Homesteading and Neighborhood Restoration Act of 1995

Summary: Homesteading and Neighborhood Restoration Act of 1995 - Directs the Secretary of Housing and Urban Development to make grants to:  (1) Habitat for Humanity International, whose headquarters are in Americus, Georgia; and (2) other national or regional organizations or consortia with experience in providing self-help housing homeownership opportunities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homesteading and Neighborhood 
Restoration Act of 1995''.

SEC. 2. ASSISTANCE FOR HABITAT FOR HUMANITY AND OTHER SELF-HELP HOUSING 
              PROVIDERS.

    (a) Grant Authority.--The Secretary shall, to the extent that 
amounts are made available to carry out this section and the 
requirements of this section are met, make grants for use in accordance 
with this section to--
            (1) Habitat for Humanity International, whose 
        organizational headquarters are located in Americus, Georgia; 
        and
            (2) other national or regional organizations or consortia 
        that have experience in providing or facilitating self-help 
        housing homeownership opportunities.
    (b) Goals and Accountability.--
            (1) Goals.--In making grants under this section, the 
        Secretary shall take such actions as may be necessary to ensure 
        that--
                    (A) assistance provided under this section is used 
                to facilitate and encourage innovative homeownership 
                opportunities through the provision of self-help 
                housing, under which the homeowner contributes a 
                significant amount of sweat equity toward the 
                construction of the new dwelling;
                    (B) assistance provided under this section for land 
                acquisition and infrastructure development results in 
                the development of not less than 5,000 new dwellings;
                    (C) the dwellings constructed in connection with 
                assistance provided under this section are dwellings 
                that comply with local building and safety codes and 
                standards and are available at prices below the 
                prevailing market prices;
                    (D) the provision of assistance under this section 
                establishes and fosters a partnership between the 
                Federal Government and Habitat for Humanity 
                International, the affiliates thereof, and other 
                organizations and consortia, resulting in efficient 
                development of affordable housing with minimal 
                governmental intervention, limited governmental 
                regulation, and significant involvement by private 
                entities;
                    (E) activities to develop housing assisted pursuant 
                to this section involve community participation similar 
                to the homeownership program carried out by Habitat for 
                Humanity International, in which volunteers assist in 
                the construction of dwellings; and
                    (F) dwellings are developed in connection with 
                assistance under this section on a geographically 
                diverse basis, which includes areas having high housing 
                costs, rural areas, and areas underserved by other 
                homeownership opportunities that are populated by low-
                income families that are otherwise unable to afford 
                housing.
            (2) Accountability.--If, at any time, the Secretary 
        determines that the goals under this subsection cannot be met 
        by providing assistance in accordance with the terms of this 
        section, the Secretary shall immediately notify the applicable 
        committees in writing of such determination and any proposed 
        changes to such goals or to this section.
    (c) Allocation.--Of any amounts available for grants under this 
section--
            (1) 50 percent shall be used for a grant to the 
        organization specified in subsection (a)(1); and
            (2) 50 percent shall be used for grants to organizations 
        and consortia under subsection (a)(2).
    (d) Use.--
            (1) Purpose.--Amounts from grants made under this section 
        shall be used only for eligible expenses in connection with 
        developing new decent, safe, and sanitary nonluxury dwellings 
        in the United States for families and persons who are otherwise 
        unable to afford to purchase a dwelling.
            (2) Eligible expenses.--
                    (A) Costs included.--For purposes of paragraph (1), 
                the term ``eligible expenses'' means costs only for the 
                following activities:
                            (i) Land acquisition.--Acquiring land 
                        (including financing and closing costs).
                            (ii) Infrastructure improvement.--
                        Installing, extending, constructing, 
                        rehabilitating, or otherwise improving 
                        utilities and other infrastructure.
                    (B) Costs not included.--The term does not include 
                any costs for the rehabilitation, improvement, or 
                construction of dwellings.
