HOME Investment Partnerships Reauthorization and Improvement Act

(a) Authorization Section 205 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows: 205. Authorization of program The HOME Investment Partnerships Program under subtitle A is hereby authorized. There is authorized such sums as may be necessary to carry out subtitle A.. (b) Increase in Program administration resources Subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et seq.) is amended— (1) in section 212(c) (42 U.S.C. 12742(c)), by striking 10 percent and inserting 15 percent; and (2) in section 220(b) (42 U.S.C. 12750(b))— (A) by striking Recognition.— and all that follows through A contribution and inserting the following: Recognition.— A contribution; and (B) by striking paragraph (2). (c) Modification of jurisdictions eligible for reallocations Section 217(d)(3) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(d)(3)) is amended by striking Limitation.—Unless otherwise specified and inserting the following: " Limitations.— (A) Removal of participating jurisdictions from reallocation The Secretary may, upon a finding that such jurisdiction has failed to meet or comply with the requirements of this title, remove a participating jurisdiction from participation in reallocations of funds made available under this title. (B) Reallocation to same type of entity Unless otherwise specified. (d) Amendments to qualification as affordable housing Section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745) is amended— (1) in subsection (a)— (A) in paragraph (1)(E), by striking all that follows purposes of this Act, and inserting the following: “except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action— (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and (ii) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; and; and (B) by adding at the end the following: (7) Small-scale housing (A) Definition In this paragraph, the term small-scale housing means housing with not more than 4 rental units. (B) Alternative requirements Small-scale housing shall qualify as affordable housing under this title if— (i) the housing bears rents that comply with paragraph (1)(A); (ii) each unit is occupied by a household that qualifies as a low-income family; (iii) the housing complies with paragraph (1)(D); (iv) the housing meets the requirements under paragraph (1)(E); and (v) the participating jurisdiction monitors ongoing compliance of the housing with requirements of this title in a manner consistent with the purposes of section 226(b), as determined by the Secretary.; and (2) in subsection (b)(1), by inserting (defined as the amount borrowed by the homebuyer to purchase the home, or estimated value after rehabilitation, which may be adjusted to account for the limits on future value imposed by the resale restriction) after purchase price. (e) Elimination of commitment deadline (1) In general Section 218 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is amended— (A) by striking subsection (g); and (B) by redesignating subsection (h) as subsection (g). (2) Conforming amendment Section 218(c) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748(c)) is amended— (A) in paragraph (1), by adding and at the end; (B) by striking paragraph (2); (C) by redesignating paragraph (3) as paragraph (2); and (D) in paragraph (2), as so redesignated, by striking section 224 and inserting section 223. (f) Reform of homeownership resale restrictions Section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745), as amended by this section, is amended— (1) in subsection (b)— (A) in paragraph (2), by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and adjusting the margins accordingly; (B) by striking paragraph (3); (C) by redesignating paragraphs (1), (2), and (4) as subparagraphs (A), (B), and (D), respectively, and adjusting the margins accordingly; (D) by inserting after subparagraph (B), as so redesignated, the following: (C) is subject to restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate, including with respect to the useful life of the property, to— (i) require that any subsequent purchase of the property be— (I) only by a person who meets the qualifications specified under subparagraph (B); and (II) at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or (ii) recapture the investment provided under this title in order to assist other persons in accordance with the requirements of this title, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance; and; (E) by striking Housing that is for homeownership and inserting the following: (1) Qualification Housing that is for homeownership; and (F) by adding at the end the following: (2) Purchase by community land trust Notwithstanding subparagraph (C)(i) of paragraph (1) and under terms determined by the Secretary, the Secretary may permit a participating jurisdiction to allow a community land trust that used assistance provided under this subtitle for the development of housing that meets the criteria under paragraph (1), to acquire the housing— (A) in accordance with the terms of the preemptive purchase option, lease, covenant on the land, or other similar legal instrument of the community land trust when the terms and rights in the preemptive purchase option, lease, covenant, or legal instrument are and remain subject to the requirements of this title; (B) when the purchase is for— (i) the purpose of— (I) entering into the chain of title; (II) enabling a purchase by