public housing agency before submission 
 to the Secretary.
 ``
            (C) Public availability.--Each annual report 
 under paragraph

    (2) and annual plan under paragraph

    (3) shall, upon submission to the Secretary, be made 
 publicly available and shall include all comments 
 provided pursuant to subparagraph
        (B) .'';

    (9) in subsection

    (h) --
        (A) in paragraph

    (1) , by striking ``demonstration'' 
 and inserting ``program under this section''; and
        (B) by striking paragraph

    (2) and inserting the 
 following:
 ``

    (2) Review.--The Secretary shall annually review the 
 activities of each public housing agency participating in the 
 program under this section and, based on such review and the 
 information submitted by the agency pursuant to subsection

    (g) , 
 determine--
 ``
        (A) the impact and effectiveness of the public 
 housing agency's program and activities in achieving 
 each of the purposes of the program specified in 
 subsection

    (a) , including an assessment of such impact 
 and effectiveness using the common set of budget 
 metrics established pursuant to subsection
            (d) (1)
            (D) ;
 ``
        (B) the progress of the public housing agency 
 toward meeting the goals identified in the public 
 housing agency's application pursuant to subsection
            (d) (1)
        (E) , using the metrics identified in the public 
 housing agency's application pursuant to such 
 subsection; and
 ``
            (C) the extent of compliance by the public 
 housing agency with the requirements of the program 
 under this section and, in determining such extent of 
 compliance, shall take into consideration the unique 
 characteristics of the public housing agency.
 ``

    (3) Verification of accuracy.--In assessing information 
 submitted by public housing agencies pursuant to subsection

    (g) and in reviewing such information and making determinations 
 pursuant to paragraph

    (2) of this subsection, the Secretary 
 shall carry out control activities and procedures designed to 
 verify the accuracy of such information, which shall include 
 auditing a representative sample of such information using 
 standard statistical methods.
 ``

    (4) Continued participation.--The Secretary shall not 
 terminate the participation of any public housing agency in the 
 program under this section unless the Secretary finds that the 
 agency--
 ``
        (A) is in material default of the conditions and 
 obligations under the agreement entered into between 
 the agency and the Secretary providing for such 
 participation;
 ``
        (B) as demonstrated in its reports under 
 subsection

    (g)

    (2) and its annual budget plans under 
 subsection

    (g)

    (3) , has persistently failed to meet the 
 goals identified in its application, and the reasons or 
 circumstances specified in the public housing agency's 
 reports and plans for such failure are not sufficient 
 to justify the continued failure;
 ``
            (C) has misused or misappropriated funds;
 ``
            (D) has failed to make a good faith effort to 
 carry out the purposes of the program specified in 
 subsection

    (a) ; or
 ``
        (E) has failed to cure a material deficiency in 
 performance after notice and an opportunity to correct 
 the deficiency.
 ``

    (5) Corrective action program.--The Secretary shall carry 
 out a program--
 ``
        (A) to identify public housing agencies 
 participating in the program under this section that 
 are at risk of termination of such participation 
 pursuant to paragraph

    (6) ;
 ``
        (B) to consult with such public housing agencies 
 regarding actions that may be taken to avoid such 
 termination;
 ``
            (C) to establish goals and timelines for such 
 corrective actions; and
 ``
            (D) to provide appropriate technical assistance 
 designed to facilitate such actions and avoid such 
 termination.
 ``

    (6) Termination of participation.--Any public housing 
 agency whose participation in the program under this section is 
 terminated shall be subject to the provisions of the United 
 States Housing Act of 1937 (42 U.S.C. 1437 et seq.) and all 
 other provisions of law applicable to public housing agencies 
 not participating in the program, except that the Secretary 
 shall provide a transition period, that begins upon such 
 termination and is not shorter than 18 months, for such public 
 housing agencies to come into compliance with such laws.
 ``

    (7) Reports to congress.--Not later than the expiration 
 of the 5-year period beginning on the date of the enactment of 
 this Act, and not later than the expiration of each successive 
 5-year period thereafter, the Secretary shall submit a report 
 to the Congress regarding the program under this section and 
 the results of the reviews conducted under paragraph

    (2) , which 
 shall--
 ``
        (A) evaluate the programs carried out by public 
 housing agencies participating in the program, 
 including with respect to each of the purposes 
 specified in subsection

    (a) ; and
 ``
        (B) include findings and recommendations for 
 appropriate legislative changes to the program.
 ``

    (8) GAO reviews and reports.--Not later than 180 days 
 after the date of enactment of this Act, and not less 
 frequently than every 8 years thereafter, the Comptroller 
 General of the United States shall--
 ``
        (A) conduct and complete a review of the program 
 under this section, which shall include examination and 
 analysis of the implementation of the program and 
 identification of any shortcomings and any means for 
 improving the program; and
 ``
        (B) submit to the Congress a report regarding the 
 review, which shall set forth a detailed description of 
 such implementation, any shortcomings of the program 
 identified, and recommendations for improving the 
 program.'';

    (10) in subsection
            (i) --
        (A) in the matter preceding paragraph

    (1) , by 
 striking ``

section 14 of the United States Housing Act 
 of 1937 for fiscal years 1996, 1997, and 1998'' and 
 inserting ``the Capital Fund under 

section 9
            (d) of the 
 United States Housing Act of 1937 in each fiscal 
 year''; and
        (B) in paragraph

    (1)
        (B) , by striking ``up to 10''; 
 and

    (11) by striking subsection

    (j) .

