To require the Secretary of Housing and Urban Development to make single family properties held by the Department pursuant to foreclosure under the FHA mortgage insurance program available for occupancy by families displaced by Hurricane Katrina.

Summary: Hurricane Katrina Victims Emergency Shelter Act of 2005 - Directs the Secretary of Housing and Urban Development (HUD) to make single family properties held by HUD pursuant to foreclosure under the Federal Housing Administration (FHA) mortgage insurance program available to a person or family whose primary residence as of August 29, 2005, was in a disaster-designated area pursuant to Hurricane Katrina and was destroyed or otherwise made inhabitable.

Provides: (1) that for the first six months after enactment of this Act the Secretary may not dispose of such properties except to an eligible family; (2) that for the 18 months following such six month period the Secretary shall make such properties that are not under a disposition agreement available to eligible families; (3) for five-year rent free occupancy, with an option to purchase; and (4) program outreach activities.

 Directs the Secretary to establish selection criteria for a property for which more than one family has submitted a request, with preference for families having incomes not exceeding the median income for the area in which the family's primary residence was located.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hurricane Katrina Victims Emergency 
Shelter Act of 2005''.

SEC. 2. AVAILABILITY OF HUD INVENTORY PROPERTIES.

    (a) In General.--Notwithstanding any other provision of law, the 
Secretary of Housing and Urban Development shall make covered 
properties available for occupancy by eligible families, as provided in 
this section.
    (b) 6-Month Reservation for Use Only by Eligible Families.--
            (1) Requirement to offer only to eligible families.--During 
        the 6-month period beginning on the date of the enactment of 
        this Act, the Secretary may not dispose of any covered property 
        under any provision of law other than this Act and may not 
        offer, or enter into any agreement for disposition of, a 
        covered property under any other such provision.
            (2) Request and occupancy.--If, during the period referred 
        to in paragraph (1), an eligible family makes a request, in 
        such form as the Secretary may require, to occupy a covered 
        property, the Secretary shall, in accordance with the selection 
        criteria established pursuant to subsection (d), make the 
        covered property available to the eligible family for occupancy 
        in accordance with the terms under subsection (e).
    (c) Continued Availability.--
            (1) Availability for eligible families.--During the 18-
        month period that begins upon the conclusion of the period 
        under subsection (b)(1), the Secretary shall offer each covered 
        property for occupancy by affected families, but, except as 
        provided in paragraph (2) of this subsection, may dispose of 
        covered properties under other applicable provisions of law and 
        may offer and enter into agreements for disposition of covered 
        properties under such other provisions.
            (2) Request and occupancy.--If, during the period referred 
        to in paragraph (1), an eligible family makes a request, in 
        such form as the Secretary may require, to occupy a covered 
        property for which the Secretary has not entered into any 
        agreement for disposition under any other provision of law, the 
        Secretary shall, in accordance with the selection criteria 
        established pursuant to subsection (d), make the covered 
        property available to the eligible family for occupancy in 
        accordance with the terms under subsection (e).
    (d) Selection Criteria.--The Secretary shall establish criteria to 
select an eligible family to occupy a covered property for which more 
than one family has submitted such a request. Such criteria shall 
provide preference for eligible families having incomes not exceeding 
the median income for the area in which the primary residence of the 
family referred to in subsection (g)(2) was located.
    (e) Occupancy Terms.--Occupancy in a covered property pursuant to 
this section shall be subject to the following terms:
            (1) 5-years rent-free.--The eligible family may reside in 
        the property under the terms of a lease (or renewable leases) 
        which shall provide for rent-free occupancy, but which in no 
        case may extend beyond the expiration of the 5-year period 
        beginning upon initial occupancy of the property by the family.
            (2) Option to purchase.--At any time during the occupancy 
        of a covered property by an eligible family pursuant to 
        paragraph (1), the eligible family may purchase the property 
        from the Secretary at price equal to the lesser of--
                    (A) the fair market value of the property as of the 
                time of initial occupancy by such family, as determined 
                by the Secretary, or
                    (B) the fair market value of the property as of the 
                time of such purchase, as determined by the Secretary, 
                less the cost of any repairs or improvements made by 
                the family during occupancy of the property.
        The Secretary shall periodically inform each eligible family 
        occupying a covered property of the availability of the 
        property for purchase under this paragraph.
    (f) Outreach.--The Secretary shall take such actions as may be 
appropriate to inform eligible families of the availability of covered 
properties pursuant to this section.
    (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Covered property.--The term ``covered property'' means 
        any property that--
                    (A) is designed as a dwelling for occupancy by one 
                to four families;
                    (B) was previously subject to a mortgage insured 
                under the National Housing Act; and
                    (C) is owned by the Secretary pursuant to the 
                payment of insurance benefits under such Act.
            (2) Eligible family.--The term ``eligible family'' means a 
        person or household whose primary residence, as of August 29, 
        2005--
                    (A) was located in an area within which the 
                President declared, under the Robert T. Stafford 
                Disaster Assistance and Emergency Relief Act, a major 
                disaster to have occurred pursuant to Hurricane 
                Katrina; and
                    (B) was, as a result of Hurricane Katrina, 
                destroyed or damaged to such an extent that the 
                residence is not habitable.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.