A bill to assist low-income families, displaced from their residences in the States of Alabama, Louisiana, and Mississippi as a result of Hurricane Katrina, by establishing within the Department of Housing and Urban Development a homesteading initiative that offers displaced low-income families the opportunity to purchase a home owned by the Federal Government, and for other purposes.

Summary: Hurricane Katrina Recovery Homesteading Act of 2005 - Authorizes the Secretary of Housing and Urban Development (HUD) to transfer, without payment, federally owned (including property transferred to the Secretary from other agencies) or otherwise donated suitable residential property to state or local governments for use in an approved homestead program carried out by such governments in Alabama, Louisiana, and Mississippi in areas designated disaster areas due to Hurricane Katrina. Authorizes reimbursement to agencies transferring property.

Sets forth approval criteria for a homestead program, including: (1) selection criteria that gives priority to displaced low-income families; (2) occupancy only pursuant to a written agreement which must be for a period of at least five years and which requires the occupant to make certain repairs.

Requires the Secretary to audit authorized activities and permits monetary and other penalties penalties for noncompliance.

Permits the waiver of certain environmental requirements.

Prohibits the transfer, acceptance, or conveyance of property under this Act five years after enactment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hurricane Katrina Recovery 
Homesteading Act of 2005''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to allow low-income families who were displaced from 
        their residences in a designated disaster area as a result of 
        Hurricane Katrina to return to their States, areas, or 
        communities by providing homeownership opportunities;
            (2) to assist in the rebuilding of neighborhoods in 
        Alabama, Louisiana, and Mississippi that were damaged by 
        Hurricane Katrina, through strategies that promote 
        homeownership opportunities;
            (3) to maximize the use of existing Federal resources to 
        assist State and local governments in providing homesteading 
        and other homeownership opportunities in a designated disaster 
        area; and
            (4) to promote the cooperation at all levels of government 
        and the private sector, including nonprofit organizations, in 
        providing homesteading opportunities and other homeownership 
        opportunities that will facilitate the rebuilding of 
        neighborhoods in a designated disaster area.

SEC. 3. DEFINITIONS.

    As used in this Act, the following definitions shall apply:
            (1) Designated disaster areas.--The term ``designated 
        disaster area'' means any area in the States of Alabama, 
        Louisiana, and Mississippi that is the subject of a disaster 
        declaration by the President under title IV of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5121 et seq.) in response to Hurricane Katrina.
            (2) Family.--The term ``family'' includes a family, as such 
        term is defined in section 3 of the United States Housing Act 
        of 1937 (42 U.S.C. 1437a), of 1 or more persons.
            (3) Low-income family.--The term ``low-income family'' 
        means a family whose income does not exceed 80 percent of the 
        median income for the area, as determined by the Secretary, 
        with adjustments for family size, except that the Secretary may 
        establish an income ceiling higher or lower than 80 percent of 
        the median for the area if the Secretary finds that such a 
        variation is necessary because of prevailing levels of 
        construction costs or unusually high or low family incomes.
            (4) Participating federal agency.--The term ``participating 
        Federal agency'' means a Federal agency the head of which is 
        referenced by title in section 4(b), and any other Federal 
        agency that transfers or conveys property for the purposes of 
        section 4.
            (5) Responsible administering entity.--The term 
        ``responsible administering entity'' means a unit of general 
        local government or a State in a designated disaster area, or a 
        public agency or other entity designated by a unit of general 
        local government or a State that is charged with administering 
        a homestead program approved under section 4(d).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development, except as otherwise 
        specified.

SEC. 4. HOMESTEADING.