    (b) Treatment of Participating Agencies.--

    (1) Continuation of participation.--This section and the 
 amendments made by this section shall not affect the status of 
 any public housing agency that, as of the date of the enactment 
 of this Act, is participating in the Moving to Work Program 
 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), as such a 
 participating agency.

    (2) Election.--Any public housing agency referred to in 
 paragraph

    (1) may elect--
        (A) to continue participation in the Program 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) under 
 the terms of the agreement entered into between the 
 agency and the Secretary providing for such 
 participation until the date of the expiration of such 
 agreement; or
        (B) at any time before date of the expiration of 
 such agreement, to transition to participation under 
 the program under such 

section 204, as amended by this 
 Act.

    (3) Conversion to reformed program.--
        (A) In general.--Except as provided in subparagraph
        (B) of this paragraph, any public housing agency that 
 elects pursuant to paragraph

    (2)
        (A) of this subsection 
 to continue participation in the Program 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) shall, 
 upon the expiration of the agreement referred to in 
 such paragraph, be considered to have been approved for 
 participation in the Program under such 

section 204, as 
 amended by this Act, and the Secretary of Housing and 
 Urban Development shall provide for the transition of 
 the agency to participation under the Program under 
 such section as so amended.
        (B) Inapplicability.--Subparagraph
        (A) shall not 
 apply to any public housing agency that is determined 
 by the Secretary to be in material default, upon the 
 expiration of the agreement referred to in paragraph

    (2)
        (A) , of the conditions and obligations under such 
 agreement.

    (4) Inapplicability of numerical limitation.--Any public 
 housing agency transitioned pursuant to paragraph

    (2)
        (B) or

    (3)
        (A) of this subsection to participation under the program 
 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), as amended by 
 this section, shall not count toward fulfillment of the 
 numerical limitation under 

section 204
            (d) (3)
        (A) of the 
 Departments of Veterans Affairs and Housing and Urban 
 Development, and Independent Agencies Appropriations Act, 1996 
 (42 U.S.C. 1437f note), as added by the amendment made by this 
 section.

SEC. 502. RESCISSION OF PUBLIC AND INDIAN HOUSING NOTICE 2021-18.

 The Public and Indian Housing Notice 2021-18 of the Department of 
Housing and Urban Development is hereby rescinded.

 TITLE VI--IMPROVING FINANCIAL LITERACY REGARDING HOUSING

SEC. 601. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY 
 PROGRAMS.

    (a) In General.--

Section 106

    (a)

    (4) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701x

    (a)

    (4) ) is amended--

    (1) in subparagraph
        (B) --
        (A) by striking ``The Secretary'' and inserting the 
 following:
 ``
            (i) In general.--The Secretary''; and
        (B) by adding at the end the following:
 ``
            (ii) Requirement.--The Secretary shall 
 require each organization receiving assistance 
 under this paragraph to employ individuals 
 providing housing counseling who--
 ``
            (I) are certified to understand 
 sustainable homeownership; and
 ``
            (II) pass required examinations 
 that determine the ability of the 
 individual to counsel borrowers on 
 responsible homeownership.
 ``
            (iii) Suspension of certification.--If an 
 individual employed by an organization that 
 receives assistance under this paragraph 
 provides counseling services to borrowers who, 
 after receiving those services, have default 
 rates that exceed the average default rates for 
 borrowers counseled by individuals in the area 
 served by the organization, the Secretary--
 ``
            (I) shall suspend the 
 certification from the individual; and
 ``
            (II) may deny future assistance 
 under this paragraph to that 
 organization.
 ``
            (iv) Prohibition on lobbying 
 activities.--An organization that applies for 
 or receives assistance under this paragraph 
 shall not engage in political activities, 
 advocacy, or lobbying, whether directly or 
 through other parties.''; and

    (2) by adding at the end the following:
 ``
        (F) Set asides.--The Secretary shall set aside 40 
 percent of amounts authorized to carry out this 
 paragraph for organizations that provide rental 
 counseling or pre-foreclosure counseling.
 ``
        (G) Geographic diversity.--In making grants under 
 this paragraph, the Secretary shall ensure that the 
 recipients are geographically diverse and include 
 organizations that serve urban and rural areas.''.

    (b) Requiring Prepurchase and Foreclosure Mitigation Counseling.--

    (1) Covered mortgage loan defined.--In this subsection, the 
 term ``covered mortgage loan'' means any loan which is secured 
 by a first or subordinate lien on residential real property 
 (including individual units of condominiums and cooperatives) 
 designed principally for the occupancy of from 1- to 4-families 
 that is--
        (A) insured by the Federal Housing Administration 
 under title II of the National Housing Act (12 U.S.C. 
 1707 et seq.);
        (B) insured under 

section 255 of the National 
 Housing Act (12 U.S.C. 1715z-20);
            (C) guaranteed under 

section 184 or 184A of the 
 Housing and Community Development 3 Act of 1992 (12 
 U.S.C. 1715z-13a, 1715z-4 13b);
            (D) guaranteed or insured by the Department of 
 Agriculture; or
        (E) made by the Department of Agriculture.

    (2) Requirement for purchasers.--Before purchasing 
 residential real property that secures a covered mortgage loan, 
 the purchaser shall participate in prepurchase housing 
 counseling.

    (3) Requirement for borrowers.--A borrower with respect to 
 a covered mortgage loan who is 30 days or more delinquent on 
 payments for the covered mortgage loan shall participate in 
 foreclosure mitigation counseling.
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