    (e) Establishment of Grant Fund.--
            (1) In general.--Any amounts from any grant made under this 
        section shall be deposited by the grantee organization or 
        consortium in a fund that is established by such organization 
        or consortium for such amounts, administered by such 
        organization or consortium, and available for use only in 
        accordance with subsection (d). Any interest, fees, or other 
        earnings of the fund shall be deposited in the fund and shall 
        be considered to be grant amounts for purposes of this section.
            (2) Assistance to habitat for humanity international 
        affiliates.--Habitat for Humanity International may use amounts 
        in the fund established for such organization pursuant to 
        paragraph (1) in accordance with subsection (d) by providing 
        assistance from the fund to local affiliates of such 
        organization.
    (f) Requirements for Assistance to Other Organizations.--The 
Secretary may make a grant to an organization or consortium under 
subsection (a)(2) only pursuant to--
            (1) an expression of interest by such organization or 
        consortium to the Secretary for a grant for such purposes;
            (2) a determination by the Secretary that the organization 
        or consortium has the capability and has obtained financial 
        commitments (or has the capacity to obtain financial 
        commitments) necessary to--
                    (A) develop not less than 50 dwellings in 
                connection with the grant amounts; and
                    (B) otherwise comply with a grant agreement under 
                subsection (i); and
            (3) a grant agreement entered into under subsection (i).
    (g) Treatment of Unused Amounts.--Upon the expiration of the 6-
month period beginning on the date on which the Secretary initially 
provides notice of the availability of amounts for grants under 
subsection (a)(2), the Secretary shall determine whether the amount 
remaining from the aggregate amount reserved under subsection (c)(2) 
exceeds the amount needed to provide funding in connection with any 
expressions of interest under subsection (f)(1) made by such date that 
are likely to result in grant agreements under subsection (i). If the 
Secretary determines that such excess amounts remain, the Secretary 
shall provide the excess amounts to Habitat for Humanity International 
by making a grant to that organization in accordance with this section.
    (h) Geographic Diversity.--
            (1) Use of grant amounts.--In using grant amounts provided 
        under subsection (a)(1), Habitat for Humanity International 
        shall make reasonable efforts to ensure that the amounts are 
        used in a manner that results in national geographic diversity 
        among housing developed using such amounts.
            (2) Making grants.--In making grants under subsection 
        (a)(2), the Secretary shall make reasonable efforts to ensure 
        that grants are provided and grant amounts are used in a manner 
        that results in national geographic diversity among housing 
        developed using grant amounts under this section.
    (i) Grant Agreement.--A grant under this section shall be made only 
pursuant to a grant agreement entered into by the Secretary and the 
organization or consortium receiving the grant, which shall--
            (1) require such organization or consortium to use grant 
        amounts only as provided in this section;
            (2) provide for the organization or consortium to develop a 
        specific and reasonable number of dwellings using the grant 
        amounts, which number shall be established taking into 
        consideration costs and economic conditions in the areas in 
        which the dwellings will be developed, but in no case shall be 
        less than 50;
            (3) require the organization or consortium to use the grant 
        amounts in a manner that leverages other sources of funding 
        (other than grants under this section), including private or 
        public funds, in developing the dwellings;
            (4) require the organization or consortium to comply with 
        the other provisions of this section;
            (5) in the case only of a grant under subsection (a)(2), 
        provide that if the organization or consortium has not used any 
        grant amounts during the 24-month period beginning on the date 
        on which such amounts are initially disbursed to the 
        organization or consortium, the Secretary shall recapture such 
        unused amounts; and
            (6) contain such other terms as the Secretary may require 
        to provide for compliance with subsection (b) and the 
        requirements of this section.
    (j) Grant Payments.--
            (1) One-step disbursement.--With respect to any grant under 
        subsection (a)(2) in an amount less than $8,000,000, the 
        Secretary shall make the total amount of the grant available to 
        the grantee organization or consortium upon entering into the 
        grant agreement under subsection (i) and providing notice under 
        paragraph (3).