    (a) Eligible Property.--The Secretary is authorized to transfer, 
without payment, to a responsible administering entity, any real 
property--
            (1) which is either vacant or includes either a 1, 2, 3, or 
        4-family residence or multifamily project;
            (2) to which the Secretary holds title, including property 
        conveyed to the Secretary by any other participating Federal 
        agency;
            (3) which is not occupied by a person legally entitled to 
        reside there;
            (4) which is requested by a responsible administering 
        entity for use in a homestead program;
            (5) which is not--
                    (A) excess or surplus Federal property subject to 
                property disposition under title V of the McKinney-
                Vento Homeless Assistance Act (42 U.S.C. 11411 et 
                seq.); or
                    (B) Federal property subject to disposition under a 
                base closure law, as defined in section 101(a)(17) of 
                title 10, United States Code; and
            (6) which the Secretary determines is suitable for use in a 
        homestead program that is approved under subsection (d).
    (b) Acquisitions and Reimbursements.--
            (1) In general.--Notwithstanding any other provision of 
        law, the Secretary of Agriculture, the Secretary of Health and 
        Human Services, the Secretary of Veterans Affairs, and the head 
        of any other participating Federal agency are authorized to 
        transfer property to the Secretary, and the Secretary is 
        authorized to accept custody and accountability of such 
        property, to carry out this Act.
            (2) Reimbursement.--
                    (A) In general.--The Secretary is authorized to 
                reimburse the Federal Housing Administration for 
                property--
                            (i) which the Secretary has acquired under 
                        the National Housing Act (12 U.S.C. 1701 et 
                        seq.) in the form of modification of subsidy 
                        costs, as authorized in the Federal Credit 
                        Reform Act of 1990 (2 U.S.C. 661 et seq.); and
                            (ii) which the Secretary transfers for use 
                        in connection with a local homestead program 
                        approved by the Secretary under this section.
                    (B) Homestead program.--The Secretary is authorized 
                to reimburse a participating Federal agency in an 
                amount to be agreed upon by the Secretary and such 
                participating Federal agency for property that such 
                participating Federal agency transferred for use in 
                connection with a homestead program approved by the 
                Secretary under this section.
                    (C) Deposits.--Amounts to be reimbursed under this 
                paragraph shall be--
                            (i) deposited pursuant to the Federal 
                        Credit Reform Act of 1990 (2 U.S.C. 661 et 
                        seq.), as applicable; or
                            (ii) made available to the agency to 
                        address real property capital asset needs.
            (3) Donated property.--The Secretary is authorized to 
        accept, manage, and convey residential property donated to the 
        Secretary by a nongovernmental entity for purposes of this Act.
            (4) Reversal of transfer or conveyance.--
                    (A) In general.--Notwithstanding any other 
                provision of law, any real property transferred to the 
                Secretary by a participating Federal agency for 
                purposes of this Act shall be transferred back to that 
                participating Federal agency in the event that such 
                property is not conveyed to a responsible administering 
                entity under subsection (a).
                    (B) Reversions.--In the event of a conveyance to a 
                responsible administering entity for purposes of this 
                Act, if such responsible administering entity does not 
                dispose of such property within 18 months of the date 
                of such conveyance, such property and its proceeds 
                shall revert--
                            (i) to the Secretary; or
                            (ii) in the case of property transferred by 
                        a participating Federal agency under paragraph 
                        (1), to such participating Federal agency.
    (c) Suitable Property for Homestead Program.--In determining the 
suitability of a residential property for use in a homestead program, 
the Secretary shall consider--
            (1) the physical condition of the residential property, 
        including whether, upon rebuilding, or if repairs or 
        improvements are required, upon completion of such repairs or 
        improvements, the property--
                    (A) would meet local or applicable standards or 
                codes for habitation or occupancy;
                    (B) is likely to meet all Federal requirements for 
                flood insurance; and
                    (C) will otherwise not endanger the health or 
                safety of individuals residing within or nearby the 
                residential property;
            (2) the estimated time for rebuilding or repairing the 
        property for residential use;
            (3) the environment surrounding the property and the 
        suitability of the surrounding structures and the neighborhood 
        to be rebuilt and sustained as a viable community;
            (4) the value of any repairs and improvements required by 
        the program;
            (5) the benefits to the community and the reduced 
        administrative costs to the Federal Government which would 
        accrue from the expedited occupancy of the unoccupied property; 
        and
            (6) the possible financial loss to the Federal Government 
        which may result from the transfer of the property without 
        payment.
    (d) Approval Criteria.--The Secretary may approve a homestead 
program carried out by a responsible administering entity, which 
provides for the following:
            (1) Equitable selection of participating families.--The 
        homestead program shall provide for an equitable procedure, as 
        prescribed by the Secretary, for selecting low-income families 
        that have been displaced from residences in a designated 
        disaster area, which procedure shall--
                    (A) give priority to low-income families who were 
                displaced from their residences in a particular 
                designated disaster area or who were displaced as 
                homeowners in a designated disaster area, or other 
                criteria as may be prescribed by the Secretary;
                    (B) take into account for each family described 
                under subparagraph (A), such family's--
                            (i) capacity to obtain assistance for the 
                        rebuilding, repair, or maintenance of the 
                        housing from private sources, community 
                        organizations, or other sources; or
                            (ii) agreement to rebuild or repair the 
                        housing by participating in a self-help sweat 
                        equity housing program, or the family's 
                        contribution to the surrounding community; and
                    (C) include such other criteria as the Secretary 
                determines appropriate.
            (2) Initial occupancy agreement.--The homestead program 
        shall provide for the initial occupancy of unoccupied 
        residential property pursuant to a written agreement whereby 
        the family to whom such property is conveyed agrees--
                    (A) to occupy such property as a principal 
                residence for a period of not less than 5 years, or 
                such other time period as the Secretary may prescribe;
                    (B) to repair, or cause to be repaired or improved, 
                if housing is located on such property, all defects in 
                such housing that pose a substantial danger to health 
                and safety within 1 year of the date of such initial 
                conveyance, or within such other time period as may be 
                prescribed by the Secretary;
                    (C) to make, or cause to be made, such repairs and 
                improvements, if housing is located on such property, 
                to such housing as may be necessary to meet applicable 
                local standards for decent, safe, and sanitary housing 
                within 3 years after the date of initial occupancy, or 
                within such other time period as may be prescribed by 
                the Secretary;
                    (D) to build or cause to be built, if housing is 
                not located on the property, single family housing that 
                meets applicable local codes within 3 years after the 
                date of initial occupancy, or within such other time 
                period as may be prescribed by the Secretary;
                    (E) to permit reasonable periodic inspections at 
                reasonable times, and with notice reasonable in the 
                circumstances, for the purpose of determining 
                compliance with the agreement;
                    (F) to the revocation of such agreement upon any 
                material breach of the agreement, subject to penalties 
                under section 5; and
                    (G) to accept the conveyance from the responsible 
                administering entity of fee simple title to such 
                property without consideration upon compliance with the 
                agreement.
            (3) Other criteria determined by the secretary.--The 
        homestead program shall meet such other criteria determined by 
        the Secretary to be appropriate for the program in light of the 
        location in which the program is to be administered, or 
        following consultation with State and local government 
        officials.
    (e) Technical Support.--The Secretary is authorized to provide 
technical assistance and other resources directly or indirectly for the 
administration of homestead programs that meet the requirements of 
subsection (d) and to families who are participants in such programs.