a person who meets the qualifications specified under paragraph (1)(B) and is on a waitlist maintained by the community land trust, subject to enforcement by the participating jurisdiction of all applicable requirements of this subtitle, as determined by the Secretary; (III) performing necessary rehabilitation and improvements; or (IV) adding a subsidy to preserve affordability, which may be from Federal or non-Federal sources; or (ii) another purpose determined appropriate by the Secretary; and (C) if, within a reasonable period of time after the applicable purpose under subparagraph (B) of this paragraph is fulfilled, as determined by the Secretary, the housing is then sold to a person who meets the qualifications specified under paragraph (1)(B). (3) Suspension or waiver of requirements for military members A participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive a requirement under paragraph (1)(B) with respect to housing that otherwise meets the criteria under paragraph (1) if the owner of the housing— (A) is a member of a regular component of the armed forces or a member of the National Guard on full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as those terms are defined in section 101(d) of title 10, United States Code); and (B) has received— (i) temporary duty orders to deploy with a military unit or military orders to deploy as an individual acting in support of a military operation, to a location that is not within a reasonable distance from the housing, as determined by the Secretary, for a period of not less than 90 days; or (ii) orders for a permanent change of station. (4) Suspension or waiver of requirements for heir or beneficiary of deceased owner Notwithstanding subparagraph (C) of paragraph (1), housing that meets the criteria under that paragraph prior to the death of an owner may continue to qualify as affordable housing if— (A) the housing is the principal residence of an heir or beneficiary of the deceased owner, as defined by the Secretary; and (B) the heir or beneficiary, in accordance with terms established by the Secretary, assumes the duties and obligations of the deceased owner with respect to funds provided under this title.. (g) Home property inspections Section 226(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12756(b)) is amended— (1) by striking Each participating jurisdiction and inserting the following: (1) In general Each participating jurisdiction; and (2) by striking Such review shall include and all that follows and inserting the following: (2) On-site inspections (A) Inspections by units of general local government A review conducted under paragraph (1) by a participating jurisdiction that is a unit of general local government shall include an on-site inspection to determine compliance with housing codes and other applicable regulations. (B) Inspections by States A review conducted under paragraph (1) by a participating jurisdiction that is a State shall include an on-site inspection to determine compliance with a national standard as determined by the Secretary. (3) Inclusion in performance report and publication A participating jurisdiction shall include in the performance report of the participating jurisdiction submitted to the Secretary under section 108(a), and make available to the public, the results of each review conducted under paragraph (1).. (h) Revisions to strengthen enforcement and penalties for noncompliance Section 223 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12753) is amended— (1) in the heading, by striking Penalties for misuse of funds and inserting Program enforcement and penalties for noncompliance; (2) in the matter preceding paragraph (1), by inserting after any provision of this subtitle the following:, including any provision applicable throughout the period required by section 215(a)(1)(E) and applicable regulations,; (3) in paragraph (2), by striking or at the end; (4) in paragraph (3), by striking the period at the end and inserting; or; and (5) by adding at the end the following: (4) reduce payments to the participating jurisdiction under this subtitle by an amount equal to the amount of such payments which were not expended in accordance with this title.. (i) Tenant and participant protections for small-scale affordable housing Section 225 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12755) is amended by adding at the end the following: (e) Tenant selection for small-scale housing Paragraphs (2) through (4) of subsection (d) shall not apply to the owner of small-scale housing (as defined in section 215(a)(7)).. (j) Modification of rules related to community housing development organizations (1) Definitions of community housing development organization and community land trust (A) In general Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended— (i) in paragraph (6)(B)— (I) by striking significant; and (II) by striking and otherwise and inserting or as otherwise determined acceptable by the Secretary; and (ii) by adding at the end the following: (26) The term community land trust means a nonprofit entity or a State or local government or instrumentality thereof that— (A) is not managed by, or an affiliate of, a for-profit organization; (B) has as a primary purpose acquiring, developing, or holding land to provide housing that is permanently affordable to low- and moderate-income persons, and monitors properties to ensure affordability is preserved; (C) provides housing described in