            (2) Two-step disbursement.--With respect to the grant under 
        subsection (a)(1) and any grant under subsection (a)(2) in an 
        amount equal to or exceeding $8,000,000, the Secretary shall 
        disburse the grant amounts in 2 equal payments, as follows:
                    (A) Initial payment.--The first payment shall be 
                made available to the grantee organization or 
                consortium upon entering into the grant agreement under 
                subsection (i) and providing notice under paragraph 
                (3).
                    (B) Final payment.--The second payment shall be 
                made available to the organization or consortium 
                subject to the following requirements:
                            (i) Notice.--The amounts may not be made 
                        available until 30 days after the Secretary 
                        certifies to the applicable committees that the 
                        grant amounts provided under subparagraph (A) 
                        to the organization or consortium have been 
                        used in accordance with this section to develop 
                        the new dwellings required under the grant 
                        agreement.
                            (ii) Fulfillment of grant agreement.--If 
                        the Secretary determines that the organization 
                        or consortium has not, during the 24-month 
                        period beginning on the date on which amounts 
                        are initially made available under subparagraph 
                        (A) to the organization or consortium, 
                        substantially fulfilled the obligations under 
                        the grant agreement, including development of 
                        the appropriate number of dwellings under the 
                        agreement, the Secretary shall provide any 
                        undisbursed amounts remaining from such grant 
                        to Habitat for Humanity International by making 
                        a grant to such organization in accordance with 
                        this section.
            (3) Notification to congress.--Notification under this 
        paragraph is written notification to the applicable committees 
        of a grant, the amount of the grant, and the terms of the grant 
        agreement.
            (4) Failure to report.--If the Secretary fails to report to 
        the applicable committees as required in this subsection, the 
        Secretary may not make any grant under this section after that 
        failure and may not disburse any amounts under any grant made 
        prior to that failure.
    (k) Records and Audits.--During the period beginning on the date on 
which a grant is made under this section and ending on close-out of the 
grant under subsection (l)--
            (1) the grantee organization or consortium shall keep such 
        records and adopt such administrative practices as the 
        Secretary may require to ensure compliance with the provisions 
        of this section and the grant agreement; and
            (2) the Secretary and the Comptroller General of the United 
        States, and any of their duly authorized representatives shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records of the grantee 
        organization or consortium and the affiliates thereof that are 
        pertinent to the grant made under this section.
    (l) Close-Out.--
            (1) In general.--The Secretary shall close out a grant made 
        under this section upon determining that the aggregate amount 
        of any assistance provided from the fund established under 
        subsection (d)(1) by the grantee organization or consortium 
        exceeds the amount of the grant. For purposes of this 
        paragraph, any interest, fees, and other earnings of the fund 
        shall be excluded from the amount of the grant.
            (2) Effect.--After a close-out under paragraph (1), no 
        grantee organization or consortium, or any affiliates thereof, 
        may be required to comply with any provision of this section or 
        the grant agreement or to account to the Secretary for use of 
        grant amounts.
    (m) Environmental Review.--A grant under this section shall be 
considered to be funds for a special project for purposes of section 
305(c) of the Multifamily Housing Property Disposition Reform Act of 
1994.
    (n) Report to Congress.--Not later than 90 days after the date on 
which the close-out of all grants under this section is completed, the 
Secretary shall submit to the applicable committees a report describing 
the grants made under this section, the grantees, the housing developed 
in connection with the grant amounts, and the purposes for which the 
grant amounts were used.
    (o) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Applicable committees.--The term ``applicable 
        committees'' means the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Banking and 
        Financial Services of the House of Representatives.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (3) United states.--The term ``United States'' includes the 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Commonwealth of the Northern 
        Mariana Islands, Guam, the Virgin Islands, American Samoa, and 
        any other territory or possession of the United States.
    (p) Funding.--Of any amounts made available for annual 
contributions for assisted housing before the date of enactment of this 
Act, $50,000,000 shall be used by the Secretary to carry out this 
section. Any such amounts shall remain available for such purposes 
until expended.
    (q) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the Secretary shall issue any final regulations 
necessary to carry out this section. The regulations shall take effect 
upon issuance and may not exceed, in length, 5 full pages in the 
Federal Register.