SEC. 5. COMPLIANCE.

    (a) Compliance Monitoring.--The Secretary shall make such reviews 
and audits as may be necessary or appropriate to determine whether 
activities authorized to be carried out under this Act are carried out 
in accordance with the requirements of this Act and other applicable 
law.
    (b) Compliance Actions.--In addition to any other actions 
authorized by applicable law, if the Secretary determines that any 
property transferred for use under a homestead program approved under 
section 4 has been conveyed or used under the program in a manner 
contrary to the provisions of section 4, the Secretary may take such 
actions as the Secretary considers appropriate, including--
            (1) imposing a civil money penalty on the responsible 
        administering entity, or the transferee of such entity, or 
        both, as appropriate, in an amount equal to not less than any 
        profit realized with respect to the conveyance or use of such 
        property contrary to the provisions of this Act;
            (2) enforcing, revising, or releasing the restrictions 
        contained in any instruments of conveyance; or
            (3) revoking the conveyance of the property to the 
        responsible administering entity or requiring the responsible 
        administering entity to revoke the conveyance of such property 
        to the family in accordance with procedures prescribed by the 
        Secretary.
    (c) Judicial Enforcement.--The Attorney General of the United 
States, at the request of the Secretary, may bring civil actions in any 
district court of the United States to enforce this Act, and such court 
shall have jurisdiction over such actions.

SEC. 6. NONDISCRIMINATION.

    No person in the United States shall, on the grounds of race, 
color, national origin, religion, disability, or sex, be excluded from 
participation in the homestead program established under this Act.

SEC. 7. ENVIRONMENTAL REVIEW.

    (a) In General.--Except as provided in subsection (b), the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.) shall apply to all 
activities under this Act.
    (b) Exceptions.--The Secretary may, in consultation with Federal, 
Tribal, State, and local governmental entities, as appropriate, waive 
the requirements of the National Environmental Policy Act (42 U.S.C. 
4321 et seq.), if the Secretary determines that such a waiver--
            (1) will not frustrate the goals of the National 
        Environmental Policy Act or any other provision of law that 
        furthers the goals of that Act; and
            (2) does not threaten the health or safety of the community 
        involved by posing an immediate or long-term hazard to 
        residents of that community.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act a 
total of $300,000,000 for fiscal years 2006 through 2010.

SEC. 9. IMPLEMENTATION.

    (a) In General.--To immediately implement this Act, the Secretary 
shall, by notice, establish such requirements as may be necessary to 
carry out this Act.
    (b) Procedure for Notice.--The notice required under subsection (a) 
shall--
            (1) take effect upon issuance; and
            (2) provide the opportunity for public comment.
    (c) Final Regulations.--The Secretary shall issue final regulations 
based on the notice required under subsection (a).

SEC. 10. SUNSET.

    The Secretary shall not accept, transfer, or convey property under 
this Act after 5 years from the date of enactment of this Act.