subparagraph (B) using a ground lease, deed covenant, or other similar legally enforceable measure, as determined by the Secretary, that— (i) keeps the housing affordable to low- and moderate-income persons for not less than 30 years; and (ii) enables low- and moderate-income persons to rent or purchase the housing for homeownership; and (D) maintains preemptive purchase options to purchase the property so the housing remains affordable to low-and moderate-income persons.. (B) Elimination of existing definition of community land trust Section 233 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12773) is amended by striking subsection (f). (2) Set-aside for community housing development organizations Section 231 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12771) is amended— (A) in subsection (a), by striking to be developed, sponsored, or owned by community housing development organizations and inserting when a community housing development organization materially participates in the ownership or development of such housing, as determined by the Secretary; (B) by striking subsection (b) and inserting the following: (b) Recapture and reuse If any funds reserved under subsection (a) remain uninvested for a period of 24 months, then the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under this title without regard to whether a community housing development organization materially participates in the use of the funds.; and (C) by striking subsection (c). (k) Technical corrections The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended— (1) in section 104 (42 U.S.C. 12704)— (A) by redesignating paragraph (23) (relating to the definition of the term to demonstrate to the Secretary) as paragraph (22); and (B) by redesignating paragraph (24) (relating to the definition of the term insular area, as added by section 2(2) of Public Law 102–230) as paragraph (23); (2) in section 105(b) (42 U.S.C. 12705(b))— (A) in paragraph (7), by striking Stewart B. McKinney Homeless Assistance Act and inserting McKinney-Vento Homeless Assistance Act; and (B) in paragraph (8), by striking subparagraphs and inserting paragraphs; (3) in section 106 (42 U.S.C. 12706), by striking Stewart B. McKinney Homeless Assistance Act and inserting McKinney-Vento Homeless Assistance Act; (4) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by striking section 105(b)(15) and inserting section 105(b)(18); (5) in section 212 (42 U.S.C. 12742)— (A) in subsection (a)— (i) in paragraph (3)(A)(ii), by inserting United States before Housing Act; and (ii) by redesignating paragraph (5) as paragraph (4); (B) in subsection (d)(5), by inserting United States before Housing Act; and (C) in subsection (e)(1)— (i) by striking section 221(d)(3)(ii) and inserting section 221(d)(4); and (ii) by striking not to exceed 140 percent and inserting as determined by the Secretary; (6) in section 215(a)(6)(B) (42 U.S.C. 20 12745(a)(6)(B)), by striking grand children and inserting grandchildren; (7) in section 217 (42 U.S.C. 12747)— (A) in subsection (a)— (i) in paragraph (1), by striking (3) and inserting (2); (ii) by striking paragraph (3), as added by section 211(a)(2)(D) of the Housing and Community Development Act of 1992 (Public Law 102–550; 106 Stat. 3756); and (iii) by redesignating the remaining paragraph (3), as added by the matter under the heading Home investment partnerships program under the heading Housing programs in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1993 (Public Law 102–389; 106 Stat. 1581), as paragraph (2); and (B) in subsection (b)— (i) in paragraph (1)— (I) in the first sentence of subparagraph (A)— (aa) by striking in regulation and inserting, by regulation,; and (bb) by striking eligible jurisdiction and inserting eligible jurisdictions; and (II) in subparagraph (F)— (aa) in the first sentence— (AA) in clause (i), by striking Subcommittee on Housing and Urban Affairs and inserting Subcommittee on Housing, Transportation, and Community Development; and (BB) in clause (ii), by striking Subcommittee on Housing and Community Development of the Committee on Banking, Finance and Urban Affairs and inserting Subcommittee on Housing and Insurance of the Committee on Financial Services; and (bb) in the second sentence, by striking the Committee on Banking, Finance and Urban Affairs of the House of Representatives and inserting the Committee on Financial Services of the House of Representatives; (ii) in paragraph (2)(B), by striking $500,000 each place that term appears and inserting $750,000; (iii) in paragraph (3)— (I) by striking $500,000 each place that term appears and inserting $750,000; and (II) by striking, except as provided in paragraph (4); and (iv) by striking paragraph (4); (8) in section 220(c) (42 U.S.C. 12750(c))— (A) in paragraph (3), by striking Secretary and all that follows and inserting Secretary;; (B) in paragraph (4), by striking under this title and all that follows and inserting under this title;; and (C) by redesignating paragraphs (6), (7), and (8) as paragraphs (5), (6), and (7), respectively; (9) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by striking for the first place that term appears; and (10) in section 283 (42 U.S.C. 12833)— (A) in subsection (a), by striking Banking, Finance and Urban Affairs and inserting Financial Services; and (B) in subsection (b), by striking General Accounting Office each place that term appears and inserting Government Accountability Office.